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<br />. <br /> <br />. <br /> <br />. <br /> <br />~ <br />~~HILLS <br /> <br />MEMORANDUM <br /> <br />DATE: April 19,2006 <br /> <br />TO: City Council Members <br /> <br />FROM: Murtuza Siddiqui, Chief Financial Officer/Treasurer",,'{\<' <br /> <br />SUBJECT: Consolidation of Capital Funds <br /> <br />BACKGROUND: <br />The City of Arden Ilill's financial system has fivc funds under the general category of Capital <br />Projects Funds. Thesc funds wcre established in the early 1990's in order to set aside funds for <br />specific purposes. The following are the list of funds: <br /> <br />. Municipal Land & Building Fund was established to pay for the constmction of the <br />City Hall and also to contribute towards the construction costs of the Ramsey County <br />Maintenance Facility. There is no activity in this fund. <br />. Non-Assessable Road Improvement Fund was established to set aside funds for the <br />Lexington Avenue construction project. Another purpose perhaps was to pay for a <br />portion of other constmction projects that are not assessed. This is an active fund. <br />. Capital Equipment/Improvements Fund was establishcd to fund major capital <br />equipment purchases or other projects that are not funded by other funds, such as the <br />special revenue, general, or the enterprise funds. This fund has a balance that will be <br />used for the Highway 96 Landscaping projects, as per the 2006 Budget. This project will <br />deplete the balance in this fund. <br />. Public Safety Capital Equipment Fund was established to fund the Public Safcty <br />equipment purchases. This is an active fund. <br />. PIR (Permanent Improvement Revolving) Fund was also established in the early <br />1990's in order to fund the construction projects as well as any projects or purchases. <br />This fund also serves as the City's savings/contingency funds account. <br /> <br />DISCUSSION: <br />In order to improvc reporting and tracking, it is suggested that a number of these funds be <br />consolidated. These funds had very specific purposes when they were originally created and <br />tbey seem to have accomplished their respective purposes. The suggestion is to consolidate <br />Municipal Land & Building, Non-Assessable Road Improvement, Capital <br />Equipment/Improvemcnts funds with the PIR Fund as one fund. The City will be able to fund <br />