HomeMy WebLinkAbout#12 - Fund TransfersSTAFF REPORT
DATE: April 4, 2023
CONSENT
AGENDA ITEM: Close unused funds and approve transfers to close funds
TO: Mayor and City Council
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND:
The City of Lake Elmo is organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-
balancing accounts that comprise its assets, liabilities, fund balance/net assets, revenues and
expenditures, or expenses, as appropriate.
Each year finance reviews the City funds (example: capital projects, debt service, special
revenues) and determines if the funds should continue to stay open or be closed. In the current
year, finance identified three funds that can be closed since all of the activity in those funds has
ended.
ISSUE BEFORE COUNCIL:
Should Council direct city staff to take any actions necessary to close the funds identified since
activity related to the funds has ended, and approve the necessary transfers to close the funds?
PROPOSAL:
Included in your packet is a resolution that lists all of the funds identified as well as the necessary
transfers to close the funds and transfer all of the assets in order to eliminate the fund balances that
currently exists in the accounts. The effective date of the transfers is 12/31/22 so that they can also
be closed out in the 2022 audit.
FISCAL IMPACT:
Fund 319 – Debt Service Fund – 2011A G.O. Improvement Bonds was paid in full in 2022. Since
105% is required to be levied, there remains a balance in the fund. Staff is proposing to transfer
that balance to Fund 324 – Debt Service Fund – 2015A G.O. Bonds to help reduce fund deficit.
Fund 425 – Capital Projects Fund – CSAH 19 & Hudson Intersection Improvement since the
project has been completed a transfer from the General Fund is necessary (and was planned for
when approving the project) to eliminate the negative fund balance. Fund 429 – Capital Projects
Fund – Inwood & 5th Street Stop Light since the project has been completed a transfer from the
General Fund is necessary (and was planned for when approving the project) to eliminate the
negative fund balance.
OPTIONS:
1) Approve Resolution No 2023-029
2) Amend and then Approve Resolution No 2023-029
3) Don not Approve Resolution No 2023-029
RECOMMENDATION:
If removed from the consent agenda:
Motion to approve Resolution No 2023-029
ATTACHMENTS:
• Resolution No 2023-029
CITY OF LAKE ELMO
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2023-029
A RESOLUTION TO CLOSE UNUSED FUND ACCOUNTS AND TRANSFER ASSETS TO
APPROPRIATE FUND ACCOUNTS
WHEREAS, the City of Lake Elmo is organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted for with a
separate set of self-balancing accounts that comprise its assets, liabilities, fund balance/net
assets, revenues and expenditures, or expenses, as appropriate; and
WHEREAS, there is no longer a need to maintain an account for the following activities as
transactions related to these funds have ended:
• Fund 319 – Debt Service Fund – 2011A G.O. Improvement Bonds
• Fund 425 – Capital Projects Fund – CSAH 19 & Hudson Intersection Improvement
• Fund 429 – Capital Projects Fund – Inwood & 5th Street Stop Light
WHEREAS, it is necessary and appropriate to close the funds and transfer all of the assets in
order to eliminate the fund balance that currently exist in the accounts,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LAKE ELMO authorizes the closure of the funds and transferring all of the assets effective
December 31, 2022 as follows:
• Transfer $96,400.78 from fund 319 to fund 324 – Debt Service Fund – 2015A G.O.
Bonds to help reduce fund deficit.
• Transfer $73,872.41 from fund 101 – General Fund to fund 425 to eliminate deficit and
close fund.
• Transfer $10,947.94 from fund 101 – General Fund to fund 429 to eliminate deficit and
close fund.
Passed and duly adopted this 4th day of April, 2023 by the City Council of the City of Lake
Elmo, Minnesota.
___________________________________
Charles Cadenhead, Mayor
ATTEST:
____________________________________
Julie Johnson, City Clerk