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IV.10. Resolution to Close Obsolete Funds and Transfer Balances; Bishop CITY OF HOPKINS City Council Report 2024-060 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: May 7, 2024 Subject: Resolution to Close Obsolete Funds and Transfer Balances _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Approve Resolution No. 2024-037 to Close Obsolete Funds and Transfer Balances OVERVIEW The City of Hopkins maintains a fund accounting system which separates funds according to their sources and uses. A separate fund is created for each new debt issuance. Bonds associated with Fund 424 (2012A GO Improvement Bonds), Fund 433 (2005B GO TIF Bonds), Fund 436 (2009B GO Housing Improvement Bonds), Fund 439 (2010B GO Refunding) and Fund 444 (2014B GO Refunding Bonds) have been paid off and are no longer necessary. Transfers between funds would be used to close out any remaining balances or deficits. The chart below shows the required transfers, which require City Council approval. Transfer Out Fund 204, Economic Development Fund 231, Super Valu Tax Increment Fund 424, 2012A GO Improvement Bonds Fund 444, 2014B GO Refunding Total Fund 101, General Fund - - 14,301 22,623 36,924 Fund 433, 2005B GO TIF Bonds 297 - - - 297 Fund 436, 2009B GO Housing Improvement Bonds 1,233 - - - 1,233 Fund 439, 2010B GO Refunding Bonds - 188,429 - - 188,429 Total 1,530 188,429 14,301 22,623 226,883 Transfer In SUPPORTING INFORMATION • Resolution No. 2024-037 Close Obsolete Funds and Transfer Balances Finance Department CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2024-037 CLOSE OBSOLETE FUNDS AND TRANSFER BALANCES WHEREAS, The City of Hopkins maintains a fund accounting system that separates funds according to their source and use ; and WHEREAS, it is necessary to create certain Fund Accounts from time to time as the need arises, and to close certain Accounts as those needs disappear; and WHEREAS, there is no longer need to maintain an Account for the following activities: 1. Fund 424, 2012A GO Improvement Bonds 2. Fund 433, 2005B GO TIF Bonds 3. Fund 436, 2009B GO Housing Improvement Bonds 4. Fund 439, 2010B GO Refunding Bonds 5. Fund 444 2014B GO Refunding Bonds, and WHEREAS, it is necessary and appropriate to transfer money from closed funds within the City’s account structure in order to eliminate the fund balances that currently exist in these accounts, NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby authorizes the following transfer of money as follows: 1. Transfer $14,301 from Fund 101(General Fund) to Fund 424 to eliminate a deficit in Fund 424 2. Transfer the remaining balance of Fund 433, estimated to be $297 to Fund 204- Economic Development 3. Transfer the remaining balance of Fund 436, estimated to be $1,233 to Fund 204-Economic Development 4. Transfer the remaining balance of Fund 439, estimated to be $188,429 to Fund 231-Super Valu Tax Increment 5. Transfer $22,623 from Fund 101 to Fund 444 to eliminate a deficit in Fund 444 Adopted by the City Council of the City of Hopkins this 7th day of May, 2024. By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk