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Home My WebLink About6.h. 2022 Interfund Transfers EXECUTIVE SUMMARY City Council Regular Meeting: March 21, 2023 AGENDA ITEM: 2022 Interfund Transfers AGENDA SECTION: Consent PREPARED BY: Teah Malecha, Finance Director AGENDA NO. 6.h. ATTACHMENTS: 2022 Transfers Schedule APPROVED BY: LJM RECOMMENDED ACTION: Motion to approve the 2022 interfund transfers. SUMMARY Each year the City transfers money between funds. Transfers of money occur for various reasons. The following provides a list of examples: • Funding for current projects. • Closing completed project funds. • Administrative transfers for arena operations. • Debt service payments for enterprise fund portions and TIF districts. • Funding for the Capital Improvement Plan (CIP) Funds: street, building, and equipment. The attached comprehensive schedule details the interfund transfers that occurred during 2022. The transfers are grouped into six color-coded categories. • Purple – Amounts highlighted in purple represent amounts that were included in the 2022 budget and transferred accordingly. • Yellow – The amounts in yellow include various transfers to close project funds for projects that have been completed. The funds are returned to the source that originally financed the project. • Maroon – The maroon amounts include transfers to fund projects which are paid for through the Street CIP Fund, special assessments, and various utility funds. • Orange – The amounts in orange are the transfers to create the TIF Spending Plan Fund that will be used for assisting private developments in line with the goals outlined in the Plan. • Green – This represents the transfer of the ARPA funds. • Blue – The amounts in blue are transfers of excess General Fund revenues. Per the Fund Balance Policy, surpluses exceeding 55 percent of the next year’s General Fund operating budget will be transferred out to be utilized for other City needs or projects. The estimated balance will be between 50 to 55 percent with these transfers. The excess transfers are to the Insurance Fund and Street CIP. The Insurance Fund pays for the City’s property/casualty and worker’s compensation premiums along with claims made throughout the year. There has been a vast increase to the worker’s compensation premiums mainly due to the 2019 change in legislation for PTSD claims. This is also being experienced by other cities in Minnesota. There is a bill being considered in the legislature that could help the impact that 2 cities are experiencing. This transfer is to fund the deficit for 2022 and provide some funding for 2023. Historically, $450,000 of the property tax levy has funded the Insurance Fund. These transfers have been completed annually as needed. This provides a clear picture to the City Council of the work performed internally. RECOMMENDATION Staff recommends approval of the 2022 interfund transfers. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 BC D E F G H I J K L M N O P Q R S T U V General Fund DUI Forfeiture Street CIP Insurance DUI Forfeiture TIF Spending Plan G.O. Series 2014A G.O. Series 2008A G.O. Series 2015A 2022 Pavement Mgmt Boulder Ave Extension Storm Water Utility 2015A Bonds Driver Ave & Trunk Sewer Ext Dunmore Lift Station 120th Street Drainage Improve Arena 2,802,220 11,704 2,972,064 100,000 62,969 2,720,000 68,000 200,000 100,000 1,156,170 255,247 28,816 178,000 726,852 42,376 146,218 130,000 8,886,712 Fund 101 102 203 206 208 230 330 381 384 466 469 603 612 628 629 630 650 Totals 3,030,000 101 - General Fund 2,800,000 100,000 130,000 3,030,000 62,969 102 - DUI Forfeiture 62,969 62,969 1,018,478 203 - Street CIP 1,018,478 1,018,478 11,704 208 - DUI Forfeiture 11,704 11,704 2,798,720 210 - Federal Grants 2,798,720 2,798,720 2,400,000 242 - TIF Downtown/Brock 2,100,000 200,000 100,000 2,400,000 175,000 381 - G.O. Series 2014A 175,000 175,000 445,000 384 - G.O. Series 2015A 445,000 445,000 123,901 412 - Addison Ave Imp 123,901 123,901 - 415 - Meadow Ridge 3rd - 76,979 431 - CSAH 38 Imp 48,163 28,816 76,979 - 601 - Water Utility - - 602 - Sewer Utility - 158,880 603 - Storm Water Utility 137,692 21,188 158,880 367,798 605 - Water Core 68,000 37,000 178,000 84,798 367,798 702,096 606 - Sewer Core 60,042 642,054 702,096 325,611 607 - Storm Core 158,205 21,188 146,218 325,611 - 629 - Dunmore Lift Station - 3,500 650 - Arena 3,500 3,500 - - - - - - - - - - - - - - 11,700,636 2,802,220 11,704 2,972,064 100,000 62,969 2,720,000 68,000 200,000 100,000 1,156,170 255,247 28,816 178,000 726,852 42,376 146,218 130,000 11,700,636 - - - Transfers per original 2022 budget Transfers to close funds. Additional transfers that occurred during the year to fund projects. Additional transfers to create TIF Spending Plan Transfer of allocated ARPA funds Transfer of excess General Fund TRANSFERS IN T R A N S F E R S O U T ( 7 3 1 0 )