HomeMy WebLinkAbout5M 2017 Budget Amendment Report
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: JUNE 12, 2017
AGENDA #: 5M
PREPARED BY: CATHY ERCKSON, ACCOUNTING MANAGER
PRESENTED BY: CATHY ERICKSON
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING AMENDMENT TO
THE 2017 GENERAL FUND BUDGET TO REMOVE MILL & OVERLAY FUNDING
AND EXPENDITURES
DISCUSSION: Introduction
The purpose of this agenda item is to consider amendment to the 2017 General
Fund budget. The primary purpose is to remove the funding and expenditures asso-
ciated with the mill and overlay project that will be completed in 2017.
History
The 2017 budgets were adopted on December 12, 2016.
Current Circumstances
The 2017A Bonds, which will be presented to the Council for approval on June 12,
include the issuance of permanent improvement revolving (PIR) Bonds to finance
the 2017 street mill and overlay projects supported by special assessments. The
bond resolution also includes establishment of the PIR Fund which will allow the
City more flexible use of revenues from special assessments. For the City’s annual
street mill and overlay projects, financed with PIR Bonds, the revenues can then be
used for any authorized purpose of the PIR Fund. For example, special assess-
ments collected from a previous improvement could be used to provide upfront
funding for the future improvement. PIR Fund Bonds are secured by revenues of
the Fund and not solely by the special assessments of the financed improvements.
Since the funding and expenditures will be accounted for in the newly created PIR
fund, the General Fund budget should be amended to remove the $300,000 fund-
ing and $300,000 related expenditure for the mill and overlay project.
Conclusion
The Council should consider amending the General Fund budget to remove the
funding and related expenditure for the mill and overlay project.
ISSUES: Due to the establishment of the new PIR fund as part of the 2017A bond issuance
and sale resolution mentioned above, staff is recommending amendment of the
General Fund budget as detailed below.
2
FINANCIAL
IMPACT:
To accurately reflect expenditures and funding on the quarterly financial reports and
for year ending 12/31/2017, the budget should be amended as follows:
Fund
2017 Budget
Amendment
General Fund – Remove Mill &
Overlay Bond Proceeds $300,000
General Fund – Remove Mill &
Overlay Expenditures 300,000
Net Impact on General Fund Bal-
ance $0
ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve a resolution ap-
proving amendment to the 2017 budget.
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 AMENDMENT TO THE 2017 GENERAL FUND BUDGET TO REMOVE
MILL & OVERLAY FUNDING AND EXPENDITURES
Motion By: Second By:
WHEREAS, The budget was adopted on December 12, 2016; and
WHEREAS, The 2017A Bonds, which will be presented to the Council for approval on June 12, include the
issuance of permanent improvement revolving (PIR) Bonds to finance the 2017 street mill and
overlay projects supported by special assessments. The bond resolution also includes
establishment of the PIR Fund; and
WHEREAS, The funding and expenditures for the mill and overlay project will be accounted for in the newly
created PIR fund; and
WHEREAS, To accurately reflect expenditures and funding on the quarterly financial reports and for year
ending 12/31/2017, the General Fund budget should be amended to remove the $300,000
funding and $300,000 related expenditure for the mill and overlay project.
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 General Fund budget is amended to remove the $300,000 funding and $300,000 related
expenditure for the mill and overlay project.
3. The 2017 budget amendment is as follows:
Fund
2017 Budget
Amendment
General Fund – Remove Mill
& Overlay Bond Proceeds $300,000
General Fund – Remove Mill
& Overlay Expenditures $300,000
Net Impact on General Fund
Balance $0
PASSED AND ADOPTED THIS 12th DAY OF JUNE 2017.
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager