HomeMy WebLinkAbout9.a. Redesignation of General Fund Balance4ROSEMOUNTEXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting Date: March 5, 2013
AGENDA ITEM: Redesignation of General Fund Balance
AGENDA SECTION:
New Business
PREPARED BY: Jeff May, Finance Director
AGENDA NO.,�,
ATTACHMENTS: Resolution
APPROVED BY:
RECOMMENDED ACTION: Motion to adopt a Resolution Approving the Transfer of
Excess General Funds to the Building CIP Fund and Approving the Assignment of Funds
for the Repayment of Debt for the National Guard Armory.
ISSUE
The annual redesignation of excess General Fund balances per the City's Fund Balance Policy.
BACKGROUND
This item is on the agenda to complete the designation of excess 2012 General Funds as outlined in the
City's Fund Balance Policy. When the Fund Balance Policy was updated in 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 2012 fund balance in excess of 55% of
the 2013 General Fund operating budget is calculated to be $455,361. This amount is recommended to be
used for the assignment of General Funds for the repayment of the City's share of the National Guard's
debt for the National Guard Armory / Community Center ($430,000) and for future Building CIP projects
($25,000). The $430,000 will save the City approximately $86,000 per year for the next 5 years beginning
with the 2013/14 levy and ending with the 2017 /18 levy. This will be handled with an assignment of the
General Fund amount that will then be used for the semi- annual payments to the National Guard
beginning in 2014 and ending in February of 2018. The remaining amount to reach the 55% threshold
($25,000) will go to the Building CIP Fund and be potentially used for future projects and /or amenities.
SUMMARY
Staff is recommending the adoption of the attached resolution.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2013 -
A RESOLUTION APPROVING THE TRANSFER OF EXCESS GENERAL FUNDS TO
THE BUILDING CIP FUND AND APPROVING THE ASSIGNMENT OF FUNDS FOR
THE REPAYMENT OF DEBT FOR THE NATIONAL GUARD ARMORY
WHEREAS, the City Council recognizes the need to transfer funds in excess of 55% of
the 2013 General Fund operating budget as outlined in the City's Fund Balance Policy
to one of the Capital Improvements Program (CIP) funds to be used for future projects
and assign funds to be used for the repayment of the City of Rosemount's share of the
National Guard Armory;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Rosemount
hereby approves the transfer of $25,000 to the Building CIP Fund and the assignment
of $430,000 in the General Fund to be used for the repayment of debt for the National
Guard Armory.
ADOPTED this 5th day of March, 2013.
William H. Droste, Mayor
ATTEST:
Amy Domeier, City Clerk