5.j) Staff Report-Close Debt Funds 302 and 307J
SCAlVDIA
Staff RepoVt
Date of Meeting: March 17, 2015
To: City Council
From: Colleen Firkus, Treasurer
Re: Resolution to Close Debt Funds
Background:
The City paid off the 2000 Fire Hall/Public Works Debt Service Fund 310 in 2014. There is a
balance of $19,320.67 in that fund. Past practice has been for the City to transfer the balance of a
debt service fund into the next oldest debt service fund. Fund 302 from the 2002 Road Paving
Project was paid off in 1998 and the balance transferred to Fund 307, but it was not formally
closed by resolution.
Issue:
The City Council needs to pass a resolution to close Fund 302 and Fund 310 and transfer the
proceeds of Fund 310 to another debt service fund.
Proposal Details:
Included in your packet is a resolution to close Funds 302 and 310, and to transfer the balance of
Fund 310 to Fund 307. These funds are restricted to debt service funds by state statute.
Fiscal Impact:
Fund 307's balance will increase to $287,052. After the 2015 property tax levy and the principal
and interest payment, there will be a balance of $294,061 at the end of 2015. This would allow
the City to pay off Fund 307 at the end of this year.
Options:
1) Approve Resolution 03-17-15-01
2) Do not approve Resolution 03-17-15-01
Recommendation:
Option 1.