Sponsor: Social Services
Title
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2025 Budget Adjustment for the Lake Owasso Residence
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Recommendation
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Authorize the County Manager to transfer up to $2 million of General Fund fund balance to the 2025 Lake Owasso Residence Enterprise Fund.
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Background and Rationale
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In 2025, Lake Owasso Residence (LOR) is projected to exceed the available budget by $2 million, approximately 15% of total expenditures, primarily due to increased overtime costs.
In 2025 the average number of vacancies at LOR was 20 Full Time Equivalent (FTE), representing 19% of total authorized FTEs for the facility. LOR is a 24-hour facility which is home for up to 64 adults with developmental and intellectual disabilities. There are staffing ratios, required by the state and federal government, which need to be met to provide care to the residents. Due to vacancies and the need to meet the staffing ratios, overtime was used throughout the year. The cost of overtime for 2025 is projected to be $2 million, which is over budget by $1.4 million. The remaining shortfall is in supplies, groceries, furniture and other non-personnel costs for the homes and a slight shortfall in revenue due to a reduced census of 60 residents.
The leadership team at LOR is working on a plan to address the long-term staffing needs and reduce overtime use in 2026. Currently there are 12.00 vacant FTEs, which is an improvement over 2025.
The requested transfer of up to $2 million from unrestricted General Fund fund balance will ensure adequate funding exists for all outstanding expenses to close the 2025 budget year.
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
According to the Minnesota Department of Human Services women, people of color and immigrants are disproportionally represented in the direct care workforce compared to overall populations. LOR is no exception to this statistic. There is also a shortage of direct care staff in Minnesota which affects the number of vacant FTEs.
Community Participation Level and Impact
There is no community participation associated with this action.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
This transfer will reduce the county’s unrestricted General Fund fund balance for 2025. The county will still be in compliance with the requirements for the fund balance amount. This is a one-time transfer of funds in 2025 and does not increase the budget in future years.
Last Previous Action
On February 1, 2022, Ramsey County Board of Commissioners approved Ramsey County Care Center and Lake Owasso Residence General Fund Balance Transfer to Close 2021 Enterprise Funds (Resolution B2022-041).
Attachments
None.