4.3. SR 12-22-1997 - Laserfiche WebLink

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~_ _.y of River TO: FROM: DATE: SUBJECT: MEMORANDUM Item #4.3. Mayor & City Council Lori Johnson, Asst. City Administrator/ Finance Director December 22, 1997 Budget Am endments On Monday the City Council will be asked to act on the 1997 budget amendments. Throughout the year the City Council approves unanticipated or new program expenditures which were not included in the adopted budget. Therefore, at year end budget amendments are approved in order to incorporate these previously approved expenditures into the budget. Also, significant variances in revenues and additional expenditure requests are included in the budget amendments. As you are aware, budget amendments are not intended to create a final budget which mimics actual year end revenues and expenditures; instead, budget amendments are a method of incorporating significant deviations from the adopted budget due to revenue variances and additional expenditures. Again this year, revenues will exceed expenditures due to the continued building and development activities which have generated revenues in excess of the adopted budget estimates. Because these revenues can fluctuate significantly due to the economy, real estate market conditions, and other factors, the adopted budget estimates tend to be conservative. This helps to decrease the reliance on unsure revenue sources. On the expenditure side, excluding additional Council approved expenditures, most departments are close to their adopted budget. Budget amendment details and estimated year end balances will be provided to the Council as a handout on Monday. However, ff you have questions prior to that time, please feel free to contact me. Action Requested The Council is asked to consider the 1997 budget amendments and encumbrances as stated in the handouts. s :\couneil\97b gtamd.doc 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 ° TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425