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