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City of Lino Lakes, Minnesota
<br />Management's Discussion and Analysis
<br />December 31, 2009
<br />OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
<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 -57 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 $88,925,296 at the close of the most
<br />recent fiscal year, an increase of $389,948 from the previous year. This increase is due to $782,599
<br />increase in business type activities.
<br />By far the largest portion of the City of Lino Lakes' net assets (60 %) reflects its investment in capital
<br />assets (e.g. land, buildings, machinery, equipment, and infrastructure), less any related debt used to
<br />acquire those assets that is still outstanding. The City of Lino Lakes uses these capital assets to provide
<br />services to citizens; consequently, these assets are not available for future spending. Although the City of
<br />Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the
<br />resources needed to repay this debt must be provided from other sources, since the capital assets
<br />themselves cannot be used to liquidate these liabilities.
<br />Condensed versions of the statements of net assets at December 31, 2009 and 2008 are as follows:
<br />Current and Other Assets
<br />Capital Assets
<br />Total Assets
<br />Noncurrent Liabilities Outstanding
<br />Other Liabilities
<br />Total Liabilities
<br />Governmental Activities Business -Type A ctivities Total
<br />2009 2008 2009 2008 2009 2008
<br />$ 31,111,757 $ 26,752,468 $ 10,258,440 $ 9,139,304 $ 41,370,197 $ 35,891,772
<br />44,441,064 46,886,728 31,240,252 31,900,320 75,681,316 78,787,048
<br />75,552,821 73,639,196 41,498,692 41,039,624 117,051,513 114,678,820
<br />25,984,244 23,306,988 1,204,232 1,564,874 27,188,476 24,871,862
<br />827,328 1,198,308 110,413 73,302 937,741 1,271,610
<br />26,811,572 24,505,296 1,314,645 1,638,176 28,126,217 26,143,472
<br />Net Assets:
<br />Invested in Capital Assets, Net
<br />of Related Debt 23,400,453 28,472,865 30,071,840 30,372,670 53,472,293 58,845,535
<br />_ Restricted 9,414,474 9,870,676 - 9,414,474 9,870,676
<br />Unrestricted 15,926,322 10,790,359 10,112,207 9,028,778 26,038,529 19,819,137
<br />Total Net Assets $ 48,741,249 $ 49,133,900 $ 40,184,047 $ 39,401,448 $ 88,925,296 $ 88,535,348
<br />Of the remaining balance of the City of Lino Lakes' net assets, restricted net assets (11 %) are to be used
<br />for debt service requirements and a nonexpendable environmental fund. Unrestricted net assets (29 %)
<br />may be used to meet the government's ongoing obligations to citizens and creditors.
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