7.9. SR 12-17-2007~/
City of
Elk -.-^
River
REQUEST FOR ACTION
To ~ Item Number
Ci Council 7.9.
Agenda Section Meeting Date Prepared by
Administration December 17, 2007 Tim Simon, Finance Director
Item Description Reviewed by
Consider 2007 Budget Amendments
Reviewed by
Action Requested
The City Council is asked to consider the budget amendments as stated in the proposed 2007 budget
amendments attachment.
Background/Discussion
Budget amendments are presented to the City Council each December in accordance with the City's
Financial Management Plan. Sections 6.3 and 6.3.1 of the Financial Management Plan regarding budget
amendments 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.
During the course of the year, the City Council approves items which are not included in the adopted
budget. Some of the expenditures are authorized to be taken out of the Council Contingency 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 heads 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.
There are only two significant changes to the 2007 expenditure budget, both of which can be reallocated
from Council Contingency. The first amendment is to increase insurance line item in the building
department due to the builders' lawsuit. The first invoice was received late in 2006, which did not allow
enough time to amend the origina12007 budget. The second amendment is for Police overtime fox a
number of items including amounts that are reimbursed from the State Crime Prevention Grant.
S:\Council\Tim\2007 Budget Amendments.doc
Pinewood and Ice Arena operating transfer will be adjusted based on the actual required amounts, which
will be determined at year-end.
Revenue amendments are proposed for increasing interest income and a grant received for sending fire-
fighters to the Ham Lake Fire in 2007.
Financial Impact
Revenue amendments are proposed in the amount of $166,400 and expenditure amendments are
proposed in the amount of $42,250.
Attachments
• 2007 Budget Amendment Summary
Action Motion by Second by Vote
Follow Up
S:\Council\Tim\2007 Budget Amendments.doc
City of Elk River
Proposed 2007 Budget Amendments
December 17, 2007
Proposed Final
Revenues Adopted Amendment Amended
Taxes 8,263,000 8,263,000
Licenses & Permits 870,700 - 870,700
Intergovernmental Revenue 970,150 - 970,150
Charges for Service 789,200 - 789,200
Fines & Forfeits 159,500 - 159,500
Other Revenues 132,200 141,500 273,700
Transfers 421,000 24,900 445,900
Total 11,605,750 166,400 11,772,150
Expenditures Proposed Final
Department Adopted Amendment Amended
MAYOR & COUNCIL 210,150 - 210,150
CABLE TV 92,400 - 92,400
ADMINISTRATION 439,250 - 439,250
HUMAN RESOURCES 83,500 - 83,500
ELECTIONS - - -
FINANCE 450,050 - 450,050
INFORMATION TECHNOLOGY 237,350 - 237,350
LEGAL 249,850 - 249,850
COMMUNITY DEVELOPMENT 170,300 - 170,300
PLANNING 294,450 - 294,450
CITY HALL 245,150 - 245,150
CONTINGENCY 89,000 (75,000) 14,000
POLICE 3,745,150 52,100 3,797,250
FIRE 627,750 38,550 666,300
EMERGENCY MANAGEMENT 43,100 1,600 44,700
BUILDING & ENVIRONMENTAL 673,900 25,000 698,900
ENVIRONMENTAL 88,050 - 88,050
STREETS 1,292,650 - 1,292,650
SNOW REMOVAL 304,550 - 304,550
EQUIPMENT SERVICES 235,700 - 235,700
ENGINEERING 209,100 - 209,100
PARK MAINTENANCE 678,150 - 678,150
RECREATION 743,400 - 743,400
SR. CITIZEN PROGRAMS 165,900 - 165,900
ENERGY CITY 42,300 - 42,300
TRANSFERS 194,600 - 194,600
TOTAL 11,605,750 42,250 11,648,000
Surplus (Deficit) - 124,150 124,150
* Ice Arena and Pinewood operating transfers will be adjusted based on actual required
CITY OF ELK RIVER
2007 BUDGET AMENDMENT DETAIL
December 17, 2007
REVENUES
Dept.
Detail Total
Source Line Item Description
Other Revenue Interest Income $125,000
Refunds & Reimbursements Ham Lake Fire 16,500 $141,500
Transfers In * Liquor 2006 Ford Explorer -Fire 24,900 $24,900
TOTAL REVENUE AMENDMENTS $ 166,400
EXPENDITURES
Department
Human Resources
Information Technology
Legal
Planning
Contingency
Police
Fire
Emergency Management
Building/Environmental
Snow Removal
Senior Center
Line Item Description Detail
Office Supplies Purchase file cabinet 1,100
Professional Services Transfer to Office Supplies (1,100)
Other Professional Services Transfer to Travel, Conferences & Schools (500)
Travel, Conferences & School s Additional training classes 500
Personal Services Transfer to Legal Fees (146,958)
Legal Fees Transfer from Personal Services 146,958
Office Supplies Replace Sr. Planner computer 2,500
Travel, Conferences & School s Transfer to Office Supplies (2,500)
Allocate to Police Patrol Overtime (50,000)
Allocate to Building Liability Premium (25,000)
Patrol Overtime Increase
" Operating Supplies Support Svc Purchase parking permits/auto boot
Office Supplies Supplies for new employee
" Building Repair & Maintenance Station 1 repairs/flag pole project
* Equipment 2006 Ford Explorer
Operating Supplies Backup for warning sirens
Travel, Conferences & Schools Laptop for EOC
Insurance Additional Liability Premium
Operating Supplies Purchase more salt
Contractual Services Transfer to Operating Supplies
Operating Supplies Activity Center supplies
Utilities Transfer to Operating Supplies
Building Repair & Maintenance Cabling for Activity Center
Contractural Services Transfer to Building Repair & Maint.
Dues & Subscriptions Purchase periodicals
TOTAL EXPENDITURE AMENDMENTS
Note: The budget amendments listed above have not been approved by the Council with the exception of those
marked with an asterick. Those are requests that Council has approved earlier this year.
Dept.
Total
50, 000
2,100
3,500
10,150
24,900
2, 500
(900)
25, 000
7,500
(7,500)
1,400
(2, 000)
5, 000
(5,000)
600
(75,000)
52,100
38, 550
1,600
25, 000
$ 42,250
12/13/2007;2007 Amendments Page 1
COUNCIL CONTINGENCY ACTIVITY SUMMARY
Adopted Contingency Budget $ 89,000
Council Approved Expenditures
CAER Walk-in freezer contribution 115
Planning Code Enforcement Software 3,200
Council Approved Allocations to other Departments
Police Patrol Overtime 50,000
Building Liability Premium 25,000
Contingency Balance Remaining $ 10,685
12/13/2007;2007 Amendments Page 2