Council approves end of year fund transfers

The Le Mars City Council last Tuesday cleaned up its finances in preparation for the end of the fiscal year.

That meant transferring $2 million in Tax Increment Financing (TIF) money for the current year and $2 million for last year to make two years of bond payments.

The reason for making both transfers this year was because Scott Langel, city administrator, was absent from the job last year due to illness, Councilman Rex Knapp said.

Knapp is a member of the city's finance committee who works with staff and the transfers.

"The numbers this year are paying for two years of payments," Knapp said. "We're just trying to clean up some of the accounting."

TIF revenue comes from property taxes collected on businesses within TIF districts. That money can be used for improvements like the city's waste-water treatment plant, extending water to Wells' Dairy and constructing roads in the industrial park, Knapp said.

In addition to TIF, the council also approved transfers from Local Option Sales Tax (LOST), economic development, general, water sinking and community wellness center funds last week.

The largest of those transfers was about $1.6 million from the Community Betterment Project fund, which paid for improvements including the indoor and outdoor swimming pools.

A complete transfer report is available at Le Mars City Hall.