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CITY OF LITTLE CANADA, MINNESOTA
<br />MANAGEMENT’S DISCUSSION AND ANALYSIS
<br />YEAR ENDED DECEMBER 31, 2017
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<br />
<br />
<br />(20)
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<br />Overall revenues increased 13% between 2016 and 2017. The City relies to a great extent on property
<br />taxes to finance its governmental activities and this amount remained similar to the prior year. The fairly
<br />dramatic increase in revenues can be attributed to three primary areas: 1. In 2016, Little Canada
<br />received a reimbursement of $915,299 from the State of Minnesota for the Quiet Zone Project. 2. The
<br />City sold the former Public Works building for $492,481 in 2016 with $11,668.24 of that amount was
<br />rebated in 2017 for exterior building enhancements pursuant to the terms of the purchase agreement.
<br />3. License and Permit revenues totaled $904,927 in 2016 versus $643,841 in 2017. The reduction is
<br />attributed to less building permit activity in 2017 after coming off a record year in 2016.
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<br />Expenses increased 5% between 2016 and 2017 with the largest increase in Public Works that is
<br />project related for budgeted improvements.
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<br />The following is a summary of the City’s change in business-type net position:
<br />
<br />Annual Percent
<br />2017 2016 Change Change
<br />REVENUES
<br />Program Revenues:
<br />Charges for Services $ 3,012,949 $ 2,875,934 137,015$ 5%
<br />Capital Grants and Contributions 284,231 38,700 245,531 100
<br />General Revenues:
<br />Other 6,863 7,815 (952) (12)
<br />Unrestricted Investment Earnings 27,547 24,237 3,310 14
<br />Total Revenues 3,331,590 2,946,686 384,904 13
<br />EXPENSES
<br />Water Operating 1,631,920 1,575,608 56,312 4
<br />Sewer Operating 1,434,384 1,327,205 107,179 8
<br />Total Expenses 3,066,304 2,902,813 163,491 6
<br />CHANGE IN NET POSITION BEFORE
<br /> TRANSFERS AND CONTRIBUTIONS 265,286 43,873 221,413 505
<br />Transfers and Contributions (300,000) (300,000)- -
<br />CHANGE IN NET POSITION (34,714) (256,127)221,413 86
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<br />Net Position - Beginning of Year 10,078,901 10,335,028 (256,127) (2)
<br />NET POSITION - END OF YEAR 10,044,187$ 10,078,901$ (34,714)$ (0)
<br /> Business-Type Activities
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<br />The business-type activities, primarily the City’s utility operations, showed a slight decrease in net
<br />position.
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