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Home My WebLink About4.F.3. Approval of Inter-fund Transfers Consent Business 4. F. 3. SHAKOPEE TO: Mayor and City Council FROM: Jean McGann, Interim Finance Director DATE: 05/19/2015 SUBJECT: Approval of Inter-Fund Transfers (F) Action Sought The Council is asked to authorize the inter-fund transfers outlined below. Background Each year, following the field work that is conducted for the City's annual audit process, the fund balance position of the General Fund is reviewed and, if it exceeds the targeted General Fund Balance of 45% of expenditures, a transfer of funds is recommended to the City Council. As of December 31, 2014, the City's General Fund balance was $11,480,743. The target fund balance, based on 45% of expenditures, is $9,838,046. The $1,642,697 difference between the actual and targeted amounts is recommended for transfer. In recent years, this excess fund balance has been transferred to various debt service and capital improvement funds. This has allowed the City to reduce the number and amount of debt service levies needed as part of the following year's budget and to fund certain capital improvements with cash, thereby reducing the need to take on new debt. A similar allocation of these funds is recommended for 2014. The following is a listing of the transfers approved at the close of 2013 and the recommended transfers for 2014. FUND 2013 2014 TRANSFER RECOMMENDATION Debt Service Funds $500,000: $432,697 Capital Improvement Fund $2,300,0001L $1,000,000 Park Asset Fund $50,000! $210,000 FIT Fund I $200,000 $0 I TOTAL] $3,050,0001 $1,642,697 The $432,697 recommended for transfer to debt service funds would be specifically allocated as follows: CO# 1FUND AMOUNT 304[ dj007B GO Bond $135,000 3041 2008A GO Bond $160,000 3042 12010A GO Bond $100,000 3043II2012A Refunding $37,697 aL.w l SUBTOTAL FOR DEBT SERVICE! $432,697 Recommendation I recommend the transfer of General Fund balance to the defined funds as outlined above. Relationship to Vision This item relates to Goal C: Maintain the City's strong financial health. Requested Action If the Council concurs, it is asked to authorize the inter-fund transfer of$1,642,697 from the General Fund to the various funds outlined above.