CR 2004-025 Budget Carryovers, Additions, Adjustments and Actual TransfersCITY pF I
February 17, 2004 N o P K i N s Council Report 04-025
• 2003 Budget Carryovers, Additions, Adjustments and Actual Transfers
Proposed Action
Staff recommends adoption of the following motion: Move to approve the recommended budget
adjustments in 2003, to carry over budgets into 2004 in order to complete projects on ig ~all~ bud eted
in 2003, to increase expenditure and revenue budgets for specific projects in 2003 and to transfer
$150,000 in excess revenues over expenditures from the general fund to the capital project fund.
Adoption of this motion will result in the adjustment of the 2003 budget to offset actual revenues and
expenditures, carry over budget into 2004 to complete projects budgeted in 2003 and execute the
transfer of funds. The various budget allocations, carryovers, additions and transfers are described in
the attachment.
Overview
The preliminary 2003 year-end figures conclude that the general fund budget is currently under
budgeted expenditures by approximately $500,000 and that revenues exceed expenditures by about
$600,000. The City of Hopkins Charter states that the city council may authorize the transfer of sums
from unexpended balances to other purposes.
Primary Issues to Consider
'• Actual general fund expenditures are under budget by approximately $500,000.
• Purchases made in the various departments were authorized purchases.
• Authorization to transfer budget is an in-house cleaning item that is being done to follow,
city charter and to facilitate accurate year-end reporting.
Recommendation
Finance recommends reallocating the 2003 budget to actual expenditure item, carry over requested
amounts from the 2003 budget into the 2004 budget to complete planned projects, increase 2003
budgets for specific purposes and to transfer $150,000 of the excess revenues over expenditures into
the capital project fund for future infrastructure or capital improvements.
SEE ATTACHMENT FOR BUDGET CHANGES AND AFFECTS.
Supporting Information
Detail Budget Reallocations and Carryovers
Sectio 7.06 and 7. from City Charter
~~
Lori K. Yager
Finance Director
Council Report 02-033
Page 2
Requested budget carryovers, reallocations, additions and transfers
Preliminary results of year-end operations conclude that the general fund budget is under projected
expenses by approximately $500,000. This authorizes the city to carryover unspent budget amounts
from 2003 into 2004 to complete specific projects that, for various reasons, were not completed in
2003.
Carryovers Requested
^ $6,000 from the Council budget for GASB 34 audit costs.
^ $11,500 from the Municipal building budget for security system costs.
^ $4,746 from the Police budget for DUI forfeiture revenues received in ,2003.
^ $4,000 from the Police budget for radar units not purchased in 2003.
^ $3,700 from the Police budget to purchase a server rack in 2004.
^ $2,150 from the Police budget to purchase a duplex printer.
^ $3,500 from the Activity Center budget for the purchase of a three computers. (Activity Center
receives donations from seniors for computers).
;~
^ $3,000 from the Activity Center Maintenance budget for kitchen replacements.
^ $2,800 from the Public Works Equipment Service budget for welder and vehicle maintenance
software.
^ $5,000 from the Public Works Snow budget for the purchase of alley plow and frame.
^ $1,000 from the Public Works Tree Service budget for tree service equipment.
^ $26,000 from the Parking fund for structural maintenance work on the ramp.
^ $20,000 from the Equipment replacement fund for computer upgrades not accomplished in 2003.
The above carryover requests will reduce the associated budgets in 2003 and increase the budget in
2004. The total amount of carryovers requested from the general fund are, $47,396. This leaves the
unspent general fund budget balance at approximately $300,000 after all adjustments, including the
transfer request.
Actual Transfer Requested
• $150,000 from the general fund contingency to the capital fund for future infrastructure or capital.
Council Report 02-033
Page 3
Budget Reallocations Requested
Reallocate $14,700 of the unallocated budget and $2,500of the council budget to the Fire budget to
cover major fire equipment maintenance.
The reallocations do not increase the cities overall general fund budget they merely reallocate the 2003
budget.
Additional budget needs
The Fire department received additional state aids for the relief association in the amount of $18,000.
This money is passed on directly to the association and requires a revenue and expenditure budget
adjustment in the general fund. The Fire department also received a federal grant for $24,000 for
additional training for terrorist threats. This also requires a revenue and expenditure budget adjustment
in 2003.
The State Chemical Assessment Team fund received $1,440 in reimbursement for attendance at the
terror symposium and requires a revenue and expenditure budget adjustment for $1,440 in special
revenue fund 203.
The Economic Development fund received a Met Council pass through grant in the amount of
$415,891 for clean up of the old tech center on the east end. A revenue and expenditure budget
adjustment is required for this.
The Housing Rehabilitation fund paid the balance from the 1999 bond issue to Valley Park
Condominiums. A budget adjustment in the amount of the payment is required, $38,022.
The Section 8 fund incurred expenditures for additional staff time and a single audit. The budget
adjustment needed is $15,000. Additional federal revenues were received to cover these costs.
Tax increment district 1-1 (Downtown) requires a budget adjustment of $31,000 for the additional debt
service payment made in 2003. Additional revenues were received to offset this cost.
Tax increment fund district 2-7 (Thermotech) requires a budget adjustment of $26,000 for the
reimbursement to Thermotech for 2002 and 2003 for pay as you go payments that were not paid. The
increased expenditures are covered by reserves in the fund.
Tax increment fund district 2-9 (Oaks of Mainstreet) requires a budget adjustment of $1,000 for
charges from Hennepin County for distribution. Increased tax increment revenues cover this expense.
Tax increment fund district 2-10 (Hopkins Business Park) requires a budget adjustment of $20,000 for
increased pay-as-you-go note payments. Increased tax increment revenues cover this expense.
Areas of Savings in 2003
Salaries
PERA and FICA
Medical
Travel and Training
Supplies
Sand and Gravel
Miscellaneous
;~ Capital
General Fund Savings
Amount
$107, 000
$17,000
$18,000
$33,000
$20,000
$21,000
$19,000
$90,000
$325,000
Page 1
•
AMENDED Explanations for General Fund Budget Transfer Requests 2003
Maintenance on Fire engine
Offset against unallocated equipment account
Offset against council miscellaneous account
Old fire engine needed major maintenance this year to avoid purchasing new one.
Amount
$17,200
($14,700)
($2,500)
Explanations for General Fund Transfer Requests 2003
•
General fund contingency
Capital Project fund
($150,000).
$150,000
n
Revenues exceeded expenditures in the general fund by approximately $600,000. City
Council discussed possibility of transferring needed funds to capital project fund for future
infrastructure and capital improvements.
Page 1
•
Explanations for Increased Budget Requests 2003
General Fund -Fire federal grants
General Fund -Fire relief association additional grant
State Chemical Assessment Team additional grant
Metropolitan Council pass thru clean up grant
Distribution of Valley Park Condominium bond proceeds
Additional Section 8 revenues and expenditures
• Tax Increment 1-1 - inceased debt service payment
Tax Increment 2-7 -reimbursed project costs to PIR fund
Tax Increment 2-9 -expense from Hennepin Co. for distribution
Tax Increment 2-10 -Pay-as-you-go note (2002 and 2003)
•
Amount
$24,000
$18,000
$1,440
$415,891
$38,022
$15,000
$31,000
$26,000
$1,000
$20,000
Page 1
4'
GENERAL FUND
REVEN UES
Original Approved Requested Revised (UNDER)
Budget Budget Budget Budget Actual OVER
2003 Adjustments Adjustments 2003 2003 BUDGET
TAXES
Property Taxes $ 5,438,523 $ (296,571) $ - $ 5,141,952 $ 5,138,700 $ (3,252)
Delinquent Property Taxes 22,000 - - 22,000 51,555 "29,555
Fiscal Disparities 740,729 - - 740,729 703,261 (37,468)
TOTAL 6,201,252 (296,571) - 5,904,681 5,893,516 (11,165)
LICENSES AND PERMITS
Business Licenses 129,430 - - 129,430 125,469 (3,961)
Non-Business 336,100 30,000 - 366,100 514,097 147,997
TOTAL 465,530 30,000 - 495,530 639,566 144,036
FINES AND FORFEITS
Court Fines and forfeitures 130,000 - - 130,000 134,164 4,164
INTERGOVERNMENTAL REVENUE
Local Government Aid 1,103,510 (731,022) - 372,488 399,357 26,869
Market Value Credit relief - 296,571 ' - 296,571 296,571 -
PERA Aid 20,510 - - 20,510 20,510 -
State Aid -Highway Maint. 15,450 100,000 - 115,450 116,208 758
Insurance Premium Tax -Police 140,300 - - 140,300 150,644 10,344
Insurance Premium Tax -Fire 60,585 - 18,000 78,585 79,403. 818
State -Other 8,100 4,500 - 12,600 16,058 3,458
Federal Grant 6,500 - 24,000 30,500 28,175 (2,325)
E - 911 11,250 11,250 11,753 503
Civil Defense P. & A. Reimb. 3,500 - - 3,500 326 (3,174)
TOTAL 1,369,705 (329,951) 42,000 1,081,754 1,119,005 37,251
REVENUE FROM USE OF MONEY AND PROPERTY
Interest Earned 160,615 - - 160,615 115,084 (45,531)
CHARGES FOR CURRENT SERVICES
General Government $ 2,400 $ - $ - $ 2,400 $ 4,704 2,304
Public Safety 37,500 - - 37,500 56,177 18,677
Public Works 28,140 - - 28,140 10,682 (17,458)
Recreation 63,400 63,400 78,228 14,828
Community Development 74,400 - - 74,400 184,433 110,033
TOTAL 205,840 - - 205,840 334,224 128,384
OTHER REVENUE
Contributions 1,000 - - 1,000 290 (710)
Miscellaneous 3,364 - - 3,364 - (3,364)
TOTAL 4,364 - - 4,364 290 (4,074)
OTHER NON REVENUE
Other - - - - 393 393
TOTAL REVENUES $ 8,537,306 $ (596,522) $ 42,000 $ 7,982,784 $ 8,236,242 253,458
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