HomeMy WebLinkAboutItem 06.h
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 3106 was established in 1999 in conjunction with the issuance of Gross
Revenue Recreation Facility Bonds of 1999. These bonds were issued to finance the second ice
sheet at the Ames ice arena. The final debt service payment was made on August 1, 2019 and the
debt service fund can now be closed. There are residual balances in cash (~$9,500) and interest
receivable. Staff is recommending that the F3106 balances be transferred to the 2020A Arenas
Parking Lot debt service fund.
Debt Service Fund 3311 was established in 2001 in conjunction with the issuance of General
Obligation Improvement Bonds, Series 2001A and the subsequent refunding bonds of 2009B.
The 2009B bonds were issued for refunding both the 2000A and the 2001A Improvement Bonds.
The final debt service payment was made on February 1, 2020 and the debt service fund can now
be closed. There are residual balances in cash (~$30,700), interest receivable, special assessments,
etc. There are additional costs to be incurred related to the final arbitrage calculation before the
fund is closed. Staff is recommending that the F3311 balances be transferred to the Improvement
Construction Fund.
Debt Service Fund 3400 was established in 2000 in conjunction with the issuance of General
Obligation State Aid Street Bonds, Series 2000C and the subsequent refunding bonds of 2010A.
These bonds were issued to finance various improvements of municipal state-aid streets within
the City. The final debt service payment was made on April 1, 2020 and the debt service fund can
now be closed. There are residual balances in cash (~$12,700) and interest receivable. Staff is
recommending that the F3400 balances be transferred to the Municipal State Aid Fund.
Primary Issues to Consider
• Funding Sources
June 15, 2020
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
~$53,000
0
Debt Service Funds
N/A
CITY OF LAKEVILLE
RESOLUTION NO. ____
RESOLUTION CLOSING DEBT SERVICE FUNDS
WHEREAS, Debt Service Fund 3106 was established in 1999 in conjunction with the issuance of
Gross Revenue Recreation Facility Bonds of 1999. These bonds were issued to finance the second
ice sheet at the Ames ice arena. The final debt service payment for the 1999 bonds was made on
August 1, 2019; and
WHEREAS, Debt Service Fund 3311 was established in 2001 in conjunction with the issuance of
General Obligation Improvement Bonds, Series 2001A and the subsequent refunding bonds of
2009B. The 2009B bonds were issued for refunding both the 2000A and the 2001A Improvement
Bonds. The final debt service payment for the 2009B bonds was made on February 1, 2020; and
WHEREAS, Debt Service Fund 3400 was established in 2000 in conjunction with the issuance of
General Obligation State Aid Street Bonds, Series 2000C and the subsequent refunding bonds of
2010A. These bonds were issued to finance various improvements of municipal state-aid streets
within the City. The final debt service payment for the 2010A bonds was made on April 1, 2020;
and
WHEREAS, there are residual balances in cash, interest receivable, special assessments, etc. in
Fund 3106, Fund 3311 and F3400; 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 Funds 3106, 3311 and 3400 are closed, and the 2020 budget is amended to
reflect the following transfers of residual balances:
a. Debt Service Fund 3106 to the 2020A Arenas Parking Lot Debt Service Fund.
b. Debt Service Fund 3311 to the Construction Improvement Fund.
c. Debt Service Fund 3400 to the Municipal State Aid Fund.
ADOPTED by the Lakeville City Council this 15th day of June 2020.
______________________________
Douglas P. Anderson, Mayor
_________________________________
Charlene Friedges, City Clerk