3.7 Approving Transfer of Funds - Kittredge Park Shelter Repair
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty December 11, 2023
PRESENTER(s) REVIEWED BY: ITEM #:
Consent 3.7 – Transfer of Funds –
Kittredge Park Shelter
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
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.
X Is a social community with diverse housing, service options, and employment opportunities.
X 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 2023 Capital Improvement Plan (CIP) included the Kittredge Park Shelter Repair Project with an estimated project
cost of $50,000. This estimate was completed prior to the soil borings and geotechnical recommendation. Without this
information, proper design and a more accurate estimate were not completed prior to estimating for CIP purposes . Due
to this project being so small and unique, with few contractors who can and want to do the work, estimating is much
more difficult.
The quoted costs, including estimated engineering costs of 15%, the total project cost is estimated at $131,422.76. The
City Council at their meeting on July 24, 2023, meeting, accepted quotes and authorized the repair of the shelter. At their
special meeting on August 14, 2023, the City Council reviewed project financing options and directed staff to prepare a
resolution authorizing a transfer of funds in the amount of $81,423 from the Capital Improvements Revolving Fund.
The amount of the transfer discussed at the August 14, 2023, meeting represented the project costs that exceeded the
CIP budget. Upon project completion, the actual final costs totaled $116,042.37. The resolution included in this packet
reflects the actual project costs rather than the estimated costs and includes a transfer in the amount of $66,042.37.
The transfer will be between the Parks Capital Equipment Fund and the Capital Improvement Revolving Fund and will be
reflected in the City’s Annual Comprehensive Financial Report for the year ended December 31, 2023.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2023-82
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2023-82 approving the transfer of funds to provide financing for the Kittredge Park
Shelter Repair Project.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 205 – Parks Capital Equipment
Yes; however the actual project costs exceeded the amount
included within the Capital Improvement Plan.
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2023-82
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’s 2023 Capital Improvement Plan included the Kittredge Park Shelter Repair Project; and
WHEREAS, the City Council on July 24, 2023, accepted quotes and authorized the repair; and
WHEREAS, actual project costs exceeded the estimated budget in the Capital Improvement Plan; and
WHEREAS, the City Council on August 14, 2023, directed staff to finance the difference between the actual project costs and
the Capital Improvement Plan with a transfer of funds; and
WHEREAS, the Finance Director has determined the total project costs and calculated the transfer of funds; 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. That a transfer of funds in the amount of $66,042.37 will be made from the Capital Improvement Revolving Fund to
the Parks Capital Equipment Fund to provide financing for the Kittredge Park Shelter Repair Project.
2. That the transfer of funds be recorded and reflected within the City’s 2023 financial records.
2
ADOPTED by the Otsego City Council this 11th day of December, 2023.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk