Item 3.11 Fund TransferP
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MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT REQUESTOR:
MEETING DATE:
Administration City Administrator/Finance Director Flaherty
February 22, 2021
PRESENTER(s) REVIEWED BY:
ITEM #:
Consent
3.11 Closure of Fund 209
STRATEGIC VISION
MEETS:
I THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
No
Has proactively expanded infrastructure to responsibly provide core services.
BACKGROUND/JUSTIFICATION :
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
the construction of future arterial collector streets and/or the improvement or reconstruction of current
Is a social community with diverse housing, service options, and employment opportunities.
fund was the reconstruction of Page Avenue between 85th Street and 78th Street during 2020.
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 Collector Streets Reconstruction to account for the revenues and expenditures for
the construction of future arterial collector streets and/or the improvement or reconstruction of current
arterial collector streets as development continues throughout the City. The most recent project within this
fund was the reconstruction of Page Avenue between 85th Street and 78th Street during 2020.
There are no future projects in the Capital Improvement Plan that identify this fund as the source of
funding. City staff discussed the future of this fund with the City Council during the 2021 budget review
process. At the July 27, 2020 meeting, the City Council concurred with the staff recommendation for this
fund to be closed with an interfund transfer:
- Cash Balance of $1,071,127.67 will be transferred to the Pavement Management fund, where the
monies will be used to fund the City's Pavement Management Program.
- Special Assessments of $166,464.02 will be accounted for in the Pavement Management fund,
where all future revenue collections of said special assessments will be used to fund the City's
Pavement Management Program.
City staff is recommending this transfer be reflected in the 2020 financial statements.
SUPPORTING DOCUMENTS ATTACHED:
• Trial Balance — Fund 209
• Resolution 2021-11
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THEM I NUTES:
Motion to approve Resolution 2021-11 approving transfer of funds.
RtjnG'FT INFORMATION
FUNDING: BUDGETED:
N/A N/A
CITY OF OTSEGO Trial Balance - Detail - Funds with Balances or Activity Page: 15
Period: 14/20 (12/31/2020) Feb 18, 2021 10:33AM
Account
Number
COLLECTOR STREET RECONSTRUCTIO
209-10100
209-12200
209-12300
209-20200
209-22202
209-25300
209-36100
209-43100-302
209-43100-390
209-43100-530
Title
CASH & INVESTMENTS
SPECIAL ASSESS REC-DELINQUENT
SPECIAL ASSESS REC-DEFERRED
ACCOUNTS PAYABLE
UNAVAILABLE REV -ASSESSMENTS
UNRESERVED FUND BALANCE
SPECIAL ASSESSMENT
ENGINEERING FEES
CONTRACTED SERVICES
IMPROVEMENTS OTHER THAN BLDG
Total COLLECTOR STREET RECONSTRUCTIO:
Net Loss:
Debit
Credit
Amount
Amount
1,071,127.67
2,870.64
163,593.38
302.50-
166,464.02-
1,821,968.52-
4,781.55-
44,110.35
3,574.00
708,240.55
1,993,516.59
1,993,516.59-
751,143.35
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2021-11
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 Collector Streets Reconstruction to account for the revenues
and expenditures for the construction of future arterial collector streets and/or the improvement or
reconstruction of current arterial collector streets as development continues throughout the City; and
WHEREAS, all previous projects in the Capital Improvement Plan 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 is the collection of outstanding special assessment
revenues, 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 remaining
cash 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 Collector Streets Reconstruction fund is authorized with remaining cash balances
and outstanding special assessment balances to be transferred to the Pavement Management
Fund.
2. That the closure transaction be recorded and reflected within the City's 2020 financial records.
1
ADOPTED by the Otsego City Council this 22nd day of February, 2021.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
2
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Audra Etzel, City Clerk