City will use 2012 surplus to pay off community center debt
The city of Rosemount will use excess money from its 2012 budget to pay off the city's debt related to the Community Center/ National Guard Armory. The council voted Tuesday to use the excess funds for the debt and for future building capital improvement projects.
Finance director Jeff May said the city's 2012 fund balance excess was calculated at $455,361. The council designated $430,000 towards repayment of the community center and $25,000 towards future projects.
May said by paying off the debt early the city will save approximately $86,000 per year for the next five years beginning with the 2013/14 levy. The repayment will be completed in semi-annual payments to the National Guard beginning in 2014.
The city's fund balance policy allows the excess fund balance to dip to 45 percent of the next year's budget if the city council has a special project or need. May said that was not necessary in 2012. The 2012 fund balance exceeded 55 percent of the 2013 general fund operating budget.
Over the last several years the city has used excess dollars to pay down debt and for future projects. In 2012 the city used surplus funds to pay down debt related to the Dakota Communications Center. Additionally, the city council assigned money to the city's capital improvement plan fund and to help defray future health insurance increases.