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8.3. SR 12-19-2011REQUEST FOR ACTION To Item Number Ma or and Ci Council 8.3 Agenda Section Meeting Date Prepared by Administration December 19, 2011 Tim Simon, Finance Director Item Description Reviewed by Approve 2011 Budget Amendments Cal Portner, Ci Administrator Reviewed by Action Requested Approve the budget amendments as stated in the proposed 2011 budget amendments attachment. Background/Discussion Budget amendments are presented to the City Council each December in accordance with the city's Financial Management Plan. Sections 6.3 and 6.3.1 of the Financial Management Plan regarding budget amendments axe reprinted below for your reference. 6.3 The budget shall be adjusted as needed to recognize significant deviations from original budget expectations. The Council shall consider budget amendments each December. Budget amendments are intended to recognize changes made by the Council during the year, to reflect major revenue and expenditure deviations from budgeted amounts, and to consider year-end budget requests. Budget amendments are not intended to create a budget that matches budgeted revenues and expenditures to actual revenues and expenditures. 6.3.1 Administrative budget amendments may be made throughout the year by Department Heads to adjust line item budgets within their department as long as the total departmental budget does not change. These line item budget changes exclude personal service and capital outlay categories. Administrative budget amendments must be requested in writing and approved by the City Administrator and Finance Director. During the course of the year, the City Council approves items which are not included in the adopted budget. Some of the expenditures are authorized to be taken out of the Council Contingency budget. Also, during the course of the year, a grant may be received or another revenue source identified in which case both the revenues and expenditures are approved. Department heads make administrative adjustments as allowed by the Financial Management Plan. All of these items are incorporated into the year-end budget amendments presented to the Council for approval. There are no significant changes to the 2011 expenditure budget. At this point, most departmental budgets axe at budget targets. The administration budget will be adjusted for the net amount of the severance payout and staff transition savings. Revenue amendments are proposed for the following items. tANtRE~ 8~ ~U 1. Increase in building permits revenue in the amount of $50,000 is due to a few additional commercial projects (Pizza ranch, Ashley Furniture, and Guardian Angels). 2. Increase in plumbing/heating permits revenue in the amount of $105,000 relates to the school district doing a number of renovation projects in Elk River and United Health. Pinewood and Ice Arena operating transfer will be adjusted based on the actual required amounts, which will be determined at year-end. Financial Impact General Fund net amendments are proposed in the amount of $65,000. Other offsets will be Council Contingency and some departments ending the year below budgeted amounts. Attachments • 2011 Budget Amendment Summary Action Motion by Second by Vote Follow Up -Aw~s~~ sr ~~ City of Elk River Proposed 2011 Budget Amendments December 19, 2011 Proposed Final Revenues Adopted Amendment Amended Taxes 9,612,400 9,612,400 Licenses & Permits 252,700 155,000 ,407,700 Intergovernmental Revenue 528,050 528,050 Charges for Service 643,100 643,100 Fines & Forfeits 130,000 130,000 Other Revenues 212,700 212,700 Transfers 784,500 784,500 Total 12,163,450 155,000 12,318,450 Expenditures Proposed Final Department Adopted Amendment Amended MAYOR & COUNCIL 177,800 177,800 CABLE TV 77,800 77,800 ADMINISTRATION 473,650 90,000 563,650 HUMAN RESOURCES 150,750 150,750 ELECTIONS - FINANCE 454,700 454,700 INFORMATION TECHNOLOGY 266,600 266,600 LEGAL 240,000 240,000 COMMUNITY DEVELOPMENT 67,100 67,100 PLANNING 303,550 303,550 CITY HALL 300,850 300,850 CONTINGENCY 75,000 75,000 POLICE 4,288,650 4,288,650 FIRE 774,450 774,450 EMERGENCY MANAGEMENT 107,400 107,400 BUILDING SAFETY 465,200 465,200 ENVIRONMENTAL 56,950 56,950 STREETS 1,524,450 1,524,450 SNOW REMOVAL 262,850 262,850 EQUIPMENT SERVICES 245,950 245,950 ENGINEERING 177,800 177,800 PARK MAINTENANCE 790,350 790,350 RECREATION 756,900 756,900 SR. CITIZEN PROGRAMS 204,450 204,450 ENERGY CITY 51,650 51,650 TRANSFERS 205,200 - 205,200 TOTAL 12,500,050 90,000 12,590,050 Surplus (Deficit) (336,600) 65,000 (271,600) CITY OF ELK RIVER 2011 BUDGET AMENDMENT DETAIL DECEMBER 19, 2011 REVENUES Dept. Detail Total Source Line Item Description Licenses & Permits Building Permits Increase in building permit activity 50,000 2 Plumbing/Heating Permits Increase in building permit activity 105,000 2 155, 000 TOTAL GENERAL FUND REVENUE AMENDMENTS $ 155,000 EXPENDITURES Dept. Department Line Item Description Detail Total Administration Regular Pay Personnel adjustments 90,000 90,000 3 Fire Equipment Repair/Maintenance Overall increased repaircosts/ hydraulic repair: 11,000 1 Travel, Conferences & Schools Amend to equipment repair/maintenance (10,000) 1 Telephone Amend to equipment repair/maintenance (1,000) - 1 Emergency Management Operating Supplies Update ID Citywide ID Card system 3,500 1 Telephone Amend to operating supplies (1,000) 1 Travel, Conferences & Schools Amend to operating supplies (1,500) 1 Equip Reapir/Maint Services Amend to operating supplies (1,000) - 1 Streets Operating Supplies Amend to Contractual Services (15,000) 1 Contractual Services Amend from Operating Supplies 15,000 - 1 Engineering Office Supplies Amend to Equipment Repair/Maint. (750) 1 Operating Supplies Amend to Other Professional Services (4,800) 1 Other Professional Services Pavement Mgmt Software/Database upgrades 7,800 1 Travel, Conferences & Schools Amend to Other Professional Services (3,000) 1 Travel, Conferences & Schools Amend to Equipment Repair/Maint. (1,000) 1 Equip Repair/Maint Services Copier lease 1,750 - 1 Park Maintenance Operating Supplies Amend from various accounts 8,650 1 Equipment Parts Amend from various accounts 9,100 1 Telephone Amend to Operating Supplies (1,400) 1 Travel, Conferences & Schools Amend to Equipment Parts (1,100) 1 Utilities Amend to Operating Supplies (4,250) 1 Building Repair/Maint Services Amend from Equipment Rental 400 1 Contractual Services Amend from Equipment Rental 2,000 1 Equipment Rental Amend to various accounts (13,400) - 1 TOTAL GENERAL FUND EXPENDITURE AMENDMENTS $ 90,000 Department Line Item ARENA Operating Supplies Travel, Conferences & Schools Publishing Building Repair/Maint Services Contractual Services Hockey Operating Supplies Contractual Services Concessions Operating Supplies Other Merchandise for Resale Description Detail Total TOTAL ARENA EXPENDITURE AMENDMENTS Amend from Hockey Operating Supplies Amend from Building Repair/Maint Services Amend from Hockey Contractual Services Amend to various accounts Amend from Building Repair/Maint Services Amend to Arena Operating Supplies Amend to Arena Publishing Amend to Other Merchandise for Resale Amend from Operating Supplies Tickmark explanations 1= Department requested administrative adjustments no increase to budget. 2=Increase revenue due to commercial project rennovations/expansions in 2011. 3=Amendment net of severance and staff transition savings. 3, 500 1 100 1 1,750 1 (850) 1 750 1 (3,500) 1 (1,750) 1 (1,500} 1 1,500 - 1 $ - 12/15!2011;2011 Amendments