07-26-2023 Council Packet - Laserfiche WebLink

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CITY OF LITTLE CANADA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2022 (14) As management of the City of Little Canada, Minnesota (the City), we have provided readers of the City’s financial statements with this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2022. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. FINANCIAL HIGHLIGHTS o The assets and the deferred outflows of resources exceeded liabilities and deferred inflows of resources by $58,433,926 (net position). Of this amount $17,901,784 (unrestricted net position) may be used to meet the government’s ongoing obligation to citizens and creditors. o The net position of the City’s governmental activities increased by $2,337,965 as a result of current year operations. Net position was $48,219,521 at year-end. o The net position of the City’s business-type activities increased by $26,359 as a result of current year operations. Net position was $10,214,405 at year-end. o The fund balance of the General Fund increased by $412,645 (or 12.9 %) during the year to $3,614,509 at year-end. o At the end of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $18,193,150. o At the end of the current fiscal year, the City of Little Canada had total long-term debt outstanding of $3,055,874. This is a decrease of $293,809 from prior fiscal year. OVERVIEW OF THE FINANCIAL STATEMENTS The Management’s Discussion and Analysis is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other information in addition to the basic financial statements themselves. Government-Wide Financial Statements – The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to private sector businesses. The statement of net position presents information on all the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between them reported as net position. Over time, increases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes to net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. delinquent taxes and special assessments).