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CITY OF LITTLE CANADA, MINNESOTA
<br />Management’s Discussion and Analysis (continued)
<br />Year Ended December 31, 2019
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<br />Notes to Basic Financial Statements – The notes to basic financial statements provide additional information
<br />that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
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<br />Other Information – Combining statements and schedules for nonmajor funds are presented immediately
<br />following the notes to basic financial statements.
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<br />GOVERNMENT-WIDE FINANCIAL ANALYSIS
<br />The following is a summary of the City’s net position:
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<br /> City of Little Canada Net Position
<br /> Governmental Activities Business-type Activities Total Primary Government
<br /> 2019 2018 2019 2018 2019 2018
<br />Current and other assets $18,514,224 $18,702,695 $2,695,578 $2,379,601 $21,209,802 $21,082,296
<br />Capital assets 28,865,500 29,463,793 8,218,320 8,109,979 37,083,820 37,573,772
<br />Total assets 47,379,724 48,166,488 10,913,898 10,489,580 58,293,622 58,656,068
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<br />Deferred Outflows of Resources 44,838 94,360 31,940 77,924 76,778 172,284
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<br />Long-term liabilities outstanding 3,874,594 5,139,234 72,359 60,580 3,946,953 5,199,814
<br />Other liabilities 1,598,657 1,498,371 496,714 553,242 2,095,371 2,051,613
<br />Total liabilities 5,473,251 6,637,605 569,073 613,822 6,042,324 7,251,427
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<br />Deferred inflows of resources 136,564 147,878 97,277 122,119 233,841 269,997
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<br />Net position:
<br /> Net investment in capital assets 24,872,181 25,481,497 8,218,320 8,109,979 33,090,501 33,591,476
<br /> Restricted 3,757,032 4,622,305 - - 3,757,032 4,622,305
<br /> Unrestricted 13,185,534 11,371,563 2,061,168 1,721,584 15,246,702 13,093,147
<br />Total net position $41,814,747 $41,475,365 $10,279,488 $9,831,563 $52,094,235 $51,306,928
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<br />The City’s net investment in capital assets is $33,090,501 or 63.5% of the total net position, and reflects its
<br />investment in capital assets (e.g. land, buildings, infrastructure, machinery and equipment, and vehicles); less any
<br />related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide
<br />services to citizens; consequently, these assets are not available for future spending. Although the City’s
<br />investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay
<br />this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate
<br />these liabilities.
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<br />An additional portion of the City’s net position, $3,757,032 or 7.2% represents resources that are subject to
<br />external restrictions on how they may be used. The remaining balance of unrestricted net position, $15,246,702
<br />or 29.3% may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current
<br />fiscal year, the City is able to report positive balances in all categories of net position, both for the City as a whole,
<br />as well as for its separate governmental and business-type activities.
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<br />The City has historically been financially conservative, managing revenues and expenditures/expenses to assure
<br />the operation of a balanced budget. This conservative approach and the sound financial position the City has
<br />attained, have resulted in the City’s excellent bond ratings: AA+ for all general obligation bond issues.
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