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 FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS Governmental Funds The focus of the City of Little Canada’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Little Canada’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources for spending at the end of the fiscal year. At the end of the current fiscal year, the City’s governmental funds reports combined ending fund balance of $15,934,518, an increase of $1,894,655 or 13.4%. Approximately 10.15% of the ending fund balance total or $1,616,759, constitutes unassigned fund balance. The remaining fund balance of $14,317,579 is not available for new spending because it is either 1) nonspendable $556,400 2) restricted $3,336,454, 3) committed $718,479, or 4) assigned for other purposes $9,706,426. General Fund The General Fund is the main operating fund of the City. As the end of the current fiscal year, the unassigned fund balance of the General Fund was $2,682,015, while total fund balance was $4,057,898. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 66% of total current fiscal year expenditures. The fund balance in the General Fund balance increased by $936,428. The increase is primarily due to one- time funds received related to the CARES Act that were used to offset financial impacts realized due to COVID-19, and FEMA funds that were used to reimburse the City for emergency sandbagging operations that occurred at Twin Lake in 2019. In addition, there were decreased revenues due to the pandemic. These revenue decreases were offset by expenditure savings. Expenditure savings were realized whenever possible, in order to remain flexible in dealing with the pandemic. Charges for services 98% Unrestricted investment earnings 2% Revenues -Business type Activities 25