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8.2. SR 12-15-2014 City of Elk - Request for Action River O. To Item Number Mayor and City Council 8.2 Agenda Section Meeting Date Prepared by General Business December 15, 2014 Tim Simon, Finance Director Item Description Reviewed by 2014 Budget Amendments Cal Portner, City Administrator Reviewed by Action Requested Approve,by motion,the budget amendments as stated in the proposed 2014 budget amendments attachment. Background/Discussion Annually budget amendments are presented to the City Council each December in accordance with the City's Financial Management Plan. The operating budget section of the Financial Management Plan regarding budget amendments are reprinted below for your reference. • 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 revenue and expenditures. • Administrative budget amendments may be made throughout the year by department directors 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 admendments 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. Expenditure amendments are proposed for the following items. 1. Due to above average snow fall season, additional salt/sand is needed,allocation out of contingency. 2. Fireworks costs offset by$2,500 original budget plus contributions. 3. Final year of IT virtualization payback to Capital Outlay Reserve Fund. P a w E A E U s r NaA f RE] 4. All engineering staff salaries and benefits are in the General Fund with a chargeback to the project funds for project specific work. Revenue offset is included and this will match the 2015 budget and streamline timekeeping and tracking. Revenue amendments are proposed for the following items. 1. Charges for services are updated to reflect engineering services reimbursement and other miscellaneous adjustments. 2. Fireworks contributions. 3. Building permit revenue is reallocated to the new construction permits received versus remodel projects which would be more plumbing/heating versus plan check fees and building permits. Ice Arena: Capital outlay is adjusted to reflect improvement projects that will be completed after the facility plan is done. Library: Building repair and maintenance services line item is adjusted to reflect council approval on 08/04/2014 for the landscape project on the Library grounds. Wastewater Budget is adjusted to reflect bond proceeds and the timing of the State Grant reimbursement and the Transfer in which have both been moved to the 2015 budget due to timing of project expenditures. Pinewood operating transfer will be adjusted based on the actual required amounts,which will be determined at year-end. Financial Impact General Fund remains balanced for 2014. Attachments ■ 2014 Budget Amendment Summary N:\Public Bodies\Agenda Packets\12-15-2014\Final\x8.2 sr 2014 budget amendments.docx City of Elk River Proposed 2014 Budget Amendments December 15, 2014 Proposed Final Revenues Adopted Amendment Amended Taxes (including gravel tax) 9,306,300 9,306,300 Licenses & Permits 575,900 - 575,900 Intergovernmental Revenue 277,900 277,900 Charges for Service 732,800 40,900 773,700 Fines & Forfeits 122,200 122,200 Other Revenues 207,000 12,500 219,500 Transfers 1,648,400 1,648,400 Total 12,870,500 53,400 12,923,900 Expenditures Proposed Final Department Adopted Amendment Amended MAYOR & COUNCIL 150,550 12,500 163,050 CABLE TV 93,000 93,000 ADMINISTRATION 594,000 594,000 HUMAN RESOURCES 96,000 96,000 ELECTIONS 38,750 38,750 FINANCE 560,850 560,850 INFORMATION TECHNOLOGY 297,600 10,900 308,500 LEGAL 218,000 218,000 COMMUNITY DEVELOPMENT 325,500 325,500 PLANNING 192,500 192,500 MAINTENANCE 544,950 544,950 CONTINGENCY* (47,500) (30,000) (77,500) POLICE 4,475,200 4,475,200 FIRE 763,900 763,900 EMERGENCY MANAGEMENT 24,150 24,150 BUILDING SAFETY 617,950 617,950 CODE ENFORCEMENT 88,600 88,600 ENVIRONMENTAL 31,800 31,800 STREETS 1,239,750 1,239,750 SNOW REMOVAL 277,750 30,000 307,750 EQUIPMENT SERVICES 184,150 184,150 ENGINEERING 166,850 30,000 196,850 PARK MAINTENANCE 938,450 938,450 RECREATION 732,000 732,000 SR. CITIZEN PROGRAMS 193,550 193,550 ENERGY CITY 12,100 12,100 TRANSFERS 60,100 - 60,100 TOTAL 12,870,500 53,400 12,923,900 Surplus (Deficit) - - - * = Employee turnover rate (1%) and miscellaneous$47,500 (net$47,500) CITY OF ELK RIVER 2014 BUDGET AMENDMENT DETAIL REVENUES Dept. Detail Total Source Line Item Description Licenses&Permits Building Permits Increase in new building activity vs.remodel 70,000 2 Plan Check Fee Increase in new building activity vs.remodel 40,000 2 Plumbing/Heating Permits Increase in new building activity vs.remodel (110,000) - 2 Charges for Services Engineering Services Reimb. Additional staff time reimb.from project funds 30,000 3 Sr.Center Activities Additional revenues for activity programs 7,950 8 Maintenance Facility Rent Tri-cap rental agreement 8,100 8 Fire Inspections Otsego fire inspections (5,150) 40,900 8 Other Revenue Contributions 2014 Fireworks contributions 12,500 12,500 7 TOTAL GENERAL FUND REVENUE AMENDMENTS $ 53,400 EXPENDITURES Dept. Department Line Item Description Detail Total Snow Removal Operating Supplies Additional Sal/Sand for Snow season 30,000 30,000 4 Contingency Miscellaneous Additional Sal/Sand for Snow season (30,000) (30,000)4 Mayor and Council Miscellaneous 2014 Fireworks($15,000 net$2,500 budgeted) 12,500 12,500 7 Fire Operating Supplies Replace equipment and defibrillator 8,000 1 Contractual Services Firefighter physical costs 2,000 1 Travel,Conferences,Schools Additional reimb from state/academy classes (10,000) - 1 Emergency Management Operating Supplies Chair replacements in EOC 6,500 1 Travel,Conferences&Schools 2 training classes held with in-house staff (6,500) - 1 Streets Bldg.Repair/Maint.Services Reallocate for Fire extinguisher services 1,000 1 Contractual Services Reallocate for Fire extinguisher services (1,000) 1 Operating Supplies Allocate supplies to equipment parts line item (56,000) 1 Equipment Parts Allocate supplies to equipment parts line item 56,000 - 1 Planning Publishing File system failure/replacement (6,700) 1 Equipment Repair/Maint. File system failure/replacement 6,700 - 1 Park Maintenance Operating Supplies Reallocate to equipment parts (15,000) 1 Equipment Parts Reallocate from operating supplies 15,000 1 Utilities Additional usage(oak knoll fields) 5,800 1 Bldg.Repair/Maint services Reallocate to utilities (2,750) 1 Equipment rental Reallocate to utilities (3,050) - 1 IT Equipment Final virtualization repayment 10,900 10,900 8 Police Regular Pay Reclassify Salary for CSO position 37,950 1 Part-time pay Reclassify Salary for CSO position (37,950) - 1 Engineering Regular Pay Allocation of staff time(Reimb.above offset) 30,000 30,000 3 Equipment Services Operating Supplies Reclassify equipment parts (4,400) 1 Equipment Parts Reclassify equipment parts 4,400 - 1 TOTAL GENERAL FUND EXPENDITURE AMENDMENTS $ 53,400 Department Line Item Description Detail Total ARENA Buildings&Structures Roof project deterred until facility report complete. (145,550) 6 Improvement Projects Dehumidifier project(Barn Complete) (145,600) (291,150)6 TOTAL ARENA EXPENDITURE AMENDMENTS $ (291,150) Deoartment Line Ito Description Detail Total Library Bldg.Repair/Maint.Services 2014 landscape project approved on 08/04/14 28,635 28,635 9 TOTAL LIBRARY EXPENDITURE AMENDMENTS $ 28,635 Department Line Item Description Detail Total W WiP State Grants Grant Reimbursement moved to 2015 (3,000,000) 5 Transfers Transfer in from trunk utility moved to 2015 (1,000,000) 5 Bond Proceeds Updated to reflect all bond proceeds in 2014 4,483,750 483,750 5 TOTAL WWiP REVENUE AMENDMENTS $ 483,750 Tickmark explanations 1=Department requested administrative adjustments no increase to budget. 2-Increase revenue due to more new building projects versus remodel projects which are typically plumbing and heating permits. 3=Engineering salaries all included in General Fund and offset with reimbursement from project funds.This will match 2015 budget setup. 4=Additional Sal/Sand allocation for above average snow season. 5=W WTP expansion line items are adjusted to match 2 year project timeline and which years revenues will come in and expenditures incurred. 6=Major arena projects are deferred until facility plan is complete. 7=Fire works expenditure increase and offsetting contributions. 8-Other revenue adjustments 9-Library landscaping project approved by Council on 08/04/14 12/11/2014;2014 Amendments