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City of Lino Lakes, Minnesota
<br />Management's Discussion and Analysis
<br />December 31, 2006
<br />Total net assets in the sewer fund at the end of 2006 were $21,133,913, of which $4,336,024 was
<br />unrestricted. Net assets increased $1,219,171 during the current year resulting primarily from
<br />contributions from private sources and operating income.
<br />The water and sewer rates remained the same in 2006 as in 2005. A rate study is planned for 2007.
<br />GENERAL FUND BUDGETARY HIGHLIGHTS:
<br />The original budget was amended four times during the year reflecting donations and grants received
<br />primarily for police personnel and equipment.
<br />Revenues were $70,709 under budget. Lower building activity and, therefore, fewer building permits being
<br />issued was the largest contributing factor. Federal and state intergovernmental revenues, primarily police
<br />grant related, were slightly over budget for the year. Local government grants were significantly over
<br />budget due to unexpected grant funds being received. Investment earnings, due to rising interest rates
<br />were also significantly over budget. Public safety charges for service were also over budget due to
<br />greater than expected traffic control contracts. Expenditures came in under the budgeted amounts by
<br />$205,836 due mainly to lower than expected personal services costs. There were also net transfers from
<br />the general fund of $623,311. This resulted in a net fund balance increase of $41,426 for the fiscal year
<br />which was $59,426 more than budgeted.
<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, 2006, amounts to $82,750,797 (net of accumulated depreciation). This
<br />investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery
<br />and equipment, other capital assets, and infrastructure. The total increase in the City of Lino Lakes'
<br />investment in capital assets (net of accumulated depreciation) was 9 percent. Most of this increase within
<br />the governmental activities can be found in the addition of constructed streets, underground infrastructure
<br />and vehicles. Within the business -type activities the most significant increases occurred in infrastructure
<br />installation in relation to the water and sewer funds.
<br />Land
<br />Construction in progress
<br />Buildings
<br />Office Equipment and Furniture
<br />Vehicles
<br />Machinery and Shop Equipment
<br />Other Equipment
<br />Infrastructure
<br />Capital Assets, Net
<br />Capital Assets at Year -End
<br />(Net of Accumulated Depreciation)
<br />Governmental Activities
<br />2006
<br />$ 2,809,059
<br />5,066,936
<br />4,593,749
<br />514,309
<br />951,072
<br />291,928
<br />408,798
<br />36,523,576
<br />Business -Type Activities Total
<br />2005 2006
<br />2005
<br />$ 2,809,059 $ - $
<br />4,756,524
<br />429,158
<br />741,617
<br />251,406
<br />464,472
<br />35,998,547
<br />$ 51,159,427 $ 45,450,783
<br />2006 2005
<br />$ 2,809,059
<br />356,061
<br />4,756,524
<br />429,158
<br />741,617
<br />313,320
<br />464,472
<br />66,348,396 — $ 82,750,797 $ 76,218,607
<br />$ 2,809,059
<br />356,061 5,066,936
<br />4,593,749
<br />514,309
<br />951,072
<br />401,172
<br />408,798
<br />68,005,702
<br />109,244 61,914
<br />31,482,126 30,349,849
<br />$ 31,591,370 $ 30,767,824
<br />Additional information on the City's capital assets can be found in the notes to the financial statements on
<br />pages 34 -54.
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<br />MEW
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