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Item No.
RESOLUTION AUTHORIZING CLOSING DEBT SERVICE FUND
Proposed Action
Staff recommends adoption of the following motion: Move to approve resolution authorizing
closing of debt service fund 3312.
Overview
Minnesota State Statute 475.61, subd. (4a) provides that any surplus remaining in a debt service
fund when the obligations and interest thereon are paid may be appropriated to any other
general purpose by the municipality.
Debt Service Fund 3312 was established in 2007 in conjunction with the issuance of General
Obligation Improvement Refunding Bonds, Series 2007B. These bonds were issued to refund
future maturities of the 1995A, 1996B and 1996C bonds. The final debt service payment has
been made and the debt service fund can now be closed. There are residual balances in cash,
interest receivable, special assessments (current, green acres and other), etc.
Primary Issues to Consider
• Funding Sources (See attached)
Supporting Information
Financial Impact: $ Budgeted: Y☐ N☒ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Jerilyn Erickson, Finance Director
January 2, 2018
317,000 Debt Service Fund
N/A
Staff is recommending that the balances are transferred as follows with an effective date of
12/31/2017:
Cash – transfer an amount to Debt Service Fund 3313 (General Obligation Improvements
Bonds, Series 2007F) sufficient to fund the 2018 (final) debt service payment and other
fees. Transfer the remaining balance to the Construction Improvement Fund for
purposes of funding some of the preliminary project costs that occur prior to the issuance
of debt for those projects. Estimated cash balance is $98,000.
Other Accounts – transfer residual balances to the Construction Improvement Fund as
noted above. The timing for collection of the assessments is uncertain due to their
deferred status (green acres, etc.). Many of the assessments will expire in the coming
years.
Cash balances were taken into consideration when evaluating the tax levy needs for the debt
service funds.
CITY OF LAKEVILLE
RESOLUTION NO. ____
RESOLUTION CLOSING DEBT SERVICE FUND
WHEREAS, Debt Service Fund 3312 was established in 2007 in conjunction with the
issuance of General Obligation Improvement Refunding Bonds, Series 2007B to refund future
maturities of the 1995A, 1996B and 1996C bonds; and
WHEREAS, the final debt service payment was made on February 1, 2016; and
WHEREAS, there are residual balances in cash, interest receivable, special assessments
(current, green acres and other), etc.; and
WHEREAS, Minnesota State Statute 475.61, subd. (4a) provides that any surplus
remaining in a debt service fund when the obligations and interest thereon are paid may be
appropriated to any other general purpose by the municipality.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville,
Minnesota, as follows:
1) The recitals set forth above are incorporated herein;
2) Debt Service Fund 3312 is closed and all residual balances transferred as follows, effective
December 31, 2017:
a. To Debt Service Fund 3313 (General Obligation Improvements Bonds, Series
2007F) – Transfer cash in an amount sufficient to fund the 2018 (final) debt
service payment and other fees;
b. To Construction Improvement Fund – Transfer remaining cash balance and other
residual balances.
ADOPTED by the Lakeville City Council this 2nd day of January 2018
______________________________
Douglas P. Anderson, Mayor
_________________________________
Charlene Friedges, City Clerk