CR 91-43 Contingency Transfers
1 Y 0
\
V -"
. ~
"r '"
o P K \ '" .f.s
February 14, 1991 Council Report #91-~
APPROVE 1991 CONTINGENCY TRANSFERS
Proposed Action.
Staff recommends adoption of the following motion: Move that
Resolution 91-20 "Approvinq 1990 continqency Transfers" be adopted.
Annually it is requested the City make a transfer of budgets for
unanticipated expenditure decisions from the contingency account to
the departments where the need arose. For 1990 a transfer of $62,000
would be needed.
Also, a temporary transfer of $1,500,000 from the General Fund to the
P.I.R. Fund to cover cash needs for remedial landfill action is
recommended.
Overview.
I have made a detailed review and projection of all departments
. through December, 1990. Explanation of each requested transfer is
contained on the attached detailed background report.
primary Issues to Consider.
0 The transfers are an orderly annual reallocation of budgets
without increasing the authorized total budget for the General
Fund.
0 Recording expense by the department which incurred the increase
rather than directly to the contingency account allows for more
meaningful cost history.
0 There is sufficient idle cash in Special Revenue Funds to carry
the General Fund cash flow needs on a short term basis.
Supportinq Information.
0 Resolution #91-20
!,1~
Schedler, Finance Director
.
.
Approve 1990 Contingency Transfers
Report 91-34
Page 2
Detailed Background.
1- 40415 Health & Welfare - $1,700
The health inspector found it necessary to spend additional hours
to accomplish City needs.
2 . 40420 city Manager - $2,300
The need for additional hours by the intern to cover projects
exceeded estimate.
3 . 41XXX Police - $38,800
Needed overtime $22,400
Boarding Prisoners $ 6,100
Legal Fees (Personnel issues) $10,300
4. 41400 community Development - $19,200
. This department's original 1990 budget was cut $20,600 for the
mid 1990 LGA cut. The director's job was vacant when the cuts
were assigned. However, a director was hired sooner than
anticipated. Additionally, an extended illness required the
-' hiring of temporary help. Also added were one-half of the cost
for a sound mask systen and unforeseen testing services.
5. The request to make a $1,500,000 transfer from the General Fund
to the P.I.R. Fund would cover the temporary cash needs to pay
the contractor and legal costs for the landfill remedial action.
Project 49-18 was established in the P. 1. R. Fund to accumulate
all remedial action costs - legal, testing, contractors, etc. By
the end of 1990, $199,643 had already been expended and large
expenditures are anticipated early in 1991. By accumulating all
costs under one project, a good audit trail will be provided when
funding from sources outside of the city needs to be
substantiated.
As outside funding is received, the temporary cash needs coverage
will be returned to the General Fund.
There will also be a side benefit to this procedure in that the
fund balance of the General Fund will be lowered at the time of a
state financial crisis. During this critical period, the
. legislature will be reviewing all local governments General Fund
balances when determining how much aid the state would share with
the local governments.
Several sources of funding to replace the temporary transfer are
being explored.
- ~ - -
.
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 91-20
RESOLUTION APPROVING 1990 CONTINGENCY TRANSFERS
WHEREAS, the Hopkins city Council includes a contingency appropriation
within the annual operating budget to cover unanticipated
expenditures, and,
WHEREAS, the City Council and City Manager make numerous expenditure i
decisions during each year that exceed line item appropriations, I
and, I
WHEREAS, the city council has determined that it is appropriate to
provide for major unanticipated expenditures by transferring
funds from the contingency account to the expenditure accounts
that were exceeded, and,
. WHEREAS, a temporary cash need for remedial landfill action exists for
Project 90-18 in the P.I.R. Fund, then,
NOW THEREFORE BE IT RESOLVED, that the following transfers be adopted:
Additions to following budgets:
1. 40415 Health & Welfare $ 1,700
2. 40420 City Manager $ 2,300
3. 41XXX Police $38,800
4. 41400 Community Development $19.200
$62,000
Transfer to budgets for above departments to come from the
contingency budget which has a sufficient balance to cover these
transfers.
Transfer $1,500,000 on a temporary basis from the General Fund to
the P.I.R. Fund.
Passed and adopted by the City Council of the city of Hopkins,
Minnesota at a regular meeting held the 19th day of February, 1991.
. By
Nelson W. Berg, Mayor
ATTEST:
City Clerk
...... _ L, ~. --. ----