At the end of each year, adjusting journal entries are made to properly account for various transactions.  One such entry made by staff was in regard to the 2020 bond issue.  In September 2020 the Village Board approved the sale of G.O. Bonds to be used for streets, public parking infrastructure improvements, and water main replacement.  This bond will be paid back through the debt service property tax levy.  As a result, according to generally accepted accounting principles (GAAP), the portion of the bond proceeds attributable to the Water & Sewer Fund should be reported in a Governmental Fund and not an Enterprise Fund.  An adjusting journal entry was made to run the Water & Sewer Fund portion of the bond proceeds through the Capital Projects Fund, and then a transfer from this fund to the Water & Sewer Fund.

In order to match the 2020 Budget to the abovementioned adjusting journal entries for the 2020 bond issue, the following budget amendments are required:

Capital Projects Bond Proceeds (401-0000-491.15-0)                      $9,045,200

Capital Projects Operating Transfer-Out (401-9901-591.90-05)       $9,045,200

Water & Sewer Operating Transfer-In (505-0000-491.05-00)           $9,045,200

RECOMMENDATION

It is recommended that the Village Board of Trustees amend the 2020 Budget to reflect the required year-end adjusting journal entries for the 2020 bond issue.