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City of Lino Lakes, Minnesota
<br />Management's Discussion and Analysis
<br />December 31, 2003
<br />The water fund has total net assets of $11,487,807, of which $1,259,382 are unrestricted. The increase in net
<br />assets of $1,359,127 was due to contributions from private sources and an operating transfer from a capital
<br />projects fund.
<br />Total net assets in the sewer fund at the end of 2003 were $17,828,512, of which $2,486,864 were unrestricted.
<br />Net assets increased $1,948,462 during the current year primarily due to contributions from private sources.
<br />The water rates were not increased for 2003, while the sewer rates increased to help offset increased treatment
<br />costs.
<br />GENERAL FUND BUDGETARY HIGHLIGHTS:
<br />No amendments to the original budget were made during the year; the original budget and the final amended
<br />budget were the same.
<br />Revenues were $135,512 under budget due mainly to reductions in local government aid received from the state.
<br />Expenditures came in under the budgeted amounts by $694,020 due to a planned reduction in spending primarily
<br />for capital outlay in response to cuts in state aids. This resulted in a net fund balance increase of $556,872 for the
<br />fiscal year.
<br />CAPITAL ASSET AND DEBT ADMINISTRATION:
<br />Capital assets. The City of Lino Lakes' investment in capital assets for its governmental and business-type
<br />activities as of December 31, 2003, amounts to $73,828,170 (net of accumulated depreciation). This investment
<br />in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery and equipment,
<br />other capital assets, and infrastructure. The total increase in the City of Lino Lakes' investment in capital assets
<br />(net of accumulated depreciation) was 3% percent. Most of this increase within the governmental activities can
<br />be found in the addition of constructed streets and underground infrastructure. Within the business-type activities
<br />the most significant increases occurred in infrastructure installation in relation to the water and sewer funds.
<br />CITY OF LINO LAKES' CAPITAL ASSETS
<br />(net of depreciation)
<br />Governmental Business-Type
<br />Activities Activities
<br />Land 3,113,490
<br />Buildings 5,201,841
<br />Office equipment and furniture 488,673
<br />Vehicles 731,194
<br />Machinery and equipment 243,190
<br />Other 539,370
<br />Infrastructure 34,970,339
<br />Total 45,288,097
<br />87,168
<br />28,452,905
<br />28,540,073
<br />Total
<br />3,113,490
<br />5,201,841
<br />488,673
<br />731,194
<br />330,358
<br />539,370
<br />63,423,244
<br />73,828,170
<br />Long-term debt. At the end of the current fiscal year, the City of Lino Lakes had total bonded debt outstanding
<br />of $21,840,000. Of this amount $6,030,000 comprises tax supported debt, $12,840,000 is special assessment debt
<br />and $2,970,000 is revenue supported debt. All outstanding debt carries the general obligation backing for which
<br />the city is liable in the event of default by the property owners subject to the specific taxes, special assessments or
<br />revenues pledged to the retirement of the debt.
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