ITEM 3.8 Transfer of FundsI
Ot�egoF
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT REQUESTOR:
MEETING DATE:
Administration City Administrator/Finance Director Flaherty
June 11, 2018
PRESENTER(s) REVIEWED BY:
ITEM #:
Consent
3.8
STRATEGIC VISION
MEETS:
I THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
IS A PUBLIC HEARING REQUIRED?
Has proactively expanded infrastructure to responsibly provide core services.
No
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
The City adopted a Fund Balance Policy in April 2011.
Is a social community with diverse housing, service options, and employment opportunities.
General Fund as 45% of the subsequent year expenditure budget. The policy also outlines the procedures
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council approve the transfer of funds from the General Fund in
accordance with the City's fund balance policy.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKG RO U N D/J USTI FICATI ON:
The City adopted a Fund Balance Policy in April 2011.
Within said policy, Section 03.03.07, Paragraph "C" establishes the minimum fund balance for the City's
General Fund as 45% of the subsequent year expenditure budget. The policy also outlines the procedures
when the actual fund balance exceeds the defined minimum. In the instance where fund balance exceeds
the 45% level, the excess will be transferred to the Capital Improvements Revolving fund with the City
Council reviewing the future use of said funds.
The City Council and staff reviewed this transfer as part of the 2019 budget discussion at the May 29, 2018
special meeting. The City Council concurred with the staff recommendation of transferring the available
funds to the Capital Improvements Revolving fund and to be assigned for local cost sharing on upcoming
County road projects.
SUPPORTING DOCUMENTS ATTACHED:
0 Calculation of Proposed Transfer
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to approve the transfer of $948,076 from the General Fund to the Capital Improvement Revolving
Fund to be reported in the 2018 financial statements.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
City of Otsego
Fund Balance Policy
General Fund Transfer
2018
Calculation
Comments
2018 General Fund Budget 5,378,034
Resolution 2017-100
Minimum Fund Balance 2,420,115
The City's Fund Balance states that the minimum General Fund Balance should be 45% of the subsequent year budget.
2017 Ending Fund Balance 3,890,645
Per Audited Financial Statements
(185,066)
Less: Fund Balance from Insurance Reserve Fund (#204) - Grouped with General for Financial Reporting
(20,191)
Less: Fund Balance from Educational Programming Fund (#215) - Grouped with General for Financial Reporting
(114,997)
Less: Nonspendable Fund Balance - Financial Reporting Requirement - Funds actually have alredy been expended.
(202,200)
Less: Nonspendable Fund Balance - Financial Reporting Requirement - Future funds from land for resale proceeds.
3,368,191
Fund Balance Available (Unassigned)
Excess 1 948,076 DRAFT- PRESENTED TO COUNCIL ON 5-29-2018 - RECOMMENDED FOR APPROVAL ON 6-11-2018.
X:\Budget\2019\Calculation of Fund Balance Policy Transfers 2018