CITY OF LINO LAKES, MINNESOTA
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />December 31, 2011
<br />CAPITAL ASSET AND DEBT ADMINISTRATION
<br />Capital assets — The City of Lino Lakes' investment in capital assets for its governmental and business-
<br />' type activities as of December 31, 2011, is $71,689,298 (net of accumulated depreciation). This
<br />investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery
<br />and equipment, other capital assets, and infrastructure. This represents a decrease in the City of Lino
<br />Lakes' investment in capital assets (net of accumulated depreciation) of approximately 1 %. Due to the
<br />economic downturn, no new infrastructure projects were undertaken by the City, and therefore, the only
<br />additions were from projects in progress. The decrease within the governmental activities is attributable to
<br />the depreciation of constructed streets, underground infrastructure and vehicles. Within the business -type
<br />activities decreases were also attributable to depreciation of existing assets of the water and sewer funds.
<br />Land
<br />Construction in Progress
<br />Buildings
<br />Office Equipment and Fumiture
<br />Vehicles
<br />Machinery and Shop Equipment
<br />Other Equipment
<br />Infrastructure
<br />Capital Assets, Net
<br />Capital Assets at Year -End
<br />(Net of Accumulated Depreciation)
<br />Govemmental Activities Business -Type Activities
<br />2011
<br />$ 3,275,859
<br />211,705
<br />3,542,239
<br />447,690
<br />1,192,147
<br />197,507
<br />232,546
<br />32,967,803
<br />$ 42,067,496
<br />2010
<br />$ 2,809,059
<br />3,728,690
<br />360,674
<br />1,223,361
<br />232,749
<br />271,875
<br />33,323,819
<br />$ 41,950,227
<br />2011 2010
<br />$ - $
<br />204,551 182,348
<br />29,417,251 30, 260 , 287
<br />$ 29,621,802 $ 30,442,635
<br />Total
<br />2011
<br />3,275,859
<br />211,705
<br />3,542,239
<br />447,690
<br />1,192,147
<br />402,058
<br />232,546
<br />62,385,054
<br />$ 71,689,298
<br />2010
<br />$ 2,809,059
<br />3,728,690
<br />360,674
<br />1,223,361
<br />415,097
<br />271,875
<br />63,584,106
<br />$ 72,392,862
<br />Additional information on the City's capital assets can be found in the notes to the financial statements on
<br />pages 34 -58.
<br />Long -term debt — At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
<br />outstanding of $17,811,000. Of this amount $9,421,000 comprises tax supported debt, $7,985,000 is
<br />special assessment debt and $405,000 is revenue supported debt. All outstanding debt carries the
<br />general obligation backing for which the City is liable in the event of default by the property owners
<br />subject to the specific taxes, special assessments or revenues pledged to the retirement of the debt. In
<br />•-. addition, the City carries a note to Anoka County for its share of the cost of the I -35E /County Road 14
<br />Interchange project in the amount of $3,695,000.
<br />G.O. Bonds
<br />G.O. Special Assessment Bonds
<br />G.O. Revenue Bonds
<br />Total Outstanding Debt
<br />Outstanding Debt at Year -End
<br />Governmental Activities Business -Type Activities
<br />2011 2010 2011 2010
<br />$ 9,421,000 $ 10,141,000 $ - $ -
<br />7,985,000 9,175,000 - -
<br />- 405,000 795,000
<br />$ 17,406,000 $ 19,316,000 $ 405,000 $ 795,000
<br />Total
<br />2011 2010
<br />$ 9,421,000 $ 10,141,000
<br />7,985,000 9,175,000
<br />405,000 795,000
<br />$ 17,811,000 $ 20,111,000
<br />_, The City of Lino Lakes' total bonded debt decreased by $2,300,000 (11.4 %) during the current fiscal year.
<br />The key factors for the change include the issuance of $120,000 in 2011A Equipment Certificates and
<br />retirement of principal in the amount of $2,420,000 during the year.
<br />Additional information on the City's long -term debt can be found in the notes to the financial statements
<br />on pages 34 -58.
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