9.c) Staff Report - Budget AmendmentsIBM
Staff Report
Date of Meeting: November 17, 2015
To: City Council
From: Colleen Firkus, Treasurer
Re: 2015 Budget Amendments
Background:
Several events during the year have caused significant changes to the budget in several departments. A
new contract deputy reduced expenses in Police; the Fire Department received large donations from the
Lions Club and Fire Relief for the purchase of a LUCAS device, and they had a large repair expenditure
for their pumper truck. The Public Works department will exceed several line items due to equipment
needs determined by the newly hired Public Works Director and a larger than anticipated Workers
Comp Insurance Premium. There was also a large transfer of money from the General Fund to the Local
Road Improvement Fund (LRIF) through the Public Works Department to use the Quinnell CD money
on that street's repair project. There are funds available in the budget for these line items in each of the
departments. In order for the city to stay within budget on line items and present a good budget for
auditing purposes, it is recommended to amend the budget at this time.
Issue:
Should the Council amend the 2015 budgets for the Police, Fire and Public Works departments to keep
line items within budget?
Proposal Details: (see attached worksheets)
The Police Expense Budget of $120,679 is proposed to be amended to $110,795 to reflect actual
contract deputy costs. This will increase fund reserves by $9,884.
The Fire Department Expense Budget is proposed to be increased by $10,856. Specifically, to increase
Printed Forms & Papers (203) from $500 to $691 for report forms, decals and identity labels; Medical
Supplies (209) from $1,250 to $1,869 to cover increased costs due to loss of ambulance supplies;
Building Maintenance (401) from $2,000 to $3,000 to cover the cost of pressure washer maintenance;
Machinery & Equipment Repair (404) from $10,000 to $20,000 to cover pumper repair costs; and
Capital Improvements (530) to cover the cost of purchasing the LUCAS device for $14,417.
The Fire Department Revenue Budget is proposed to be increased by $10,856. This reflects the donation
of $6,000 from the Lions Club and $6,618.83 from the Fire Relief which Council accepted by resolution
in September. It also reflects an increase in Grants (33422) from $2,000 to $2,500 from a Rural Fire
Grant, and a decrease in Fire Protection Services (34202) from $$34,511 to $32,248 due to the new
three-year May Township fire services contract.
The Public Works Expense Budget is proposed to increase $125,173; the amount set aside in the
General Fund for repairs to Quinnell Avenue. This money needs to be transferred from the General Fund
to the LRIF where the Quinnell project expenses occurred. Other items proposed to be increased will
have a net effect of zero due to funds available in the Personnel Services area: Workers Comp Insurance
Premium (151) to increase from $11,758 to $20,589; Operating Supplies (210) from $11,000 to $12,000;
Tires (222) from $1,000 to $4,000; Building Repair (223) from $1,000 to $5,000; and Operating
Transfers (720) from $210,759 to $335,932.
The Public Works Revenue Budget is proposed to be increased by $19,378. Specifically, Gravel Taxes
(31701) from $21,802 to $37,500 due to a miscalculation by the county in a previous year; Other City
Permits (32190) from $1,000 to $3,850 due to reallocating driveway and grading permits from Planning
to Public Works where inspection expenditures occur; and Dust Control (34303) from $1,350 to $1,730.
Fiscal Impact:
The savings in the Police Department of $9,884 and increase in the revenue of the Public Works
department of $19,378 will increase reserves in the General Fund by those amounts. The General Fund
cash will decrease by $125,173 due to the transfer between the General Fund (101) and LRIF (408).
Options:
1) Adopt proposed changes to the 2015 Budget.
2) Do not adopt changes to the 2015 Budget.
Recommendation:
Option 1. In order for the city to stay within budget on line items and present a good budget for auditing
purposes, it is recommended to amend the 2015 budget.