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CITY OF LITTLE CANADA, MINNESOTA
<br />RECONCILIATION OF THE BALANCE SHEET TO THE
<br />STATEMENT OF NET POSITION
<br />GOVERNMENTAL ACTIVITES
<br />December 31, 2021
<br />With Comparative Data as of December 31, 2020
<br />2021 2020
<br />Total Fund Balance for Governmental Funds 17,086,724$ 15,934,518$
<br />Total net position reported for governmental activities in the statement of net
<br />position is different because:
<br />Capital assets used in governmental funds are not financial resources and,
<br />therefore, are not reported in the funds. These assets consist of:
<br />Land 3,620,111
<br />Construction in progress 172,438
<br />Buildings and improvements 7,665,497
<br />Machine and equipment 5,998,103
<br />Other improvements 1,251,714
<br />Streets 45,026,775
<br /> Total Capital assets 63,734,638
<br />Depreciation expense (33,756,239)29,978,399 30,417,424
<br />Some of the City's receivables (including property taxes, special assessments
<br />and other long-term receivables) will be collected after year-end, but are not
<br />available soon enough to pay for the current period's expenditures, and,
<br />therefore, are reported as deferred inflows of resources in the governmental
<br />funds.2,626,400 3,012,817
<br />Interest on long-term debt is not accrued in governmental funds, but rather is
<br />recognized as an expenditure when due. Accrued interest for general obligation
<br />bonds is included in the statement of net position.(37,579) (39,891)
<br />The City's net pension liability and related deferred inflows and deferred outflows
<br /> are recorded only on the statement of net position. Balances at year-end are:
<br />Net pension liability (454,226)
<br />Deferred inflows of resources - pensions (430,416)
<br />Deferred outflows of resources - pensions 354,996 (529,646) (562,356)
<br />Internal service funds are used by management to charge the cost of insurance to
<br /> individual funds. The assets and liabilities are included in the governmental
<br />statement of net position.24,672 11,578
<br />Long-term liabilities that pertain to governmental funds, including bonds payable,
<br />are not due and payable in the current period and, therefore, are not reported as
<br />fund liabilities. All liabilities - both current and long term - are reported in the
<br />statement of net position.
<br />Bonds payable (3,100,000)
<br />Notes payable (25,282)
<br />Unamortized premiums (26,222)
<br />Compensated absence payable (115,910)(3,267,414) (3,579,751)
<br />Total Net Position of Governmental Activities 45,881,556$ 45,194,339$
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<br />The accompanying notes are an integral part of these basic financial statements.
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