CR 2003-037 2002 Budget Carryovers, Additions and Adjustments
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February 14,2003
HOPKINS
Council Report 03-037
2002 Budget Carryovers, Additions and Adjustments
Proposed Action
Staff recommends adoption of the following motion: Move to approve the recommended budget
adjustments in 2002, to carryover budgets into 2003 in order to complete projects originally budgeted
in 2002 and to increase expenditure and revenue budgets for specific projects in 2002 and 2003.
Adoption of this motion will result in the adjustment of the 2002 budget to offset actual costs and CatTY
over budget into 2003 to complete projects budgeted in 2002 and to increase the contingency budget
available in 2003. The various budget allocations, carryovers and additions are described in the
attachment.
Overview
The preliminary 2002 year-end figures conclude that the general fund budget is currently under
budgeted expenditures by approximately $370,000 and that revenues exceed expenditures by about
$190,000. The City of Hopkins Chmter 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 $370,000.
. 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 repOlting.
Recommendation
Finance recommends reallocating the 2002 budget to actual expenditure item, carryover requested
amounts from the 2002 budget into the 2003 budget to complete planned projects and to add budgets
for specific purposes.
I SEE ATTACHMENT FOR BUDGET CHANGES AND AFFECt'S.
Supportine Information
Detail Budget Reallocations and Carryovers
Section 7.06 and 7.07 from City Charter
Lori K. Yager
Finance Director
FINANCIAL IMP ACTS - see attached schedules
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Requested budget carryovers, reallocations and additions
Council Report 02-033
Page 2
Preliminary results of year-end operations conclude that the general fund budget is under projected
expenses by approximately $360,000. This authorizes the city to canyover unspent budget amounts
from 2002 into 2003 to complete specific projects that for various reasons, were not completed in
2002.
Carrvovers Requested
· $50,000 from the Contingency budget to be used in 2003 to offset any unforeseen contingency
expenditures in 2003.
· $11,500 from the Municipal building budget for city hall security system.
· $8,000 from the Municipal building budget for heating cost increases.
· $20,000 from the 2002 Emergency Preparedness budget for siren replacement.
· $8,600 from the Police budget for unifonns allowance in 2003.
· $7,000 from the Police budget for unspent grant money received in 2002 for specific purposes.
· $2,250 from the Police budget for a donation received in 2002 for the police reserves to purchase
pagers in 2003.
· $15,000 from the Activity Center budget for the purchase of a three computers and a copier for the
Activity Center, (Activity Center receives donations from seniors for computers).
· $11,000 from the Public Works budget for the purchase of snow & ice removal equipment.
· $8,000 from the Public Works budget for additional sand and gravel costs in 2003.
· $600 from the Public Works budget for tree service equipment.
· $40,000 from the Economic Development fund for the final costs associated with the Market Place
Lofts development.
The above CatTyover requests will reduce the associated budgets in 2002 and increase the budget in
2003. The total amount of carryovers requested from the general fund are, $141,950. This leaves the
unspent general fund budget balance at approximately $230,000 after all adjustments.
Bud2et Reallocations Requested
· Reallocate $5,000 of the contingency budget to the Finance budget to cover pay equity results.
The reallocations do not increase the cities overall general fund budget they merely reallocate the 2002
budget.
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Council Rep0l1 02-033
Page 3
Additional budget needs
The Police department received a federal grant in the amount of $109,875 for the purchase and
installation of the mobile data transmission system. This money was appropriated for that specific use
and requires a revenue and expenditure budget adjustment in the general fund.
The Fire department received additional state aids for the relief association in the amount of $6,303.
This money is passed on directly to the association and requires a revenue and expenditure budget
adjustment in the general fund.
The State Chemical Assessment Team fund spent additional grant dollars in the amount of $22,500 and
requires a revenue and expenditure budget adjustment for that amount in fund 203. It also incurred
additional expenses of $2,350, which is funded from reserves.
The Para Transit fund received additional grants in the amount of $15,077 and requires a revenue and
expenditure budget adjustment for that amount in fund 212.
The final costs for the replacement of the camera equipment in the council chambers was much higher
then anticipated. The council approved the purchase and a budget adjustment of $30,000 is required in
the Cable TV fund 217.
Tax increment district 1-1 (Downtown) requires a budget adjustment of $65,000 for the additional debt
service payment made in 2002.
Tax increment district 1-2 (Entertainment) requires a budget adjustment of $32,000 for a missed 2001
interest payment made in 2002 to the Economic Development fund.
Tax increment fund district 2-7 (Thelmotech) requires a budget adjustment of $48,611 for the
reimbursement to the PIR fund for its costs associated with the flood cleanup in the original project.
The increased expenditures are covered by reserves in the fund.
Tax increment fund district 2-8 (Diamond Labs) requires a budget adjustment of $5,400 for the
reimbursement to the general fund for its costs associated with the relocation of the Hopkins Little
League field in the original project. The increased ex.penditures are covered by reserves in the fund.
Tax increment fund dishict 2-9 (Oaks of Mainstreet) requires a budget adjustment of $1,000 for and
additional debt service transfer. Increased tax. increment revenues cover this expense.
Tax increment fund dishict 2-10 (Hopkins Business Park) requires a budget adjustment of $5,500 for a
pay-as-you-go note payment. Increased tax increment revenues cover this expense.
Attached is a detailed list of all the budget adjustments, calTyovers and additions.
GENERAL FUND
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FUND 101
2002 DEPARTMENTAL BUDGET SUMMARY
EXPENDITURES
2002 APPROVED REQUESTED NEW UNDER
ORIGINAL BUDGET BUDGET REVISED 2002 (OVER)
BUDGET TRANSFERS ADJUSTMENTS BUDGET ACTUAL BUDGET
City Council $ 108522 $ 5,000 $ - $ 113,522 $ 112,458 1,064
Administrative Services 388,7 33 388,733 387,940 793
Fi nance 148,903 5,000 153,903 153,413 490
Legal 122,950 122,950 110,925 12,025
Municipal Building 112,615 (19,500) 93.115 78,689 14,426
GENERAL GOVERNMENT 881,723 5,000 (14,500) 872,223 843,425 28,798
Police 3,384,887 129,875 (17,850) 3,496,912 3,472,531 24,381
Fire 593,018 16,302 (20,000) 589,320 584,7 16 4,604
PUBLIC SAFETY 3,977 ,905 146,177 (37,850) 4,086,232 4,057,247 28,985
Planning & Economic Dev. 95,826 10,000 105,826 87,302 18,524
COMMUNITY SERVICES 766,473 5,000 771,473 756,315 15,158
. PUBLIC WORKS 1,861.457 (19,600) 1,841,857 1,736,547 105,310
Activity Center 292,538 11,000 (15,000) 288,538 278,108 10,430
Park Operations 343,639 343,639 327,308 16,331
RECREATION 636,177 11,000 (15,000) 632.177 605,416 26,761
UN ALLOCATED 102,527 (55,000) 47,527 38,5 1 8 9,009
TOTAL OPERATING 8,322,088 177,177 (141,950) 8,357,315 8,124,770 232,545
OTHER FINANCING USES 24,500 24.500 24,500
TOT AL EXPENDITURES $ 8,346,588 $ 177,177 $ (141,950) $ 8.381,815 $ 8,149,270 232,545
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GENERAL FUND
REVENUES
. Original Approved Revised Preliminary (UNDER)
Budget Budget Budget Actual OVER
1002 Adjustments 2002 2001 BUDGET
TAXES
Property Taxes $ 5,408,411 $ $ 5,408,411 $ 5,089,907 $ (318,504)
Delinquent Property Taxes 22,000 22,000 20,307 (1,693 )
Fiscal Disparities 740,729 740,729 689,095 (51,634)
TOTAL 6,171,140 6,171,140 5,799,309 (371,831)
LICENSES AND PERMITS
Business Licenses 117,030 117,030 123,700 6,670
Non-Business 309,075 309,075 339,673 30,598
TOTAL 426,105 426,105 463,373 37,268
FINES AND FORFEITS
Court Fines 140,000 140,000 100,554 (39,446)
Forfeitures 14,800 14,800
INTERGOVERNMENTAL REVENUE
Local Government Aid 807 ,989 807,989 989,975 181,986
Market Yalue Credit relief 188,266 188,266
PERA Aid 20,510 20,510 20,5lO
State Aid - Highway Maint. 15,000 15,000 15,000
Insurance Premium Tax - Police 139,800 139,800 147,490 7,690
Insurance Premium Tax - Fire 58,710 6,303 65,013 65,013
State - Other 8,100 8,100 16,603 8,503
. Federal Grant 16,500 109,875 126,375 119,123 (7,252)
E-911 10,500 10,500 11,317 817
Civil Defense P. & A. Reimbursement 3,500 3,500 3,500
TOTAL 1.080,609 116,178 1,196,787 1.576,797 380,010
REVENUE FROM USE OF MONEY AND PROPERTY
Interest Earned 163,000 163,000 108,020 (54,980)
CHARGES FOR CURRENT SERVICES
General Government $ $ $ $ 2,915 2,915
Public Safety 35,100 35,100 44,970 9,870
Public Works 7,640 7,640 3,211 (4,429)
Recreation 70,100 70,100 58,206 (l1,894)
Community Development 116,778 116,778 168,378 51,600
TOTAL 229,618 229,618 277 ,680 48,062
OTHER REVENUE
Contributions 1,100 1,100 8,706 7,606
Miscellaneous 11,000 11,000 5,42t (5,579)
TOTAL 12,100 12,100 14,127 2,027
OTHER NON REVENUE
Sale of Fixed Assets 371 371
Other
TOTAL 371 371
.OTAL REVENUES $ 8,222,572 $ 116,178 $ 8,338,750 $ 8,340,231 1,481
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Areas of Savings in 2002
Travel and Training
Vacation and sick leave accruals
Warning siren not purchased
Civic Organizing Project
Records retention intern
Snow removal
Municipal building costs
Unspent grant money
Unspent contingency
Seal coating
Street lighting
General Fund Savings
Amount
$39,600
$36,000
$20,000
$5,000
$5,000
$71,500
$30,000
$10,900
$55,000
$9,000
$6,000
$288,000
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Explainations for General Fund Budget Transfer Requests 2002
Pay equity study
Offset against contingency account
Any other transfers are within departments and do not require council approval.
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Amount
$5,000
($5,000)
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Explainations for Carryover requested from 2002 to 2003
Amount
Unspent police grant proceeds $7,000
Warning siren $20,000
Activity Center computer and copier $15,000
Reserve pagers (donation) $2,250
Uniform allowance $8,600
Heating fuel and electric cost increases $8,000
Municipal bldg security $11,500
2003 Contingency budget adjustment $50,000
Snow & Ice removal equipment $11,000
. Sand & Gravel $8,000
Tree Service equipment $600
Total General Fund $141,950
Economic Development - Mkt PIc Lofts $40,000
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Explainations for Increased Budget Requests 2002
General Fund - Police MDT grant
General Fund - Fire relief association additional grant
State Chemical Assessment Team additional grant
State Chemical Assessment Team additional expense
Para Transit additional grant
Cable TV additional equipment
Tax Increment 1-1 - inceased debt service payment
. Tax Increment 1-2 - internal interest expense from 2001
Tax Increment 2-7 - reimbursed project costs to PIR fund
Tax Increment 2-8 - reimbursed project costs to General fund
Tax Increment 2-9 - additional debt service transfer
Tax Increment 2-10 - Pay-as-you-go note (2001)
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Amount
$109,875
$6,303
$22,500
$2,350
$15,077
$30,000
$65,000
$32,000
$48,611
$5,400
$1,000
$5,500
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Section 7.06. ENFORCEMENT OF THE BUDGET. Except as set forth in Section 7.16, the City
Manager or the City Council shall not approve any expenditure uncovered by the budget. The City
Council may approve expenditures uncovered by the budget if there is sufficient unexpended
balance left after deducting the total past expenditures and the sum of all outstanding bills, orders
and encumbrances. No employee of the City shall place any orders or make any purchases except
for the purpose and to the amounts authorized in the budget. Except as in this Chmiel' otherwise
provided, any obligations incun-ed by any person in the employ of the City for any purpose not
authorized in the budget or for any amount in excess of the amount therein authorized shall be a
personal obligation upon the person incurring the expenditure.
Section 7.07. ALTERATIONS IN THE BUDGET. Except as set forth in Section 7.16, after the
budget shall have been duly adopted, the Council shall not have power to increase the amounts
therein fixed, whether by the insertion of new items or otherwise, beyond the estimated revenues,
unless the actual receipts shall exceed such eshmates, and in that event not beyond such actual
receipts. The sums fixed in the budget are appropriated at the beginning of the fiscal year for the
several purposes named therein. The Council may reduce salaries or the sums appropriated for any
other purpose, or authorize the transfer of sums from unexpended balances to other purposes.
TAXES
Section 7.08. LEVY AND COLLECTION OF TAXES. On or before the last regular meeting in
December each year the Council shall levy the taxes necessary to meet the requirements of the
budget for the ensuing fiscal year. The City Manager shall transmit to the County Auditor annually
a statement of all the taxes levied, and such taxes shall be collected and the payment thereof be
enforced with and in like manner as State and County taxes. No tax shall be invalid by reason of
any informality in the manner of levying the same, nor because the amount levied shall exceed the
amount required to be raised for the special purpose for which the same is levied, but in that case the
surplus shall go into the fund to which such tax belongs.
Section 7.09. TAX SETTLEMENT WITH COUNTY TREASURER. The City Manager shall
asceliain that all monies in the County Treasury belonging to the City are properly transferred to the
City according to law.
DISBURSEMENTS
Section 7.10. DISBURSEMENTS. Disbursement of city funds shall be made by a negotiable
instrument bearing the actual or authorized facsimile signature of the authorized city officer. No
such negotiable instrument shall be issued until the claim to which it relates has been supP011ed by
an itemized bill, payroll, time-sheet, voucher or the like approved and signed by the responsible city
officer who vouches for its conectness and reasonableness. No check shall be issued until there is
money to the credit of the fund out of which it is to be paid sufficient to pay the same. The council
may by ordinance make further regulations for the safekeeping and disbursements of the funds of
the city.
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Amended Budget Carryover requested from 2002 to 2003
Unspent police grant proceeds
Warning siren
Activity Center computer and copier
Reserve pagers (donation)
Computer Infrastructure to connect police to city network
Refurbish partible police radio's not under county contract
Uniform allowance
Heating fuel and electric cost increases
Municipal bldg security
2003 Contingency budget adjustment
Snow & Ice removal equipment
Sand & Gravel
Tree Service equipment
Total General Fund
Economic Development - Mkt PIc Lofts
Page 1
Amount
$7,000
$20,000
$15,000
$2,250
$15,000
$2,000
$8,600
$8,000
$11,500
$50,000
$11,000
$8,000
$600
$158,950
$40,000
GENERAL FUND
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FUND 101
2002 DEPARTMENTAL BUDGET SUMMARY - AMENDED
EXPENDITURES
2002 APPROVED REQUESTED NEW UNDER
ORIGINAL BUDGET BUDGET REVISED 2002 (OVER)
BUDGET TRANSFERS ADJUSTMENTS BUDGET ACTUAL BUDGET
City Council $ 108,522 $ 5,000 $ $ 113,522 $ 112,458 1,064
Administrative Services 388,733 388,733 387,940 793
Finance 148,903 5,000 153,903 153,413 490
Legal 122,950 122,950 110,925 12,025
Municipal Building 112,615 (19,500) 93,115 78,689 14,426
GENERAL GOVERNMENT 881.723 5,000 (14,500) 872,223 843,425 28,798
Police 3,384,887 129,875 (34,850) 3,479,912 3,472,531 7,381
Fire 593,018 16,302 (20,000) 589,320 584,716 4,604
PUBLIC SAFETY 3,977,905 146,177 (54,850) 4,069,232 4,057,247 11,985
Planning & Economic Dev. 95,826 10,000 105,826 87,302 18,524
COMMUNITY SERVICES 766,473 5,000 771,473 756,315 15,158
. PUBLIC WORKS 1,861,457 (19,600) 1,841,857 1,7 36,547 105,310
Activity Center 292,538 11,000 (15,000) 288,538 278,108 10,430
Park Operations 343,639 343,639 327 ,308 16,331
RECREATION 636.177 11,000 (15,000) 632.177 605,416 26,761
UNALLOCATED 102,527 (55,000) 47,527 38,518 9.009
TOTAL OPERATING 8,322,088 177,177 (l58,950) 8,340,315 8,124,770 215,545
OTI-IER FINANCING USES 24,500 24,500 24.500
TOTAL EXPENDITURES $ 8,346,588 $ 177,177 $ (158,950) $ 8.364,815 $ 8,149,270 215,545
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