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Fe CASE # t AUTHORIZE TRANSFER OF GENERAL FUND REVENUES By: Diana Lund, Finance Officer Background: The City Council adopted a policy on February 22, 1994, known as the Excess Revenue Policy (Resolution 94-02-045 - Resolution Establishing a Financial Policy for the Purpose of Allocation of Excess/Deficient General Fund Reserves and amended this policy on October 26, 2004-Resolution #04-10-320) a copy of which is attached. After meeting the fund balance requirements at year end, $153,488.55 remained as excess revenues to be transferred from the General Fund. As stated in the policy, transfers from the General Fund would be made as such: Equipment Revolving Fund (10%) $ 15,348.85 Facilities Construction Fund (40%) $ 61,395.42 Public Improvement Revolving Fund (40%) $ 61,395.42 Park Trust Fund (10%) $ 15,348.86 At a council worksession on March 18, staff was directed to evaluate the financial aspect if the city was to potentially become involved with the purchase ofthe remaining 130 acres of Ramsey Town Center. Staff was told that an outside consulting source could assist in this matter. After contacting an outside consultant, it was determined that the scope of services requested ranged in price from $50-$60,000. Any funds towards an outside consultant are not currently included in the 2008 General Fund Budget. It is being proposed that staff retain $60,000 of the 2007 excess revenue to be used for the possible consulting services as listed above, or placed in the council contingency fund for unforeseen expenses in 2008. As council may recall, the contingency fund was reduced by $90,000 in 2008 to a balance of $52,000. If it is agreed upon that the $60,000 should be retained in the General Fund, the 2007 excess revenue would have a balance of $93,488.55. Per policy, transfers would be as such: Equipment Revolving Fund (10%) Facilities Construction Fund (40%) Public Improvement Revolving Fund (40%) Park Trust Fund (10%) Total $ 9,348,86 $ 37,395.42 $ 37,395.41 $ 9.348.86 $ 93,488.55 Funding Source: Per policy, any revenues in excess of expenditures at calendar end are to be transferred to the four respective funds.