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CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31. 2011 B. MINIMUM UNASSIGNED FUND BALANCE POLICY The City Council has formally adopted a policy regarding the minimum unassigned fund balance for the General Fund. The most significant revenue source of the General Fund is property taxes. This revenue source is received in two installments during the year — June and December. As such, it is the City's goal to begin each fiscal year with sufficient working capital to fund operations between each semi-annual receipt of property taxes. The policy establishes a year-end targeted unassigned fund balance amount for cash-flow timing needs in the range of 30-35% of the subsequent year's budgeted operating expenditures (net of expenditures for police services to other cities). At December 31, 2011, the unassigned fund balance of the General Fund was 36.88% of the subsequent year's budgeted expenditures. Note 13 CONDUIT DEBT OBLIGATION From time to time, the City has issued Multi -family Housing Revenue Bonds to provide financial assistance to private -sector entities for the acquisition and construction of rental housing deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private -sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2011, there were six series of Multi -family Housing Revenue Bonds outstanding. The aggregate issued amount was $54,735,000, including two 1996 issues totaling $7,200,000, a 2002 issue of $7,775,000 and three 2004 issues of $39,760,000. The balance outstanding at December 31, 2011 is unavailable. Note 14 PUBLIC FACILITIES LEASE In 2003 the City, via the Housing and Redevelopment Authority (HRA), issued $5,530,000 of Public Facilities Lease Revenue Bonds. Proceeds from these bonds were utilized to finance the renovation of public works facilities and construction of a new fire station/hall. Bond proceeds were placed into an escrow account. The City received reimbursement from the trustee as costs are incurred by the City. To assist in financing the project the City transferred $157,000 from its Water and Sewer Fund in 2003. 78