Loading...
HomeMy WebLinkAbout5H Budget Amendments 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: APRIL 25, 2016 AGENDA #: 5H PREPARED BY: DON URAM, FINANCE DIRECTOR PRESENTED BY: DON URAM AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING AMENDMENTS TO THE 2015 AND 2016 BUDGETS FOR PROJECT EXPENDITURES CARRIED FORWARD FROM 2015 DISCUSSION: Introduction The purpose of this agenda item is to consider amendments to 2016 budgets for the General Fund and the Capital Park Fund. The primary purpose is to carry for- ward the funding and expenditures ($233,000) associated with projects that will be completed in 2016. An amendment to eliminate the transfer from the Capital Parks Fund to the General Fund is also proposed since $200,000 of the total proposed to be carried forward is in the Parks department. History The 2016 budgets were adopted on December 22, 2015. Current Circumstances General Fund – Parks Department The 2015 budget provided funding for the Wilds Parkway Trail replacement project and other parks amenities/equipment replacements. With the continued mainte- nance issues associated with the Ponds Park lighting system and the lack of availa- ble parts for this obsolete system, the replacement has become a high priority. As a result, the trail was made a lower priority and not replaced. The funding that was originally intended for the trail replacement project will be used for the lighting sys- tem and other amenity/equipment replacements as necessary during the year. A budget amendment is needed to carry forward the expenditure and funding in the amount of $200,000. General Fund - Street Repairs/Maintenance/Etc. The 2015 budget included a number of maintenance projects that were not com- pleted due to the backlog of work resulting from the flooding in 2014. One of the projects carried forward from 2014 to 2015 that was not completed was the Lords Street Bridge maintenance. This work includes addressing recommendations noted in the last bridge inspection. A budget amendment is needed to carry for- ward the expenditure and funding in the amount of $21,000. General Fund - Police Department In 2015, the Police Department experienced failures of several Tasers that are no longer supported by the company. In addition, vendors no longer repair the model carried by the department. Staff identified a need for 17 Tasers to be replaced, but 2 due to being over budget on overtime, did not want to spend more than absolutely necessary at year-end. The department did buy 5 Tasers in December to replace the unusable ones, but still have an immediate need for 12 more. The cost for the 12 plus necessary accessories is approximately $14,000. A budget amendment is needed to carry forward the expenditure and funding in the amount of $12,000 with the balance paid for out of the 2016 budget. Capital Park Fund Budget A $170,000 transfer from the Capital Parks Fund to the General Fund was budg- eted for in 2016 for neighborhood park development. With the carryover of $200,000 from 2015 to 2016, the amount of work associated with these projects, and long-term funding pressure for parks, staff is recommending that this transfer not be made. A budget amendment is needed to eliminate the transfer to the Gen- eral Fund in the amount of $170,000. Conclusion The Council should consider amending the budgets in order to reflect the expendi- tures authorized in prior years that will be completed in 2016. ISSUES: Due to the circumstances mentioned above, staff is recommending the carry for- ward of expenditures and funding in the amount of $233,000. FINANCIAL IMPACT: To accurately reflect expenditures and funding on the quarterly financial reports and for year ending 12/31/2015, the budget should be amended as follows: Fund 2015 Budget Amendment 2016 Budget Amendment General Fund $234,000 $233,000 Capital Park Fund 0 170,000 Totals $234,000 $404,000 ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve a resolution ap- proving amendments to the 2015 and 2016 budgets. 2. Remove this item from the consent agenda and provide staff with direction. 3. Table this item to a certain date in the future. RECOMMENDED MOTION: Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-xxx A RESOLUTION APPROVING AMENDMENTS TO THE 2015 AND 2016 BUDGETS FOR PROJECT EXPENDITURES CARRIED FORWARD FROM 2015 Motion By: Second By: WHEREAS, The 2015 and 2016 budgets were adopted on December 9, 2014 and December 22, 2015, respectively; and WHEREAS, The 2016 General Fund budget does not reflect the expenditures associated with the Ponds Park lighting project, the Lord’s Street bridge repairs, or the purchase of Police Department safety equipment; and WHEREAS, The products were not purchased or the work for each of these projects was not completed in 2015 but will be in 2016. 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 2015 General Fund budget is amended to reflect the expenditures and funding of $233,000 associated with the 2016 projects. 3. The 2016 budgets are amended for the remaining work to be completed in 2015 and to eliminate the budgeted transfer from the Capital Park Fund to the General Fund for 2016. Fund Amendment General Fund $233,000 Capital Park Fund 170,000 Totals $404,000 4. Funding will be provided by the respective Fund reserves. PASSED AND ADOPTED THIS 25th DAY OF APRIL 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager