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<br />NOTE 5 – FUND BALANCES
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<br />A. Classifications
<br />
<br />At December 31, 2018, 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 25,482$ –$ –$ –$ 214$ 25,696$
<br />Restricted for
<br />Tax increment purposes – – – – 747,898 747,898
<br />Cable TV – – – – 262,623 262,623
<br />Total restricted – – – – 1,010,521 1,010,521
<br />Committed for
<br />Economic development authority – 508,241 – – – 508,241
<br />Assigned for
<br />Compensated absences 75,835 – – – – 75,835
<br />Subsequent year’s budget 186,970 – – – – 186,970
<br />Capital improvements – – 216,902 2,656,977 – 2,873,879
<br />Total assigned 262,805 – 216,902 2,656,977 – 3,136,684
<br />Unassigned 3,052,082 – – – (189,404) 2,862,678
<br />Total 3,340,369$ 508,241$ 216,902$ 2,656,977$ 821,331$ 7,543,820$
<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, 2018, the unassigned fund balance of the General Fund was 60.3 percent of the subsequent
<br />year’s budgeted expenditures.
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<br />NOTE 6 – DEFINED BENEFIT PENSION PLAN – STATE-WIDE
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<br />A. Plan Description
<br />
<br />The City participates in the following cost-sharing, multiple-employer defined benefit pension plan
<br />administered by the PERA of Minnesota. The PERA’s defined benefit pension plan is established and
<br />administered in accordance with Minnesota Statutes, Chapters 353 and 356. The PERA’s defined benefit
<br />pension plan is a tax qualified plan 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 the Coordinated Plan. Coordinated Plan members are covered by Social Security.
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