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Item No.
RESOLUTION AUTHORIZING CLOSING DEBT SERVICE FUNDS
Proposed Action
Staff recommends adoption of the following motion: Move to approve resolution authorizing
closing debt service funds.
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 3313 was established in 2007 in conjunction with the issuance of General
Obligation Improvement, Series 2007F. These bonds were issued to finance the Dakota Heights
improvement project. The final debt service payment was made on February 1, 2018 and the
debt service fund can now be closed. There are small residual balances (less than $500) in cash,
interest receivable, special assessments (delinquent), etc. Staff is recommending that the F3313
balances be transferred to the Construction Improvement Fund.
Debt Service Fund 3402 was established in 2007 in conjunction with the issuance of General
Obligation State Aid Street Bonds, Series 2007G. These bonds were issued to finance the
improvement of the County Road 70 interchange. The final debt service payment was made on
April 1, 2018 and the debt service fund can now be closed. There is a negative cash balance of
about $3,440 and negative interest receivable balance of $14. Staff is recommending that funds
from the Municipal State Aid Fund be transferred to F3402 to close the fund.
Primary Issues to Consider
• Funding Sources
Supporting Information
• City Council Resolution
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
October 15, 2018
~$4,000 Debt Service Fund, MSA Fund
N/A
CITY OF LAKEVILLE
RESOLUTION NO. ____
RESOLUTION CLOSING DEBT SERVICE FUNDS
WHEREAS, Debt Service Fund 3313 was established in 2007 in conjunction with the issuance of
General Obligation Improvement, Series 2007F to finance the Dakota Heights improvement
project; and
WHEREAS, Debt Service Fund 3402 was established in 2007 in conjunction with the issuance of
General Obligation State Aid Street Bonds, Series 2007G to finance the improvement of the
County Road 70 interchange; and
WHEREAS, the final debt service payments for 2007F and 2007G were made on February 1,
2018 and April 1, 2018, respectively; and
WHEREAS, there are small residual balances in cash, interest receivable, special assessments
(delinquent), etc. in Fund 3313; and
WHEREAS, there are negative balances in cash and interest receivable in Fund 3402; 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 3313 is closed, and all residual balances are transferred to the
Construction Improvement Fund.
3) Debt Service Fund 3402 is closed, and funds are transferred from the Municipal State Aid
Fund to cover the negative balances in F3402.
ADOPTED by the Lakeville City Council this 15th day of October 2018.
______________________________
Douglas P. Anderson, Mayor
_________________________________
Charlene Friedges, City Clerk