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Home My WebLink About2011-03-16 PACKET 04.H.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 3/16/11 • PREPARED BY Finance Robin Roland ORIGINATING DEPARTMENT DEPARTMENT HEAD COUNCIL ACTION REQUEST Adopt resolution approving 2010 fund balance designations for the General Fund and authorizing transfers from the General Fund according to the Fund Balance Policy. STAFF RECOMMENDATION Adopt resolution approving 2010 fund balance designations for the General Fund and authorizing transfers from the General Fund according to 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 DATE REVIEWED El El ACTUAL AMOUNT APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS ® MEMO /LETTER: ® RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS ;d iof r City Administrator Date Wfinance \Council Items\2011 \CC Ac orm 2010 � fundbalance.doc Date: March 10, 2011 Subject: Designate 2010 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, 2010 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 2010. 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, 2010, the fund balance in the General Fund will increase by $251,770 before transfers. Under the fund balance policy, $251,770 will be transferred to other funds, leaving the general fund balance at $9,131,584. The transfers include: Closed Debt fund for debt management purposes $103,670 Equipment Replacement fund for future equipment replacement 74,050 Building Replacement fund for future municipal building needs 44,430 Future Project Fund for future pavement management projects 2 Total Transfers $251,770 After transfers, the fund balance available for designation will be $9,131,584. This is designated according to the fund balance policy as follows: Cash Flow Purposes $5,172,550 Reductions to MVHC 975,256 Compensated absences 706,097 Contingencies 1,304,750 Special purposes 667,609 Anticipated fiscal disparities reduction 127,000 Potential reduced development fees 100,000 Required by accounting principles 33,905 Budget carryovers 44,417 $9,131,584 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 $3,600. • There has been $100,000 budgeted per year from 2003 - 2008 for park equipment and shelter replacement. If the $100,000 was not spent in the current year a carryover is done for the unspent dollars. In 2010, $35,600 was used for Pine Tree Valley Park improvements, which leaves $468,209 at year end. This program was started to replace playground equipment and then to begin to save for larger building expenditures. • There are seven budget items that were not completed in 2010 that fund balance is designated for: 800 Mhz equipment and radio service 50,000 Comprehensive plan 5,000 Laserfiche /Document imaging conversion 6,600 Sustainability projects 80,000 Hearthside Rink board replacement 8,000 Future Emerald Ash Borer (EAB) activities 40,200 Squad car setup 6,000 • :11 Designated for Budget Carryovers As part of the fund balance policy 15% of unallocated fund balance is to be designated for budget carryovers. $44,417 is designated as of December 31, 2010 for this purpose. Action Requested Council is requested to adopt the attached resolution approving transfers and designating the fund balance. 4 • Staff recommends that the resolution be approved as presented. General Fund Reserved / Designated Fund Balance I Amount Available par file fleancral ottamn"We 11 Prepaid Items III Cash Flow Reserves Following year GF Prop. Tax Levy Amount Following year GF LGA Amount 2002 GF HACA 9,383,354 One half of total 9,837,017 IV Compensated Absences 33,905 Entire amount In GLTD AS group for Comp Abe. 35,038 V MVHC Reductions (LGA prior to 2004) 5,000 amount 01 prean0al AID nomMon- oat of one full year 9,000 VI Contingencies 20,000 10% of following year budgeted expenditures VII Amounts designated for Special Purposes Fel Enhanced 911 commun)catlan reel, ¢enacted Amount, collboted (or Wmatlone of "echeo) bus arm" Park playground equipment /shelter replacement carryover Set asrde car GIS system & wele-fprmat printer nor completed In 2006 -2009 Set asrde for 800 Mhz ($50.000) Set pride for 800 Mhz radio xerv)ee ($33,400) Set aside for Ke, lon Pork storage and portable restrpoms not completed 1, 2008 -2009 Set neake key comp plan to be spent In 2008/2009 Sot t aide for tlocumant imQglog (Lasem"hY oonverslon not pomp @led Sot asitle for L po h Set made for Slra summlllly repads Set aside for envlroomantal tank force expemi moron set aside ton ahmareek 2010 Set aside for Heertba)de rink beyed, not somplemd Iri 2010 Sat aside for tut. FAB actwidee Set aside for Sri,., not setup In 2010 VIII Designated for Council Contingency (2 %of Dflowing year budgeted expondkoros) IX Designated for Local share of Grey Cloud Designated for 2008 anticipated fiscal disparties reduction (50% to be used for 2010) Designated for potential reduced development fees dead permit, eng /adm fees) Total Designated SubTotal - allocated per fund balance policy Budget Carryovers to following Year Budget Carryovers 929,751 Outstanding debt 1,922,426 Equipment Replacement 1,373,162 Building Replacement 823,897 Future Pavement Mgmt 549,266 Transferred to separate funds Remaining Undesignated Transfer to carryover to equipment replacement Remaining year -end General Fund - Fund Balance Based on Amount Based on Amount " 9,383,354 " 9,837,017 sated »» 33,905 Updated »» 35,038 10,345,100 5,000 10,213,300 9,000 Iodated »» 706,097 975,258 13,047,501 1,304,750 3,600 468,209 50.000 »» »» 5,000 6,600 80,000 8.000 40,200 6,000 127,000 100,000 9,087 167 296,187 15% 44,417 35% 103,670 25% 74,050 15% 44,430 10% 29,620 251,770 9,131,583 )parted »» 623,345 927,760 12,789,450 1,278,945 »» 3,550 »» 503,809 »» 77,000 >11> 50,000 >>>> 15,000 > > >> 5,000 > >>> 9,000 > »> 16,000 »» 80,000 »» 25,000 »» 24,000 »» 127,000 > - -> 100,000 9,007,097 829,920 15% 124,488 35% 290,472 25% 207,480 15% 124,488 10% 82,992 Jpdated »» 705 432 9,131,584 Based on Amount 8,853,428 iodated »» 8,060 10,338,000 Jpdated >>>:" 667,593 00,000 13,254,600 1,325,460 Jpdated »» 3,300 iodated »» 403,809 Jpdated > »> 84,300 Jpdated »» 50,000 Jpdated »» 33,400 Jpdated »» 15,000 - Iodated »» 5,000 Jpdated »» 9,000 20,000 127,000 200,000 8,820,922 32,506 15% 4,875 35% 11,377 25% 8,127 15% 4,876 10% 3,251 27,631 8,825,796 3D/2011G: \finance \2010 AFR\Deslgnated Fund Bal 2010.xis : •_ •►+ • • ,•• l -: M-'171 ' ITIF.151WITEPTNUIRM - FROM WHEREAS, THE City Council has an adopted fund balance policy that designates a portion of each years fund balance, and and WHEREAS, this policy provides for additional designations for special purposes; 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 $ 5,172,550 Reductions to MVHC 975,256 Compensated absences 706,097 Contingencies 1,304,750 Special Purposes 667,609 Anticipated fiscal disparities reduction 127,000 Potential reduced development fees 100,000 Required by accounting principles 33,905 Budget Carryovers 44,417 $ 9,131,584 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. $103,670 Equipment Replacement Fund for future equipment replacement 74,050 Building Replacement Fund- for future municipal building needs. 44,430 Future Projects Fund for future pavement management projects. 29,620 251,770 Passed this 16th day of March 2011. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk