DEPARTMENT: Finance
FILE TYPE: Consent Action
TITLE
title
Approval Of Revisions To Policy 2003 Fund Balance And Unrestricted Net Position
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PURPOSE/ACTION REQUESTED
Approve revisions to Policy 2003 Fund Balance and Unrestricted Net Position.
SUMMARY
Policy 2003 sets the fund balance targets for Dakota County's General Fund, special revenue funds, capital project fund, debt service fund, and enterprise funds. The revised policy (Attachment) recommends a minimum unassigned fund balance of 35 percent of General Fund expenditures as of the end of the fiscal year to establish sufficient working capital and margin for subsequent year operations. The revised policy sets a maximum unassigned fund balance of 50 percent of General Fund expenditures as of the end of the fiscal year to ensure that Dakota County does not retain excess reserves. These thresholds are aligned with the recommended best practices for county governments published by the State of Minnesota's Office of the State Auditor (OSA).
The revised policy also adopts a formal framework and milestones for fund balance replenishment when Dakota County is out of compliance with the fund balance policy minimum. This framework will ensure fiscal accountability while creating realistic targets for the County to achieve on the path back to sufficient reserve levels.
Additionally, the revised policy adopts fund balance minimums for Dakota County's special revenue funds to ensure sufficient working capital and margin for operating and capital expenditures. New policies are also adopted for the capital projects fund and debt service fund to ensure sufficient reserves on-hand to cash flow capital projects and make scheduled debt service payments.
Lastly, the revised policy adopts an unrestricted net position minimum for the Byllesby Dam Enterprise Fund and the Geographic Information System Enterprise Fund, which are accounted for on a full accrual basis.
RECOMMENDATION
recommendation
Staff recommend Board ap...
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