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CITY OF LITTLE CANADA, MINNESOTA
<br />Management’s Discussion and Analysis (continued)
<br />Year Ended December 31, 2020
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<br />GOVERNMENT-WIDE FINANCIAL ANALYSIS
<br />As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.
<br />In the case of the City of Little Canada, assets and deferred outflows of resources exceeded liabilities and
<br />deferred inflows of resources by $55,405,375 at the close of the most recent fiscal year.
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<br /> City of Little Canada Net Position
<br /> Governmental Activities Business-type Activities Total Primary Government
<br /> 2020 2019 2020 2019 2020 2019
<br />Current and other assets $20,077,988 $18,514,224 $2,925,203 $2,695,578 $23,003,191 $21,209,802
<br />Capital assets 30,417,424 28,865,500 7,993,507 8,218,320 38,410,931 37,083,820
<br />Total assets 50,495,412 47,379,724 10,918,710 10,913,898 61,414,122 58,293,622
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<br />Deferred Outflows of Resources 76,201 44,838 54,105 31,940 130,306 76,778
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<br />Long-term liabilities outstanding 3,579,751 3,874,594 79,113 72,359 3,658,864 3,946,953
<br />Other liabilities 1,747,984 1,598,657 625,322 496,714 2,373,306 2,095,371
<br />Total liabilities 5,327,735 5,473,251 704,435 569,073 6,032,170 6,042,324
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<br />Deferred inflows of resources 49,539 136,564 35,174 97,277 84,713 233,841
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<br />Net position:
<br /> Net investment in capital assets 26,565,229 24,872,181 7,993,507 8,218,320 34,558,736 33,090,501
<br /> Restricted 3,348,157 3,757,032 - - 3,348,157 3,757,032
<br /> Unrestricted 15,280,953 13,185,534 2,239,699 2,061,168 17,520,652 15,246,702
<br />Total net position $45,194,339 $41,814,747 $10,233,206 $10,279,488 $55,427,545 $52,094,235
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<br />The City’s net investment in capital assets is $34,558,736 or 62.3% of the total net position, and reflects its
<br />investment in capital assets (e.g. land, buildings, infrastructure, machinery and equipment, and vehicles);
<br />less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets
<br />to provide services to citizens; consequently, these assets are not available for future spending. Although
<br />the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources
<br />needed to repay this debt must be provided from other sources, since the capital assets themselves cannot
<br />be used to liquidate these liabilities.
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<br />An additional portion of the City’s net position, $3,348,157 or 6% represents resources that are subject to
<br />external restrictions on how they may be used. The remaining balance of unrestricted net position,
<br />$17,520,652 or 31.7% may be used to meet the City’s ongoing obligations to citizens and creditors. At the
<br />end of the current fiscal year, the City is able to report positive balances in all categories of net position,
<br />both for the City as a whole, 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
<br />assure the operation of a balanced budget. This conservative approach and the sound financial position the
<br />City has attained, have resulted in the City’s excellent bond ratings: AA+ for all general obligation bond
<br />issues.
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