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Home My WebLink About5B October 2011 Treasurer's ReportFRro U tr1 4646 Dakota Street SE 7 Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: NOVEMBER 21, 2011 AGENDA #: 5B PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR PRESENTED BY: JERILYN ERICKSON AGENDA ITEM: CONSIDER APPROVAL OF OCTOBER 2011 TREASURER'S REPORT DISCUSSION: Introduction The purpose of this agenda item is for the Council to consider approval of the monthly Treasurer's Report for October, 2011. This information is being provided in a format which categorizes the balances by fund type. A second page is included to provide the Fund Balance Classification for each of the funds as well as the restrictions placed upon their usage. Even though a fund have an "unrestricted" or "unreserved" fund balance classification, it does not necessarily mean that the balance is available to appropriate to other funds for other uses. There be constraints in place due to the type of fund (i.e. debt service fund), the contractual obligations (i.e. developer or tax increment agreements) or as communicated when the fund was established. For example, TIF Capital Project Funds have an "unreserved- designated for improvements" fund balance classification. These funds are contractually obligated by tax increment agreements in place so they are not available to appropriate for other City uses. Upon decertification of a TIF district, any residual funds will be sent to Scott County to be redistributed to the city, school and county. The business -type funds have "unrestricted" fund balance classifications. In the case of the Transit Fund, we receive funds from the Met Council for transit - related uses. Any remaining fund balance in the Transit Fund cannot be appropriated for other City uses. To use the fund balances in the Water, Sewer and Water Quality Funds for something other than what was indicated on the utility bill would misrepresent the intent of the fees that were charged. The funds that have balances which have been identified for a particular purpose such as equipment replacement or downtown building fagade improvements can be appropriated for other City uses as determined by the Council. Certain long -term plans in the Capital Improvement Program have been established which support the balances in these funds. Council would need to consider the financial impact of appropriating these balances for other uses. Further description of the constraints on other funds is reflected on the second page of the report. Current Circumstances Staff has prepared a preliminary summary of the activity in the fund balances for the month of October, 2011. The Treasurer's Report reflects beginning cash balance, receipts, disbursements, and the ending cash balance for each fund for the month of October, 2011. Interest earned is allocated to each fund on a monthly basis and based upon each individual fund's proportionate share of the total cash balance. The Report details each fund balance classification. The Report is preliminary, unaudited, and change. In most instances these funds were established and restricted for specific and designated purposes by either Minnesota Statutes or City Code to accomplish the goals and objectives of the City of Prior Lake. The attached memorandum provides a summary of the fund descriptions. On August 15, 2011, the City Council approved resolution #11 -100 to close the Building Fund (F420) and establish the Facilities Management Fund (F44O) as outlined in the Facilities Management Plan (FMP). The FMP is a new component to our Capital Improvement Program that identifies the existing inventory, installation date, life expectancy and value of equipment on a long term basis (25 years) for all of our facilities. The FMP provides a schedule for MAJOR repairs, replacements and upgrades. It does not cover minor expenses for repairs and maintenance. Those will continue to be funded through the operating budgets. On September 6, 2011 the City Council approved resolution #11 -105 to transfer the residual balances of following three funds to the Economic Development Authority Special Revenue Fund: • Economic Development Federal Revolving Loan Fund (F250) • Economic Development Minnesota Revolving Loan Fund (F255) • Downtown Revolving Fund (F256) If Council members have questions, please feel free to contact me at 952- 447 -9841 for more information. ALTERNATIVES: 1. A motion as part of the consent agenda to approve the October, 2011 Treasurer's Report as submitted. 2. Take no action and provide the staff with specific direction. RECOMMENDED Alternative 1. A motion as part of the consent agenda to approve the MOTION: October, 2011 Treasurer's Report as submitted. ATTACHMENTS: 1. City of Prior Lake October, 2011 Treasurer's Report 2. Treasurer's Report Fund Descriptions CADocuments and Setdngslcareen\Mv Documents\SharePoint Drafts12011 October Treasurer Report.docOA!nyestFnentsgreasuFess Re., oF 42011 n,.t,.tie. Treasurer Report des TREASURER'S REPORT FUND DESCRIPTIONS General Fund - The General Fund represents the necessary resources to support general operating budget expenditures of the City. The year -end fund balance represents dollars that have accumulated over a period of time as a result of cumulative budgetary revenue surpluses and expenditure under runs. The City Council has designated a portion of this amount, equal to a minimum of 45% of the current operating budget, for working capital to finance city operations. Sewer & Water Fund - The Sewer and Water Fund accounts for the collection of sewer and water billing utility revenue. This enterprise fund balance is allocated for the operational costs of the Water /Sewer departments and normally reserved for large capital municipal system expenses. Water Ouali , Fund - The Storm Water Fund is an enterprise account funded by the $7.25 storm water charge on the utility bills. The funds in the account are dedicated to finance water quality improvements including departmental administration, storm water maintenance operations and improvement projects related to water quality. Transit Fund - The Transit Fund is an enterprise account funded predominantly (90 %) by state aid that is derived from the vehicle excise tax paid through annual license tab renewals on vehicles. The receipts are dedicated to pay for community transit services such as the downtown commuter service, van pool and dial -a -ride services. Cable Franchise Fund - This fund was created to act as a clearing house for funds that were received from the cable franchise company as specified by ordinance. Capital Park Fund - Capital Park funds are dedicated funds received from developers in accordance with the City's Park Dedication requirement when land is platted. Funds are collected for the purpose of developing the City's neighborhood park and trail system. These dollars are programmed throughout the course of the City's Capital Improvement Program. Severance Compensation Fund - This fund was established to partially fund the City's compensated absence liability which is associated with the accrued vacation and sick leave for employees upon employment termination. The State Auditor's Office has recommended that local governments set aside a certain percentage on the basis of foreseeable turnover. ED Special Revenue — This fund is reserved and expended at the direction of the Prior Lake Economic Development Authority for specific economic development activity as allowed by MN Statute. The purpose is to provide economic incentives for new business expansion within the community. ED Fed/MN Loan Funds - These funds were created to account for the proceeds of economic development grants received either from the federal government or the State of Minnesota to provide seed money for a revolving loan account. The purpose is to provide economic incentive for new business expansion within the community. These funds were closed in September, 2011. Downtown Redevelopment Fund - This fund was created to provide development assistance in the context of building facade improvements for downtown businesses in an effort to revitalize and renew business activity and the general appearance of the downtown business district. This fund was closed in September, 2011. DAG Special Revenue Fund - The DAG Fund is a special revenue fund related to the costs the City incurs in connection with a subdivision. The fees are paid to the City by the developer when the Development Contract and Final Plat are approved by the City Council. These revenues are used to pay for legal expenses incurred in connection with review and approval of the plat and inspection services on developer installed- utilities including sewer, water and street installation for newly approved subdivisions within the City of Prior Lake. Water Revenue Bond Fund — PW Bldg - This fund is a debt service fund to pay the bonds that were issued to construct the public works maintenance building. The capital facility (CFAC) charge of $10.00 that is generated on the bi- monthly water and sewer bill provides the funding for the bond payments which occur semi - annually in June and December of each year. Upon demand the funds are transferred from the Sewer and Water Fund. Water Revenue Bond Fund — WT Plant - This fund is a debt service fund to pay the bonds that were issued to construct the water treatment plant. Revenue from the water and sewer bills provides the funding for the bond payments which occur semi - annually in June and December of each year. Upon demand the funds are transferred from the Sewer and Water Fund. Tax Increment Funds - The Tax Increment Fund represents an accumulation of funds such as bond proceeds and project administration fees charged to companies requesting project write- downs in the form of tax increment financing for new and/or redevelopment. The TIF district property taxes are then deposited in a number of tax increment funds established to track their respective revenue. Revolving Equipment Fund - A regular replacement schedule for equipment needs of the City in excess of $5,000 has been adopted. Periodic fund transfers are appropriated to provide a funding source for the acquisition and purchase of new and replacement vehicles and equipment. The long term effect of appropriating fund transfer is to mitigate property tax increases and eliminate debt financing. Building - The funds within the Building Fund are reserved for future building needs. This Fund was closed on 08/15/2011 per council resolution #11 -100. Revolving Park Equipment Fund — This Fund was established in 2009 in conjunction with the Park Equipment Replacement Plan to fund replacement of park equipment. Facilities Management Fund — This Fund was established on 08/15/2011 per council resolution #11 -100 in conjunction with the Facilities Management Plan (FMP). The IMP provides a schedule of major repairs, replacements and upgrades to all of the City facilities. Construction Fund - Construction Fund dollars represent unexpended bond proceeds that are reserved to pay for improvement projects that have been approved by the City Council on an annual basis. For the most part, these moneys are necessary to complete outstanding construction contracts and related engineering and professional services. Street Oversize Fund - The Collector Street Fund consists of dedicated revenue generated by fees associated with new development and new construction building permits for the purpose of funding pedestrian related improvements i.e., bikeways, sidewalks, trail systems plus right of way acquisition along collector streets and occasional collector street links. Trunk Reserve Fund - The Trunk Reserve Fund consists of dedicated revenue generated from utility connection permits and acreage fees assessed at time of sewer and water installation for the purpose of recovering trunk oversizing costs and central municipal system improvements i.e., wells lift stations, force mains, etc. These dollars are programmed throughout the course of the City's capital improvement plan. Water Storage Fund - The Water Storage Fund accounts for the water tower fee that is charged and collected on building permits. This fund balance is 100% reserved for the construction of elevated and ground water storage facilities. Debt Service Funds - The Debt Service Fund represents prepayments of special assessments, property tax collections and special levies needed to pay the outstanding bonded indebtedness of the City. This fund balance is 100% reserved for the payment of bond principal and interest. Agency Fund - The Agency Fund accounts for the $1500 residential building permit deposit that is refunded to the building contractor upon final inspection. This provides the City the required financial assurance that the property site will be adequately cleaned up and debris free before an occupancy permit is granted. OF PRIOR City of Prior Lake U Treasurers Report b, October, 2011 Fund 1011/2011 10/31/2011 Fund Type & Name No. Balance Receipts Disbursements Balance Business -Type Funds $ - $ - $ 45,288.16 225 146,557.47 Water Fund 601 $ 2,187,281.02 $ 728,033.49 $ 149,547.78 $ 2,765,766.73 Sewer Fund 604 2,303,649.38 391,203.93 182,884.73 2,511,968.58 Water Quality Fund 602 136,916.87 66,435.20 68,734.95 134,617.12 Transit Fund 603 1, 724, 958.62 66, 861.50 81, 993.80 1, 709, 826.32 Total Business -Type Funds 6,725.00 $ 6,352,805.89 $ 1,252,534.12 $ 483,161.26 $ 7,122,178.75 Governmental -Type Funds General Fund Special Revenue Funds Cable Franchise Fund Capital Park Fund Severance Compensation EDA Special Revenue Econ Dev Federal Revolving Loan Func Econ Dev MN Revolving Loan Fund Developer Agreement Fund Total Special Revenue Funds Capital Project Funds Downtown Redevelopment Fund Tax Increment TIF #1 -3 TIF #3 -1 TIF #4 -1 TIF #5 -1 TIF #6 -1 Revolving Equipment Fund Building Fund Revolving Park Equipment Fund Facilities Management Fund Construction Fund Trunk Reserve Fund Street Oversize Fund Water Storage Fund Total Capital Project Funds Debt Service Funds Agency Fund Total Governmental Type Funds Total All Funds Investment Pool & Ratio 101 $ 7, 074, 012.15 $ 1, 295, 827.67 $ 2,198, 918.71 $ 6,170, 921.11 210 $ 45,288.16 $ - $ - $ 45,288.16 225 146,557.47 3,984.28 203.06 150,338.69 230 545,328.64 2,621.58 - 547,950.22 240 337,361.00 522.74 2,440.76 335,442.98 250 - - - - 255 - - - - 260 703,496.55 6,725.00 19,252.84 690,968.71 $ 1, 778, 031.82 $ 13, 853.60 $ 21, 896.66 $ 1, 769, 988.76 256 $ - $ - $ - $ - 402 177, 526.98 275.90 760.00 177, 042.88 413 113, 073.06 176.48 - 113, 249.54 414 48,436.54 75.60 - 48,512.14 415 3,437.91 5.37 - 3,443.28 416 2,571.13 4.01 - 2,575.14 417 93,639.16 146.15 - 93,785.31 410 1, 432, 861.22 20, 366.04 44, 022.64 1, 409, 204.62 420 - - - - 430 213,761.01 333.63 - 214,094.64 440 432,418.43 674.91 - 433,093.34 501 2,795,193.26 30,889.27 604,796.51 2,221,286.02 502 1,230,510.51 12,436.95 - 1,242,947.46 503 433, 388.03 676.43 - 434, 064.46 505 315, 822.38 7,503.86 - 323, 326.24 $ 7,292,639.62 $ 73,564.60 $ 649,579.15 $ 6,716,625.07 5xx $ 3,178,052.91 $ 65,384.18 $ - $ 3,243,437.09 801 $ 187, 600.00 $ 10, 500.00 $ 21, 000.00 $ 177,100.00 $ 19, 510, 336.50 $ 1,459,130.05 $ 2, 891, 394.52 $ 18, 078, 072.03 $ 25,863,142.39 $ 2,711,664.17 $ 3,374,55 $ 25,200,250.78 $ 24,919,615.15 98.89% This report does not reflect financial obligations from contracts, agreements, purchases, services received, etc. 0 PRIpP City of Prior Lake Treasurers Report October, 2011 Fund Type & Name Fund Balance Classification Constraints Business -Type Funds Water Fund Unrestricted Identified on utility bill for this purpose Sewer Fund Water Quality Fund Transit Fund Unrestricted Unrestricted Unrestricted Identified on utility bill for this purpose Identified on utility bill for this purpose Funds received for transit - related uses Governmental -Type Funds General Fund Special Revenue Funds Cable Franchise Fund Capital Park Fund Severance Compensation Unreserved Cashflow, emergencies, one -time opportunities Unreserved; Designated for Capital Outlay Statutory obligation to use for PEG access Unreserved; Designated for Improvements Contractually obligated; park dedication fees Reserved for Severance Compensation Reserved for Severance Compensation EDA Special Revenue Unreserved; Designated for Improvements Economic Development Econ Dev Federal Revolving Loan Fund Unreserved; Designated for Development Loans Economic Development Econ Dev MN Revolving Loan Fund Unreserved; Designated for Development Loans Economic Development Developer Agreement Fund Unreserved; Designated for Improvements Contractually obligated; Capital Project Funds Downtown Redevelopment Fund Tax Increment Unreserved; Designated for Improvements Unreserved; Designated for Improvements Unreserved; Designated for Improvements Unreserved; Designated for Improvements Unreserved; Designated for Improvements Unreserved; Designated for Improvements Unreserved; Designated for Improvements Unreserved; Designated for Capital Outlay Unreserved; Designated for Capital Outlay Identified for downtown building facade improvements Contractually obligated by tax increment agreements Contractually obligated by tax increment agreements Contractually obligated by tax increment agreements Contractually obligated by tax increment agreements Contractually obligated by tax increment agreements Contractually obligated by tax increment agreements Identif ied for equipment replacement Identified for funding Facilities Management Plan (future) TIF #1 -3 TIF #3 -1 TIF #4 -1 TIF #5 -1 TIF #6 -1 Revolving Equipment Fund Building Fund Revolving Park Equipment Fund Facilities Management Fund Construction Fund Trunk Reserve Fund Street Oversize Fund Water Storage Fund Debt Service Funds Unreserved; Designated for Capital Outlay Identified for park equipment replacement Unreserved; Designated for Capital Outlay Identified for funding Facilities Management Plan Unreserved; Construction projects in progress Unreserved; Contractually obligated by developer agreements Unreserved; Contractually obligated by developer agreements Unreserved; Contractually obligated by developer agreements Reserved for Debt Service Reserved for contractually obligated debt service Agency Fund N/A Escrows to be reimbursed to depositors