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HomeMy WebLinkAbout2022-079RESOLUTION NO. 2022-79 TRANSFER FUND BALANCE TO THE GOVERNMENTAL EQUIPMENT FUND 431 AND THE GOVERNMENTAL BUILDINGS FUND 411 IN THE AMOUNT OF $2,000,000 AND $3,331,655 RESPECTIVELY, FROM THE CITY AND ECONOMIC DEVELOPMENT AUTHORITY FUNDS LISTED HEREIN Section A WHEREAS, the City Council of the City of Columbia Heights adopted resolution 95-40 establishing a fund balance threshold for working capital purposes for its General Fund and its Library Fund; and WHEREAS, the Minnesota Office of the State Auditor has established a similar guideline for cities to apply to all operating funds generally, because retaining more fund balance that necessary for operations is a burden on taxpayers; and WHEREAS, the operating funds of the City and Economic Development Authority (EDA) listed in Exhibit A currently have fund balance above these thresholds, in the amounts listed in Exhibit A; and WHEREAS, best financial practices include pairing the one-time source of such available fund balances with appropriate one-time uses, such as purchases of capital equipment through the City's Governmental Equipment Fund 431; and Section B WHEREAS, the City Council of the City of Columbia Heights adopted resolution 2022-67 establishing a project budget of $400,000 for fencing at the Columbia Heights Public Safety Center within the Governmental Buildings Fund 411; and WHEREAS, the funding source described in resolution 2022-67 for this project is available surplus currently within the City's General Fund from prior year budgets of the Police Department as listed in Exhibit A; and Section C WHEREAS, the EDA carried out a redevelopment project at 3989 Central Avenue NE for multiple public purposes including securing a site for a new city hall; and WHEREAS, this project resulted in the EDA receiving certain assets listed in Exhibit A from the developer; and WHEREAS, not intending to own the new city hall or any of its related assets, the EDA elects to transfer these assets to the City for construction of the new city hall; and Section D NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Columbia Heights authorizes the transfer of fund balance to the Governmental Equipment Fund 431 and the Governmental Buildings Fund 411 in the amount of $2,000,000 and $3,331,655 respectively, from the City and Economic Development Authority funds listed in attached Exhibit A, in the amounts listed therein, and amends the 2022 budget accordingly. Passed this 12th day of September 2022 Offered by: Murzyn, Jr. Seconded by: Novitsky Roll Call: All Ayes , 4WII , zz - L-im-kyor Amada Marquez Simula Kelli Bourg& s, City Manager RESOLUTION NO. 2022-79 EXHIBIT A Section A. Surplus operating fund balances over working capital policy thresholds General Fund 101 Special Projects Fund 226 Cable Televison Fund 225 EDA Admin Fund 204 Library Fund 240 Liquor Fund 609 Insurance Fund 884 $ 800,000 225,000 225,000 150,000 150,000 225,000 225,000 Transfer to Governmental Equipment Fund 431 $2,000,000 Section B. Fund balance from prior years Police Department budget surplus General Fund 101: Reference Resolution 2022-67 Public Safety Center Fencing $ 400,000 Section C. Fund balance from EDA sale of 3989 Central Avenue NE EDA Redevelopment Fund 408: Noncash value of office condominium shell to be constructed 2,115,600 Cash deposited to City Hall Construction Escrow Account at closing 421,748 Cash deposited with EDA at closing, in excess of EDA land cost 394,307 Transfer to Governmental Buildings Fund 411 $3,331,655