News

Council makes financial transfers

By Scott Wagar

01/06/2015

On Dec. 29, the Bottineau City Council held its year end transfer of funds which saw around 15 funds being transferred to other funds at a transfer of over half a million dollars.

The grand total of the budgeted funds was $564,925 with the grand total of the actual funding being $791,770. 

Within the general budget, $326,500 was transferred out, along with an additional $238,425 transferred from other funds, which equals $564,925.

The biggest transfer was from the general fund at $300,000, which was moved to the general fund reserve – excess gas and oil, which ended up with a grand total of $515,869.

“The extra 215,869 was gas and oil tax over the budgeted amount,” said Penny Nostdahl, city auditor for the city of Bottineau. “We have not seen a downfall yet, but the governor’s office has warned us that the gas and oil tax will probably be going down for awhile. It is something we have to keep an eye on in 2015.  

“This transfer going to the general fund reserve will be used for a lagoon expansion project and the water line loop phase three project that will be done in 2015,” Nostdahl added. “They estimated for these two projects it will be $1,300,000. 
Fund #8250 for the 20 percent of 1 percent sales tax saw $115,000 relocated to six funds, which included Benefits - $10,000, Downtown - $5,000, New Arena - $25,000, Fire Hall - $25,000, Trails - $25,000 and New Pool Fund - $25,000.

The other fund that was ranked in the top three biggest transfers included the VPCC Fund, which lost $51,500 and was transferred to four different funds, which included Airport - $1,500, Armory - $10,000, Park Board Reserve - $20,000 and New Pool Fund - $20,000.

Harley Getzlaff, president of the city council, stated that he was okay with the transfers because it still left money in the budget if the city needs funding.

“That’s important because we can’t spend every single dime we have,” Getzlaff said. “It is important we hold on to money, too, because we might need it one day, you never know.”

Getzlaff did state that he has concern about money that has been placed in the budget for expected oil and gas revenue for 2015. 

“You can’t depend on oil and gas revenues,” Getzlaff said. “And, with oil prices where they’re at, it is hard to know what is going to happen. The League of Cities through the governor has warned us to be careful when it comes to oil and gas revenue because it is declining at the moment.”

Tim Sanderson, who sits on the council’s financial committee, stated that he wasn’t pleased with the transfers because the city has millions of dollars in their funds they should be spending to improve Bottineau and grant a break for local taxpayers who have to pay money on these funds.

“When you have the money you should spend it,” Sanderson said. “The more we sit on, the more residents have to pay taxes on and that isn’t fair to them. I am not saying that we should spend it all, but we do have money we could be using right now to help the town out.” 

To see the transfers that were made by the council, go to the city auditor’s office and request the document.