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Management’s Discussion and Analysis
<br />As management of the City of Orono, Minnesota, (the City), we offer readers of the City’s financial statements this
<br />narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2019. We
<br />encourage readers to consider the information presented here in conjunction with additional information that we have
<br />furnished in our letter of transmittal, which can be found on pages 11 - 18 of this report.
<br />Financial Highlights
<br />The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources
<br />at the close of the most recent fiscal year by $52,895,092 (net position). Of this amount, $5,511,864 (unrestricted
<br />net position) may be used to meet the City’s ongoing obligations to citizens and creditors.
<br />The City’s net position for governmental activities increased $3,860,867 and business-type activities increased
<br />$64,882, resulting in a total increase of $3,925,749, mainly as a result of current year decrease in expenses for
<br />governmental activities and a increase business-type activities expenses.
<br />As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances
<br />of $7,719,676, an increase of $126,306 in comparison with the prior year.
<br />At the end of the current fiscal year, unassigned fund balance for the General fund was $4,288,536, or 46.9
<br />percent of next year's budgeted expenditures.
<br />The City’s total debt decreased $997,435, (12.24% percent) during the current fiscal year. The decrease was due
<br />to scheduled debt payments.
<br />at the close of the most recent fiscal year by at the close of the most recent fiscal year by $52,895,092 (net position). Of this amount, (net position). Of this amount, $5,511,864
<br />net position) may be used to meet the City’s ongoing obligations to citizens and creditors.net position) may be used to meet the City’s ongoing obligations to citizens and creditors.
<br />The City’s net position for governmental activities The City’s net position for governmental activities increasedincreased $3,860,867$3,860,867 and businessand business--type atype a
<br />, resulting in a total , resulting in a total increaseincrease of $3,925,749of $3,925,749,mainly as a result of mainly as a result of currcurrent year decrease in expenent year decrease in expen
<br />activitiesactivities and a increase a increase businessbusiness-type activitiestype activities expenses.expenses.
<br />As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances
<br />an increasean increase of $126,306of $126,306 in comparison with the prior year. in comparison with the prior year.
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