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CITY OF LINO LAKES, MINNESOTA
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />December 31, 2011
<br />CAPITAL ASSET AND DEBT ADMINISTRATION
<br />Capital assets — The City of Lino Lakes' investment in capital assets for its governmental and business -
<br />type activities as of December 31, 2011, is $71,689,298 (net of accumulated depreciation). This
<br />investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery
<br />and equipment, other capital assets, and infrastructure. This represents a decrease in the City of Lino
<br />Lakes' investment in capital assets (net of accumulated depreciation) of approximately 1%. Due to the
<br />economic downturn, no new infrastructure projects were undertaken by the City, and therefore, the only
<br />additions were from projects in progress. The decrease within the governmental activities is attributable to
<br />the depreciation of constructed streets, underground infrastructure and vehicles. Within the business -type
<br />activities decreases were also attributable to depreciation of existing assets of the water and sewer funds.
<br />Land
<br />Construction in Progress
<br />Buildings
<br />Office Equipment and Furniture
<br />Vehicles
<br />Machinery and Shop Equipment
<br />Other Equipment
<br />Infrastructure
<br />Capital Assets, Net
<br />Capital Assets at Year -End
<br />(Net of Accumulated Depreciation)
<br />Governmental Activities Business -Type Activities
<br />2011 2010 2011 2010
<br />$ 3,275,859 $ 2,809,059 $
<br />211,705 -
<br />3,542,239 3,728,690 -
<br />447,690 360,674
<br />1,192,147 1,223,361 -
<br />197,507 232,749 204,551
<br />232,546 271,875 -
<br />32,967,803 33,323,819 29,417,251
<br />$ 42,067,496 $ 41,950,227 $ 29,621,802
<br />Total
<br />2011 2010
<br />$ - $ 3,275,859 $ 2,809,059
<br />211,705
<br />3,542,239 3,728,690
<br />447,690 360,674
<br />1,192,147 1,223, 361
<br />182,348 402,058 415,097
<br />232,546 271,875
<br />30,260,287 62,385,054 63,584,106
<br />$ 30,442,635 $ 71,689,298 $ 72,392,862
<br />Additional information on the City's capital assets can be found in the notes to the financial statements on
<br />pages 34 -58.
<br />Long -term debt — At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
<br />outstanding of $17,811,000. Of this amount $9,421,000 comprises tax supported debt, $7,985,000 is
<br />special assessment debt and $405,000 is revenue supported debt. All outstanding debt carries the
<br />general obligation backing for which the City is liable in the event of default by the property owners
<br />subject to the specific taxes, special assessments or revenues pledged to the retirement of the debt. In
<br />addition, the City carries a note to Anoka County for its share of the cost of the I -35E /County Road 14
<br />Interchange project in the amount of $3,695,000.
<br />Outstanding Debt at Year -End
<br />Governmental Activities Business -Type Activities
<br />2011
<br />G.O. Bonds $ 9,421,000 $ 10,141,000 $
<br />G.O. Special Assessment Bonds 7,985,000 9,175,000
<br />G.O. Revenue Bonds - 405,000
<br />Total Outstanding Debt $ 17,406,000 $ 19,316,000 $ 405,000
<br />2010 2011
<br />Total
<br />2010 2011 2010
<br />$ - $ 9,421,000 $ 10,141,000
<br />- 7,985,000 9,175,000
<br />795,000 405,000 795,000
<br />$ 795,000 $ 17,811,000 $ 20,111,000
<br />The City of Lino Lakes' total bonded debt decreased by $2,300,000 (11.4 %) during the current fiscal year.
<br />The key factors for the change include the issuance of $120,000 in 2011A Equipment Certificates and
<br />retirement of principal in the amount of $2,420,000 during the year.
<br />Additional information on the City's long -term debt can be found in the notes to the financial statements
<br />on pages 34 -58.
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