Laserfiche WebLink
CITY OF LITTLE CANADA, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2015 <br /> <br /> <br /> <br />(41) <br /> <br />NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br />E. Fund Financial Statement Presentation (Continued) <br />Description of Funds (Continued) <br />TIF #6-1 – Used to account for amounts received from tax increment financing and <br />related project expenditures of TIF District #6-1. <br /> <br />City Maintenance Garage Capital Project Fund – This fund is used to account for <br />the project costs and related financing of the City’s maintenance building project. <br /> <br />The City reports the following major enterprise funds: <br /> <br />Water Operating Fund – This fund is used to account for the provision of water <br />services to the residents and business of the City. <br /> <br />Sewer Operating Fund – This fund is used to account for the provision of sewer <br />services to the residents and business of the City. <br /> <br />The City also reports the following fund type: <br /> <br />Agency Fund – The Developers Deposit Fund accounts for pass-through types of <br />expenditures relating to prospective developers. <br /> <br />F. Budgets <br />Budgets are adopted on a basis consistent with generally accepted accounting <br />principles. Annual appropriated budgets are adopted for the General and all Special <br />Revenue Funds. Budgeted expenditure appropriations lapse at year-end. <br /> <br />Encumbrance accounting, under which purchase orders, contracts, and other <br />commitments for the expenditure of monies are recorded in order to reserve that portion <br />of the appropriation, is not employed by the City because it is, at present, not considered <br />necessary to assure effective budgetary control or to facilitate effective cash <br />management. <br /> <br />The City follows these procedures in establishing the budgetary data reflected in the <br />financial statements: <br /> <br />1. The City Administrator submits to the City Council a proposed operating budget for <br />the fiscal year commencing the following January 1. The operating budget includes <br />proposed expenditures and the means of financing them. <br />2. Public hearings are conducted to obtain taxpayer comments. <br />3. The budget is legally enacted through passage of a resolution on a departmental <br />basis and can be expended by each department based upon detailed budget <br />estimates for individual expenditure accounts.