Item 3.7 Transfer of Funds4
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MINNEsOTA 9
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/Finance Director Flaherty
December 14, 2020
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
3.7
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 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
BACKGROUND/JUSTIFICATION:
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 throughout the 2021 budget discussions. The City Council
concurred with the staff recommendation of transferring the available funds per the following:
- $100,000 to the City Buildings & Property Maintenance Fund (#439)
- $200,000 to the Trails Management Fund (#202)
- $632,244 to the Capital Improvements Revolving Fund (#414)
SUPPORTING DOCUMENTS ATTACHED:
• Calculation of Proposed Transfer
• Resolution 2020-79
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO;APPEAR IN THE MINUTES:
Motion to approve Resolution 2020-79 approving the transfer of funds in accordance with the City's Fund
Balance Policy.
BUDGET INFORMATION
FUNDING: BUDGETED:
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CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2020-79
APPROVING TRANSFER OF FUNDS
WHEREAS, the City of Otsego adopted a Fund Balance Policy in April 2011; and
WHEREAS, Section 03.03.07 Paragraph C of the Fund Balance Policy establishes the minimum fund balance
for the City's General Fund as 45% of the subsequent year expenditure budget; and
WHEREAS, the Fund Balance Policy outlines the procedures when the actual fund balance exceeds the
defined minimum; and
WHEREAS, that in the instance where fund balance exceeds the minimum, the excess will be transferred
upon review of the City Council; and
WHEREAS, the City Council has reviewed the transfer of funds throughout the 2021 budget discussions; and
WHEREAS, upon recommendations by the Finance Director, the transfer of funds would aid the financial
stability of the City's Capital Improvement Plan; and
WHEREAS, governmental accounting requires that monies dedicated to specific projects or activities are
accounted for within a separate fund of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. That in accordance with the City's Fund Balance Policy, a transfer of funds in the amount of
$932,244 will be made from the City's General Fund in the amounts and to the respective Capital
Project funds as follows:
a. $100,000 to the City Buildings and Property Maintenance Fund (#439)
b. $200,000 to the Trails Management Fund (#202)
c. $632,244 to the Capital Improvements Revolving Fund (#414)
That the transfer of funds will be recorded within the City's financial records for the year ended
December 31, 2020.
ADOPTED by the Otsego City Council this 14th day of December, 2020.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
2
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Bethany Benting, Deputy City Clerk