HomeMy WebLinkAbout05(B) - Resolution Authorizing 2025 Year End Transfers Report
ITEM: 5B
CITY COUNCIL AGENDA REPORT
MEETING DATE: March 24, 2026
PREPARED BY: Jason Etter, Accounting Manager
PRESENTED BY: Nicole Klekner, Finance Director
AGENDA ITEM: Adopt Resolution Authorizing 2025 Year End Transfers
RECOMMENDED ACTION:
Approval of 2025 year-end transfers.
BACKGROUND:
During the process of closing the financial records for 2025, 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 payments have been made. Such transfers need to be approved by the City
Council through a resolution. The details of the recommended year-end transfers are shown
below. Additionally, 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 recommend that these balances be transferred as noted in the table below.
Transfer From Fund Amount Transfer to Fund Description
F562 – US Bank/GESP 2,838.48 F568 – 2017 Street and The final debt service payment
Lease Capital Improvements for Fund 562 was made on June
13, 2025. Close Fund 562 and
transfer all residual balances to
F568
Conclusion
Staff recommends the transfer shown in the table to close the financial records for 2025.
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
Item 5B
Page | 2
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
expenditure.
ALTERNATIVES:
1. Motion and second as part of the consent agenda to approve the resolution approving the
2025 Year End Transfers.
2. Remove this item from the consent agenda for additional discussion.
ATTACHMENTS:
1. Resolution - Adopt Resolution Authorizing 2025 Year End Transfer
Transfer From Fund Amount Transfer to Fund Description
F562 – US Bank/GESP 2,838.48 F568 – 2017 Street and The final debt service payment
Lease Capital Improvements for Fund 562 was made on June
4646 Dakota Street SE
13, 2025. Close Fund 562 and
Prior Lake, MN 55372
transfer all residual balances to
RESOLUTION 26-
F568
RESOLUTION AUTHORIZING 2025 YEAR END TRANSFERS
Motion By: Second By:
WHEREAS, during the process of closing the financial records for 2025, transfers may be
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, etc. Transfers may also be necessary to close debt service funds
after final debt service payment has been made, or to consolidate funds.
WHEREAS, the final debt service payments were made in Fund 562 in June 2025. The debt
service funds can now be closed, and residual balances transferred as detailed
in the table below.
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 is hereby authorized and effective as outlined in the tables below.
Close Debt Service Fund effective as of 12/31/2025:
Passed and adopted by the Prior Lake City Council this 24th day of March 2026.
VOTE Briggs Braid Churchill Lake Hellier
Aye
☐
☐ ☐ ☐ ☐
Nay
☐ ☐ ☐ ☐ ☐
Abstain
☐ ☐ ☐ ☐ ☐
Absent
☐ ☐ ☐ ☐ ☐
______________________________
Jason Wedel, City Manager