9.e Budget Amendment
Staff Report
Date of Meeting: June 16, 2016
To: City Council
From: Neil Soltis, Administrator
Re: Budget reallocation for data security improvements
Background: The 2016 Council budget included $8,000 for the cost of providing an audio system for the
Council Chambers. At the April Council meeting, the Council elected not to proceed with the purchase
and installation of the audio system. After a site visit by League of Minnesota City Insurance Trust
representatives, a report on data security was issued with one of the recommendations being moving the
City Hall router to a more secure location. Currently the router and other digital communication
equipment are located in the mechanical room which is accessible to the public and which contains the
water softener for the community building. A proposal from a vendor has been received to install a rack
and move the voice and data connections into the storage room adjacent to the Council Chambers for
approximately $6,000.
Issue: Should the funds budgeted for the audio system be reallocated for the relocation of the router
and digital communication equipment?
Proposal Details: The resolution would reduce the budgeted expenditures for the Council by $8,000
and increase the budgeted expenditures for the Community Building by $8,000. The relocation of the
equipment is the only recommendation from the League Insurance Trust that is not policy related and
will require an outlay of funds. The proposal that was obtains can be utilized as the basis for a 2017
budget request; however, reallocating the funds will allow for the correction to be done on a more
timely basis. Before proceeding with the relocation at least one more proposal will be obtained and
brought before the Council for review.
Fiscal Impact: There would be an outlay of funds; however, the expenditure would be within the total
general fund expenditures budget for 2016.
Options:
1. Approve the resolution for the budget amendment
2. Take no action at this time.
Recommendation: Option 1. Given the general data security concerns raised by the Insurance Trust,
this improvement will show a good faith effort to address their recommendations.
CITY OF SCANDIA
RESOLUTION NO.: 06-21-16-05
RESOLUTION AMENDING 2016 GENERAL FUND BUDGET
WHEREAS, the City of Scandia 2016 Budget was adopted on December 15, 2015 and
WHEREAS, the City Council has determined that the funds budgeted for an audio system for the
Council Chambers should not be utilized for that purpose; and
WHEREAS, the City Council has determined that those funds would be better utilized for the
implementation of the data security recommendation of the League of Minnesota Cities Insurance Trust
to relocate the data and telephone demarcation points to a secured location;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SCANDIA, WASHINGTON COUNTY, MINNESOTA, that it should and hereby does
amend the 2016 Budget as follows:
Department Account
Adopted
Budget
Amended
Budget Difference
41110 City Council 570
Office
Equipment $8,000 $0 -$8,000
45180 Community Center 570
Office
Equipment $0 $8,000 $8,000
Net Budget Change, $0
Adopted by the Scandia City Council this 21th day of June, 2016.
________________________________
Randall Simonson, Mayor
ATTEST:
___________________________________
Neil Soltis, Administrator/ Clerk