CCP 04-09-2001 - Laserfiche WebLink

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� -� EN HILLS MEMORANDUM DATE: April 3, 2001 TO: Joe Lynch, City Administrator FROM: Terrance Post, City Accountant SUBJECT: Disposition of 2000 General Fund Operating Surplus Background Preliminary General Fund No. 101 operating results for the year ended December 31, 2000 indicates a projected surplus of approximately $170,000. Preliminary revenues were under budget by approximately<$90,000>and preliminary expenditures were approximately $260,000 under budget. On both revenue and the expenditure side, the cancellation of the Ingerson neighborhood street improvement project was an important driver in operating results. i Issue In previous years, the City Council has directed staff where to transfer operating surpluses. Staff is looking for similar direction from the council regarding the preliminary 2000 General Fund operation surplus. Alternatives 1. Leave the operating surplus in the General Fund. The 01/01/01 undesignated equity in the General Fund was $579,742. 2001 General Fund budgeted expenditures and operating transfers amounts are $2,787,691. Adding the 2000 operating surplus ($170,000)to the beginning fund balance ($579,742) would result in the ending 12/31/00 fund balance of approximately $750,000. This fund balance would represent approximately 27% of 2001 budgeted expenditures and operating transfers out. This level of equity could easily be supported for working capital needs. 2. Transfer$150,000 to Land and Municipal Buildings Capital Fund No. 408. The rationale for this transaction would be that, if additional funding were not required for the new city hall project, there certainly would be a funding requirement for the future maintenance facility project. 3. Transfer$75,000 to Land and Municipal Buildings Capital Fund No. 408 to purchase specific items related to the city hall project and leave the remaining $95,000 of surplus in the General Fund. The specific capital items are represented by: 1.) access (card reader) control and security control - $35,000; and 2) wiring and portable generator for • disaster backup - $40,000. Recommendation Staff recommends that the Arden Hills City council direct staff to implement alternative No. 2 and book a$150,000 operating transfer out to Municipal Land and Building Fund No. 408.