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HomeMy WebLinkAboutVIII-15 2024 Budget Amendments - Facilities City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Chris Eitemiller, Finance Manager Date: January 6, 2025 Item: 2024 Facilities Budget Amendments Council Action Requested: Staff requests Council approval to create 2024 budget adjustments for Facilities projects. The first expense is to replace the primary hot water pump in the Police Department. The other is to bring the City Hall/Police Building renovation project’s 2024 budget in line with actual expenditures. Background Information: The first increase is for repair and maintenance of the Police Department Building. The primary hot water pump needs replaced. Between parts and labor, total cost is expected to be approximately $3,800. Staff requests a budget increase of $3,900 to ensure enough authority for this cost. General Fund reserves will be the funding source for this cost. The City Hall/Police Department renovation project has made considerable progress in 2024. Due to delays in recent years, it was unknown what would be a reasonable budget for 2024. Because of this, combined with the fact that all expenses in 2024 would be paid from either a State of MN grant, or the federal ARPA allocation, it was decided to do a budget amendment after the total expenses were known for 2024. As part of the 2024 audit, the appropriate amounts of each grant will be recognized as part of the City’s 2024 financial statements. Staff requests to increase Facilities’ spending budget for this project by a total of $2,237,437. Of this, $1,862,732 will be funded from the State grant, and $374,705 will be funded from the ARPA allocation. Financial Impact: The hot water pump will use $3,900 of general fund reserves, whereas $2,237,437 grant allocations will fund the City Hall/Police Building renovation project changes. Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: N/A VIII-15