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CITY OF LITTLE CANADA, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2018 <br /> <br /> <br /> <br />(64) <br /> <br />NOTE 10 INTERFUND RECEIVABLES/PAYABLES, LOANS AND TRANSFERS (CONTINUED) <br />Interfund transfers allow the City to allocate financial resources to the funds that receive <br />benefit from services provided by another fund. All of the 2018 transfers are considered <br />routine and consistent with previous practice and policies. <br /> <br />Four interfund loans were approved by the City to provide cash flow for certain <br />improvements within TIF District 6-1, TIF District 7-1, Canabury Square Condominiums HIA, <br />and Economic Development. Amounts due to/from other funds cover deficit cash balances. <br />A summary at December 31, 2018 is as follows: <br /> <br />Interfund Interfund <br />Loan Loan <br />Receivable Payable <br />Major Funds: <br />General Fund 718,024$ -$ <br />Canabury Square Condominiums HIA - 1,115,486 <br />Water/Sewer Equipment Replacement 1,592,981 - <br />Economic Development - 552,896 <br />Nonmajor Funds: <br />TIF #6-1 - 615,218 <br />TIF #7-1 Suite Living - 27,405 <br />Total 2,311,005$ 2,311,005$ <br /> <br /> <br />NOTE 11 TAX ABATEMENTS <br />The City of Little Canada has established a tax abatement program pursuant to Minnesota <br />Statutes, Sections 469.1812 through 469.1815. As part of the City’s program the City enters <br />into agreements through the use of tax increment financing districts under Minnesota <br />Statutes 469.174 to 469.179 (the Tax Increment Act). Under these statutes the City annually <br />abates taxes collected above the district’s base tax capacity which is established during <br />adoption of the tax increment district. These agreements are established to foster economic <br />development and redevelopment through creating jobs, removing blight, and providing <br />affordable housing. <br /> <br />For fiscal year ended December 31, 2018, the City has one agreement established under <br />Minnesota Statutes Section 469.174 to 469.179 in the form of a pay-as-you-go note with an <br />apartment complex. This agreement resulted in property taxes totaling $139,132 being <br />abated in 2018.