HomeMy WebLinkAbout4.F.4. Inter-Fund Transfers and Fund Closures , �r. � y
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City of Shakopee
Memorandum ���������
To: Mayor and City Council
Mark McNeill, City Administrator
From: Julie A. Linnihan, Finance Director �
Subject: Inter-Fund Transfers and Fund Closures
Date: March 6 2012
Introduction•
The City Council is asked to consider the approval of the inter-fund transfers for 2011. This action is
requested each year, to transfer the funds per budget, debt service allocations, and distribution of funds
to Capital Improvement Projects, per previous budget discussions.
Back�round•
The City has historically approved transfers from the General fund to provide funding for specific
projects, fund closures and reimbursements to appropriate funds, dependent upon the project cycles
and funding status. These fund transfers have typically established funding sources for many significant
City programs and projects, such as the Fire Station construction and Park Asset projects. The Fund
Balance policy of the City follows a General Fund Balance policy that recommends the fund balance level
to be targeted at 40 to 45 % of budgeted expenditures. The fund balance position prior to closing the
2011 fiscal year allows for the transfer of funds to the defined funds, per the attached listing.
During budget and property tax levy discussions for the 2012 budget planning, Council discussed the
utilization of available fund balance from the 2011 fiscal year as an option to fund the projects that are
planned for future City Capital Improvement Fund (CIF), as well as providing a base of funding for
projects that have been discussed departmentally, and have not had a previously identified funding
source. 1
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Each year, as projects are completed or project specific funds are no longer needed, the closure of funds
is also presented for approval, through the fund transfer process. Typically, these funds include both
debt service and capital projects, that are often multi-year, and require the flow of transactions over
several cycles. This fund closure is also provided in the requested action.
Recommendation:
Staff recommends the approval of the attached inter-fund transfer and fund closure, as detailed in the
listing provided. These transactions will impact the 2011 fund balances of the funds listed, and will be
included in the 2011 financial statements.
Goals•
Maintain the City's strong financial health.
Requested Action:
If Council concurs, it should approve by motion the fund transfers and fund closures, as outlined in the
March 6 2012 memo, prepared by Julie A. Linnihan, Finance Director.
� Inter-fund Transfers for Council Approval
3/6/2012 Fund Fund
Transferred 'Transferred
" Transfer requested per 2011 budget:. Amount: From: To:
$11,200 Transit General
. $11,200 EDA General
$50,000 Sewer General .
$50,000 Storm Water General �
$285,000 General Fire Station Capital
. $465,000 Building IS 2004D Debt Service-PW Building
$80,000 General EDA
Transfer requested for fund closure: $6,915 CIF East Dean Lakes
. $587 CIF 2008 Capital Projects
$490 CIF 2009 Capital Projects
$13,484 2000A Debt Service Capital Improvement Fund
$10,356 2003A Debt Service Capital Improvement Fund
Transfer requested for debt service: $130,000 General 2004B Build. Ref. Debt - Fire
$87,853 General 2007B GO Improv. Bonds
Transfer to fund position:
Equipment Fund IS -� �
$50,000 General Car/Truck Wash
� $40,000 General Gas/Fuel System
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$50,000 General Street Light
$50,000 General IT Fund -IS Security programs
$131,458 General Park & Recreation Asset
$1,207,630 General Capital Improvement Fund
Total of Transfers: $2,731,173