CITY OF LINO LAKES, MINNESOTA
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />December 31, 2011
<br />OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
<br />Fiduciary funds Fiduciary funds are used to account for assets held by the City as an agent for
<br />individuals, private organizations, or other governments.
<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
<br />the financial statements can be found on pages 34 -58 of this report.
<br />Other information — The combining statements and schedules referred to earlier in conjunction with
<br />nonmajor governmental funds can be found on pages 67 -80 of this report.
<br />GOVERNMENT -WIDE FINANCIAL ANALYSIS
<br />As noted earlier, net assets may serve over time as a useful indicator of a government's financial
<br />position. The City of Lino Lakes' assets exceeded liabilities by $90,080,344 at the close of the most
<br />recent fiscal year, an increase of $1,507,330 from the previous year. This increase is primarily due to
<br />reductions in community development activities, staffing levels, and interest payments on long -term debt.
<br />'- In addition, a prior period adjustment for unrecorded park land increased net assets by $466,800.
<br />By far the largest portion of the City of Lino Lakes' net assets (60 %) reflects its investment in capital
<br />-- assets (e.g. land, buildings, machinery, equipment, and infrastructure), less any related debt used to
<br />acquire those assets that is still outstanding. The City of Lino Lakes uses these capital assets to provide
<br />services to citizens; consequently, these assets are not available for future spending. Although the City of
<br />Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the
<br />resources needed to repay this debt must be provided from other sources, since the capital assets
<br />themselves cannot be used to liquidate these liabilities.
<br />-- Condensed versions of the statements of net assets at December 31, 2011 and 2010 are as follows:
<br />■.-
<br />Current and Other Assets
<br />Capital Assets
<br />Total Assets
<br />Noncurrent Liabilities Outstanding
<br />Other Liabilities
<br />Total Liabilities
<br />Net Assets:
<br />-- Invested in Capital Assets, Net
<br />of Related Debt
<br />Restricted
<br />Unrestricted
<br />Total Net Assets
<br />Governmental Activities
<br />2011 2010
<br />$ 30,125,796 $ 31,085,069
<br />42,067,496 41,950,227
<br />Business -Type Activities
<br />2011 2010
<br />$ 11,292,527 $ 10,830,886
<br />29,621,802 30,442,635
<br />Total
<br />2011
<br />$ 41,418,323
<br />71,689,298
<br />2010
<br />$ 41,915,955
<br />72,392,862
<br />72,193,292 73,035,296 40,914,329 41,273,521 113,107,621 114,308,817
<br />21,845,856 24,336,418 450,334 835,278
<br />685,320 969,751 45,767 61,156
<br />22,531,176 25,306,169 496,101 896,434
<br />24,600,103
<br />11,598,803
<br />13,463,210
<br />22,562,217
<br />8,428,025
<br />16,738,885
<br />29,216,866 29,648,461
<br />11,201, 362 10,728,626
<br />22,296,190 25,171,696
<br />731,087 1,030,907
<br />23,027,277 26,202,603
<br />53,816,969
<br />11,598,803
<br />24,664,572
<br />52,210,678
<br />8,428,025
<br />27,467,511
<br />$ 49,662,116 $ 47,729,127 $ 40,418,228 $ 40,377,087 $ 90,080,344 $ 88,106,214
<br />Of the remaining balance of the City of Lino Lakes' net assets, restricted net assets (13 %) are to be used
<br />for debt service requirements and a nonexpendable environmental fund. Unrestricted net assets (27 %)
<br />may be used to meet the government's ongoing obligations to citizens and creditors.
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