DEPARTMENT: Finance
FILE TYPE: Consent Action
TITLE
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Establishment Of 2025 Fund Balance Commitments
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PURPOSE/ACTION REQUESTED
Establish the designation of Committed Fund Balances for fiscal year 2025.
SUMMARY
Per the Dakota County Fund Balance Policy No. 2003, the County may impose constraints on certain spending that shall be determined by the close of the fiscal year by action of the County Board of Commissioners. These funds are classified as Committed Fund Balance.
The classification of Committed Fund Balance falls under Statement 54 of the Governmental Accounting Standards Board (GASB) - Fund Balance Reporting and Governmental Fund Type Definitions and applies to fund balances reported in the local government’s major fund categories and fund types.
By Resolution No. 15-583 (November 17, 2015), the Dakota County Board of Commissioners authorized the establishment of the Environmental Legacy Fund (ELF) with the stated purpose of “protection, preservation or enhancement of the environment.” The ELF was established by moving the host fee and gravel tax revenue from the Environmental Management Fund and reporting the remaining fiscal activity of the Environmental Management Fund as General Fund activity. This structure allows the County to report the ELF activity separately in the Annual Comprehensive Financial Report (ACFR).
Committing these funds does not restrict the Board from amending the commitment in the future and does not affect the amount of expenditures budgeted for 2026.
RECOMMENDATION
recommendation
Staff recommends designating the unrestricted fund balance in the ELF Fund as Committed Fund Balance as of December 31, 2025, for the purposes of protection, preservation, or enhancement of the environment.
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EXPLANATION OF FISCAL/FTE IMPACTS
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, the Governmental Accounting Standards Board has adopted Statement 54, a standard for reporting governmental fund balances; and
WHEREAS, the County's Fund Balance Policy No. 2003 states that the Board of Commissioners may impose certain constraints on spending that shall be determined by the close of the fiscal year; and
WHEREAS, Dakota County desires to commit a portion of its fund balance for future funding; and
WHEREAS, the Environmental Legacy Fund (ELF) was established to support environmental activities for the purpose of protection, preservation or enhancement of the environment; and
WHEREAS, by reporting ELF revenue and expenditures with the Environmental Legacy Fund as committed, ELF will meet the qualifications of a special revenue fund and allow the County to report the ELF activity in the Annual Comprehensive Financial Report (ACFR).
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners, in accordance with and pursuant to Policy 2003 Fund Balance, hereby commits the entire fund balance of the Environmental Legacy Fund as of December 31, 2025, to support environmental activities for the purpose of protection, preservation or enhancement of the environment.
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PREVIOUS BOARD ACTION
15-585; 11/17/15
ATTACHMENTS
Attachment: None
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Will Wallo
Author: Lucas Chase