11 Budget ModificationCITYOF
C P SEI
City Center Drive, PO Box 147
Minnesota 55317
Phone 612.937.1900
General Iax 612.93Z5739
~ ?ax 612.937.9152
, Fax 612. 934.2524
chanhassen, mn. us
MEMORANDUM
TO:
FROM:
Mayor
City Council
Bruce M. DeJong, Finance Director
DATE: May 9, 2001
SUBJECT: 2001 Budget Modification Recommendations
We have discussed how to deal with the gap between the 2001 revenues and
expenditures on-several occasions, so this item is intended to ratify the major
points of agreement.
The purpose of this memo is to finalize adjustments to'the 2001 General Fund
budget. This is necessary in order to prepare for debt issuance and to clarify
budget authority for the affected department directors.
Since we last talked in February,. I have updated the dollar amounts to reflect
staff's current estimates of both revenue enhancement and expenditure reductions.
I have eliminated issuing equipment certificates for 2000 purchases since there is
minimal benefit to issuing debt for the previous year's expenditures. I believe
that issuing certificates for all the Capital Improvement Program (CIP) equipment
this year is prudent given the likelihood of levy limits for at least the next two
years. I also eliminated the newsletter cut, since there seemed to be no consensus
to do that at the last discussion.
The revenue side is larger than projected, even after removing of bonding for the
2000 computer purchases. We conservatively estimated the value of the Wrase
property using one dollar per square foot, but Todd Gerhardt is in negotiations to
sell the property for $2.35 per foot for an automobile service facility.
The seal-coating for 2001 is estimated to be significantly lower than shown in the
budget at $160,000. This is the amount I have included in the bonding proposal,
but the actual expenditure reduction could be $195,000 which would leave a net
amount of $40,000 that Teresa Burgess mentions for drainage changes in
attached memo.
Recommendation
City staff recommends that the City Council approve the budget modifications as
shown in the attached recommendations for 2001.
'e Ci~. of Chanhassen. A ~rowing community with clean lakes, quality schools, a charming downtown, thriving businesses, and beautiful/~arks. A ~eat /dace to live, work, and ola~.
2001 Possible Budget Strategies
City of Chanhassen
Updated 05/09/2001
Revenue Enhancement
Record Hennepin County TIF District excess increment in General Fund*
Sell Wrase property
Total Revenue Enhancement
256,222.34
133,950.00
390,172.34
Expenditure Reductions
Move sealcoating from Engineering to CIP
Move 2001 computer purchases to CIP and issue equipment certificates
Delete new MIS position
Cut election temporary salaries
160,000.00
78,000.00
48,000.00 '.
3,000.00
Total Expenditure Reductions
289,000.00
Grand Total
679,172.34
* Recorded as 2000 Revenue according to Generally Accepted Accounting Principles (GAAP)
Dejong, Bruce
From:
Sent:
To:
Cc:
Subject:
Burgess, Teresa
Wednesday, May 02, 2001 8:12 AM
Dejong, Bruce
Bement, Bill; Burgess, Teresa; Gerhardt, Todd
Sealcoat Money
Bruce,
Bill and ! have discussed the sealcoat project and the street drainage projects. We are estimating approximately $200,000
combined ($160,000 for sealcoating and $40,000 for drainage projects prepping for next years mill and overlay projects.).
We will work with Lori to see if any of the projects fall into the SWMP funds and also try to find ways to economize (ie. in
house design, using existing City forces instead of contracting, etc.)
Let me know if you have any questions.
Teresa
2001 Possible Budget Strategies
City of Chanhassen
02/26/01
Revenue Enhancement
Record Hennepin County TIF District excess increment in General Fund*
Issue equipment certificates for 2000 computer purchases
Sell Wrase property
256,222.34
72,000.00
65,000.00
Total Revenue Enhancement
393,222.34
Expenditure Reductions
Move sealcoating from Engineering to CIP
Move 2001 computer purchases to CIP and issue equipment certificates
Delete new MIS position
Cut election temporary salaries
Cut newsletter or State of the City brochure
Total Expenditure Reductions
Grand Total
* Recorded as 2000 Revenue according to Generally Accepted Accounting Principles (GAAP)
235,000.00
78,OOO.OO
48,0OO.O0
3,000.00
?
364,000.00
757,222.34