|
<br />-38-
<br />NOTE 5 – FUND BALANCES
<br />
<br />A. Classifications
<br />
<br />At December 31, 2017, a summary of the City’s governmental fund balance classifications are as
<br />follows:
<br />
<br />Equipment,Permanent Other
<br />EDA Building, and Improvement Governmental
<br />General Operating Replacement Revolving Funds Total
<br />Nonspendable
<br />Prepaid items 288,519$ 450$ –$ –$ 214$ 289,183$
<br />Restricted for
<br />Tax increment purposes – – – – 616,829 616,829
<br />Cable TV – – – – 281,910 281,910
<br />Total restricted – – – – 898,739 898,739
<br />Committed for
<br />Economic development authority – 302,608 – – 169,388 471,996
<br />Assigned for
<br />Compensated absences 48,323 – – – – 48,323
<br />Subsequent year’s budget 237,225 – – – – 237,225
<br />Capital improvements – – – 6,080,457 – 6,080,457
<br />Public safety capital equipment – – – – 57,936 57,936
<br />Total assigned 285,548 – – 6,080,457 57,936 6,423,941
<br />Unassigned 3,065,250 – (259,269) – (179,878) 2,626,103
<br />Total 3,639,317$ 303,058$ (259,269)$ 6,080,457$ 946,399$ 10,709,962$
<br />
<br />B. Minimum Unassigned Fund Balance Policy
<br />
<br />The City Council has formally adopted a fund balance policy regarding the minimum unassigned fund
<br />balance for the General Fund. The policy establishes the City will strive to maintain an unassigned
<br />General Fund balance of 50.0 percent of the subsequent year’s General Fund budgeted expenditures. At
<br />December 31, 2017, the unassigned fund balance of the General Fund was 64.4 percent of the subsequent
<br />year’s budgeted expenditures.
<br />
<br />
<br />NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE
<br />
<br />A. Plan Description
<br />
<br />The City participates in the following cost-sharing, multiple-employer defined benefit pension plans
<br />administered by the PERA of Minnesota. The PERA’s defined benefit pension plans are established and
<br />administered in accordance with Minnesota Statutes, Chapters 353 and 356. The PERA’s defined benefit
<br />pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code.
<br />
<br />General Employees Retirement Fund (GERF)
<br />
<br />All full-time and certain part-time employees of the City are covered by the GERF. The GERF
<br />members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
<br />covered by Social Security and Basic Plan members are not. The Basic Plan was closed to new
<br />members in 1967. All new members must participate in the Coordinated Plan.
|