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CITY OF LITTLE CANADA, MINNESOTA
<br />MANAGEMENT’S DISCUSSION AND ANALYSIS
<br />YEAR ENDED DECEMBER 31, 2022
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<br />Notes to Basic Financial Statements – The notes to basic financial statements provide additional
<br />information that is essential to a full understanding of the data provided in the government-wide and
<br />fund financial statements.
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<br />Other Information – Combining statements and schedules for nonmajor funds are presented
<br />immediately following the notes to basic financial statements.
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<br />As noted earlier, net position may serve over time as a useful indicator of a government’s financial
<br />position. In the case of the City of Little Canada, assets and deferred outflows of resources exceeded
<br />liabilities and deferred inflows of resources by $58,433,926 at the close of the most recent fiscal year.
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<br />The following is a summary of the City’s net position:
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<br />2022 2021 2022 2021 2022 2021
<br />Current and Other Assets 22,106,400$ 20,874,837$ 4,717,417$ 3,109,410$ 26,823,817$ 23,984,247$
<br />Capital Assets 31,006,058 29,978,399 7,596,291 7,638,793 38,602,349 37,617,192
<br />Total Assets 53,112,458 50,853,236 12,313,708 10,748,203 65,426,166 61,601,439
<br />Deferred Outflows of Resources 316,342 354,996 189,160 235,745 505,502 590,741
<br />Other Liabilities 1,302,506 1,290,530 142,189 208,429 1,302,506 1,290,530
<br />Long-Term Liabilities
<br />Due Within One Year 372,723 292,199 35,080 - 407,803 292,199
<br />Due in More Than One Year 3,520,453 3,313,531 600,745 301,642 4,213,887 3,771,145
<br />Total Liabilities 5,195,682 4,896,260 778,014 510,071 5,924,196 3,771,145
<br />Deferred Inflows of Resources 13,597 430,416 1,510,449 285,831 1,524,046 716,247
<br />Net Position:
<br />Net Investment in Capital Assets 27,802,478 26,571,556 7,596,291 7,638,793 35,398,769 34,210,349
<br />Restricted 5,133,373 3,679,079 - - 5,133,373 3,679,079
<br />Unrestricted 15,283,670 15,630,921 2,618,114 2,549,253 17,901,784 18,180,174
<br />Total Net Position 48,219,521$ 45,881,556$ 10,214,405$ 10,188,046$ 58,433,926$ 56,069,602$
<br />Governmental Activities TotalBusiness-Type Activities
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<br />The City’s net investment in capital assets is $35,398,769 or 60.6% of the total net position, and reflects
<br />its investment in capital assets (e.g. land, buildings, infrastructure, machinery and equipment, and
<br />vehicles); less any related debt used to acquire those assets that are still outstanding. The City uses
<br />these capital assets to provide services to citizens; consequently, these assets are not available for
<br />future spending. Although the City’s investment in its capital assets is reported net of related debt, it
<br />should be noted that the resources needed to repay this debt must be provided from other sources,
<br />since the capital assets themselves cannot be used to liquidate these liabilities.
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<br />An additional portion of the City’s net position, $5,133,373 or 8.8% represents resources that are
<br />subject to external restrictions on how they may be used. The remaining balance of unrestricted net
<br />position, $17,901,784 or 30.6% may be used to meet the City’s ongoing obligations to citizens and
<br />creditors. At the end of the current fiscal year, the City is able to report positive balances in all
<br />categories of net position, both for the City as a whole, as well as for its separate governmental and
<br />business-type activities.
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<br />The City has historically been financially conservative, managing revenues and expenditures/expenses
<br />to assure the operation of a balanced budget. This conservative approach and the sound financial
<br />position the City has attained, have resulted in the City’s excellent bond ratings: AA+ for all general
<br />obligation bond issues.
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