Agenda Packets - 2002/11/25 - Laserfiche WebLink

Home Browse Search

Item No. 7A 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: Resolution 5886 Closing the Citizen Donation Fund and the Employee Pop Fund Date of Report: November 20, 2002 The 2001 Annual Financial Report showed two agency funds. These are the Citizen Donation Fund and the Employee Pop Fund. Neither is really an agency fund. I am proposing to close these funds at the end of 2002 so that they won’t be a problem in 2003 when the city needs to implement the GASB 34 reporting requirements. The Citizen Donation Fund has received donations from citizens to be used for specific purposes. Of the $3,060 balance in the fund on December 31, 2001, $1,723 had been donated primarily by the Lions Club so that the Police Department would be able to place citizens in crisis in temporary shelter until other arrangements could be made for them. The other $1,337 was the remaining balance of a donation in 2000 by a group named Lake Region for an “Art in the Park” program. The attached resolution authorizes the transfer of the December 31, 2002 balance of these accounts to other funds. The Lions Club balance goes to the Police Forfeiture Fund where an account will be set up to track it separately from forfeitures and it can continue to be used for temporary shelter. The Lake Region balance goes to the Park Dedication Fund where an account will be set up for it until it can be more precisely determined what the agreed upon purpose was and a plan made to spend it. The Employee Pop Fund receives commissions off of the pop machine in the lobby of City Hall. In past years, a larger volume of revenues went into this fund and the money was spent on a variety of employee appreciation type events. No such events have been supported by this fund in recent years. It is my understanding that Mounds View’s City Attorney, as well as the attorneys of most other cities, have ruled that revenues of this type are city revenues and such a fund can’t exist independent of the budgetary control of the City Council. Employee appreciation events may happen as long as the City Council approves of them and appropriates money for them. The attached resolution authorizes the transfer of the December 31, 2002 balance of the Employee Pop Fund to the General Fund. The City Council could, at its discretion, appropriate the money for employee appreciation type events in the future. Respectfully Submitted, Charles Hansen