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CITY OF LITTLE CANADA, MINNESOTA
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />DECEMBER 31, 2017
<br />
<br />
<br />
<br />(68)
<br />
<br />NOTE 14 FUND BALANCES
<br />A. Classifications
<br />A summary of the governmental fund balance classifications at December 31, 2017 is as
<br />follows:
<br />
<br /> Water/Sewer
<br />General Canabury Square Rice/LC Road Equipment Infrastructure Other
<br />Fund Condominiums HIA Development Replacement CIP TIF #6-1 Governmental Total
<br />Nonspendable:
<br />Prepaid Items 8,389$ -$ -$ -$ -$ -$ 4,880$ 13,269$
<br />Advances to Other Funds 1,090,034 - - 267,113 - - - 1,357,147
<br />Total Nonspendable 1,098,423 - - 267,113 - - 4,880 1,370,416
<br />Restricted for:
<br />Debt Service - - - - - - 93,554 93,554
<br />Tax Increment - - 2,271,047 - - - 1,408,414 3,679,461
<br />Fire Equipment - - - - - - 267,803 267,803
<br />Park Acquisition - - - - - - 817,919 817,919
<br />Charitable Gambling - - - - - - 114,421 114,421
<br />Total Restricted - - 2,271,047 - - - 2,702,111 4,973,158
<br />Committed to:
<br />Cable - - - - - - 448,590 448,590
<br />Parks and Recreation - - - - - - 41,303 41,303
<br />Recycling - - - - - - 202,744 202,744
<br />Economic Development - - - - - - 33,631 33,631
<br />Total Committed - - - - - - 726,268 726,268
<br />Assigned to:
<br />Park Acquisition - - - - - - 288,021 288,021
<br />Fire Equipment - - - - - - 404,411 404,411
<br />Redevelopment - - - - - - 389,822 389,822
<br />Capital Improvements - - - 2,245,190 2,242,071 - 1,832,859 6,320,120
<br />Total Assigned - - - 2,245,190 2,242,071 - 2,915,113 7,402,374
<br />Unassigned 1,434,580 (45,720) - - - (662,071) 25,543 752,332
<br />Total 2,533,003$ (45,720)$ 2,271,047$ 2,512,303$ 2,242,071$ (662,071)$ 6,373,915$ 15,224,548$
<br />B. Fund Balance Policy
<br />The City Council has formally adopted a policy regarding the minimum unassigned fund
<br />balance for the General Fund. The most significant revenue source of the General Fund
<br />is property taxes. This revenue source is received in two installments during the year –
<br />June and December. As such, it is the City’s goal to begin each fiscal year with sufficient
<br />working capital to fund operations between each semi-annual receipt of property taxes.
<br />
<br />The policy establishes a year-end targeted unassigned fund balance amount for cash-
<br />flow timing needs in the range of 42.5-65% of the subsequent year’s budgeted
<br />expenditures. At December 31, 2017, the unassigned fund balance of the General Fund
<br />was 37.9% of the subsequent year’s budgeted expenditures. A large portion of the fund
<br />balance is in the form of nonspendable advances to other funds, causing the shortfall in
<br />unassigned fund balance as a percentage of the subsequent year’s budget.
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