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CITY OF LINO LAKES, MINNESOTA
<br />MANAGEMENT’S DISCUSSION AND ANALYSIS
<br />DECEMBER 31, 2013
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<br />OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
<br />Fiduciary funds Fiduciary funds are used to account for assets held by the City as an agent for
<br />individuals, private organizations, or other governments.
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<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 35-59 of this report.
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<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.
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<br />GOVERNMENT-WIDE FINANCIAL ANALYSIS
<br />As noted earlier, net position may serve over time as a useful indicator of a government’s financial
<br />position. The City of Lino Lakes’ assets exceeded liabilities by $91,513,956 at the close of the most
<br />recent fiscal year, an decrease of $786,644 from the previous year. This decrease is primarily due annual
<br />depreciation of capital assets and the use of municipal state aid that was advanced to the City during
<br />2012.
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<br />By far the largest portion of the City of Lino Lakes’ net position (55%) reflects its net investment in capital
<br />assets (e.g. land, buildings, machinery, equipment, and infrastructure). The City of Lino Lakes uses these
<br />capital assets to provide services to citizens; consequently, these assets are not available for future
<br />spending. Although the City of Lino Lakes’ investment in its capital assets is reported net of related debt,
<br />it should be noted that the resources needed to repay this debt must be provided from other sources,
<br />since the capital assets themselves cannot be used to liquidate these liabilities.
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<br />Condensed versions of the statements of net position at December 31, 2013 and 2012 are as follows:
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<br />2013 2012 2013 2012 2013 2012
<br />Current and Other Assets 33,326,625$ 34,456,692$ 13,092,332$ 12,194,619$ 46,418,957$ 46,651,311$
<br />Capital Assets 37,854,973 39,634,563 28,423,284 28,798,095 66,278,257 68,432,658
<br />Total Assets 71,181,598 74,091,255 41,515,616 40,992,714 112,697,214 115,083,969
<br />Noncurrent Liabilities Outstanding 20,006,657 21,875,614 54,182 43,410 20,060,839 21,919,024
<br />Other Liabilities 1,083,451 815,149 38,968 49,196 1,122,419 864,345
<br />Total Liabilities 21,090,108 22,690,763 93,150 92,606 21,183,258 22,783,369
<br />Net Position:
<br />Net Investment in Capital Assets 22,241,821 22,166,342 28,423,284 28,798,095 50,665,105 50,964,437
<br />Restricted 11,000,033 11,595,112 - - 11,000,033 11,595,112
<br />Unrestricted 16,849,636 17,639,038 12,999,182 12,102,013 29,848,818 29,741,051
<br />Total Net Position 50,091,490$ 51,400,492$ 41,422,466$ 40,900,108$ 91,513,956$ 92,300,600$
<br />Governmental Activities Business-Type Activities Total
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<br />Of the remaining balance of the City of Lino Lakes’ net position, restricted net position (12%) are to be
<br />used for debt service requirements and a nonexpendable environmental fund. Unrestricted net position
<br />(33%) may be used to meet the government’s ongoing obligations to citizens and creditors.
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