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Honorable Mayor and Members of the City Council
<br />City of Lino Lakes
<br />Page 8
<br />COMBINED FINANCIAL STATEMENT ANALYSIS
<br />The combined financial statements of the City of Lino Lakes are presented in Statements 14 through 17
<br />of the 1999 Annual Financial Report. The following comments relate to the Combined Balance Sheet -
<br />All Funds (Statement 1).
<br />Cash and Investments
<br />Cash and investments were as follows at December 31, 1999 and 1998:
<br />Description:
<br />Checking Balance
<br />Repurchase Agreements
<br />Subtotal
<br />Petty Cash
<br />Investments:
<br />Certificates of Deposit
<br />Commercial Paper
<br />Mutual Funds & Investment Pools
<br />U.S. Government Investments
<br />Municipal Bonds
<br />Certificates of Indebtedness
<br />December 31,
<br />1999
<br />$ (93,113)
<br />300,179
<br />207,066
<br />772
<br />1998
<br />$ (594,694)
<br />735,000
<br />140,306
<br />760
<br />937,393
<br />400,000
<br />3,134,711
<br />14,632,870
<br />327,900
<br />512,734
<br />756,000
<br />2,894,660
<br />9,852,899
<br />574,570
<br />Increase
<br />(Decrease)
<br />$ 501,581
<br />(434,821)
<br />66,760
<br />12
<br />(181,393)
<br />(400,000)
<br />(240, 051)
<br />(4,779,971)
<br />(327,900)
<br />61,836
<br />(5,800,707)
<br />Total $ 20,086,674 $ 14,285,967 $
<br />Investment earnings totaled $245,589 in 1999 and $1,155,931 in 1998. The decrease was due primarily
<br />to a decrease in average cash and investment balance in addition to a large market value decline in
<br />securities held at year -end.
<br />During 1998, the City implemented GASB 31, which requires that investments be valued at their fair
<br />value. Fair value is the amount that the city would receive if they chose to sell the investment as of the
<br />end of the year. This valuation at fair value may cause significant variances in investment earnings
<br />from year to year as market conditions change. The investment eamings for 1999 included a negative
<br />adjustment to fair value of approximately $589,000 related to the application of GASB 31.
<br />A schedule of cash and investment balances by fund type, including Investments Held in Escrow (as
<br />adjusted for interfund payables /receivables) is as follows:
<br />Fund Type
<br />General
<br />Special Revenue
<br />Debt Service
<br />Captial Project
<br />Enterprise
<br />Agency
<br />December 31,
<br />1998
<br />$ 3,309,600
<br />41,124
<br />1,938,690
<br />13,789,874
<br />708,666
<br />298,720
<br />Total $ 20,086,674
<br />1999
<br />$ 3,150,236
<br />41,031
<br />3,800,518
<br />5,370,637
<br />1,456,981
<br />466,564
<br />$ 14,285,967
<br />Increase
<br />(Decrease)
<br />$ (159,364)
<br />(93)
<br />1,861,828
<br />(8,419,237)
<br />748,315
<br />167,844
<br />$ (5,800,707)
<br />
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