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5.8. SR 12-17-2001City ~ RAver MEMORANDUM TO: FROM: Mayor and City Council Lori Johnson, Finance Director DATE: December 17, 2001 SUBJECT: Consider 2001 Budget Amendments Item 5.8. Attached for your review and consideration are the proposed 2001 budget amendments. Budget amendments are made each year to recognize significant deviations from the original budget, to incorporate additional expenditures approved by the Council during the year, and to allocate the cost of living and benefit adjustments from the contingency fund to the various departments. These budget amendments are not intended to reflect the actual year-end revenues and expenditures nor are they an attempt to estimate the year-end fund balance. Unfortunately, it is impossible to accurately estimate the year-end fund balance at this time, mainly because some of the city's revenues, such as gravel tax, are based on factors out of the city's control, and we have no information on which to base an estimate. Based on year to date activity, General Fund revenues will exceed expenditures in 2001. Building permit and planning related revenues have far exceeded budgeted levels while expenditures, with the exception of additional items approved by the Council, generally appear to be in line with the original budget. The Council approved several large expenditures in 2001 including the first payment for the small theater, completion of the GIS project, and a roadside mower. These three budget additions alone total $222,600. Even with these added expenditures, there will be some growth in the fund balance. A brief explanation of most of the budget amendments is included on the attached detail. There are no new expenditures proposed - the Council has discussed most of the expenditure amendments at some point during the year. Several of the amendments, like the transfer for the purchase of the optical scanning system, were discussed and approved during the 2002 budget discussions. Again this year, the transfer from the General Fund to the Ice Arena Fund to fund the operating deficit will be based on the actual operating deficit for 2001. Action Requested The Council as asked to consider the 2001 budget amendments as proposed. 2001 BUDGET AMENDMENT DETAIL Intergovernmental Revenue Charges for Services Licenses & Permits Fines Transfers In TOTAL REVENUE AMENDMENTS REVENUES Line Item County Grant Plan Check Fees Park Use Fees Sewer Inspection Fees Building Permits Plumbing & Heating Permits Other Non-bus. License & Prmts Court Fines Street Reserve Descriotion Wetlands & Election Right of Way Permits Dept. Detail Total 10,600 $10,600 115,000 3,000 10,000 128,000 205,000 175,000 19,000 399,000 (10,000) (45,000) (45,000) $492,600 Degartment Government Buildings Legal Building & Zoning Police Fire Streets Engineering Park Maintenance EXPENDITURES Line Item Utilities Capital Outlay Legal Services * Personal Services * Personal Services ~ Office Supplies ~ Personal Services * Capital Outlay ~ Engineering Fees Engineering Fees Personal Service Description Equipment Bldg Permit Tech to FT Patrol Union Insurance City Prosecutor FF & E Part time Facilities Inspector Roadside Mower GIS Other Budget Omission for shared Arena Employee Dept. Detail Total 10,000 (15,000) (5,000) (20,000) (20,000) 10,750 10,750 14,000 5,000 19,000 2,000 2,000 50,000 50,000 60,000 40,000 100,000 12,150 12,150 Contingency Transfers Out Subtotal * FEMA Grant * School Theater Government Buildings Reserve * Capital Outlay Reserve Ice Arena Operating City Share FEMA Fire Grant Bldg. Imprvmts not used Admin. Project Fees reserved for Optical Scan System Fund Operating Deficit (to be determined) 10,000 112,600 122,600 15,000 50,000 65,000 381,500 12/14/01 ;Bgtamend Page 1 Detail Total Source Line Item Description Contengency Budget Reallocation Various Departments Contingency * Personal Services * Personal Services 2001 COLA Flexible Benefits Plan 71,900 39,000 {1 I O,9OO) TOTAL EXPENDITURE AMENDMENTS {Excluding Ice Arena Transfer) * Prevously Approved by City Council $381,500 COUNCIL CONTINGENCY ACTIVITY SUMMARY Council Approved Expenditure.~ Rivers of Hope Three Rivers Community Theater Indoor Air Quality Testing Ehlers & Associates Noise Dosimeter Lake Orono Improvement Assn. The Canada Goose Project Subtotal Contribution Mural City Hall Key Financial Strategies Plan Police Stock Lake with Sunfish Goose Removal Adopted Budget Council Approved Allocations to other Departmentc Personal Services-Various Depts. Personal Services-Various Depts. Personal Services Police Dept. Personal Services Building Dept. FEMA Grant Streets 2001 COLA Flexible Benefits Plan Patrol Union Insurance Settlement Bldg Permit Tech to Full Time City share Fire Prevention Grant Roadside Mower Total Allocations $130,000 3,000 5,000 1,800 13,500 2,470 1,000 2,195 101,035 71,900 39,000 14,000 9,000 10,000 50,000 193,900 12/14/01 ;Bgtamend Page 2