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Home My WebLink About5P Budget Amendments Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 19, 2018 AGENDA #: 5P PREPARED BY: CATHY ERICKSON, FINANCE DIRECTOR PRESENTED BY: CATHY ERICKSON AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING AMENDMENTS TO THE 2018 BUDGETS FOR PROJECT EXPENDITURES CARRIED FORWARD FROM 2017 DISCUSSION: Introduction The purpose of this agenda item is to consider budget amendments for the General Fund, Revolving Park Equipment Fund, Facilities Management Fund, Water, Stormwater, and Sewer Funds. The primary purpose is to carry forward the funding and expenditures associated with projects to 2018 when the expenditures will be in- curred. History The 2017 budgets were adopted on December 12, 2016. Some of the projects con- tained in that document were not completed and must therefore be moved to the 2018 budgets so they can be completed with the original funding allocation. These amendments do NOT increase or decrease the tax levy for either 2017 or 2018. Current Circumstances 2018 Budget Amendments General Fund – Fire Department Due to paid on-call firefighter turnover and open positions, the Fire department pur- chased five less firefighter turnout gear than budgeted. With the paid on-call fire- fighter hiring in process, the Fire Chief has an immediate need for the turnout gear funding. A 2018 budget amendment is needed to carry forward the expenditures and funding in the amount of $15,000 (101-42200.00-52055.00). Revolving Park Equipment Fund The 2017 CIP included $66k for the for the total reconstruction of the fishing pier at Sand Point Park. Staff was unable to complete the project in 2017. A 2018 budget amendment is needed to carry forward the expenditure in the amount of $66,000 (430-45200.00-55530.00) Facilities Management Fund For 2017, the CIP included $79,961 for the replacement of the library roof. This project was delayed to 2018. A 2018 budget amendment is needed to carry for- ward the expenditure in the amount of $79,961 (440-45500.00-55520.00) 2 Water Fund The 2017 budget included approximately $40,000 for a consultant to complete the water chapter as part of the 2040 comprehensive plan update. The project is near complete with an additional $1,273 due and payable in 2018 (601-49400.00- 53100.20). Stormwater Fund For 2017, the CIP included $300,000 for the Sand Point Beach Park pond mainte- nance and retrofit project. The survey, sediment testing and engineering design work occurred in 2017. The construction/project installation work will occur in 2018. A 2018 budget amendment is needed to carry forward the construction expenditure of $296,450 as this expenditure will be completed in 2018 (602-49420.00- 55530.00). A 2018 budget amendment is also needed for $130,000 for grant reve- nue from the Watershed District for this project (602-49420.00-33633.00). The net project cost, after receipt of the grant funding, will be $166,450. Sewer Fund Resolution 17-039 approved the selection of a consultant to complete the sanitary sewer chapter as part of the 2040 comprehensive plan update in the amount of $48,500. The 2017 budget actually included $25,000 for the sewer plan update or $23,500 less than actual cost. A 2018 budget amendment is needed for $29,275 which represents the $23,500 plus $5775 which was not spent from the original 2017 allocation. This is funded from Sewer Fund reserves (604-49450.00- 53100.20). Conclusion The Council should consider amending the budgets to reflect the expenditures au- thorized in prior years that will be completed in 2018. ISSUES: Due to the circumstances mentioned above, staff is recommending the carry for- ward of expenditures and funding in the amount of $357,968 for 2018. FINANCIAL IMPACT: To accurately reflect expenditures and funding on the financial reports and for year ending 12/31/2018, the budget should be amended as follows: Fund 2018 Budget Amendment General Fund $15,000 Revolving Park Equipment Fund 66,000 Facilities Management Fund 79,960 Water Fund 1,273 Stormwater Fund (net impact) 166,450 Sewer Fund 29,275 Totals $357,968 3 ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve a resolution ap- proving amendments to the 2018 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 18-___ A RESOLUTION APPROVING AMENDMENTS TO THE 2017 AND 2018 BUDGETS FOR PROJECT EXPENDITURES CARRIED FORWARD FROM 2017 Motion By: Second By: WHEREAS, The 2017 and 2018 budgets were adopted on December 12, 2016 and December 04, 2017, respectively; and WHEREAS, The 2018 budgets do not reflect the expenditures associated with the Fire Department firefighter turnout gear, Sandpoint Park fishing pier reconstruction, replacement of the library roof, the water and sewer plans for the comprehensive plan update, and the construction expenditure and related grant revenue for the Sand Point Beach Park pond project. WHEREAS, The products were not purchased or the work for each of these projects not completed in 2017 but will be in 2018. 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 2018 Budgets are amended to reflect the funding of $357,968 associated with the 2017 projects. 3. The 2018 budgets are amended for the remaining work to be completed in 2018. 4. Funding will be provided by the respective Fund reserves. Fund 2018 Budget Amendment General Fund $15,000 Revolving Park Equipment Fund 66,000 Facilities Management Fund 79,960 Water Fund 1,273 Stormwater Fund (net impact) 166,450 Sewer Fund 29,275 Totals $357,968 2 PASSED AND ADOPTED THIS 19th DAY OF MARCH 2018 VOTE Briggs McGuire Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager