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8.3. SR 12-19-2005 Item# 8.3. MEMORANDUM TO: Mayor and City Council FROM: Lori Johnson, Finance and Administrative Services Director/Interim City Administrator DATE: December 19,2005 SUBJECT: Consider 2005 Budget Amendments Budget amendments are presented to the Council each December in accordance with the city's Financial Management Plan. The budget amendment summary is attached along with excerpts from the budget section of the Financial Management Plan. The budget detail will be distributed at the Council meeting. Several of the budget amendments are for items already approved by the Council during the year. There only new item requested is a fuel pump for the central fuel system. A memo on this from Phil Hals is attached. Further, there are several adjustments to personal services and supplies. Several departments have exceeded their fuel budgets due to fuel costs that are much higher than they were when the budgets were drafted in June, 2004, therefore their fuel supply budgets have been increased. Action Requested The City Council is asked to consider the 200S budget amendments as attached. s: \ Council\Lori\2005\ budget amendments. doc The budget amendments are 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. s: \ Council\Lori\2005 \budget amendments.doc City of Elk River Proposed 2005 Budget Amendments December 19, 2005 Proposed Final Revenues Adopted Amendment Amended Taxes 6,051,800 6,051,800 Licenses & Permits 871,000 317,000 1,188,000 Intergovernmental Revenue 963,750 963,750 Charges for Service 700,850 166,000 866,850 Fines & Forfeits 154,000 154,000 Other Revenues 51,700 30,000 81,700 Transfers 491,000 23,600 514,600 Use of Fund Balance Total 9,284,100 536,600 9,820,700 Expenditures Proposed Final Department Adopted Amendment Amended MAYOR & COUNCIL 195,150 195,150 CABLE TV 117,850 117,850 ADMINISTRATION 408,900 65,000 473,900 ELECTIONS 1 ,450 1 ,450 FINANCE 464,500 3,000 467,500 INFORMATION TECHNOLOGY 200,200 200,200 LEGAL 219,400 8,100 227,500 PLANNING 374,050 18,500 392,550 GOVERNMENT BUILDINGS 180,200 180,200 CONTINGENCY 100,000 100,000 POLICE 3,081,000 117,450 3,198,450 FIRE 523,950 20,000 543,950 EMERGENCY MANAGEMENT 23,900 23,900 BUILDING & ENVIRONMENTAL 710,750 13,700 724,450 STREETS 794,650 33,000 827,650 SNOW REMOVAL 250,350 250,350 EQUIPMENT SERVICES 278,600 278,600 ENGINEERING 105,000 105,000 PARK MAINTENANCE 390,000 15,150 405,150 RECREATION 600,950 2,500 603,450 SR. CITIZEN PROGRAMS 96,450 96,450 ECONOMIC DEVELOPMENT ENERGY CITY 18,100 18,100 TRANSFERS 148,700 10,000 158,700 * TOTAL 9,284,100 306,400 9,590,500 Surplus (Deficit) 230,200 230,200 * Ice Arena operating transfer will be adjusted based on actual required -- MEMORANDUM TO: Mayor and City Council FROM: Phil Hals, Street Department Superintendent DATE: December 19,2005 SUBJECT: Unleaded Fuel Pump In the past month, we have experienced numerous problems with the unleaded fuel pump at the Public Works garage. This pump is reaching the end of its serviceable life after pumping over 860,000 gallons of unleaded fuel. The cost of a new pump is less than $5,000 installed and the life expectancy is 10 years. Considering the retail cost of unleaded fuel and what we paid for the last transport load, the pay back for the pump purchase will be less than 3 months. Recommendation: Staff recommends that Council approve the purchase of a new unleaded pump from Zahl Equipment Company with Council Contingency as the funding source.