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Home My WebLink About5G 2019 Budget Amendments Report4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: MARCH 18, 2019 AGENDA #: 5G PREPARED BY: CATHY ERICKSON, FINANCE DIRECTOR PRESENTED BY: CATHY ERICKSON GOAL AREA AND OBJEC- TIVE: High-Value City Services 1. Establish financial stability for all funds. AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING AMENDMENTS TO THE 2019 BUDGETS FOR PROJECT EXPENDITURES CARRIED FORWARD FROM 2018 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 2019 when the expenditures will be in- curred. History The 2018 budgets were adopted on December 4, 2017. Some of the projects con- tained in that document were not completed in 2018 and must therefore be moved to the 2019 budgets so they can be completed with the original funding allocation. These amendments do NOT increase or decrease the tax levy for either 2018 or 2019. Current Circumstances 2019 Budget Amendments General Fund – Finance Department Professional services to update financial planning models was not completed until early 2019. A 2019 budget amendment is needed to carry forward the expendi- tures and funding in the amount of $5,395 (101-41520.00-53100.80). General Fund – Police Department Equipment purchased for the Police department was not received until early 2019. A 2019 budget amendment is needed to carry forward the expenditures and funding in the amount of $10,490. (101-41520.00-53100.80). General Fund – Parks Department Parks staff was not able to complete the 2018 trails sealcoating because Gopher State sealcoating ran out of time to do the trail within specifications due to weather. A 2019 budget amendment is needed to carry forward the expenditures and funding in the amount of $30,060. (101-45200.00-54010.55). 2 General, Water and Sewer Funds - IT The 2018 budgets included replacement of the city’s software used for infrastruc- ture management (inventory, inspections, maintenance, etc. of the city’s $100+ mil- lion in infrastructure and buildings) and work order management. A contract was approved by the Council in 2018 for the new software purchase, but the work is be- ginning in 2019. A budget amendment is needed to carry forward the expenditure and funding in the amount of $56,670 (18,890 each for the General Fund, Water and Sewer Funds) (101-41920.00-55570.00 / 601-49400.00-55570.00 / 604- 49450.00-55570.00) Revolving Park Equipment Fund The 2018 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 2018 because the vendor was backlogged when ordering the dock sections. Therefore, they couldn’t be built in time to complete the project in the summer/fall of 2018. A 2019 budget amendment is needed to carry forward the expenditure in the amount of $66,000 (430-45200.00-55530.00) Equipment Replacement Fund Due to Police staff turnover, the emergency siren replacements were not completed in 2018. A budget amendment is needed to carry forward the expenditure and funding in the amount of $46,350 (410-42100.00-55570.00) Work on the Fire pumper truck is only partially completed in 2018. The work on the pumper was delayed because US Government contract work done by the vendors was required to take priority over other contracts. A budget amendment is needed to carry forward the remaining expenditure and funding in the amount of $$364,820. (410-42200.00-55570.00-CAP18-000001) Facilities Management Fund For 2018, the CIP included $79,961 for the replacement of the library roof. This project was delayed to 2019 due to a lack of roofing contractors/quotes. Public Works staff has received quotes for the work to be completed in 2019. The cost is almost $20,000 lower than the original estimate. A 2019 budget amendment is needed to carry forward the expenditure in the amount of $60,000 (440-45500.00- 55520.00) Water/Sewer Fund The automated meter reading system replacement project contract approved by the Council is $2,2230,591. This project was started in the summer of 2018 but will not be complete until mid-2019. In 2018 a little over half of the contract costs were in- curred. Staff recommends amending the 2019 budget for the remaining costs of $961,660. ($480,830 each for the Water and Sewer Funds) (601-49400.00- 55530.00-CAP18-000001 and 604-4940.00-55530.00-CAP18-000001). 2018 Budget Amendment/Transfer Water Fund Completion of the Summit Preserve Booster Station crossed two years (2017 and 2018). Staff recommends amending the 2018 budget for the 2018 final funding 3 transfer of $388,000 from the Water Trunk Fund (F502) approved through Resolu- tion 17-193. (601-00000.00-39203.00) Debt Service Funds At the end of 2018, Fund 316 (Parks Referendum) had a small deficit totaling $487 for debt service required reporting. To eliminate this deficit, a 2018 year-end trans- fer from the General Fund is recommended. Conclusion The Council should consider amending the budgets to reflect the expenditures au- thorized in the prior year that will be completed in 2019. ISSUES: Due to the circumstances mentioned above, staff is recommending the carry for- ward of expenditures and funding in the amount of $1,601,445 for 2019. 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- Expenditures 2019 Budget Amendment General Fund $64,835 Revolving Park Equipment Fund 66,000 Equipment Replacement Fund 411,170 Facilities Management Fund 60,000 Water Fund 499,720 Sewer Fund 499,720 Totals $1,601,445 Fund – Transfer In (Revenue) 2019 Budget Amendment Water Fund $388,000 F316 Debt Service Fund $487 Totals $388,487 ALTERNATIVES: 1. Motion and second as part of the consent agenda to approve a resolution ap- proving amendment to the 2019 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 19-___ A RESOLUTION APPROVING AMENDMENTS TO THE 2018 AND 2019 BUDGETS FOR FINAL TRANSFERS AND PROJECT EXPENDITURES CARRIED FORWARD Motion By: Second By: WHEREAS, The 2018 and 2019 budgets were adopted on December 04, 2017 and December 03, 2018, respectively; and WHEREAS, The 2019 budgets do not reflect the expenditures for Finance professional services, Police equipment, Parks trail sealcoating, Public Works infrastructure management software, Sandpoint Park fishing pier reconstruction, emergency siren replacement, 2019 portion of fire pumper replacement, replacement of the library roof, and the 2019 portion of the automated meter reading system replacement; and WHEREAS, The products were not purchased or the work for each of these projects was not completed in 2018 but will be in 2019. WHEREAS, The 2018 budget does not reflect the final funding transfer to the Water Fund for the Summit Preserve Booster Station and a final funding transfer for the Fund 316 debt service fund. 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 2019 Budgets are amended to reflect the funding of $1,601,445 associated with the 2018 projects. 3. The 2019 budgets are amended for the remaining work to be completed in 2019. 4. Funding will be provided by the respective Fund reserves. Fund- Expenditures 2019 Budget Amendment General Fund $64,835 Revolving Park Equipment Fund 66,000 Equipment Replacement Fund 411,170 Facilities Management Fund 60,000 Water Fund 499,720 Sewer Fund 499,720 Totals $1,601,445 5. The 2018 Budgets are amended to reflect the following final funding transfers: 2 Fund – Transfer In (Revenue) 2019 Budget Amendment Water Fund $388,000 F316 Debt Service Fund $487 Totals $388,487 PASSED AND ADOPTED THIS 18th DAY OF MARCH 2019. VOTE Briggs Erickson Thompson Braid Burkart Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Michael Plante, City Manager