The URL can be used to link to this page

Home My WebLink About5D 2016 2017 Budget Amendments Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 13, 2017 AGENDA #: 5D PREPARED BY: DON URAM, FINANCE DIRECTOR PRESENTED BY: DON URAM AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING AMENDMENTS TO THE 2016 AND 2017 BUDGETS FOR PROJECT EXPENDITURES CARRIED FORWARD FROM 2016 DISCUSSION: Introduction The purpose of this agenda item is to consider amendments to 2017 budgets for the General Fund, Facilities Management Fund, Revolving Park Equipment Fund and the Water and Sewer Funds. The primary purpose is to carry forward the fund- ing and expenditures associated with projects that will be completed in 2017. In ad- dition, this item includes an amendment to Funds 316 and 318 (Debt Service Funds) to eliminate small year-end deficits. History The 2017 budgets were adopted on December 12, 2016. Funds were budgeted for certain projects in 2016 and in 2017 which were either not completed or not com- pleted as planned in the originally approved budget. In addition, certain expendi- tures were not included in the 2017 budget which are now deemed necessary to accomplish this year. Current Circumstances General Fund – Public Works The 2016 budget included a few maintenance projects that were not completed. This list included the Lords Street Bridge maintenance which addresses the recom- mendations noted in the last bridge inspection. On February 13, 2017, a contract was awarded to TMI Coatings in the amount $25,770 to complete this work. A budget amendment is needed to carry forward the expenditure and funding in the amount of $25,770. General Fund – Parks Department The 2016 budget provided funding for the replacement of the Ponds Park lighting control system. Plans and specifications were prepared and a contract was awarded to Gunner Electric in the amount of $85,330 on November 14, 2016. Work did not begin until 2017. Because of that, a budget amendment is needed to carry forward the expenditure and funding in the amount of $85,330 in Fund 430 (Revolving Park Equipment Fund). General Fund - Police Department The Police Department has identified three immediate needs that were not included in the 2017 budget. 2 1. Replacement of SWAT weapon systems. The current primary weapon sys- tem used by the Prior Lake officers on the Tri- City Tactical team are 42 years old and need replacement. The cost to replace the 4 guns is esti- mated at $14,000. This would bring us up to date with the other depart- ments on the team and replace the weapon systems that were outdated years ago. 2. Sergeant’s Office Furniture. For 2017 the conversion of an officer to a ser- geant was done to provide better supervision. The addition caused a need to outfit a vacant office into use by the new sergeant. Estimated cost is $3,000. 3. Video cameras and recording storage for the property room. The Police department does not have any surveillance cameras in the building, includ- ing the property storage rooms. This lack of video surveillance carries a large liability potential for the city and is not a best practices ap- proach. Court trials are often won or lost based upon a demonstrated chain of evidence control. The property storage areas hold items of value includ- ing found items and evidence. Estimates for a small secure stand-alone system are about $3,000. A budget amendment is needed to carry forward the expenditures and funding in the amount of $20,000. General, Water and Sewer Funds - IT The 2016 budgets included an upgrade to Cartegraph which is software used for in- frastructure management (inventory, inspections, maintenance, etc. of the city’s $100+ million in infrastructure and buildings) and work order management. It is used primarily by Public Works, but also by Engineering/Inspections, and Commu- nity Development for time tracking. The software connects to the city’s GIS data sets so that infrastructure condition can be displayed on maps to better focus maintenance and replacement of the city’s roads, pipes, signs, etc. Many of the in- frastructure inspections stored in Cartegraph fulfill the city’s regulatory and/or liabil- ity requirements. A budget amendment is needed to carry forward the expenditure and funding in the amount of $25,000 in the General Fund and $18,035 in both the Water and Sewer Funds. Facilities Management Fund For 2016, the CIP included $620,000 for the replacement of the maintenance cen- ter roof. Due to the length of time it has taken to prepare plans and specifications, this project will be bid and completed in 2017. A budget amendment is needed to carry forward the expenditure in the amount of $620,000. Debt Service Funds At the end of 2016, Fund 316 (Parks Referendum) and Fund 318 (Fire Station #2) had small deficits totaling $262 and $175 respectively. To eliminate these deficits, a 2016 year-end transfer of funds in those amounts shall be authorized. To prevent the same from occurring in 2017, a budget amendment is needed to carry forward an expenditure of $88 for each fund. Conclusion The Council should consider amending the budgets to reflect the expenditures au- thorized in prior years that will be completed in 2017. 3 ISSUES: Due to the circumstances mentioned above, staff is recommending the carry for- ward of expenditures and funding in the amount of $812,345. FINANCIAL IMPACT: To accurately reflect expenditures and funding on the quarterly financial reports and for year ending 12/31/2016, the budget should be amended as follows: Fund 2016 Budget Amendment 2017 Budget Amendment General Fund $70,770 Revolving Park Equipment Fund 85,330 Water Fund 18,035 Sewer Fund 18,035 Facilities Management Fund 620,000 Debt Service Funds (316 and 318) $437 $176 Totals $437 $812,345 ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve a resolution ap- proving amendments to the 2016 and 2017 budgets. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 17-___ A RESOLUTION APPROVING AMENDMENTS TO THE 2016 AND 2017 BUDGETS FOR PROJECT EXPENDITURES CARRIED FORWARD FROM 2016 Motion By: Second By: WHEREAS, The 2016 and 2017 budgets were adopted on December 22, 2015 and December 12, 2016, respectively; and WHEREAS, The 2017 budgeted funds do not reflect the expenditures associated with the Ponds Park lighting project, the Lord’s Street bridge repairs, the purchase of Police Department safety equipment, Cartegraph software replacement, or the maintenance center roof replacement; and WHEREAS, Debt Service Funds 316 and 318 have small deficits at year-end 2016 and expected for 2017 that need to be funded; and WHEREAS, The products were not purchased or the work for each of these projects was not completed in 2016 but will be in 2017. 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 2016 General Fund budget is amended to reflect the expenditures and funding of $437 in the Debt Service Funds. 3. The 2017 budgets are amended for the remaining work to be completed in 2017. Fund 2016 Budget Amendment 2017 Budget Amendment General Fund $70,770 Revolving Park Equipment Fund 85,330 Water Fund 18,035 Sewer Fund 18,035 Facilities Management Fund 620,000 Debt Service Funds (316 and 318) $437 176 Totals $437 $812,345 4. Funding will be provided by the respective Fund reserves. PASSED AND ADOPTED THIS 13th DAY OF MARCH 2017 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager