Comprehensive Annual Financial Report 12/31/2004

Home Search

City of Lino Lakes, Minnesota Management's Discussion and Analysis December 31, 2004 At the end of the current fiscal year, the City of Lino Lakes is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business -type activities. Governmental activities. Governmental activities increased the City of Lino Lakes' net assets by $2,871,169, thereby accounting for 57 percent of the total growth in the net assets of the City of Lino Lakes. The most significant change in governmental net assets is due to the effect of accounting for net assets under the full accrual basis. Under full accrual accounting, current year outlay for infrastructure will be expensed over the useful life of the infrastructure. This capital outlay for the infrastructure is budgeted for during the current year. Business -type activities. Business -type activities increased the City of Lino Lakes' net assets by $2,142,054, thereby accounting for 43 percent of the total growth in the net assets of the City of Lino Lakes. Developers' contribution of infrastructure assets to the water and sewer funds accounted for the most significant portion of that increase. Condensed statements of revenues, expenses, and changes in net assets highlights are as follows for the year ended December 31, 2004: Governmental and Business -type Activities For the year ended December 31, 2004 (in millions) Governmental Business -type Total Activities Activities Government 2004 2003 2004 2003 2004 2003 Revenues Program revenues Charges for services $1.91 $1.84 $2.26 $2.28 $4.17 $4.12 Operating grants and contributions .68 .63 - .68 .63 Capital grants and contributions 7.52 4.54 1.59 2.72 9.11 7.26 General revenues Property taxes 6.52 6.74 6.52 6.74 Franchise fees .11 .11 - .11 .11 Unrestricted investment earnings .22 .19 .03 .02 .25 .21 Sale of Property 1.28 - - - 1.28 - Total revenues 18.24 14.05 3.88 5.02 22.12 19.07 Expenses General government 2.52 6.09 2.52 6.09 Public safety 2.80 2.65 2.80 2.65 Public services 7.25 1.16 - - 7.25 1.16 Parks, recreation and forestry 1.20 .93 1.20 .93 Conservation of natural resources .12 .11 .12 .11 Community development .42 .86 - .42 .86 Interest on long -term debt .76 .82 - .76 .82 Water .91 .97 .91 .97 Sewer 1.13 1.04 1.13 1.04 Total expenses 15.07 12.62 2.04 2.01 17.11 14.63 Change in net assets before transfers 3.17 1.43 1.84 3.01 5.01 4.44 Transfers (.30) (.30) .30 .30 - Change in net assets 2.87 1.13 2.14 3.31 5.01 4.44 Net assets - beginning 45.23 44.10 29.32 26.01 74.55 70.11 Net assets - ending $48.10 $45.23 $31.46 $29.32 $79.56 $74.55 13