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City of Lino Lakes, Minnesota
<br />Management's Discussion and Analysis
<br />December 31, 2003
<br />Notes to the financial statements. The notes provide additional information that is essential to a full
<br />understanding of the data provided in the government -wide and fund financial statements. The notes to the
<br />▪ financial statements can be found on pages 32 -52 of this report.
<br />Other information. The combining statements and schedules referred to earlier in conjunction with nonmajor
<br />governmental funds can be found on pages 59 through 72 of this report.
<br />Comparative Data. Certain comparative information between the current (2003) and prior year (2002) is required
<br />to be presented in the MD &A. However, since this is the first year of implementation of the new reporting model
<br />contained on GASB Statement No. 34, we have elected not to prepare comparative data for the financial
<br />statements of 2002. In subsequent years, this section will discuss and analyze significant differences.
<br />GOVERNMENT -WIDE FINANCIAL ANALYSIS:
<br />As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the
<br />case of the City of Lino Lakes, assets exceeded liabilities by $74,547,005 at the close of the most recent fiscal
<br />year.
<br />By far the largest portion of the City of Lino Lakes' net assets (70 percent) reflects its investment in capital assets
<br />(e.g. land, buildings, machinery, equipment, and infrastructure), less any related debt used to acquire those assets
<br />that is still outstanding. The City of Lino Lakes uses these capital assets to provide services to citizens;
<br />▪ consequently, these assets are not available for future spending. Although the City of Lino Lakes' investment in
<br />its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must
<br />be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
<br />CITY OF LINO LAKES NET ASSETS
<br />_, Governmental Business -Type
<br />Activities Activities Total
<br />Current and other assets $ 20,512,961 $ 3,909,763 $ 24,422,724
<br />Capital assets 45,288,097 28,540,073 73,828,170
<br />Total assets 65,801,058 32,449,836 98,250,894
<br />Non - current liabilities outstanding 19,294,192 3,002,690 22,296,882
<br />Other liabilities 1,276,180 130,827 1,407,007
<br />—
<br />Total liabilities 20,570,372 3,133,517 23,703,889
<br />Net assets:
<br />Invested in capital assets,
<br />net of related debt 25,993,905 25,537,383
<br />Restricted 3,568,555 -
<br />Unrestricted 15,668,226 3,778,936
<br />Total net assets $ 45,230,686 $ 29,316,319
<br />51,531,288
<br />3,568,555
<br />19,447,162
<br />74,547,005
<br />The remaining balance of the City of Lino Lakes' net assets are unrestricted net assets (30 percent) and may be
<br />▪ used to meet the government's ongoing obligations to citizens and creditors.
<br />At the end of the current fiscal year, the City of Lino Lakes is able to report positive balances in all three
<br />Wimp categories of net assets, both for the government as a whole, as well as for its separate governmental and business -
<br />type activities.
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