1996 CAFR - Laserfiche WebLink

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FINANCIAL SECTION (continued) General Fund (continued) Debt Service increased $46,833 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 construction of the new Police Department facility. The costs for Capital Outlay decreased by $149,825. This significant decrease 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 taking place in 1995. Costs in this account are 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 increased significantly from the previous year. The increase of $439,740 is due primarily to the construction of the new Police Department facility which required a $600,000 interfund loan. In 1994, the City implemented a policy that 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. To facilitate this policy $58,009 was transferred in from the respective funds. 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 fmancing 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 fmance improvements in the districts and to directly fund additional projects within the district boundaries. The fund balance as of December 31, 1996 was $1,790,739, which represents an increase of $314,201 from December 31, 1995. 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, 1996 was $545,514, compared to $532,724 on December 31, 1995. 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. %1.1