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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 <br />www.ci.little-canada.mn.us <br />MAYOR <br />Bilt Blesener <br />COUNCIL <br />Rick Montour <br />Barbara Allan <br />John Keis <br />Michael McGraw <br />ADMINISTRATOR <br />Joel R. Manson <br />MEMORANDUM <br />TO: Mayor Blesener and Members of the City Council <br />FROM: Shelly Rueckert, Finance Director <br />DATE: May 17, 2007 <br />RE: 2006 Fund Transfers <br />Attached is a schedule of transfers made and proposed for 2006. These transfers are <br />consistent with the City's transfer policies and past practice with three exceptions: <br />• The first is simply a correction for a posting of water insurance expense to the <br />Sewer Fund in 2005. <br />• The second is a transfer to close the fund titled Mayfield/HACA Penalty. This <br />fund is combined with the General Fund for audit purposes. The fund was <br />established prior to 1994 and the funds held were attributable to a prepayment <br />made by Presbyterian Homes. Subsequent TIF law changes made this <br />prepayment available to the City. Holding these funds in a separate fund within <br />the books is no longer considered necessary. Therefore, the schedule proposes <br />closing this fund into the General Fund as of 12/31/06. <br />• The third item is the $92,799 budgeted transfer from the Infrastructure Fund to the <br />General Fund which has not been included in the transfers schedule. The City is <br />anticipating an operating surplus of approximately $73,000 for 2006 excluding <br />this transfer. This one time transfer was budgeted in 2006 to offset the continuing <br />cut in MVHC and to keep the levy increase at a minimum. The 2006 actual <br />building permits and plan check revenues provided $106,281 more in revenues <br />than budgeted, helping to create the 2006 operating surplus. Given the City's <br />current reserve transfer policy, it is likely that an Infrastructure transfer of <br />$92,799 would subsequently become part of the Reserve Fund transfer to the <br />General Capital Improvement Fund in 2007. Given the General Fund surplus and <br />the General Capital Improvement Fund balance, this transfer is no longer <br />considered necessary. <br />Staff is recommending the Council approve the transfers reflected in the attached <br />schedule. <br />