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City of Lino Lakes, Minnesota
<br />Management's Discussion and Analysis
<br />December 31, 2009
<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, 2009, is $75,681,316 (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 3.9 %. Due to the economic
<br />recession, 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 />Capital Assets at Year -End
<br />(Net of Accumulated Depreciation)
<br />Govemmental Activities Business -Type Activities Total
<br />2009 2008 2009 2008 2009 2008
<br />Land $ 2,809,059 $ 2,809,059 $ - $ - $ 2,809,059 $ 2,809,059
<br />Construction in Progress - 2,762,525 13,054 13,054 13,054 2,775,579
<br />Buildings 3,945,724 4,162,757 - - 3,945,724 4,162,757
<br />Office Equipment and Fumiture 408,514 443,209 - - 408,514 443,209
<br />Vehicles 1,364,599 1,311,603 - - 1,364,599 1,311,603
<br />Machinery and Shop Equipment 184,434 215,050 213,894 218,523 398,328 433,573
<br />Other Equipment 311,081 351,186 - 311,081 351,186
<br />Infrastructure 35,417,653 34,831,339 31,013,304 31,668,743 66,430,957 66,500,082
<br />Capital Assets, Net $ 44,441,064 $ 46,886,728 $ 31,240,252 $ 31,900,320 $ 75,681,316 $ 78,787,048
<br />Additional information on the City's capital assets can be found in the notes to the financial statements on
<br />pages 34 -57.
<br />Long -term debt At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
<br />outstanding of $22,147,000. Of this amount $10,712,000 comprises tax supported debt, $10,265,000 is
<br />special assessment debt and $1,170,000 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 has issued 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 $4,260,000.
<br />Outstanding Debt at Year -End
<br />Governmental Activities Business -Type Activities Total
<br />2009 2008 2009 2008 2009 2008
<br />G.O. Bonds $ 10,712,000 $ 11,184,000 $ - $ - $ 10,712,000 $ 11,184,000
<br />G.O. Special Assessment Bonds 10,265,000 11,365,000 - 10,265,000 11,365,000
<br />G.O. Revenue Bonds - 1,170,000 1,530,000 1,170,000 1,530,000
<br />Total Outstanding Debt $ 20,977,000 $ 22,549,000 $ 1,170,000 $ 1,530,000 $ 22,147,000 $ 24,079,000
<br />The City of Lino Lakes' total bonded debt decreased by $1,932,000 (8.0 %) during the current fiscal year.
<br />The key factors for the change include the issuance of $336,000 in 2009A Equipment Certificates and
<br />retirement of principal in the amount of $2,268,000 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 -57.
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