HomeMy WebLinkAboutResolution 2024 (29)
Resolution No. 29 (2024)
RESOLUTION TRANSFERRING GENERAL FUND UNASSIGNED FUND
BALANCE TO THE HEALTH INSURANCE FUND
COVER MEMO
TO: County Board of Supervisors
FROM: Ken Witt, County Administrator
DATE: July 2, 2024
AGENDA ITEM: Resolution Transferring General Fund Unassigned Fund Balance to the
Health Insurance Fund
______________________________________________________________________________
BACKGROUND INFORMATION
The health insurance fund posted a million dollar loss last year due to high claims. If only a
financial anomaly, we do not want to set next years insurance premiums based on trying to
recoup the drop in fund balance. Because the County pays 90% of the premiums, we could
potentially be overtaxing for health insurance. A reasonable solution would be to take surplus
from other parts of the budget that under spent in 2023. This will balance everything out and
provide for more stability to determine if 2023 was an anomaly or the start of a trend.
In addition, we are considering an on-site employee clinic in 2025 that we project will have a
first year deficit. The long term benefit of the on-site clinic will help with claims costs, as
another tool we are using to provide health insurance premium stability. The fund balance
transfer is also helping with the projected first year implementation deficit for the on-site
clinic.
Resolution No. 29 (2024)
RESOLUTION TRANSFERRING GENERAL FUND UNASSIGNED FUND
BALANCE TO THE HEALTH INSURANCE FUND
1 WHEREAS, the unassigned general fund balance is projected to be over the fund
2 balance target of 35%; and
3
4 WHEREAS, fund balance allocations are normally done annually after the audit is
5 completed and presented in August, but for the unusual circumstances presented this year; and
6
7 WHEREAS, the health insurance fund had an anomaly of a financial year in 2023
8 posting a loss in excess of one million dollars; and
9
10 WHEREAS, the health insurance premium rates are calculated in July each year for the
11 following year rate, taking into account the health insurance fund balance; and
12
13 WHEREAS, an onsite clinic may have an initial loss of $500,000, and $500,000 of this
14 $1,500,000 transfer will allow the clinic to be financially stable in the future.
15
16 WHEREAS, a transfer now from unassigned fund balance to the health insurance fund
17 of $1,500,000 will stabilize insurance premiums and avoid a larger increase to make up the loss
18 from the prior year.
19
20 NOW, THEREFORE, BE IT RESOLVED THAT the St. Croix County Board of
21 Supervisors does authorizes a fund balance transfer for the above stated purposes to the accounts
22 listed below:
23
24 General Fund Unassigned Fund Balance 110-0000-000000-59540-00000-00000 - debit $1,500,000
25 Health Insurance Fund 701-1535-000000-49210-00000-00000 - credit $1,500,000
Legal – Fiscal – Administrative Approvals:
Legal Note:
Fiscal Impact: $1.5 million transfer moves assets from the general fund to health insurance fund.
The intention is to reduce the impact of health insurance premium increases on
future budgets.
06/18/24 Administration Committee RECOMMENDED
RESULT: RECOMMENDED \[UNANIMOUS\]
MOVER: Bob Long, Supervisor
SECONDER: Scott Counter, Vice-Chair
AYES: Long, Berning, Feidler, Counter, Sherley
Vote Confirmation.
St. Croix County Board of Supervisors Action:
Roll Call - Vote Requirement – Majority of Supervisors Present
RESULT: ADOPTED AS AMENDED \[18 TO 1\]
MOVER: Paul Berning, Supervisor
SECONDER: Scott Counter, Supervisor
AYES: Lind, Anderson, Long, Leaf, Reis, Adams, Berning, Feidler, Ostness, Counter,
Hansen, Sherley, Tellijohn, Carlson, Barcalow, Swanepoel, VanSomeren, Ramberg
NAYS: Richard Ottino
This Resolution was Adopted as Amended by the St. Croix County Board of Supervisors on July 2, 2024
Christine Hines, County Clerk