7.9. SR 12-17-2007 - Laserfiche WebLink

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~/ City of Elk -.-^ River REQUEST FOR ACTION To ~ Item Number Ci Council 7.9. Agenda Section Meeting Date Prepared by Administration December 17, 2007 Tim Simon, Finance Director Item Description Reviewed by Consider 2007 Budget Amendments Reviewed by Action Requested The City Council is asked to consider the budget amendments as stated in the proposed 2007 budget amendments attachment. Background/Discussion Budget amendments are presented to the City Council each December in accordance with the City's Financial Management Plan. Sections 6.3 and 6.3.1 of the Financial Management Plan regarding budget amendments are reprinted below for your reference. 6.3 The budget shall be adjusted as needed to recognize significant deviations from original budget expectations. The Council shall consider budget amendments each December. Budget amendments are intended to recognize changes made by the Council during the year, to reflect major revenue and expenditure deviations from budgeted amounts, and to consider year-end budget requests. Budget amendments are not intended to create a budget that matches budgeted revenues and expenditures to actual revenues and expenditures. 6.3.1 Administrative budget amendments may be made throughout the year by Department Heads to adjust line item budgets within their department as long as the total departmental budget does not change. These line item budget changes exclude personal service and capital outlay categories. Administrative budget amendments must be requested in writing and approved by the City Administrator and Finance Director. During the course of the year, the City Council approves items which are not included in the adopted budget. Some of the expenditures are authorized to be taken out of the Council Contingency budget. Also during the course of the year, a grant may be received or another revenue source identified in which case both the revenues and expenditures are approved. Department heads make administrative adjustments as allowed by the financial management plan. All of these items are incorporated into the year end budget amendments presented to the Council for approval. There are only two significant changes to the 2007 expenditure budget, both of which can be reallocated from Council Contingency. The first amendment is to increase insurance line item in the building department due to the builders' lawsuit. The first invoice was received late in 2006, which did not allow enough time to amend the origina12007 budget. The second amendment is for Police overtime fox a number of items including amounts that are reimbursed from the State Crime Prevention Grant. S:\Council\Tim\2007 Budget Amendments.doc