Laserfiche WebLink
CITY OF ARDEN HILLS <br /> <br />Management’s Discussion and Analysis <br />Year Ended December 31, 2020 <br /> <br /> <br /> <br />-4- <br />As the management of the City of Arden Hills, Minnesota (the City), we offer readers of the City’s <br />Comprehensive Annual Financial Report this narrative overview and analysis of the financial activities of <br />the City for the fiscal year ended December 31, 2020. We encourage readers to consider the information <br />presented here in conjunction with additional information that we have furnished in our letter of <br />transmittal, which is presented in the introductory section of this report. <br /> <br /> <br />FINANCIAL HIGHLIGHTS <br /> <br />• The assets and deferred outflows of resources of the City exceeded liabilities and deferred <br />inflows of resources at the close of the most recent fiscal year by $58,339,467 (net position). Of <br />this amount, $13,534,699 (unrestricted net position) may be used to meet the City’s ongoing <br />obligations to citizens and creditors. <br /> <br />• The City’s total net position increased by $1,705,576 in 2020. <br /> <br />• As of the close of the current fiscal year, the City’s governmental funds reported combined <br />ending fund balances of $10,673,430. Of this total amount, $32,462 is nonspendable and <br />$1,137,740 is restricted, leaving an unrestricted (committed, assigned, and unassigned) balance of <br />$9,503,228. <br /> <br />• At the end of the current fiscal year, the General Fund has a total fund balance of $3,380,506. At <br />December 31, 2020, the unassigned fund balance of the General Fund was $3,155,257, or <br />60.5 percent, of the subsequent year’s budgeted expenditures. <br /> <br /> <br />OVERVIEW OF THE FINANCIAL STATEMENTS <br /> <br />This discussion and analysis is intended to serve as an introduction to the City’s basic financial <br />statements. The City’s basic financial statements include three components: 1) government-wide financial <br />statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also <br />contains other supplementary information in addition to the basic financial statements themselves. <br /> <br />Government-Wide Financial Statements – The government-wide financial statements are designed to <br />provide readers with a broad overview of the City’s finances, in a manner similar to a private sector <br />business. <br /> <br />The Statement of Net Position presents information on all of the City’s assets, liabilities, and deferred <br />inflows/outflows of resources, with the difference reported as net position. Over time, increases or <br />decreases in net position may serve as a useful indicator of whether the financial position of the City is <br />improving or deteriorating. <br /> <br />The Statement of Activities presents information showing how the City’s net position changed during the <br />most recent fiscal year. All changes in net position are reported as soon as the underlying event giving <br />rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are <br />reported in this statement for some items that will only result in cash flows in future fiscal periods <br />(e.g., uncollected taxes and earned but unused vacation leave).