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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: