Laserfiche WebLink
FC CASE <br /> <br />AUTHORIZE TRANSFER OF GENERAL FUND REVENUES <br /> By: Diana Lund, Acting Finance Officer <br /> <br />Background: <br /> <br />The City Council adopted a policy on February 24, 1992, known as the Excess Revenue Policy <br />(Resolution 94-02-045 - Resolution Establishing a Financial Policy for the Purpose of Allocation <br />of Excess/Deficient General Fund Reserves) a copy of which is attached. <br /> <br />After meeting the fund balance requirements at year end, $813,270.26 remained as excess <br />revenues to be transferred from the General Fund. As stated in the policy, transfers from the <br />General Fund would be made as such: <br /> <br />Equipment Revolving Fund (10%) <br />Facilities Construction Fund (40%) <br />Public Improvement Revolving Fund (50%) <br /> <br />$ 81,327.03 <br />$ 325,308.10 <br />$ 406,635.13 <br /> <br />In examining the year-end fund balances for the above mentioned funds, they are all showing <br />very positive ending balances before the year-end transfer. <br /> <br />The financial question that the City is being faced with, is how to finance the State Highway 47 <br />project and the County Road 116 project. A major percentage pertaining to these costs could be <br />offset by the revenue from the year-end General Fund Revenue transfer. <br /> <br />By allocating the excess revenue funds to these two projects, it would lesson the draw on other <br />funding sources such as MSA and utility trunk funds. It is still being recommended that tax <br />increments will be utilized as much as is feasible. <br /> <br />Recommendation: <br /> <br />Staff recommends that the entire amount of $813,270.26 be transferred from the General Fund to <br />the State Highway 47 project and the County Road 116 project. The percentage that would be <br />allocated to each project would be 90% or $731,943.23 for the State Highway 47 project and <br />10% or $81,327.03 for the County Road 116 project. <br /> <br />At Council discretion, any excess revenue remaining after the initial land purchase for County <br />Road 116, would be transferred to State Highway 47 at year end, 1998. <br /> <br />Committee: <br /> <br />Motion to recommend City Council to authorize the transfer of the General Excess Revenues to <br />the State Highway 47 and County Road 116 projects at the stated percentages. <br /> <br />Reviewed By: <br /> <br />City Administrator <br />Acting Finance Officer <br /> <br />FC: 4/14/98 <br /> <br /> <br />