06-10-2020 Council Packet - Laserfiche WebLink

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CITY OF LITTLE CANADA, MINNESOTA Management’s Discussion and Analysis (continued) Year Ended December 31, 2019 FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS General Fund The General Fund is the main operating fund of the City. Its primary revenue source in 2019 was property taxes at 69.6% of the total revenue, followed by licenses and permits at 11.6% and intergovernmental revenue at 7.1%. The total fund balance increased by $402,299 during the current fiscal year 2019, resulting from an excess of revenue over expenditures of $303,621 combined with net transfers in of $98,678. The unassigned fund balance of $2,210,615 at the end of 2019 represents 57.1% of total General Fund expenditures for the year 2019. The overall fund balance of $3,121,470 represents 80.6% of 2019 General Fund expenditures (interfund loans and prepaids account for the differences between unassigned and total fund balances). Other Major Governmental Funds The Economic Development fund had a decrease in fund balance of $96,333, to arrive at an ending fund balance of ($589,698). The decrease in fund balance was due to payment to a developer. This deficit will be recovered when future loan payments are received from the developer. The TIF Bonds of 2001A fund balance was closed in 2019. The 2001A bonds that were recorded in the fund were paid in full in 2019, in accordance with the State’s TIF Statutes. The Canabury Square Condominiums HIA fund balance at the end of 2019 was ($817,650), an increase of $240,858 during the year due to receipts of special assessment payments. These payments were used to decrease the interfund loan in the fund. The deficit fund balance will be recovered when future special assessments are received from residents in the HIA. The General Capital Improvements fund experienced a decrease in fund balance of $237,617 during 2019 to arrive at an ending fund balance of $1,663,637. The decrease was due to planned capital improvement projects. The Rice/LC Road Improvements fund had a decrease in fund balance of $1,308,769 in 2019 to arrive at an ending fund balance of $529,169. This decrease was due to a transfer to the TIF Bonds of 2001A Fund, and the repayment of excess tax increment in accordance with tax increment State Statutes. The Infrastructure CIP fund had an increase in fund balance of $1,034,768 during 2019 to arrive at an ending fund balance of $3,474,818. This increase is due to the one-year pause in the City’s street reconstruction program. The pause was to allow for collaboration with Ramsey County on a large street reconstruction program to be completed in 2020. The Water and Sewer Equipment Replacement fund had a decrease in fund balance of $380,647 in 2019 to arrive at an ending fund balance of $2,033,768. The decrease was due to the planned capital outlay purchase of a sewer cleaning machine in the amount of $400,494. Proprietary Funds The City of Little Canada’s proprietary funds provide the same type of information founds in the government- wide financial statements, but in more detail. At the end of the year, total net position of the Water and Sewer funds total $10,279,488 or $447,925 more than 2018. Unrestricted net position increased $339,584, due to decreased operating expenses from changing health insurance providers. 25