05-26-2021 Council Packet - Laserfiche WebLink

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CITY OF LITTLE CANADA, MINNESOTA Management’s Discussion and Analysis Year Ended December 31, 2020 As management of the City of Little Canada, Minnesota (the City), we offer readers of the City of Little Canada’s financial statement this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2020. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. FINANCIAL HIGHLIGHTS o The assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $55,427,545 (net position). Of this amount $17,520,652 (unrestricted net position) may be used to meet the government’s ongoing obligation to citizens and creditors. o The net position of the City’s governmental activities increased by $3,379,592 as a result of current year operations. Net position was $45,194,339 at year-end. o The net position of the City’s business-type activities decreased by $46,282 as a result of current year operations. Net position was $10,233,206 at year-end. o At the end of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $15,934,518. o The fund balance of the General Fund increased by $936,428 to end at $4,057,898 at year-end. o At the end of the current fiscal year, the City of Little Canada had total long-term debt outstanding of $3,658,864. This is a decrease of $288,089 from the prior fiscal year. OVERVIEW OF THE FINANCIAL STATEMENTS The Management’s Discussion and Analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other information in addition to the basic financial statements themselves. Government-Wide Financial Statements – The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to private sector businesses. The statement of net position presents information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between them reported as net position. Over time, increases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes to net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. delinquent taxes and special assessments). Both of the government-wide financial statements distinguish functions of the City that are principally supported by property taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business- type activities). The governmental activities include general government, housing and economic 19