7.8. SR 12-21-2009REQUEST FOR ACTION
To Item Number
Ci Council 7.8.
Agenda Section Meeting Date Prepared by
Administration December 21, 2009 Tim Simon, Finance Director
Item Description Reviewed by
Consider 2009 Budget Amendments
Reviewed by
Action Requested
The City Council is asked to consider the budget amendments as stated in the proposed 2009 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.
In February 2009, the council approved amendments in the amount of $428,550 which is reflected in the
amended budget column on the attached worksheet.
S:\Council\Tim\2009\2009 Budget Amendments.doc
There are only a couple of significant changes to the 2009 expenditure budget. The total of these
adjustments are ($246,000).
• Decrease equipment replacement charges ($100,000) as 2009 fleet purchases were amended by the
Fleet committee.
• Decrease in personnel services budgets ($100,000) due to balance of 1.5% COLA adjustments.
• Decrease in expenditures held in reserve for miscellaneous items ($46,000).
Revenue amendments are proposed for increase in the recreation fee category for the Hillside mountain
bike race and credit union sponsorship. Also, cable franchise fee in the amount of $79,000 was approved
from the cable commission.
Revenue reductions are proposed relating to the unallotment of local government aids.
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 ($300,500) and expenditure
amendments are proposed in the amount of $232,000. The budgeted difference if realized would be
offset by fund balance reserves. Other offsets will be council contingency and many departments ending
the year below budgeted amounts.
Attachments
• 2009 Budget Amendment Summary
Action Motion by Second by Vote
FOllow Up
S:\Council\Tim\2009\2009 Budget Amendments.doc
City of Elk River
Proposed 2009 Budget Amendments
December 21, 2009
Revenues
Proposed Final
Amended* Amendment Amended
Taxes
Licenses & Permits
Intergovernmental Revenue
Charges for Service
Fines & Forfeits
Other Revenues
Transfers
Total
Expenditures
Department
MAYOR & COUNCIL
CABLE TV
ADMINISTRATION
HUMAN RESOURCES
ELECTIONS
FINANCE
INFORMATION TECHNOLOGY
LEGAL
COMMUNITY DEVELOPMENT
PLANNING
CITY HALL
CONTINGENCY
POLICE
FIRE
EMERGENCY MANAGEMENT
BUILDING SAFETY
ENVIRONMENTAL
STREETS
SNOW REMOVAL
EQUIPMENT SERVICES
ENGINEERING
PARK MAINTENANCE
RECREATION
SR. CITIZEN PROGRAMS
ENERGY CITY
TRANSFERS
TOTAL
Surplus (Deficit)
9,697,550 79,000 9,776,550
353,550 353,550
983,600 (393,500) 590,100
585,000 11,500 596,500
157,000 157,000
259,800 2,500 262,300
599,600 599,600
12,636,100 (300,500) 12,335,600
Proposed Final
Amended* Amendment Amended
168,100 168,100
81,800 (1,150) 80,650
471,650 (5,550) 466,100
147,950 (1,200) 146,750
447,300 (4,150) 443,150
278,050 (7,250) 270,800
234,000 234,000
126,950 (800) 126,150
321,200 (9,050) 312,150
286,350 286,350
70,050 70,050
4,212,150 (63,650) 4,148,500
661,050 (14,050) 647,000
49,150 (850) 48,300
588,600 (4,250) 584,350
75,350 (900) 74,450
1,300,650 (79,500) 1,221,150
308,750 (200) 308,550
250,450 (2,450) 248,000
191,150 (11,000) 180,150
733,150 (27,900) 705,250
725,250 9,000 734,250
193,350 (1,700) 191,650
55,800 (5,400) 50,400
229,300 229,300
12,207,550 (232,000) 11,975,550
428,550 (68,500) 360,050
* After 2/17/09 approved amendments
CITY OF ELK RIVER
2009 BUDGET AMENDMENT DETAIL
December 21, 2009
REVENUES
Dept.
Detail Total
Source Line Item Description
Taxes Franchise tax Cable Franchise fees (2 quarters) $79,000 1
Intergovernmental LGA Unalloment-2009 (393,500)
Charges for Services Recreation fees Hillside Race Event registrations 11,500 2
Other Revenues Contributions Credit Union Sponsorship 2,500 2
(300,500)
TOTAL GENERAL FUND REVENUE AMENDMENTS $ (300,500)
EXPENDITURES
Dept.
Department Line Item Description Detail Total
Information Technology Part-time Pay Reduce PT staff (5,000) (5,000) 1
Planning Other Professional Services Reduce gravel mining study (5,000) 1
Travel, Conferences & Schools Planning Commissioners conference (1,000) (6,000) 1
Fire Operating Supplies Confined space rescue equipment 12,000 3
Travel, Conferences & Schools Confined space rescue equipment (12,000) - 3
Streets Operating Supplies Reallocate to street signs (4,000) 3
Operating Supplies Reduce budget line item (20,000) 1
Street Signs Reallocate to street signs (11,000) 3
Contractual Services Continue sign program 15,000 3
Contractual Services Snow plowing equipment (6,500) (26,500) 3
Equipment Services Operating Supplies Snow plowing equipment 6,500 6,500 3
Engineering Operating Supplies Reallocate to Other Professional Services (3,500) 3
Engineering Fees Reallocate to Other Professional Services (1,500) 3
Other Professional Services ICON Pavement Mgmt updates 10,000 3
Other Professional Services Consulting Services (10,000) 1
Travel, Conferences & Schools Reallocate to Other Professional Services (5,000) (10,000) 3
Park Maintenance Operating Supplies Turf Maintenance (8,850) 3
Contractual Services Turf Maintenance 8,850 - 3
Recreation Operating Supplies Hillside race supplies 3,500 2
Contractual Services Event sponsorships 10,500 14,000 2
Energy City Travel, Conferences & Schools Reduce Energy Expo expenditures (5,000) (5,000) 1
Various Personal Services COLA reduction (100,000) (100,000) 1
Various Equipment Replacement Charge Adjust equipment replacement schedule (100,000) (100,000) 1
TOTAL GENERAL FUND EXPENDITURE AMENDMENTS $ (232,000)
Tickmark explanations
1 = $325,000 held in reserve for 2009 and used to offset 2010 budget
2= Hillside race rec fees and credit union sponsorship net effect of zero.
3= Department requested administrative adjustments
12/17/2009;2009 Amendments