5.15. SR 12-19-1994
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ITEM 5.15
MEMORANDUM
FROM:
Mayor & City Council
Lori Johnson, Finance Director #
December 19, 1994
DATE:
SUBJECT: 1994 Budget Amendments
Throughout the course of the year, the Council has taken various actions
which affect the 1994 budget. In order to incorporate those actions and to
reflect significant changes in revenues, budget amendments are being
presented to the Council for approval. Please keep in mind that budget
amendments are not intended to mirror actual revenues or expenditures, but
to acknowledge significant changes that have taken place in the budget
throughout the year. Budget amendments also allow the Council to increase
expenditures if revenues exceed budget projections.
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In addition to reviewing budget amendments, it is necessary to review the
status of the General Fund cash flow reserve. It is important that the
reserve continue to keep pace with the increased budget for the upcoming
year. At the end of 1993, the unreserved General Fund balance was 27.79%
of the 1994 budget. Based on a proposed 1995 General Fund Budget of
$3,732,250, the 1994 ending fund balance should be in excess of $1,045,000
or an increase of approximately $100,000 over the 1993 ending balance. This
is one item that the rating agencies focus on when reviewing the City's
financial condition and rating our bond issues. As we have discussed in the
past, our target is that the unreserved fund balance be approximately 35% of
the upcoming year's budget. Although we have continued to make slow but
steady progress over the last six years, there is still room for improvement.
Without a sufficient reserve, the General Fund would not have sufficient cash
to meet its expenditure obligations for the first six months of each year.
Even with the balance at approximately 28%, there are times when the
General Fund cash balance is in a deficit position.
Budget amendment detail will be distributed to the Council for discussion
and approval on Monday night. Preliminary numbers indicate that revenues
will exceed projections and expenditures will be close to projected levels.
. council:bdgtamen
13065 Orono Parkway · P.O. Box 490. Elk River, MN 55330. (612) 441-7420. Fax: (612) 441-7425
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1994 BUDGET AMENDMENT SUMMARY
REVENUES
GENERAL PROPERTY TAX
INTERGOVERNMENTAL REVENUES
CHARGES FOR SERVICES
FINES & FORFEITS
LICENSES & PERMITS
OTHER REVENUES
TRANSFERS
TOTAL
1994
ADOPTED
$1,496,850
924,850
403,100
97,350
158,250
101,700
212,650
$3,394,750
$0
7,800
53,000
(15,000)
67,000
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(43,500)
$69,300
1994
AMENDED
$1,496,850
932,650
456,100
82,350
225,250
101,700
1 69,1 50
$3,464,050
1994 1994
EXPENDITURES ADOPTED AMENDED
MAYOR & COUNCIL $62,850 $0 $62,850
ECONOMIC DEVELOPMENT 38,900 0 38,900
ELECTIONS 1 2,700 0 1 2,700
ADMINISTRATION & FINANCE 395,100 0 395,100
LEGAL 35,000 6,000 41 ,000
. BUILDING & ZONING 198,900 17,000 215,900
DATA PROCESSING 22,550 0 22,550
PLANNING COMMISSION 4,950 (1,900) 3,050
PLANNING 109,700 0 109,700
ENGINEERING 28,000 0 28,000
GOVERNMENT BUILDINGS 78,600 6,500 85,100
POLICE 1,260,200 11,000 1,271,200
FIRE 230,050 64,500 294,550
POLICE RESERVES 17,200 0 17,200
EMERGENCY PREPAREDNESS 10,750 0 10,750
STREETS 410,000 0 410,000
EQUIPMENT REPAIR & MAl NT. 61,950 0 61,950
SNOW REMOVAL 80,800 0 80,800
STREET LIGHTING 1,500 0 1,500
SHADE TREE 9,350 0 9,350
PARKS 91,900 0 91,900
RECREATION 132,250 0 132,250
SR. CITIZEN PROGRAMS 31,550 0 31,550
CONTINGENCY 70,000 (64,500) 5,500
TOTAL $3,394,750 $38,600 $3,433,350
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1994 BUDGET AMENDMENT DETAIL
REVENUES
General Property Tax
Intergovernmental Revenues
Police Aid
Gravel Tax
Charges for Services
Plan Check Fees
Special Assessment Searches
Planning & Zoning Fees
Fire Contracts
Fines and Forfeits
Court Fines
Licenses & Permits
Building Permits
Plumbing & Heating Permits
Other Revenues
Fund Balance
Equipment Reserve Undesignated
Street Reserve
............."tQ[A4R$I;M.l~.AMeNPM~Nt$........).............
Transfers In
EXPENDITURES
Building & Zoning
1 Personal Services
Planning Commission
Travel Conferences & Schools
Legal
Professional Services
City Hall/Government Buildings
Utilities
Police
2 Capital Outlay
Fire Department
Other Retirement Benefits
3 Professional Service (Relief/Roof)
4 Capital Outlay
Contill(;lency.. ...... ........... ... ..... ... ..................... ................... ....... ...... .....~.y ~.ri~us.. ..........
..............m9'('Ap~Xe~r>!l'qffl,~AMfNPM~"'r~...)...........................................
Notes:
1. Additional Building Inspector hired in July not included in budget.
2. Copy Machine authorized by Council.
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5,800
2,000
37,000
(4,000)
15,000
5,000
(15,000)
57,000
1 0,000
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(43,500)
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:--.>:<.-::.::}::~/::..<. _.j..-...: "': }::
1 7,000
(1,900)
6,000
6,500
11 ,000
1 9,000
1 2,000
33,500
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3. Inspec services for roof ($6,000) and consulting for Fire Relief pension change ($6,000).
4. Repair Fire Station roof.
5. Transfers to Fire for Retirement Benefits, Professional Service and Capital Outlay.