ITEM 3.4 Transfer of FundsOtSeF o
MINNESOTA Cy
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/Finance Director Flaherty
June 22, 2020
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
3.4
STRATEGIC VISION
MEETS:
I THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
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 a resolution approving transfer of funds.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
The City established the General Obligation Improvement Bonds, Series 2007B debt service fund to account
for the collection of special assessment revenues used to repay the principal, interest and fiscal agent fees
on the respective debt issue.
The debt service requirements of the bond have been paid in full as of December 1, 2016. The only
remaining activity within the fund is the collection of outstanding special assessment revenue, scheduled
for final collection in 2021, which the finance department can properly account for in a separate fund.
Since there is no ongoing purpose for this fund, the Finance Director recommends the remaining fund
balances ($12,485.48) and outstanding special assessment balances ($8,092.24) to be transferred to the
Pavement Management Fund.
SUPPORTING DOCUMENTS ATTACHED:
• Trial Balance — Fund 395
• Resolution 2020-38
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to approve Resolution 2020-38 approving transfer of funds.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A N/A
CITY OF OTSEGO Trial Balance - Detail - Funds with Balances or Activity Page: 30
GL Period: 06/20 Jun 04, 2020 02:14PM
GO IMPROVEMENT - 2007B
Account
Number
Title
395-10100
CASH & INVESTMENTS
395-12300
SPECIAL ASSESS REG-DEFERRED
395-22202
UNAVAILABLE REV -ASSESSMENTS
395-25300
UNRESERVED FUND BALANCE
Total GO IMPROVEMENT- 2007E
Net Income:
Debit Credit
Amount Amount
12,485.48
8,092.24
8,092.24-
12,485.48-
20,577.72 20,577.72-
.00
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2020-38
APPROVING TRANSFER OF FUNDS
WHEREAS, governmental accounting requires that monies dedicated to specific projects or activities are
accounted for within a separate fund of the City; and
WHEREAS, the City of Otsego established the General Obligation Improvement Bonds, Series 2007B debt
service fund to account for the collection of special assessment revenues used to repay the principal,
interest and fiscal agent fees on the respective debt issue; and
WHEREAS, outstanding special assessment balances remain with final revenue receipts scheduled for
collection in 2021; and
WHEREAS, the debt service principal and interest requirements have been paid in full as of December 1,
2016;and
WHEREAS, the City can account for the future special assessment revenue receipts in a separate fund; and
WHEREAS, the Finance Director recommends the remaining fund balances and outstanding special
assessment balances to be transferred to the Pavement Management Fund; and
WHEREAS, the Otsego City Council has the responsibility to review such transfers of funds as part of their
financial oversight of the City's resources.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. The closure of the General Obligation Improvement Bonds, Series 2007B debt service fund is
authorized with remaining fund balances and outstanding special assessment balances to be
transferred to the Pavement Management Fund.
ADOPTED by the Otsego City Council this 22nd day of June, 2020.
1
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Tami M. Loff, City Clerk