HomeMy WebLinkAbout6.d. Resolution directing a three-year distribution of DC undesignated fund balanceAGENDA ITEM: Resolution directing a three -year
distribution of DCC undesignated fund
balance
ENDA SECTION:
PREPARED BY: Dwight Johnson, City Administrator
AGENDA NO. Lt. d.
ATTACHMENTS: Letter from DCC; Resolution
APPROVED BY: 11bj
the Dakota
fund balance to the City
in the form of a credit to
RECOMMENDED ACTION: Motion to approve a resolution directing
Communications Center to distribute a portion of its undesignated
of Rosemount in three equal distributions in 2010, 2011 and 2012
the City's member fees.
!i ROSEMOUNT
CITY COUNCIL
City Council Regular Meeting October 6, 2009
EXECUTIVE SUMMARY
BACKGROUND AND ISSUE
The City of Rosemount is a member of the Dakota Communications Center (DCC) which provides 911
emergency services throughout the County. The DCC Board recently voted to return a portion of its
undesignated fund balances to the members. These balances arose partly from conservative budgeting and
also the fact that start -up expenses for the agency are now over. The amount for each City is based on its
percentage fee allocation over the past several years and for Rosemount the amount is expected to be a
total of $83,738. The City must determine whether to receive this amount immediately or spread it over
the next three years, and also must decide whether the distribution should be by check or as a credit on
our member fees. We are requested to make these choices by October 15, 2009.
DISCUSSION
The distribution of the undesignated balance to the City will not have any effect on the preliminary budget
and tax levy adopted by the Council on September 1S`, since these refund amounts were already known to
staff and included in the preliminary budget unless the Council decides to take the whole amount of the
distribution immediately.
RECOMMENDATION
Staff recommends that the distribution be taken over a three year time period and that it be taken as a
credit on our member fees. Council and staff have discussed that the 2011 budget year may be even more
challenging for cities. If so, it is important not to take the entire distribution in 2010 and then have to
increase the member fee by $55,825 (2/3 of $83,738) in 2011. Also, taking the distribution as a credit on
our bill will simplify our accounting and budgeting so that we don't have to increase the appropriation for
the DCC and then show a new offsetting revenue (for the refund distribution) elsewhere in the budget.
Accordingly, the attached resolution provides for three year distribution as a credit to our bill.
2860 160TH STREET W.
ROSEMOUNT, MN 55
T: 651 322-1900
F: 651 2334
WWW.MN DCC.ORG
August 20, 2009
City Administrator Dwight Johnson
Rosemount City Hall
2875 145 Street W
Rosemount, MN 55068
Dear Administrator Johnson,
I am writing to confirm your 2010 Dakota Communications Center Member payment. Your annual
Member payments are unchanged from the amount listed in the budget document which was
provided to the Executive Committee at your August 5 meeting and subsequently approved by the
Board of Directors on August 20
Your annual Member fee for the DCC in 2010 is $383,874.00. This fee represents the General Fund
contribution amount of $325,580.00 and debt service obligation of $58,294.00. You will continue to
be invoiced separately by U.S. Bank, acting as Trustee, for your Debt Service Obligation.
The approved 2010 budget includes the distribution of $1,712,427 from the undesignated fund
balance to the Members. Each Member's distribution is based upon their Member fee allocation
percentage that was in place for DCC budget years 2006 -2009. For the City of Rosemount, your
allocation percentage was 4.90 resulting in a distribution of $83,738.00. To receive the
distribution, your City Council will need, by resolution to choose to receive the distribution in a
single lump -sum payment or in three annual distributions in 2010, 2011 and 2012. Furthermore, the
resolution will need to specify if the distribution should be in the form of a check or as a credit to
your Member fees. Two sample resolutions are attached for your consideration. Each Member is
required to notify the DCC in writing no later than October 15, 2009 of their decisions on the
distribution method they choose.
As in prior years, you will be receiving a monthly invoice for your DCC Member payment. Please
forward this information to anyone in your organization that may need it. Also, please let me know
if you have any questions about this matter.
Thank you very much.
Sincerely,
Kent Therkelsen
Executive Director
Attachment
KT /jh
MEMBERS:
DAKOTA
COMMUNICATIONS
CENTER
0
APPLE VALLEY EAGAN INVER GROVE HEIGHTS ROSEMOUNT
BURNSVILLE FARMINGTON LAKEVILLE SOUTH ST. PAUL
DAKOTA COUNTY HASTINGS MENDOTA HEIGHTS WEST ST. PAUL
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2009
A RESOLUTION APPROVING THE DISTRIBUTION OF DCC UNDESIGNATED FUND BALANCE
OPTION B: THREE PART DISTRIBUTION
WHEREAS, the Board of Directors of the Dakota Communications Center (DCC), a Joint Powers
Entity, to which the City of Rosemount is a Member, by official action on August 20, 2009 approved the
return of funds in the undesignated general fund balance to the Joint Powers Members, and;
WHEREAS, the Board of Directors of the DCC also established that each Member could, at their
option receive their share of the returned funds in a single lump sum payment in 2010 or three equal
annual payments in 2010, 2011 and 2012, and;
WHEREAS, the Board of Directors of the DCC further established that each Member could elect to
receive their distribution in the form of a check or a credit to their DCC Member fees, and;
WHEREAS, the Board further established that each Member, must communicate their choice of
distribution amount and method through an official action of the City Council to the DCC Executive
Director no later than October 15, 2009;
THEREFORE, BE IT RESOLVED, that by official action on October 6, 2009, the City Council has
elected to receive the distribution in the amount of $83,738.00 in three equal distributions in 2010, 2011
and 2012 by credit to 2010, 2011 and 2012 DCC Member fees, and;
BE IT FURTHER RESOLVED, that the City Administrator is directed to communicate this action to
the DCC Executive Director no later than October 15, 2009.
ADOPTED this 6th day of October, 2009 by the City Council of the City of Rosemount.
ATTEST:
William H. Droste, Mayor
Amy Domeier, City Clerk
Motion by: Second by:
Voted in favor:
Voted against:
Member(s) absent: