5.3. SR 11-08-2010Item # 5.3.
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MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, City Administrator
DATE: November 8, 2010
SUBJECT: Budget
On December 6 public input will be taken on the budget and tax levy following a
presentation to the public. The Council reviewed the budget last in September prior to
approving the preliminary tax levy. The budget was not balanced at that time as several
items needed further discussion. In order to prepare for the December 6 meeting, the
outstanding items should be resolved to present a balanced budget. Also, two of the
enterprise budgets will be presented at this meeting as outlined in Finance Director Tim
Simon's attached memo.
As you may recall, there were several decisions made by the Council that have a major
impact on the budget such as not including Local Government Aid (LGA) in the budget
because of the uncertainty of actually getting the aid from the State. Additionally, the
proposed budget includes the use of $325,000 of fund balance. That amount could be
increased slightly to balance the budget with the understanding that the fund balance is in
place to meet cash flow needs until tax revenue is received in late June.
Attached is a summary of the budget as it currently stands along with several proposed
changes. Including the proposed staff adjustments, the budget deficit increased from
$196,400 to $205,000. Detail on the adjustments is included in the attachment. As we have
discussed previously, one way to eliminate the deficit is to delay as many of the capital outlay
purchases as possible until LGA is received. The $686,800 of LGA will eliminate the deficit
in full if it is all received.
The second attachment is a list of capital outlay currently included in the General Fund. Of
the $322,650 requested, $188,900 could be delayed until LGA is received. This leaves a
shortfall of $16,100. This could be funded through additional use of available fund balance.
In conclusion, I am requesting direction from the Council on whether you agree with the
concept of delaying capital outlay and using fund balance as stated above to present a
balanced budget on December 6. Additionally, there are two minor items, council
N:\Public Bodies\City Council\Loxi\2010\Budget Memo 11 8 10 2'.docx
computers and volunteer recognition, that the Council wanted to contemplate following the
September meeting. A decision on those items is requested to finalize the budget.
N:\Public Bodies\City Council\Loxi\2010\Budget Memo 11 8 10 2'.docx
2011 General Fund Budget Summary
November 5, 2010
Revenues
Draft Budget
Adjustments:
State Grants -Police
Tax levy transfer from Library
Engineering Charges fox Service
Fire Calls
Subtotal Adjustments
Revised Revenue Budget
Expenditures
Draft Budget
Adjustments:
Fuel cost reduction
Overtime for snow removal
Delay eng. Tech until April 1
Engineering dept adjustments
Fire Relief required contribution
Street plow transferred to Fleet
Pinewood transfer
Duty officer program
Purchase Ice Arena vessels in 2010
Engineering reclassification of personal service
Fire equipment -thermal imaging camera
Senior Center copier lease
Subtotal Adjustments
Revised Expenditure Budget
Budget Balance
Use of Fund Balance
Budget Balance
Other Items
Capital Outlay included in budget
LGA not included in budget
Duty officer program
Purchase Ice Arena vessels in 2010
Council Computers
Volunteer recognition
$ 22,000
2,600
(20,450)
17,200
(2,950)
1,200
8,500
(8,850)
(7,350)
Council
As Presented Approved Staff
September 7 Adjustments Adjustments** Comments
$ 11,838,700
99,100 Offset by expenditure
4,000 Omitted in error
24,600 103,100
12,390,400
23,500
(16,500)
99,100 Offset by revenue
11,100 Unexpected equip failure
1,500 Unexpected equip failure
(12,700) (5,700) 111,700
12,377,700 12,384,700 12,496,400
(514,400) (521,400) (530,000)
325,000 325,000 325,000
(189,400) (196,400) (205,000)
320,400 311,550 322,650
686,800 686,800 686,800
23,500 approved
-16,500 approved
-7,500
3,000
* Council adjustment approved on or before September 13, 2010.
** Staff adjustments proposed for November 8, 2010, discussion.
2011 General Fund Capital Outlay
Requested Department Delay until
Department Item Amount Total Receipt of LGA
Human Resources TOP Software/implementation $ 4,450 $ 4,450
Incode Kronos interface/maintenance 2,750 2,750
KRONOS software 75,000 75,000
Incode Personnel Management Systems 15,000 15,000
97,200
Fire Confined Space Rescue Equipment 20,000
Thermal Imaging Camera 11,100
31,100
Emergency Mgmt Siren 16,000
Outdoor Warning Siren Radio Board Upgrade 55,750
71,750
IT In Squad video upgrade 20,000
Laserfiche Upgrade 13,000 13,000
Virtualization payment 10,900
SQL Server upgrade 26,000 26,000
69,900
Streets/Snow removal Bobcat lease 4,000 4,000
4,000
Senior Center Database management system 8,700 8,700
Replace carpeting 40,000 40,000
48,700
Total General Fund $ 322,650 $ 322,650 188,900
Budget Deficit 205,000
Difference $ 16,100
Updated November 5, 2010