05-11-2022 Council Packet - Laserfiche WebLink

Home Browse Search

CITY OF LITTLE CANADA, MINNESOTA Management’s Discussion and Analysis (continued) Year Ended December 31, 2021 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 $17,086,724, an increase of $1,152,206 or 7.23%. Approximately 11.38% of the ending fund balance total or $1,944,938, constitutes unassigned fund balance. The remaining fund balance of $15,141,786 is not available for new spending because it is either 1) nonspendable $503,889 2) restricted $3,669,877, 3) committed $758,336, or 4) assigned $10,209,684 for other purposes. 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 $2,629,475, while total fund balance was $3,201,864. 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 65% of total current fiscal year expenditures. The fund balance in the General Fund balance decreased by $856,034. The decrease is primarily due to a transfer out of $900,000 per the City’s Fund Balance Policy. Additional details of the Fund Balance Policy can be found in Note 14 of the notes to basic financial statements. Charges for services 100% Unrestricted investment earnings 0% Revenues -Business type Activities 25