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<br />NOTE 5 – FUND BALANCES
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<br />A. Classifications
<br />
<br />At December 31, 2020, a summary of the City’s governmental fund balance classifications are as follows:
<br />
<br />Permanent Other
<br />Improvement Governmental
<br />General Revolving Funds Total
<br />Nonspendable
<br />Prepaid items 28,782$ –$ 3,680$ 32,462$
<br />Restricted for
<br />Tax increment purposes – – 1,021,370 1,021,370
<br />Cable TV – – 116,370 116,370
<br />Total restricted – – 1,137,740 1,137,740
<br />Committed for
<br />Economic development authority – – 619,013 619,013
<br />Assigned for
<br />Compensated absences 105,747 – – 105,747
<br />Subsequent year’s budget 90,720 – – 90,720
<br />Capital improvements – 4,928,470 461,581 5,390,051
<br />Park improvements – – 246,917 246,917
<br />Public safety capital equipment – – 125,624 125,624
<br />Total assigned 196,467 4,928,470 834,122 5,959,059
<br />Unassigned 3,155,257 – (230,101) 2,925,156
<br />Total 3,380,506$ 4,928,470$ 2,364,454$ 10,673,430$
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<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, 2020, the unassigned fund balance of the General Fund was 60.5 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)
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<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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