HomeMy WebLinkAbout05(D) - Resolution Authorizing 2022 Year End Transfers ReportCITY COUNCIL AGENDA REPORT
MEETING DATE:
PREPARED BY:
PRESENTED BY:
AGENDA ITEM:
March 20, 2023
Jason Etter, Senior Accountant
Cathy Erickson, Finance Director
Cathy Erickson
Resolution Authorizing 2022 Year End Transfer
RECOMMENDED ACTION:
Approval of 2022 year-end transfers
BACKGROUND:
ITEM: 5D
During the process of closing the financial records for 2022 transfers may become necessary to
account for project balances in the construction fund that have partial funding from the utility funds,
balances that can be transferred to a debt service fund or another project in accordance with the
applicable bond resolution. Transfers may also be necessary to close debt service funds after
final debt service payment has been made. Such transfers need to be approved by the City
Council through resolution. The details of the recommended year-end transfers are shown below.
Close Debt Service Fund 569: The final transfer is to close Debt Service Fund 569 and transfer
all residual balances. The final debt service payment was made in December 2022. The debt
service fund can now be closed. There are residual balances in cash of $12,308.04, as well as
market value adjustment for investments, receivables for interest, special assessments, and
taxes. A transfer of $11,721.39 will close out all residual balances.
Minnesota State Statute 475.61, subd (4a) addresses surplus funds arising from taxes levied to
pay municipal debt:
Subd. 4. Surplus funds.
(a)All such taxes shall be collected and remitted to the municipality by
the county treasurer as other taxes are collected and remitted, and shall be
used only for payment of the obligations on account of which levied or to
repay advances from other funds used for such payments, except that any
surplus remaining in the debt service fund when the obligations and interest
thereon are paid may be appropriated to any other general purpose by the
municipality.
Staff is recommending that that these balances be transferred to Fund 450 which is the
Permanent Improvement Revolving (PIR) Fund for street overlay projects. These funds can be
applied toward future street overlay project costs.
City of Prior Lake I 4646 Dakota Street SE I Prior Lake MN 55372
Project Transfer From Amount
Fund
Debt Service -F569 -2017
2017 Mill and Mill and 11,721.39
Overlay Overlay
Improvements Improvements
Conclusion
Transfer to Fund
F450 -PIR Fund for
Street Overlay
Projects
Description
The final debt
Item 5D
Page 12
service payment for
Fund 569 was made
on December 15,
2022. Close Fund
569 and transfer all
residual balances to
F450.
Staff recommends the transfer shown in the table to close the financial records for 2022.
FINANCIAL IMPACT:
In general, transfers of excess funds to debt service funds help keep the debt service component
of the City's tax levy flat. The other transfers appropriately match revenue with related
expenditures.
ALTERNATIVES:
1.Motion and second as part of the consent agenda to approve the resolution approving the
2022 Year End Transfer.
2.Remove this item from the consent agenda for additional discussion.
ATTACHMENTS:
1.Resolution -Adopt Resolution Authorizing 2022 Year End Transfer