DEPARTMENT: Finance
FILE TYPE: Regular Action
TITLE
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Authorization To Amend The 2026 Budget And Execute A Transfer Of Up To $11,893,586 From The Employee Services Reserve Fund To The General Fund
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RESOLUTION
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WHEREAS, the Employee Services Reserve Fund is an internal service fund of Dakota County established to record and fund the liabilities associated with compensated absences and other post-employment benefits (OPEB); and
WHEREAS, as of September 21, 2026 the Employee Services Reserve Fund held cash of $47,332,556 and an unrestricted net position of $6,528,584; and
WHEREAS, the General Fund incurred $5,365,002 of compensated absences costs during 2023 through 2025 for which no corresponding charge was made to, or reimbursement received from, the Employee Services Reserve Fund; and
WHEREAS, the sum of the unrestricted net position of the Employee Services Reserve Fund of $6,528,584 and the unreimbursed General Fund compensated absences costs of $5,365,002 is $11,893,586; and
WHEREAS, Dakota County does not maintain an irrevocable trust for other post-employment benefits, and the assets of the Employee Services Reserve Fund are therefore not reported as plan fiduciary net position and do not reduce the total OPEB liability presented in the County’s government-wide financial statements; and
WHEREAS, the unassigned fund balance of the General Fund is projected to be approximately $6,021,096 at the end of fiscal year 2026, which as a percentage of projected General Fund expenditures of $339,735,383 is 1.8 percent; and
WHEREAS, on August 12, 2026, S&P Global Ratings placed the County’s long-term rating on CreditWatch with negative implications, citing deterioration in General Fund unassigned fund balance; and
WHEREAS, the Dakota County Board of Commissioners adopted an updated version of County Policy 2003 – Fund Balance and Unrestricted Net Position on June 23, 2026, which outlined the obligation of the Board and management to adopt plans to...
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