HomeMy WebLinkAbout#16 - Uncommit Fund Balance for Legal FeesSTAFF REPORT
DATE: December 4, 2018
REGULAR
ITEM #16 – Consent
MOTION
TO: Honorable Mayor and City Council
FROM: Sue Iverson – Finance Director
AGENDA ITEM: 2019 Fee Schedule
REVIEWED BY: Kristina Handt – City Administrator
BACKGROUND:
In 2016, the LMCIT had special underwriting conditions on the City’s policy which raised the deductible
from $500 to $200,000. As a result, on December 20, 2016, the City Council passed a resolution
committing $200,000 of the General Fund balance to be used against any deductible amount charged to the
City as the duration of the special underwriting was uncertain.
ISSUES BEFORE THE CITY COUNCIL:
1) Should the Council remove the commitment on General Fund reserves and return it to the
undesignated fund balance reserves?
DISCUSSION:
The LMCIT has removed all of the special underwriting conditions from the City’s policy effective
for 2019. The City Council has approved a $1,000 deductible for 2019. The original action
approved by the City Council was that the monies be replaced in the General Fund reserves with no
restrictions if the special underwriting conditions were terminated.
FISCAL IMPACT:
The $200,000 commitment would be removed from the General Fund reserves and move the amount to
undesignated reserves.
OPTIONS:
1) Approve removing the $200,000 commitment on General Fund reserves.
2) Amend and then approve removing the $200,000 commitment on General Fund reserves.
3) Do not approve removing the $200,000 commitment on General Fund reserves.
RECOMMENDATION:
If removed from consent agenda:
Motion to adopt Resolution 2018-134, a resolution removing the commitment on General Fund
balance.
ATTACHMENTS:
1) Resolution 2018-134 Resolution Removing the Commitment on General Fund Balance.
CITY OF LAKE ELMO
COUNTY OF
WASHINGTON STATE OF
MINNESOTA
RESOLUTION NO. 2018-134
RESOLUTION REMOVING THE COMMITMENT ON GENERAL FUND
BALANCE
WHEREAS, the City Council of the City of Lake Elmo adopted Resolution 2016-112
placing a commitment of $200,000 on General Fund reserves for insurance deductibles; and
WHEREAS, the special underwriting conditions placed on the City which resulted in
the $200,000 deductible has now been removed; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Elmo,
that the commitment on the General Fund reserves for insurance deductibles be removed.
Dated: December 4, 2018.
Mike Pearson, Mayor
ATTEST:
Julie Johnson, City Clerk
(SEAL)