|The transfers which affect 2017 are as follows:
General Fund to the Retirement Insurance Fund--$365,000. This is a budgeted transfer, which when combined with other revenues and the fund balance in the Retirement Insurance Fund, will fund the actuarial requirement for health insurance benefits for qualified retired police and firefighters.
General Fund to the Facilities Construction Fund--$1,400,000. City policy is to maintain an unassigned fund balance in the General Fund of at least 45% of the following year expenditures and transfers. Based on 2017 financial results and 2018 budgeted amounts, sufficient funds are available for this transfer while adhering to the fund balance policy. The excess of revenues over expenditures was due to the following variances:
Expenditures: 2017 actual expenditures for personal services was $22,695,000 which was ($809,000) less than the 2017 budgeted amount of $23,504,000, primarily due to various vacancies throughout the year.
Revenues: 2017 actual revenue for building permits was $1,637,000 which was $893,000 over the 2017 budgeted amount of $744,000, primarily due to the hail storm in July of 2017. General property tax revenue was $19,624,000 which was $264,000 less than the budgeted amount of $19,888,000 due to various uncollected delinquent taxes which occur every year.
Lodging Tax Fund to the General Fund--$13,709. The three percent lodging tax collected by hotels and motels in the City is recorded in the Lodging Tax Fund. The City remits 95% of the payments received to Minnesota Metro North Tourism and retains five percent which is transferred to the General Fund to defray administrative expenses.
Senior Activity Fund to the General Fund--$10,000. This budgeted transfer is from earnings on trips accounted for in the Senior Citizen Activity Fund and covers related administrative costs in the General Fund.
Park Improvement Bonds Fund to the Park Improvement Fund--$535,935. Tax levies for the referendum approved park improvement bonds began in 2014. Since the first year of principal and interest payments on the bonds was not due until 2016, a portion of these previous levies can be used to pay for park improvements directly and there will be a corresponding decrease in the amount of bonds that need to be issued to get to the total of $17,400,000 for improvements.
Equipment Certificate Debt Service Fund to the Equipment Certificate Capital Projects Fund--$171,161. Available funds in the Debt Service Fund are used toward the cost of fire trucks in the Capital Projects Fund instead of issuing equipment certificates.
Revolving Construction Fund to the General Fund--$37,873. Several recent street reconstruction projects included streets bordering City parks. Therefore, the City is responsible for paying its portion of the assessments for those projects. The assessment revenue goes in the Improvement Bonds Funds to repay the bonds. This transfer will reimburse the General Fund.
Revolving Construction Fund to the Street Reconstruction Fund--$257,121. The balance of revenues over expenditures in the Revolving Construction Fund contributes to the seal coating program and the City's portion of street reconstruction costs.
Insurance Reserve Fund to the Retirement Insurance Fund--$45,966 Prior year interest income in the Insurance Reserve Fund contributes toward the funding of the liability of other post employment benefits.
Various Improvement Bond Funds to the Revolving Construction Fund --$1,616,906 Excess funds are available in the Improvement Bond Funds to assist with funding of t he Hanson Boulevard railroad overpass. A detailed breakdown of the various Improvement Bond Fund transfers can be found on the attached resolution 18-61.
Various transfers as follows are needed so the funding or expenditures from certain construction projects or other items are in the proper fund or to close funds which are no longer needed:
Various funds to/from the Compensated Absences Fund--$164,827. Compensated absences (unused sick/vacation balances) for the non-enterprise funds are accounted for in the Compensated Absences Fund. To fully fund the liability of $2,453,825 in this fund as of December 31, 2017, the following transfers are needed to cover the 2017 change in each fund’s liability: $155,000 from the General Fund, $18 to the Public Communications Fund and $1,280 from the HRA Capital Projects Fund, and $8,529 to the Retirement Insurance Fund.
- 2008 Improvement Bonds Fund to the Special Assessment Bonds to redirect assessments--$18,863
- 1995 Improvement Bonds Fund to the 2008 Improvement Bonds Fund to redirect assessments--75,000
- 2005 Improvement Bonds Fund closed to 2010 Improvement Bonds Fund--$225,539
- 2017 Improvement Bonds Fund to the 2017 Bonded Project Fund to redirect assessments--$2,025,210
- 2016 Bonded Projects Fund closed to the 2017 Bonded Project fund--$1,704,265
- 2017 Bonded Project Fund to the Revolving Construction fund to redirect assessments--$126,263
- Insurance Reserve Fund to Capital Equipment Fund to reimburse for police vehicle--$27,104
Sidewalk Fund to the Park Improvement Fund--$300,000. Funds were budgeted in the Sidewalk Project Fund to help pay for the new Boulevard Plaza. Since all of the costs were accounted for in the Park Improvement Fund, the $300,000 should be transferred to that fund.
In addition to requested transfers, staff recommends a budget amendment for the Park Improvement Funds.
Council is being asked to approve Resolution 18-62 for a budget amendment to the 2017 Park Improvement Fund to cover additional construction costs associated with Boulevard Plaza. Overall project costs were estimated to be $1,060,000. The 2017 budget includes $490,000 of park bond referendum funds. Funds were budgeted in the Sidewalk Fund to help pay for the new Boulevard Plaza which staff recommends moving to the Park Improvement Fund. The remaining $270,000 was needed to complete design and construction costs as well as purchasing playground equipment. There is available fund balance in the Park Improvement Fund to cover the additional $270,000.