HomeMy WebLinkAbout9.a. Redesignation of General Fund Balance 4ROSEMOUNT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting Date: March 6, 2012
AGENDA ITEM: Redesignation of General Fund Balance AGENDA-SECTION:
New Business
PREPARED BY: Jeff May, Finance Director AGENDA NO., (IA
ATTACHMENTS: Resolution APPROVED BY:
022..)
RECOMMENDED ACTION: Motion to adopt a Resolution Approving the Transfer of
Excess General Funds for One Debt Service Obligation and to the Building CIP Fund, and
Assigning Funds for Health Insurance Costs.
ISSUE '
The annu redesignation of excess General Fund balances per the City's Fund Balance Policy.
BACKGROUND
This item is on -the agenda to complete the redesignation of excess 2011 General Funds as outlined in`the
City's Fund Balance Policy. When the Fund Balance Policy was updatedin-2011 the policy was changed
to allow the excess fund balance to dip to 45% of the next year's budget if the City Council had a special
project / need that arose. That is not necessary at this time. The 2011 fund balance in excess of 55% of
the 2012, General Fund operating budget is calculated to be $548,141. This amount is recommended to be
used for the retirement of one debt service issue, for future Building CIP projects and to establish an
assignment for future health insurance costs. The debt issue is the Dakota Communications Center
(DCC) debt issue , (the City of Rosemount's share) ($60,638 necessary to fund the remaining payments for
2013 and the same amount in levy savings for 2013). $262,500 will go to the Building CIP Fund and be
potentially used for future projects and /or amenities as discussed at this year's Goal Setting Sessions. The
remaining $225,000 will become an assigned,General Fund amount that will be used for future health
insurance costs. The hope would be to_level off the amount necessary to levy for the General Fund's
share of health insurance premiums in future years. We would anticipate looking at a 3 -year average for
insurance premium renewals and levy based on that average. If the actual premium renewal was more than
that we would use the Assignment balance to make up the difference. If the actual premium renewal was
less than that we would than assign the excess to that Assignment balance. Future years would require
annual adjustments to the,levy and the Assignment balance but the hope would be that the actual levy
required would become more stabilized and we wouldn't see huge swings in our levy to accommodate the
premium changes (the. last 3 years we have seen a 0% change, an 18% increase and a 5% increase (that
actually could have been 20% if not for our participation in a co -op)).
SUMMARY
Staff is recommending the adoption of the attached resolution.
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CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2012:-
,
A`RESOLUTION APPROVING THE TRANSFER OF EXCESS'GENERAL FUNDS
FOR ONE DEBT SERVICE OBLIGATION ANDTO THE BUILDING CIP FUND, AND
ASSIGNING FUNDS FOR HEALTH INSURANCE COSTS
WHEREAS, the City Council recognizes the need to transfer funds excess of 55% of
the 2012 General Fund operating budget as outlined in the City's Fund Balance Policy
for the repayment of, to of the Capital Improvements Program (CIP) budgets to be
used for,future projects, and to assign.funds to be used for future health insurance
costs;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Rosemount
" hereby approves the transfer of $60,638 from the General Fund to repay the remaining
balance for the Dakota Communications Center's (DCC) debt, the transfer to the
Building CIP Fund ($262,500); and the, assignment of $225,000 in the General Fund to
be used for future health insurance costs for the City of Rosemount.
ADOPTED this 6 day of March, 2012.
William H. Droste, Mayor
ATTEST:
Amy Domeier, City Clerk t
t
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