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CR 11-091 Approve 2011 Budget Modifications to General Fund and Depot Special Revenue FundOctober 4, 2011 -Oca Council Report 2011-091 City of Hopkins APPROVE 2011 BUDGET MODIFICATIONS TO GENERAL FUND AND DEPOT SPECIAL REVENUE FUND Proposed Action Staff recommends adoption of the following: Move to approve 2011 budget modifications to the General Fund and Depot Coffee House Special Revenue Fund. Adoption of this motion will result in a modification to both the General Fund and Depot Coffee House Special Revenue Fund by providing for a $10,000 transfer from the General Fund to the Depot Fund and increasing the General Fund revenue and expenditure budgets by $1,740 for a Fire Department grant received for the Sparky costume. The General Fund revenue and expenditure budget will then total $10,301,067. The total Depot budget will not change. Overview A significant portion of the Depot budget is income from external Foundations. In past years the Depot has been very successful at obtaining several grants per year that funds the Depot Resource Coordinator position and teen programs. In 2011 the Foundations have been economically challenged and have not been able to meet all funding requests. Grants that were awarded in past years have not been renewed or have been reduced. This has been an added challenge for the Depot Teen Center that annually depends on approximately 30% of their funding from grants. To replace those dollars the teens have stepped up fund raising increasing events where a cover charge is collected and have increased revenues from their events. The Depot board has been very conscious of costs and has worked hard to reduce expenditures. One of their cost saving measures was to reduce the paid hours of the Depot Teen Coordinator position from 40 hours per week to 30. After discussing the benefits the Depot Teen program brings to our community general consensus was to return this position to full time. Although the Depot was recently awarded a $10,000 grant they will fall short of their funding needs for 2011. Since the General Fund currently funds programs for youth through the joint recreation program and for seniors through the Activity Center, funding for teen programming would be an appropriate use of General Fund dollars. Therefore staff is proposing that $10,000 be transferred from the General Fund to the Depot Fund for purposes of funding operations of teen programming. Primary Issues to Consider • Status of the General Fund • Grant challenges of the Depot Fund Staff Recommendation Finance recommends approving the aforementioned budget adjustments detailed on the following page. Supporting Information • 2011 General Fund Budget • 2011 Depot Special Revenue Fund Budget •Christine Harkess, CPA, CGFM Finance Director Financial Impact: $ 1,740 Budget Y/N: N Source: Grant funds Related Documents (CIP, ERP, etc):_ 2011 Budget Notes: 0 Additional Information Adding a $10,000 transfer from the General Fund to the Depot Coffee House Special Revenue Fund will not increase either budget but rather adjust specific line items. The $10,000 transfer from the General Fund will reduce the contingency budget and increase transfers out. The $10,000 transfer in the Depot Fund will increase transfers in and reduce grant income. Because this is a policy change from past years we would like official council action on this budget change. The Fire Department was awarded a grant from FM Global Foundation for $1,740 for a Sparky costume. Neither the income nor the expense was budgeted; therefore we are requesting an increase in the General Fund revenues and expenditures of $1,740. The net effect is zero but does increase both the revenues and expenditures to $10,301,067. A comparison of the General Fund and Depot Fund original budgets and modified budgets is found on the next page. Also included in this packet are the original budgets showing budget to actual through September 2011. • 0 GENERAL FUND 2011 2011 Miscellaneous Original Modified • Budget Budget Changes REVENUES 451,670 - Property Taxes $ 8,630,564 $ 8,630,564 $ - Intergovernmental Revenue & Grants 442,070 443,810 1,740 Licenses, Permits & Fines 515,290 515,290 - Charges for Service 194,200 194,200 - Miscellaneous Revenue 21,400 21,400 - Franchise Fees 290,000 290,000 - Interest Earnings 75,000 75,000 - Use of 2009 Budget Reserves 130,803 130,803 - Total Revenues $ 10,299,327 $ 10,301,067 $ 1,740 EXPENDITURES 900 900 - Miscellaneous City Council $ 71,547 $ 71,547 $ - Administrative Services 451,670 451,670 - Finance 203,243 203,243 - Legal 135,000 135,000 - Municipal Building 294,818 294,818 - Receptionist 44,172 44,172 - Assessing 167,236 167,236 - City Clerk 99,415 99,415 - Inspections 616,607 616,607 - Police 4,484,387 4,484,387 - Fire 838,258 839,998 1,740 Public Works 2,174,400 2,174,400 - Recreation 199,721 199,721 • Activity Center 333,471 333,471 Planning & Zoning 125,182 125,182 - Tuition Reimbursement 10,200 10,200 - Contingency 50,000 40,000 (10,000) Transfer Out - 10,000 10,000 Total Expenditures $ 10,299,327 $ 10,301,067 $ 1,740 Net Incr (Decr) in Fund Balance DEPOT SPECIAL REVENUE FUND REVENUES Intergovernmental Revenue School District Lease (levy for lease) Foundation/Corporate Grants 2011 2011 Original Modified Budget Budget Changes $ 10,000 $ 10,000 $ - 50,000 50,000 - 45,000 35,000 (10,000) Interest Earned 900 900 - Miscellaneous 10,000 10,000 - Contributions & Donations 7,000 7,000 - Transfer In - 10,000 10,000 Total Revenues 122,900 122,900 - EXPENDITURES Personnel Expenses $ 85,806 $ 85,806 $ - Material, Supplies & Services 37,061 37,061 - Capital Outlay - - - Total Expenditures $ 122,867 $ 122,867 $ Net Incr (Decr) in Fund Balance $ 33 $ 33 $ • • 0 LO r u E a) a) U) 0) J (na Z Z Q r Y JN CL Q L O M F- O Q m O a ~ co U w W 0 O m 0 Z LL QJ w Z W (9 S o r ; O N d (fl a� rn a) O c � C LO O N p Q-' o2f v> N 'p O a) N a) (H X N 06 U i N c a) O N C 0) O p _ Q h p H cn N () v- CP O W c (L 'O c C N -C � L a) v C Z C> a) N > 0 >O oc Q) a) — N O U (` N O a) w N r 6q V a) C cu (6 (0 to Q X O V) `n c U -a Y W _1 U @ LL C D c C: a = O C > a0i tl. m w Q� O ~ c O > �o U ;D D1 C 7 a), N a) U) 7 .0 EO cn - a aCO Nv> mp C a a) O p- >, L 3 C c > U >+L_ ` N r-` O Q a) O U a) CO O C Vy 00 -aof.� �'w U O 0 D c" E a p ac) - p' Co O —Q. 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U) O X O V) �_ Co_c� O W _1 U @ LL C D F- W U Q .� ami aUi LL J 2 �' Q o UE m a0i tl. m w Q� O ~ d (fl • C: 0 DEPOT COFFEE HOUSE CODE PROGRAM 44700 REVENUES 344 State Grants 356 County Grant 370 Interest Earned 380 Rental 383 School District Lease (levy for lease) 400 Charges for services 401 Cover Charge 437 Merchandise Sales 440 Contributions 442 Donations 443 Foundation/Corporate Grants 449 Miscellaneous TOTALREVENLIES EXPENDITURES Salaries and Employee Benefits 500 Regular Employees 503 Part -Time Employees 524 SL Converted/LTD 525 P.E.R.A. Contribution 526 F.I.C.A. Contribution 527 Employee Benefit Plan 531 Workers Compensation 535 Paid Leave Accrual TOTAL REVENUE AND EXPENDITURE DETAIL 9/30/2011 Actual Actual Actual 2009 2010 2011 $ - $ 4,500 $ - 785 44 (17) 2,626 1,064 300 50,000 50,000 25,000 - - 2,174 7,565 9,293 8,814 588 144 108 2,410 2,375 1,000 495 360 1,107 20,000 20,000 20,000 1,003 920 - 85,473 88,700 58,486 Budget 2011 $ 10,000 900 2,000 50,000 7,000 1,000 2,000 5,000 45,000 122,900 FUND 219 Percent of Budget 0.00% -1.89% 15.00% 50.00% 125.91% 10.80% 50.00% 22.14% 44.44% 47.59% 37,548 39,397 29,748 41,797 71.17% 19,195 17,940 12,248 25,000 48.99% 138 145 116 329 35.18% 3,513 3,790 2,738 4,843 56.54% 4,317 4,281 2,987 5,110 58.45% 6,956 7,378 6,046 7,764 77.87% 332 334 178 441 40.29% 2,180 490 392 522 75.00% 74,179 73,754 54,451 85,806 63.46% Materials, Supplies and Services, cont. 540 Office Supplies 542 General Supplies 543 Equipment Parts 545 Parts and Other Improvements 550 Minor Equipment 554 Merchandise for Resale 560 Postage 563 Maint & Repair-Equipment/Vehicles 568 Printing 576 Sustainability Project 580 Audit 581 Advertising and Publication 582 Expert & Professional Services 583 Other Contractual Services 584 Telephone - Local 586 Telephone - Cellular 588 Legal Services 602 Heating Fuel - Gas 604 Electricity 605 Disposal Charges 810 541 577 400 144.35% 1,468 582 399 700 56.94% 114 34 - 500 0.00% 212 86 - 500 0.00% 1,234 267 77 1,000 7.72% 770 - 750 500 150.00% 37 170 15 300 4.98% 2,417 4,264 2,623 3,000 87.44% - 389 - 500 0.00% 125 129 - 6,000 0.00% 250 250 250 250 100.00% 3,030 556 - 2,000 0.00% 1,413 - - 500 0.00% 8,283 7,581 977 3,000 32.56% 1,393 1,410 692 1,500 46.16% 360 360 210 360 58.33% - - 119 - -- 1,211 1,092 960 2,000 48.02% 6,242 6,476 211 1,000 21.12% 820 1,184 - 900 0.00% Fund Balance December 31, 9 36,618 21,665 9,600 as of 9/30/11 CODE PROGRAM 44700 Actual 2009 Actual 2010 9/30/2011 Actual 2011 Budget 2011 Percent of Budget EXPENDITURES, (cont.) Materials, Supplies and Services, cont. 611 Equipment Rental - - - 500 0.00% 624 Equipment Charges 199 197 126 167 75.18% 630 Training 394 - - 600 0.00% 632 Depot Board Approved Expenses 5,640 5,370 2,106 7,000 30.08% 633 Dues and Memberships 75 222 226 200 112.91% 635 Travel/Mileage 375 70 92 400 22.95% 636 Conference Fees - 250 - - -- 637 Meals and Lodging 850 173 - 500 0.00% 639 Subscriptions and publications - - - 50 0.00% 652 General Liability 519 469 343 457 74.99% 653 Property Insurance 1,328 1,266 1,025 1,667 61.50% 654 Volunteer Insurance 725 604 532 610 87.15% 665 Miscellaneous Other Charges - - - - -- TOTAL 40,292 33,993 12,309 37,061 33.21% Capital Outlay 730 Improvements - Other than Bldgs. 5,908 - - - -- 750 Office Equipment & Furnishings 3,651 - - - -- 790 Other Equipment 5,906 - - - -- 15,466 - - - -- EXPENDITURE TOTAL $ 129,936 $ 107,747 $ 66,761 $ 122,867 54.34% • NET OPERATING REVENUE $ (44,463) $ (19,047) $ (8,275) $ 33 Fund Balance December 31, 9 36,618 21,665 9,600 as of 9/30/11