The URL can be used to link to this page

Home My WebLink About5G Forfeiture Fund Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 14, 2016 AGENDA #: 5G PREPARED BY: DON URAM, FINANCE MARK ELLIOTT, POLICE CHIEF PRESENTED BY: DON URAM AND MARK ELLIOTT AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING THE POLICE FORFEITURE FUND DISCUSSION: Introduction This agenda item asks the City Council to adopt a resolution creating a new fund (Forfeiture Fund), transfer existing forfeiture funds from the General and Revolving Equipment Funds to the new fund, and authorize the City Manager to expend money from the fund in accordance with City Code Section 106 subsection 106.500 (Purchases and Acquisitions). The purpose of this is to allow the Police and Finance departments the ability to easily track revenues and expenditures in accordance with Minnesota’s forfeiture laws. This is important because MN Statutes specifies where the money can be spent depending on the type of forfeiture, either criminal or DWI. History Minnesota law provides that in certain criminal (most having to do with drug violations) and Driving while Intoxicated crimes the offending party may forfeit their right to the property involved in the crime(s). These provisions are intended as additional deterrents to future similar infractions. There are various formulas for the disposition of forfeited property described below by the type of infraction. In general, the property may be sold if it is not otherwise required by law to be destroyed and is not harmful to the public or it may be kept for official use by the law enforcement agency. The availability of these vehicles may help to reduce the number of vehicles requested through the revolving equipment fund. If criminal forfeiture property is sold, the proceeds must first be applied to satisfy valid liens, second to forfeiture sale expenses and if applicable, court-ordered restitution. The remaining sale proceeds are distributed according to the following formula:  70 percent to the appropriate agency (City of Prior Lake) for deposit as a supplement to its operating fund for use in law enforcement 2  20 percent to the prosecuting authority (Scott County) that handled the forfeiture for deposit as a supplement to its operating fund for prosecutorial purposes  10 percent of the money or proceeds must be forwarded within 60 days after resolution of the forfeiture to the (State of Minnesota) treasury and credited to the general fund Minnesota’s impaired driving law provides a special forfeiture procedure applicable to motor vehicles and recreational vehicles used to commit certain alcohol-related traffic offenses. If DWI forfeiture property is sold, the appropriate agency shall: 1. Sell the vehicle and distribute the proceeds after payment of seizure, towing, storage, forfeiture, and sale expenses, and satisfaction of valid liens against the property as follows; a. 70 percent of the proceeds must be forwarded to the appropriate agency (City of Prior Lake) for deposit to its operating fund for use in DWI-related enforcement, training, and education; and b. 30 percent of the proceeds must be forwarded to the prosecuting authority (Scott County) that handled the forfeiture for deposit to its operating fund for prosecutorial purposes. 2. Keep the vehicle for official use. If the agency keeps a forfeited motor vehicle, it shall make reasonable efforts to ensure that the vehicle is available for use by the agency's officers who participate in the drug abuse resistance education program. A report including the amount forfeited, the statutory authority for the forfeiture, the date of the forfeiture, a brief description of the circumstances involved, whether the forfeiture was contested, and other information is provided to the state auditor regularly. Current Circumstances The City has records going back to 1995 showing revenues and expenditures related to forfeitures. Beginning in 1995, both revenues and expenditures associated with “criminal” and “DWI” forfeitures were co- mingled in the General Fund. Starting in 2006, revenues and expenditures were co-mingled in the Revolving Equipment Fund. This was done because the purchases being made with forfeiture funds were equipment related. According to our records, we have collected over $525,000 since 1995 and have spent approximately $307,000. Currently there is a balance of $131,068.70 that is classified as “DWI” and a balance of $86,926.39 classified as “criminal”, for a total of $217,995.09. This amount includes $74,506.67 currently in the General fund and $143,488.52 in the Equipment Revolving fund (Attachment A). 3 Conclusion As stated earlier, staff is recommending the creation of a new fund with two accounts. This will allow the police department and finance staff the ability to track revenues and expenditures efficiently within the BS&A ERP system in accordance with State Statute. This change creates greater transparency in these financial matters. FINANCIAL IMPACT: Overall, there would be no financial impact since the money currently designated as “forfeiture” funds within the General and Revolving Equipment funds would continue to be used by the police department in accordance with state statute. The only difference is that the money would be consolidated in a new “Forfeiture” fund rather than in the General and Revolving Equipment Revolving funds. This purely accounting change would require a transfer of $74,506.57 from the General and a transfer of $143,488.52 from the Revolving Equipment fund. Expenditures of such funds would be accomplished as set forth in city code and the purchasing policy. ALTERNATIVES: 1. Approve a Resolution creating a Police Forfeiture Fund (xxx-xxxxx.xx), approving fund transfers of $74,506.57 from Fund 101 (General Fund) and $143,488.52 from Fund 410 (Equipment Revolving Fund) to the Police Forfeiture Fund, and authorizing the City Manager to expend money from the Fund in accordance with City Code Section 106 subsection 106.500 (Purchases and Acquisitions) as part of the consent agenda. 2. Remove this item from the consent agenda for discussion. RECOMMENDED MOTION: Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-XXX A RESOLUTION APPROVING THE CREATION OF A POLICE FORFEITURE FUND, AUTHORIZING TRANSERS FROM THE GENERAL AND REVOLVING EQUIPMENT FUNDS, AND AUTHORIZING THE CITY MANAGER TO EXPEND MONEY FROM THE FUND Motion By: Second By: WHEREAS, Minnesota law provides various formulas for the disposition of forfeited property including different formulas for criminal and DWI forfeitures and specific uses for each type of forfeiture. WHEREAS, WHEREAS, Proceeds from criminal forfeitures can be used for general law enforcement activities while proceeds from DWI forfeitures must be used for DWI related enforcement, training, and education. The City has tracked the revenues and expenditures for both types of forfeitures initially in the General fund and currently in the Equipment Revolving fund. WHEREAS, The City would like to consolidate the tracking of the funds from both criminal and DWI forfeitures into one fund to improve efficiencies and to ensure compliance with State statute. 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. A new fund titled Police Forfeiture Fund is created to track criminal and DWI forfeiture revenues and expenditures. 3. The transfer of funds into the Police Forfeiture Fund (xxx-xxxxx.xx) is hereby authorized to be made from the General Fund in the amount of $74,506.57 and from the Revolving Equipment Fund in the amount of $143,488.52, effective March 14, 2015. 4. The City Manager is authorized to expend money from the Fund in accordance with City Code Section 106 subsection 106.500 (Purchases and Acquisitions). PASSED AND ADOPTED THIS 14th DAY OF MARCH 2016. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager Revenue Expenditure Balance Revenue Expenditure Total 410-42100.06-XXXXX.XX 410-42100.06-XXXXX.XX 101 33,545.32 4,199.15 29,346.17 1995 - 2015 325,511.04 194,442.34 131,068.70 410 291,965.72 190,243.19 101,722.53 2016 325,511.04 194,442.34 131,068.70 131,068.70 325,511.04 194,442.34 131,068.70 Revenue Expenditure Balance Revenue Expenditure Total 410-42100.06-XXXXX.XX 410-42100.06-XXXXX.XX 101 55,729.50 10,569.10 45,160.40 1995 - 2015 199,514.62 112,588.23 86,926.39 410 143,785.12 102,019.13 41,765.99 2016 199,514.62 112,588.23 86,926.39 86,926.39 199,514.62 112,588.23 86,926.39 Grand Total 525,025.66 307,030.57 217,995.09 217,995.09 POLICE FORFEITURES DWI CRIMINAL DWI CRIMINAL