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B. Capital Project Funds Review and Transfer Review9 BACKGROUND e) CITY OF Fax: 952.227.1190 After completion of the 2010 audit, staff reviewed all capital project fund balances. MEMORANDUM CHMNSEN regular agenda. Phone: 952.227.1160 TO: Mayor and City Council 7700 Market Boulevard Phone: 952.227.1140 PO Box 147 FROM: Greg Sticha, Finance Director ' Chanhassen, MN 55317 construction fund. Park & Recreation Administration DATE: June 27, 2011 r ° 00<600 Phone: 952.227.1100 SUBJ: Capital Project Funds Review and Transfer Review Fax: 952.227.1110 2310 Coulter Boulevard accordance with the approved staff report. This included a transfer from the park Building Inspections BACKGROUND Phone: 952.227.1180 Fax: 952.227.1190 After completion of the 2010 audit, staff reviewed all capital project fund balances. That analysis revealed the need to make two transfers that will be part of tonight's Engineering regular agenda. Phone: 952.227.1160 Fax: 952.227.1170 Transfers Finance Phone: 952.227.1140 The completed 2010 audit revealed a General Fund surplus of $395,759. As in past Fax: 952.227.1110 years, staff is recommending this surplus be transferred to the revolving assessment construction fund. Park & Recreation Phone: 952.227.1120 In addition, the Lyman Boulevard Phase I improvements were completed in 2009. Fax: 952.227.1110 In order to complete the accounting for this project and to alleviate the negative Recreation Center fund balance in the construction fund, a number of transfers were made in 2310 Coulter Boulevard accordance with the approved staff report. This included a transfer from the park Phone: 952.227.1400 dedication fund ($647,000) for the construction/re - construction of the trails related Fax: 952.227.1404 to this project. It has been the city's practice to pay for trail improvements along or near street construction/reconstruction projects, using funds available in the street Planning & Natural Resources pavement management fund or the revolving p g g assessment construction fund. This Phone: 952.227.1130 transfer will reverse the transfer made in 2010 and return the funds to the park Fax: 952.227.1110 dedication fund. Funds from the revolving assessment construction fund will temporarily be used to pay for the trail improvements until advanced MSA Public Works construction dollars are received from the state. 7901 Park Place Phone: 952.227.1300 Capital Project Funds Review Fax: 952.227.1310 Senior Center Staff will be reviewing all of the major capital project fund balances with the Phone: 952.227.1125 council this evening. This will include the revolving assessment construction fund, Fax: 952.227.1110 park dedication fund, street pavement management fund, and capital equipment fund. This review will include an analysis of the current financial position of each Web Site fund and the projected fund balance at the end of 2012. Attached are the www.ci.chanhassen.mn.us spreadsheets staff will be reviewing on Monday night. Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Mayor & City Council June 27, 2011 Page 2 ATTACHMENTS 1. Revolving assessment construction fund financial projections. 2. Revolving assessment construction fund reconciliation. 3. Street pavement management fund analysis and projection. 4. Park dedication fund analysis and projection. 5. Capital equipment replacement fund analysis and projection. F: \GregS \Council\201 I \Capital Project Funds Analysis 6- 27.docx Revolving Assessment Fund 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Project Cost 1,200,000 1,700,000 800,000 1,100,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 Assessments 40% (480,000) (680.000) (320,000) (440,000) (480,000) (480,000) (480,000) (480,000) (480.000) (480.000) (480,000) (480,000) (480,000) (480,000) (480,000) City Share 720,000 1,020.000 480,000 660,000 720,000 720,000 720,000 720,000 720.000 720.000 720,000 720,000 720,000 720,000 720,000 Fund Bal - BOY 1,172,000 802,488 173,218 248,482 369,532 435,132 347,668 463,817 582,786 640,549 688,423 683,376 1,166,684 1,654,869 2,155,846 Levy 256,570 437,842 130,680 444,410 450,192 431,698 670, 538 664,293 659,378 660,978 653,293 1,114,690 1,111,790 1,109,990 1,109,290 Repayment 550,545 627,842 737,346 765,878 802,734 670,731 632,082 637,701 579,728 566,845 521,755 534,637 528,195 528,195 528,195 Less Prepaid Specials Project Costs (1,200,000) (1,700,000) (800,000) (1,100.000) (1,200,000) (1,200.000) (1,200,000) (1.200,000) (1,200,000) (1,200,000) (1,200,000) (1,200,000) (1,200,000) (1,200,000) (1,200,000) Investable Balance 779,115 168,173 241,244 358,769 422,458 337,561 450.308 565,812 621,892 668,372 663,472 1,132,703 1,606,669 2,093,055 2,593,332 MVHC Street Levy & Tsf Interest 23,373 5,045 7,237 10,763 12,674 10,127 13,509 16,974 18,657 20,051 19,904 33,981 48,200 62,792 77,800 Fund Bal - EOY 5,366,920 2,971,232 4,885,992 3,600,000 (56,000) 802,488 173,218 248,482 369,532 435,132 347,688 463,817 582,786 640,549 688,423 683,376 1,166,684 1,654,869 2,155,846 2,671,132 Repayment Schedule 8 yr assmt @ 6% Project Year 2005 $142,000.00 23,000 23,000 23,000 23,000 23,000 23,000 23,000 2006 $34. 000,00 34, 000 34, 000 34 .000 34,000 34,000 34,000 34,000 2007 $209,300.00 209,300 209,300 209,300 209,300 209,300 209,300 209,300 2008 $103,063.60 103,063 103,063 103.063 103.063 103,063 103,063 103,063 2009 $58,795.00 58,795 58,795 58,795 58,795 58,795 58,795 58,795 2010 $122,387.00 122,387 122,387 122,387 122,387 122,387 122,387 122,387 2011 $77,297.25 77,297 77,297 77,297 77,297 77,297 77,297 77,297 2012 $109,504.44 109,504 109,504 109,504 109,504 109,504 109,504 109.504 2013 $51,531.50 51,532 51,532 51,532 51,532 51,532 51.532 51,532 2014 $70,855.81 70,856 70,856 70,856 70,856 70,856 70,856 70,856 2015 $77,297.25 64, 414 64, 414 64 ,414 64,414 84,414 64,414 64,414 2016 2017 $77, 297,25 64, 414 64, 414 64 ,414 64,414 64,414 64,414 64,414 2018 $77, 297,25 64, 414 64, 414 64 ,414 64,414 64,414 64,414 64,414 2019 $77, 297,25 64, 414 64 ,414 64,414 64,414 64,414 64,414 2020 $77, 297,25 64 ,414 64,414 64,414 64,414 64,414 2021 $77 ,297.25 84,414 64,414 84,414 64,414 2022 $77,297.25 64,414 64,414 64,414 2023 $77,297.25 64,414 64,414 2024 $77,297.25 64,414 $77,297.25 Eliminated Transfer of $50,000, and projects increased to $1.2 million starting in 2015. Suggested Changes Begin Fund Balance (56,000) Replace Lyman Tsf with MSA - Cosst 885,000 Replace Lyman Park ded tsf with R/A (647,000) Gen Fund Tsf 395,000 YE reconciliations 595,000 New 2011 Beg fund Bal 1,172,000 Capital Eqpt Replacement Fund Projection 2010 Ending Balance Prior Year Unspent Purchases 2011 Revenues 2011 Expenses 2012 Revenues 2012 Expenses Est End Balance 2012 $ 2,132,381 (150,000) 750,000 (825,000) 750,000 (924,000) $ 1,733,381 Park dedication Fund Projections 2010 Ending Balance $ 2,088,000 2011 Revenues 100,000 2011 Expenses (998,000) 2011 Tsf from R/A 647,000 2012 Revenues 150,000 2012 Expenses (235,000) Est End Balance 2012 $ 1,752,000 Revolving Assessment Construction Fund (601) Transfers 2010 Street Imp 10 -01a - Erie Water (700) 295,351.22 Sewer (701) 266,116.13 Storm Water (720) 220,258.58 781,725.93 2010 Street Imp 10 -01b - Red Cedar Water (700) 457,088.83 Sewer (701) 46,894.44 Storm Water (720) 20,725.72 524,708.99 Audubon Road Imp 10 -02 Water (700) 39,726.11 Sewer (701) - Storm Water (720) 388,429.91 428,156.02 Total Transfers 1,734,590.94 Contract amount left to spend 2010 Street Imp 10 -01a - Erie (217,038.00) 2010 Street Imp 10 -01b - Red Cedar (882,329.00) Audubon Road Imp 10 -02 (39,580.00) (1,138,947.00) Net change to fund balance 595,643.94 Street Pavement Fund Projections 2010 Ending Balance �J 917,000 2010 MSA Const 2011 MSA Const 2011 Expenses 2012 MSA Const 2012 Expenses Est End Balance 2012 (655,000) (120,000) $ 142,000