1995 CAFR - Laserfiche WebLink

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FINANCIAL SECTION (continued) General Fund (continued) Debt Service increased $18,600 over the previous year which is representative of the first year costs of the inter - fund loan between the General Fund and the Landfill Trust Fund for the refurbishment of the new Public Works facility. The costs for Capital Outlay increased by $262,815. This significant increase is caused in part by an overall upgrade to the City's computer system, the replacement of police vehicles, and the replacement of several major pieces of heavy equipment. A portion of this increase is also offset by transfers in from the Equipment Replacement Fund for those capital items that had funding available for replacement purposes. Transfers to Other Funds were reduced significantly from the previous year. The decrease of $212,899 is a direct result of 1994 being the first year that the City's Fund Balance and Excess Revenue Policy was applied. Prior to 1994, excess balances were maintained in the General Fund as undesignated. The policy now requires that any amounts above 60% of the next years operating budget be transferred out to several funds. In the event of a shortage in the General Fund fund balance at year end, those same funds would be required to transfer monies back to the General Fund accordingly. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally or otherwise restricted to expenditures for specific purposes. Tax Increment Fund: The Tax Increment Fund is utilized to account for general property taxes received in the form of tax increments levied on properties located within the tax increment financing districts. Activity in this fund will increase in future years as increments are generated from development. The increments are used to retire debt issued to finance improvements in the districts and to directly fund additional projects within the district boundaries. The fund balance as of December 31, 1995 was $1,476,538, which represents a decrease of $269,170 from December 31, 1994. Landfill Tipping Fee Fund: The Landfill Tipping Fee Fund was established to account for landfill tipping fees collected by the City and expenditures as authorized by Minnesota Statute Section 115A.921 for mitigating and compensating for the local risks, costs and other adverse effects of the landfill located within the City. The landfill closed permanently during 1993, so funding from tipping fees will no longer take place. Future expenditures from this fund will be limited to the interest earned by the fund in any given year. The fund balance as of December 31, 1995 was $532,724, compared to $515,301 on December 31, 1994. Landfill Abatement Fund: The Landfill Abatement Fund is used to account for landfill abatement activities and efforts. The funding sources consist mainly of interfund transfers and interest earnings. xi