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4.7. SR 12-16-2002River MEMORANDUM TO: FROM: Mayor and City Council Lori Johnson, Finance Director DATE: December 16, 2002 SUBJECT: Consider Budget Amendments Item 4.7. Attached for your review and consideration are the 2002 General Fund Budget Amendments. Budget amendments are presented to the Council each December in accordance with the Financial Management Plan. The sections of the Financial Management Plan relating to budget amendments are as follows: 6.3.1 6.3.2 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. Administrative budget amendments may be made throughout the year by Department Heads to adjust line item budgets within their depaxm~ent 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. Adminsitrative budget amendments have not been included in the attachment since they are simply transfers from one budget category to another within the same department. The amendments attached include requests for two new purchases; all of the other items have either been approved by the Council during the year or are adjustments to reflect significant variances from the budgeted amount. The two new budget requests are both public safety related. Attached is a memo from Assistant Police Chief Jeff Beahen requesting a change in the weapons used by the department. While the request requires an initial investment of approximately $7,550, it will result in an annual savings of approximately $2,250 in 2003 and $5,000 thereafter. Funds for this purchase are requested to be transferred from the patrol personal service budget which is under budget due to military leave for an officer. The other request is from Fire Chief Bruce West for a LCD projector. This projector will be used for training so that the other projector can be used in the Emergency Operations Center. The $3,750 for this purchase would come from the Contingency budget. As you can see, the budget amendments do not increase the total budget. Although building and related permit revenues have exceeded the budget, fine revenue is far below the budget offsetting other revenues increases. Last year building permit related revenues exceeded the budget by $380,000 and plan check fees exceeded the budget by $115,000. This year building permit revenues are over budget by approximately $80,000, but plan fees are at the budgeted level. This is why it is important to not overestimate building and planning revenues during the budget process. We don't want to become too reliant on revenues that are subject to significant fluctuation due to economic conditions. On the expenditure side, department heads have been watching their budgets very closley because of the changes in the economy and possible aid cuts due to the State deficit. As a result, projected year end expenditures in total are within the original budgeted amounts. Action Requested The Council is asked to consider the 2002 General Fund Budget Amendments as attached. CITY OF ELK RIVER 2002 BUDGET AMENDMENT DETAIL Intergovernmental Revenue Charges for Services Licenses & Permits Fines Transfers In TOTAL REVENUE AMENDMENTS REVENUES Line Item State Grants Sewer Inspection Fees Building Permits Plumbing & Heating Permits Court Fines Street Reserve Capital Outlay Reserve De.~cription COPS, Crime Prevention & other Comprehensive Plan Dept. Detail Total 30,000 15,000 60,000 20,000 (95,000) (45,000) 15,000 $ 30,000 15,000 80,000 {95,000) (30,000) Department Cable TV Administration Finance Planning Police Fi re Emergency Preparedness Streets Engineering Recreation Contingency Transfers Out EXPENDITURES Line Item Operating Supplies Operating Supplies Personal Services Office supplies Professional Services Personal Services Operating Supplies Professional Services Capital Outlay Operating Supplies Capital Outlay Office Supplies Engineering Fees Operating Supplies Dept. Description Detail Total Computer(s) $ 3,000 $ 3,000 Computer(s) 3,000 3,000 IT Coordinator 15,000 Computer(s) 3,000 18,000 Comprehensive Plan 27,350 27,350 Transfer to Operating Supplies (7,550) Transfer from Personal Services 7,550 Transfer from Capital Outlay 3,300 Transtar to Professional Services (3,300) Computer(s) 2,000 2,000 LCD Projector 3,750 3,750 Computer(s) 2,550 2,550 Transportation and GIS 33,000 33,000 Computer(s) 3,000 3,000 (80,650) (80,650) $ (15,000) (15,000) See Contingency allocations listed below Government Buildings Reserve IT Coordinator TOTAL EXPENDITURE AMENDMENTS 12/13/02;Bgtamend.xls Page 1 CITY OF ELK RIVER Note: All budget amendments listed above have been approved by the Council with the exception of those marked with an asterick. Those are new requests that require Council approval. COUNCIL CONTINGENCY ACTIVITY SUMMARY Adopted Contin_eenc.v Budget Council Approved Expenditures Rivers of Hope lSD 728 Community Ed. Boys & Girls Club Boys & Girls Club Ehlers & Associates Braun Intertec Lake Orono Improvement Assn. The Canada Goose Project Subtotal Contribution Community Recreation Safety Awareness Program Gym Rental Key Financial Strategies Plan Lake Orono Sampling Stock Lake with Sunfish Goose Removal Council Approved Allocation; to other Department; Various Departments Operating Supplies Computers (requested in 2003 budget approved for 2002 purchase) Emergency Preparedness LCD Projector Planning Hoisington Koegler - Comprehensive Plan Engineering HRGreen - Transportation Plan and GIS Total Allocations BALANCE AVAILABLE IN CONTINGENCY $ 95,000 3,000 1,OOO 5,000 15,000 72O 5O7 1,000 1,300 82,473 16,550 3,750 27,350 33,000 80,650 $ 1,823 12/13/O2;Bgtamend.xls Page 2 Police Department MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor & City Council Assistant Chief Jeffrey Beahen 11-15-02 Budget Amendment The police department is requesting an amendment to the 2002 budget to be used to restructure the current departmental weapons inventory. Because the department did not hire the drug enforcement officer and the wage of Officer Besser was not utilized all year due to his military leave, we are certain that our current budget will allow this latest request. BACKGROUND: The police department has always been blessed with a budget and schedule that allowed us to purchase a variety of departmental weapons for patrol and SWAT use. When the department was smaller, training and inventory of this armament was fairly simple and inexpensive. Over time, this inventory has had a more negative impact on our yearly budget then our yearly increases authorized by the City Council can support. The most significant increase has been the cost of ammunition - as we have had to purchase a dozen different types of ammunition to not only equip each weapon, but to have on hand for training purposes as well. We are mandated by the state to train and qualify with each weapon at least once a year, with an additional training session required during cold weather. This ends up being a minimum of ten (10) training sessions and twenty (20) different types of ammunition. There was a time when utilizing this many types of weapon delivery systems was both practical and economically feasible. We don't feel this is the case and we need to take action now to accommodate our budgets in the future. We had requested $2,250 in our 2003 budget for a new MP-5 and vehicle mount. That can be removed from our 2003 budget if this request is granted. CURRENT WEAPONS: We currently have the following weapons in our inventory. Individual Officer Sidearm: Purchased by each individual officer via their annual uniform allowance. Department provides practice ammunition and duty ammunition each year. The weapon is used for personal protection and close quarter combat situations the officer may encounter while on-duty. Beretta 12 ga. Model 1201FP Shotgun: Department weapon. Uses either 00 buck or slug, used for medium distances or shots up to 100 yards. Used in situations involving multiple suspects or situations where a slug offers greater penetration. Requires significant training for patrol officers - most choose not to use the weapon due to significant recoil issues. Cannot be used where there is concern that 00 buck rounds might miss part of the intended target. Being eliminated by many departments as a liability. H & K MP-5 Sub-machine Gun: Department weapon. Uses 9mm pistol round. Utilizes either a 15 or a 30 round magazine offering high capacity and rapid cyclic rate of fire. Can be fired in semi-automatic mode, burst mode or fully automatic. Offers range of up to 100 yards but is best suited for close quarter entry - specifically SWAT work or perimeter details. Very limited in range - although classified as a rifle, it is not accurate beyond 100 yards and has no penetration power at long distances. Very expensive to purchase and maintain. Our current inventory is between 10-17 years old and will need to be replaced at a cost of $1,854 per weapon. Colt or DPMS AR-15 or A-15 Rifle: Department weapon. Uses a .223 caliber round and has a 20 round magazine. Can be used close quarters or at great distances. Utilizes a collapsible stock to make the weapon multi-faceted for a variety of applications. Will work in all department applications and requires less training than most long arms for patrol use. Weapon has a stock that works in four different positions accommodating different sized officers. Weapon price is $980.20 a weapon, or half the cost of an MP-5. We currently have four of these weapons in our inventory. Advantages to unifying our weapon inventory: We are suggesting that we go to one standard shoulder fired weapon for use by all officers. This would eliminate the need to replace the expensive MP-5's as they wear out as well as having to supply the large amount of ammun/fion needed to train on that weapon. We would in fact be able to train each year by buying only the handgun and ARq 5 ammunition needed to train on these two weapons systems. Although SWAT would still need to train on the variety of weapons that they have, we would decrease significantly the types of ammunition needed for patrol training each year. The simplification in our inventory also encourages our officers to be more proficient in the weapons that they carry. It is much easier to train officers with their sidearm and one shoulder fired weapon, versus training with the sidearm and three shoulder frred weapons. The department firmly believes that in our current litigious surroundings, that we are better apt to defend claims against the City when we can establish proof that our officers are highly proficient with their weapons systems versus merely stating that we were able to qualify them with the variety of weapons once a year. Having to train with just one shoulder fired weapon will allow us to concentrate more thoroughly to insure that each officer is highly skilled in the operation and deployment of the weapons that they are responsible for. Advantages of the A-15 weapons system: The AR-15 or A-15 rifle is a fully tactical rifle that offers ease of carry, simplicity in operation and extreme accuracy to distances up to 400 yards. It utilizes a common caliber of ammunition which not only offers substantial stopping power, but ballistic capabilities that insure that the round will not over penetrate and possibly strike an innocent party. The basic sight system is integral to the weapon and is easily used by even inexperienced officers resulting in very tight round placement. The weapon is equipped with a forearm light and a sling, making it easier to carry and use during the hours of darkness. Our shotguns do not currently have a light attached. Our MP-5's do, making them the previous weapon of choice for night use or building searches. We have also changed our response policy for active shooter incidents and our response is directly related to the armament we carry. Columbine taught American Law Enforcement that quick response and immediate intervention is more apt to save lives than the previous manner of response. Prior to this change, we would respond -secure the perimeter and wait for SWAT. Urban logic now dictates that we move and attempt to disable the threat as soon as possible, minLmizing the loss of life and injury to innocent parties. Can Columbine happen here in Elk River? No one at Columbine High thought it could ever happen there. We need to be prepared to deal with the unthinkable. Last, there have been numerous incidents over the past ten years in police services, where the only weapon that presented the solution to the problem was the AR-15 style weapon. The North Hollywood bank shoot-out was the most glaring example. Closer to home, the active shooter event in Columbia Heights 18-months ago was another example of being out gunned by a singular suspect. MP-5's were deployed but they were of no use at the distance of 200 yards that the gunman was firing from. The shooter continued to hit officers and they attempted to return fete - missing the suspect by 40-50 yards. The .223 round is also capable of penetrating body armor. We are concerned that more and more violent criminals are wearing armor during the commission of their crimes. None of our current weapons will disable a suspect wearing armor with the exception of the four AR- 15's we have in inventory now. SWAT inventory: We have a specially trained and proficient SWAT team in Elk River. These eight officers are proficient in a variety of weapon systems and they train more often than the regular patrol force. Their training, although it still consists of a variety of weapon systems - will continue. This does not impact our budget as there are fewer officers needing to train on this variety and they tend to specialize - having several officers being responsible for certain systems rather than cross training everyone. The variety is needed for this specialized team as they are called in to handle events that are beyond the control of patrol and ones that are normally long in duration and may require advanced skills, equipment and techniques in order to resolve the event. We will still continue to carry 4-MP'Ss, two shotguns and a sniper rifle in the SWAT inventory to fit their specialized needs. The MP-5's will be the newest ones from our inventory and should last for some time once they are off patrol and used less frequently. Proposed plan: We are proposing to carry out the following plan to implement the changes we are suggesting: Value: $2,200.00 Value: $3,033.24 Trade four MP-5 weapons in to the law enforcement dealer. Trade 14 Beretta 12 ga. shotguns in to law enforcement dealer. Purchase 13 - DPMS A-15 dries, fully equipped. · DPMS-PCAR .223 Carbine Rifle with collapsible stock, 16" barrel and 2-30 round magazines $609.00 · Ambidextrous safety switch $20.00 · 3-Dot night sight $65.00 · Tactical Giles sling $32.95 · Magazine clamp $2.25 · Tactical 6-volt light $251.00 Total cost per weapon Cost for 13-weapons Less trade Total cost (Amount Requested) Additional savings 2003 budget Total actual cost Projected annual savings after 2003 $980.20 $12,742.60 -$5,233.24 $7,509.36 $2,250.00 $5,259.36 $5-6,000 per year Respectfully submitted by: Jeffrey AffB'eahen, Assistant Chief of Police BUDGET COMPARISON ~ ~'~ ' Date: 12/13/02 ~ ~ Time: 10:07nm CITY OF ELK RIVER "~ ~' ~ ~ ~ ,'~ Page: 1 .................................. ~._~ ................................................................................................................ .................... PREVIOUS YEAR ........................................... CURRENT YEAR ................ AMENDED YTD MONTH AMENDED YTD MONTH AS OF: 12/13/02 BUDGET ACTUAL ACTUAL BUDGET ACTUAL ACTUAL ............................................................................................................................................................ Fund: 101 GENERAL FUND Revenues TAX TAXES 3111 Current Ad Valorem Taxes 3112 Delinquent Ad Valorem Taxes 3121 Gravel Tax 3131 Penalties/Interest 3132 Tax Forieited Land Sale Total TAXES LIC LICENSES & PERMITS 3211 Liquor License 3212 Amusement License 3213 Cigarette License 3214 Apartment License 3215 Gas Fitters License 3216 Mining License 3217 Garbage Hauler License 3218 Other Business License/Permit 3231 Building Permit 3232 Plumbing/Heating Permit 3233 Permit Surcharge 3234 Electric Permit 3235 Animal License 3236 Parking Permit 3237 Other Non-Business Lic/Permit Total LICENSES & PERMITS GOVT INTERGOVERNMENTAL REVENUE 3311 COPS Grant 3320 Low Income Housing Aid 3321 Local Government Aid 3322 Homestead Credit 3323 Local Performance Aid 3324 PERA Aid 3325 Police 2% Aid 3326 Police Training Reimb 3327 State-Aid Street Maint 3329 State Crime Prevention Grant 3330 Other State Grants 3341 County Grant 3342 Other Local Grants Total INTERGOVERNMENTAL REVENUE CHGS CHARGES FOR SERVICES 3411 Admin Project Fees 3412 Planning & Zoning Fees 3413 Plan Check Fee 3415 Special Assessment Search 3416 Maps/Ordinances 3417 Copies 3418 Other General Govt Services 3430 Lockout Fees 3431 Police Services 3432 School Liaison 3433 Mobile Connection Fees 3434 Animal Impound Fee 3435 Vehicle Impound 3436 Fire Contracts 3437 Fire Calls 3451 Street Services 3461 Recreation Fees 3467 Concessions 3472 Park Use Fee 3474 Facility Use Fee 3475 Building Rent 3483 Sewer Inspection Fee 3484 Contractor License Check Total CHARGES FOR SERVICES FINE FINES 3510 Court Fines 3511 Parking Fines 3,835,850.00 3,784,590.08 1,882,331.16 4,163,150.00 3,785,848.81 1,804,312.38 0.00 84,004.68 16,030.81 0.00 46,703.29 10,099.49 56,300.00 54,737.13 15,845.32 54,000.00 36,624.40 0.00 0.00 26,518.70 8,112.80 0.00 4,550.30 2,577.15 0.00 16,350.95 16,350.95 0.00 0.00 0.00 3,892,150.00 3,966,201.54 1,938,671.04 4,217,150.00 3,873,726.80 1,816,989.02 42,000.00 44,656.25 0.00 44,000.00 40,895.00 0.00 2,000.00 1,485.00 375.00 1,200.00 1,485.00 0.00 2,200.00 2,600.00 700.00 2,300.00 25.00 0.00 10,650.00 12,672.00 0.00 12,500.00 15,840.00 0.00 2,200.00 5,005.00 2,100.00 2,500.00 2,450.00 0.00 11,500.00 8,830.35 0.00 13,500.00 13,595.60 0.00 1,000.00 861.00 615.00 1,000.00 315.00 0.00 7,000.00 10,550.00 1,100.00 15,000.00 23,841.00 0.00 544,200.00 631,031.04 90,899.95 389,200.00 452,176.77 0.00 238,250.00 245,231.92 10,107.27 76,300.00 98,990.56 0.00 850.00 1,573.16 -4,853.30 1,100.00 6,536.18 0.00 0.00 232.50 7.50 0.00 232.50 0.00 1,900.00 1,506.00 70.00 2,000.00 1,550.00 0.00 0.00 204.00 156.00 0.00 248.00 0.00 22,000.00 22,613.50 640.50 6,000.00 1,412.80 0.00 885,750.00 989,051.72 101,917.92 566,600.00 659,593.41 0.00 25,200.00 24,784.00 5,719.00 0.00 19,010.50 0.00 13,250.00 13,274.00 0.00 9,900.00 9,893.00 0.00 324,650.00 324,150.00 162,075.00 937,150.00 468,577.50 0.00 504,900.00 522,899.00 262,649.50 0.00 181,910.13 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,500.00 11,514.00 5,757.00 11,500.00 5,757.00 0.00 137,850.00 131,106.00 0.00 135,500.00 139,972.00 0.00 7,500.00 10,483.33 0.00 9,000.00 11,029.84 0.00 29,500.00 33,360.00 0.00 33,350.00 35,025.00 0.00 7,500.00 10,173.35 0.00 0.00 7,359.00 0.00 0.00 1,500.00 0.00 0.00 4,150.00 0.00 10,600.00 19,300.00 8,700.00 0.00 47,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,072,450.00 1,102,543.68 444,900.50 1,136,400.00 929,683.97 0.00 50,000.00 50,000.00 50,000.00 50,000.00 0.00 0.00 18,000.00 21,110.50 1,090.00 19,150.00 19,830.00 0.00 316,650.00 376,382.56 57,806.40 255,300.00 258,232.67 0.00 3,500.00 2,010.00 270.00 1,800.00 2,205.00 0.00 500.00 2,879.50 31.00 2,000.00 782.65 0.00 1,000.00 2,432.23 172.74 1,000.00 2,338.27 0.00 0.00 3,870.00 572.50 2,500.00 2,036.42 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,000.00 7,891.21 748.05 10,000.00 4,142.00 0.00 45,150.00 43,000.00 0.00 47,000.00 43,000.00 0.00 0.00 0.00 0.00 0.00 2,400.00 0.00 2,500.00 2,990.00 200.00 2,500.00 2,680.00 0.00 0.00 30.30 0.00 0.00 20.00 0.00 75,000.00 78,523.00 0.00 78,000.00 81,591.00 0.00 7,000.00 4,650.00 -825.00 9,000.00 10,750.00 0.00 15,000.00 15,586.50 1,920.00 38,000.00 20,949.46 0.00 54,000.00 65,645.12 11,114.12 80,000.00 91,909.89 0.00 0.00 0.00 0.00 0.00 37,370.47 0.00 3,000.00 3,081.00 0.00 0.00 2,090.00 0.00 0.00 0.00 0.00 0.00 6,982.72 0.00 0.00 0.00 0.00 0.00 3,500.00 0.00 11,000.00 11,190.50 390.50 2,000.00 19,133.00 0.00 1,500.00 2,100.00 155.00 1,500.00 2~205.00 0.00 610,800.00 693,372.42 123,645.31 599,750.00 614,148.55 0.00 104,000.00 83,416.05 10,484.35 230,000.00 106,529.12 0.00 5,500.00 5,805.00 775.00 7,500.00 4,000.00 0.00 CITY OF ELK RIVER 2002 BUDGET AMENDMENT DETAIL Intergovernmental Revenue Charges for Services Licenses & Permits Fines Transfers in TOTAL REVENUE AMENDMENTS REVENUES Line Item State Grants Sewer inspection Fees Building Permits Plumbing & Heating Permits Court Fines Street Reserve Capital Outlay Res~erve Descriptiorl COPS, Crime Prevention & other Comprehensive Plan Departmeqt Cable TV Administration Finance Planning Police Fire Emergency Preparedness Streets Engineering Recreation Contingency Transfers Out EXPENDITURES Line Item Operating Supplies Operating Supplies Personal Services Office supplies Professional Services ' Personal Services * Operating Sulpplies Professional Services Capital Outlay Operating Su;pplies, * Capital Outlay Office Supplies Engineering Fees Operating Supplies Description Computer(s) Computer(s) IT Coordinator Computer(s) Comprehensive Plan Transfer to Operating Supplies Transfer from Personal Services Transfer from Capital Outlay Transter to Professional Services Computer(s) LCD Projector Computer(s) Transportation and GIS Computer(s) See Contingency allocations listed below Government Buildings Reserve IT Coordinator TOTAL EXPENDITURE AMENDMENTS Dept. Detail Total 30,000 $ 30,000 15,000 15,000 60,000 20,000 80,000 (95,000) (95,000) (45,OOO) 15,000 (30,000) Dept. Detail Total $ 3,000 3,000 15,000 3,000 27,350 (7,550) 7,550 3,300 (3,30O) 2,000 3,750 2,550 18,000 3,000 (65,650) $ (15,000) 3,000 3,000 18,OO0 27,350 2,000 3,750 2,550 18,000 3,000 (65,650) (15,000) 12/16/02;Bgtamend.xls Page I CITY OF ELK RIVER Note: All budget amendments listed above have been approved by the Council with the exception of those marked with an asterick, Those are new requests that require Council approval. COUNCIL CONTINGENCY ACTIVITY SUMMARY Adopted Contino_enc¥ Bud_net (~nuncil Approved Expenditures Rivers of Hope lSD 728 Community Ed. Boys & Girls Club Boys & Girls Club Ehlers & Associates Braun Intertec Lake Orono Improvement Assn. The Canada Goose Project Subtotal Contribution Community Recreation Safety Awareness Program Gym Rental Key Financial STrategies Plan Lake Orono Sampling Stock Lake with Sunrfish Goose Remova~ Council Approved Allocations to other Departments Various Departments Operating Supplies Computers (requested in 2003 budget approved for 2002 purchase) Emergency Preparedness LCD Projector Planning Hoisington Koegler - Comprehensive Plan Engineering HRGreen - Transportation Plan and GIS Total Allocations BALANCE AVAILABLE IN CONTINGENCY 95,000 3,000 1,000 5,000 15,000 72O 507 1,000 1,300 67,473 16,550 3,750 27,350 18,000 65,650 1,823 12/16/02;Bgtamend.xls Page 2