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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 14 FUND BALANCES
<br />A. Classifications
<br />A summary of the governmental fund balance classifications at December 31, 2020 is as follows:
<br /> Nonspendable Restricted Committed Assigned Unassigned Total
<br />General Fund: $ - $ - $ - $ - $ 2,682,015 $ 2,682,015 Prepaid items 2,381 - - - - 2,381
<br />Advances to other funds 554,019 - - - - 554,019
<br />Strategic plan initiatives - - - 38,500 - 38,500
<br />2021 budget adjustments - - - 110,983 - 110,983
<br />COVID-19 - - - 670,000 - 670,000
<br /> Total General Fund 556,400 - - 819,483 2,682,015 4,057,898
<br />Economic Development - - 13,420 - - 13,420 Canabury Square Condo. HIA - - - - (549,835) (549,835)
<br />General Capital Improvement: Capital improvements - 78,000 - 1,881,864 - 1,959,864
<br />Infrastructure CIP:
<br /> Capital improvements - - - 3,004,682 - 3,004,682
<br />TIF 6-1 - - - - (497,921) (497,921)
<br />Owasso/Woodlyn Redevelopment Area
<br /> Capital improvements - - - 672,618 - 672,618
<br />Water/Sewer Equip. Replacement:
<br /> Advances to other funds - - - 600,423 - 600,423
<br /> Capital improvements - - - 1,291,293 - 1,291,293
<br /> Total Other Major Funds - 78,000 13,420 7,450,880 (1,047,756) 6,494,544
<br />Nonmajor Governmental Funds: Charitable gambling - 102,033 - - - 102,033
<br />Park acquisition - 877,853 - - - 877,853
<br />Debt retirement - 82,931 - - - 82,931
<br />Fire equipment - 253,053 - - - 253,053
<br />Tax increment purposes - 1,942,584 - - - 1,942,584
<br />Parks and recreation - - 37,841 - - 37,841
<br />Cable - - 491,911 - - 491,911
<br />Recycling - - 175,307 - - 175,307
<br />Park acquisition - - - 376,032 - 376,032
<br />Fire equipment - - - 1,030,399 - 1,030,399
<br />Redevelopment - - - 29,632 - 29,632
<br />Deficit Fund Balance - - - - (17,500) (17,500)
<br /> Total Nonmajor Funds - 3,258,454 705,059 1,436,063 (17,500) 5,382,076
<br />Total Fund Balances Governmental Funds $ 556,400 $ 3,336,454 $ 718,479 $ 9,706,426
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<br />$ 1,616,759
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<br />$ 15,934,518
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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 />2020, the unassigned fund balance of the General Fund was 63.55% 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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