City Council Meeting Date: June 5, 2018
To: Mayor and City Council
City Administrator
From: Brenda Angelstad, Finance Director
Title
Resolution 2018-064 - Close the 2015 and 2016 Capital Projects Funds, Transit Fund, Community Resource Center and 1992 TIF Bond Funds and Authorize Interfund Transfers
Body
Action Requested:
The Northfield City Council approves the attached resolution related to fund closures and authorizes Interfund transfers.
Summary Report:
In conjunction with the 2017 year-end audit, the Finance Department would like to “clean up” the books consistent with generally accepted accounting principles, and the start of that is to request council approval to close five funds. This is a common practice to complete closure of project funds during the audit preparation work and to date the effective date at the prior year end so that it may be included in the final year end audit work. The following is the detailed summary for the proposed action related to each fund:
2015 Capital Projects Fund #416
This fund was used for 2015 street projects. There is a positive balance of $165,379 in the fund that were not needed to complete the related improvements. After reviewing bond documents, this amount must be transferred to the 2015A GO Improvement Bond fund #316 upon closing the fund, which is affiliated with the project. The extra funds will be used for future debt payments. This is a standard practice for closure of capital project funds.
2016 Capital Projects Fund #417
This is the street project fund for 2016. There is a positive balance of $209,753 in this fund that were not needed to complete the related improvements. After reviewing bond documents, this amount must be transferred to the 2016C GO Improvement Bond Fund #317 upon closing of the fund, which is affiliated with the project. The extra funds will be used for future debt payments. This is a standard practice for closure of capital project funds.
Community Resource Center Bond Fund #351
This is the fund to pay off the Community Resource Center Bonds. This debt was fully paid in 2017. This fund has a positive balance of $142,724. We are proposing to transfer these funds to the Community Resource Center Fund #211 which is consistent with the source of funds. The City Council will have authority over the future use of these excess reserve funds. The closure of the debt fund once final obligations are met is a standard practice.
Transit Grant Fund #251
This fund was used to fund our bus operations. The busing was transferred to Hiawathaland in 2012. The fund has a negative balance of approximately ($19,175). We are proposing to transfer funds from the General Fund #101 to the Transit Fund #211. Obligations for City contributions for bus replacement has been expensed from the Capital Equipment fund and not from this fund. It is standard practice to close inactive funds.
1992 TIF Debt (2001B) #376
This fund has an approximate fund balance of $635. This debt was paid off in 2013, recommend closing fund and transferring balance to the Capital Reserve Fund #475. The closure of the debt fund once final obligations are met is a standard practice. Assignment to the Capital Reserve fund for infrastructure related improvements upon closure of the debt funds has been the standard practice for the City.
Alternative Options:
No alternatives
Financial Impacts:
Total impact on the General Fund is ($19,175) and on the Capital Reserve Fund is $635.
Tentative Timelines:
Entries will be effective on December 31, 2017.