|
City of Lino Lakes, Minnesota
<br />Management's Discussion and Analysis
<br />December 31, 2007
<br />GENERAL FUND BUDGETARY HIGHLIGHTS
<br />The original budget was amended ten times during the year reflecting donations and grants received
<br />primarily for police personnel and equipment, and reallocating resources within the original budget.
<br />Revenues were $175,993 under budget. Property Taxes, and the corresponding Market Value Credit,
<br />were lower due to delinqencies in tax payments. Lower building activity and, therefore, fewer building
<br />permits being issued was the largest contributing factor. State intergovernmental revenues for police
<br />PERA aid were well over budgeted revenue for the year due to increased state funding in these areas.
<br />Local government grants were slightly under budget due to lower grant funds allocated by the granting
<br />entity. Investment earnings, due to rising interest rates were also significantly over budget. Public safety
<br />charges for service were also well over budget due to greater than expected traffic control contracts. Fines
<br />and forfeitures were over budgeted amounts to to Operation Nitecap and other programs aimed at
<br />increased patrolling for vehicular violations. Expenditures came in under the budgeted amounts by
<br />$319,917 due mainly to lower than expected personal services costs. In spite of personnel savings,
<br />energy costs for fuels and electricity were higher than budgeted amounts. There were also net transfers
<br />from the general fund of $791,927. This resulted in a net fund balance increase of $47,797 for the fiscal
<br />year.
<br />CAPITAL ASSET AND DEBT ADMINISTRATION
<br />Capital assets The City of Lino Lakes' investment in capital assets for its governmental and business -
<br />type activities as of December 31, 2007, amounts to $81,358,520 (net of accumulated depreciation). This
<br />investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery
<br />and equipment, other capital assets, and infrastructure. This represents a decrease in the City of Lino
<br />Lakes' investment in capital assets (net of accumulated depreciation) of 1.7 percent. This decrease is
<br />entirely within the governmental activities and is attributable to the depreciation of constructed streets,
<br />underground infrastructure and vehicles. Within the business -type activities the most significant increases
<br />occurred in infrastructure installation in relation to the water and sewer funds.
<br />Capital Assets at Year -End
<br />(Net of Accumulated Depreciation)
<br />Governmental Activities Business -Type Activities Total
<br />2007 2006 2007 2006 2007 2006
<br />Land $ 2,809,059 $ 2,809,059 $ $ $ 2,809,059 $ 2,809,059
<br />Construction in progress 5,738,921 5,066,936 13,054 - 5,751,975 5,066,936
<br />Buildings 4,376,812 4,593,749 4,376,812 4,593,749
<br />Office Equipment and Furniture 491,145 514,309 - 491,145 514,309
<br />Vehicles 1,157,749 951,072 1,157,749 951,072
<br />Machinery and Shop Equipment 246,652 291,928 132,135 109,244 378,787 401,172
<br />Other Equipment 391,712 408,798 391,712 408,798
<br />Infrastructure 34,474,650 36,523,576 31,526,631 31,482,126 66,001,281 68,005,702
<br />Capital Assets, Net $ 49,686,700 $ 51,159,427 $ 31,671,820 $ 31,591,370 $ 81,358,520 $ 82,750,797
<br />Additional information on the City's capital assets can be found in the notes to the financial statements on
<br />pages 33 -53.
<br />18
<br />
|