Agenda - Council - 06/12/2018 - Laserfiche WebLink

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General Fund Budgetary Highlights The city does not formally amend its original budget during the calendar year except for extraordinary circumstances. Budget to actual reports are reported monthly to City Council and responsible staff. The difference between the final expenditure budget and actual was a net decrease of $634,987 and can be summarized as follows: • $213,997 savings for personnel costs budgeted for, but not expensed due to police officer on leave and more personnel costs accounted for in the Proprietary Funds of Water, Sewer and Storm Water Utility. • $120,097 savings for amounts unspent on supplies such as gasoline and salt. Reduction due to current market prices versus history trends and weather. • $185,150 savings attributed to several budgeted line items related to services and charges that came in lower than expected. Final budget numbers are based on past history and expected needs. • $115,743 savings in capital costs related to three-year funding for Anoka County radio system. Funds were held in the Equipment Revolving Fund for this purchase. Overall fund balance increased by $395,225 to an ending fund balance of $7,912,618. The city's ending fund balance increase of $395,255 is determined by its fund balance policy which for year ending 2017 is summarized as follows: • $497,263 increase based on 50% increase in next years adopted budget • $72,459 increase in compensated absences liability • $174,497 decrease in prior year encumbrances related to 3-year radio funding. Tax Increment Fund — This Special Revenue Fund had a prior period adjustment to fund balance of ($500,000) due to an internal loan from the Public Improvement Revolving Fund that had not been previously recorded. After taking into consideration the prior period adjustment, the fund had a year-end fund balance of $4,633,143 which reflects a $135,930 increase from 2016. The increase was due to additional property tax increments received for the current year. COR Land Fund — This Special Revenue Fund had a year-end fund balance of $8,629,937. The increase of $92,236 is attributed to a soil escrow reimbursement from McDonalds and from the gain on sale of land that the City sold in the COR area. 2012A G.O. Improvement Bond Refund Fund — This Debt Service Fund had a year-end fund balance of $734,418 with current year tax levies and investment earnings exceeding debt service expenditures. 2011A Armstrong/Bunker Bond Fund — This Debt Service Fund had a year-end fund balance of $997,504. The increase of $602,838 is attributed to the prepayment of special assessments on the former Legacy School project and will be used to pay off future debt service. Public Improvement Revolving Fund — This Capital Project Fund had a prior period adjustment to fund balance of $500,000 due to an internal loan to Tax Increment District #8 that had not been previously recorded. The ending fund balance, excluding the prior period adjustment, saw a decrease of $44,303 which was attributed to highway 10 consulting expenditures. Landfill Fund — This Capital Project Fund showed an overall increase in fund balance of $29,043, which is attributable to annual interest earnings. This fund was originally established to account for certain landfill - related revenue and the expenditures the City may incur in relation to the landfill. The landfill is now closed and per state statute, funds may be used for expenditures related to improvements that provide a benefit to the entire city. 34