Laserfiche WebLink
CITY OF LITTLE CANADA, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2022 <br /> <br /> <br /> <br />(65) <br />NOTE 15 FUND BALANCES (CONTINUED) <br /> <br />B. Fund Balance Policy <br />The City Council has formally adopted a policy regarding the minimum unassigned fund <br />balance for the General Fund. The most significant revenue source of the General Fund <br />is property taxes. This revenue source is received in two installments during the year – <br />June and December. As such, it is the City’s goal to begin each fiscal year with sufficient <br />working capital to fund operations between each semi-annual receipt of property taxes. <br /> <br />The policy establishes a year-end targeted unassigned fund balance amount for cash- <br />flow timing needs in the range of 42.5-65% of the subsequent year’s budgeted <br />expenditures. At December 31, 2022, the unassigned fund balance of the General Fund <br />was 62.6% of the subsequent year’s budgeted expenditures. A large portion of the fund <br />balance is in the form of nonspendable advances to other funds. <br /> <br />NOTE 16 STEWARDSHIP AND ACCOUNTABILITY <br />At December 31, 2022, individual funds with deficit fund balances/net position are as <br />follows: <br /> <br />Fund Amounts <br />Nonmajor Governmental Funds: <br />Canabury Condos Notes (2,546)$ Future special assessment payments <br />TIF #6-1 (363,097) <br />TIF #7-3 (18,230) Future TIF Revenue <br />The deficit fund balances will be resolved through <br />Future TIF Revenue <br /> <br /> <br />NOTE 17 CONDUIT DEBT OBLIGATIONS <br />The City has issued Industrial Revenue Bonds to provide financial assistance to private- <br />sector entities for the acquisition and construction of industrial and commercial facilities <br />which are deemed to be in the public interest. The bonds are secured by the property <br />financed and are payable solely from payments on the underlying mortgage loans. Upon <br />repayment of the bonds, ownership of the acquired facilities transfers to the private sector <br />entity served by the bond issue. The City is not obligated in any manner for the repayment <br />of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying <br />financial statements. As of December 31, 2022, ten series of industrial revenue bonds, two <br />series of educational facilities revenue bonds, one series of community service revenue <br />bonds, and two senior housing revenue-refunding bonds were outstanding. The aggregate <br />principal amount payable for the fifteen series could not be determined; however, their <br />original issue amounts totaled $85,558,947.