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City of Lino Lakes, Minnesota
<br />Management's Discussion and Analysis
<br />December 31, 2007
<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 33 -53 of this report.
<br />Other information The combining statements and schedules referred to earlier in conjunction with
<br />nonmajor govemmental funds can be found on pages 62 -75 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 $91,353,906 at the close of the most recent fiscal
<br />year, an increase of $217,269 from the previous year.
<br />By far the largest portion of the City of Lino Lakes' net assets (73 percent) reflects its investment in capital
<br />assets (e.g. land, buildings, machinery, equipment, and infrastructure), Tess any related debt used to
<br />acquire those assets that is still outstanding. The City of Lino Lakes uses these capital assets to provide
<br />services to citizens; consequently, these assets are not available for future spending. Although the City of
<br />Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the
<br />resources needed to repay this debt must be provided from other sources, since the capital assets
<br />themselves cannot be used to liquidate these liabilities.
<br />Condensed versions of the statements of net assets at December 31, 2007 and 2006 are as follows:
<br />Current and Other Assets
<br />Capital Assets
<br />Total Assets
<br />Noncurrent Liabilities Outstanding
<br />Other Liabilities
<br />Total Liabilities
<br />Net Assets
<br />Invested in Capital Assets, Net
<br />of Related Debt
<br />Restricted
<br />Unrestricted
<br />Total Net Assets
<br />Govemmental Activities
<br />2007 2006
<br />$ 30,270,371 $ 27,167,139
<br />49,686,700 51,159,427
<br />79,957,071 78, 326, 566
<br />24, 821,020
<br />1,682, 903
<br />26,503,923
<br />22,410,771
<br />1,145,647
<br />23,556,418
<br />Business -Type Activities
<br />2007 2006
<br />$ 8,193,865 $ 8,772,775
<br />31,671,820 31,591,370
<br />39,865,685 40,364,145
<br />1,884,869
<br />80,058
<br />1,964,927
<br />Total
<br />3,897,167
<br />100,489
<br />3,997,656
<br />2007
<br />$ 38,464,236
<br />81,358,520
<br />119, 822, 756
<br />26,705,889
<br />1,762,961
<br />2006
<br />$ 35,939,914
<br />82,750,797
<br />118,690,711
<br />28,468,850
<br />26,307,938
<br />1,246,136
<br />27,554,074
<br />36,789,153 29,549,174 29,836,775 29,485,942 66,625,928 59,035,116
<br />10,324,467 10,704,508 - 10,324,467 10,704,508
<br />6,339,528 14,516,466 8,063,983 6,880,547 14,403,511 21,397,013
<br />$ 53,453,148 $ 54,770,148 $ 37,900,758 $ 36,366,489 $ 91,353,906 $ 91,136,637
<br />Of the remaining balance of the City of Lino Lakes' net assets, restricted net assets (11 percent) are to be
<br />used for debt service requirements and a nonexpendable environmental fund. Unrestricted net assets (16
<br />percent) may be used to meet the government's ongoing obligations to citizens and creditors.
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