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CITY OF LITTLE CANADA, MINNESOTA
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />DECEMBER 31, 2019
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<br />NOTE 14 FUND BALANCES
<br />A. Classifications
<br />A summary of the governmental fund balance classifications at December 31, 2019 is as follows:
<br /> Nonspendable Restricted Committed Assigned Unassigned Total
<br />General Fund: $ - $ - $ - $ - $ 2,210,615 $ 2,210,615 Prepaid items 10,807 - - - - 10,807
<br />Advances to other funds 761,178 - - - - 761,178
<br />Strategic plan initiatives - - - 78,870 - 78,870
<br />COVID-19 - - - 60,000 - 60,000
<br /> Total General Fund 771,985 - - 138,870 2,210,615 3,121,470
<br />Economic Development - - - - (589,698) (589,698) Canabury Square Condo. HIA - - - - (817,650) (817,650)
<br />General Capital Improvement: Capital improvements - 78,000 - 1,585,637 - 1,663,637
<br />Rice/LC Road Road Development: Tax increment - 529,169 - - - 529,169
<br />Infrastructure CIP:
<br /> Capital improvements - - - 3,474,818 - 3,474,818
<br />Water/Sewer Equip. Replacement:
<br /> Advances to other funds - - - 1,342,881 - 1,342,881
<br /> Capital improvements - - - 690,887 - 690,887
<br /> Total Other Major Funds - 607,169 - 7,094,223 (1,407,348) 6,294,044
<br />Nonmajor Governmental Funds: Charitable gambling - 63,147 - - - 63,147
<br />Park acquisition - 878,053 - - - 878,053
<br />Debt retirement - 89,434 - - - 89,434
<br />Fire equipment - 255,445 - - - 255,445
<br />Tax increment purposes - 1,694,860 - - - 1,694,860
<br />Parks and recreation - - 42,265 - - 42,265
<br />Cable - - 476,402 - - 476,402
<br />Recycling - - 188,152 - - 188,152
<br />Park acquisition - - - 343,867 - 343,867
<br />Fire equipment - - - 840,283 - 840,283
<br />Redevelopment - - - 341,544 - 341,544
<br />Deficit Fund Balance - - - - (589,103) (589,103)
<br /> Total Nonmajor Funds - 2,980,939 706,819 1,525,694 (589,103) 4,624,349
<br />Total Fund Balances Governmental Funds $ 771,985 $ 3,588,108 $ 706,819 $ 8,758,787 $ 214,164 $ 14,039,863
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<br />B. Fund Balance Policy
<br />The City Council has formally adopted a policy regarding the minimum unassigned fund balance
<br />for the General Fund. The most significant revenue source of the General Fund is property taxes.
<br />This revenue source is received in two installments during the year – June and December. As such,
<br />it is the City’s goal to begin each fiscal year with sufficient working capital to fund operations
<br />between each semi-annual receipt of property taxes.
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<br />The policy establishes a year-end targeted unassigned fund balance amount for cash-flow timing
<br />needs in the range of 42.5-65% of the subsequent year’s budgeted expenditures. At December 31,
<br />2019, the unassigned fund balance of the General Fund was 53.46% of the subsequent year’s
<br />budgeted expenditures. A large portion of the fund balance is in the form of nonspendable advances
<br />to other funds.
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