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2014.03.04 Work Session Packet (1st)4141 Douglas Drive North • Crystal, Minnesota 55422-1696 CITY of Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov CRYSTAL Posted: February 28, 2014 CRYSTAL CITY COUNCIL FIRST WORK SESSION AGENDA Tuesday, March 4, 2014 6:30 p.m. Conference Room A Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the first work session of the Crystal City Council was held at p.m. on Tuesday, March 4, 2014 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota. I. Attendance Council members Staff Adams Norris Budziszewski Therres Deshler Hansen Hoffmann Revering Libby Peak Selton Serres II. Agenda The purpose of the first work session is to discuss the following agenda item: ■ Amending the 2013 budget III. Adjournment The work session adjourned at p.m. Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. Memorandum `CRYSTAL DATE: February 27, 2014 TO: Mayor and Council Anne Norris, City Manager FROM: Charles Hansen, Finance Director SUBJECT: Discuss Resolutions Amending the Final 2013 Budget. Background: Each year it is necessary to amend the budget after year end. We have reached the point where all 2013 invoices have been recorded. While the revenues and expenditures are not final, we must make any amendments so that the Finance Department can proceed with preparations for the annual audit. Two resolutions are on the March 4t" consent agenda to make the amendments. Discussion: Please refer to the two resolutions as the materials for discussion. This year's amendments are typical of the amendments that we see at the end of any year. Operating departments will over or under spend their budgets. Over spending is usually the result of some unanticipated cost. Under spending is usually the result of employee turnover. Capital budgets usually change either because costs for a project came in higher than expected or because something unexpectedly breaks and needs fixing. In these cases projects that were included in the original budget may be deferred to provide money for the over budget or unexpected projects. General Fund Balance: As things stand, the General Fund has about a $350,000 surplus for 2013. Revenues that are over budget provide $255,000 of the surplus. Expenditures that are $97,000 under budget provide the rest. In past years, the City Council has sometimes approved a year-end transfer from the General Fund to one of the capital funds to prevent the fund balance of the General Fund from growing. If the Council wishes, it would be appropriate to make such a transfer this year. To do this, the City Council could pull the resolution including the General Fund from the consent agenda and move to amend it to include the transfer.