05-11-2022 Council Packet - Laserfiche WebLink

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CITY OF LITTLE CANADA, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2021 NOTE 9 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) The City has determined the liability resulting from an implicit rate subsidy is not material and, therefore, not included in these financial statements. NOTE 10 INTERFUND RECEIVABLES/PAYABLES, LOANS AND TRANSFERS The City had the following interfund transfers: Transfers In Transfers Out General Fund General Capital Improvement Water/Sewer Equipment Replacement Other Governmental Funds Total General Fund $ - $900,000 $ - $ - $900,000 Infrastructure CIP - 8,867 - - 8,867 TIF 6-1 Masterpiece 1,653 - - - 1,653 Water/Sewer Equip. Replace. - - - $228,825 228,825 Other Governmental Funds 113,300 - - 147,153 260,453 Water Proprietary Fund - - 200,000 - 200,000 Sewer Proprietary Fund - - 100,000 - 100,000 Total $114,953 $908,867 $300,000 $375,978 $1,699,798 Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services provided by another fund. All of the 2021 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, Canabury Condominiums HIA, and Economic Development. Amounts due to/from other funds cover deficit cash balances. A summary at December 31, 2021 is as follows: Fund Interfund Loan Receivable Interfund Loan Payable General Fund $496,985 $ - Economic Development - 56,871 Canabury Square Condo. HIA - 250,895 TIF 6-1 Masterpiece - 440,114 Water/Sewer Equip. Replace. 257,312 - Nonmajor Funds 8,049 14,466 Total $762,346 $762,346 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. 72