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STAFF REPORT <br />DATE: April 4, 2023 <br /> CONSENT <br /> <br /> <br />AGENDA ITEM: Close unused funds and approve transfers to close funds <br />TO: Mayor and City Council <br />SUBMITTED BY: Kristina Handt, City Administrator <br /> <br />BACKGROUND: <br />The City of Lake Elmo is organized on the basis of funds, each of which is considered a separate <br />accounting entity. The operations of each fund are accounted for with a separate set of self- <br />balancing accounts that comprise its assets, liabilities, fund balance/net assets, revenues and <br />expenditures, or expenses, as appropriate. <br /> <br />Each year finance reviews the City funds (example: capital projects, debt service, special <br />revenues) and determines if the funds should continue to stay open or be closed. In the current <br />year, finance identified three funds that can be closed since all of the activity in those funds has <br />ended. <br />ISSUE BEFORE COUNCIL: <br />Should Council direct city staff to take any actions necessary to close the funds identified since <br />activity related to the funds has ended, and approve the necessary transfers to close the funds? <br /> <br />PROPOSAL: <br />Included in your packet is a resolution that lists all of the funds identified as well as the necessary <br />transfers to close the funds and transfer all of the assets in order to eliminate the fund balances that <br />currently exists in the accounts. The effective date of the transfers is 12/31/22 so that they can also <br />be closed out in the 2022 audit. <br /> <br />FISCAL IMPACT: <br />Fund 319 – Debt Service Fund – 2011A G.O. Improvement Bonds was paid in full in 2022. Since <br />105% is required to be levied, there remains a balance in the fund. Staff is proposing to transfer <br />that balance to Fund 324 – Debt Service Fund – 2015A G.O. Bonds to help reduce fund deficit. <br />Fund 425 – Capital Projects Fund – CSAH 19 & Hudson Intersection Improvement since the <br />project has been completed a transfer from the General Fund is necessary (and was planned for <br />when approving the project) to eliminate the negative fund balance. Fund 429 – Capital Projects <br />Fund – Inwood & 5th Street Stop Light since the project has been completed a transfer from the <br />General Fund is necessary (and was planned for when approving the project) to eliminate the <br />negative fund balance. <br /> <br />OPTIONS: <br />1) Approve Resolution No 2023-029 <br />2) Amend and then Approve Resolution No 2023-029 <br />3) Don not Approve Resolution No 2023-029