HomeMy WebLinkAbout17-055 2017 Severance Fund Budget Amendments
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 17-055
A RESOLUTION AUTHORIZING A TRANSFER FROM GENERAL FUND RESERVES TO THE
SEVERANCE FUND (F7010) TO INCREASE THE PERCENT FUNDED LEVEL
Motion By: Braid Second By: Burkart
WHEREAS, Severance Compensation Fund (F701) was established in 2011 as an Internal Service Fund to
provide funding for vacation and sick leave payouts to eligible employees leaving their
employment with the City; and
WHEREAS, Due to the number of long-tenured employees retiring or accepting other employment, the City
has paid out over $200,000 since 2015 resulting in a 2016 year-end fund balance of $305,960.
WHEREAS, Based on the City’s severance policy, the accrued liability totals $872,718 resulting in a
funding percentage of about 35%.
WHEREAS, The City’s auditor has suggested a base funding level of 50% with a plan in place to increase
that level over time.
WHEREAS, A transfer of $100,000 from the General Fund Reserve to the Severance Fund (701) will
increase the percent funding level from 35% to 46%
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. A transfer of $100,000 is authorized from General Fund reserves to the Severance Fund (F701) to
increase the percent funded level from 34% to 46%.
PASSED AND ADOPTED THIS 24th DAY OF APRIL 2017.
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☒ ☐ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Absent ☐ ☒ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager