3.3 Interfund Transfer Fund 375 - 2012A Debt Service FundRequest for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty June 27, 2022
PRESENTER(s) REVIEWED BY: ITEM #:
Consent 3.3 – Interfund Transfer
STRATEGIC VISION
MEETS: 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 Refunding Bonds, Series 2012A 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, 2021. The only
remaining activity within the fund is the collection of outstanding special assessment revenue, scheduled
for final collection in 2026, 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 ($3,186.90) and outstanding special assessment balances ($23,750.00) to be transferred to the
Capital Improvements Revolving Fund.
SUPPORTING DOCUMENTS ATTACHED:
•Trial Balance – Fund 375
•Resolution 2022-58
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve Resolution 2022-58 approving transfer of funds.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A N/A
[Report].FUND = "375"
Includes net income totals
Includes accounts with balances
Actual amounts
Report Criteria:
Period: 06/22 (06/30/2022)Jun 13, 2022 10:03AM
Page: 1Trial Balance - Detail - Funds with Balances or ActivityCITY OF OTSEGO
.00Net Income:
26,936.90-26,936.90Total GO IMPROVEMENT (REF) - 2012A:
3,186.90-UNRESERVED FUND BALANCE375-25300
23,750.00-UNAVAILABLE REV - ASSESSMENTS375-22202
23,750.00SPECIAL ASSESS REC-DEFERRED375-12300
3,186.90CASH & INVESTMENTS375-10100
GO IMPROVEMENT (REF) - 2012A
Credit
Amount
Debit
AmountTitle
Account
Number
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2022-58
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 Refunding Bonds, Series
2012A 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 2026; and
WHEREAS, the debt service principal and interest requirements have been paid in full as of December 1, 2021;
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 Capital Improvements Revolving 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 Refunding Bonds, Series 2012A debt service fund
is authorized with remaining fund balances and outstanding special assessment balances to be
transferred to the Capital Improvements Revolving Fund.
2
ADOPTED by the Otsego City Council this 27th day of June, 2022.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk