1n. Authorize 2003 Fund ClosingCITYOF
CHANHASSEN
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MEMORANDUM
TO: Mayor
City Council
FROM: Bruce M. DeJong, Finance Director~'~"'~4~'i~
DATE: June 9, 2004
SUBJECT: Resolution Authorizing 2003 Fund Closings
The City Council has discussed closing some debt service and capital projects
funds as the bonds are paid or the projects completed. I have prepared a list of
those funds that I recommend closing as of the end of 2003 and attached it to this
memo.
The purpose of this memo is to request City Council authorization to close a
number of city funds that are no longer needed.
I recommend closing several bond funds that are related to the Downtown TIF
district. These bonds have been fully paid, so closing them into fund 460 will
simplify reporting for this district. The funds that will be closed to 460 are funds
301 - T.I. Ref Bonds of 1990A, 306 - T.I. RefBonds of 1993E, 311 - T.I. Bonds
of 1992B, 327 - T.I. Bonds of 1991B, 335 - T.I. RefBonds of 1994C, 336 - T.I.
Ref Bonds of 1994D, 348 - T.I. Bonds of 1998E, and 356 - G.O. TI Refunding
2001D. The net transfer to 460 is a negative $4,557,723.52. This district will
have a positive balance at year end, but we had a debt service payment of
$2,763,833.75 that was made on February 1 of this year which will put the district
into deficit at its statutory end date of November 1, 2004. Staff will be preparing
a request to the State of Minnesota Commissioner of Revenue to extend the life of
the district until December 31 of this year to allow us to resolve our deficit.
We also have the Gateway TIF district (fund 495) that has projects that have been
completed. I recommend closing the capital project funds for 677 - Coulter Blvd
East of Century, 678 - Coulter Blvd West of Century, and the 679 - Traffic Signal
at Hwy 41 & West 82nd St. The net transfer to 495 is a negative $1,327,572.10.
This will put this fund in the whole by approximately $14,000, but we will receive
significant increment in 2004 that will cover the deficit.
The City of Chanhassen * A growlr/g commumty with clear~ lakes quality schools
Resolution Authorizing 2003 Fund Closings
June 9, 2004
Page 2
The remaining funds to be closed will be closed to fund 300 - Closed Bond Fund.
This is a mixture of debt service and capital projects funds that have seen the end
of all activity in the past couple of years. The funds to be closed are 303 - G.O.
Refunding Bonds of 1991E, 310 - G.O. Improvement Bonds of 1992A, 316 - G.O.
Fire Station & Equip Bonds of 1988, 323 - G.O. Corporate Purpose Bonds 1989C,
331 - G.O. Improvement Bonds of 1993C, 333 - G.O. Refunding Bonds of
1994A, 659 - Arboretum/TH 5 Utilities, 674 - Century Blvd, 676 - Lake Lucy
Road, 681 - Lake Drive West, and 682 - Stone Creek Drive. The net transfer to
fund 300 is a negative $68,103.39.
Amounts in Fund 300 can be transferred anywhere based on City Council
direction, but I would like to save that money. It can be used to pay TIF expenses
not covered by increment or as a revolving debt service fund. This would allow
the city to self-finance smaller special assessment projects internally without
needing to bond for them. We would then save the approximately 8% cost of
bonding on each project.
Recommendation
City staff recommends that the City Council authorize closing the funds listed to
the authorized fund as of December 31, 2003 as shown on the attached schedule
named 2003 Fund Closing and Transfer Summary Sheet. This authorization will
supercede any previous council direction for these funds.
Attachment: 2003 Fund Closing and Transfer Summary Sheet
2003 Fund Closing and Transfer Summary Sheet
12/31/2003
Transfer from: Transfer to: Cash Balance
301 460 (306,488.54)
306 460 (911,920.55)
311 460 0.12
327 460 (14,486.09)
335 460 (208,432.96)
336 460 (146,783.48)
348 460 (66,766.92)
356 460 (2,902,845.10)
Total Transfer (4,557,723.52)
460 - Downtown TIF Cash 5,309,649.96
Net Cash after Transfer
751,926.44
Transferfrom: Transferto: Cash Balance
677 495 (363,099.04
678 495 (838,933.98
679 495 (125,539.08
Total Transfer
495 - Gateway TIF District Fund Cash
Net Cash after Transfer
(1,327,572.10)
1,313,658.86
(13,913.24
Transferfrom: Trans~rto: Cash Balance
303 300 194,403.45
310 300 (1,273,898.52)
316 300 (229,938.97)
323 300 (195,441.60)
331 300 1,194,215.48
333 300 33,054.50
659 300 (944,995.67)
674 300 1,021,269.35
676 300 (181,861.37)
681 300 321,737.33
682 300 (6,647.37)
Total Transfer
300 - Closed Bond Fund Cash
(68,103.39)
1,028,011.30
Net Cash after Transfer 959,907.91