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<br /> <br />City of Elk River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Date <br />Administration December 18, 2006 <br />Item Description <br />Consider 2006 Bud et Amendments <br /> <br />Item Number <br />7.2. <br /> <br />Prepared by <br />Lori ohnson, Ci Administrator <br />Reviewed by <br /> <br />Introduction <br />Budget amendments are presented to the City Council each December in accordance with the city's <br />Financial Management Plan. Sections 6.3 and 6.3.1 of the Financial Management Plan regarding budget <br />amendments are reprinted below for your reference. <br /> <br />6.3 The budget shall be adjusted as needed to recognize <br />significant deviations from original budget expectations. <br />The Council shall consider budget amendments each <br />December. Budget amendments are intended to <br />recognize changes made by the Council during the year, <br />to reflect major revenue and expenditure deviations <br />from budgeted amounts, and to consider year-end <br />budget requests. Budget amendments are not intended <br />to create a budget that matches budgeted revenues and <br />expenditures to actual revenues and expenditures. <br /> <br />6.3.1 Administrative budget amendments may be made <br />throughout the year by Department Heads to adjust <br />line item budgets within their department as long as <br />the total departmental budget does not change. <br />These line item budget changes exclude personal <br />service and capital ouday categories. Administrative <br />budget amendments must be requested in writing and <br />approved by the City Administrator and Finance <br />Director. <br /> <br />Discussion <br />During the course of the year, the City Council approves expenditures for items which were not included <br />in the adopted budget. Some of these expenditures are authorized to be taken out of the Council <br />Contingency budget. In addition, department heads make administrative adjustments as allowed by the <br />Financial Management Plan. Both of these are incorporated into the year end budget amendments <br />presented to the Council for approval. <br /> <br />Further, at year end department heads may make requests for addition expenditures or for changes in the <br />way their department's existing budget allocations are spent. There are four such requests this year. First, <br />Police Chief Jeff Beahen is requesting $18,000 to seal the concrete floor in the police garage to stop <br /> <br />s: \ Council\Lori\2006\Budget Amendments.doc <br />