Impact
WARD: City-Wide
COMMITTEE: Finance
$ IMPACT: Reclassification of GF Fund balance between Unassigned and Committed in the amount of $1,442,620.65.
Title
Approval to remove a portion of the retirement commitment of General Fund, Fund Balance in the amount of $1,442,620.65.
Body
ISSUE: Approval to remove $1,442,620.65 from the retirement commitment of General Fund fund balance.
BACKGROUND: In October 2014, a majority of Council voted to commit a portion of the FY14 surplus for a future payment contingent on the results of an ongoing retirement audit. This action increased the balance of the "commitment" to $1,750,000. In July 2015, the retirement audit was completed resulting in an amount due of $1,602,911.93. At the July 20,2015 meeting, a majority of Council voted to approve the payment of $1,602,911.93 to GMA. In the COW meeting preceding this Council meeting the Finance Director, Toni Jo Howard, recommended using the $1,000,000 committment that was established in October 2014 in addition to other GF dollars to pay GMA; this was not part of the approved agenda item to pay GMA. As a result, the commitment was not relieved and the entire amount was paid with unassigned fund balance.
The payment was allocated as follows:
General Fund $1,442,620.65
Water Fund 86,557.24
E-911 Fund 64,116.47
Hotel/Motel Fund 9,617.47
$1,602,911.83
RECOMMENDATION/REQUESTED ACTION: Recommend that Council approve un-commitment of $1,442,620.65 of retirement commitment of General Fund fund balance for the year-ended June 30, 2016.