HomeMy WebLinkAbout9B 2015 Year End Transfer-Crest Ave Report
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4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: FEBRUARY 22, 2016
AGENDA #: 9B
PREPARED BY: DON URAM, FINANCE DIRECTOR
PRESENTED BY: DON URAM
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING 2015
YEAR END TRANSFER FROM THE CONSTRUCTION FUND TO THE
DEBT SERVICE FUND FOR THE CREST AVENUE REHABILITATION
PROJECT.
DISCUSSION: Introduction
During the process of closing the financial records for 2015, transfers are
often necessary to account for construction fund project balances which
exist at the conclusion of the project. Such transfers need to be approved
by the City Council before the proceeds can be transferred to another fund.
History
Bonds were issued in 2014 for the Crest Avenue Rehab Street
Reconstruction Project. The 2014A bond resolution No. 14-127 indicates
that, if upon completion of the Street Reconstruction Improvements there
shall remain any unexpended balance in the Construction Fund, the
balance may be transferred by the Council to the Debt Service Fund for the
Crest Avenue Rehab Street Reconstruction Project.
Current Circumstances
The Crest Ave Rehab project (Fund 501-Project TRN14-000002) has bond
proceeds in excess of project costs. This excess project balance of
$135,075.69 is due to project costs coming in under budgeted projections
which was what to total bonded dollar amount is based upon.
Conclusion
Staff recommends the transfer of the excess project balance in the
Construction Fund for the 2014A (Crest Avenue Rehab) Debt Service Fund
561.
ISSUES: This transfer needs to be approved by the City Council before the
proceeds can be transferred to the specific Fund 561 Debt Service fund.
Transferring the funds to the Debt Service Fund is in accordance with the
2014A bond resolution No. 14-127.
FINANCIAL
IMPACT:
In general, transfers of excess funds to debt service funds as proposed
herein help keep the debt service component of the City’s tax levy flat or at
least less than originally contemplated.
2
ALTERNATIVES:
1. Approve a resolution authorizing the transfer of the remaining
fund balance ($135,075.69) from the Crest Avenue Rehab project
(Fund 501- Project TRN14-000002) Construction Fund to the Crest
Avenue Rehab 2014A Bond Debt Service Fund 561.
2. Deny this item for a specific reason and provide Staff with direction.
RECOMMENDED
MOTION:
Staff recommends Alternative #1.
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 16-XXX
A RESOLUTION AUTHORIZING THE TRANSFER OF UNEXPENDED FUNDS FROM THE
CONSTRUCTION FUND FOR THE CREST AVENUE STREET RECONSTRUCTION PROJECT TO THE
CREST AVENUE RECONSTRUCTION PROJECT DEBT SERVICE FUND
Motion By: Second By:
WHEREAS, Bonds were issued in 2014 for the Crest Avenue Rehab Street Reconstruction Project.
WHEREAS, The 2014A bond resolution No. 14-127 indicates that, if upon completion of the Street
Reconstruction Improvements there shall remain any unexpended balance in the Construction
Fund, the balance may be transferred by the Council to the Debt Service Fund for the Crest
Avenue Rehab Street Reconstruction Project.
WHEREAS, The Crest Ave Rehab project (Fund 501-Project TRN14-000002) has bond proceeds in excess
of project costs. This excess project balance of $135,075.69 is due to project costs coming in
under budgeted projections.
WHEREAS, Transfers of excess funds to debt service funds help keep the debt service component of the
City’s tax levy flat.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The transfer of funds of $135,075.69 is hereby authorized to be made from the Construction Fund
(501-43500.00 project TRN14-000002) to the 2014A (Crest Avenue Rehab) Bond Debt Service Fund
561 effective as of December 31, 2015.
PASSED AND ADOPTED THIS 22th DAY OF February 2016.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager