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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 />
<br />(21)
<br />City of Little Canada’s financing requirements. In particular, unassigned fund balance may serve as a
<br />useful measure of a government’s net resources for spending at the end of the fiscal year.
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<br />At the end of the current fiscal year, the City’s governmental funds report combined ending fund
<br />balance of $18,193,150, an increase of $1,106,425 or 6.47%. Approximately 14.60% of the ending
<br />fund balance total or $2,656,007, constitutes unassigned fund balance. The remaining fund balance of
<br />$15,537,143 is not available for new spending because it is either 1) nonspendable $574,629 2)
<br />restricted $3,088,726, 3) committed $1,464,755, or 4) assigned $10,409,033 for other purposes.
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<br />General Fund
<br />The General Fund is the main operating fund of the City. Its primary revenue source in 2022 was
<br />property taxes at 75.59% of the total revenue, followed by licenses and permits at 12.25% and
<br />intergovernmental revenue at 7.32%. The total fund balance increased by $412,645 during the current
<br />fiscal year 2022, resulting from an excess of revenue over expenditures of $322,882 combined with net
<br />transfers in of $89,763. The unassigned fund balance of $3,039,880 at the end of 2022 represents
<br />71.32% of total General Fund expenditures for the year 2022 and 62.6% of General fund budgeted
<br />expenditures for the year 2023.
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<br />Additional detail of the Fund Balance Policy can be found in Note 14 of the notes to the basic financial
<br />statements.
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<br />Other Major Governmental Funds
<br />The Economic Development fund had an increase in fund balance of $714,445, to arrive at an ending
<br />fund balance of $744,421. The increase in fund balance was due a transfer from the Owasso/Woodlyn
<br />Redevelopment Fund 474 of $672,836. The transfer was approved by council during the year and
<br />brought the Owasso/Woodlyn Redevelopment Fund 474 to a zero balance. Since all the funds have
<br />been transferred to the EDA fund, Owasso/Woodlyn Redevelopment Fund 474 will be closed in 2023.
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<br />The General Capital Improvements fund experienced an increase in fund balance of $917,719 during
<br />the current fiscal year to arrive at an ending fund balance of $3,609,569. The increase was due to
<br />planned revenue receipts that will be used to fund future capital improvement projects that have been
<br />identified in the City’s ten-year Capital Improvement Plan, and the sale of property to a developer for
<br />$498,543 for the Twin Lake Housing Development.
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<br />The Infrastructure CIP fund had a decrease in fund balance of $923,172 during the current fiscal year
<br />to arrive at an ending fund balance of $2,447,079. The decrease was due to planned expenditures that
<br />have been identified in the City’s ten-year Capital Improvement Plan, $2,026,925 in 2022 versus
<br />$932,851 in 2021.
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<br />Proprietary Funds
<br />The City of Little Canada’s proprietary funds provide the same type of information found in the
<br />government-wide financial statements, but in more detail.
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<br />At the end of the year, net position of the Water and Sewer funds totaled $10,191,897 or $28,825 more
<br />than 2021, primarily due to an increase in contributed assets in 2022 compared to 2021. Unrestricted
<br />net position increased $72,327 due to increased revenues (rate increase).
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<br />Budgetary Highlights
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