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Home My WebLink About2010-04-07 PACKET 04.G.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 4/7/10 PREPARED BY Finance Robin Roland ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Adopt resolution approving General Fund fund balance designations at 12/31/09 and authorizing transfers from the General Fund per the Fund balance policy. STAFF RECOMMENDATION Adopt resolution approving General Fund fund balance designations at 12/31/09 and authorizing transfers from the General Fund per the Fund balance policy. BUDGET IMPLICATION BUDGETED AMOUNT ADVISORY COMMISSION ACTION ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ❑ ECONOMIC DEV. AUTHORITY FJ SUPPORTING DOCUMENTS ■ ■ ■ ■ DATE REVIEWED Fj El El El El ACTUAL AMOUNT APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ MEMO /LETTER: RESOLUTION: ORDINANCE: ENGINEERING RECOMMENDATION: LEGAL RECOMMENDATION: OTHER: ADMINISTRATORS COMMENTS W z o ity Administrator Date COUNCIL ACTION TAKEN: FdAPPROVED ❑ DENIED ❑ OTHER X0®0 C: \Documents and Settings\rrolandWy Documents \City Council Action Form.doc From: Robin Roland, Finance Director Date: March 24, 2010 Subject: Designate 2009 Year End Fund Balance and Approve Transfers Consistent with Fund Balance Policy Background A resolution formally designating the General Fund — Fund Balance as of December 31, 2009 and approving the transfers consistent with the fund balance policy is provided for City Council approval. Discussion Attached is a calculation of the General Fund Balance Designation for the year ended 2009. This calculation reflects the fund balance policy, which was originally adopted in 2003 and reaffirmed in February 2010. Calculation of Designated Fund Balance As of December 31, 2009, the fund balance in the General Fund will increase by $829,920 before transfers. Under the fund balance policy, $705,432 will be transferred to other funds, leaving a net increase to the general fund of $124,488 for budget carryovers. The transfers include: Closed Debt fund for debt management purposes $290,472 Equipment Replacement fund for future equipment replacement 207,480 Building Replacement fund for future municipal building needs 124,488 Future Project Fund for future pavement management projects 82,922 Total Transfers $705,432 After transfers, the fund balance available for designation will according to the fund balance policy as follows: Cash Flow Purposes Reductions to MVHC Compensated absences Contingencies Special purposes Anticipated fiscal disparities reduction Potential reduced development fees Required by accounting principles Budget carryovers be $9,131,585. This is designated $5,106,650 927,760 623,345 1,278,945 808,359 127,000 100,000 35,038 124,488 $9,131,585 Designation of Fund Balance for Specific Purposes The City has received amounts that are designated for specific purposes. • Fine revenue that is received from drivers who violate the school bus stop sign law is restricted to education programs related to traffic safety. The amount that is unspent is $3,550. There has been $100,000 budgeted per year since 2003 for park equipment and shelter replacement. If the $100,000 is not spent in the current year a carryover is done for the unspent dollars which is $503,809 as of 2009 year end. This program was started to replace playground equipment and then to begin to save for larger building expenditures. • There are nine budget items that were not completed in 2009 that fund balance is designated for: GIS system and wide format printer $77,000 800 Mhz equipment and radio service 50,000 Kingston park storage /restrooms 15,000 Laserfiche /Document imaging conversion 25,000 Comprehensive plan 5,000 Sustainability projects 80,000 Environmental task force expenditures 25,000 2010 Elections 24,000 $301,000 Designated for Budget Carryovers As part of the fund balance policy 15% of unallocated fund balance is to be designated for budget carryovers. $124,488 is designated as of December 31, 2009 for this purpose. Action Requested Council is requested to adopt the attached resolution approving transfers and designating the fund balance. Staff Recommendation Staff recommends that the resolution be approved as presented. General Fund Reserved / Designated Fund Balance I Amount Available 2009 Per the financial statements 2007 II Prepaid Items III Cash Flow Reserves Following }rear GF Prop. Tax Levy Following year GF LGA Based 2002 GF HACA Amount One half of total Amount IV Compensated Absences Amount Entire amount in GLTD AC group for Comp Abs, V MVHC Reductions (LGA prior to 2004) arrrount ofpotenbal A1D reduction - ast atone full year VI Contingencies Updated 10% of following year budgeted expenditures 35,038 VII Amounts designated for Special Purposes 8,060 For Enhanced 911 communiculied fees erflanod 7,326 Am000ts aolleoted tar violations of "school bus arm" Park playground equipment /shelter replacement carryover 10,338,000 Set aside for GIS system & wide- format printer not completed in 2006 -2009 9,620,000 Set aside for 800 Mae ($50,000) 10,213,300 Set aside for 800 Mho radio service ($33,400) " 5,106,650 Set aside (or Kingston Park storage and portable re arsoms Trot completed in 2008 -2009 Set aside for modern Pres playing cards not completed 06 4,810,000 Set aside for unspent money for 2006 squad set up completed in 2007 »» Set aside for unspent money for 2007 community survey completed in 2008 Updated >>>- Set aside for unspent money for 2007 411, quarter newsletter replaced w /annual report Set aside for unspent money for 2008 phone system upgrade Set aside for comp plan to be spent in 20082009 927,760 Set aside for document Imaging (Lacerf/sehe) conversion not completed 700,000 Set aside for Laser iche 700,000 Set aside for Scianc a vity pro/eots Set aside for environmental task some expenditures 13,254,600 set aside far elections 2010 12,587,575 Set aside for 103rd Street Bridge road raisers (City COSY) Updated VIII Designated for Council Contingency 3,550 (2 %of following year budgeted expenditures) 3,300 IX Designated for Local share of Grey Cloud 3,000 Designated for 2008 anticipated fiscal disparfies reduction »» (50% to be used for 2010) Updated »» Designated for potential reduced development fees (bldg Updated »» permit, eng /adm fees) Updated Total Designated 77,000 SubTotal - allocated per fund balance policy 84,300 Budget Carryovers to following Year 84,300 Budget Carryovers 885,334 Outstanding debt 1,818,756 Equipment Replacement 1,299,112 Building Replacement 779,467 Future Pavement Mgmt 519,646 Transferred to separate funds 33,400 Remaining Undesignated Transfer to carryover to equipment replacement »» Remaining year -end General Fund - Fund Balance Updated »» 9,131,584 8,825,796 8,389,875 3 124 /2010G: \finance\2009AFR \Designated Fund Bal 2009 2009 2008 2007 Designated Designated Designated Based on Amount Based on Amount Based on Amount ' 9,837,017 8,853,428 8,966,934 Updated »» 35,038 Updated »» 8,060 Updated »» 7,326 10,213,300 10,338,000 9,620,000 10,213,300 " 5,106,650 10,338,000 5,169,000 9,620,000 4,810,000 Updated »» 623,345 Updated >>>- 667,593 Updated » »" 606,301 927,760 700,000 700,000 12,789,450 1,278,945. 13,254,600 1,325,460 12,587,575 1,258,758 Updated »» 3,550 Updated »» 3,300 Updated »» 3,000 Updated »» 503,809 Updated »» 403,809 Updated »» 328,909 Updated »» 77,000 Updated »» 84,300 Updated »» 84,300 Updated »» 50,000 Updated »» 50,000 Updated »» 50,000 Updated >>>> - Updated >>>> 33,400 Updated »» 15,000 Updated »» 15,000 - Updated »» - Updated »» 10,250 - Updated »» - Updated »» 9,200 - Updated »» - Updated »» 40,000 Updated »» 5,000 Updated »» 5,000 Updated »» 32,000 Updated »» 9,000 Updated »» 9,000 Updated »» 6,000 Updated »» 16,000 20,000 Updated »» 80,000 Updated »» 25,000 Updated »» 24,000 Updated »» - Updated »» - Updated »» 15,000 Updated »» 127,000 127,000 127,000 Updated »» 100,000 200,000 200,000 9,007,097 8,820,922 8,288,044 829,920 32,506 678,890 15% 124,488 15% 4,875 15% 101,832 35% 290,472 35% 11,377 35% 237,612 25% 207,480 25% 8,127 25% 169,723 15% 124,488 15% 4,876 15% 101,834 10% 82,992 10% 3,251 10% 67,889 705,432 27,631 577,058 9,131,584 8,825,796 8,389,875 3 124 /2010G: \finance\2009AFR \Designated Fund Bal 2009 RESOLUTION NO. 10- • • •ray• �r, ., r :, r � r AUTHORIZING TRANSFERS FROM -. WHEREAS, THE City Council has an adopted fund balance policy that designates a portion of each years fund balance, and WHEREAS, this policy provides for additional designations for special purposes; MIN WHEREAS, the fund balance policy directs that amounts above the designated amounts be transferred to other funds for specific uses; and NOW THEREFORE BE IT RESOLVED, the City Council of the City of Cottage Grove, County of Washington, State of Minnesota, directs the following designations of fund balance the following: Cash Flow Purposes $ 5,106,650 Reductions to MVHC 927,760 Compensated absences 623,345 Contingencies 1,278,945 Special Purposes 808,359 Anticipated fiscal disparities reduction 127,000 Potential reduced development fees 100,000 Required by accounting principles 35,038 Budget Carryovers 124,488 $ 9,131,585 AND BE IT FURTHER RESOLVED, that the following transfers be made from the General Fund to the following funds according to the allocation formula in the fund balance policy and that the budgets for these funds be amended for these transfers: Closed Debt Fund for debt management purposes. $290,472 Equipment Replacement Fund for future equipment replacement 207,480 Building Replacement Fund- for future municipal building needs. 124,488 Future Projects Fund for future pavement management projects. 82,922 $705,432 Passed this 7th day of April 2010. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk