City Council Meeting Date: March 20, 2018
To: Mayor and City Council
From: Ben Martig, City Administrator
Teresa Jensen, Director of Library and IT Services
Brenda Angelstad, Finance Director
Title
Consideration of a Resolution to Close the Library Capital Project Fund #462 and Authorize an Interfund Transfer and Budget Amendment
Body
Action Requested:
The Northfield City Council approves the attached Resolution to close the Library Renovation Project Capital Fund 462 and authorize an interfund transfer and budget amendment.
Summary Report:
Staff is recommending Council authorize to close the temporary Library Project Fund 462 as the activity is complete and is appropriate to close the account. The fund has a negative balance of $177,017. The closure of the fund requires transfer of funds to create a zero balance within the fund. See the "financial impact" section of this memo for a description of the use of excess general fund undesignated reserves for this purpose as well as a summary of project costs and sources of funds.
The negative balance is a result of two primary factors: a) $41,442 of additional engineering and legal expenses allocated to the project; and b) $135,575 less in donations than had been planned within the project budget. The original commitment from the Friends and Foundation of the Northfield Public Library (FFNPL) totaled $402,680; their eventual commitment to the project was $1,045,897, which, when added to the Bunday Gift Fund, totaled $1,345,897 in private donations. The FFNPL actual fundraising for the project equaled $910,322, which represents a donation shortfall of $135,575.
Alternative Options:
Accounting standards dictate that temporary project funds - like this one - should be closed within a reasonable time frame of completion. While the closure could occur in the 2018 year, the Finance Director, in consultation with the City Auditor, believes it would be preferable administratively to close the project based on th...
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