HomeMy WebLinkAboutItem 06.e
Item No.
RESOLUTION CLOSING HERITAGE CENTER CAPITAL PROJECT FUND AND
FORGIVING THE REPAYMENT OF A LOAN TO THE LIQUOR FUND
Proposed Action
Staff recommends adoption of the following motion: Move to approve the resolution closing the
Heritage Center Capital Project Fund and forgiving the repayment of a loan to the Liquor Fund.
Overview
At the August 1, 2011 City Council meeting, Resolution 11-84 approved the renovation of the
former police station into a senior center/historical society facility and directed staff to proceed
with the planning and construction.
At the February 21, 2012 City Council meeting, Resolution 12-17 approved plans and
specifications and set a bid date for the renovation of the former police station into the Heritage
Center. Financing of the project was discussed at the March 26, 2012 City Council work session
concluding in a majority of the City Council supporting the use of Liquor Funds for interim
financing.
At the April 2, 2012 City Council meeting, Resolution 12-34 was passed approving the
construction contracts for the Heritage Center. It also approved interim financing from the
Liquor Fund until such time the funding can be restored unless directed otherwise by the City
Council.
On December 31, 2012 a $290,843.18 transfer from the Liquor Fund was made to the Heritage
Center Capital Projects Fund. Funding for the project was also provided by other sources,
including the Building Fund ($377,000). At the end of 2014 sufficient revenues had been raised
and the loan was to be paid back sometime in 2015.
At the August 24, 2015 City Council work session, the 2016 Preliminary Budget and Proposed
Tax Levy was discussed. It was noted that the 2015-2025 Facility Plan (which reflected a
combined fund balance of the Heritage Center Fund and the Building Fund) showed a $157,000
deficit after showing a repayment of the $290,000 loan to the Liquor Store. Staff recommended
the Council consider 1) continuing to recognize the debt but not repay the loan until sufficient
fund balance could be achieved through increased future tax levies or 2) forgiving the loan. At
the subsequent September 14, 2015 work session, the loan forgiveness was presented and
accepted as a levy reducing option, but the loan was not formally forgiven.
February 19, 2019
Currently the Liquor Fund has a solid financial position and facility repairs and maintenance is
in demand. Considering the loan was for a one-time cost and forgiving the loan will reduce levy
needs for major facility repairs, staff is recommending the repayment of the loan be officially
forgiven.
Staff recommends that the attached resolution be approved to close the Heritage Center Capital
Project Fund to the Building Fund and to formally forgive the loan, both with an effective date of
December 31, 2018.
Primary Issues to Consider
• N/A
Supporting Information
• 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
290,843 Heritage Center Cap Proj Fund
CIP
CITY OF LAKEVILLE
RESOLUTION NO. ____
RESOLUTION CLOSING HERITAGE CENTER CAPITAL PROJECT FUND AND
FORGIVING THE REPAYMENT OF A LOAN TO THE LIQUOR FUND
WHEREAS, the Heritage Center Capital Project Fund 4084 was established in 2011 in
conjunction with the renovation of the former police station into a senior center/historical
society facility; and
WHEREAS, Funding for the project was provided by various sources including the Building
Fund ($377,000) and interim financing from the Liquor Fund ($290,843); and
WHEREAS, the Heritage Center did raise sufficient funds to repay the loan from Liquor Fund;
and
WHEREAS, as part of the 2016 budget preparation, the loan forgiveness was presented to the
City Council and accepted as a levy reducing option for the Building Fund, but was not formally
forgiven nor the fund closed.
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) The loan from the Liquor Fund to the Heritage Center Capital Project Fund is forgiven;
3) The Heritage Center Capital Project Fund 4084 is closed, and all residual balances
transferred to the Building Fund 4000, effective December 31, 2018.
ADOPTED by the Lakeville City Council this 19th day of February 2019.
______________________________
Douglas P. Anderson, Mayor
_________________________________
Charlene Friedges, City Clerk