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HomeMy WebLinkAbout05(C) - Resolution Approving 2024 Budget AmendmentsCity of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372 CITY COUNCIL AGENDA REPORT ITEM: 5C MEETING DATE: March 26, 2024 PREPARED BY: Cathy Erickson, Finance Director PRESENTED BY: Cathy Erickson AGENDA ITEM: Resolution Approving 2024 Budget Amendments RECOMMENDED ACTION: The purpose of this agenda item is to consider budget amendments for the General Fund, Equipment Replacement Fund, Facilities Management Fund and Sewer Fund. The primary purpose is to carry forward the funding and expenditures associated with certain uncompleted projects to 2024 when the expenditures will be incurred and to adjust a budget where costs are now known. Staff are recommending the carry forward of expenditures and funding in the amount of $1,154,340 for 2024. Staff are also recommending a transfer into the General Fund of $20,000 from the Public Safety state aid one-time funding for the LUCAS Fire Department equipment approved by the council in RES-24-013. BACKGROUND: The 2023 budget was adopted on December 5, 2022. Some of the items contained in that document were not completed in 2023 and must therefore be moved to the 2024 budgets so they can be completed with the original funding allocation. These amendments do NOT increase or decrease the tax levy for either 2023 or 2024. The funding source for the budget amendments is fund reserves of the respective fund. See the budget amendment detail table shown below. FINANCIAL IMPACT: To accurately reflect expenditures and funding on the financial reports and for year ending 12/31/2024, the budget should be amended as follows: Fund- Expenditures 2024 Budget Amendment General Fund $230,840 Equipment Replacement Fund 604,500 Facilities Mgmt. Fund 225,000 Sewer Fund 94,000 Totals $ 1,154,340 Item 5C Page | 2 Fund Name Dept Account Description Amount General Fund Streets Various Reclassify 2023 payroll to the correct departments based on promotion/hire info after budget was completed. Net impact on the budget is zero. 1) Public Works supervisor promotion/shift in responsibilities from Parks only to 50/50 Streets and Parks (Greg S.) and 2) Allocation of Public Works Supervisor between Parks and Recreation (50/50 for Steve Hart.). Net impact on the budget is zero. Simply reclassifying payroll to the correct departments. 66,803 General Fund Parks Various (7,872) General Fund Recreation Various (58,931) General Fund Streets Maint Agreements -General Carry forward for necessary maintenance as the work was not able to be completed in 2023. 90,000 General Fund Parks Maint Agreements Trails/ Sidewalks Carry forward for necessary sidewalk maintenance as the work was not able to be completed in 2023. Staffing transitions in 2023 led to less contracted work being scheduled and completed. 40,000 General fund Finance Training and Employee Development Carry forward budget for Finance and HR financial system training for new staff (Cassie/Melissa/Angela) 6,000 General fund City Clerk Membership s and Subscription s Carry forward funding for municode work budgeted in 2023. Project will be completed in 2024 and invoiced upon completion. 4,000 General fund Information Technolog y Small Equipment - Technology Carry forward budget for City Hall first floor printer 7,423 General fund Police Small Equipment - General Carry forward budget for squad/vehicle purchases/equipment to outfit new vehicles. One of which was ordered more than a year ago and has still not arrived. 18,000 General fund Police Machinery and Equipment Carry forward budget for technology projects and equipment that was delayed until 2024 and will be needed as identified by the IT department. 42,900 Fund Name Dept Account Description Amount Item 5C Page | 3 General fund Police Training and Employee Development Carry forward for special events and new Commander training 2,500 General fund Fire Machinery and Equipment Resolution 24-013 approved the purchase of the LUCAS device. A budget amendment for the General Fund equipment expenditure and transfer into the General Fund is needed to fund this with the Public Safety state aid one-time funding. 20,017 General Fund Subtotal 230,840 Equipment Replacement Police Vehicles Carry forward for Drug Taskforce vehicle #7298 which has been ordered, but not yet received. 40,000 Equipment Replacement Fire Vehicles Carry forward for vehicles #9215 and 9271. Ordered in 2023 and vehicle delivery and receipt of related equipment in Spring 2024. 173,000 Equipment Replacement Building Inspection Vehicles Carry forward for vehicles #6397 Ford F150. Ordered in 2023 and vehicle delivery expected late 2024. 44,000 Equipment Replacement Parks Vehicles Carry forward for vehicles 8543,8545 and 8549. Ordered in 2023 and vehicle delivery/place in service expected in 2024. 347,500 Equipment Replacement Fund Subtotal 604,500 Facilities Mgmt. Facilities - City hall Building & Building Improvement s Carry forward for wall coverings/building improvements 70,000 Facilities Mgmt. Police Building & Building Improvement s Carry forward overhead folding door and carpet budget as not able to complete work in 2023. 100,000 Facilities Mgmt. Library Building & Building Improvement s Carry forward budget as not able to complete work in 2023. 125,000 Facilities Mgmt. Fund Subtotal 225,000 Sewer Sewer Telecommun ications Carry forward budget for 800mhz radios not used. 27,000 Fund Name Dept Account Description Amount Item 5C Page | 4 Sewer Sewer Maint Agreements Sewer Collection Carry forward budget for contracted sewer televising that was not completed due to staff resources and transitions. 67,000 Sewer Fund Subtotal 94,000 Budget carryforward request total - all funds 1,154,340 ALTERNATIVES: 1.Approve a resolution approving amendment to the 2024 budgets. 2.Remove this item from the consent agenda for additional discussion. ATTACHMENTS: 1. Resolution - Resolution Approving 2024 Budget Amendments 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 24- APPROVING 2024 BUDGET AMENDMENTS Motion By: Second By: WHEREAS, the 2024 budgets were adopted on December 04, 2023; and WHEREAS, the 2024 budgets do not reflect expenditures and funding of $1,154,340 for the carryforward of projects/items that could not be completed due to timing constraints, staffing issues, and supply chain issues. The services were not performed or goods received in 2023 as the projects were not completed in 2023. Therefore, the expenditure budget will be carried forward to the 2024 budgets by fund as detailed in the agenda report. 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.A 2024 transfer into the General Fund of $20,000 from the Public Safety state aid one- time funding (F270) for the LUCAS Fire Department equipment approved by the council in RES-24-013. 3.The 2023 Payroll Budgets are amended as noted in the agenda report table (reclassification between General Fund departments only) and 2024 budgets are amended to reflect the expenditures as noted above. . 4.Funding will be provided by the respective Fund reserves. Passed and adopted by the Prior Lake City Council this 26th day of March 2024. VOTE Briggs Thompson Burkart Braid Churchill Aye ☐☐☐☐☐ Nay ☐☐☐☐☐ Abstain ☐☐☐☐☐ Absent ☐☐☐☐☐ ______________________________ Jason Wedel, City Manager Fund- Expenditures 2023 Budget Amendment General Fund $230,840 Equipment Replacement Fund 604,500 Facilities Mgmt. Fund 225,000 Sewer Fund 94,000 Totals $ 1,154,340