05-22-2024 Council Packet - Laserfiche WebLink

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City of Little Canada, Minnesota Notes to the Financial Statements December 31, 2023 Note 5: Defined Contribution Plan The City has City Council members that are covered by the Defined Contribution Plan (DCP), a multiple -employer deferred compensation plan administered by PERA. The DCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes five percent of salary which is matched by the elected official's employer. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2.0 percent of employer contributions and twenty-five hundredths of 1.0 percent (0.25 percent) of the assets in each member's account annually. Total contributions made by the City During the fiscal year 2023 were: Employee Employer Employee Employer Required Rate 890$ 890$ 5.00%5.00%5.00% Contribution Amount Percentage of Covered Payroll The City and council member’s contributions to the DCP plan for the years ending December 31, 2023, 2022 and 2021 were $890, $1,123, and $1,213 respectively. Note 6: 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. For fiscal year ended December 31, 2023, the City has one agreement established under Minnesota Statutes Section 469.174 to 469.179 in the form of a pay-as-you-go note with an apartment complex. This agreement resulted in property taxes totaling $97,821 being abated in 2023. 82