4.10 SR 04-19-2021Request for Action
To
Item Number
Mayor and City Council
4.10
Agenda Section
Meeting Date
Prepared by
Consent
Aril 19, 2021
Lori Ziemer, Finance Director
Item Description
Reviewed by
Resolution Authorizing Transfer from the General
Cal Portner, City Administrator
Reviewed by
Fund to the Capital Outlay Reserve and Equipment
Replacement Funds
Action Requested
Adopt, by motion, a resolution authorizing the transfer from the General Fund to the Capital Outlay
Reserve and Equipment Replacement Funds.
Background/Discussion
As part of our financial management policies, the fund balance policy sets a minimum and maximum
fund balance in the General Fund of 40-45%. Any amount above our maximum may be appropriated
by Council to be used for one-time, non -recurring expenditures.
As of the end of 2020, the General Fund had an excess fund balance of $887,986. It is recommended
the excess fund balance be transferred to the Capital Outlay Reserve Fund for future IT
hardware/software replacements and to augment the balance of the Equipment Replacement Fund for
vehicle replacements.
Financial Impact
Transfer from the General Fund excess fund balance of $887,986 to the Capital Outlay Reserve Fund,
$447,986, and Equipment Replacement Fund, $440,000.
Mission/Policy/Goal
Responsibly grow and develop a sustainable and prosperous community.
Attachments
■ Resolution
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional P` H E U
service, and community engagement that encourages and inspires prosperity INATUREJ
City of
Elk
River
City of Elk River
City Council
Resolution 2 1 -
A Resolution of the City Council of the City of Elk River Authorizing a
Transfer from the General Fund to the Capital Outlay Reserve and
Equipment Replacement Funds
WHEREAS, The City of Elk River's Financial Management Policies includes a General
Fund Balance policy in excess of 45 percent shall be allocated to other purposes at the
discretion of the City Council.
WHEREAS, The City Council has designated that the unassigned fund balance in the
General Fund be a minimum of 40 percent and a maximum of 45 percent.
WHEREAS, The City Council has considered the various uses of the balance in excess of
the 45 percent and consented to the following.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk
River, Minnesota, as follows: The transfer of $887,986 from the General Fund balance to:
Capital Outlay Reserve Fund $447,986
Equipment Replacement Fund $440,000
Passed and adopted this 19th day of April 2021.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk