4.8. SR SR 12-18-2000
.
City of ~
Elk
.
.
Item #4.8.
MEMORANDUM
TO:
Mayor & City Council
FROM:
Lori Johnson, Finance Director
DATE:
December 18, 2000
SUBJECT: 2000 Budget Amendments
Attached are the proposed 2000 Budget Amendments. Each year in December
the City Council approves amendments to the budget. Amendments are done
for several reasons: to incorporate changes the council has made throughout
the year, to allocate the contingency fund for cost of living adjustments or
other approved personnel additions, and to recognize significant revenue or
expenditure variations. Budget amendments are not intended to produce a
budget that reflects actual year end revenues or expenditures, nor is it an
attempt to estimate what the change in fund balance will be on December 31.
Unfortunately, much of the information needed to accurately estimate the
year end fund balance is not available at this time, partly because some of the
revenues come from outside sources, such as gravel tax which we have no
way of estimating. However, as in past years, based on year to date revenues
and expenditures, it is estimated that revenues will exceed expenditures due
mainly to growth related revenues. (Actual revenues will exceed the
amended budget while expenditures are expected to be close to the amended
budget.) This will allow for adequate growth in the fund balance to maintain
an appropriate percentage of fund balance to operating budget and still give
the council the opportunity to reserve funds for other uses.
The council has already spent approximately $44,500 of the contingency
budget on special projects or equipment requests made during the year. The
remaining balance will be used to fund previously approved cost of living
adjustments, an intern in the finance department, and the information
services employee contract with the City of Andover. This funding is
accomplished by simply reallocating the contingency funds to other
departments. A listing of contingency expenditures is included at the end of
the attachment for your review.
The majority of the other budget amendments are items already approved by
the City Council including the following:
13065 Orono Parkway. P.O. Box 490. Elk River, MN 55330. TDD & Phone (763) 441-7420. Fax (763) 441-7425
.
.
.
. $99,150 - Capital outlay approved for purchase during the 2001 budget
discussions; and,
. $32,000 - Park dedication fee for Elk River Business Park.
The remaining budget amendment is simply to reallocate the insurance
budgets since liability insurance is now being charged entirely to the Mayor
and Council department instead of making some somewhat arbitrary
allocations to each department.
You will notice under transfers out that an amount has not been included for
the ice arena operating transfer. Assuming there will be an ice arena
operating deficit, it will need to be funded, and in previous years, that
funding has come from the general fund. Although the actual 2000 deficit
will not be available until early February, the City Council may include its
intent to fund the deficit from the general fund in the budget amendments
and the final amount will be determined later.
Action Reauested
The City Council is asked to consider the 2000 Budget amendments as
attached.
2000 BUDGET AMENDMENT DETAIL
. REVENUES
Intergovernmental Revenue
Dept.
Detail Total
Police Aid $21,000 $21,000
Plan Check Fees 100,000 100,000
Liquor Licenses 8,000
Building Permits 170,000
Plumbing & Heating Permits 32,000 210,000
Street Reserve (45,000) (45,000)
Charges for Services
Licenses & Permits
Transfers In
EXPENDITURES Dept.
Detail Total
Mayor and Council (5) Insurance 35,500 35,500
Administration (1 ) Personal Service 7,050
(5) Insurance (3,000) 4,050
Finance (1 ) Personal Service 6,750
(3) Personal Service 2,500
(4) Other Professional Services 15,000 24,250
Economic Development (1) Personal Service 1,300 1,300
. Building & Zoning (1) Personal Services 11 ,000
(2) Capital Outlay Truck 22,000 33,000
Planning (1) Personal Services 5,600
(5) Insurance (1,000) 4,600
City Hall (1) Personal Services 800
(5) Insurance (3,750) (2,950)
Police (1) Personal Service 1 2,800
(5) Insurance (7,900) 4,900
Police Reserve (5) Insurance (600) (600)
Fire Department (1 ) Personal Service 3,400
(5) Insurance (3,600)
(2) Capital Outlay Overhead Heaters 5,000
(2) Capital Outlay Remodel Building 1 2,000 16,800
Streets (1 ) Personal Service 12,050
(5) Insurance (14,300)
(2) Capital Outlay Roadside Mower 41,000
(2) Capital Outlay Radio System 10,650 49,400
Equipment Services (1 ) Personal Service 2,600 2,600
Park Maintenance (1 ) Personal Service 2,300
(5) Insurance (1,350)
. (2) Capital Outlay Zero Turn Mower 8,500 9,450
12/14/00;Bgtamend
Page 1
Senior Citizen Programs (1 ) Personal Service 1,150 1,150
. Contingency (1) Personal Services (66,800)
(3) Personal Services (2,500)
(4) Other Professional Services (15,000) (84,300)
Transfers Out (6) Park Dedication 32,000
(7) Ice Arena Operating Fund Operating Deficit 32,000
NOTES:
(1) Cost of Living Adjustment previously approved
(2) Capital Outlay approved during 2001 budget meetings
(3) Finance Department Intern
(4) IS Contract with the City of Andover
(5) Liability Insurance Reallocation to Mayor and Council
(6) Previously approved Elk River Business Park Park Dedication Fees
(7) Amount to be determined (2000 Operating Deficit)
COUNCil CONTINGENCY ACTIVITY SUMMARY
Adopted Budget
$130,000
Approved Expenditures
Rivers of Hope
United Rentals
Duckor and Associates
. Duckor and Associates
University of Minnesota
YMCA of Minnesota
Subtotal
Contribution
Aerial Lift - Safety Equipment
Customer Service/Siting Plan
Logo/Branding
Goose Removal Services
Feasibility Study
3,000
5,947
7,750
14,813
2,319
10,750
85,421
Budget Amendments
Personal Services-Various Depts.
Finance Department
City of Andover
Balance Available
2000 COLA
Intern
Information Srvs. Employee
66,800
2,500 (3)
15,000 (4)
1,121
.
12/14/00;Bgtamend
Page 2