Adopt Resolution #21-073 Approving the Transfer of Excess General Fund Revenues to the Equipment Revolving Fund, Facilities Construction Fund, Capital Maintenance Fund and Public Improvement Revolving (PIR) Fund.

The City Council originally adopted a policy on February 22, 1994, known as the Excess Revenue Policy (Resolution #94-02-045-Resolution Establishing a Financial Policy for the Purpose of Allocation of Excess/Deficient General Fund Revenues) with the last amendment of this policy occurring on May 10, 2016 (Resolution #16-05-089) a copy of which is attached. The Excess Revenue Policy states that the fund balance will be at 50% of the next year's operating expenditures, plus any encumbrances and compensated absences.  These items totaled $841,342.27 and are reflected as such:            50% of 2021 Budget increase:                                                                                $539,879.50            Comp Absence Liability increase:                                                                           $145,162.77            Encumbrances:                 Police 2021 Contract Settlement (not budgeted)                       2.75% to 3.75% COLA & one-time pay                                                         $ 26,300.00                  Workers Comp Increase (not budgeted)                        (Numbers not known until January-LOGIS pool)                         increase due to major uptick in police costs                                                 $60,000.00                General Liability Increase (not budgeted)                       (Numbers not known until January-LOGIS pool)                                            $20,000.00                 Fire Protection Revenue Decrease:  Budgeted at $60,000 or full-year                           Nowthen expected terminate contract 4-1-21                                            $40,000.00                 Fire Personnel-Includes Duty Officer On-Call Pay (not budgeted)                       $10,000.00                       Total Fund Balance Additions                                                                       $841,342.27                After meeting the fund balance requirements at year ending December 31, 2020, $1,376,214.72 ($575,816.94 excess in 2019) remained as excess revenues to be transferred from the General Fund.  The majority of the excess was attributed to building permit revenue exceeding budget, CARES federal funds received that covered a significant portion of allowable public safety personnel expense in relation to the COVID pandemic and increase in interest earnings related mostly to the write-up of investments to market value on December 31, 2020 and not true interest earned.  As stated in the policy, transfers from the General Fund would be as such:                                                     Facilities Construction Fund (10%)                                  $137,621.46                                         Equipment Revolving Fund (30%)                                   $412,864.42                                         Capital Maintenance Fund (30%)                                    $412,864.42                                         Public Improvement Revolving (PIR) Fund (30%)           $412,864.42

A line item detail of the 2020 General Fund Budget is attached.  The report shows a comparison of budget-to-actual and an overall summary of all departments. The last page shows how the excess revenue transfer was calculated based on policy.  A chart of accounts is also attached to give a description of a respective line item (object #).

Alternatives:
    1.  Adopt Ordinance #21-073 transferring $1,376,214.72 to the respective funds per excess revenue policy.

    2.  Adopt Ordinance #21-073 transferring $___________ to the respective funds per excess revenue policy.
 

Staff recommends that $1,376,214.72 be transferred from the General Fund to the Equipment Revolving Fund in the amount of $412,864.42, the Capital Maintenance Fund in the amount of $412,864.42, the Public Improvement Revolving Fund in the amount of $412,864.42 and the Facilities Construction Fund in the amount of $137,621.46 per the Allocation of the Excess Revenue/Deficient policy

Motion to adopt Resolution #21-073 Approving the Transfer of Excess General Fund Revenues to the Equipment Revolving Fund, Facilities Construction Fund, Capital Maintenance Fund and Public Improvement Revolving (PIR) at the stated rates.