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Home My WebLink About2015-03-18 PACKET 04.H. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA � MEETING ITEM # i DATE 03/18/15 � � i I PREPARED BY Finance Robin Roland ORIGINATING DEPARTMENT DEPARTMENT HEAD ***�*****�*****�******:�************************* COUNCIL ACTION REQUEST Consider Fund Balance information for the year ended December 31, 2014. STAFF RECOMMENDATION No action required BUDGET IMPLICATION BUDGETED AMOUNT ACTUAL AMOUNT ADVISORY COMMISSION ACTION DATE REVIEWED APPROVED DENIED ❑ PLANNING ❑ ❑ ❑ ❑ PUBLIC SAFETY ❑ ❑ ❑ ❑ PUBLIC WORKS ❑ ❑ ❑ ❑ PARKS AND RECREATION ❑ ❑ ❑ ❑ HUMAN SERVICES/RIGHTS ❑ ❑ ❑ ❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS � MEMO/LETTER: ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: � OTHER: Computation of fund balance - 12/31/14 ADMINISTRATORS COMMENTS , � , l/ City Administrator Date *********************�**�*�**�***�************�* H:\Council items\council-action template.docx Cotta�e Grove I � Pride and P�osPerity P1eet To: Mayor and City Council Members Ryan Schroeder, City Administrator From: Robin Roland, Finance Director Date: March 11, 2015 Subject: Fund Balance — General Fund at December 31, 2014 Introduction Each year, in accordance with Resolution 2011-165, the City Council is given a report regarding the designation of fund balance and associated transfers as soon as is practical after the close of the fiscal year. Discussion Attached is a calculation of the assigned and unassigned General Fund Balance for the year ended December 31, 2014. (Please note that this information is subject to audit and is not finalized.) The 2014 adopted budget anticipated no change to the fund balance. At December 31, 2014, General Fund operating revenues are projected to be 2.9% greater than the adopted budget. Operating expenditures are projected at 1% greater than the adopted budget. In summary, the amount of revenues in excess of expenditures is $280,175. Although this increase in the fund balance is significant, fund transfers identified by the Fund Balance policy will not occur. The minimum retention amounts identified by the policy result in no available funds for transfers. Under the fund balance policy, the General Fund — Fund Balance at December 31, 2014 is as follows: Non-spendable Fund Balance: Prepaid Items $ 18,019 Compensated absences 804,771 Assigned Fund Balance: Tax Stabilization funds 499,864 Emerald Ash Borer program 40,200 Future K-9 expenditures 19,363 Public Safety Equipment (2014 Donations) 12,000 School Bus safety 4,500 Unassigned Fund Balance (working capital) 8,113,424 $9,512,141 Assignment of Fund Balance for Specific Purposes The City Administrator and Finance Director have assigned the following balances for specific purposes under the policy. • Since 2009, the City Council set aside in the Fund Balance for the MVHC unallotted by the State legislature. This set aside was considered in successive budgeting processes as an amount to balance revenues and expenditures in the General Fund if necessary. MVHC was eliminated as a revenue source in 2012. The balance of $499,864 remains assigned for future use. • The Emerald Ash Borer project began in 2010 with budgeted funds and grant funding. The initial three year span of the program has a carryover of $40,200 funding which is assigned for use by the Forestry division. • A donation was received from the Cottage Grove Crime Prevention Board in 2013 for use towards the "future expenditures of the K-9 program." The $19,363 is assigned for those expenses. • Certain donations were received for Public Safety equipment in 2014 and the equipment will be purchased in 2015. $12,000 of fund balance is assigned for this purpose. • 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 $4,150. The remaining $8,113,424 is the 55% of annual expenditures set aside for working capital as provided by the amended Fund Balance Policy. Under GASB 54, this amount is described as "Unassigned". Action Requested No action is required by the Council. GeneralFund 2014 2013 Computation of Fund Balance - December 31, 2014 Designated Desi Based on Amount Based on An General Fund Amount Available : Per the preliminary frnancial statements * $ 9,512 141 * $ 9 Non Spendable Fund Balance Prepaid Items Updated »» 18,019 Updated »» Compensated Absences Updated »» 804,771 Updated »» Fund Balance Amounts Assigned Fund Balance Amounts A GASB 54 Fund Balance Polic GASB 54 Fund Balance Other Amounts as determined by City Administrator/Finance Director Taxstabilization (FormerlyMVHCcarryover) Updated »» 499,864 Updated »» Amounts collected for viola6ons of "school bus arm" Updated »» 4,500 Updated »» Park playground equipment/shelterreplacement ca�ryover Updated »» - Updated »» Set aside forfuture EAB ac6viites Updated »» 40,200 Updated »» Set aside forfuture K-9 (CG Crime eoard donation) Updated »» 19,363 Updated »» Set aside forsquads (2011,2013) & tasers (2011J Updated »» - Updated »» Setasideforguns Updated »» - Updated »» Setasideforgatewaypondlandscaping Updated »» - Updated »» SefasideforPSsafetygearfromdonations Updated»» 12,000 Unassigned Fund Balance per GASB54 fund Balance Policy 14,751,680 14,137,360 55%ofsubsequent 55% 8,113424 7 Total 9 512 141 9 Amounts in excess of fund balance policy - available for transfer - Budget Carryovers 0% - 0% Outstanding debt 35% - 35% Equipment Replacement 25% - 25% Building Replacement 15°/o - 15% Future Pavement Mgmt 10% - 10% Transferred to other funds Remaining Unassigned - Unassigned Remaining year-end General Fund - Fund Balance $ 9,512,141 $ 9, 2012 2011 gnated Designated Designated iount Based on Amount Based on Amount 231,966 * $ 9 405,893 ' $ 8,860,447 13,175 Updated »» 5,764 Updated »» 24,382 794,432 Updated »» 752,309 Updated »» 725,863 ssigned Fund Balance Amounts Assigned Fund Balance Amounts' Assigned Polic GASB 54 Fund Balance Polic GASB 54 Fund!Baiance Poiic 494,209 Updated »» 648,053 Updated »» 648,053 4,150 Updated »» 4,050 Updated »» 3,750 80,889 Updated »» 217,091 Updated »» 217,091 40,200 Updated »» 40,200 Updated »» 40,200 19,363 - - 10,000 Updated »» - Updated »» 23,000 - Updated »» 3,500 - Updated »» 30,000 13,462,730 13, 051,105 775 548 7,404,502 7,178,108 231 966 9,105,469 8, 860,447 - 300 425 - 0% - 15% - - 35% 105,149 35% - - 25% 75,106 25% - - 15% 45,064 15% - - 10% 30,042 10% - - 255,361 - Unassigned 45,064 Unassigned - 231,966 $ 9,150,532 $ '8.860.447