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Home My WebLink About05(D) - Consider Resolution Approving Amendments to 2022 Budgets for Project Expenditures Carried Forward from 2021 Report City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 CITY COUNCIL AGENDA REPORT ITEM: 5D MEETING DATE: March 21, 2022 PREPARED BY: Cathy Erickson, Finance Director PRESENTED BY: Cathy Erickson AGENDA ITEM: Consider Resolution Approving 2021 and 2022 Budget Amendments GOAL AREA OBJECTIVE: High-Value City Services 1. Establish financial stability for all funds. RECOMMENDED ACTION: The purpose of this agenda item is to consider budget amendments for the General Fund, EDA Fund, Equipment Replacement Fund, and Park Equipment Replacement Fund. The primary purpose is to carry forward the funding and expenditures associated with certain uncompleted projects to 2022 when the expenditures will be incurred and to adjust a budget where costs are now known. Staff is recommending the carry forward of expenditures and funding in the amount of $746,100 for 2022. Staff is also recommending a 2021 budget amendment of $32,170 for expenditures for the Assistant Fire Chief position which was hired in September 2021. BACKGROUND: The 2021 budgets were adopted on December 7, 2020. Some of the items contained in that document were not completed in 2021 and must therefore be moved to the 2022 budgets so they can be completed with the original funding allocation. These amendments do NOT increase or decrease the tax levy for either 2021 or 2022 2021 Budget Amendment: Fire Department: In 2022, the city hired an Assistant Fire Chief to assist the Fire Chief with expanding duties and responsibilities including administration, training, and fire inspection duties. The Assistant Fire Chief was hired in September 2021. This position was funded from General Fund reserves. A budget amendment of $32,170 is needed to reflect the 2021 expenditures. 2022 Budget Amendments: General Fund IT Department: A 2022 budget amendment of $6,000 is needed for IT audio/visual contract costs. This is for regular maintenance and block time for updates of the council chambers equipment to televise the council meetings. Emergency Management Department: A budget amendment of $13,000 is needed for the following items: • $8,000 for emergency siren maintenance costs. Supply line issues caused delays in some equipment being delivered on time. The Work will be done in 2022 when the equipment is delivered to the city. Item 5D Page | 2 • $5,000 for training. The police department had various training that was put off due to the pandemic and 2021 was a training “catch up” year. Time didn’t allow for completion of the 2021 EM training so it will be carried forward to 2022. Police Department: There were many supplies and equipment that the police department ordered in 2021 but have not received due to global supply chain issues. A budget amendment of $115,000 is needed to carryforward the expenditure and funding for these items to 2022. Specific account information is detailed below: Central Garage department: The 2022 fuel budget for unleaded gas and diesel fuel is $2.35/gallon and $2.22/gallon, respectively. Fuel costs are rising due to political and economic conditions. 2022 fuel costs for unleaded gas and diesel fuel are $2.72/gallon (16% increase) and 2.86/gallon (29% increase)respectively. It is expected that fuel costs will continue to rise throughout 2022. Based on these current prices the fuel budget needs to be adjusted by a minimum of $40,000. Staff is recommending a budget amendment to the 2022 fuel budget of $43,800 due to these unanticipated increases. In 2021, the city underspent the fuel budget and had a savings of $43,800 which is proposed to be used to amend the budget for 2022. The 2021 fuel savings were achieved due to less fuel usage related to fewer snow events and plowing/snow removal needs. Streets and Parks department: Staff was not able to complete sidewalk maintenance at the police department and on Willow Lane. A budget amendment for Streets of $79,390 and for Parks of $17,612 is needed to carryforward the expenditures to 2022. EDA Fund The city has $3,300 of professional services costs remaining on the contract with Bolton & Menk totaling $17,000 for the platting work for the City Hall/Beard Group site. We were not able to complete this work in 2021, so staff is requesting a budget amendment to carry forward $3,300 to 2022 as an expenditure in the EDA Special Revenue Fund. Equipment Replacement Fund A Fire pumper truck was budgeted in 2021. Only the chassis has been received and paid for during 2021. A 2021 budget amendment is needed to carry forward the expenditure and funding in the amount of $430,000 for the remainder of the Fire truck cost to be paid in 2022 upon completion of the truck build-out. Park Equipment Replacement Fund Account Amount Reason Uniforms and Protective Equipment 18,000 Items not available due to global supply issues. Equipment 33,000 Items not available due to global supply issues. Professional Services 6,000 2022 health and wellness contract adjustments for 2022 Tech Telecom iequipment 11,000 Delayed tech purchases due to supply line issues Training 27,000 Supply chain issues with bullets, 40mm rounds for training PD kitchen remodel 17,000 Supply chain and work flow issues delayed this project in 2021 Office Furniture 3,000 This project was delayed due to supply line delays 115,000 Item 5D Page | 3 RES21-096 approved a Lakefront Park renovation study. A portion of the study was completed in 2021, the remaining work will be completed in 2022. A 2022 budget amendment is needed to carry forward the expenditure and funding in the amount of $38,000. FINANCIAL IMPACT: To accurately reflect expenditures and funding on the financial reports and for year ending 12/31/2021, the budget should be amended as follows: ALTERNATIVES: 1. Approve a resolution approving amendment to the 2021 and 2022 budgets. 2. Remove this item from the consent agenda for additional discussion. ATTACHMENTS: 1. Resolution - Consider Resolution Approving Amendments to the 2021 and 2022 Budgets Fund- Expenditures 2022 Budget Amendment General Fund $ 274,800 EDA Fund $ 3,300 Equipment Replacement Fund 430,000 Revolving Park Equipment Fund 38,000 Totals $ 746,100 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 22- Amendments to the 2021 and 2022 Budgets Motion By: Second By: WHEREAS, WHEREAS, WHEREAS, WHEREAS, The 2021 and 2022 budgets were adopted on December 07, 2020, and December 06, 2021, respectively: and The 2021 budgets do not reflect expenditures for the following item: General Fund: 1. Fire department personnel expenditures of $32,170. The Assistant Fire Chief position was hired in September 2021. This position was funded from General Fund reserves. The 2022 budgets do not reflect expenditures for the following items: General Fund: 1. IT department professional services of $6,000 for the regular maintenance and updates of the council chambers equipment to televise the council meetings. 2. Emergency Management department expenditures of $13,000 for emergency siren maintenance costs and training. 3. Police department expenditures of $115,000. There were many supplies and equipment that the police department ordered in 2021 but have not received due to global supply chain issues. 4. Central Garage department: Increase fuel budget by $43,800 due to the unanticipated increase in global fuel prices. 5. Streets and Parks department: Staff was not able to complete sidewalk maintenance at the police department and on Willow Lane. A budget amendment for Streets of $79,390 and for Parks of $17,610 is needed to carryforward the expenditures to 2022. EDA Fund: The 2022 portion of $3,300 for professional services costs remaining on the contract with Bolton & Menk for the platting work for the City Hall/Beard Group site. Equipment Replacement Fund: Fire department fire truck expenditure of $430,000 for the remainder of the Fire truck cost to be paid in 2022 upon completion of the truck build-out. Park Equipment Replacement Fund: The 2022 portion of $38,000 for the Lakefront Park renovation study. The services were not performed or goods received in 2021 as the projects were not completed in 2021. Therefore, the expenditure budget will be carried forward to the 2022 budget. C:\Users\aschroeder\AppData\Local\Temp\Resolution - Consider Resolution Approving Amendments to the 2021 and 202_647526\Resolution - Consider Resolution Approving Amendments to the 2021.docx 2 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 2021 and 2022 Budgets are amended to reflect the expenditures as noted above. 3. Funding will be provided by the respective Fund reserves. Passed and adopted by the Prior Lake City Council this 21st day of March 2022. VOTE Briggs Thompson Burkart Braid Churchill Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, City Manager Fund- Expenditures 2021 Budget Amendment General Fund $ 32,170 Fund- Expenditures 2022 Budget Amendment General Fund $ 274,800 EDA Fund $ 3,300 Equipment Replacement Fund 430,000 Revolving Park Equipment Fund 38,000 Totals $ 746,100