HomeMy WebLinkAboutResolution No. 014-26 - Resolution - DMCC Biennial Budget
RESOLUTION
A Resolution Approving Amendments to reflect Destination Medical Center
Corporation (DMCC) Biennial Budget.
WHEREAS, the Destination Medical Center Corporation (DMCC) has historically
operated under an annual budgeting framework, preparing, approving and
administering its budget on a fiscal-year basis; and
WHEREAS, the City Council of the City of Rochester must review and approve the
DMCC’s budget; and
WHEREAS, the City Council approved the 2026 Destination Medical Center
Corporation (DMCC) Operating Budget, the 2026-2030 DMCC Capital Budget, the
DMCC and the DMC Economic Development Agency Working Capital Loan
Extensions; and
WHEREAS, the City Council and DMCC have determined that transitioning DMCC
from an annual budget to a biennial budget is in its best interests to align with the
biennial budgeting process followed by the City of Rochester; and
WHEREAS, In order to effectuate the transition to a biennial budget, DMCC has caused
a review of its governing documents, and other agreements, including applicable loan
documents, relating to or referencing such annual budget to identify all provisions
referencing or relying upon an annual budget cycle; and
WHEREAS, Though this review, DMCC determined that the Amended and Restated
Articles of Incorporation, the Bylaws, the Agreement for Destination Medical Center
Services, the Agreement for DMCC Funding and Support, the Working Capital Loan
Agreement (DMCC – EDA), and the Working Capital Loan Agreement (DMCC-City)
(collectively, the “Budget Documents”) each contain references to, or requirements for,
an annual budget and therefore must be amended to reflect the adoption of a biennial
budgeting process; and
WHEREAS, To implement the biennial budget framework, DMCC has prepared,
reviewed, and desires to formally adopt, in substantially similar forms to what was
presented to and reviewed by the Board at the duly held meeting, the following amended
Budget Documents: (1) First Amendment to Amended and Restated Articles of
Incorporation of Destination Medical Center Corporation (“Articles Amendment”), (2) First
Amendment to Bylaws of Destination Medical Center Corporation (“Bylaws Amendment”);
(3) First Amendment to Agreement for Destination Medical Center Services (“DMC
Service Agreement Amendment”); (4) First Amendment to Agreement for DMCC Funding
and Support (“Funding Amendment”); (5) Second Amendment to the Working Capital
Loan Agreement (DMCC-EDA) (“EDA Loan Amendment”); and (6) Second Amendment
to the Working Capital Loan Agreement (DMCC-City) (“City Loan Amendment”)
(collectively, the “Budget Amendments”).
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of
Rochester that the Council hereby approves the transition of the Destination Medical
Center Corporation to a biennial budget; approves the related amendments to the
governing and funding agreements in substantially the forms presented; authorizes the
Mayor and City Clerk to execute the amendments subject to City Attorney approval; and
directs staff to implement the biennial budget framework consistent with City policy and
prior Council actions.
PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2026
___________________________________
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: __________________________
CITY CLERK
APPROVED THIS _____ DAY OF ______________________, 2026.
___________________________________
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)