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City of Lino Lakes, Minnesota
<br />Management's Discussion and Analysis
<br />December 31, 2008
<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 68 -81 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 position.
<br />The City of Lino Lakes' assets exceeded liabilities by $88,535,348 at the close of the most recent fiscal
<br />year, an decrease of $2,818,558 from the previous year, primarily due to the construction of the
<br />I35W /Lake Drive interchange.
<br />By far the largest portion of the City of Lino Lakes' net assets (66 %) reflects its investment in capital
<br />assets (e.g. land, buildings, machinery, equipment, and infrastructure), less any related debt used to
<br />acquire those assets that is still outstanding. The City of Lino Lakes uses these capital assets to provide
<br />services to citizens; consequently, these assets are not available for future spending. Although the City of
<br />Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the
<br />resources needed to repay this debt must be provided from other sources, since the capital assets
<br />themselves cannot be used to liquidate these liabilities.
<br />Condensed versions of the statements of net assets at December 31, 2008 and 2007 are as follows:
<br />Current and Other Assets
<br />'... Capital Assets
<br />Total Assets
<br />Noncurrent Liabilities Outstanding
<br />..— Other Liabilities
<br />Total Liabilities
<br />Net Assets:
<br />.., Invested in Capital Assets, Net
<br />of Related Debt
<br />Restricted
<br />Unrestricted
<br />Total Net Assets
<br />Governmental Activities
<br />2008 2007
<br />$ 26,752,468 $ 30,270,371
<br />46,886,728 49,686,700
<br />73,639,196 79,957,071
<br />23, 306, 988
<br />1,198, 308
<br />24, 821, 020
<br />1,682,903
<br />24,505,296 26,503,923
<br />28,472,865
<br />9,870,676
<br />10, 790, 359
<br />36, 789,153
<br />10, 324,467
<br />6,339,528
<br />Business -Type Activities Total
<br />2008 2007 2008 2007
<br />$ 9,139,304 $ 8,193,865 $ 35,891,772 $ 38,464,236
<br />31,900,320 31,671,820 78,787,048 81,358,520
<br />41,039,624 39,865,685 114,678,820 119,822,756
<br />1,564,874 1,884,869 24,871,862 26,705,889
<br />73,302 80,058 1,271,610 1,762,961
<br />1,638,176 1,964,927 26,143,472 28,468,850
<br />30,372,670 29,836,775
<br />9,028,778 8,063,983
<br />58,845, 535
<br />9,870,676
<br />19,819,137
<br />66, 625, 928
<br />10,324,467
<br />14,403,511
<br />$ 49,133,900 $ 53,453,148 $ 39,401,448 $ 37,900,758 $ 88,535,348 $ 91,353,906
<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 (22 %)
<br />may be used to meet the government's ongoing obligations to citizens and creditors.
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