HomeMy WebLinkAbout6.f. Redesignation of General Fund Balance4ROSEMOUNTEXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting Date: March 3, 2015
AGENDA ITEM: Redesignation of General Fund Balance
AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director
AGENDA NO. 6.f.
ATTACHMENTS: Resolution
APPROVED BY: ddj
RECOMMENDED ACTION: Motion to adopt a Resolution Approving the Transfer of
Excess General Funds to the Equipment CIP Fund and Approving the Assignment of Funds
for the Retirement of 2 Police Sergeants, the Assignment of Funds for the Highway 3
Cleanup Project and the Assignment of Funds for the Community Center Parking Lot
Project.
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 2014 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 2014 fund balance in excess of 55% of
the 2015 General Fund operating budget is calculated to be $828,000. This amount is recommended to be
used for the assignment of General Funds for the repairs to the Community Center parking lot ($263,000),
costs to be incurred for the Highway 3 cleanup/reclamation project at the old City dump site ($100,000)
and to offset the costs incurred for the retirement of two Police Sergeants ($105,000).The remaining
amount to reach the 55% threshold ($360,000) will be transferred to the Equipment CIP Fund and be
used for future equipment purchases. The Equipment CIP 10 year projection is currently showing a cash
flow issue in 2-3 years and this transfer will help avoid any unnecessary financing for future equipment
purchases.
The Community Center parking lot is not included in the 10 -year schedule for City parking lots because of
the size and cost of the project. We had hoped to be able to utilize excess General Fund balances or SKB
funds to complete this large project and with the excess we have for 2014 in the General Fund feel it is an
appropriate use of part of the funds. The $100,000 for the Highway 3 cleanup project is money to be set
aside for us to use as matching grant funds when the grants become available and we are ready to proceed
forward with the project. In the last month we have had 2 Police Sergeants retire and the costs for their
unused Sick, Vacation and Comp time, as well as their Severance / Retirement pay is approximately
$105,000. By assigning these funds we will allow the Police Department budget to not begin 2015 with a
huge deficit. At the end of the first quarter we will bring an amendment to their budget that will reflect
this assignment.
SUMMARY
Staff is recommending the adoption of the attached resolution.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2015 -
A RESOLUTION APPROVING THE TRANSFER OF EXCESS GENERAL FUNDS TO
THE EQUIPMENT CIP FUND AND APPROVING THE ASSIGNMENT OF FUNDS FOR
THE RETIREMENT OF TWO POLICE SERGEANTS, THE HIGHWAY 3
CLEANUP PROJET AND THE COMMUNITY CENTER PARKING LOT PROJECT
WHEREAS, the City Council recognizes the need to transfer funds in excess of 55% of
the 2015 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
equipment purchases and assign funds to be used for the costs incurred for the
retirement of 2 Police Sergeants, the costs incurred for the Highway 3 cleanup project
and for the costs incurred for the Community Center parking lot project;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Rosemount
hereby approves the transfer of $360,000 to the Equipment CIP Fund and the
assignment of $105,000 in the General Fund for the Police Sergeant retirement costs,
the assignment of $100,000 in the General Fund for the Highway 3 cleanup project
costs and the assignment of $263,000 in the General Fund for the costs incurred for
the Community Center parking lot project.
ADOPTED this 3rd day of March, 2015.
William H. Droste, Mayor
ATTEST:
Clarissa Hadler, City Clerk