City Council Agenda: 02/08/2021

2E. Consideration of approving 2020 Operating Transfers

Prepared by:

Finance Director

Meeting Date:

02/08/2021

☐ Regular Agenda Item

☒ Consent Agenda Item

Reviewed by:

N/A

Approved by:

City Administrator

ACTION REQUESTED

Motion to approve 2020 Operating Transfers

REFERENCE AND BACKGROUND

Operating transfers shift money from one fund to another. This is done for a variety of reasons, including to finance city projects, repay debt, and cover unanticipated operating expenditures. Several of the transfers outlined below were anticipated and authorized when the council adopted the 2020 budget resolution 2019-95. This resolution states Council can amend or rescind Section (2) authorizing transfers as the year progresses. Other transfers became necessary throughout the year and are based on available internal funding options.

The proposed 2020 operating transfers are as follows:

Transfer From Transfer To Amounta. 213 - EDA Fund 312 - 2011A Bond Fund 200,000$ *b. 609 - Liquor Fund 656 - Fiber Optics Fund 50,000 *c. 609 - Liquor Fund 229 - Park & Pathway Fund 420,000 *d. 601 - Water Fund 401 - Capital Projects Fund (PW Building) 900,000 *b. 609 - Liquor Fund 656 - Fiber Optics Fund (50,000) c. 609 - Liquor Fund 229 - Park & Pathway Fund (185,000) e. 609 - Liquor Fund 226 - Community Cener 425,000 f. 101 - General Fund 400 - Capital Projects Fund 1,000,000

Description:a. Budgeted 2020 transfer - Transfer to use TIF funding for debt paymentsb. Budgeted 2020 transfer - Transfer for cash flow purposes.

Rescinded as transfer is not necessary.c. Budgeted 2020 transfer - Transfer to provide funding for Briarwood turn lanes at BCOL park.

Partially rescinded as project came in under budget.d. Budgeted 2020 transfer - Transfer to set aside funds for future PW buildinge. Funding for MCC roof repair project and operating deficitf. Transfer of reserves above 60-75% threshold established in 2021 Budget Resolution 2020-89

*Included in Resolution 2019-95 approving the 2020 budget.

City Council Agenda: 02/08/2021

• Items a-d above the red line are as stated in the 2020 budget resolution 2019-95. • Items b and c below the line are rescindments of previously budgeted amounts. • Item e is a new proposed transfer due to the roofing project at the Monticello

Community Center in 2020 ($350,000) and an operating shortfall because of the COVID-19 pandemic ($75,000).

• Item f is a transfer of excess reserves in the General Fund to the Capital Projects fund for future use. Future use is unrestricted, and Council can identify a more specific use for those funds during strategic and long-term financial planning.

I. Budget Impact: Varies by fund as noted above. II. Staff Impact: None. III. Comprehensive Plan Impact: N/A

STAFF RECOMMENDED ACTION

City staff recommends approval of the 2020 Operating Transfers.

SUPPORTING DATA

• Resolution 2019-95: Adopting the 2020 Budget and Authorizing Specific Finance-Related Activities

CITY OF MONTICELLO

WRIGHT COUNTY, MINNESOTA

RESOLUTION NO. 2019- 95

ADOPTING THE 2020 BUDGET AND AUTHORIZING SPECIFIC

FINANCE -RELATED ACTIVITIES

WHEREAS, the budget is the fiscal blue print for the entire year where the City Councilhas considered and incorporated all foreseeable spending plans for 2020; and

WHEREAS, the City, through sound fiscal policy, establishes that current revenues willbe used to finance current expenditures and regularly -occurring capital expenditures; and

WHEREAS, the City Council shall by this resolution set forth the total expenditures anduses, excluding depreciation, and the total revenues and other sources for each budgeted fund.

NOW THEREFORE, BE ITRESOLVED, by the City Council of the City of Monticello thefollowing is hereby approved:

SECTION 1. AUTHORIZATION OF ESTIMATED REVENUES FROM ALL

SOURCES, APPROPRIATIONS, AND FUND BALANCE ADDED (EXPENDED): Revenues Expenditures Fund Balance

Fund 1 2020 Budget 2020 Budget Added ( Expended)

General Fund $ 8, 903, 000 I $ 8, 903, 000 $

BgGJ" p_vgOue FundsE'.,,..,,,;' 1, 066, 000 904, 000 162, 000

Cemetery 33, 000 33,000

Minnesota Investment 15, 000 15,000

Monticello Community Center 2, 008, 000 2, 008,000

Total Special Revenue Funds 3, 122, 000 2, 945, 000 177, 000

pebt Service Funds

2011A G. O. Refunding Bond 425,402 1, 271, 450 846, 048)

2014A G. O. Judgment Bond 536, 501 510, 801 25, 700

2015B G. O. Bonds 220, 594 211, 250 9, 344

2016A G. O. Bonds 503, 798 525, 350 21, 552)

2017A G. O. Bonds 485, 742 470, 140 15, 602

2018A G. O. Bonds 472, 634 450,737 21, 897

2019A G. O. Bonds 728, 620 709, 046 19, 574

Total Debt Service Funds 3, 373, 291 4, 148, 774 775, 483)

LM;ltalP_r * ectF_undCapital Project 3, 460, 013 2, 875, 000 585, 013

Closed Bond Fund 75, 000 75, 000

Park & Pathway Dedication 467, 000 515, 000 48, 000)

l§ tormwater Access 65,000 360, 000 295, 000)

Street Lighting Improvement 90, 000 160, 000 70, 000)

Street Construction 20, 000 20,000

Total Capital Project Funds 4, 177,013 3, 910, 000 267, 013

Enterorise Funds

Water 1, 524, 139 2, 535, 322 1, 011, 183)

Sewage 2, 776, 509 3, 351, 136 574, 627)

Water Quality 207, 000 168, 013 38, 987

Liquor 1 6, 269, 651 6, 159, 541 110, 110

Deputy Registrar 627, 000 461, 814 165, 186

Fiber Optics 1, 850, 000 2, 054, 000 204, 000)

Total Enterprise Funds 13, 254, 299 14. 729, 826 1, 475, 527) 1Internal Service Funds

IT Services 226, 097 225, 000 1, 097

Benefit Accrual 19, 500 19, 500

Central Equipment 333, 800 636,400 302, 600)

Total Internal Service Funds 579, 397 861, 400 282, 003)

Total All Funds $ 33,409, 000 $ 35, 498, 000 $ 2, 089, 000)

SECTION 2. TRANSFERS:

By resolution, the Council can amend or rescind this section as the year progresses. Thefollowing list may include transfers for projects that have not received formal councilauthorization. Transfers for these projects can be rescinded any time during the budget year.

a. To 2011A GO Improvement Bond Fund from EDA/ TIF - $ 200, 000.

b. To FiberNet Fund from Liquor Fund - $ 50, 000.

c. To Park & Pathway Fund from Liquor Fund - $ 420, 000.

d. To Capital Projects Fund from Water Fund - $ 900,000.

SECTION 3. CAPITAL EQUIPMENT AND IMPROVEMENT ACQUISITION:

a. Appropriates resources for Central Equipment Fund purchases: Streets — plow truck

270, 000*); Parks — mower ($ 112, 000), water wheel ($ 13, 000*), Kawasaki mule

12, 000*), one - ton truck ($ 65, 000*), Toro workman ($ 30,000*); Public Safety - n/ a.

b. Appropriates resources for Enterprise Fund equipment purchases: Sewage Fund — n/ a;

Water Fund — n/ a; DMV Fund — n/ a; Water Quality Fund — n/ a; Liquor Fund — n/ a.

c. In accordance with the purchasing policy, all capital asset ( equipment, buildings, etc.) purchases included in this section are subject to further review and must be approved byspecific council action. Items denoted with an (*) require future council action.

SECTION 4. OTHER BUDGET AUTHORIZING ACTIONS:

a. Removes prior commitments and assignments, except those required by GASB, fromfund balance classifications.

b. Retains the General Fund reserve policy at 75% of expenditures and the revenue ( cost

recovery) policy for the community center where customer charges shall provide for 85% of operating costs, which includes on- going capital and non -capital items, such asequipment acquisitions and repairs and maintenance.

c. Approves Senior Center annual subsidy of $63, 300. d. Approves a 2% wage adjustment to full- time, part- time (excluding MCC staff and

volunteer fire personnel) and seasonal employees commencing on first pay periodbeginning in January 2020 and an additional 1 % commencing on first pay periodbeginning in July 2020.

e. Establishes the monthly standard health insurance benefits for union employees at1, 163. 58 with an effective date of March 1. The monthly standard health benefits for

participating non-union employees are $ 778. 09 for the single plan and $ 1, 438. 79 for the

family plan. Premium contributions are required from family/dependent plan participantsfor the difference between the standard benefit and coverage costs. No contribution is

required from single -plan and non -plan participants.

f. Adds one full- time park position starting no earlier than June 15, 2020. g. Staff will consider the budget impact of agenda items before making staff

recommendations.

ADOPTED BY the Monticello City Council this91"

day of December, 2019.

4aj

11, City Administrator