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City of Lino Lakes, Minnesota <br />Management's Discussion and Analysis <br />December 31, 2010 <br />FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED) <br />Proprietaiy funds The City of Lino Lakes' proprietary funds provide the same type of information found <br />in the government-wide financial statements, but in more detail. <br />The water fund has total net assets at year-end of $17,722,683, of which $3.737.394 are unrestricted. <br />The increase in net assets of $107,716 was primarily due to operating inuome, contributions from the <br />private sources and the primary govemment, and nvestment earnings. <br />Total net assets in the sewer fund at the end of 2010 were $22.854.404. of which $8.991.232 was <br />unrestricted. Net assets increased $85,324 during the current year resulting primarily from operating <br />income and investment income. <br />The water ratea, which reflect water conservation efforts through a tiered rate otnunture, and sewer Rates <br />were unchanged in 2010. <br />GENERAL FUND BUDGETARY HIGHLIGHTS <br />The original budoetvvaeammndadoeveno|dmneoduhngMheyearrmfleuUngdonadonoandgnantonamaked <br />primarily for police personnel and equiprnent, a reduction in expected state a|d, and reallocating <br />resources within the original budget. <br />Revenues were $123.063 under budget for the year. This is due to a few major hacbzrs. Property taxes <br />were lower due to higher delinqencies in tax payments. Investment eonnings, due to historically low <br />interest rates were also significantly under budget. Lower building activity due to the recessed economy <br />and, thereyone, fewer new construction building permits being issued was also a factor. State <br />intergovernmental revenues for police PERA aid were below budgeted levels for the year due to position <br />vacancies. Local govemment grants were slightly under budget due to lower grant funds allocated by the <br />granting entity. Public safety charges for service were also well over budget due to higher than expected <br />traffic control contracts. Fines and forfeitures were under budgeted amounts due to reduced funding for <br />patrolling for vehicular violations and the success of the city's Achieving Compliance through Education <br />(ACE) program. Expenditures came in under the budgeted revenues by $362,103 due mainly to lower <br />than expected personal services costs from vacant positions and reduced benefit costs. Energy costs for <br />fuels and electricity were lower than budgeted emountu, and supplies costs were generally lower than <br />anticipated. There were also net transfers from the general fund of $612.699. This resulted in a net fund <br />balance increase of $238,841 for the fiscal year. <br />18 <br />