City Council Meeting Date: August 5, 2019
To: Mayor and City Council
City Administrator
From: Brenda Angelstad, Finance Director
Title
Consider Resolution to authorize Budget Amendment to transfer repair cost for the Northfield Outdoor Pool (Old Memorial Field) Pool Repair Project from the Insurance Fund to the Park Fund.
Body
Action Requested:
The Northfield City Council approves the attached Resolution authorizing a Budget Amendment for the Pool Repair Project to transfer $190,000 from the Insurance Fund #705 to the Park Fund #451.
* Note: This requires a super majority vote of the Council for approval (5 of 7).
Summary Report:
On March 19, 2019 the Council approved a resolution authorizing a Budget Amendment to transfer $190,000 from the Park Fund to the General Fund to cover the cost of repairs at the Old Memorial Pool. A leak at the pool related to a broken pipe was identified in 2018 and repaired in 2019, at a cost of approximately $190,000. The Staff memo and resolution from March 19, 2019 are included.
City staff has submitted a claim to the League of Minnesota Cities Insurance Trust (LCMIT) related to this repair. The amount to be reimbursed has not yet been determined. However, when the case is finalized and LCMIT makes an insurance claim payment to the City of Northfield, the payment will be received into the Insurance Fund. Therefore, the cost of the repair should also be recognized in the Insurance Fund and therefore, the budget amendment would transfer the cost of the repair from the Park Fund to the Insurance Fund. In March, it was the original intent to reimburse the Park Fund with any insurance reimbursement.
Financial Impacts:
This transfer will increase the Park Fund by $190,000, to restore the fund balance to it's original balance prior to the March transfer for the pool repair.
This transfer will reduce the Insurance Fund by $190,000, but will be partially offset by the LCMIT reimbursement amount when received. Amoun...
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