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Home My WebLink About5F-Budget Amendments ib� Pxro� U 4646 Dakota Street SE Prior Lake, MN 55372 `�INNESo�P CITY COUNCIL AGENDA REPORT MEETING DATE: APRIL 13, 2015 AGENDA#: 5F PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR PRESENTED BY: JERILYN ERICKSON AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING AMENDMENTS TO THE 2014 AND 2015 BUDGETS FOR FEMA AND PROJECT EXPENDITURES CARRIED FORWARD FROM 2014 DISCUSSION: Introduction The purpose of this agenda item is to consider amendments to 2015 budgets for the General Fund, Capital Park Fund, Revolving Equipment Fund, Water Fund, Sewer Fund and Water Quality Fund to carry forward the funding and expenditures associated with projects approved in prior years that will be completed in 2015. In addition, this item includes an amendment to the 2014 General Fund budget for flood-related expenditures and FEMA funding. History The 2015 budgets were adopted on December 22, 2014. Since the budget ap- proval, expenditures were reviewed and approved for reimbursement by FEMA. Current Circumstances General Fund -2014 Flood Expenditures/ 2015 Flood Repairs/FEMA Reim- bursement Significant expenditures were incurred due to the 2014 spring/summer flooding. FEMA proceeds were committed and partially received in December, 2014. Gen- eral Fund reserves were used as interim financing, due to the uncertainty of how much of the expenditures would be eligible for reimbursement and the timing of any reimbursements. The City received approval of reimbursement of$188,914.49 for costs incurred in 2014 ($177,732.33) and for costs to be incurred in conjunction with some smaller projects in 2015 ($11,182.16). These costs included personnel, fuel, materials, and wear and tear on equipment. The following chart shows the allocation of costs: Amount Amount to be Expended in 20141 Expended in 2015/ Budget Budget Budget Item Amendment Amendment Use of Funds/Expenditures General Fund: Contingency $ 91,757 $ 0 Streets Department 54,230 5,339 Parks Department 7,160 5,843 Revolving Equipment Fund: 24,5851 0 Total Expenditures $177,7321 $11,182 Source of Funds/Revenues FEMA $177,732 $11,182 Total Source of Funds/Revenues $177,732 $11,182 The reimbursement for wear and tear was recorded in the Revolving Equipment Fund. General Fund - BS&A Software Implementation City staff have implemented most of the applications associated with the BS&A software although testing continues to be underway. Two applications (fixed assets and special assessments) will be implemented in 2015. A budget amendment is needed to carry forward the expenditure and funding. General Fund reserve funds were used to fund this project. 2015 Work Budget Amount Completed Amend- Budget Item Authorized in 2014 ment BS&A Software $214,190 $171,295 $42,895 General Fund—House Demolition The City Council approved a budget amendment on November 10, 2014 for demoli- tion costs up to $8,500 for the house located at 4577 Colorado Street. The demoli- tion was not completed in 2014. City staff have received quotes for the demolition. Actual demolition will take place in spring, 2015. General Fund reserve funds were used to fund this project. 2015 Work Budget Amount Completed Amend- Budget Item Authorized in 2014 ment Demolition $8,500 $0 $8,500 General Fund -Street Repairs/Maintenance/Etc The 2014 budget included a number of street repairs and maintenance projects that were not completed due to the abbreviated construction season. A number of fac- tors played into this that started with the long winter of 2013/2014, rain and flooding in June/July which led to water logged sites that backlogged the construction indus- try. Finally, there was a concrete shortage in the fall. Projects impacted were the 176th Street rehabilitation, Sunfish pavement repair, Sunset at South Shore pavement repair, Jordan retaining wall replacement, and Lords Street Bridge pier maintenance. A budget amendment is needed to carry for- ward the expenditure and funding in the amount of$111,000. General Fund -Trail Replacements & Shelter Repair The 2014 budget included a number of trail replacements that were not completed due to a number of factors in 2014 as previously noted. Projects include Pike Lake Parking Lot and Trail, Wilds Tail, Five Hawks Trail and the Sandpoint Shelter. A budget amendment is needed to carry forward the expenditure and funding in the amount of$135,300. 2 The Pike Lake parking lot and trail project is funded in part by grant revenues from the SMSC. Capital Park Fund Budget Two projects were budgeted in 2014: 1) Pike Lake Master Plan and 2) Rice Lake park improvements. Work was not completed on either of these projects, primarily due to staff being reallocated to other projects and a shorter construction season. A budget amendment is needed to carry forward the expenditure and funding in the amount of$170,000. 2015 Work Budget Amount Completed Amend- Budget Item Authorized in 2014 ment 2014 Pike Lake Master Plan 50,000 0 50,000 2014 Park Improvements (Rice 120,000 0 120,000 Lake Total $200,000 $ 0 $170,000 The funding source for the Pike Lake Master Plan was the $150,000 SMSC dona- tion received in 2012 and deposited in the Capital Park Fund. Revolving Equipment Fund Budget The costs associated with the replacement of the 1999 Sterling dump truck (unit #466) was approved on April 14, 2014. The chassis was received and expensed in 2014. The box, plow, wing and controls were not received until 2015. A budget amendment is needed to carry forward the expenditure and funding in the amount of$109,355. 2015 Work Budget Amount Completed Amend- Budget Item Authorized in 2014 ment Dump Truck—box, plow, wing and $109,355 0 $109,355 controls Water Fund &Sewer Fund The OSHA Arc Flash Study was approved in April 2014. The project is in process and will be finished in 2015. A budget amendment is needed to carry forward the expenditure and funding in the amount of$13,770 and $55,000 for the Water Fund and Sewer Fund, respectively. Water Quality Fund The Ponds Park Water Reuse project and the pond maintenance and retrofit pro- jects were authorized as part of the 2014 budget but were not completed in 2014. A budget amendment is needed to carry forward the expenditures and funding in the amount of$40,000. The Ponds Park Water Reuse project is funded in part by grant revenues. 3 Conclusion The Council should consider amending the budgets in order to reflect the FEMA ex- penditures in 2014 as well as expenditures authorized in prior years that will be completed in 2015. ISSUES: Due to a number of factors in 2014 including the abbreviated construction season, long winter of 2013/2014, flooding and rain in the summer, construction industry backlogged with projects, concrete shortage, etc. quite a few projects are in various stages of completion. FINANCIAL To accurately reflect expenditures and funding on the quarterly financial reports and IMPACT: for year ending 12/31/2014, the budget should be amended as follows: 2014 Budget 2015 Budget Fund Amendment Amendment General Fund $153,147 $308,877 Capital Park Fund 0 170,000 Revolving Equipment Fund 0 109,355 Water Fund 0 13,770 Sewer Fund 0 55,000 Water Qualit Fund 0 40,000 Totals $153,147 $697,002 ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve a resolution ap- proving amendments to the 2014 and 2015 budgets. 2. Deny this item for a specific reason and provide staff with direction. 3. Table this item to a certain date in the future. RECOMMENDED Alternative#1. MOTION: 4 o� PRIO U 4646 Dakota Street SE `�INxsso1A Prior Lake, MN 55372 RESOLUTION 15-xxx A RESOLUTION APPROVING AMENDMENTS TO THE 2014 AND 2015 BUDGETS FOR FEMA EXPENDITURES AND PROJECT EXPENDITURES CARRIED FORWARD FROM 2014 Motion By: Second By: WHEREAS, The 2014 and 2015 budgets were adopted on December 9, 2013 and December 22, 2014, respectively; and WHEREAS, The 2014 General Fund budget did not reflect the expenditures associated with the major flooding event of spring/summer 2014 and the corresponding FEMA reimbursement; and WHEREAS, The City has entered into agreements for certain services, improvements, product purchases during 2014; and WHEREAS, The products were not received or the work for each of these projects not completed in 2014 but will be in 2015. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The 2014 General Fund budget is amended to reflect the expenditures and funding of$153,147 associated with the major flooding event. 3. The 2015 budgets are amended for the remaining work to be completed in 2015 as follows: Fund Amendment General Fund $308,877 Capital Park Fund 170,000 Revolving Equipment Fund 109,355 Water Fund 13,770 Sewer Fund 55,000 Water Quality Fund 40,000 Totals $697,002 4. Funding will be provided by the respective Fund reserves, grant revenues and project partner contributions. PASSED AND ADOPTED THIS 13th DAY OF APRIL 2015, VOTE Hedberg Keeney McGuire Morton Thompson Aye ❑ ❑ ❑ ❑ ❑ Nay ❑ ❑ ❑ ❑ ❑ Absent ❑ ❑ ❑ ❑ ❑ Abstain ❑ ❑ ❑ ❑ ❑ Frank Boyles, City Manager