HomeMy WebLinkAbout5.a. Budget AjustmentsCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: MAY 7, 1991
AGENDA ITEM: BUDGET AMENDMENTS
AGENDA SECTION:
OLD BUSINESS
PREPARED BY: STEPHAN JILK, CITY ADMINISTRATOR
AGENDA N ITEM # 5A
ATTACHMENTS: MEMORANDUM FROM CITY
APPROVED BY:
ADMINISTRATOR & FINANCE DIR.
This item consists of discussion on the effects of the State Ald Cuts in
July, poiantial cuts in December, the use of bond defeasance funds to cover
over estimating revenue in 1991 and amendments to the Operating Budget to
manage these issues.
RECOMMENDED ACTION:
Motion to approve the recommendation for transfer of $265,051.00 from
the Bonds Paid Up Account and $50,000 from the CIP Account to the
General Fund.
COUNCIL ACTION:
elty of Rosemount
PHONE (612) 423-4411 2875 - 145th Street West, Rosemount, Minnesota MAYOR
Vernon Napper
FAX (612) 423-5203 Mailing Address:
P. O. Box 510, Rosemount, Minnesota 55068-0510 COUNCILMEMBERS
Sheila Klassen
John Oxborough
Mayor Napper Harry Willcox
TO: Ma
y pp Dennis Wippermann
Council Members Klassen, Oxborough, Willcox, Wippe A?iThATOR
Stephan Jilk
FROM: Stephan Jilk
DATE: May 3, 1991
RE: 1991 Budget Adjustments/Transfers
In late 1990 we became aware of an overestimate in revenues for
1991 because of an error in how state aids were calculated for
Rosemount by staff. This error resulted in an overestimate for
revenue in an amount of some $305,000.
In early 1991 the state legislature cuts were made to the local
government aid to be received by cities in the amount of $58,321
for Rosemount. Cities were advised that the amount would be
deducted from our July 1991 payment. Cities were further advised
to expect a similar cut in the December 1991 payments thus
causing an overall cut in aid to Rosemount in 1991 of $116,642.
These cuts came after our budgets were adopted and we were into
our budget year.
We have taken several steps in meeting these cuts in order to
maintain a balanced budget for 1991 and beyond.
1. Because of changes in personnel due to resignations and
delays in hiring for positions planned in 1991, we will
experience a savings in the amount of approximately $65,142.
This savings reflects all of the resignations, re -hirings,
estimated cost of the contract with Resource Strategies
Corp. and contracted building inspector and the continued
use through the summer of a planning assistant, Cindy
Carlson our planning intern.
2. Because of cost savings realized by cancelling certain items
in our 1991 CIP and experiencing extensive savings due to
good bids for equipment purchases in the CIP, we will
experience an overall savings, or dollars available, from
the 1991 CIP in an amount of $92,000.
3. In preparation of the 1991 budget, we had already cut
operating costs by some $39,949 after becoming knowledgeable
of the revenue estimate error.
(Sveryl11 r �
huag s (Pouring (Up (J �, osemounl l
Page 2
4. We have calculated a new cash flow for the General Fund for
the remainder of the year and based on the latest data for
revenue, expenditures and the above cost cutting measures,
we would need a transfer from some source into the General
Fund in late May to maintain a positive cash flow through
June until we receive our first tax settlement and state aid
payments in early July.
In November 1990 when we first discussed the revenue
mis-alculation, we suggested several methods to recover those
dollars. One of those was to utilize a portion of the receipts
from the defeasance of bonds. That defeasance was approved by
you and is now complete. We have realized approximately $400,000
in available revenue from that defeasance. A small amount, about
$20,000, will additionally be available when these bonds are
actually paid and the accounts closed out. Along with approving
the defeasance, you also approved the transfer of these funds to
the Bonds Paid -Up account. That account now has $452,362 in it.
To summarize then, we have, because of state aid cuts and the
revenue error, realized a total revenue shortage of $421,642 in
1991. We can effectively realize a potential recovery of
$197,091 in cost savings/cost cutting measures in 1991. We need
to make a transfer to ensure a positive cash flow at this time in
the amount of $ 315,051
With this transfer and other cost cutting measures, we should
maintain a positive cash flow through December of 1991 and end
the year with a general fund balance of just over $900,000 which
is some $200,000 higher than the preliminary year end balance of
$700,000 as of 12-31-90.
I am requesting then, that you approve a transfer from the Bonds
Paid -Up account to the General Fund in the amount of $ 265,051
and $50,000 from the CIP from savings realized in 1991.
Furthermore, we will be asking you to approve final transfers to
the General Fund at our second meeting in June after the
legislative session is over and we know what our aids and levy
limits will look like for 1992.
The $900,000 referenced above as a 12-31-91 fund balance is not
totally adequate to proceed beyond May of 1992. We will need to
address other revenue sources and means of increasing the fund
balance. Those additional means will consist of:
1. Budget reductions or holding down the amount of budget
increases.
Page 3
2. Additional transfers from the Bonds Paid -Up account and
possibly a one-time transfer from the unallocated CIP
reserve.
3. Possibe use of other funding mechanisms for CIP purchases
such as equipment certificates.
Again, I would like to wait until after the legislative session
is complete to address permanent measures.
I am satisfied that the transfers we are asking for and the cost
cutting and cost savings referenced above will allow us to
proceed quite satisfactorily and final adjustments are reachable.
dw
DATE:. May 3, 1991
TO: Mayor Napper
Council Members Klassen, Oxborough, Willcox & Wippermann
FROM: Jeff May, Finance Director
SUBJECT: State Aid Cuts, Budget Amendments and Transfer of Funds
Staff is prepared to address the State Aid cuts that the City will be
receiving in July and December of this year. The total amount that our aid
will be reduced by is $116,642($58,321 in July and a like amount in
December). We are prepared to address this amount with a combination of
expenditure budget cuts and two transfers, one from the Bonds Paid-up Fund
and one from the General CIP Fund. Most of the General Operating budget cuts
are a result of personnel changes that have occurred in the last 3 or 4
months. As you will see, along with these cuts are some increases in certain
areas to offset the personnel changes. Most of the CIP budget cuts are
results of savings on 1991 purchases or on items that are being cut
completely from the 1991 CIP budget. Along with the CIP budget cuts are two
additions, one which will be proposed at the May 7th meeting and one that
will be proposed at the May 21st meeting. Both of these will be included in
the computations included in this memo.
The transfers consist of two parts. The first transfer is for $265,051, from
the Bonds Paid-up Fund and is part of the approved 1991 budget. This
transfer was needed to offset the $300,000 projected revenue shortfall when
the budget was originally prepared in error. The second transfer is for
$50,000 which will combine with the expenditure budget cuts to balance the
budget and offset the State Aid cuts. This second transfer will come from
the CIP Fund and the 1991 savings/cuts of $72,300.
Also, there is a request to amend both the revenue and expenditure budgets
by $1,500 to acknowledge a donation from Koch Refining to the Police
Department for the purchase of 5 car phones for the Police squad cars.
GENERAL FUND
What I would like to do now is first summarize the budget amendments that
we are proposing and then show line by line the actual changes to be made
for your information.
Revenues•
Decrease in State Aid
Additional Transfer from CIP Fund
Increase in the Donations Account
Net Reduction in Total Revenues
Expenditures•
Increase Council(Hepatitis B Vaccination)
Decrease Finance(Change in Finance Director)
Decrease Finance(Ass't Fin Dir not filled)
Increase C/D(Contract Bldg Inspections)
Increase C/D(Planning Consultant Fees)
Increase C/D(Hire Planning Assistant)
Decrease C/D(Change in Planning Director)
Decrease C/D(Building Official not filled)
Decrease C/D(Ass't Administrator vs Planner)
Increase Police(Donation from Koch)
Increase P/W(Old Director Severance/New Dir)
Decrease P/W(Fill Eng Tech 6/1 vs 1/1)
Decrease P/W(Fill Maint III 9/1 vs 4/1)
Decrease Parks(Prog Dir no Benefits in 191)
Net Reduction in Total Expenditures
($116,642.00)
50,000.00
1,500.00
--------------
($ 65,142.00)
$ 7,000.00
( 5,000.00)
( 28,251.43)
17,000.00
17,000.00
7,102.00
( 8,111.21)
( 43,624.96)
( 5,806.40)
1,500.00
1,200.00
( 11,976.00)
( 11,459.00)
( 1,715.00)
--------------
($ 65,142.00)
Detail for Revenues:
101-33401-00-000(State Aid)
101-36230-00-000(Donations)
101-39203-00-000(Tran from CIP Fund)
Detail for Expenditures:
101-41110-01-598(Coun Designated -Hepatitis B)
101-41520-02-101(Finance Director)
101-41520-02-108
101-41520-03-101(Assistant
101-41520-03-102
101-41520-03-107
101-41520-03-108
101-41520-03-109
101-41520-03-121
101-41520-03-122
101-41520-03-131
101-41520-03-132
101-41520-03-133
101-41520-03-138
Finance Dir)
101-41910-01-312(Contract Bldg Insp)
101-41910-01-313(Planner Consultant Fees)
101-41910-02-101(Planning Director)
101-41910-02-107
101-41910-02-108
101-41910-02-109
101-41910-02-121
101-41910-02-122
101-41910-02-131
101-41910-02-132
101-41910-02-133
101-41910-02-138
101-41910-03-101(Building Official)
101-41910-03-102
101-41910-03-107
101-41910-03-108
101-41910-03-109
101-41910-03-121
101-41910-03-122
101-41910-03-131
101-41910-03-132
101-41910-03-133
($116,642.00)
1,500.00
50,000.00
$ 7,000.00
( 3,500.00)
( 1,500.00)
( 22,136.54)
474.11
209.77
( 1,904.00)
( 884.31)
( 1,038.88)
( 1,826.85)
( 821.64)
( 217.90)
( 87.53)
( 17.66)
17,000.00
17,000.00
( 13,450.56)
6,251.95
501.69
( 969.24)
( 681.80)
( 717.46)
1,062.20
( 65.00)
( 30.84)
( 12.15)
( 33,415.28)
( 1,700.00)
453.11
( 2,072.81)
( 1,274.88)
( 1,605.99)
( 2,787.67)
( 814.56)
( 290.50)
( 116.38)
Detail for Enenditures(Continued):
101-41910-04-101(Assistant Administrator)
101-41910-04-102
101-41910-04-107
101-41910-04-108
101-41910-04-109
101-41910-04-121
101-41910-04-122
101-41910-04-131
101-41910-04-132
101-41910-04-133
101-41910-99-103(C/D Part -Time)
101-41910-99-125
101-42110-01-323(Police Radio Units)
101-43100-02-108(Public Works Director)
101-43100-04-101(Engineer Tech)
101-43100-04-102
101-43100-04-108
101-43100-04-109
101-43100-04-121
101-43100-04-122
101-43100-04-131
101-43100-04-132
101-43100-04-133
101-43100-17-101(Maintenance
101-43100-17-102
101-43100-17-109
101-43100-17-121
101-43100-17-122
101-43100-17-131
101-43100-17-132
101-43100-17-133
101-45100-05-131(P & R Prog
101-45100-05-132
101-45100-05-133
Director)
3,160.76)
1,214.05)
1,000.00
501.57)
593.25)
213.01)
240.86)
781.56)
66.00)
35.34)
7,000.00
102.00
1,500.00
1,200.00
9,980.00)
672.00)
350.00)
400.00)
428.00)
751.00)
834.00
176.00)
53.00)
7,722.00)
1,570.00)
500.00)
293.00)
514.00)
744.00)
76.00)
40.00)
1,266.00)
316.00)
133.00)
GENERAL CIP FUND
Here again, what I would like to do is first summarize the budget amendments
that we are proposing and then show line by line the acutal changes to be
made for your information.
Revenues•
No Changes at this Time ($ 0.00)
--------------
Net Reduction in Total Revenues ($ 0.00)
Expenditures•
Decrease
Jaycee Park Land Purchase(Savings)
($
17,000.00)
Decrease
P.W. Pickup Purchase(Cut)
(
13,000.00)
Decrease
P.W. Pickup Purchase(Cut)
(
12,300.00)
Decrease
Parks Pickup Purchase(Cut)
(
17,000.00)
Decrease
Tandem Truck Purchase(Savings)
(
30,000.00)
Decrease
Computer Program Update(Savings)
(
3,000.00)
Increase
Transfer to General Fund
--------------
50,000.00
Net
Reduction in Total Expenditures
($
42,300.00)
Increase
Proposal - New CIP Program
$
10,000.00
Increase
Proposal - PC & Printer Purchases
10,000.00
Net
Total 1991 CIP Reserves Still Available
--------------
($
---------------
---------------
22,300.00)
Detail for Expenditures:
202-49002-01-510(Jaycee Land) ($ 17,000.00)
202-49002-01-553(P.W. Pickup) ( 13,000.00)
202-49002-01-554(P.W. Pickup) ( 12,300.00)
202-49002-01-556(Parks Pickup) ( 17,000.00)
202-49002-01-540(Tandem Truck) ( 30,000.00)
202-49002-01-586(Computer Program Update) ( 3,000.00)
202-49002-01-710(Transfer to General Fund) 50,000.00
Proposed only(until Council Approval for Projects is received):
202-49002-01-587(New CIP Program) $ 10,000.00
202-49002-01-588(PC & Printer Purchases) 10,000.00
TRANSFER FORM
Amount to be
TranSfeT from: transfered:
Paid-up Debt Sery Fund
102 - 49300 - 01 - 710
$
EDA Funds
201 - 46300 - 01 - 710
$
MSA Funds
203 - 49003 - 01 - 710
$
Water Core Facility Funds
605 - 49501 - 01 - 710
$
Sewer Core Facility Funds
606 - 49502 - 01 - 710
$
Storm Sewer Surcharge Funds
607 - 49503 - 01 - 710
$
Water Funds
601 - 49400 - 01 - 710
$
nV
Sewer Funds
602 - 49450.- 01 - 710
S
CQ)
Other Funds
ao>_- 4LOOL-- 01 - 710
S 5*0,J
- - 01 - 720
$
Amount to be
Transfer to:
transfered in:
- 39201 - 00 - 000
$
(Transfer from Gen'l Fund)
_
- 39202 - 00 - 000
$
(Contribution from Enterprise Funds)
IN - 39203 - 00 - 000
S �'�.JJJ.J_
(Transfer from )
- 39204 - 00 - 000
S
(Transfer from Water Hook -Up Core Fund)
_
- 39205 - 00 - 000
$
(Transfer from Sewer Hook -Up Core Fund)
_
- 39206 - 00 - 000
$
(Transfer from Storm Sewer Connect Fees)
_
- 39207 - 00 - 000
$
(Transfer from•EDA Fund)
_
- 39208 - 00 - 000
$
(Transfer from MSA Fund)
_
- 39209 - 00 - 000
$
(Transfer from Paid-up Debt S.erV Fund)
Authorized by: Department:
Date authorized:
Reason for transfer: lAt -V— s;�►� 4, c�� g�ZC,�,T A— v.-4 P/tc(C i� \
4--c am 1 1 6,—v -?41 r ---b A
General Journal Entry:
10l -10100 SZ=,uJJ.JJ
- 104
- 104
►u► - 39203 - 00 - 000
29300 S�oJJ.�J
SJR - 29400 Sti JJJ, u J
1Ji - %A J4L- 01 - 710 'N JJJ, v.J
1Ji - 10100
104 _
- 104
General journal entry entered by:
Date entered: - -
Journal Entry Type: (Normally will be Type 4)
Journal Entry t:
Transfer from:
Paid-up Debt Sery Fund
EDA Funds
NSA Funds
Vater Core Facility Funds
Sewer Core Facility Funds
Stora Sewer Surcharge Funds
Yater Funds
Sewer Funds
Other Funds
Transfer to:
TRANSFER FORM
Amount to be
transfered in:
_ - 39201 - 00 - 000
Amount to be
_ - 39202 - 00 - 000
transfered:
102 - 49300 = 01,- 710
S 1 S
201 - 46300 - O1`- 710
S
203 - 49003 - 01 - 710
S
605 - 49501 - 01 - 710
S
606 - 49502 - 01 - 710
s
607 - 49503 - 01 - 710
S
601 - 49400 - 01 - 710
S __
602 - 49450 - 01 - 710
S
_- -01-710
s
- - 01 - 720
s
Amount to be
transfered in:
_ - 39201 - 00 - 000
$
_ - 39202 - 00 - 000
$
_ = 39203 - 00";-000
$
-**39204 - 00,-. 000,.
_
s ,
- 39205 - 00 - 000
S
_ - 39206 - 00 - 000
S
_ - 39207 - 00 - 000
S
- 39208 - 00 - 000
S
til - 39209 - 00 - 000 $ i/ ala I
Authorized by: Department:
Date authorized:
(Transfer from Gen'l Fund)
(Contribution from Enterprise Funds)
(Transfer from )
(Transfer from Nater Hook -Up Core Fund)
(Transfer from Sewer Nook -Up Core Fund)
(Transfer from Stora Sewer Connect Fees)
(Transfer from EDA Fund)
(Transfer from NSA Fund)
(Transfer from Paid' -up Debt Sery Fund)
Reason for transfer: -TV? A -s PeP- TO 0:$-tL2Ad- Pte' '-`F MMAA^ 60 /59/- B,AtjC _
General Journal Entry:
.101 - 10100
00
- 104 _
- 104
1,31 - 39201- 00 - 000
2 61
01 - 29300
101 29400
a b c , 05 1. JJ
of - NS?oo- 01 - 710
al,i3OS1. Jy
Iw- - 10100
�lo�pil.J�
- 104 _
- 104
General journal entry entered by:
Date entered: - -
Journal Entry Type: (Normally will be Type 4)
Journal Entry 1:
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