7.2. SR 12-15-2008..~
Elk
River
REQUEST FOR ACTION
To Item Number
Ci Council 7.2•
Agenda Section Meeting Date Prepared by
Adnvnistration December 15, 2008 Tim Simon, Finance Director
Item Description Reviewed by
Consider 2008 Budget Amendments Lori ohnson, Ci Administrator
Reviewed by
Action Requested
The City Council is asked to consider the budget amendments as stated in the proposed 2008 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 maybe 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 a couple of significant changes to the 2008 expenditure budget.
• Increase in the police department personnel services budget to reflect services performed related
to the Sonic Restaurant opening and the security services provided to the Republican National
Convention.
• Decrease in personnel services budget in the planning department and energy city budget related
to unfilled budgeted positions.
• Increase in park maintenance personnel services to better reflect an employee's time shared
between parks maintenance and ice arena budget. The time was split approximately 50% in each
division. Increase in park maintenance with offsetting decrease in transfer out to ice arena. The
arena budget will be adjusted accordingly.
Revenue amendments are proposed for increasing police services related to the Republican National
Convention (RNC) and Sonic Restaurant opening. In addition, Sherburne County Regional Rail
Authority has reimbursed the City for overtime related to maintaining the Northstar rail parking lot.
Revenue reductions are proposed relating to building construction activity in 2008.
The Library budget is proposed to be amended to reflect the donated electricity from ERMU in the
amount of $20,000 with a revenue offset of contributions. This will better reflect the true cost of
operating the library.
Pinewood and Ice Arena operating transfer will be adjusted based on the actual required amounts, which
will be determined at year-end.
Financial Impact
General Fund revenue amendments are proposed in the amount of ($210,800) and expenditure
amendments are proposed in the amount of $12,050. The budgeted difference if realized would be offset
by fund balance reserves. Other offsets will be council contingency and departments ending the year
below budgeted amounts.
Attachments
• 2008 Budget Amendment Summary
Action Motion by Second by Vote
FOIIOW Up
City of Elk River
Proposed 2008 Budget Amendments
December 15, 2008
Proposed Final
Revenues Adopted Amendment Amended
Taxes 9,189, 350 9,189, 350
Licenses & Permits 676,250 (200,000) 476,250
Intergovernmental Revenue 976,900 - 976,900
Charges for Service 766,950 (125,000) 641,950
Fines & Forfeits 160,000 - 160,000
Other Revenues 251,000 114,200 365,200
Transfers 473,000 - 473,000
Total 12,493,450 (210,800) 12,282,650
Expenditures Proposed Final
Department Adopted Amendment Amended
MAYOR & COUNCIL 221,100 - 221,100
CABLE TV 99,250 - 99,250
ADMINISTRATION 457,750 - 457,750
HUMAN RESOURCES 156,900 - 156,900
ELECTIONS 40,850 - 40,850
FINANCE 434,450 - 434,450
INFORMATION TECHNOLOGY 256,250 - 256,250
LEGAL 234,700 - 234,700
COMMUNITY DEVELOPMENT 158,550 - 158,550
PLANNING 328,450 (65,650) 262,800
CITY HALL 300,000 - 300,000
CONTINGENCY 60,000 (1,600) 58,400
POLICE 4,192,050 109,300 4,301,350
FIRE 639,250 - 639,250
EMERGENCY MANAGEMENT 52,300 - 52,300
BUILDING & ENVIRONMENTAL 807,750 - 807,750
ENVIRONMENTAL 87,150 - 87,150
STREETS 1,196,450 2,350 1,198,800
SNOW REMOVAL 301,600 - 301,600
EQUIPMENT SERVICES 280,800 - 280,800
ENGINEERING 174,550 - 174,550
PARK MAINTENANCE 668,350 12,450 680,800
RECREATION 781,850 - 781,850
SR. CITIZEN PROGRAMS 201,300 - 201,300
ENERGY CITY 93,350 (30,000) 63,350
TRANSFERS 268,450 (14,800) 253,650
TOTAL 12,493,450 12,050 12,505,500
Surplus (Deficit) - (222,850) (222,850)
* Ice Arena and Pinewood operating transfers will be adjusted based on actual required
CITY OF ELK RIVER
2008 BUDGET AMENDMENT DETAIL
December 15, 2008
REVENUES
Dept.
Detail Total
Source Line Item Description
Other Revenue
Police Services SONIC Overtime $41,750
Police Services RNC Overtime $67,550
Street Services Sweeping/parking lot maintenance 4,900 $114,200
Licenses & Permits Building/Plumbing/Heating permits Decreased building activity (200.000) ($200;000)
Charges for Services Plan Check Fee Decreased building activity ('25,000) ($125,000)
TOTAL GENERAL FUND REVENUE AMENDMENTS $ (210,800)
EXPENDITURES
Dept.
Department Line Item Description Detail Total
Human Resources Office Supplies Purchase computer 1,200
Travel, Conferences & Schools Transfer to Office Supplies (1,200) -
Community Development Office Supplies Population signs 1,150
Travel, Conferences & Schools Transfer to Office Supplies (1,150) -
Planning Full-time Pay Senior Planner (1/2 year) (38,100)
Part-time Pay Code Enforcement (27,550) (65,650)
Police Admin Overtime SONIC Overtime 1,250
Admin Overtime RNC 14,650
Patrol Overtime SONIC Overtime 27,700
Patrol Overtime RNC 35,400
Patrol -Fuel RNC 1,600
Investigation Overtime SONIC Overtime 5,950
Investigation Overtime RNC 15,900
Support Overtime SONIC Overtime 4,600
Reserves Part-time Pay SONIC Overtime 2,250 109,300
Contingency 'Signs Schoolview 8 Downtown (1,600) (1,600)
Streets Full-time Pay Reallocate Matt's pay w/Arena (2,550)
Overtime Sweeping/parking lot maintenance 4,900
Fuels & Lubs Reallocate funds 2,350
Operating Supplies Reallocate funds (16,900)
Street Signs Reallocate funds 18,550
Contractual Services Reallocate funds -Purchase salVsign materials (16,850)
Bldg RepairlMaint Services Reallocate funds 3,100
Equip Repair/Maim Services Reallocate funds 2,750
Snow Removal-Operating Supplies Reallocate funds -Purchase salt 12,000
Snow Removal-Contractual Svcs Reallocate funds -Purchase salt (5,000) 2,350
Park Maintenance Full-time Pay Reallocate Case's pay w/Arena 12,450
Un'rfortn Allowance Move budget item 4,050
Contractual Services Reallocate funds 10,000
Equipment Rental Reallocate funds (10,000)
Uniform Rental Move budget item (4,050) 12,450
Recreation Admin-0perating Supplies Reairocate rands 1,000
Admin-Advertising/Marketing ReaAocale funds (1,500)
Programming-Operating Supplies Reallocate funds 8,700
Programming-Contractual Svcs Reallocate funds (2,900)
Other Merchandise for Resale Reallocate funds (5,300) -
Senior Center Operating Supplies Reallocate (4,000)
Telephone Reallocate for actual costs 500
Contractural Services Reallocate 3,500 -
Energy City Part-time Pay Energy Coordinator (30,000) (30,000)
Transfer Out Full-time Pay Ice Arena (14 800) (14;800)
TOTAL GENERAL FUN D EXPENDITURE AMENDMENTS S 12,050
COUNCIL CONTINGENCY ACTIVITY SUMMARY
Adopted Continaencv Budget
Council Aooraved Expenditures
Earl Anderson Co Signs -Schoolview & Downtown
M-R Sign
Xpress Graphics
Contingency Balance Remaining
*= previously approved by council
$ 60,000
(1,600)
$ 58,400
12/12/2008;2008 Amendments Page 1