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Home My WebLink About2016-03-16 PACKET 04.J. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # �� DATE 03/16/16 . � PREPARED BY: Finance Robin Roland ORIGINATING DEPARTMENT DEPARTMENT HEAD * * * * * * * * * * * * * * * * * � * * * * * * * * :� * * * * * * * * � * � * * * * * * * * * * COUNCIL ACTION REQUEST: Receive information about 2015 General Fund balance designations pursuant to the City's Fund Balance (transfer) policy. STAFF RECOMMENDATION: No action required. Information only. 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: Fund balance analysis ADMINISTRATORS COMMENTS: � �� - � , ._ ___..� /� ,, �, �� 6 le� � � -�� ty Ac�miriistra or ate * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * � * * * * * * * * * � H:\Council items\council-action template.docx Cottage � Grove �here Pride and PrOSPerity Meet To: Mayor and City Council Members Charlene Stevens, City Administrator From: Robin Roland, Finance Director � Date: March 10, 2016 Subject: Fund Balance - General Fund at December 31, 2015 Introduction In accordance with Resolution 2011-165, the City Council is advised about 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, 2015. The 2015 adopted budget anticipated no change to the fund balance. At December 31, 2015, General Fund operating revenues are projected to be 6.5% greater than the adopted budget. Operating expenditures are projected at 2.3% less than the adopted budget. In summary, the amount of revenues in excess of expenditures is $1,030,059. This increase in the fund balance allows for the following fund transfers identified by the Fund Balance policy: Outstanding debt $235,971 Equipment replacement 168,551 Building replacement 101,131 Future pavement management 67,430 Total $573,083 General Fund - Fund Balance at December 31, 2015 is as follows: Non-spendable Fund Balance: Prepaid Items $ 15,383 Compensated absences 818,494 Assigned Fund Balance: Designated for 2016 budget 520,000 Emerald Ash Borer program 40,200 Future K-9 expenditures 15,163 Public Safety-Squads 10,000 School Bus safety 4,500 Unassigned Fund Balance (working capital) 8,829,697 $10,253,437 Please note that this information is subject to audit and is not finalized. Assiqnment 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 has set aside funding in an amount to balance revenues and expenditures in the General Fund if necessary. $520,000 remains assigned for use in the 2016 Budget. • The Emerald Ash Borer project began in 2010 with budgeted funds and grant funding. The initial six years of the program has resulted in 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." $4,200 was used in 2015 to begin outfitting a new vehicle for the new K-9. The $15,163 balance will be used for 2016 budgeted K-9 expenses. • Although new squads were acquired as budgeted for 2015, not all squads were fully outfitted with equipment by year end. Therefore, $10,000 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 $4,500. The remaining $8,829,697 is the 55°/o 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 2015 2014 2073 2012 2011 Computation of Fund Balance-December 31,2015 Designated Designated Designated Designated Designated Based on Amount Based on Amount Based on Amount Based on Amount Based on Amount General Fund Amount Available:Perthe pre/iminary financia/statements * $10,826,510 * $ 9,512,141 * $ 9,231,966 * $ 9,405,893 * $ 8,860,447 Non Spendable Fund Balance Prepaid Items Updated»» 15,383 Updated»» 18,019 Updated»» 13,175 Updated%»> 5,764 Updated»» 24,382 Compensated Absences Updated»» 818,494 Updated%»% 804,771 Updated%»> 794,432 Updated»» 752,309 Updated>%» 725,863 Fund Balance Amounts Assigned Fund Balance Amounts Assigned Fund Balance Amounts Assigned Fund Balance Amounts Assigned Fund Balance Amounts Assigned GASB 54 Fund Balance Polic GASB 54 Fund Balance Polic GASB 54 Fund Balance Polic GASB 54 Fund Balance Polic GASB 54 Fund Balance Polic OtherAmounts as determined by City Administrator/Finance Director Designated for2016 Budget(previously MVHC) Updated»» 520,000 Updated»» 499,864 Updated»» 494,209 Updated%%%� 648,053 Updated»» 648,053 Amounts collected for violations of"schoo/bus arm" Updated»» 4,500 Updated»» 4,500 Updated»» 4,150 Updated»» 4,050 Updated»» 3,750 Parkplayground equipmenbshelterreplacementcarryover Updated»» - Updated»» - Updated»» 80,889 Updated»» 217,091 Updated»» 217,091 Set aside for future EAB activiites Updated»» 40,200 Updated»» 40,200 Updated»» 40,200 Updated»» 40,200 Updated»» 40,200 Set aside forfuture K-9(CG Crime eoard donation) Updated»>% 15,163 Updated»» 19,363 Updated»» 19,363 _ _ Setasideforsquads Updated»>% 10,000 Updated»» - _ Set aside forguns U dated»» _ Updated»» 10,000 Updated»» Updated»» 23,000 Set aside for atewa p Updated»» Updated»» Updated»» 3,500 g ypondlandscaping Updated»» Updated»» - Set aside for PS safet Updated»» Updaled>%» 30,000 ygearfrom donations Updated»» Updated»» 12,000 Unassigned Fund Balance per GASB54 fund Balance Policy 15,870,120 14,751,680 14,137,360 13,462,730 13,051,105 55%ofsubsequentyearGeneralFundErpenditures 55% 8,728,566 8,113,424 7,775,548 7,404,502 7,178,108 Total 10,152,306 9,512,141 9,231,966 9,105,469 8,860,447 Amounts in excess of fund balance policy-available for transfer 674,204 - 300,425 Budget Carryovers 0% - 0% - 0°/ - 0% - 15% - Outstanding debt 35% 235,971 35% - 35°/ - 35% 105,149 35% - Equipment Replacement 25% 168,551 25% - 25% - 25% 75,106 25% - Building Replacement 15% 101,131 15% - 15% - 15°/ 45,064 15% - Future Pavement Mgmt 10% 67,420 10% - 10% - 10% 30,042 10% - Transferred to other funds 573,073 - 255,361 Remaining Unassigned 101,131 Unassigned - Unassigned - Unassigned 45,064 Unassigned Remaining year-end General Fund-Fund Balance $10,253,437 $ 9,512,141 $ 9,231,966 $ 9,150,532 $ 8,860,447