Res. #10-011 Amended 2010 Budget

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General Fund Budget Significant Revenue Amendments Property Tax: The City's property tax levy remains the same at roughly $1,727,600. That said, given the latest information and forecasts from the League of MN Cities the loss in market value homestead credit revenue was adjusted to $80,000 instead of $69,000. Special Assessments: were amended from $0 to $25,000. This line item represents assessments that belong to debt service funds that were closed out in late 2009. This revenue is now captured in the general fund. Property Rental: was amended from $0 to $7,750. This line item reflects revenue being received from the property rental at 1737 Main St. Operating Transfers: was amended from $99,500 to $0. This amendment is budget neutral as the same operating transfer on the expenditure side was reduced to $0 as well. Overall, budgeted revenues have decreased from $2,159,594 to 2,145,800. Significant Expenditure Amendments General Government: No significant amendments were made in this area. Overall, this budget classification was decreased from $553,655 to $548,080. I Public Safety: No significant amendments were made in this area. Overall, this budget classification was decreased from $1,090,251 to $1,069,250. Public Works: The City has amended this budget to reflect expenditures of $72,700 in relation to special projects involving County Road 14, Street Project 2009, and the Trai{ project. These increases are essentially budget neutral given they will be billed back to the appropriate construction funds at year end. Also note that this classification originally had $67,000 in street ' seal coating and crack fill, but staff recommends that $179,100 be allocated to this line item with the shortfall that this creates being paid from fund balance. This will be a point of discussion during your meeting. Overall, this classification's budget was increased from $380,111 to $555,900. Culture and Recreation: The City amended line items pertaining to this classification and has increased the budget slightly upwards from $15,883 to $19,350. Again, these increases were primarily attributable to these funds not being spent in 2009 and essentially are now being I carried over into 2010. Overall, budgeted expenditures increased from $2,159,594 to $2,225,730. Net tncome and Fund Balance The aggregate effect of these budget amendments is a net loss of ($79,930). Council has a targeted a fund balance reserve of 40 to 50% of current expenditures or a target between $890,292 to $1,112,865. 2010 began with a fund balance of $1,237,860 or 56% of current expenditures and at the end of the year is projected to be $1,157,930 or 52%.