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CITY OF RAMSEY, MINNESOTA <br />' NOTES TO FINANCIAL STATEMENTS <br />December 31,1996 <br />Note 13. FLEXIBLE BENEFIT PLAN (continued) <br />The City serves as trustee and handles all plan record keeping. The plan is included in the financial statements as <br />an Expendable Trust Fund. <br />All plan property and income attributable to that property is solely the property of the City, subject to the claims <br />' of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the <br />City in an amount equal to eligible expenses incurred by the participants. The City believes that it is unlikely that <br />it will use the assets to satisfy the claims of general creditor's in the future. <br />Note 14. RESERVES AND DESIGNATED FUND EQUITY <br />The following reservations of fund equity have been made at December 31, 1996: <br />General Fund - <br />' Fund balance reserved for prepaid items $ 24,083 <br />Water Utility Fund- <br />' Contributed capital reserved for future construction $ 2,133,754 <br />Sewer Utility Fund- <br />' Contributed capital reserved for future construction $ 540,148 <br />The General Fund reservation for prepaid items is made because prepayments, which are included in other assets, <br />are not current financial resources. <br />The Water and Sewer Fund reservations are for future construction and is from assessments for elevated water <br />storage and future oversizing of water and sewer lines. <br />' The following designations of unreserved fund equity have been made at December 31, 1996: <br /> General Fund - <br /> Compensated absences $ 192,752 <br /> Working capital 1,600,302 <br />' $ 1,793,054 <br /> Debt Service Funds - <br /> <br />' Debt service $ 654,867 <br /> Capital Project Funds - <br /> 1997 Street Maintenance Program $ 171,511 <br />' <br /> General Fund - <br />Compensated absences designation for $192,752 represents the estimated long-term liability for <br />compensated absences. <br />' Working capital designation for $1,600,302 provides for cash flow needs based on an amount equal to <br />50% of the General Fund budgeted operating expenditures for the upcoming year less amounts reserved <br />for prepaid items. <br />-28- <br />