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CITY OF LINO LAKES, MINNESOTA
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />DECEMBER 31, 2013
<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, 2013, is $66,278,257. This investment in capital assets includes land,
<br />buildings, office equipment and furniture, vehicles, machinery and equipment, other capital assets, and
<br />infrastructure. This represents a decrease in the City of Lino Lakes' investment in capital assets of
<br />approximately 3.1%. The extension of Otter Lake Road north of CSAH 14 was completed during the year
<br />by the City, adding to road and utility infrastructure. The only additions were from projects in progress.
<br />The decrease within the governmental activities is attributable to the depreciation of buildings,
<br />constructed streets, underground infrastructure and vehicles. Within the business -type activities
<br />decreases were also attributable to depreciation of existing assets of the water and sewer funds.
<br />Capital Assets at Year -End
<br />(Net of Accumulated Depreciation)
<br />Governmental Activities Business -Type Activities
<br />Total
<br />2013 2012 2013 2012 2013 2012
<br />Land $ 3,275,859 $ 3,275,859 $ $ $ 3,275,859 $ 3,275,859
<br />Buildings 3,301,916 3,324,186 3,301,916 3,324,186
<br />Office Equipment and Furniture 407,616 450,739 407,616 450,739
<br />Vehicles 1,064,565 1,148,061 - - 1,064,565 1,148,061
<br />Machinery and Shop Equipment 340,245 392,625 232,927 195,903 573,172 588,528
<br />Other Equipment 182,700 205,040 182,700 205,040
<br />Infrastructure 29,282,072 30,838,053 28,190,357 28,602,192 57,472,429 59,440,245
<br />Capital Assets, Net $ 37,854,973 $ 39,634,563 $ 28,423,284 $ 28,798,095 $ 66,278,257 $ 68,432,658
<br />Additional information on the City's capital assets can be found in the notes to the financial statements on
<br />pages 46-47.
<br />Long-term debt — At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
<br />outstanding of $15,585,000. Of this amount $9,865,000 comprises tax supported debt and $5,720,000 is
<br />special assessment debt. All outstanding debt carries the general obligation backing for which the City is
<br />liable in the event of default by the property owners subject to the specific taxes, special assessments or
<br />revenues pledged to the retirement of the debt. In addition, the City carries a note to Anoka County for its
<br />share of the cost of the I-35E/County Road 14 Interchange project in the amount of $3,695,000.
<br />Outstanding Debt at Year -End
<br />Governmental Activities Business -Type Activities
<br />Total
<br />2013 2012 2013 2012 2013 2012
<br />G.O. Bonds $ 9,865,000 $ 10,646,000 $ - $ - $ 9,865,000 $ 10,646,000
<br />G.O. Special Assessment Bonds 5,720,000 6,780,000 - - 5,720,000 6,780,000
<br />Note Payable - Anoka County 3,695,000 3,695,000 - 3,695,000 3,695,000
<br />Total Outstanding Debt $ 19,280,000 $ 21,121,000 $ - $ $ 19,280,000 $ 21,121,000
<br />The City of Lino Lakes' total bonded debt decreased by $1,841,000 (10.6%) during the current fiscal year.
<br />The key factors for the change include the issuance of $193,000 in 2013A Equipment Certificates and the
<br />issuance of a general obligation bond in the amount $615,000 to finance the extension of Otter Lake
<br />Road. Principal in the amount of $2,649,000 was retired during the year. Additional information on the
<br />City's long-term debt can be found in the notes to the financial statements on pages 48-50.
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