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4.10. SR 12-21-2015 Request for Action To Mayor and City Council Item Number 4.10 Agenda Section Consent Meeting Date December 21, 2015 Prepared by Tim Simon, Finance Director Item Description 2015 Budget Amendments Reviewed by Cal Portner, City Administrator Reviewed by Action Requested Approve, by motion, the budget amendments as stated in the proposed 2015 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. 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 directors 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. 2016 budget items moved to 2015 as approved with the final budget on December 7, 2015. 2. Paver replaced downtown approved on January 5, 2015. 3. Significant repair to front-end loader in the Streets budget. N:\Public Bodies\Agenda Packets\12-21-2015\LASERFICHE\x4.10 sr 2015 budget amendments.docx Revenue amendments are proposed for the following items. 1. With the final court decision on Tax Increment Financing (TIF) district 19 ruling in the EDA’s favor we sent the remaining balance back to the county for redistribution to the city, county & school district. 2. Court fine revenue slightly higher than anticipated. Library Fund: Building repair and maintenance services line item is adjusted to reflect capital improvement plan (CIP) items for some parking lot repairs and sidewalk replacement. This was anticipated to be funded out of library reserves. Garbage Fund: To reclassify big belly trash container from Garbage Fund to the Landfill Fund which is the previous funding source used for big belly trash containers in prior years. Storm Water Fund: To reclassify the 2015 storm water modifications with the street project to transfer out to the pavement management and not the contractual services line item. Wastewater Fund: Budget is adjusted to reflect the timing of the state grant reimbursement which is 13.9% of construction expenditures incurred. Reclassifying the transfer-in and state grant to the construction accounts within the wastewater budget. Financial Impact General Fund remains balanced for 2015. Any positive or negative General Fund balance will be considered after the year-end prior to the audit and the budget is adjusted accordingly. Attachments  2015 Budget Amendment Summary  2016 final adjustment budget summary Proposed Final Revenues Adopted Amendment Amended Taxes (including gravel tax) 9,545,750 115,000 9,660,750 Licenses & Permits 599,400 599,400 Intergovernmental Revenue 286,550 286,550 Charges for Service 831,200 831,200 Fines & Forfeits 125,000 5,400 130,400 Other Revenues 217,000 217,000 Transfers 1,707,900 1,707,900 Total 13,312,800 120,400 13,433,200 Expenditures Proposed Final Department Adopted Amendment Amended MAYOR & COUNCIL 141,050 141,050 CABLE TV 108,400 108,400 ADMINISTRATION 600,000 2,400 602,400 HUMAN RESOURCES 161,750 161,750 ELECTIONS 13,350 13,350 FINANCE 567,450 567,450 INFORMATION TECHNOLOGY 332,150 332,150 LEGAL 217,600 217,600 COMMUNITY DEVELOPMENT 339,600 339,600 PLANNING 195,550 195,550 MAINTENANCE 569,200 569,200 CONTINGENCY* (95,000) (95,000) POLICE 4,803,200 6,500 4,809,700 FIRE 795,950 28,000 823,950 EMERGENCY MANAGEMENT 21,400 (4,500) 16,900 BUILDING SAFETY 628,950 628,950 CODE ENFORCEMENT 89,300 89,300 ENVIRONMENTAL 30,150 2,500 32,650 STREETS 1,187,300 37,100 1,224,400 SNOW REMOVAL 297,550 25,550 323,100 EQUIPMENT SERVICES 196,550 196,550 ENGINEERING 219,550 219,550 PARK MAINTENANCE 967,150 14,350 981,500 RECREATION 698,950 7,500 706,450 SR. CITIZEN PROGRAMS 215,600 215,600 ENERGY CITY 10,100 1,000 11,100 TRANSFERS - - TOTAL 13,312,800 120,400 13,433,200 Surplus (Deficit) - - - * = Employee turnover rate (1%) Proposed 2015 Budget Amendments December 21, 2015 City of Elk River Dept. Detail Total Source Line Item Description Taxes Current Ad Valorem Taxes Excess TIF from TIF 19 115,000 115,000 7 Fine & Forfeits Court Fines Increased court fines revenue line item 5,400 5,400 2 TOTAL GENERAL FUND REVENUE AMENDMENTS 120,400$ Dept. Department Line Item Description Detail Total Snow Removal Operating Supplies 350 tons road salt inventory-2016 25,550 25,550 3 Administration Operating Supplies Computer replacements - 2016 2,400 2,400 3 Energy City Operating Supplies promotion/marketing items - 2016 1,000 1,000 3 Fire Operating Supplies bailout rope/station kiosks/props - 2016 20,000 3 Office Supplies Station kiosks - 2016 3,500 3 Travel, Conferences & Schools Reallocate to uniform line item (2,000) 1 Uniform Allwance Reallocate from Travel, Conferences,line item 2,000 1 Office Supplies Reallocate from Emergency mgmt. - computer repl. 4,500 28,000 1 Emergency Management Travel, Conferences & Schools Reallocate to Fire Operations Supplies (4,500) (4,500) 1 Streets Contractual Services Downtown paver replacement - CC approved 25,350 10 Equip Repair/Maint. Services Loader hydralic repair 11,750 37,100 11 Park Maintenance Operating Supplies Fertilizer Inventory/lighting warr. - 2016 14,350 14,350 3 Recreation Operating supplies Mobile App 3.1 upgrade - 2016 7,500 7,500 3 Police Operating supplies computer replacements - 2016 6,500 6,500 3 Environmental Operating Supplies Wetland/shoreland signage - 2016 2,500 2,500 3 TOTAL GENERAL FUND EXPENDITURE AMENDMENTS 120,400$ Department Line Item Description Detail Total GARBAGE Operating Supplies Big Belly trash compactor to Landfill Fund (4,000) 8 LANDFILL Operating Supplies Big Belly trash compactor to Landfill Fund 4,000 - 8 TOTAL GARBAGE/LANDFILL EXPENDITURE AMENDMENTS -$ Department Line Item Description Detail Total Library Bldg. Repair/Maint. Services CIP items parking lot repairs/grounds/curbing 21,000 21,000 6 TOTAL LIBRARY EXPENDITURE AMENDMENTS 21,000$ Department Line Item Description Detail Total Storm Water Improvement Project Contract Move to transfer out for 2015 street project (150,000) 9 Transfers Transfer to street project for storm water work 150,000 9 TOTAL STORM REVENUE AMENDMENTS -$ Department Line Item Description Detail Total WWTP Transfer In - WWTP Reclassify transfer in to appropriate line item (1,000,000) 4 Transfer In- WWTP expansion Reclassify transfer in to appropriate line item 1,000,000 4 State Grant-WWTP expansion Reclassify state grant to WWTP expansion line item 2,800,000 4 State Grants Reclassify state grant to WWTP expansion line item (2,800,000) 4 WWTP Plant-capital outlay Reclassify to WWTP expansion capital outlay account (10,500,000) 4 WWTP Expansion-capital outlay Reclassify to WWTP expansion capital outlay account 10,500,000 4 State Grants - WWTP expansion Move remaining balance to 2016 (1,000,000)(1,000,000)5 TOTAL WWTP REVENUE AMENDMENTS (1,000,000)$ Tickmark explanations 1= Department requested administrative adjustments no increase to budget. 2=Increase revenue regarding court fines. 3= 2016 budget items moved to 2015 and approved on December 7, 2015 with 2016 budget. 4= Reclaissification to appropriate WWTp construction account no budget impact. 5= WWTP expansion state grant is 13.9% of costs incurred, updated to reflect actual costs and remaining in 2016 to be received. 6= Library CIP items that were planned to be funded out of reserves for repairs to parking lot/concrete repairs. 7=Excess TIF from decertified Tax increment financing district 19 returned to County for redistribution. 8= Reclassify Big Belly trash can from Garbage fund to appropriate budget in Landfill fund. 9= Reallocation for storm water contribution to 2015 street propject in pavement management fund. 10= Council approved downtown paver replacement in January 2015 due to condition of existing pavers downtown. 11= Major equipment repair that had to be outsourced. Hydralic issue on the loader. CITY OF ELK RIVER 2015 BUDGET AMENDMENT DETAIL REVENUES EXPENDITURES Revenues Expenditures Difference 2016 Preliminary Budget 13,798,400$ 13,798,400$ -$ Adjustments (Discussion Items)Account Code Revenues Expenditures Notes Fuel Various - (40,000) move to $2.50 per gallon Patrol 101-4-2120-4108 - (7,050) New employee insurance Park maintenance 101-4-5110-4108 - 2,800 New employee insurance Fire-Admin 101-4-2310-4108 - (3,250) New employee insurance Equipment Services 101-4-3150-4108 - (3,250) New employee insurance Snow removal 101-4-3130-4219 - (25,550) 350 tons road salt inventory Police-Admin 101-4-2120-4219 - (6,500) tablet replacements Administrative services 101-4-1210-4201 - (2,400) computer replacements Fire-operations 101-4-2320-4201 - (3,500) Station kiosks Fire-operations 101-4-2320-4219 - (15,000) bailout rope hardware Fire-operations 101-4-2320-4219 - (5,000) Station training props Park maintenance 101-4-5110-4219 - (12,000) Fertilizer inventory Park maintenance 101-4-5110-4219 - (2,350) Lighting warranty Recreation-Admin 101-4-5210-4219 - (7,500) Mobile App. 3.1 updgrade Environmental 101-4-2440-4219 - (2,500) wetland/shoreland/signage Energy City 101-4-6220-4219 - (1,000) promotion/marketing items Tax levy adjustment (134,050) - Adjustment to max. 2016 Proposed 13,664,350$ 13,664,350$ -$ 2015 Adopted 13,312,800$ 13,312,800$ -$ % change 2.64%2.64% Notes All changes reviewed on November 2, 2015 budget worksession. Move to 2015