CEDAR FALLS – Several large health insurance claims have led the city administration to recommend that about half of the general fund’s year-end surplus be used to cover the resulting loss in its insurance fund.
City council will consider approving a resolution Tuesday night at its 7pm meeting at Community Center, 528 Main St., transferring $ 900,000 of its approximately $ 2.2 million surplus to help offset a loss of $ 1.3 million and “keep strong reserves” in the city car – health insurance fund.
“A major concern continues to be the balance of the fund in the city’s self-insured health insurance fund,” said Jennifer Rodenbeck, director of financial and corporate operations, in an Aug. 23 note to the board on the fund set up by the employer that takes a financial risk to provide health benefits to its employees.
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The city’s financial staff are closing the general ledger for the fiscal year ended June 30, 2022, and are hoping to “maintain a viable health insurance program,” according to the resolution.
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The $ 2.2 million surplus was in line with the $ 2.3 million surplus from the previous fiscal year.
“We were lucky in fiscal 2022 to have some revenue that exceeded budgeted amounts. This included hotel / motel taxes, the COVID grant, and receiving the filler funds,” Rodenbeck said. “Furthermore, we had areas where the expenses were lower than the budgeted amounts. Significant areas included recreation, engineering, parks and public safety. “
The $ 900,000 transferred to the health insurance fund leaves about $ 1.3 million in surplus, $ 328,333 from a grant from the Iowa Fitness Center Relief Program of federal COVID relief funds.
The resolution would authorize the transfer of those funds to the recreation fund to help pay for projects at the aquatic center or others involving recreational activities, according to Rodenbeck’s note.
Another $ 595,874 is the city’s annual coverage payment.
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These payments compensate for the revenue lost by cities, counties and schools when the state cut taxes on commercial and industrial property in 2013.
That money has been phased out and the board has previously requested that it be set aside for one-time capital projects.
Similarly, Rodenbeck’s memo states that the remaining approximately $ 300,000 of the surplus will be transferred to the Capital Projects Fund to “help offset any project that is seeing cost increases due to inflation, or to use. for a project identified as the use of General Fund Savings (GFS) on the CIP ”.
“This residual amount will be used for a project that will be specifically designated by the City Council through the process of defining objectives and capital improvements,” reads the resolution.
This process begins at the end of the year.
Additionally, at its meeting on Tuesday at 7pm, the board will consider several other resolutions:
- Acceptance of a surface transportation grant of up to $ 2.9 million for the reconstruction of Main Street.
- Execution of $ 1,000 leases, each for up to three years for the use of eight-foot-by-four-foot murals, which will be installed on the bridge underpass at the intersection of Main and East First streets.
- Allowing for the demolition of the existing home at 1224 W. 20th St. and the construction of a new duplex in its place.
- Acceptance of an offer of $ 49,143 from Iowa Flatworks Inc. for the city’s annual sidewalk evaluation program.
The meeting starts at 5.15pm at the Community Center.
The Community Development Committee will learn more about applying for an Iowa Destination Grant to help fund projects in and around the Cedar River in Cedar Falls and Waterloo.
The public safety committee will hear Fire Chief John Bostwick about the August 18 response to a fire at a facility on Orchard Hill Drive.
PHOTO: Cedar Falls in Waterloo West football