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<br />
<br />City of Little Canada, Minnesota
<br />Notes to the Financial Statements
<br />December 31, 2024
<br />
<br />Note 5: Defined Contribution Plan
<br />
<br />The City has City Council members that are covered by the Defined Contribution Plan (DCP), a multiple-employer deferred
<br />compensation plan administered by PERA. The DCP is a tax qualified plan under Section 401(a) of the Internal Revenue
<br />Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal.
<br />
<br />Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses.
<br />
<br />Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates
<br />for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes
<br />five percent of salary which is matched by the elected official's employer. Employer contributions for volunteer personnel
<br />may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make
<br />member contributions in an amount not to exceed the employer share. Employer and employee contributions are
<br />combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment
<br />Fund. For administering the plan, PERA receives 2.0 percent of employer contributions and twenty-five hundredths of 1.0
<br />percent (0.25 percent) of the assets in each member's account annually.
<br />
<br />Total contributions made by the City During the fiscal year 2024 were:
<br />
<br />Employee Employer Employee Employer Required Rate
<br />878$ 878$ 5.00%5.00%5.00%
<br />Contribution Amount
<br />Percentage of
<br />Covered Payroll
<br /> The City and council member’s contributions to the DCP plan for the years ending December 31, 2024, 2023 and 2022
<br />were $878, $890, and $1,213 respectively.
<br />
<br />Note 6: Tax Abatements
<br />
<br />The City of Little Canada has established a tax abatement program pursuant to Minnesota Statutes, Sections 469.1812
<br />through 469.1815. As part of the City’s program the City enters into agreements through the use of tax increment
<br />financing districts under Minnesota Statutes 469.174 to 469.179 (the Tax Increment Act). Under these statutes the City
<br />annually abates taxes collected above the district’s base tax capacity which is established during adoption of the tax
<br />increment district. These agreements are established to foster economic development and redevelopment through
<br />creating jobs, removing blight, and providing affordable housing.
<br />
<br />Note 7: Adjustments to and Restatements of Beginning Balances
<br />
<br />During fiscal year 2024, changes to or within the financial reporting entity resulted in adjustments to and restatements of
<br />beginning net position and fund net position, as follows:
<br />
<br />General
<br />Infrastructure
<br />CIP
<br />General Capital
<br />Improvements
<br />Economic
<br />Development
<br />Fire Equipment
<br />Replacement
<br />Nonmajor
<br />Governmental Totals
<br />January 1, 2024 as previously reported 4,629,504$ 1,676,522$ 2,883,337$ -$ -$ 10,078,082$ 19,267,445$
<br />Change in reporting entity
<br />Change from nonmajor to major fund - - - 826,376 2,142,978 (2,969,354) -
<br />January 1, 2024, as adjusted or restated 4,629,504$ 1,676,522$ 2,883,337$ 826,376$ 2,142,978$ 7,108,728$ 19,267,445$ Change within Major and Nonmajor Fund Reporting
<br />
<br />During fiscal year 2024, the Economic Development fund and Fire Equipment Replacement fund were determined to be
<br />major. The effects of the changes within the financial reporting entity are shown in the table above.
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