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Item No. 7G 1 & 2 Type of Business: CB WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Charles Hansen, Finance Director Item Title/Subject: Consideration of the re-organization of funds within the Financial Statements and additional 2001 transfers between funds Date of Report: March 21, 2002 A report was made before the City Council at the March 4, 2002 work session that recommended a re-organization of funds and additional 2002 transfers. Two resolutions are attached to accomplish the goals discussed on March 4th. Resolution 5735 achieves the re-organization of funds. In summary, six funds reclassified from the special revenue funds to either capital projects funds or enterprise funds; four funds are reclassified from debt service funds to special revenue funds; one new special revenue fund is created; and four new debt service funds are created. The purposes of these changes are to more accurately report the nature of the City’s business and to reposition some of the City’s assets away from the special revenue funds. Resolution 5737 directs that several transfers of money be made between funds as of December 31, 2001. First, a total of $1,368,247.50 is transferred from the TIF District Funds to the new debt service funds. This sets aside money that was needed on February 1, 2002 to make debt service payments on TIF bonds. Second, $661,942.00 is transferred from the TIF District Funds to the EDA Fund to cover 2001 operating expenditures. Another $25.52 is transferred from TIF District Funds #3 to TIF District Fund #4. TIF #4 was created and then closed without any development activity. This transfer will allow accounts to be zeroed out so the fund can be removed from the financial reports. The above transfers add to a cash deficit in the TIF District #1 Fund. This will be handled in the 2001 Annual Financial Report by increasing an inter-fund loan from the Community Fund. Third, $1,200,000 is transferred from the General Fund to the Special Projects Fund. This is an increase from the $1,000,000 transfer discussed on March 4th because the General Fund’s 2001 operating results are a little stronger than anticipated. The Special Projects Fund was selected to receive the transfers since it gives the City Council the most flexibility for the future use of the money to meet the City’s needs. Respectfully Submitted, Charles Hansen