HomeMy WebLinkAbout4.F.5. Establishment of Funds for Accounting Process • F. 5 d
To: Mayor and City Council ," • ° r 7'"'°
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Mark McNeill, City Administrator
From: Julie A. Linnihan, Finance Director
Subject: Establishment of Funds for Accounting Process
Date: November 7 2012
Action Requested:
The City Council is requested to approve the creation of new Special Revenue funds and a Capital Project
fund, effective November, 2012. These new funds are as follows:
• Lions Park Special Revenue fund
• Tree Replacement Special Revenue fund
• Seal Coat Dedication Special Revenue fund
• Road Expansion Dedication Capital Project fund
Introduction:
Historically, the City collected funds for projects specific to developments or projects that were retained
in an Escrow account fund. An Escrow fund should only be established and used in the event that these
funds would be returned to the party issuing the original payment to the City, with the intent of
returning the funds at the completion of a project. During recent review of the funds that have been
held in the Escrow fund, several of these payments are more appropriately recorded in Special Revenue
funds or Capital Project funds, as these funds received by the City will not be returned, based on the
initial development agreement or other specific language. These funds will be held by the City until the
seal coat projects, tree plantings or park projects are undertaken by staff or Lions Club members.
The use of these newly created funds will allow staff to accurately track these funds, from the point of
initial receipt, to the use of the funds per project.
Budget Impact:
There is no budget impact related to this requested action.
Recommendation:
Staff recommends the approval of the establishment of the newly created Special Revenue funds and
the Capital project funds. The funds will be transferred from the existing Escrow Fund, fund 8040.
Goals:
Housekeeping function.