12-12-2022 City Council Packet - Laserfiche WebLink

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CITY COUNCIL AGENDA ITEM 2C STAFF ORIGINATOR: Hannah Lynch MEETING DATE: December 12, 2022 TOPIC: Consider Resolution No. 22-157, Amending the 2022 General Fund Operating Budget VOTE REQUIRED: 3/5 BACKGROUND Adopted budgets are amended over the course of the year for a variety of reasons. Factors that lead to budget amendments include fiscal decisions made throughout the year, economic conditions, and changes in budget projections. Staff has prepared a listing of proposed budget adjustments for conditions that are known today. Significant amendments are outlined below. On the revenue side, permit revenue from the Lyngblomsten Senior Housing project and residential development along with Municipal State Aid (MSA) street maintenance aid contributed to more revenue than anticipated. The increase in revenue was offset by less revenue than anticipated for liquor license fees and interest on investments. The City Council waived on -sale liquor license fees for the 2022-2023 licensing period and while the City earned interest on investments it was overshadowed by unrealized losses on investments due to rising interest rates. The loss will not become realized since the investments will be held to maturity and future gains and interest earnings on investments will recoup the losses experienced in this fiscal year. On the expenditure side, vacancies in various departments (Administration, Community Development, Police, Building Inspections, and Parks) contributed to a decrease in personnel costs. The decrease in expenditures was partially offset by more expenditures than anticipated for fuel, maintaining and repairing fire equipment, and electricity in government buildings. The net decrease in expenditures of $101,113 allowed the use of reserves to decrease from the anticipated $500,000 to $398,887. RECOMMENDATION Staff recommends the approval of Resolution No. 22-157. ATTACHMENTS Resolution No. 22-157