5E, Motion to Approve Interfund Transfers and Budge Adjustments for 2012

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� �`i D�EN HILLS MEMORANDUM DATE: July 30, 2012 TO: Honorable Mayor and City Council Members Patrick Klaers, City Administrator FROM: Sue Iverson, Director of Finance and Administrative Services SUBJECT: Interfund Transfers and Budget Adjustments for 2012 Back�round On July 9, 2012, staff discussed fund balances with the City Council at a worksession during a CIP discussion. At that time, two fund balance transfers were discussed and Council consensus was to bring them forward for approval. The first of these is a transfer of $188,893 from the PIR fund to the Park Fund to cover the remaining expenditures from the Safe Routes to School and Elmer L. Anderson trail project. While we used Park dedication fees and grants, there remains costs that we need to cover from the PIR Fund. The second is a transfer from the General Fund to the EDA Operating Fund of $124,955. This is the transfer of the Presbyterian Homes Conduit Debt Fee to the EDA Operating Fund to fund EDA activities until a permanent funding source is found. The EDA Operating Fund currently receives excess increment from the County as a result of the Round Lake TIF District. This will discontinue in 2015 when the district decertifies. In 2011, a tax petition on some properties in the district was settled and the amount of TIF received was reduced as well as the excess TIF received. Staff Recommendation Motion to approve transfers of $188,893 from the PIR Fund to the Park Fund and $124,955 from the General Fund to the EDA Operating Fund, as well as budget adjustments for 2012 for these same items. City Council Meeting P:�Admin\Council�Agendas & Packet Information�2012\07-30-12 Reg Mtg�Packet�Budget Adjustments and Transfers-EDA and Parks.docx Page 1 of 1