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CITY OF LITTLE CANADA, MINNESOTA
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />DECEMBER 31, 2020
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<br />NOTE 10 INTERFUND RECEIVABLES/PAYABLES, LOANS AND TRANSFERS
<br />The City had the following interfund transfers:
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<br /> Transfers In
<br />Transfers Out
<br />General
<br />Fund
<br />General
<br />Capital
<br />Improvement
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<br />Infrastructure
<br />CIP
<br />Water/Sewer
<br />Equipment
<br />Replacement
<br />Other
<br />Governmental
<br />Funds Total
<br /> Infrastructure CIP $ - $23,300 $ - $ - $ - $ 23,300
<br /> TIF 6-1 Masterpiece 1,686 - - - - 1,686
<br /> Water/Sewer Equip. Replace. - - - - $226,725 226,725
<br /> Other Governmental Funds 96,879 - 402,292 - 149,703 648,874
<br /> Water Proprietary Fund - - - 200,000 - 200,000
<br /> Sewer Proprietary Fund - - - 100,000 - 100,000
<br />Total $98,565 $23,300 $402,292 $300,000 $376,428 $1,200,585
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<br />Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from
<br />services provided by another fund. All of the 2020 transfers are considered routine and consistent with
<br />previous practice and policies.
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<br />Four interfund loans were approved by the City to provide cash flow for certain improvements within
<br />TIF District 6-1, TIF District 7-1, TIF District 7-2, Canabury Square Condominiums HIA, Canabury
<br />Condominiums HIA, and Economic Development. Amounts due to/from other funds cover deficit cash
<br />balances. A summary at December 31, 2020 is as follows:
<br />Fund
<br />Interfund Loan
<br />Receivable
<br />Interfund
<br />Loan Payable
<br />General Fund $554,019 $ -
<br />Economic Development - 54,713
<br />Canabury Square Condo. HIA - 577,931
<br />TIF 6-1 Masterpiece - 499,306
<br />Water/Sewer Equip. Replace. 600,423 -
<br />Nonmajor Funds 1,347 23,839
<br />Total $1,155,789 $1,155,789
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<br />NOTE 11 TAX ABATEMENTS
<br />The City of Little Canada has established a tax abatement program pursuant to Minnesota Statutes,
<br />Sections 469.1812 through 469.1815. As part of the City’s program the City enters into agreements
<br />through the use of tax increment financing districts under Minnesota Statutes 469.174 to 469.179 (the
<br />Tax Increment Act). Under these statutes the City annually abates taxes collected above the district’s
<br />base tax capacity which is established during adoption of the tax increment district. These agreements
<br />are established to foster economic development and redevelopment through creating jobs, removing
<br />blight, and providing affordable housing.
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<br />For fiscal year ended December 31, 2020, the City has one agreement established under Minnesota
<br />Statutes Section 469.174 to 469.179 in the form of a pay-as-you-go note with an apartment complex.
<br />This agreement resulted in property taxes totaling $161,732 being abated in 2020.
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