HomeMy WebLinkAboutResolution 2021 (09) Resolution No. 9 (2021)
ST. ROM�w UNTY RESOLUTION AUTHORIZING FUND BALANCE TRANSFER
COVER MEMO
TO: County Board of Supervisors
FROM: Ken Witt, Interim County Administrator
DATE: February 2, 2021
AGENDA ITEM: Resolution Authorizing Fund Balance Transfer
BACKGROUND INFORMATION
The HRA fund was used for many years in conjunction with the health insurance program to
offset employees deductibles. A specific dollar amount was set aside for each employee each
year into the separate HRA fund. Two years ago we restructured the deductibles to reduce the
deductibles and eliminate the HRA component. The HRA fund was sunset to expire at the end of
2020. There remains a balance of $1,146,175.50 in the HRA fund with no anticipated future
expenses.
The RHS fund is a fund that pays out retiring employees for their LTSB (long term sick leave
bank) to a health insurance restricted account to use post-retirement. The RHS fund has a
negative fund balance of $353,402.09 currently and has a history of being under funded and
requiring contributions from the general fund to bring back to zero.
Closing the HRA into the RHS fund will provide for a balance in the RHS of $792,773.41 and
allow the fund several years without requiring a contribution from the general fund.
Resolution No. 9 (2021)
ST. ROM�w UNTY RESOLUTION AUTHORIZING FUND BALANCE TRANSFER
1 WHEREAS, the Health Reimbursement Account was a sunset program ending at the end
2 of 2020 and has a remaining fund balance of approximately $1,146,175.50 of unused health
3 funds; and
4
5 WHEREAS, a review of the fund balance for the Retirement Health Savings fund shows
6 a negative fund balance of$353,402.09; and
7
8 WHEREAS, both funds were health insurance related for the employees, at different
9 stages in the cycle; and
10
11 WHEREAS, the Health Reimbursement Account fund has no further expected expenses.
12
13 NOW, THEREFORE, BE IT RESOLVED that the St. Croix County Board of
14 Supervisors does hereby authorizes transfer of funds to close the HRA fund to the RHS fund
15 with the transfer to and from the accounts listed below:
16
17 HRA Fund Unassigned Fund Balance 710-0000-000000-59570-00000-00000:
18 debit $1,146,175.50
19
20 RHS Fund Balance 720-0000-000000-49210-00000-00000:
21 credit$1,146,175.50
Legal-Fiscal-Administrative Approvals:
Legal Note:
Fiscal Impact: Reallocation of resources from closed fund to Retirement Health Savings fund that
has negative fund balance.
749 41,01 jh '�n tu-i r)&k
Corporation CcMnW3/2D2T n, k rim Fina Dili& 1/13/2021
07
K&W' ,�Z (kdmiinfl&ihd�
i 1/13/2D21
01/19/21 Administration Committee RECOMMENDED
......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ..........
RESULT: RECOMMENDED [UNANIMOUS]
MOVER: Scottie Ard, Vice Chair
SECONDER: Bob Long, Chair
AYES: Long, Koch, Ard, Peterson, Peavey
Vote Confirmation.
66b Long AdminisVant n,C6 1/20/2021
SL Croix County Board of Supervisors Action:
Roll Call -Vote Requirement— Majority of Supervisors Present
......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ..........
RESULT: ADOPTED [UNANIMOUS]
MOVER: Scottie Ard, Supervisor
SECONDER: Dave Ostness, Supervisor
AYES: Schachtner, Anderson, Leaf, Koch, Berning, Ottino, Feidler, Ostness, Counter,
Hansen, Ard, Tellijohn, Peterson, Anderson, Achterhof, Tomtschik, Peavey
ABSENT: Bob Long, Tim Hall
This Resolution was Adopted by the St. Croix County Board of Supervisors on February 2, 2021
Cindy Campbell, County Clerk