Pella Chronicle

Local News

May 14, 2014

Council approves budget amendment

The Pella City Council approved Budget Amendment #1 for the FY 13-14 Budget, following a public hearing on the matter.

No increases in taxes or rates will ensue as a result of this amendment, as all items will either be covered by offsetting expenditure savings or reserves.

This amendment contains a net increase in fund balance of $1,810,191.

This includes timing differences for a total $1,221,844 and represents funds budgeted in FY 12-13 that will be expended in FY 13-14. The amendment also represents timing differences total $4,865,740 and represent funds budgeted in FY 13-14 that will be expended in FY 14-15.

Other expenditure increases totaling $1,833,191 and are highlighted below:

-Expenditure increase of $1,025,000 for the Power Plant Decommissioning. This amendment adjusts the budget to align with the timing of the project’s expenditures.

-Expenditure increase of $1,047,294 for the Construction of the Sports Park. Construction of the Sports Park is currently ahead of schedule and expected to make significant progress in the coming months. The total City contribution continues to remain within the budgeted amount, with Fields of Our Future reimbursing 100% of any additional or unanticipated costs.

-Revenue decrease of $725,122 to reflect the 2014 LOSST Bond Proceeds. Bonds were issued in the amount of approximately $3.27 million to fund improvements to the indoor pool. The bond issuance was originally budgeted at $4.0 million.

-Expenditure increase of $630,100 for Repair of Hazel Street. Reconstruction of Hazel Street including water, sanitary sewer and storm sewer.

-Expenditure increase of $502,710 for the Sub D Area Conversation and Extension project. The conversion of existing 4.16 kV overhead circuits to 12.5 kV circuits installed underground is currently ahead of schedule. Project expenses for FY 14 are expected to amount to roughly $929,000. While the overall project budget continues to remain roughly $1.5 million dollars, significantly more progress was made in FY 14 than originally anticipated, thus lowering future FY 14-15 expenditures.

-Expenditure increase of $145,684 for the Replacement of the Diesel Plant Controls. The operational needs for the Diesel Plant have changed from its inception. As a result, changes in the black start functionality, isolated operational capacities, voltage and VAR control, and remote operation have resulted in demands for diesel plant control upgrades. Project bids exceeded engineer’s estimates for FY 14-15.

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