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Home My WebLink AboutVIII-07 - Resolution 2018 Budget AmendmentsCityCouncilMemorandum To: MayorFasbender & CityCouncilmembers From: MelanieLammers, FinanceManager Date: February19, 2019 Item: 2018BudgetAmendmentandFinancialcleanup CouncilActionRequested: Councilisaskedtoapproveabudgetamendment, interfundtransfers, andwriteoffof AccountsReceivable. AllofthesewillhaveaneffectivedateofDecember31, 2018. BackgroundInformation: HydroPlant: ThefirstrequestisforabudgetamendmenttotheGeneralFundandHydrothplant. Wearerequestingtoforgothe4 quarterprofitsharingfromtheHydroplanttothe thGeneralfund ($119,602). Thegeneralfundhadastrongyearanddoesnotneedthe4 quarterprofitsharingfromtheHydroplant. TheHydroplantdidnothaveasgoodayear in2018asitstruggledwithbreakdownsandlowwaterlevels. Staffwouldliketokeep ththe4 quarterprofitintheHydrofundtohelpstabilizeitincaseoffutureeventsthatcan impactrevenueforthefund. Thegeneralfundrevenueforinvestments ($30,000), Police 26,601), andbuildingandinspections ($142,856), willbeincreasedtomakeapositive budgetadjustmentdespitetheremovaloftheHydroincome. ParksCapitalFund: Requestaneutralbudgetamendmentforthegrantreceivedfor playgroundequipment ($105,000), andthesameamountaddedtoexpense. CapitalConstructionAccounts: Requesttotransfertheresidualamountfromthe2015 capitalprojectfundtothe2016capitalprojectfund ($324,924). Themoneyisleftover fromgrantsfortheRiverfrontRenaissanceproject. TheprojectcostsfortheRiverfront projectwerespreadacrossseveralCapitalfunds, butthegrantdollarswereallputintothe 2015fund. Movingthemoneyfromthe2015Constructionfundwillallowustoclosethe 2015fund. CapitalConstructionAccounts: Movetheresidualamountfromthe2006G.O. Bonds 73,160) tothe2007G.O. Bonds (28,160), andthe2018Capitalprojectfund (45,000). Wemadeourlastbondpaymentforthe2006G.O. BondsinFebruaryof2018. The residualdollarswerepromisedforintersectionenhancementsin2018 (45,000). The balanceisgoingtothe2007fundtoensurethereisnotashortageforthelastdebt payment (28,160). VIII-07 AccountsReceivable: Duringarecentrevenuerecaptureauditconductedbythe MinnesotaDepartmentofRevenuewewereinformeddebtisonlylegallyabletobe collectedforaperiodofsixyears, unlessacourtorderisobtainedbeforetheendofthe sixthyeartoextendthecollectionperiod. Wehavenotbeenwritingoffdebtinthelast severalyearsthatbecomesuncollectible. Ambulance: Sincewehavenotwrittenoffuncollectabledebtintheambulancefundeach yearwehaveareceivableofapproximately $4,377,216onourbooks. Thesereceivables datebackto2000or18years. Sincewearenotlegallyallowedtopursuecollectionson debtmorethansixyearsold, werequesttowriteoffourdebtfrom2012andprior. This resultsinadecreaseofapproximately $1,422,202forboththereceivableandthe uncollectibleaccounts. Thiswillhavenofinancialimpactonourambulancefund. Ifa customeriscurrentlymakingpaymentsondebtfrom2000-2012, wewillleaveitonour booksandcontinuecollection. Theaveragecollectionrateforambulancebillingis approximately80%. Therearefactors, suchasMedicare/Medicaidcapsthatlimitour abilitytofullycollectambulancebillings. General: Wedonothavealotofgeneraldelinquentdebt. Thereiscurrently $18,245.33 ofDelinquentAccountsReceivablefrom2009to2012. Thisdebtisprimarilyfrom accidentsthatdamagedCityproperty, andthepartyhadnoinsurance. FireHydrant damage, streetsigndamage, accidentattheLockandDam, andLightpoledamagearea fewexamplesoftheitems. Thedollaramountsweretoolowforourinsurancetocover. Wearerequestingtowriteoffthe $18,245.33ofAccountsReceivableasofDecember31, 2108, asthesewerenotabletobecollectedthroughourcollectionagencybeforetheend ofthesixyearperiod. FinancialImpact: Thebudgetamendmentisneutralwiththeexceptionofthegeneralfundwhichgains 79,855inbudgetrevenue. Thetransferrequestswillallowfundstobeclosedthatare fromprioryearprojects. TheAccountsReceivablewriteoffwillcleanupour bookkeeping. AdvisoryCommissionDiscussion: None. CouncilCommitteeDiscussion: None. Attachments: 2018Budget/Transfer/Writeoff Resolution VIII-07 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION 02- -19 A RESOLUTION AMENDING THE 2018 BUDGET, AUTHORIZING TRANSFERS, AND AUTHORIZING ACCOUNT WRITE OFF WHEREAS, the Mayor and City Council adopted the 2018 budget on December 18, 2017; and WHEREAS, there is a need to amend the budget and transfer monies between funds; WHEREAS, there is also the need to write off uncollectible, delinquent accounts from the balance sheet for approximately $1,422,202 for Ambulance billings and $18,245 for General receivables; NOW THEREFORE LET IT BE RESOLVED THAT, the budget is amended as follows: Amended 11/18 Change Final 2018 budget General Fund Revenues by Major Category: Non-Departmental 8,068,959 - 8,068,959 Investments 28,000 30,000 58,000 City Clerk 101,285 101,285 Finance 60 - 60 Facility Management 30,880 - 30,880 Planning 18,500 - 18,500 I.T.10,000 - 10,000 Police 603,318 26,601 629,919 Building & Inspections 417,200 142,856 560,056 Safety 2,500 - 2,500 Public Works-engineering 315,000 - 315,000 Public Works-Streets 542,500 - 542,500 Public Works-Street Lights 8,500 - 8,500 Parks & Recreation 72,550 - 72,550 Miscellaneous 71,780 - 71,780 Transfers In 676,688 (119,602) 557,086 Total Revenues 10,967,720 79,855 11,047,575 VIII-07 Expenditures by Major Function: Council & Mayor 122,388 122,388 Adminstration 322,600 - 322,600 City Clerk 516,243 - 516,243 Finance 568,051 - 568,051 Legal 152,941 - 152,941 Facility Management 372,970 - 372,970 Planning 136,474 - 136,474 I.T.580,179 - 580,179 Police 4,861,662 - 4,861,662 Building & Inspections 535,398 - 535,398 Safety 2,700 - 2,700 Public Works-engineering 528,147 - 528,147 Public Works-Streets 1,403,367 - 1,403,367 Public Works-Street Lights 263,500 - 263,500 Parks & Recreation 119,900 - 119,900 Miscellaneous/Transfers Out 468,700 - 468,700 Total Expenditures 10,955,220 - 10,955,220 Revenues less Expenditures 12,500 79,855 92,355 VIII-07 Capital Project Funds Amended 11/18 Change Final 2018 budget Revenues: Parks Capital projects 105,000 105,000 210,000 2015 Improvements - - - 2016 Improvements - 324,924 324,924 2006 G.O Bonds - - - 2007 G.O. Bonds - 28,160 28,160 2018 Improvements - 45,000 45,000 Total Revenues 105,000 503,084 534,924 Expenditures: Parks Capital Projects 105,000 105,000 210,000 2015 Improvements - 324,924 324,924 2016 Improvements - - - 2006 G.O Bonds - 73,160 73,160 2007 G.O. Bonds - - - 2018 Improvements - - - Total Expenditures 105,000 503,084 534,924 Revenues less Expenditures - 0 0 Enterprise Fund Amended 11/18 Change Final 2018 budget Revenues - Hydro Fund 961,000 961,000 Water Fund 2,118,650 - 2,118,650 Sewer Fund 2,242,200 - 2,242,200 Total Revenues 5,321,850 - 5,321,850 Expenditures - Hydro Fund 931,603 (119,602) 812,001 Water Fund 1,710,626 - 1,710,626 Sewer Fund 1,971,819 - 1,971,819 Total Expenditures 4,614,048 (119,602) 4,494,446 Revenues less Expenditures 707,802 119,602 827,404 VIII-07 Adopted this 19 day of February 2019, _______________________________ Mary Fasbender, Mayor Attest: _____________________ Julie Flaten, City Clerk VIII-07