HomeMy WebLinkAbout[04j] Transferscrr~ or s'r..ic-~Hrtt
MEETING DATE: February 19, 2009
Council Agenda Item
AGENDA ITEM: Transfers -Requested Action: Authorize the 2008
operating/residual/interfund transfers as presented.
SUBMITTED BY: Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: N/A
PREVIOUS COUNCIL ACTION: None
BACKGROUND INFORMATION: Attached are operating, residual and interfund transfers for reporting
year 2008 to properly report the financial condition of the city at year-end in accordance with Generally
Accepted Accounting Principles (GAAP) and MN State Statutes. The purposes of the transfers are
described are described below:
Operatine Transfers: Transfers between funds to cover operational costs in another fund.
General/Fire Annually the Fire Fund pays the City for Administrative services for the
prior years. Since the City is responsible for managing the Fire Fund,
when the Fire Board was established they agreed to pay for
Administrative Services. The fee was established at 5% of the actual
expenditures less the capital outlay items. For simplicity reasons, the
transfer is completed once a year, after all the expenses have been
recorded.
Equip/2003 Bonds When the Public Works Facility was constructed, the project ran over
budget by $ 41,050.08. To balance the overage, this same amount has
been reduced from the Capital Improvement Plan of the Public Works.
This amount has been coordinated with the Public Works Director. (The
current Public Works Director inherited this overage and found ways to
cover the deficit.)
Gen/Storm Water When the storm water utility was established, it was determined that
annually $ 14,000 would be transferred to the General Fund to pay for
the street sweeping portion of the budget. This amount was not
transferred in 2007 so the transfer at this time is for 2007 and 2008.
Street Sweeping is a cost of storm water as it is a preventative method
of keeping the infrastructure clean.
Residual Transfers: Transfer to close a fund once the use of the fund ends.
Gen/2004 Bond The debt for the 2004 equipment certificates has been satisfied and
there is a balance of $ 10,363.52. Since the purchases of the 2004
Equipment Certificates were general fund in nature, it makes sense to
close this fund into the general fund. This transfer closes the 2004
Equipment Certificate Bond Fund.
2006 Improv When the City established an improvement and bonds are issued, a
construction fund and debt service fund are created. The construction
fund handles all the transaction activity with the exception of the Bond
Payment. The construction fund is a temporary fund until the project is
completed. The bond fund is the actual debt service fund which is
responsible for the debt payments and revenue. This fund remains
open until the debt is satisfied or refinanced. At this time the 2006
project is complete and the construction fund is no longer needed. All
residual funds are transferred to the bond fund. This fund was left open
to finish the sewer issue on CR 121.
Budget Transfers: Transfers to move cash budgeted in one fund into another. The budget transfer
requested is to move back the 2008 CIP budget into the general fund from the general capital
expenditure fund in an effort to recover from losses due to the LGA unallotment in 2008.
Capital/General As discussed at a previous meetings, to help offset the LGA cuts, the
capital portion of the General Fund budget was put back into the
General Fund. This same amount was originally transferred to the
capital fund once the 2008 budget was approved and effective. The
Capital Improvement Fund has been reworked to remove this amount.
Interfund Receivables/Payables: Transfers made to borrow funds between funds. The
receivables/payables are expected to be paid back when the funds are available.
Storm/2003 Bonds When Liberty Pointe was developed, a payment for the undeveloped
outlot was made for storm water. Since the lot was never developed
and they are delinquent on their assessments, a portion is transferred
to the debt service to keep the fund solvent. The City will receive the
assessments, but until that time, funds need to be transferred.
Beaut/Debt Relief The City had not received all the contributions for the beautification
project so internally a loan was established between the debt service
fund and the Beautification projects. As the City receives the donations,
the loan is paid back. During 2008 the City received $ 10,000 from the
St. Joseph Lions Club.
BUDGET/FISCAL IMPACT: $ 79,479.17 -Operating Transfers
$ 263,637.02 -Residual Transfer
$ 180,415.00 -Budget Transfers
$ 77,000 - Interfund Receivables/Payables
ATTACHMENTS: 2008 Year-end Transfers
REQUESTED COUNCIL ACTION: Approve the 2008 operating/residual/interfund transfers as presented.
City of St. Joseph, Minnesota
OperatinylRes idual Transfers -Year End
Requested Februar~; 19 200 (~~~ "(~C~& Flnan~i~~l l'F;ar
Fund Description Amount In Amount Out Purpose
Operating:
101 General Fund 10,429.09 Annual transfer from fire fund to
105 Fire Fund 10,429.09 general fund for administrative services
490 General Capital Equipment Fund 41,050.08 Transfer funds to the PW Building bond fund
329 2003 Pw Building Bonds 41,050.08 to cover the cost overruns of the project
101 General Fund 28,000.00 Annual Transfer for Street Sweeping (2007 and 2008)
651 Storm Water Fund 28,000.00
Residual:
101 General Fund 10,363.52 Close 2004 equip certificate debt fund
307 2004 Equipment Certificates 10,363.52 since the last payment was made on 12-1-08
438 2006 Interior Street Improvements 253,273.50 Close 2006 Interior Street Improvement
338 2006 Interior Street Bonds 253,273.50 construction fund -final payment in March 2008
Budget:
490 General Capital Equipment Fund 180,415.00 Move the 2008 CIP budget back to the
101 General Fund 180,415.00 General fund to cover LGA unallotment.
Interfund Receivables/Pavables:
651 Storm Water Fund 26,000.00 Reallocate storm water fees collected for
328 2003 GO Improvement Bonds 26,000.00 Liberty Pointe to the debt service fund to cover
the debt payments (deficit due to delinquent
special assessments and property taxes)
232 City Beautification -College Ave Fund 10,000.00 Pay back a portion of the interfund loan
390 Debt Service Relief Fund 10,000.00 received in 2007. A $10,000 contribution was
received during 2008 for the street beautification
project.
329 2003 Pw Building Bonds 41,000.00 Remove the interfund loan for the 2003 PW
390 Debt Service Relief Fund 41,000.00 Building expansion bond since the fund was
reimbursed spending overages from the PW CIP.
600,531.19 600,531.19