HomeMy WebLinkAbout20110207 - VI-06City Council Memorandum
To: Mayor Hicks & City Councilmembers
From: Charlene Stark, Finane Director
Date: 1/31/2011
Item: 2010 Transfers
Council Action Requested:
Approve 2010 transfers and setting up of due to /due from other fund receivable /payable. At the
year end of 2010 a couple of the city's funds are reporting a negative cash balance. For reporting
purposes the City transfers funds to cover the deficit at year end and reports a receivable in the
general fund. The cash is then transferred back at the beginning of the next reporting year.
Background Information:
The Fire fund has a negative cash balance of $31,136.26. This fund has a large outstanding
receivable at year end that the fire department staff has been working on to get billed and
collected. There was a change in process that was mandated by the State that the City has been
working onto get in place. This process has been established in 2010 and staff is currently
working to get the back billing on track and current for the 2011 financial year.
The Riverfront TIF fund has negative cash each year. This is due largely because the anticipated
development has not occurred and thus not increasing the amount of tax increment revenue to be
collected to cover the administrative expenses of the fund.
Financial Impact:
This year end transfer to the fire and TIF funds will improve the reporting in these two funds and
will cause the general fund's year end fund balance to decrease by the amount of the transfer. At
this time the year end balance in the general fund is preliminary as there are many financial
transactions to be recorded before the financial records are closed for 2010. At this time there is a
projected decrease of the general fund fund's balance of $650,000.
Advisory Commission Discussion:
NA
Council Committee Discussion:
NA
Attachments:
• NA
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