HomeMy WebLinkAbout185-04 RESOLUTIONRESOLUTION NO. 185-04
A RESOLUTION APPROVING THE TRANSFER OF $4,387,115.00
FROM GENERAL FUND UNDESIGNATED FUND BALANCE TO
GENERAL FUND DESIGNATED FUND BALANCE.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby approves the transfer of $4,387,115.00 from General Fund Undesignated
Fund Balance to General Fund Designated Fund Balance.
PASSED and APPROVED this 16th day of November 2004.
ATFEST•
By:
SONDRA SMITH, City Clerk
APPROVED.
By
DAN COODY, M
NAME OF FILE:
CROSS REFERENCE:
Item #
Date
Resolution No. 185-04
Document
1
09/28/04
memo to mayor & City Council
2
memo to Council
3
draft resolution
4
Staff
Review Form
5
11/23/04
copy of memo to Steve Davis
6
7
8
9
10
11
12
13
14
15
16
NOTES:
DEPARTMENTAL CORRESPONDENCE
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TO: Mayor Dan Coody and Fayetteville City Council
THROUGH: Hugh Earnest, Chief Administrative Officer
FROM: Stephen Davis, Finance & Internal Services Directo4
DATE: September 28, 2004
SUBJ ECU: Sale of Wilson Springs Proceeds to General Fund and Sales Tax Fund
Designated Fund Balance
Recommendation:
Staff recommends that City Council approve a resolution transferring $4,387,115 from General Fund
Undesignated Fund Balance and placing $2,050,000 to General Fund Designated Fund Balance and
$2,337,115 to Sales Tax Capital Improvements Fund Designated Fund Balance.
Background:
On May 6, 2003, City Council approved resolution 68-03 which sold to Legacy Project LLC 289
acres of land in the 1-540 Business Park (Wilson Springs) site for the amount of $5,187,115.
The Mayor, on June 30, distributed a mein() listing several preferences for uses of the Wilson Springs
proceeds. Staff has attached a copy of the June 30 memo to this request. Subsequent to June 30,
City Council has approved two resolutions that utilize funds from Wilson Springs proceeds:
• Funded a request from the Botanical Garden Society of the Ozarks in the amount of$750,000
to complete a pavilion and construct infrastructure on the BGSO site at Lake Fayetteville.
• Approved the purchase of approximately 2.44 acres of land located between West and Gregg
Avenues from the Fay Jones Trust with $50,000 for use as part of the City's trail system.
Currently there is S4,387,115 remaining from the proceeds ofthe sale of Wilson Springs in the City's
General Fund. City Council and the Mayor have expressed their desire that these funds be used for
one-time expenditures or for economic development expenses that benefit the City. Approval of this
request will formalize the previously stated intentions.
Discussion:
This agenda item is coming to City Council at this time in preparation for the 2004 Audit and year-
end close-out procedures. City staff is requesting that the remaining $4,387,115 from the proceeds
of the sale of Wilson Springs he transferred from General Fund Undesignated Fund Balance to
General Fund Designated Fund Balance - $2,050,000 and to Sales Tax Capital Improvcmcnts Fund
Designated Fund Balance - $2,337,115.
• •
By transferring the funds out of the City's main operating fund, the proceeds can be more
appropriately recorded in compliance with City Council and the Mayor's intent and would only be
utilized with specific City Council approval.
This action will provide for more accountability for operational revenue and expenditures in General
Fund and better enable Citizens and City Council to determine the impact of operational revenues
and expenditures on the General Fund Unreserved Fund Balance amount. As Staff prepares multi-
year forecasts fewer adjustments will have to be made to reflect operational activity and will aid in
year-to-year comparisons.
Staff is recommending that the funds be classified as designated unreserved fund balance.
Designations represent management's intended use of resources and should reflect actual plans
approved by the government's policy makers and senior management. Expressed another way,
designations reflect a government's self-imposed limitations on the use of otherwise available
current financial resources. There are several benefits of transferring the funds:
• General Fund Reserve Overstatement: General Fund reserves, as currently stated, indicate
that all of the reserves could he used to provide operational funding. This potential use of
the Wilson Springs proceeds for operational needs has not been the stated intention or desire
of the Mayor or City Council. By transferring the funds from undesignated reserves to
designated reserves, the amount of reserves for General Fund Staff depicts will be the
reserves that can be used to fund on-going operations.
• General Fund Revenue/Expenditure Tracking: By keeping and expensing the S4,387,1 15
in the City's General Fund, inaccurate revenue and expense operational trends are shown.
For every major item that is expensed in General Fund, an appropriation from General Fund
reserves will need to be approved by City Council. Transferring the majority of Wilson
springs proceeds to the Sales Tax Capital fund will eliminate the necessity to adjust General
Fund expenditures to reflect operational items only and will aid in presenting a more
transparent view of operations funding within General Fund.
• Protecting the Wilson Springs Proceeds: By transferring the funds out of undesignated
unreserved reserves into designated unreserved fund balance in General Fund and Sales Tax
Capital Fund all expenditures of these designated funds require additional City Council
approval befbre any expenditure of these moneys can be made.
Budget Impact:
There is no net budget impact of transferring the $4,387,115 from General Fund Unreserved Fund
Balance and transfer 52,050,000 to Gcncral Fund Designated Fund Balance and S2,337,115 to Sales
Tax Capital Improvements Fund Designated Fund Balance. The entire $4,387,115 will be available
for future City Council appropriation approval. It is envisioned that all interest eamings from
designating these funds will remain for any expenditure in the funds and will not be added to either
designated reserve amount.
• •
Conclusion:
When approved, the $2,337,115 would be transferred into the City's Sales Fax Capital
Improvements Fund designated fund balance and the $2,050,000 would be set-aside General Fund as
a designated reserve with $1,800,000 designated for economic development purposes and S250,000
for a City-wide Master Plan Update. These funds would not be available for appropriation unless
approved by City Council.
If you have any questions concerning this agenda request please contact either Hugh Earnest or
Stephen Davis at 575-8330.
•
•
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
•
Memo to Council
June 30, 2004
From: Mayor Dan Coody
I apologize to each of you for not having the list of potential projects for funding to you in the manner you were
expecting. This had been worked out with the staff to give to you before the meeting but, obviously, the
paperwork was not given to you as it was supposed to be
After visiting with the Council to get an idea of your wishes concerning how this money could be best utilize, this
proposal tries to reflect the visions of both the Caundi and this administration. This proposal will not satisfy
everyone 100%. The wishes for this money ranged from leaving all of it in the bank to spending all of it on one
program. This plan represents a middle ground that would give benefit to several projects that are important to
this community. While $5.3 million (purchase price after closing costs plus accrued interest) may sound like a lot
of money, it Is surprising how quickly it can be absorbed in needed municipal projects.
What I have tried to do was foals on projects that are needed in Fayetteville but lack adequate funding. For
example, Alderman Jordan wished that sane money would go to a new fire station but we are budgeting to fund a
fire station in our C 1 P and we are in the planning stages now for two new stations on the east side as we
construct a new station on the west side. Since we have a funding stream in place for this program, I thought it
prudent to fund programs where funding was inadequate or non-existent. The only program for potential funding
where revenue is regularly programmed is for street improvements ($21 million for streets and overlay program in
our 5 year C.I.P) because this Issue received the highest priority in our citizen's survey. Additional revenue woukl
accelerate our work plan for street improvements.
The other earmarks would be for quality -of -life efforts that will also return revenue to the taxpayers over time
based on Increased regional and State tourism, provide amenities that would help local companies recruit their
best and brightest employees to Fayetteville, and enhance our position in the New Economy as the undisputed
cultural center for Northwest Arkansas.
Aidervoman Thiels suggestion for an amount for the Audubon Sodety is problematic in that the Society has
advanced no proposal and does not own any land yet. The memo from our Oty Attorney's office also raises a
concern. However It is ultimately up to the Council as to how these Issues are addressed.
My recommendations are:
$1.8 Million returned to the General Fund for Economic Development to replenish the fund that originally
purchased the land.
$2 Million for street improvements.
$750,000 for the Botanical Garden of the Ozarks that Is housed on Gty property at Lake Fayetteville.
$500,000 for acquisition and dean up of creek corridor and construction for Scull Creek Multi -Use Trail in the
heart of Fayetteville to connect our northern and southern trails.
$250,000 for the Gty-wide, 2025 Master Plan due for updating next year with the caveat that we Incorporate a
more comprehensive, detailed land -use plan for the larger community than we have to date.
113 WEST MOUNTAIN 72701 479.521-7700
FAX 479-5754257
• •
RESOLUTION NO.
A RESOLUTION APPROVING THE TRANSFER OF 52,050,000.00
FROM GENERAL FUND UNDESIGNATED FUND BALANCE TO
GENERAL FUND DESIGNATED FUND BALANCE AND
$2,337,115.00 FROM GENERAL FUND UNDESIGNATED FUND
BALANCE TO THE SALES TAX CAPITAL IMPROVEMENTS
FUND DESIGNATED FUND BALANCE RELATED TO THE SALE
OF THE WIWSON SPRINGS PROPERTY.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby approves the transfer of $2,050,000.00 from General Fund Undesii at d
Fund I3alance to General Fund Designated Fund Balance and $2,337 5.0 from
General Fund Undesignated Fund Balance to the Salt pital
Improvements Fund Designated Fund Balance related t tl�sal of the ilson
Springs property.
PASSED and APPROVED this 19th day of ` tober 2004. raj
APPROVED:
. )
BY.
sosre-- )
•/ [%JANCOODYMaYor
ATTEST:
By:
00QN RA SMITH, City Clerk
0
X AGENDA REQUEST
CONTRACT REVIEW
GRANT REVIEW
ST410 REVIEW FORM - FINANCIAL OBLIGIDON
`1//4/048
For the Fayetteville City Council Meeting of: TOCt4
PROM:
Stephen Davis FISD Finance & Internal Services
Name
Division Department
ACTION REQUIRED: Staff recommends that City Council pass a resolution transferring $2,050,000 from General
Fund Undesignated Fund Balance over to General Fund Designated Fund Balance and $2,337,115 from
General Fund Undesignated Fund Balance over to Sales Tax Capital Improvements Fund Designated Fund
Balance related to the Sale of Wilson Springs property.
COST TO CITY:
No Cost $
Cost of this request
Account Number
Project Number
Category/Project Budget Program Category / Project Name
Funds Used to Date Program / Project Category Name
$
Remaining Balance Fund Name
BUDGET REVIEW:
Budget Manager
N/A Budgeted Item Budget Adjustment Attached
Date
CONTRACT/GRANT/LEASE REVIEW:
(IAA <can
L2 koli14^7
Accounting Manager Da e Internall Al{Ljitor Date
*'C q 3010¢
Vaq(Ott
City Attorney Date
Purchasing Manager Date
STAFF RECOMMENDATION: Staff recommends approving the resolution to transfer the funds.
Division Head
Departfient Director
Date
�dzj►,31r..a 4 - z r-
inarice S Internal Services Dir.
Date
Chie inistrativ:1 Officer
Received in Mayor's Office
Cross Reference:
Previous Ord/Rests:
Orig. Contract Date:
Orig. Contract Number:
New Item:
10.1-01-144.44
Date
Yes No
T
y AHKANSASa'te e
[DEPARTMENTAL CORRESPONDENCE
•
City Clerk Division
113 West Mountain
Fayetteville, AR 72701
Telephone: (479) 575-8323
Fax: (479) 718-7695
city_clerk@ci.fayetteville.ar.us
To:
From:
Date:
Re:
Steve Davis
Finance & Intemal Services Director
Clarice Buffalohead-PearmanQ
City Clerk Division
November 23, 2004
Res. No. 185-04
The City Council passed the above resolution, November 16, 2004, approving a transfer of
funds from the undesignated fund to designated. I have attached a copy of the resolution.
The resolution with attachments will be recorded in the city clerk's office and microfilmed. If
anything else is needed please let the clerk's office know. Thanks.
/cbp
attachments
cc Internal Auditor
Barbara Fell, Budget & Research