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Committee adopts fund-balance policy change to move healthcare campus excess to capital plan
Summary
The administration committee approved a policy to calculate healthcare campus excess fund balance annually and transfer amounts above a 10% retained threshold to the county capital-improvement plan (KIP), aiming to reduce future borrowing needs and better align transfers to actual operations.
Ken described a proposed revision to how St. Croix County treats fund balance for the healthcare campus. Under the new policy, instead of pre‑budgeting an arbitrary transfer to debt service, the county will calculate actual year‑end unassigned fund balance for the campus, allow the campus to retain the first 10% of operating costs and reassign any excess to the capital‑improvement plan (KIP).
Ken said the approach is intended to tie transfers to real operating results so the healthcare campus can retain a modest operating cushion while any surplus is used to reduce future capital borrowing. The policy also changes the destination of excess funds from the debt‑service fund to the KIP to reduce future debt issuance and interest costs.
Committee members discussed how depreciation and one‑time capital expenditures would be treated and whether 10% is the appropriate retention target. Ken said the 10% figure is a policy choice that can be revisited annually; staff will present actual historical results in August when the assigned‑balance resolutions are prepared. The committee approved the policy change and staff said they will apply it to current fund balances and present the August reassignment.
