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HomeMy WebLinkAboutCCWkspAgenda 10-5-2011Falcon Heights City Council Workshop City Hall 2077 W Larpenteur Ave. 6:30 p.m. AGENDA Wednesday, October 5, 2011 5:OOpm 1) City Council Tour of U of M St. Paul Campus Sustainability Efforts 6:30pm 1) City Hall Solar Panel Update 2) 2012 Special Revenue and Debt Service Budget Review 3) GASB 54 Discussion (Fund Balance Designation) If you have a disability and need accommodation in order to attend this meeting, please notify City Hall 48 hours in advance between the hours of 8:00 a.m. and 4:30 p.m. at 651- 792 -7600. We will be happy to help. The City That Soars! REQUEST FOR COUNCIL ACTION Meeting Date October 5, 2011 Agenda Item Workshop 1 Attachment Energy Alternatives Proposal Payback Scenarios Submitted By Justin Miller, City Administrator Item City Hall Solar Panel Discussion Description Over the past year the City of Falcon Heights has been evaluating different proposals for placing solar panels on the roof at city hall. Due to changing requirements and funding decisions made by the state legislature and the Public Utilities Commission, the original company interested in this project backed out. A new company, Energy Alternatives, has stepped in and earlier this year the city approved a letter of intent to work with them and further develop their proposal. At this time Energy Alternatives has presented a new proposal. The framework includes: Total Project Cost: $321,600.00 Monthly Lease Payment (City pays to Energy Alternatives): $530.00 Total Lease payments by city over 72 month period: $38,160.00 Proposed city buyout after year six: $12,720.00 Total out -of- pocket cost to city: $50,880.00 The city would see a reduction in our electric bill due to the solar panel energy generation, but at this time staff is still awaiting word from Xcel Energy about how that credit would be structured. However, Energy Alternatives has produced three payback scenarios based on their initial discussions with Xcel and other communities that are pursuing this type of project. The payback periods for these scenarios range from nine to seventeen years. City staff and Energy Alternatives representatives have been reviewing draft contracts in the event that the city council wishes to pursue this project. It is possible for the panels to be installed yet this year if the council desires. Representatives from Energy Alternatives will be present at the workshop to better elaborate on their proposal and to answer any questions. Families, Fields and Fair Budget Impact Undetermined at this time Attachment(s) Energy Alternatives Proposal dated 10/5/2011 Payback Scenarios Action(s) No action is requested, but if the council desires, contract documents could be Requested presented as soon as the next city council meeting. 10/5/2011 al ".!TS City of Falcon Heights - tenKsolar Project Budget Summary - City Hall Project Summary: Turnkey installation of one (1) 40kW solar electric systems with monitoring equipment. Proposal includes all engineering, permitting, Xcel Energy applications, required site audit, and energy output guarantee, under an ENERGY SAVINGS GUARANTEE CONTRACT. Maintenance and repair included for the term of the lease. Total Estimated Project Cost: City Hall (39.92kW) $321,600.00 Equipment Operations Lease Term: 72 Months Equipment Operations Lease Payment: Monthly: $530.00 City of Falcon Heights would be the legal owner of the system. Energy Alternatives is the "tax owner" for all tax benefits during the leaseback term. At the end of the leaseback term EA exercises the bargain purchase option to purchase the system for $1.00. City of Falcon Heights can then purchase system from EA for $12,720.00 or continue to lease the system on a year -to- year basis. Structure approved by Xcel Enerav to transfer tax ownership to EA EA designs and installs the solar systems EA sells the solar systems to Falcon Heights for $321,600.00 EA leases the system back from Falcon Heights and makes all lease payments in advance in the amount of $321,600.00 Falcon Heights makes Operations Lease Payments. All rebates and tax incentives accrue to EA and are subject to change until final project approval. Proposal is subject to site inspection and project favorable engineering results. • The $530.00 monthly lease payment is offset by approximately $4,505 in annual energy savings to the City by the reduction of approximately 53,000 kwh annually produced by the solar panels and not being purchased from Xcel Energy. As an example, if the City is paying $0.085 per kwh, the net cost to the City would be approximately $1,855 per year for the system for the term of the lease. Respectfully submitted, Energy Alternatives 17685 Juniper Path, Suite 301 Lakeville, MN 55044 17685 Juniper Path, Suite 301, Lakeville, MN 55044 [t] 651.460.6100 [f] 651.460.6717 [w] www.energyalternativexom Energy Alternatives Confidential Total out of pocket cost per avoided kWh System size Annual Kwh production Note: annual production based on 53,000 kWh per 39.96kW system $ 50,880.0 1 $ 0.0450 39.92 KW I 52947 kWh or F- 3.00/ Projected Annual Utility Rate and Fuel Cost Increase Current Utility Rate per kWh Year Rate Impact Utility Rate 1 100.0% $ 0.0450 2 103.0% $ 0.0464 3 106.1% $ 0.0477 4 109.3% $ 0.0492 5 112.6% $ 0.0506 6 115.9% $ 0.0522 7 119.4% $ 0.0537 8 123.0% $ 0.0553 9 126.7% $ 0.0570 10 130.5% $ 0.0587 11 134.4% $ 0.0605 12 138.4% $ 0.0623 13 142.6% $ 0.0642 14 146.9% $ 0.0661 15 151.3% $ 0.0681 16 155.8% $ 0.0701 17 160.5% $ 0.0722 18 165.3% $ 0.0744 19 170.2% $ 0.0766 20 175.4% $ 0.0789 $ 0.0450 $ /years to Break even $ 50,880 $ 48,497 $ 46,043 $ 43,516 $ 40,912 $ 38,230 $ 35,468 $ 32,623 $ 29,693 $ 26,675 $ 23,566 $ 20,364 $ 17,066 $ 13,669 $ 10,170 $ 6,566 $ 2,854 $ (969) $ (4,908) $ (8,964) $ (13,142) "Out of pocket" Math 72 months at $530 per Lease end Buy out Total 1326.326 per installed kW $ 38,160 $ 12,720 $ 50,880 Energy Alternatives Confidential Total out of pocket cost per avoided kWh System size Annual Kwh production Note: annual production based on 53,000 kWh per 39.96kW system $ 50,880.0 1 $ 0.0610 39.92 KW I 52947 kWh or F- 3.00/ Projected Annual Utility Rate and Fuel Cost Increase Current Utility Rate per kWh Year Rate Impact Utility Rate 1 100.0% $ 0.0610 2 103.0% $ 0.0628 3 106.1% $ 0.0647 4 109.3% $ 0.0667 5 112.6% $ 0.0687 6 115.9% $ 0.0707 7 119.4% $ 0.0728 8 123.0% $ 0.0750 9 126.7% $ 0.0773 10 130.5% $ 0.0796 11 134.4% $ 0.0820 12 138.4% $ 0.0844 13 142.6% $ 0.0870 14 146.9% $ 0.0896 15 151.3% $ 0.0923 16 155.8% $ 0.0950 17 160.5% $ 0.0979 18 165.3% $ 0.1008 19 170.2% $ 0.1038 20 175.4% $ 0.1070 $ 0.0610 $ /years to Break even $ 50,880 $ 47,650 $ 44,324 $ 40,897 $ 37,368 $ 33,733 $ 29,989 $ 26,132 $ 22,160 $ 18,068 $ 13,854 $ 9,514 $ 5,043 $ 438 $ (4,305) $ (9,190) $ (14,222) $ (19,405) $ (24,743) $ (30,242) $ (35,905) "Out of pocket" Math 72 months at $530 per Lease end Buy out Total 1326.326 per installed kW $ 38,160 $ 12,720 $ 50,880 Energy Alternatives Confidential Total out of pocket cost per avoided kWh System size Annual Kwh production Note: annual production based on 53,000 kWh per 39.96kW system $ 50,880.0 1 $ 0.0850 39.92 KW I 52947 kWh or F- 3.00/ Projected Annual Utility Rate and Fuel Cost Increase Current Utility Rate per kWh Year Rate Impact Utility Rate 1 100.0% $ 0.0850 2 103.0% $ 0.0876 3 106.1% $ 0.0902 4 109.3% $ 0.0929 5 112.6% $ 0.0957 6 115.9% $ 0.0985 7 119.4% $ 0.1015 8 123.0% $ 0.1045 9 126.7% $ 0.1077 10 130.5% $ 0.1109 11 134.4% $ 0.1142 12 138.4% $ 0.1177 13 142.6% $ 0.1212 14 146.9% $ 0.1248 15 151.3% $ 0.1286 16 155.8% $ 0.1324 17 160.5% $ 0.1364 18 165.3% $ 0.1405 19 170.2% $ 0.1447 20 175.4% $ 0.1490 $ 0.0850 $ /years to Break even $ 50,880 $ 46,380 $ 41,744 $ 36,969 $ 32,052 $ 26,986 $ 21,769 $ 16,395 $ 10,860 $ 5,159 $ (713) $ (6,761) $ (12,991) $ (19,408) $ (26,017) $ (32,824) $ (39,836) $ (47,058) $ (54,496) $ (62,158) $ (70,050) "Out of pocket" Math 72 months at $530 per Lease end Buy out Total 1326.326 per installed kW $ 38,160 $ 12,720 $ 50,880 The City That Soars! REQUEST FOR COUNCIL ACTION Meeting Date October 5, 2011 Agenda Item Workshop 2 Attachment 2012 Special Revenue and Debt Service Budgets Submitted By Justin Miller, City Administrator Item Review of 2012 Draft Special Revenue and Debt Service Budgets Description Each year, as part of the budget process, the city council reviews and adopts budgets relating to existing debt service obligations as well as special revenue funds. Attached to this report are the draft 2012 debt service and special revenue budgets for the city council's review. Highlights include: Debt Service G.O. Equipment Certificates, Series 2010A (306 )-serves as the account for the equipment certificates that were issued by the city in 2010. 2012 will be the second year of payments and are in the same amount as in 2011. Special Revenue Park Programs (201) - This budget reflects revenues and expenses associated with conducting the city's park and recreation programs. There are no major changes included in this budget, and staff will have participation and program reports available for review at the workshop. Community Garden (203x- includes revenues (plot rental fees) and expenses associated with the community garden at Community Park. No major changes are being proposed. Water (204) - includes revenues from the hydrant charges billed on each water bill (6% of water consumption charges). This money is used for hydrant repairs and potential fire truck repairs/ replacements. There are no major changes being recommended at this time. Recycling (206) - includes revenues (charges to property owners) and expenses (mostly the contract amount charged by the recycling hauler). 2012 will be the second year of the contract with Tennis Sanitation. Tennis charges the city $3.00 /household /month, and for 2011 the rate was increased for the first time in several years. For 2012, staff is proposing a rate increase from $2.50/ month to $3.00 /month. Families, Fields and Fair Community / Economic Development (208) - includes money for special studies and /or projects identified by the city council. Revenue includes annual right -of- way lease fees from the BP gas station at the corner of Snelling and Larpenteur. In order to meet one of the city council's goals of creating a citywide economic development plan, staff has included $6,000 in the 2012 budget. Street Lighting (209) - this fund was established in 2010 to account for the street light utility fee. $2.00 per month is charged to homeowners, and a similar amount is charged to non - residential properties based on their street frontage. Payments are being received as expected, and staff is not proposing any changes to this fund for 2012. CERT Grant (210 and 211) - serve as the funds that track expenses and revenues associated with the CERT grants received from the Minnesota Department of Homeland Security and Emergency Management. Classes and projects continue to proceed as scheduled with all expenses being aid for through the grants received. Budget Impact Proposed budget worksheets are attached. Attachment(s) Proposed Debt Service and Special Revenue Fund Budgets Action(s) No action is required, but staff will be seeking input if changes are requested so that Requested the budgets can be amended when formally adopted in December. G.O. EQUIPMENT CERTIFICATES, SERIES 2010A (306) 4 -2 COMPARE 2011 COMPARE 2011 ACCOUNT ACTUAL ACTUAL BUDGET ESTIMATED BUDGET BUDGETTO BUDGETTO NUMBER ACCOUNT TITLE 2009 2010 2011 2011 2012 2010 BUDGET ESTIMATED 2010 REVENUES: FINES & FORFEITS 36100 SPECIAL ASSESSMENTS 0 0 72,300 72,300 72,300 0.0% 0.0% TOTAL FINES &FORFEITS 0 0 72,300 72,300 72,300 0.0% 0.0% MISCELLANEOUS 36211 INTEREST ON INVESTMENTS 0 0 0 0 0 TOTAL MISCELLANEOUS 0 0 0 0 0 TOTALREVENUES 0 0 72,300 72,300 72,300 0.0% 0.0% OTHER FINANCING SOURCES 39200 TRANSFERS 0 0 0 0 0 TOTAL OTHER FINANCING SOURCES 0 0 0 0 0 TOTAL REVENUES & OTHER FINANCING SOURCES 0 0 72,300 72,300 72,300 0.0% 0.0% EXPENDITURES, OTHER SERVICES & CHARGES 80310 AUDIT 0 0 600 535 600 0.0% 12.1% TOTAL OTHER SERVICES & CHARGES 0 0 600 535 600 0.0% 12.1% DEBT SER VICE 94000 BOND PRINCIPAL 0 0 65,000 65,000 65,000 0.0% 0.0% 94500 BOND INTEREST 0 0 4,811 4,811 3,417 -29.0% -29.0% 94900 BOND FEES 0 0 1,850 900 2,000 8.1% 122.2% TOTAL DEBT SERVICE 0 0 71,661 70,711 70,417 -1.7% -0.4% TOTAL EXPENDITURES 0 0 72,261 71,246 71,017 -1.7% -0.3% FUND BALANCE - JANUARY 1 0 0 0 39 1,093 2702.6% CHANGE IN FUND BALANCE 0 0 39 1,054 1,283 3189.7% 21.7% FUND BALANCE - DECEMBER 31 0 0 39 1,093 2,376 5992.3% 117.4% 4 -2 PARK PROGRAMS (201) COMPARE 2011 COMPARE 2011 ACCOUNT ACTUAL ACTUAL BUDGET ESTIMATED BUDGET BUDGETTO BUDGETTO NUMBER ACCOUNT TITLE 2009 2010 2011 2011 2012 2010 BUDGET ESTIMATED 2010 REVENUES: CHARGES FOR SERVICES 34310 RECREATION FEES 15,258 12,598 13,000 10,200 10,848 -16.6% 6.4% 34340 NON - RESIDENT FEES 9,688 14,302 11,500 18,500 17,000 47.8% -8.1% 34350 5K RUN 30 0 500 0 0 TOTAL CHARGES FOR SERVICES 24,976 26,900 25,000 28,700 27,848 11.4% -3.0% MISCELLANEOUS 36211 INTEREST ON INVESTMENTS 521 295 100 100 100 0.0% 0.0% 36213 CHANGE IN FAIR VALUE OF INVESTMENTS 18 (18) 0 0 0 36232 CONTRIBUTIONS- SCHOLARSHIP 0 200 100 300 100 0.0% -66.7% 36233 CONTRIBUTIONS - FRIENDS OF REC SPORT FROG 15 25 0 0 0 34350 CONTRIBUTION - 5 K RUN 0 100 0 0 0 TOTAL MISCELLANEOUS 554 602 200 400 200 0.0% -50.0% TOTAL REVENUES 25,530 27,501 25,200 29,100 28,048 11.3% -3.6% OTHER FINANCING SOURCES 39200 TRANSFERS 20,800 20,800 21,000 21,000 22,000 4.8% 4.8% TOTAL OTHER FINANCING SOURCES 20,800 20,800 21,000 21,000 22,000 4.8% 4.8% TOTAL REVENUES & OTHER FINANCING SOURCES 46,330 48,301 46,200 50,100 50,048 8.3% -0.1% EXPENDITURES: COMPENSATION 60100 REGULAR SALARIES 8,529 5,457 12,000 9,400 12,100 0.8% 28.7% 60520 PART -TIME EMPLOYEES 2,746 5,341 4,000 6,600 5,000 60530 SEASONAL EMPLOYEES 19,171 20,908 16,000 19,000 16,000 0.0% -15.8% 64011 PERA CONTRIBUTIONS 576 863 865 825 880 1.7% 6.7% 64012 FICA CONTRIBUTIONS 2,383 2,508 2,140 2,650 2,560 19.6% -3.4% 64031 HOSPITALIZATION 1,604 1,182 3,700 1,980 4,065 9.9% 105.3% 64032 DENTAL 103 98 240 138 243 1.3% 76.1% 64033 LONG -TERM DISABILITY 15 8 20 20 20 0.0% 0.0% 64034 LIFE INSURANCE 22 18 26 30 30 15.4% 0.0% TOTAL COMPENSATION 35,149 36,383 38,991 40,643 40,898 4.9% 0.6% MATERIALS & SUPPLIES 70100 SUPPLIES 1,794 1,798 1,900 1,500 1,500 -21.1% 0.0% 70440 PRINT & PUBLISHING & ADVERTISING 2,368 2,297 2,300 1,400 1,200 47.8% -14.3% 73000 RECREATION EQUIPMENT 187 17 0 883 1,500 69.9% TOTAL MATERIALS & SUPPLIES 4,349 4,112 4,200 3,783 4,200 0.0% 11.0% OTHER SERVICES & CHARGES 80310 AUDIT 619 550 600 535 600 0.0% 12.1% 86010 MILEAGE 86 0 0 0 0 86100 CONFERENCES AND EDUCATION 716 273 275 40 100 87500 RENTAL OF EQUIP /FACILITIES OPEN GYM 0 0 0 0 0 87700 INSTRUCTOR - SPECIALTY 2,596 3,526 1,000 3,800 2,500 150.0% -34.2% 88000 INSURANCE & BONDS 0 0 0 0 0 88500 PAYPAL EXPENSES 805 862 700 800 800 14.3% 0.0% 88600 RECREATION - SCHOLARSHIP 0 0 0 0 0 89000 MISCELLANEOUS 445 604 400 350 400 0.0% 14.3% TOTAL OTHER SERVICES & CHARGES 5,266 5,815 2,975 5,525 4,400 47.9% -20.4% TOTAL EXPENDITURES 44,765 46,311 46,166 49,951 49,498 7.2% -0.9% FUND BALANCE - JANUARY 1 1,627 3,192 5,183 5,217 5,366 3.5% 2.9% CHANGE IN FUND BALANCE 1,565 1,991 34 149 550 1517.6% 269.1% FUND BALANCE - DECEMBER 31 3,192 5,183 5,217 5,366 5,916 13.4% 10.2% 1 pi COMMUNITY GARDEN ( 203) COMPARE 2011 COMPARE 2011 BUDGET TO BUDGET TO ACCOUNT ACTUAL ACTUAL BUDGET ESTIMATED BUDGET 2010 BUDGET ESTIMATED 2010 NUMBER ACCOUNT TITLE 2009 2010 2011 2011 2012 REVENUES: CHARGES FOR SERVICES 0.0% -3.3% 34500 COMMUNITY GARDEN PLOT FEE 725 725 725 750 725 0.0% -3.3% TOTAL CHARGES FOR SERVICES 725 725 725 750 725 MISCELLANEOUS 0.0% 0.0% 36211 INTEREST ON INVESTMENTS 71 50 20 20 20 36213 CHANGE IN FAIR VALUE OF INVESTMENTS 12 (7) 0 0 0 36300 DONATION - COMMUNITY GARDEN 15 0 0 0 0 36400 MISCELLANEOUS 0 0 0 0 0 TOTAL MISCELLANEOUS 98 43 20 20 20 OTHER FINANCING SOURCES 39200 TRANSFERS 0 0 0 0 0 TOTAL OTHER FINANCING SOURCES 0 0 0 0 0 0.0% -3.2% TOTAL REVENUES 823 768 745 770 745 EXPENDITURES: MATERIALS & SUPPLIES 70100 SUPPLIES 132 622 250 80 250 TOTAL MATERIALS &SUPPLIES 132 622 250 80 250 OTHER SERVICES & CHARGES 80310 AUDIT 0 0 0 0 0 81900 OTHER PROFESSIONAL SERVICES 0 0 0 0 0 - 100.0% 89000 MISCELLANEOUS 445 0 0 55 0 - 100.0% TOTAL OTHER SERVICES & CHARGES 445 0 0 55 0 0.0% 85.2% TOTAL EXPENDITURES 578 622 250 135 250 27.1% 27.1% FUND BALANCE - JANUARY 1 1,954 2,200 2,345 2,345 2,980 0.0% -22.0% CHANGE IN FUND BALANCE 246 146 495 635 495 22.4% 16.6% FUND BALANCE - DECEMBER 31 2,200 2,345 2,840 2,980 3,475 pi WATER (204) COMPARE 2011 COMPARE 2011 ACCOUNT ACTUAL ACTUAL BUDGET ESTIMATED BUDGET BUDGETTO BUDGETTO NUMBER ACCOUNT TITLE 2009 2010 2011 2011 2012 2010 BUDGET ESTIMATED 2010 REVENUES: INTERGOVERNMENTAL 33611 ST PAUL WATER UTILITY 0 0 0 0 0 TOTAL INTERGOVERNMENTAL 0 0 0 0 0 CHARGES FOR SERVICES 34180 WATER CHARGES 21,579 19,201 18,000 19,000 19,000 5.6% 0.0% TOTAL CHARGES FOR SERVICES 21,579 19,201 18,000 19,000 19,000 5.6% 0.0% MISCELLANEOUS 36211 INTEREST ON INVESTMENTS 941 823 300 450 450 50.0% 0.0% 36213 CHANGE IN FAIR VALUE OF INVESTMENTS 212 (145) 0 0 0 TOTAL MISCELLANEOUS 1,153 678 300 450 450 50.0% 0.0% TOTAL REVENUES 22,732 19,879 18,300 19,450 19,450 6.3% 0.0% EXPENDITURES: COMPENSATION 60100 REGULAR SALARIES 5,226 5,316 5,700 5,400 5,500 -3.5% 1.9% 64011 PERA CONTRIBUTIONS 353 372 415 395 400 -3.6% 1.3% 64012 FICA CONTRIBUTIONS 363 373 436 415 420 -3.7% 1.2% 64031 HOSPITALIZATION 1,366 1,423 1,600 1,470 1,625 1.6% 10.5% 64032 DENTAL 82 99 110 92 98 -10.9% 6.5% 64033 LONG -TERM DISABILITY 5 8 12 8 10 - 16.7% 25.0% 64034 LIFE INSURANCE 9 13 16 14 16 0.0% 14.3% TOTAL COMPENSATION 7,404 7,605 8,289 7,794 8,069 -2.7% 3.5% OTHER SERVICES & CHARGES 80310 AUDIT 619 550 600 535 600 0.0% 12.1% 86100 CONFERENCE & EDUCATION 178 0 200 0 200 87090 REPAIR EQUIPMENT 0 0 1,000 0 1,000 0.0% 87120 REPAIRS & MAINTENANCE 0 0 0 0 0 88500 BILLING FEES 163 164 165 165 165 0.0% 0.0% 89000 MISCELLANEOUS 51 0 100 0 100 0.0% 89070 HYDRANT MARKERS 0 889 0 560 500 -10.7% TOTAL OTHER SERVICES & CHARGES 1,011 1,603 2,065 1,260 2,565 24.2% 103.6% CAPITAL OUTLAY 94700 INFRASTRUCTURE IMPROVEMENTS 0 0 0 0 TOTAL CAPITAL OUTLAY 0 0 0 0 0 OTHER FINANCING USES 97000 TRANSFERS 0 0 0 0 0 TOTAL OTHER FINANCING USES 0 0 0 0 0 TOTAL EXPENDITURES 8,415 9,208 10,354 9,054 10,634 2.7% 17.5% FUND BALANCE - JANUARY 1 25,690 40,007 50,678 50,678 61,074 20.5% 20.5% CHANGE IN FUND BALANCE 14,317 10,671 7,946 10,396 8,816 10.9% -15.2% FUND BALANCE - DECEMBER 31 40,007 50,678 58,624 61,074 69,890 19.2% 14.4% 4 RECYCLING (206) COMPARE 2011 COMPARE 2011 ACCOUNT ACTUAL ACTUAL BUDGET ESTIMATED BUDGET BUDGETTO BUDGETTO NUMBER ACCOUNT TITLE 2009 2010 2011 2011 2012 2010 BUDGET ESTIMATED 2010 REVENUES: INTERGOVERNMENTAL 33610 COUNTY GRANT- RECYCLING 11,469 11,612 11,849 11,849 11,849 0.0% 0.0% TOTAL INTERGOVERNMENTAL 11,469 11,612 11,849 11,849 11,849 0.0% 0.0% CHARGES FOR SERVICES 34180 SOLID WASTE FEE 33,428 34,138 55,500 56,000 67,200 21.1% 20.0% 34181 SOLID WASTE PENALTY 0 0 0 0 0 34182 SALE OF RECYCLING /COMPOST BINS 420 0 0 0 0 34183 COMPOST BINS 1,158 0 0 0 0 TOTAL CHARGES FOR SERVICES 35,006 34,138 55,500 56,000 67,200 21.1% 20.0% MISCELLANEOUS 36211 INTEREST ON INVESTMENTS 2,316 1,556 800 800 700 -12.5% -12.5% 36213 CHANGE IN FAIR VALUE OF INVESTMENTS 408 (252) 0 0 0 TOTAL MISCELLANEOUS 2,725 1,304 800 800 700 -12.5% -12.5% TOTAL REVENUES 49,200 47,054 68,149 68,649 79,749 17.0% 16.2% EXPENDITURES: COMPENSATION 60100 REGULAR SALARIES 6,830 7,387 7,600 7,600 7,725 1.6% 1.6% 64011 PERA CONTRIBUTIONS 461 517 555 555 560 0.9% 0.9% 64012 FICA CONTRIBUTIONS 512 550 585 585 595 1.7% 1.7% 64031 HOSPITALIZATION 10 11 15 15 101 573.3% 573.3% 64032 DENTAL 0 0 14 7 7 -50.0% 0.0% 64033 LONG -TERM DISABILITY 13 15 15 17 18 20.0% 5.9% 64034 LIFE INSURANCE 23 24 25 26 27 8.0% 3.8% TOTAL COMPENSATION 7,848 8,503 8,809 8,805 9,033 2.5% 2.6% MATERIALS & SUPPLIES 70100 SUPPLIES 1,554 0 1,500 300 300 -80.0% 0.0% 70420 NEWSLETTERS 0 163 600 300 600 0.0% 100.0% 70500 POSTAGE 0 55 200 100 200 0.0% 100.0% TOTAL MATERIALS & SUPPLIES 1,554 218 2,300 700 1,100 -52.2% 57.1% OTHER SERVICES & CHARGES 80310 AUDIT 619 550 600 535 600 0.0% 12.1% 82030 RECYCLING CONTRACT 29,735 29,985 74,000 70,000 70,000 -5.4% 0.0% 86100 CONFERENCES /EDUCATION /ASSOCIATIONS 0 0 0 0 0 88000 INSURANCE & BONDS 0 0 0 0 0 88500 BILLING FEES 173 155 180 180 180 0.0% 0.0% 89000 MISCELLANEOUS 0 0 0 0 0 89010 CLEAN -UP DAY & MULCH ACTIVITIES 1,961 970 4,000 2,000 4,000 0.0% 100.0% TOTAL OTHER SERVICES & CHARGES 32,488 31,660 78,780 72,715 74,780 -5.1% 2.8% TOTAL EXPENDITURES 41,891 40,381 89,889 82,220 84,913 -5.5% 3.3% FUND BALANCE - JANUARY 1 75,816 83,125 89,798 89,798 76,227 -15.1% -15.1% CHANGE IN FUND BALANCE 7,309 6,673 (21,740) (13,571) (5,164) -76.2% -61.9% FUND BALANCE - DECEMBER 31 83,125 89,798 68,058 76,227 71,063 4.4% -6.8% 4 COMMUNITY /ECONOMIC DEVELOPMENT (208) 5 COMPARE 2011 COMPARE 2011 ACCOUNT ACTUAL ACTUAL BUDGET ESTIMATED BUDGET BUDGETTO BUDGETTO NUMBER ACCOUNT TITLE 2009 2010 2011 2011 2012 2010 BUDGET ESTIMATED 2010 REVENUES: MISCELLANEOUS 36211 INTEREST ON INVESTMENTS 276 167 80 60 50 -37.5% -16.7% 36213 CHANGE IN FAIR VALUE OF INVESTMENTS 52 (24) 0 0 0 36220 RENTS & ROYALTIES 1,155 1,155 1,155 1,155 1,155 0.0% 0.0% 36400 MISCELLANEOUS 0 0 0 0 TOTAL MISCELLANEOUS 1,483 1,298 1,235 1,215 1,205 -2.4% -0.8% TOTAL REVENUES 1,483 1,298 1,235 1,215 1,205 -2.4% -0.8% OTHER FINANCING SOURCES 39200 TRANSFERS 0 0 0 0 0 TOTAL OTHER FINANCING SOURCES 0 0 0 0 0 TOTAL REVENUES & OTHER FINANCING SOURCES 1,483 1,298 1,235 1,215 1,205 -2.4% -0.8% EXPENDITURES: OTHER SERVICES & CHARGES 80310 AUDIT 619 550 600 535 600 0.0% 12.1% 81900 OTHER PROFESSIONAL SERVICES 130 0 3,000 0 6,000 100.0% 89000 MISCELLANEOUS 25 1,800 100 0 0 - 100.0% TOTAL OTHER SERVICES & CHARGES 774 2,350 3,700 535 6,600 78.4% 1133.6% TOTAL EXPENDITURES 774 2,350 3,700 535 6,600 78.4% 1133.6% FUND BALANCE - JANUARY 1 8,328 9,038 7,986 7,986 8,666 8.5% 8.5% CHANGE IN FUND BALANCE 710 (1,052) (2,465) 680 (5,395) 118.9% - 893.4% FUND BALANCE - DECEMBER 31 9,038 7,986 5,521 8,666 3,271 -40.8% -62.3% 5 STREET LIGHTING (209) ACCOUNT TRANSFERS NUMBER ACCOUNT TITLE 0 REVENUES: 0 CHARGES FOR SERVICES 34180 ELECTRIC CHARGES 0 TOTAL CHARGES FOR SERVICES 0 MISCELLANEOUS 36211 INTEREST ON INVESTMENTS 38,792 TOTAL MISCELLANEOUS 40,045 OTHER FINANCING SOURCES ACTUAL ACTUAL BUDGET ESTIMATED BUDGET 2009 2010 2011 2011 2012 0 38,822 40,000 40,000 40,000 0 38,822 40,000 40,000 40,000 0 (30) 50 45 45 0 (30) 50 45 45 39200 TRANSFERS 0 0 0 0 0 TOTAL OTHER FINNCING SOURCES 0 0 0 0 0 TOTAL REVENUES 0 38,792 40,050 40,045 40,045 EXPENDITURES: MATERIALS AND SUPPLIES 70100 SUPPLIES 0 0 2,000 2,000 2,000 TOTAL MATERIAL & SUPPLIES 0 0 2,000 2,000 2,000 OTHER SERVICES & CHARGES 80310 AUDIT 0 550 600 535 600 85020 STREET LIGHTING POWER 0 28,133 34,000 32,000 33,000 87120 REPAIR & MAINTENANCE 0 3,999 3,000 2,000 3,000 88500 BILLING FEES 0 500 400 670 680 89000 MISCELLANEOUS 0 0 200 0 200 TOTAL OTHER SERVICES & CHARGES 0 33,183 38,200 35,205 37,480 TOTAL EXPENDITURES 0 33,183 40,200 37,205 39,480 FUND BALANCE - JANUARY 1 0 0 5,609 5,609 8,449 CHANGE IN FUND BALANCE 0 5,609 (150) 2,840 565 FUND BALANCE - DECEMBER 31 0 5,609 5,459 8,449 9,014 s COMPARE 2011 COMPARE 2011 BUDGET TO BUDGET TO 2010 BUDGET ESTIMATED 2010 -10.0% 0.0% -10.0% 0.0% 0.0% 0.0% 0.0% 12.1% 0.0% 50.0% -1.9% 6.5% -1.8% 6.1% 50.6% 50.6% - 476.7% -80.1% 65.1% 6.7% 7 CITIZEN CORPS COUNCIL /NEIGHBORHOOD LIAISON (210) (EXP 3/31/13) COMPARE 2011 COMPARE 2011 ACCOUNT ACTUAL ACTUAL BUDGET ESTIMATED BUDGET BUDGETTO BUDGETTO NUMBER ACCOUNT TITLE 2009 2010 2011 2011 2012 2010 BUDGET ESTIMATED 2010 REVENUES: INTERGOVERNMENTAL 33610 GRANT 0 0 0 0 1,460 TOTAL INTERGOVERNMENTAL 0 0 0 0 1,460 MISCELLANEOUS 36211 INTEREST ON INVESTMENTS 0 0 0 0 0 36233 CONTRIBUTIONS FROM PARTICPANTS 0 0 0 0 0 TOTAL MISCELLANEOUS 0 0 0 0 0 TOTAL REVENUES 0 0 0 0 1,460 OTHER FINANCING SOURCES 39200 TRANSFERS 0 0 0 0 0 TOTAL OTHER FINANCING SOURCES 0 0 0 0 0 TOTAL REVENUES & OTHER FINANCING SOURCES 0 0 0 0 1,460 EXPENDITURES: COMMUNITY EMERG RESPONSE TEAM CERT 60100 SALARY -CERT PROD ADMIN 0 0 0 0 56 64012 FICA EXPENSES 0 0 0 0 4 80320 INSTRUCTOR PREP /DELIVERY 0 0 0 0 0 80340 CERT MEMBER EQUIPMENT 0 0 0 0 0 80350 OTHER CERT ITEMS 0 0 0 0 0 80360 PRINTING /DIST CERT MATERIAL 0 0 0 0 0 80370 CERT DATABASE COSTS 0 0 0 0 0 TOTAL CERT EXPENSES 0 0 0 0 60 80600 PERSONNEL /CONTRACT SUPPORT 0 0 0 0 0 80601 FICA 0 0 0 0 0 86010 CRIME PREVENTION SEMINARS 0 0 0 0 0 86100 CITIZENS CORP TRAINING 0 0 0 0 200 86105 CERT TNG EXERCISES 0 0 0 0 1,200 86120 COLLABORATION COSTS CCC 0 0 0 0 0 86130 MISC OTHER CCC COSTS 0 0 0 0 0 TOTAL CCC EXPENSES 0 0 0 0 1,400 OTHER SERVICES & CHARGES 80310 AUDIT 0 0 0 0 0 TOTAL OTHER S VCS & CHARGES 0 0 0 0 0 OTHER FINANCING USES 97000 TRANSFERS 0 0 0 0 0 TOTAL OTHER FINANCING USES 0 0 0 0 0 TOTAL EXPENDITURES & OTHER FINANCING USES 0 0 0 0 1,460 FUND BALANCE - JANUARY 1 0 0 0 0 0 CHANGE IN FUND BALANCE 0 0 0 0 0 FUND BALANCE - DECEMBER 31 0 0 0 0 0 7 COMMUNITY EMERG RESPONSE TEAM GRANT (211) (EXP 5/31/12) ACCOUNT ACTUAL ACTUAL BUDGET ESTIMATED BUDGET BUDGETTO BUDGETTO NUMBER ACCOUNT TITLE 2009 2010 2011 2011 2012 2010 BUDGET ESTIMATED 2010 REVENUES: INTERGOVERNMENTAL 33610 GRANT TOTAL INTERGOVERNMENTAL MISCELLANEOUS 36211 INTEREST ON INVESTMENTS 36233 CONTRIBUTIONS FROM PARTICPANTS TOTAL MISCELLANEOUS TOTAL REVENUES OTHER FINANCING SOURCES 39200 TRANSFERS TOTAL OTHER FINANCING SOURCES TOTAL REVENUES & OTHER FINANCING SOURCES EXPENDITURES: COMMUNITY EMERG RESPONSE TEAM CERT 60100 SALARY -CERT PROG ADMIN 60520 CERT COORDINATOR 64012 FICA EXPENSES 70100 SUPPLIES 80320 INSTRUCTOR PREP /DELIVERY - NEW 80330 POLICE & FIRE INSTRUCTION 80340 CERT MEMBER EQUIPMENT 80350 OTHER CERT ITEMS - CURRENT MEMBERS 80360 PRINTING /DIST CERT MATERIAL 80370 CERT DATABASE COSTS TOTAL CERT EXPENSES 80600 PERSONNEL /CONTRACT SUPPORT 80601 FICA 86010 CRIME PREVENTION SEMINAR 86105 OUTREACH /PUBLIC EDUCATION 86110 MEETING COSTS CCC 86120 COLLABORATION COSTS CCC 86130 MISC OTHER CCC COSTS TOTAL CCC EXPENSES OTHER SERVICES & CHARGES 80310 AUDIT TOTAL OTHER S VCS & CHARGES OTHER FINANCING USES 97000 TRANSFERS TOTAL OTHER FINANCING USES TOTAL EXPENDITURES & OTHER FINANCING USES FUND BALANCE - JANUARY 1 CHANGE IN FUND BALANCE FUND BALANCE - DECEMBER 31 0 0 4,956 400 4,556 -8.1% 0 0 4,956 400 4,556 -8.1% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,956 400 4,556 -8.1% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,956 400 4,556 -8.1% 0 0 137 0 137 0 0 1,857 0 1,857 0 0 154 0 154 0 0 0 0 0 0 0 2,008 0 2,008 0 0 0 0 0 0 0 800 400 400 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,956 400 4,556 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,956 400 4,556 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 S 1039.0% 1039.0% 1039.0% 1039.0% 0.0% 0.0% 0.0% -50.0% 0.0% -8.1% -8.1% 1039.0% 1039.0% The City That Soars! REQUEST FOR COUNCIL ACTION Meeting Date October 5, 2011 Agenda Item Workshop 3 Attachment Audit Recommendations Fund Balance Worksheet Example Submitted By Roland Olson, Finance Director Item GASB 54 Implementation (Fund Balance Designations) Description During the 2010 audit, our auditors noted that all cities are required to comply with Government Accounting Standards Board (GASB) Statement No. 54 by December 31, 2011. This standard changes the way in which fund balances are reported in our annual financial statements. Attached is a description of GASB 54 that was provided by our auditors as well as a worksheet showing how fund balances have historically been reported compared to the new method under GASB 54. The city council will eventually need to amend the city's fund balance policy to comply with these new standards. This workshop discussion will serve as an introduction to the topic and staff will make a more detailed report during the meeting. Budget Impact N/A Attachment(s) Audit Recommendations Fund Balance Worksheet Example Action(s) No action is required at this time. A recommended fund balance policy will be Requested brought to the city council later this year for approval. Families, Fields and Fair CITE' OF FALCON HEIGHTS RECOMMENDATION FOR MANAGEMENT December 31, 2010 Is CONSIDER THE IMPLICATIONS OF GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 54, FUND BALANCE REPOR TING AND GOVERNIIFENTAL FUND TYPE DEFINITIONS Government Accounting Standards Board (GASB) Statement No. 54 was enacted to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. The initial distinction that is made in reporting fund balance information is identifying amounts that are considered nonspendable, such as fund balance associated with inventories or prepaid expenses. This Statement also provides for additional classification as restricted, committed, assigned and unassigned based on the relative strength of the constraints that control how specific amounts can be spent. The restricted fund balance category includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers or through enabling legislation. The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision - making authority. Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed, unless that is a negative balance. Unassigned fund balance is the residual classification for the government's general fund and includes all spendable amounts not contained in the other classifications. In other funds, the unassigned classification should be used only to report a deficit balance resulting from overspending for specific purposes for which amounts have been restricted, committed or assigned. Governments are allowed to have stabilization amounts which are formally set aside for use in emergency situations or when revenue shortages or budgetary imbalances arise. These funds must be restricted or committed for a specific purpose, and cannot occur routinely. Governments are required to have a fund balance policy which addresses a reasonable minimum level of unrestricted fund balance to be maintained, how the unrestricted fund balance can be used or spent down, and how that fund balance will be replenished if it falls below the minimum level. Elimination of the reserved component of fund balance in favor of a restricted classification will enhance the consistency between information reported in the government -wide statements and information in the government fund financial statements and avoid confusion about the relationship between the reserved fund balance and restricted net assets. The Statement is also designed to enhance the usefulness of fund balance information by clarifying the definitions of governmental fund types. For example, special revenue funds are created only to report a revenue source that is restricted or committed to a specified purpose and that revenue source should constitute a substantial portion of the resources reported in the fund. In addition, the definition of the capital project fund type has been clarified to focus on the broader, more consistent understanding of capital outlays and capital activities in today's environment. This Statement is effective for the year ending December 31, 2011. Fund balance reclassifications made to conform to the provisions of this Statement should be applied retroactively by restating fund balance for all prior periods presented. 5 FUND BALANCE WORKSHEET EXAMPLES NOTE: Numbers are from 12 -31 -10 CAFR PARKPROGRAMS BEFORE AFTER GENERAL FUND: GENERAL FUND: Fund Balance 5183 Fund Balance Reserved for: Nonspendable 71,531 Prepaid Items 71,531 Restricted 5183 Unreserved, Reported in: Committed General Fund - Designated 835,305 Assigned 835,305 General Fund - Undesignated 390,479 Unassigned 390,479 Total Fund Balance 1,297,315 Total Fund Balance 1,297,315 SPECIAL REVENUE FUNDS: PARKPROGRAMS PARKPROGRAMS Fund Balance Fund Balance Unreserved, Reported in: Nonspendable Special Revenue - Designated 5183 Restricted Special Revenue - Undesignated Committed Assigned 5183 Total Fund Balance Unassigned Total Fund Balance WATER WATER Fund Balance Fund Balance Unreserved, Reported in: Nonspendable Special Revenue - Designated 50678 Restricted Special Revenue - Undesignated Committed Assigned 50678 Total Fund Balance Unassigned Total Fund Balance SOLID WASTE (RECYCLING) SOLID WASTE (RECYCLING) Fund Balance Fund Balance Unreserved, Reported in: Nonspendable Special Revenue - Designated 89798 Restricted Special Revenue - Undesignated Committed 89798 (maybe assigned) Assigned Total Fund Balance Unassigned Total Fund Balance COMMUNITY DEVELOPMENT COMMUNITY DEVELOPMENT Fund Balance Fund Balance Unreserved, Reported in: Nonspendable Special Revenue - Designated 7986 Restricted Special Revenue - Undesignated Committed Assigned 7986 Total Fund Balance Unassigned Total Fund Balance STREET LIGHTING STREET LIGHTING Fund Balance Fund Balance Unreserved, Reported in: Nonspendable Special Revenue - Designated 5609 Restricted Special Revenue - Undesignated Committed Assigned Total Fund Balance Unassigned Total Fund Balance COMMUNITY GARDEN COMMUNITY GARDEN Fund Balance Fund Balance Unreserved, Reported in: Nonspendable Special Revenue - Designated 2345 Restricted Special Revenue - Undesignated Committed Assigned Total Fund Balance Unassigned Total Fund Balance CERTS (GRANT) CERTS (GRANT) Fund Balance Fund Balance Unreserved, Reported in: Nonspendable Special Revenue - Designated balance Restricted Special Revenue - Undesignated Committed Assigned Total Fund Balance Unassigned Total Fund Balance EMERALD ASH BORER (GRANT) EMERALD ASH BORER Fund Balance Fund Balance Unreserved, Reported in: Nonspendable Special Revenue - Designated 10166 Restricted Special Revenue - Undesignated Committed Assigned Total Fund Balance Unassigned Total Fund Balance DEBT SERVICE FUNDS: 1996 TIF LARPENTEUR 1996 TIF LARPENTEUR Fund Balance Fund Balance Unreserved, Reported in: Nonspendable Special Revenue - Designated 9758 Restricted Special Revenue - Undesignated Committed Assigned Total Fund Balance Unassigned Total Fund Balance 5609 2345 balance closed out in 2011 closed 2011 GO EQUIPMENT SERIES 2010A GO EQUIPMENT SERIES 2010A (NEW IN 2011) Fund Balance Fund Balance Unreserved, Reported in: Nonspendable Special Revenue - Designated Restricted balance (bond covenant) Special Revenue - Undesignated Committed Assigned Total Fund Balance Unassigned Total Fund Balance CAPITAL FUNDS: GENERAL CAPITAL GENERAL CAPITAL Fund Balance Fund Balance Unreserved, Reported in: Nonspendable Special Revenue - Designated 27456 Restricted Special Revenue - Undesignated Committed Assigned 27456 Total Fund Balance Unassigned Total Fund Balance PUBLIC SAFETY CAPITAL PUBLIC SAFETY CAPITAL Fund Balance Fund Balance Unreserved, Reported in: Nonspendable Special Revenue - Designated 165784 Restricted Special Revenue - Undesignated Committed Assigned 165784 Total Fund Balance Unassigned Total Fund Balance PARKS & PUBLIC WORKS CAPITAL Fund Balance Unreserved, Reported in: Special Revenue - Designated 132464 Special Revenue - Undesignated Total Fund Balance INFRASTRUCTURE Fund Balance Unreserved, Reported in: Special Revenue - Designated 995623 Special Revenue - Undesignated Total Fund Balance LARPENTEUR STREETSCAPE Fund Balance Unreserved, Reported in: Special Revenue - Designated 30057 Special Revenue - Undesignated Total Fund Balance PARKS & PUBLIC WORKS CAPITAL Fund Balance Nonspendable Restricted Committed Assigned Unassigned Total Fund Balance INFRASTRUCTURE Fund Balance Nonspendable Restricted Committed Assigned Unassigned Total Fund Balance 132464 995623 LARPENTEUR STREETSCAPE Fund Balance Nonspendable Restricted Committed Assigned closed 2011 Unassigned CAPITAL EQUIPMENT 2010A Fund Balance Unreserved, Reported in: Special Revenue - Designated Special Revenue - Undesignated Total Fund Balance TAX INCREMENT # 2 CONSTRUCTION (BULLESEYE) Fund Balance Unreserved, Reported in: Special Revenue - Designated Special Revenue - Undesignated Total Fund Balance Total Fund Balance CAPITAL EQUIPMENT 2010A Fund Balance Nonspendable 288638 Restricted Committed Assigned Unassigned Total Fund Balance TAX INCREMENT # 2 CONSTRUCTION (BULLESEYE) Fund Balance Nonspendable 18844 Restricted Committed Assigned Unassigned Total Fund Balance TIF # 1 -3 (NE CORNER DEVELOPMENT) Fund Balance Unreserved, Reported in: Special Revenue - Designated 21250 Special Revenue - Undesignated Total Fund Balance TIF # 1 CONSTRUCTION (COFFMAN) Fund Balance Unreserved, Reported in: Special Revenue - Designated Special Revenue - Undesignated Total Fund Balance 55334 TIF # 1 -3 (NE CORNER DEVELOPMENT) 288638 (Bond covenant) 18844 Fund Balance Nonspendable Restricted 21250 Committed Assigned Unassigned Total Fund Balance TIF # 1 CONSTRUCTION (COFFMAN) Fund Balance Nonspendable Restricted 55334 Committed Assigned Unassigned Total Fund Balance