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FC CASE # 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) a copy of which is attached. After meeting the fund balance requirements at year end, $650,965.94 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%) Facilities Construction Fund (40%) Public Improvement Revolving Fund (50%) $ 65,096.59 $260,386.38 $325,482.97 Of this excess, approximately $528,000 was attributed to Building permits, plan check fees, and billable time exceeding budgeted revenue. Due to the excessive excess, it will be questioned whether franchise fees were needed. It should be noted that year 2002 had excess revenues of approximately $500,000 that were retained in the General Fund to offset state cuts and reduction in property tax collections and not transferred to the three respective funds. Thus, a large portion of 2003 excess revenue is readily attributable to 2002. As for franchise fees, the City budgeted $404,000 in franchise fee revenue collections to balance the 2004 budget. A question that has been asked is that the City did not budget high enough for permits in 2004. The total amount budgeted for building permits, plan check fees, and billable time was $1,051,282 for budget year 2004. In comparison, year end 2003 showed a total of $1,095,323 collected for these same items. In February 2004, Council adopted a bond reimbursement resolution which would allow the City to be paid back for costs associated with the Park and Ride and City Hall. The PIR fund is responsible for the Park and Ride costs (for example - Jim Lasher-S35,000) until bonding mechanisms are in place. The City Hall could be funded from the Facility Construction fund for the costs associated with the visioning/schematic design process. At earlier meetings, Council had presented the idea of creating a Park Fund for future park maintenance costs above and beyond the currently budgeted General Fund Park Maintenance budget and a City Hall Fund. The City Hall Fund currently exists under the Facility Construction Fund. Council may choose to have a Park Fund created and transfer the portion that is designated to the Equipment Revolving Fund in the amount of $65,096.59 at a later date.