9.3. SR 12-20-1993 - Laserfiche WebLink

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rei -\) ( )j fl~ ITEM 9.3. TO: MAYOR & CITY COUNCIL FROM: LORI JOHNSON, FINANCE DIRECTOR DATE: DECEMBER 16, 1993 SUBJECT: 1993 BUDGET AMENDMENTS Each December, as part of the annual budget process, the City Council is asked to approve budget amendments. The budget amendments are intended to reflect significant changes in revenues and to acknowledge and include any expenditures not included in the original budget which were approved by the Council throughout the year. Budget amendments also offer the opportunity for the Council to increase expenditures if increased revenues are available. Budget amendments are not intended to reflect actual revenues or expenditures, but, as I stated earlier, to acknowledge significant changes in the budget. e Budget Amendment detail is attached for your review. General Fund revenues for 1993 will exceed the 1993 budgeted level of $3,006,400. The majority of this increase is due to increased building and development activity. The City Council has the option of increasing 1993 expenditures for items such as stockpiling operating supplies including salt/sand, street materials, street signs, office supplies, and other general supplies. These increases in expenditures can be offset by increased revenues. The amendments as presented will be discussed in detail at the Council meeting prior to adoption. Finally, it is also important that the General Fund cash flow reserve balance continue to increase in order to keep pace with the increased budget proposed for the upcoming year. It is recommended that the fund balance be maintained at a level equivalent to 35% of the upcoming year's operating budget. The General Fund balance on December, 1992, was approximately 27% of the 1993 budget. In order to maintain the 27% level, the cash flow reserve balance would need to increase $100,000 in 1993. e P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425