HomeMy WebLinkAbout6.d. Redesignation of General Fund Balance
EXECUTIVE SUMMARY
City Council Meeting Date: March 5, 2019
AGENDA ITEM: Redesignation of General Fund Balance AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director AGENDA NO. 6.d.
ATTACHMENTS: Resolution, Fund Balance Worksheets APPROVED BY: LJM
RECOMMENDED ACTION: Motion to adopt a Resolution Approving the Transfer of
Excess General Funds to the Insurance Fund.
ISSUE
The annual redesignation of excess General Fund balances per the City’s Fund Balance Policy.
BACKGROUND
The City Council is asked to complete the designation of excess 2018 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. As such, the 2018 fund balance in excess of
55% of the 2019 General Fund operating budget is calculated to be $203,000.
This amount is recommended to be transferred to the Insurance Fund to help replenish this fund for the
large amount of deductibles that have been paid over the last 5 years since we switched to a higher
deductible plan for our general liability insurance. The Insurance Fund has seen a levy increase the last
few years to keep up with the rising premium costs, but the deductible payments have been mostly
shouldered by the fund balance that had built up in that fund over a long period of time. With the switch
to the higher deductible plan ($100,000 / $200,000) that fund balance has been completely eliminated and
we currently have a small deficit in that fund. The hope is that with this infusion of funds we may be able
to minimize future levy increases for this fund for the next few years.
RECOMMENDATION
Staff is recommending the adoption of the attached resolution.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2019 -
A RESOLUTION APPROVING THE TRANSFER OF EXCESS
GENERAL FUNDS TO THE INSURANCE FUND
WHEREAS, the City Council recognizes the need to transfer funds in excess of 55% of
the 2019 General Fund operating budget as outlined in the City’s Fund Balance Policy
to the Insurance Fund;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Rosemount
hereby approves the transfer of $203,000 to the Insurance Fund.
ADOPTED this 5th day of March, 2019.
_____________________________
William H. Droste, Mayor
ATTEST:
__________________________
Erin Fasbender, City Clerk
GENERAL FUND (FUND 101)
PROJECTED YEAR-END FUND BALANCE WORKSHEET
(After Assignments and City Year-End Adjustments)
12/31/17 Balance - "Designated for Working Capital":7,333,742
Projected Revenues (and Transfers ) Thru 12/31/18 (As of 2/22/19):13,543,104
Less Projected Expenditures (and Transfers) Thru 12/31/18 (As of 2/22/19):13,095,849
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Projected Surplus(Deficit) for Year:447,255
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Projected "Designated for Working Capital" as of 12/31/18:7,780,997
(Before Final Year-End Adjustments)
Plus Adjustment to Fund Balance to reflect 12/31/18
Compensated Absences Balance (Per Fund Balance Policy): (40,938)
(-$39,702 for 2013; -$9,919 for 2014; +$179,675 for 2015; -$82,819 for 2016 & +$437 for 2017)
Plus Charter 4th Quarter Franchise Fees (Estimated) (Paid 2/15/19)0
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Projected "Designated for Working Capital" as of 12/31/18:7,740,058
(Before Adjustment Per Fund Balance Policy)
2019 General Fund Operating Budget:13,702,700
Percentage of Fund Balance to Next Year's Budget:56.49%
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55% of 2019 General Fund Operating Budget:7,536,485
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Amount to be Redesignated:203,573
(Per Fund Balance Policy)===========