HomeMy WebLinkAbout15.A.2. 2005 Budget Adjustments
10--: A.1
CITY OF SHAKO PEE
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: 2005 Budget Adjustments
DATE: April 15, 2005
Introduction
Due the apparent cut in state aid for 2005, various budget adjustments
are presented for Council consideration.
Background
It appears that the state will completely cut the Market
Value/homestead credit for 2005 in the amount of $545,000. Following
are some possible budget adjustments to offset the cut.
L) Increase Engineering revenues due to the amount of
development occurring in 2005 - $400,000.
2. ) Utilize fund balance from under spending the 2004 budget -
($600,000 est. under spent) .
3. ) Reductions from unfilled positions or delayed hiring -
$122,000.
4. ) Increase enterprise fund charges - $ Currently the
enterprise funds are charged for direct labor and benefits for
time actually worked by General Fund employees ($140,200
budgeted) . Additionally, $53,000 is charged (budgeted) for
indirect items. Some equipment is shared back and forth between
the General Fund and the enterprise'funds. Fuel is charged to
the enterprise funds for equipment assigned to those funds.
Parts and the shop rate for labor are charged to the enterprise
funds for repairs on the assigned equipment. Building rent on
the current building is $30,000 and 20% thereof is $6,000 which
is not being separately split out to the enterprise funds.
Recommendation
Given the increased Engineering revenues from 2005 development and the
probable timing of open positions being filled, the state aid cut is
roughly balanced. All the positions in the budget are needed and have
been through the budget process for justification.
The $400,000 in Engineering revenues, the $20,000 reduction in Imaging
and the $122,000 in unfilled positions to date offsets of the 2005
state aid cut. The situation for 2006 will need to be resolved through
the 2006 budget process once the legislature takes action in Mayor
June.
Action
Move to direct staff to prepare a resolution amending the 2005 General
Fund budget by increasing revenues $400,000 and reducing expenditures
by $142,000.
/C4,J
Gregg Voxland
Finance Director
I,\budget05
2005 Budget Reductions
Planning
Planner I position 1/3 year 19,838 50,095 budgeted
GIS position 1/2 year 24,000 40,000 budgeted
Police
1 position 1/2 year delayed 2005 30,000
1 position 1/2 year delayed 2005 30,000
Recreation
Natural Resource 1/3 year 18,000 45,744 Budgeted
Clerk
Imaging 20,000
Engineering revenue 400,000
541,838
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