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CITY OF LITTLE CANADA, MINNESOTA
<br />Management’s Discussion and Analysis (continued)
<br />Year Ended December 31, 2021
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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 $56,069,602 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 /> 2021 2020 2021 2020 2021 2020
<br />Current and other assets $20,874,837 $20,077,988 $3,109,410 $2,925,203 $23,984,247 $23,003,191
<br />Capital assets 29,978,399 30,417,424 7,638,793 7,993,507 37,617,192 38,410,931
<br />Total assets 50,853,236 50,495,412 10,748,203 10,918,710 61,601,439 61,414,122
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<br />Deferred outflows of resources 354,996 76,201 235,745 54,105 590,741 130,306
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<br />Long-term liabilities outstanding 3,267,414 3,579,751 52,457 79,113 3,319,871 3,658,864
<br />Other liabilities 1,628,846 1,747,984 457,614 625,322 2,086,460 2,373,306
<br />Total liabilities 4,896,260 5,327,735 510,071 704,435 5,406,331 6,032,170
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<br />Deferred inflows of resources 430,416 49,539 285,831 35,174 716,247 84,713
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<br />Net position:
<br /> Net investment in capital assets 26,571,556 26,565,229 7,638,793 7,993,507 34,210,349 34,558,736
<br /> Restricted 3,679,079 3,348,157 - - 3,679,079 3,348,157
<br /> Unrestricted 15,630,921 15,280,953 2,549,253 2,239,699 18,180,174 17,520,652
<br />Total net position $45,881,556 $45,194,339 $10,188,046 $10,233,206 $56,069,602 $55,427,545
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<br />The City’s net investment in capital assets is $34,210,349 or 61% 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, $3,679,079 or 6.6% represents resources that are subject to
<br />external restrictions on how they may be used. The remaining balance of unrestricted net position,
<br />$18,180,174 or 32.4% 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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