6.3. SR 12-20-2004
Item 6.3.
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, Finance and Administrative Services Director
DATE: December 20, 2004
SUBJECT: Consider 2004 Budget Amendments
Budget amendments are presented to the Council each December in accordance with the city's
Financial Management Plan. This year, in addition to budget amendments, there are two bond fund
balances that need to be allocated, and the fund to be used for payment of the balance of the Public
Safety building project needs to be identified. There is also a request from the City Engineer for
several items. Each of these items requires Council action.
First, the budget amendment information will be presented to the Council on Monday. There are
no new items proposed for the General Fund; all of the amendments are items that the Council has
already approved either during the year or as part of the 2005 budget process. The budget
amendments will be presented in accordance with Sections 6.3 and 6.3.1 of the Financial
Management Plan regarding budget amendments which are 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.
Second, there are two bond funds in which the bonds have been retired and there is a cash balance
remaining. The Council may designate these funds for other uses as appropriate. The bond funds
and their current cash balances are as follows:
1996B G.O. Improvement Bonds
1999B G.O. Refunding Bonds
(Refunding of 1994A Bonds)
$ 47,909.15
$430,523.95
Both of these bonds were for assessable street, storm sewer, water, and sanitary sewer improvement
projects. In the past when a balance has remained after payment of bonds, the remaining cash has
been placed in a reserve fund. Either the Capital Projects fund or the Street Improvement fund
would be appropriate places to transfer the excess funds as both will be used to fund upcoming
improvement projects.
Third, the Public Safety building project has now been finalized. As you may recall, the Council did
not authorize the completion of the gun range until the project was well underway because of
project budget concerns. At the time the Council authorized award of the gnn range, the City
Administrator made a recommendation that the additional cost for the gun range should be funded
by the Liquor fund. However, that funding recommendation did not become part of the action
taken by the Council. Given the current status of the Government Buildings fund and the fact that
the Liquor fund is financing the construction of Westbound, it is more appropriate at this time to
fund the balance of the Public Safety project, approximately $166,850.00, with the Government
Buildings fund instead. This is less than the original estimate of approximately $200,000 of
additional funding needed for the gun range.
Fourth, attached is a memo from the City Engineer requesting the purchase of pavement
management software and stereo photographs. As the memo states, staff is recommending that the
purchase be funded equally by the Street Improvement Reserve and the Surface Water Management
funds.
Action Requested
The City Council is asked to consider the 2004 budget amendments, the designation of bond funds,
the use of the Govetnment Buildings Reserve fund for the balance of the Public Safety project, and
the purchase of pavement management software and stereo photographs with funding as stated
above.
MEMORANDUM
TO: Pat Klaers, City Administrator
FROM: Terry Maurer, City Engineer -fIfl
DATE: December 2, 2004
SUBJECT: Pavement Management Software
This memo is intended to be a summa!)' of the meeting held between you, Lori Johnson,
and myself yesterday concerning the pavement management software and stereo photos of
the city streets. As you are aware, HRG Tech Group has undertaken the stereo photography
of all of the city streets in late 2003. I have confirmed with Mike Daniel, President of HRG
Tech Group, that the city can purchase these photos (125 miles both directions for a total of
250 miles of photos), and the extraction software for $22,500, which is the cost that HRG
Tech Group has into having these photos taken. This information can be utilized
immediately for two pressing issues. One is creating a storm sewer map; the other is creating
a computerized pavement management program. The additional software that is needed for
creation of the pavement management program is the ICON program, which has a cost of
approximately $5,000, plus I would recommend joining the user group and tech support,
which is an additional $1,500 for the calendar year.
It is my understanding from our conversation that it may be possible to purchase the stereo
photos and software in 2004, utilizing Street Reserve and Surface Water Management Fees.
If so, I would strongly encourage the city to proceed. If you have any questions or need
further information, please let me know.
S:\PLANNING\Teny Maurer\12 02 04 PvmtMgmtmemo.doc
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Public Safety Final Project Summary
Bond Proceeds
Par amount of bonds
Plus accrued interest
Costs of issuance
Ehlers & Associates
Briggs & Morgan
Moody's Investors Service
USBank NA
Sherburne County Auditor
MBIA Insurance
Underwriter's discount
Subtotal
Deposit to Reserve Fund
Deposit to Bond Fund
Total Bond Proceeds
Other Revenues
OSHA Grant
Interest on Bond Proceeds
Total Project Revenues
Project Costs
Construction Contracts
Site Preparation & Fill
Architect - Tushie Montgomery
Construction Management - Kraus-Anderson
Testing - STS
Engineering - HR Green
Legal - Gray Plant Mooty
Legal - Cliff Lundberg
Telephone
Low Voltage Cable
Security
Radio
Furniture
Computer
AN Equipment
Appliances
Fence & Concrete
Builders Risk Insurance
Moving Contract
Building Permit
Other Building Costs
Publishing
Other Project Costs
Total Project Costs
Project Balance
*Not eligible as bond proceed costs
Invoices received AFTER finalizing project
Architect
UPDATED PROJECT BALANCE
12/13/2004
PS Final Project Summary
$8,000,000.00
15,043.52
(26,400.00)
(17,000.00)
(5,330.00)
(2,000.00)
(123.00)
(84,000.00)
(76,246.70)
7,803,943.82
(24,000.00)
(132,736.98)
102,885.17
7,647,206.84
10,000.00
42,455.15
7,699,661.99
6,089,303.15
12,868.60
595,316.62
454,687.14
12,428.00
9,514.64
781 .45
12,975.00
75,137.24
141,943.22
150,854.00
50,322.84
85,584.92
37,132.65 *
13,524.23
9,600.54
6,301.79
2,094.12
65,752.52 *
26,338.64
12,735.24
421.80
862.50
7,866,480.85
(166,818.86)
30.19
(166,849.05)
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