HomeMy WebLinkAbout6.c. Redesignation of General Fund Balance
EXECUTIVE SUMMARY
City Council Meeting Date: March 2, 2016
AGENDA ITEM: Redesignation of General Fund Balance AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director AGENDA NO. 6.c.
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 City Hall 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 2015 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 2015 fund balance in excess of 55% of
the 2016 General Fund operating budget is calculated to be $796,000. This amount is recommended to be
used for the assignment of General Funds towards the repairs to the City Hall parking lot ($296,000). The
remaining amount to reach the 55% threshold ($500,000) 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 funding for the City Hall parking lot is not included in the 10-year schedule for City parking lots
because of the size and cost of the project. Currently the scope of the parking lot project is being
considered and the $296,000 that we are proposing to assign for this project should cover a large share of
the project depending on the final design of the parking lot.
SUMMARY
Staff is recommending the adoption of the attached resolution.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2016 -
A RESOLUTION APPROVING THE TRANSFER OF EXCESS GENERAL FUNDS TO
THE EQUIPMENT CIP FUND AND APPROVING THE ASSIGNMENT OF FUNDS FOR
THE CITY HALL PARKING LOT PROJECT
WHEREAS, the City Council recognizes the need to transfer funds in excess of 55% of
the 2016 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 for the costs incurred for the City Hall parking
lot project;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Rosemount
hereby approves the transfer of $500,000 to the Equipment CIP Fund and the
assignment of $296,000 in the General Fund for the costs to be incurred for the City
Hall parking lot project.
ADOPTED this 2nd day of March, 2016.
_____________________________
William H. Droste, Mayor
ATTEST:
__________________________
Clarissa Hadler, City Clerk