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1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />City of Lino Lakes, Minnesota <br />Management's Discussion and Analysis <br />December 31, 2010 <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, 2010, is $72,392,862 (net of accumulated depreciation). This <br />investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery <br />and equipment, other capital assets, and infrastructure. This represents a decrease in the City of Lino <br />Lakes' investment in capital assets (net of accumulated depreciation) of 4.35 %. Due to the economic <br />downturn, no new infrastructure projects were undertaken by the City, and therefore, the only additions <br />were from projects in progress. The decrease within the governmental activities and is attributable to the <br />depreciation of constructed streets, underground infrastructure and vehicles. Within the business -type <br />activities decreases were also attributable to depreciation of existing of the water and sewer funds. <br />Land <br />Construction in Progress <br />Buildings <br />Office Equipment and Furniture <br />Vehicles <br />Machinery and Shop Equipment <br />Other Equipment <br />Infrastructure <br />Capital Assets, Net <br />Capital Assets at Year -End <br />(Net of Accumulated Depreciation) <br />Governmental Activities Business -Type Activities <br />2010 2009 2010 2009 <br />$ 2,809,059 $ 2,809,059 $ $ <br />13,054 <br />3,728,690 3,945,724 <br />360,674 408,514 <br />1,223,361 1,364,599 <br />232,749 184,434 213,894 <br />271,875 311,081 <br />33,323,819 35,417,653 <br />$ 41,950,227 $ 44,441,064 $ <br />182,348 <br />30,260,287 <br />30,442,635 <br />31,013,304 <br />$ 31,240,252 <br />Total <br />2010 <br />$ 2,809,059 <br />3,728,690 <br />360,674 <br />1,223,361 <br />415,097 <br />271,875 <br />63,584,106 <br />$ 72,392,862 <br />2009 <br />$ 2,809,059 <br />13,054 <br />3,945,724 <br />408,514 <br />1,364,599 <br />398,328 <br />311,081 <br />66,430,957 <br />$ 75,681,316 <br />Additional information on the City's capital assets can be found in the notes to the financial statements on <br />pages 34 -56. <br />Long -term debt At the end of the current fiscal year, the City of Lino Lakes had total bonded debt <br />outstanding of $20,111,000. Of this amount $10,141,000 comprises tax supported debt, $9,175,000 is <br />special assessment debt and $795,000 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 subject <br />to the specific taxes, special assessments or revenues pledged to the retirement of the debt. In addition, <br />the City carries a note to Anoka County for its share of the cost of the I -35E /County Road 14 Interchange <br />project in the amount of $4,260,000. <br />Outstanding Debt at Year -End <br />Governmental Activities <br />2010 <br />Business -Type Activities Total <br />2009 2010 <br />G.O. Bonds $ 10,141,000 $ 10,712,000 <br />G.O. Special Assessment Bonds 9,175,000 10,265,000 - <br />G.O. Revenue Bonds - 795,000 <br />Total Outstanding Debt $ 19,316,000 $ 20,977,000 $ 795,000 <br />2009 <br />1,170, 000 <br />$ 1,170,000 <br />2010 2009 <br />$ 10,141,000 $ 10,712,000 <br />9,175,000 10,265,000 <br />795,000 1,170,000 <br />$ 20,111,000 $ 22,147,000 <br />The City of Lino Lakes' total bonded debt decreased by $2,036,000 (7.7 %) during the current fiscal year. <br />The key factors for the change include the issuance of $170,000 in 2010A Equipment Certificates and <br />$1,000,000 in 2010A G.O. Improvement and Utility Revenue Refunding Bonds, and retirement of <br />principal in the amount of $3,206,000 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 -56. <br />19 <br />