In previous years, City Council has formally adopted a revised current year budget with the adoption of the subsequent year’s annual budget.  This allowed us to acknowledge where the City was at in terms of budget and in one action resolve a large number of variances.  The attached proposed budget amendment is a fundamental shift from that approach and amends the budget for only significant variances.  This is the same approach as last year, and may leave several other line item variances (positive and negative) but allows the user of financial information  to better assess the actuals results in comparison to the budget.  The City will continue to inform the City Council of budget variances through it’s monthly financial reporting to City Council and individual City Council actions with budget implications such as acceptance of grants, contractual agreements and capital project approvals.  However, this action formally acknowledges the all budget amendments in one council action, which is more transparent and easier to follow.

City budget policy states “The City staff will monitor revenues and expenditures to adhere to their budgeted amounts.  Monthly reports comparing budget with revenues and expenditures will be prepared.  Line items within a division may be over spent as long as the total division budgets is not over spent”.  With the approval of this budget amendment, we do not anticipate any division total will exceed their 2021 budget appropriation.

Proposed budget amendments include:

1)  Coronavirus Fiscal Recovery Funds (ARPA).  Modify revenues for the federal grant and adjust expenditures for a cost of living adjustment, gateway signage, parklets, branding and entrepreneurship consulting, downtown electronic message board replacement, purchase of a sewer jetter, and security window film.

2) Recognition of  building permit revenues and related expenditures.

3) Graduate Engineer 

4) Communication Specialist

5) Recreation positions (conversion of part-time positions to full-time)

6) City clerk (HR electronic records project)

7) Public works staffing allocation and additional park costs

Each budget amendment has a reference to the council meeting date if previously approved by the City Council.  New items added to the listing of budget amendments include:

• An additional allocation of Federal Coronavirus Fiscal Recovery Funds in the amount of $72,025 that was received by the City on November 22, 2021.  The amount represents the State's re-distribution of un-requested local government funds.
• An allocation of budgeted wages to match where actual hours were worked within the public works division.  Staff recorded more hours in parks maintenance and less hours in streets and other public works divisions (no net impact after allocation). A budget amendment is also requested for additional water expenses related to drought conditions in the summer of 2021 and the addition of handicap accessible portable restrooms to all sites.  In total, public works remains below budget expectations.
• Purchase of security window film for city hall and police department campus.  This item is on the agenda as a separate council item for consideration.