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CITY OF RAMSEY
<br />Management's Discussion and Analysis
<br />Year Ended December 31, 2022
<br />As management of the City of Ramsey, Minnesota (the City), we have provided readers of the City's financial
<br />statements with this narrative overview and analysis of the financial activities of the City for the fiscal year ended
<br />December 31, 2022. The discussion and analysis is intended to be considered in conjunction with the additional
<br />information that we have furnished in our letter of transmittal, located earlier in this report, and the City's
<br />financial statements contained within this report.
<br />FINANCIAL HIGHLIGHTS
<br />• The City's assets and deferred outflows of resources exceeded its liabilities and deferred inflows of
<br />resources at December 31, 2022 by $215,192,728 (net position).
<br />• Government -wide revenues totaled $36,420,425 and were $9,175,482 more than expenses.
<br />• As of the close of the current fiscal year, the City's governmental funds reported a combined ending
<br />fund balance of $61,436,516, an increase of $14,685,510 from the prior fiscal year, largely due to the
<br />issuance of $10,765,000 General Obligation Street Reconstruction Bonds.
<br />• At the end of the current fiscal year the General Fund equity balance of $11,095,052 included $30,636
<br />of nonspendable fund balance and $11,064,416 of unassigned fund balance.
<br />OVERVIEW OF THE FINANCIAL STATEMENTS
<br />Management's Discussion and Analysis (MD&A) is intended to serve as an introduction to the City's basic
<br />financial statements, which are comprised of three components: 1) government -wide financial statements, 2)
<br />fund financial statements, and 3) notes to basic financial statements. This report also contains other information
<br />in addition to the basic financial statements themselves.
<br />Government -Wide Financial Statements — The government -wide financial statements are designed to provide
<br />readers with a broad overview of the City's finances, in a manner similar to private sector businesses.
<br />The Statement of Net Position presents information on all of the City's assets, liabilities, and deferred
<br />inflows/outflows, as applicable, (excluding Fiduciary Funds), with the difference reported as net position. Over
<br />time, increases or decreases in net position may serve as a useful indicator of whether the financial position of
<br />the City is improving or deteriorating.
<br />The Statement of Activities presents information showing how the City's net position changed during the most
<br />recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
<br />change occurs, regardless of the tinning of related cash flows. Thus, revenues and expenses are reported in this
<br />statement for some items that will only result in cash flows in future fiscal periods (e.g., delinquent taxes and
<br />special assessments).
<br />Both of the government -wide financial statements distinguish functions of the City that are principally supported
<br />by property taxes and intergovernmental revenues (governmental activities) from other functions that are
<br />intended to recover all or a significant portion of their costs through user fees and charges (business -type
<br />activities). The governmental activities include general government, public safety, highways and streets, culture
<br />and recreation, and economic development. The business -type activities of the City include enterprises for water,
<br />sewer, street light, recycling, and storm water utilities.
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