DEPARTMENT: Finance
FILE TYPE: Consent Action
TITLE
title
Authorization To Amend Environmental Legacy Fund Budget To Transfer Fund Balance To Byllesby Dam Enterprise Fund
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PURPOSE/ACTION REQUESTED
Authorize an amendment to the 2025 budget in the amount of $2,250,000 to permanently transfer funds from the Environmental Legacy Fund (ELF) to Byllesby Dam to cover operating expenses incurred for the Byllesby Dam facility for the period of 2023-2025.
SUMMARY
Dakota County owns the Byllesby Dam and operates its high-hazard hydroelectricity facility under the Federal Energy Regulatory Commission (FERC) safety regulations. Over the past several years, the Dakota County Board of Commissioners has approved significant capital investments into this facility. Most recently, the Board approved a turbine upgrade as part of the Byllesby Dam Water-To-Wire Redevelopment Project.
Notice to proceed on the Byllesby Dam Water-To-Wire Redevelopment project was given on October 1, 2020. The turbines were taken offline in January 2021. Since that time, Byllesby Dam has not been able to generate electricity. The costs associated with operating and maintaining the facility have been unable to be covered by revenues within the Byllesby Dam Enterprise Fund, leading to a negative fund balance. Due to project delays, a transfer of fund balance in the amount of $2,250,000 from the Environmental Legacy Fund (ELF) is required to cover the operating costs for the period of January 2023 through December 2025 and eliminate the negative fund balance in the Byllesby Dam Enterprise Fund.
RECOMMENDATION
recommendation
Staff recommends approval of the proposed budget amendment to the Environmental Legacy Fund and Byllesby Dam Enterprise Fund.
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EXPLANATION OF FISCAL/FTE IMPACTS
This amendment will authorize a transfer in the amount of $2,250,000, reducing the Environmental Legacy Fund (ELF) fund balance and increasing the Byllesby Dam Enterprise Fund Balance.
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, Dakota County owns and operates the Byllesby Dam, a high-hazard hydroelectricity facility; and
WHEREAS, the Dakota County Board of Commissioners approved a turbine upgrade as part of the Byllesby Dam Water-to-Wire Redevelopment Project, leading to a period where the Byllesby Dam has been unable to generate electricity; and
WHEREAS, the costs associated with operating and maintaining the facility have been unable to be covered by revenues from electricity generation within the Byllesby Dam Enterprise Fund during the period of January 2023 to December 2025; and
WHEREAS, staff recommend a transfer in the amount of $2,250,000 from the Environmental Legacy Fund to the Byllesby Dam Enterprise Fund to cover the operating costs of the Byllesby Dam.
NOW, THEREFORE, BE IT RESOLVED, that the Dakota County Board of Commissioners hereby amends the 2025 Budget and approves a transfer of $2,250,000 from the Environmental Legacy to the Byllesby Dam Enterprise Fund; and
BE IT FURTHER RESOLVED, That the 2025 Environmental Legacy Fund budget is hereby amended as follows:
Revenue
Use of Fund Balance $2,250,000
Total Revenue $2,250,000
Other Financing Use
Transfer to Byllesby Dam $2,250,000
Total Other Financing Use $2,250,000
; and
BE IT FURTHER RESOLVED, That the 2025 Byllesby Dam Enterprise Fund budget is hereby amended as follows:
Revenue
Use of Fund Balance ($2,250,000)
Total Revenue ($2,250,000)
Other Financing Source
Transfer from ELF $2,250,000
Total Other Financing Source $2,250,000
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
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: Leng Vang