|
INNS
<br />City of Lino Lakes, Minnesota
<br />Management's Discussion and Analysis
<br />December 31, 2010
<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 -56 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 $88,106,214 at the close of the most
<br />recent fiscal year, an decrease of $819,082 from the previous year. This decrease is primarily due to the
<br />depreciation of capital assets under the full accrual basis of accounting.
<br />By far the largest portion of the City of Lino Lakes' net assets (59 %) reflects its investment in capital
<br />assets (e.g. land, buildings, machinery, equipment, and infrastructure), less any related debt used to
<br />— acquire those assets that is still outstanding. The City of Lino Lakes uses these capital assets to provide
<br />services to citizens; consequently, these assets are not available for future spending. Although the City of
<br />Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the
<br />— resources needed to repay this debt must be provided from other sources, since the capital assets
<br />themselves cannot be used to liquidate these liabilities.
<br />Condensed versions of the statements of net assets at December 31, 2010 and 2009 are as follows:
<br />Current and Other Assets
<br />— Capital Assets
<br />Total Assets
<br />Noncurrent Liabilities Outstanding
<br />— Other Liabilities
<br />Total Liabilities
<br />Net Assets:
<br />— Invested in Capital Assets, Net
<br />of Related Debt
<br />Restricted
<br />Unrestricted
<br />— Total Net Assets
<br />Governmental Activities Business -Type Activities
<br />2010 2009 2010
<br />$ 31,085,069 $ 31,111,757 $ 10,830,886
<br />41,950,227 44,441,064 30,442,635
<br />73,035,296 75,552,821 41,273,521
<br />24,336,418 25,984,244
<br />969,751 827,328
<br />25,306,169 26,811,572
<br />Total
<br />2009 2010 2009
<br />$ 10,258,440 $ 41,915,955 $ 41,370,197
<br />31,240,252 72,392,862 75,681,316
<br />41,498,692 114,308,817 117,051,513
<br />835,278 1,204,232
<br />61,156 110,413
<br />896,434 1,314,645
<br />22,562,217 23,400,453 29,648,461
<br />8,428,025 9,414,474
<br />16, 738, 885 15, 926, 322 10,728,626
<br />30,071,840
<br />10,112,207
<br />25,171,696 27,188,476
<br />1,030,907 937,741
<br />26,202,603 28,126,217
<br />52,210,678 53,472,293
<br />8,428,025 9,414,474
<br />27, 467, 511 26, 038, 529
<br />$ 47,729,127 $ 48,741,249 $ 40,377,087 $ 40,184,047 $ 88,106,214 $ 88,925,296
<br />— Of the remaining balance of the City of Lino Lakes' net assets, restricted net assets (10 %) are to be used
<br />for debt service requirements and a nonexpendable environmental fund. Unrestricted net assets (31 %)
<br />may be used to meet the government's ongoing obligations to citizens and creditors.
<br />
|