05-26-2021 Council Packet - Laserfiche WebLink

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CITY OF LITTLE CANADA, MINNESOTA Management’s Discussion and Analysis (continued) Year Ended December 31, 2020 • A revenue decrease was realized in charges for services of $284,121. This was due to a decrease in building activity due to the pandemic. Governmental activities expenses decreased by $4.4% or $332,176. There was a large decrease (67.24%) in housing and economic expenses. Prior year expenses were for tax increment financing (TIF) activity and these activities vary from year to year. Public works increased 10.9% due to an increase in storm water repair expenses, and the addition of one public works employee that was hired during the current fiscal year to address increased public works needs throughout the city. Despite a decrease in governmental activity expenses, the City incurred additional expenses related to COVID-19 and awarded CARES Act grants to local small businesses that were financially impacted by COVID-19. Net position in the business-type activities decreased by $46,282. The decrease in net position was due to increased operating expenses. A utility rate study was finalized in December 2020 that identified a need for modest rate increases in the utility funds in 2021. The rate increases approved in 2021 will offset the increased operating expenses. Rate changes had not occurred in the utility funds since 2018 in order to complete the rate study. Governmental Activities The following graph depicts the various governmental activities and shows the expenses and program revenues directly related to those activities: $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 General Government Housing and Economic Development Public Safety Public Works Sanitation and Recycling Culture and Recreation Interest and Fiscal Charges Expense Revenue 23