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City of Lino Lakes, Minnesota
<br />Management's Discussion and Analysis
<br />December 31, 2006
<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 -54 of this report.
<br />NNW
<br />Now
<br />VIM
<br />Other information. The combining statements and schedules referred to earlier in conjunction with
<br />nonmajor governmental funds can be found on pages 63 -78 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 $91,136,637 at the close of the most recent fiscal
<br />year, an increase of $6,133,384 from the previous year.
<br />By far the largest portion of the City of Lino Lakes' net assets (65 percent) reflects its investment in capital
<br />assets (e.g. land, buildings, machinery, equipment, and infrastructure), less any related debt used to
<br />acquire those assets that is still outstanding. The City of Lino Lakes uses these capital assets to provide
<br />services to citizens; consequently, these assets are not available for future spending. Although the City of
<br />Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the
<br />resources needed to repay this debt must be provided from other sources, since the capital assets
<br />themselves cannot be used to liquidate these liabilities.
<br />A condensed version of the Statement of Net Assets at December 31, 2006 follows:
<br />Current and Other Assets
<br />Capital Assets
<br />Total Assets
<br />Noncurrent Liabilities Outstanding
<br />Other Liabilities
<br />Total Liabilities
<br />Net Assets
<br />Invested in Capital Assets, Net
<br />of Related Debt
<br />Restricted
<br />Unrestricted
<br />Total Net Assets
<br />Governmental Activities
<br />2006 2005
<br />$ 27,167,139 $ 32,881,762
<br />51,159,427 45,450,783
<br />78,326,566 78,332,545
<br />22,410,771
<br />1,145,647
<br />23,556,418
<br />25,425,155
<br />1,819, 307
<br />27,244,462
<br />Business -Type Activities
<br />2006 2005
<br />$ 8,772,775 $ 5,718,353
<br />31,591,370 30,767,824
<br />40,364,145 36,486,177
<br />3,897,167
<br />100,489
<br />3,997,656
<br />2,452,500
<br />118,507
<br />2,571,007
<br />Total
<br />2006 2005
<br />$ 35,939,914 $ 38,600,115
<br />82,750,797 76,218,607
<br />118,690,711 114,818, 722
<br />26,307,938
<br />1,246,136
<br />27,554,074
<br />27,877,655
<br />1,937,814
<br />29,815,469
<br />29,549,174
<br />10,704,508
<br />14,516,466
<br />$ 54,770,148
<br />25,460,528
<br />12,050,484
<br />13,577,071
<br />$ 51,088,083
<br />29,485,942 28,342,832 59,035,116 53,803,360
<br />10, 704, 508 12, 050, 484
<br />6,880,547 5,572,338 21,397,013 19,149,409
<br />$ 36,366,489 $ 33,915,170 $ 91,136,637 $ 85,003,253
<br />Of the remaining balance of the City of Lino Lakes' net assets, restricted net assets (12 percent) are to be
<br />used for debt service requirements and a nonexpendable environmental fund. Unrestricted net assets (23
<br />percent) may be used to meet the government's ongoing obligations to citizens and creditors.
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