HomeMy WebLinkAbout4.C. Authorize Inter-Fund Transfers and Fund Closures as Detialed in Annual Audit for 2013General Business
4. C.
SI- AKC)PEE
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Julie Linnihan, Finance Director /City Clerk
DATE: 04/29/2014
SUBJECT: Authorize Inter -fund Transfers and Fund Closures as Detailed in Annual Audit for 2013 (C)
Action Sought
Request Council approval for the Inter -fund transfer and fund closures, as outlined below.
Background
Each year, following the field work that is conducted for the City annual audit process, the fund balance position of
the General Fund is reviewed and an annual transfer is presented to the City Council for approval. This transfer is
based on the Fund Balance Policy, which defines a level of the fund balance position. The annual fund transfer will
follow the historical flow of annual transfer by funding the following:
• Capital Improvement Fund (4021), in the amount of $2,300,000
• 2004A Debt Service Fund (3034) in the amount of $100,000
• 2004C Debt Service Fund (3036) in the amount of $100,000
• 2008A Debt Service Fund (3041) in the amount of $150,000
• 2010A Debt Service Fund (3042) in the amount of $150,000
• Park Asset Internal Service Fund (7805) in the amount of $50,000
• Information Technology Internal Service Fund, (7806) in the amount of $200,000
The total of this transfer is $3,050,000. This fund transfer is completed annually following the final audit review
and has allowed for funding of Capital Project Fund activity. The ending cash position for 2013 for the Capital
Improvement Fund is approximately $6.6 million dollars. This transfer also allows for needed funding for non
levied debt service funds.
The IT fund and the Park Asset funds are relatively new funds to the City. These transfers provide a needed cash
flow as the demands on these funds continue to grow.
Another action requested of the Council is the closure of specific completed capital project funds. For year end
2013, the following funds will need to be closed due to no planned future activity:
. 2011 Project Fund (4069) close out transfer of $388,838 to the Capital Improvement Project fund (402 1)
. 2010 Project Fund (4067) close out transfer of $130,435 from the Capital Improvement Project fund (402 1)
. 2011 Fire Station 2 project (4068) close out transfer $111,536 from the Capital Improvement Project fund
(4021)
The net impact to the Capital Improvement Fund, 4021, in closing these close funds to the CIP results in an increase
of $146,867. Historically as capital project funds have closed, they are merged to the main Capital Improvement
Fund (4021).
Recommendation
Staff recommends the transfer of the General fund fund balance to the defined funds as well as closure of the funds
listed above.
Budget Impact
Year end fund balance transfers are not budgeted but will impact the cash positions and fund balance positions of
the funds, as listed.
Relationship to Vision
(F) Housekeeping Item
Requested Action
Move to approve of the fund transfers and year end fund closures.
Attachments: