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4646 Dakota Street SE
'yJ SO'le" Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: AUGUST 24, 2015
AGENDA#: 5B
PREPARED BY: CATHERINE ASMUS, ACCOUNTANT
PRESENTED BY: DON URAM, FINANCE DIRECTOR
AGENDA ITEM: CONSIDER APPROVAL OF JULY, 2015 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 July, 2015.
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 the business-type funds may have
an "unrestricted" fund balance and the General Fund may have an
"unassigned" fund balance, it does not necessarily mean that the balance is
available to appropriate to other funds for other uses. There are
constraints in place due to the type of fund or based on the City's fund
balance policy.
Current Circumstances
Staff has prepared a preliminary summary of the activity in the funds for the
month of July, 2015. The Treasurer's Report reflects beginning cash
balance, receipts, disbursements, and the ending cash balance for each
fund.
The Report is preliminary, unaudited and will change.
The attached memorandum provides a summary of the fund descriptions.
If Council members have questions, please feel free to contact me at 952-
447-9842 for more information.
ALTERNATIVES: 1. A motion and second as part of the consent agenda to approve the
July, 2015 Treasurer's Report as submitted.
2. Take no action and provide the staff with specific direction.
RECOMMENDED Alternative#1.
MOTION:
ATTACHMENTS: 1. City of Prior Lake July, 2015 Treasurer's Report
2. Treasurer's Report Fund Descriptions
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City of Prior Lake
u Treasurers Report
4 bsot" July, 2015
Fund 7/1/2015 7/31/2015
Fund Type& Name No. Balance Receipts Disbursements Balance
Business-Type Funds
Water Fund 601 $ 2,313,744.70 $ 83,967.41 $ 215,653.24 $ 2,182,058.87
Sewer Fund 604 1,315,183.15 36,876.54 233,922.74 1,118,136.95
Water Quality Fund 602 479,876.55 10,904.76 39,082.58 451,698.73
Transit Fund 603 798,797.67 382.13 0.00 799,179.80
Total Business-Type Funds $ 4,907,602.07 $ 132,130.84 $ 488,658.56 $ 4,551,074.35
Governmental-Type Funds
General Fund 101 $ 7,415,842.26 $ 711,364.69 $ 1,210,978.77 $ 6,916,228.18
Special Revenue Funds
Cable Franchise Fund 210 $ 66,092.31 $ - $ - $ 66,092.31
Capital Park Fund 225 660,991.11 48,650.09 470.00 709,171.20
EDA Special Revenue 240 172,025.79 825.93 13,468.86 159,382.86
Econ Dev Federal Revolving Loan Fund 250 119,108.57 56.98 0.00 119,165.55
Econ Dev MN Revolving Loan Fund 255 92,493.97 44.25 0.00 92,538.22
Developer Agreement Fund 260 1,229,864.17 50,132.50 3,633.85 1,276,362.82
Total Special Revenue Funds $ 2,340,575.92 $ 99,709.75 $ 17,572.71 $ 2,422,712.96
Capital Project Funds
Tax Increment 402 $ 76,415.18 $ 835.79 $ 2,400.00 $ 74,850.97
TIF#1-3 413 141,710.63 52.28 32,421.61 109,341.30
TIF#3-1 414 113,579.08 38.87 32,331.43 81,286.52
TIF#4-1 415 0.00 0.00 33.00 - 33.00
TIF#5-1 416 11,657.63 2.83 5,743.78 5,916.68
TIF#6-1 417 348,888.82 104.46 130,532.58 218,460.70
TIF#1-4 418 3,982.26 0.18 3,615.98 366.46
Revolving Equipment Fund 410 854,039.47 35,147.57 36,797.81 852,389.23
Revolving Park Equipment Fund 430 389,053.44 186.12 0.00 389,239.56
Facilities Management Fund 440 672,811.07 315.45 13,409.00 659,717.52
Construction Fund 501 11,027,457.61 37,938.70 840,558.08 10,224,838.23
Trunk Reserve Fund 502 1,160,079.45 221,178.98 1,000.00 1,380,258.43
Street Oversize Fund 503 539,862.28 80,640.70 0.00 620,502.98
Water Storage Fund 505 1,045,189.02 11,505.26 0.00 1,056,694.28
Total Capital Project Funds $ 16,384,725.94 $ 387,947.19 $ 1,098,843.27 $ 15,673,829.86
Debt Service Funds 5xx $ 2,585,305.55 $ 28,778.21 $ - $ 2,614,083.76
Agency Fund 801 $ 494,523.50 $ 23,000.00 $ 64,000.00 $ 453,523.50
Total Governmental Type Funds $ 29,220,973.17 $ 1,250,799.84 $ 2,391,394.75 $ 28,080,378.26
Internal Service Fund 701 $ 497,553.90 $ 2,128.57 $ - $ 499,682.47
Total All Funds $ 34,626,129.14 $ 1,385,059.25 $ 2,880,053.31 $ 33,131,135.08
Investment Pool & Ratio as of 7/31/2015 99.39% $ 32,930,577.61
This report does not reflect financial obligations from contracts, agreements, purchases, services received, etc.
0 City of Prior Lake
1 Treasurers Report
July, 2015
Fund Type&Name Fund Balance Classification Constraints
Business-Type Funds
Water Fund Unrestricted Identified on utility bill for this purpose
Sewer Fund Unrestricted Identified on utility bill for this purpose
Water Quality Fund Unrestricted Identified on utility bill for this purpose
Transit Fund Unrestricted Funds received for transit-related uses
Governmental-Type Funds
General Fund Unassigned Cashflow,emergencies,one-time opportunities
Special Revenue Funds
Cable Franchise Fund Assigned for communications Statutory obligation to use for PEG access
Capital Park Fund Assigned for capital improvements Contractually obligated;park dedication fees
EDA Special Revenue Assigned for development Economic Development
Econ Dev Federal Revolving Loan Fund Restricted for economic development Economic Development
Econ Dev MN Revolving Loan Fund Restricted for economic development Economic Development
Developer Agreement Fund Assigned for development Contractually obligated;
Capital Project Funds
Tax Increment Restricted for tax increment Contractually obligated by tax increment agreements
TIF#1-3 Restricted for tax increment Contractually obligated by tax increment agreements
TIF#3-1 Restricted for tax increment Contractually obligated by tax increment agreements
TIF#4-1 Restricted for tax increment Contractually obligated by tax increment agreements
TIF#5-1 Restricted for tax increment Contractually obligated by tax increment agreements
TIF#6-1 Restricted for tax increment Contractually obligated by tax increment agreements
Revolving Equipment Fund Assigned for capital improvements Identified for equipment replacement
Revolving Park Equipment Fund Assigned for capital improvements Identified for park equipment replacement
Facilities Management Fund Assigned for capital improvements Identified for funding Facilities Management Plan
Construction Fund Restricted for capital improvements Construction projects in progress
Trunk Reserve Fund Assigned for capital improvements Contractually obligated by developer agreements
Street Oversize Fund Assigned for capital improvements Contractually obligated by developer agreements
Water Storage Fund Assigned for capital improvements Contractually obligated by developer agreements
Debt Service Funds Restricted for Debt Service Reserved for contractually obligated debt service
Agency Fund N/A Escrows to be reimbursed to depositors
Internal Service Fund Unrestricted Identified as payment for severance compensation
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.
Water Fund - The Water Fund accounts for the collection of water billing utility revenue. This
enterprise fund balance is allocated for the operational costs of the Water departments and
normally reserved for large capital municipal system expenses.
Sewer Fund - The Sewer Fund accounts for the collection of sewer billing utility revenue. This
enterprise fund balance is allocated for the operational costs of the Sewer department and
normally reserved for large capital municipal system expenses.
Water Quality Fund- The Storm Water Fund is an enterprise account funded by the $11.25 storm
water charge that is generated on the bi-monthly water and sewer 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. Transit operations have been transferred to
the Minnesota Valley Transit Authority(MVTA) in 2015.
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.
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.
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.
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 FMP 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 $2500 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.
Severance Compensation Fund — This Internal Service Fund was established on 12/31/2011 to
replace the Severance Compensation Fund (Special Revenue Fund) in conjunction with the
implementation of GASB Statement No. 54. 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.