06-10-2020 Council Packet - Laserfiche WebLink

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CITY OF LITTLE CANADA, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 10 INTERFUND RECEIVABLES/PAYABLES, LOANS AND TRANSFERS (CONTINUED) Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services provided by another fund. All of the 2019 transfers are considered routine and consistent with previous practice and policies. Four interfund loans were approved by the City to provide cash flow for certain improvements within TIF District 6-1, TIF District 7-1, TIF District 7-2, Canabury Square Condominiums HIA, and Economic Development. Amounts due to/from other funds cover deficit cash balances. A summary at December 31, 2019 is as follows: Fund Interfund Loan Receivable Interfund Loan Payable General Fund $761,178 $ - Economic Development - 654,645 Canabury Square Condo. HIA - 860,311 Water/Sewer Equip. Replace. 1,342,881 - Nonmajor Funds - 589,103 Total $2,104,059 $2,104,059 NOTE 11 TAX ABATEMENTS The City of Little Canada has established a tax abatement program pursuant to Minnesota Statutes, Sections 469.1812 through 469.1815. As part of the City’s program the City enters into agreements through the use of tax increment financing districts under Minnesota Statutes 469.174 to 469.179 (the Tax Increment Act). Under these statutes the City annually abates taxes collected above the district’s base tax capacity which is established during adoption of the tax increment district. These agreements are established to foster economic development and redevelopment through creating jobs, removing blight, and providing affordable housing. For fiscal year ended December 31, 2019, the City has one agreement established under Minnesota Statutes Section 469.174 to 469.179 in the form of a pay-as-you-go note with an apartment complex. This agreement resulted in property taxes totaling $156,790 being abated in 2019. 72