ITEM 3.8C Transfer of FundsatseFfo
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MINNrSOTA 4D
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/Finance Director Flaherty
August 10, 2020
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
3.8C
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/J USTI FICATION:
The City established the Community Facilities fund in 2004 to account for the revenues and expenditures
related to the construction of community facilities and amenities throughout the City. Funding sources
included development fees, donations, grants and other miscellaneous revenues. The most recent project
within this fund was the Norin Landing Improvements project, which was approved by the City Council in
2018 with final completion in 2019.
There are no future projects in the Capital Improvement Plan that identify this fund as the source of
funding. The only remaining activity within the fund would be scheduled contributions in 2020 and 2021
from Three Rivers Soccer Association (TRSA), 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 fund be closed with a
combination of interfund transfers:
- Transfer In: $79,253.02 from Park Dedication. This incoming transfer was an approved financing
source for the Norin Landing Improvements (May 14, 2018 minutes attached).
- Transfer Out: $80,000.00 to Parks Capital Equipment. This outgoing transfer accounts for accumulated
contributions from TRSA over the past eight years.
SUPPORTING DOCUMENTS ATTACHED:
• Trial Balance — Fund 208
• Cash Flow Summary — Fund 208
• City Council Minutes — May 14, 2018
• Resolution 2020-50
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve Resolution 2020-50approving transfer of funds.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A N/A
CITY OF OTSEGO Trial Balance - Detail - Funds with Balances or Activity Page: 13
GL Period: 07/20 Jul 29, 2020 08:36AM
COMMUNITY FACILITIES FUND
Account
Number
Title
208-10100 CASH &INVESTMENTS
208-25300 UNRESERVED FUND BALANCE
Total COMMUNITY FACILITIES FUND:
Net Income:
Debit Credit
Amount Amount
746.98
746.98-
746.98 746.98-
.00
_ Cfty of Otsego
Community Facilities Fund
Cash Flow Summary
Revised: July 29, 2020
Actual Actual
Actual
Actual
Actual
Actual
Actual
Actual
Forecast Forecast
2012 2013
2014
2015
2016
2017
2018
2019
2020 2021
Comments
Revenues
Investment Interest
$ 9,107 $ (2,524) $
6,942 $
2,821 $
3,809 $
4,332 $
6,778 $
- $
- $ -
TRSA Donation
- 20,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000 10,000
TRSA Committed to$100k(Last year is 2021)
Intergovernmental
- -
-
-
-
-
-
150,000
- -
DNR Grant -Norin Landing
Miscellaneous
- -
-
1,675
-
-
-
-
- -
Transfers In
-
Park Dedication Subsidy- Norin Landing
Total
9,107 17,476
16,942
14,496
13,809
14,332
16,778
160,000
89,253 10,000
Expenses
Engineering
-
-
-
-
4,G68
8,286
29,535
7,574 - -
CapitalOuday- General
-
-
2,367
-
-
-
-
- -
Capita lOut lay -Streets
-
-
-
-
-
Capital Outlay - Parks
21,775
292,871
16,086
1,568
19,322
21,284
508,883
89,778 - -
CapltalOutlay(Parks CIP)
-
-
-
-
-
- -
Transfers Out
- 100,000 Transfer ofTRSA Donations
Total
21,775
292,871
18,453
1,568
23,390
29,570
538,418
97,352 - 100,000
Cash Balance -Beginning
770,392
756,185
470,515
471,628
494,556
487,230
451,434
160,893 747 90,000
Balance Sheet Effects
(1,529)
(10,275)
2,624
-
12,255
(20,558)
231,099
(222,794)
Revenues
9,107
17,476
16,942
14,496
13,809
14,332
16,778
160,000 89,253 10,000
Expenditures
21,775
292,871)
18,453)
1,568
23,390
29,570)
538,418
97,352 - 100,000
Cash Balance -Ending
$ 756,185
470,515 $
471,628 $
484,556
487,230 $
451,434 $
360,893 $
747 $ 90,000 $ -
747 Current Cash Balance
79,253 Transfer in -Norin Landing
(80,000) Transfer Out -TRSA Contributions
Net Cash Balance
XABudget\202i\Cash Flows\Capital Funds 208-Comm Facilities
Excerpt of Minutes — May 14, 2018
7. Parks and Recreation
7 1, Awared Norin Landing Bid.
Parks and Recreation Director Demant presented the staff report. City Administrator/Finance
Director Flaherty explained that the Community Facilities fund has no ongoing revenue source
and will be closed after this project is completed.
CM Tanner motioned to approve the bid from Sunram Construction Inc. with
alternates, and to enter Into a contract for the construction of the Norin Landing
Park and boat landing in the amount of $520,943.00 Seconded by CM Warehime.
All In favor. Motion carried.
CM Tanner motioned to approve the quotes from St. Croix Recreation and Michael
Basich Inc. For the purchase and installation of the Norin Landing gazebo in the
amount of $61,142.00. Seconded by CM Warehime. All in favor. Motion Carried,
CM Tanner motioned to approve the Park Development fund as the supplemental
funding source for project costs that exceed available funding within the
Community Facilities fund for the construction of Norin Landing Park. Seconeded by
CM Heidner. All in favor. Motion carried.
CM Warehime asked if there would be money left in the park dedication fund. City
Administrator/Finance Director Flaherty stated that there is available funding.
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2020-50
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 Community Facilities fund in 2004 to account for the revenues
and expenditures related to the construction of community facilities and amenities in the City; and
WHEREAS, all previous community facilities and amenities projects have been completed; and
WHEREAS, there are no future projects in the Capital Improvement Plan that identify this fund as a source
of funding; and
WHEREAS, the only remaining activity within the fund are scheduled contributions from Three Rivers Soccer
Association (TRSA), which the finance department can properly account for the receipts in a separate fund;
and
WHEREAS, since there is no ongoing purpose for this fund, the Finance Director recommends the fund be
closed with a combination of transfers; 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:
That an incoming transfer in the amount of $79,253.02 from the Park Dedication fund is authorized
as an approved funding source for the Norin Landing Improvement Project.
2. That an outgoing transfer in the amount of $80,000.00 to the Parks Capital Equipment fund for
accumulated contributions from TRSA is authorized.
ADOPTED by the Otsego City Council this 10th day of August, 2020.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
2
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Tami M. Loff, City Clerk