HomeMy WebLinkAbout20090302 - VI-03
MEMO
TO: Honorable Mayor and City Council members
FROM: Charlene A. Stark, Finance Director
RE: Construction Fund Closure and Transfer
DATE: February 20, 2009
Back Ground
Typically road construction funds are created the fall of the year before the
actual contract is let. (Example Fall of 2008 the 2009 Construction Fund
(499) was created in the chart of accounts and expenditures occurred for
preliminary engineering work.) These funds are kept open until the contract
is finalized and the special assessment process is complete. The special
assessment process is completed the year following the construction year. In
our example above the special assessment hearing will take place in the fall
of 2010. Late 2010 or early 2011 the construction fund will be closed and
any remaining cash balance will be transferred to the corresponding debt
service fund. This is required by the debt service bond documents.
I am requesting to close out funds (496) 2006 construction fund and (497)
2007 construction fund and transfer the remaining cash to the respective debt
service funds (526) and (527). These contracts have been finalized and the
special assessment process is complete.
If you should have any questions, please feel free to contact me.
Council Action Requested:
Approve the closing of the construction fund and the transfer of $6,315.83 and
$222,667.78.