HomeMy WebLinkAbout2001-044 Council Resolution•
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Council member &Le_ introduced the following resolution and
move its adoption:
CITY OF LINO LAKES
RESOLUTION NO. 2001-44
RESOLUTION AUTHORIZING THE CLOSING OF 1994 AND 1995 CONSTRUCTION
CAPITAL PROJECTS FUNDS
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
the 1994 Construction Fund (Fund 454) and the 1995 Construction Fund (Fund 455)
were established to account for projects undertaken by the City of Lino Lakes, and
the projects associated with the 1994 Construction Fund (Fund 454) and the 1995
Construction Fund (Fund 455) have been completed and contracts have been
closed and said funds are inactive, and
it is standard accounting practice to close inactive funds at the end of an accounting
period, and
such funds are closed either to an associated debt service fund or to the fund from
which the funding for the related projects originated in accordance with generally
accepted accounting principals.
NOW, THEREFORE BE IT RESOLVED by the City Council of Lino Lakes, that staff is hereby
authorized to close the following funds and to make residual fund transfers to the associated
funds effective December 31, 2000 as follows:
Funds to be Closed
1994 Construction Fund (Fund 454) to
1995 Construction Fund (Fund 455) to
Funds Receiving Residual transfers
Area and Unit Fund (Fund 406)
Area and Unit Fund (Fund 406)
Adopted by the City Council of Lino Lakes this 12th day of March, 2001.
Ry -C ' 1 Gaustad, CMC City Clerk
fie motion for the adoption of the foregoing resolution was duly seconded by Council Member
and upon vote being taken thereon, the following voted in favor thereof:,
The following voted against same: 4 7 4 , 6 . L . j
Where upon said resolution was declared duly passed and adopted.
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AGENDA ITEM 1D
STAFF ORIGINATOR Al Rolek
MEETING DATE 3/12/01
TOPIC Resolution 2001 -44 Authorizing the Closing of 1994 and
1995 Construction Capital Projects Funds
VOTE REQUIRED Simple Majority
BACKGROUND
The City established the 1994 Construction Fund ( Fund 454) to account for the activity
of the Country Lakes Estates, Highway 49 and Lake Drive and Hodgson Road
Watermain projects. Due to construction overruns and an eminent domain settlement
for the George Reiling property this fund has a current fund deficit of $440,942. The
1995 Construction Fund (Fund 455) was established to account for the activity of the
Woods of Baldwin Lakes II project. This fund has a fund balance of $9,024. All of the
projects associated with these funds have been completed and the contracts have been
closed out. No further activity is anticipated in these funds.
It is standard practice to close inactive funds at the end of an accounting period (ie.
12/31/2000). In accordance with generally accepted accounting principals the funds
are to be closed to the corresponding debt service fund or the fund from which the
funding for the project originated. In the case of both of these funds, the Area and Unit
Fund is the appropriate fund into which these construction funds should be closed.
Therefore, it is staff's recommendation that the City Council adopt Resolution 2001 -444
authorizing the closing of these funds and the residual equity transfers resulting from
the closures.
OPTIONS
1. Adopt Resolution 2001 -44 Authorizing the Closing Of Capital Projects Funds
2. Refer back to Staff for further consideration.
3. Deny Resolution 2001 -44.
RECOMMENDATION
Option 1