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CITY OF LITTLE CANADA, MINNESOTA
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />DECEMBER 31, 2018
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<br />
<br />
<br />(66)
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<br />NOTE 14 FUND BALANCES
<br />A. Classifications
<br />A summary of the governmental fund balance classifications at December 31, 2018 is as
<br />follows:
<br />
<br />Nonspendable Restricted Committed Assigned Unassigned Total
<br />General Fund: -$ -$ -$ -$ 1,992,378$ 1,992,378$
<br />Prepaid Items 8,769 - - - - 8,769
<br />Advances to Other Funds 718,024 - - - - 718,024
<br />Total General Fund 726,793 - - - 1,992,378 2,719,171
<br />Canabury Square Condominiums HIA - - - - (1,058,508) (1,058,508)
<br />Rice/LC Road Development:
<br />Tax Increment - 1,837,938 - - - 1,837,938
<br />Water/Sewer Equipment Replacement:
<br />Advances to Other Funds - - - 1,592,981 - 1,592,981
<br />Capital Improvements - - - 821,434 - 821,434
<br />Infrastructure CIP:
<br />Capital Improvements - - - 2,440,050 - 2,440,050
<br />Economic Development - - - - (493,365) (493,365)
<br />Total Other Major Funds - 1,837,938 - 4,854,465 (1,551,873) 5,140,530
<br />Nonmajor Funds:
<br />Prepaid Items 2,440 - - - - 2,440
<br />Debt Service - 90,026 - - - 90,026
<br />Tax Increment - 1,511,413 - - - 1,511,413
<br />Fire Equipment - 281,329 - - - 281,329
<br />Park Acquisition - 876,459 - - - 876,459
<br />Charitable Gambling - 38,295 - - - 38,295
<br />Cable - - 449,533 - - 449,533
<br />Parks and Recreation - - 41,216 - - 41,216
<br />Recycling - - 197,051 - - 197,051
<br />Park Acquisition - - - 303,951 - 303,951
<br />Fire Equipment - - - 651,407 - 651,407
<br />Redevelopment - - - 389,822 - 389,822
<br />Capital Improvements - - - 1,898,814 - 1,898,814
<br />Deficit Fund Balance - - - - (754,259) (754,259)
<br />Total Nonmajor Funds 2,440 2,797,522 687,800 3,243,994 (754,259) 5,977,497
<br />Total Fund Balances Governmental Funds 729,233$ 4,635,460$ 687,800$ 8,098,459$ (313,754)$ 13,837,198$
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<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, 2018, the unassigned fund balance of the General Fund
<br />was 50.93% 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.
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