01-047-O
ORDINANCE NO.__________

AN ORDINANCE SETTING THE BUDGET FOR THE FISCAL YEAR 2002 APPROPRIATION MONIES FOR THE SUPPORT OF THE CITY GOVERNMENT, PUBLIC UTILITIES, AND PUBLIC ENTERPRISE FUNDS AND FOR OTHER PURPOSES.

BY COUNCILOR HOGG:

The city of Duluth does ordain:

        Section 1.     That in accordance with Section 58 of the 1912 Home Rule Charter of the city of Duluth, and all amendments thereof and laws supplementary thereto, and for the fiscal year beginning January 1 and ending December 31, 2002, the city council hereby budgets, determines and states the amount of money required to meet the principal and interest of maturing obligations comprising the outstanding indebtedness of such city; the amounts of money necessary to be provided for each such fund and each department of such city; and estimates the amount of income from all other sources and revenues, exclusive of taxes upon property, together with the probable amount required to be levied and raised by taxation to defray all expenses and obligations of such city during such fiscal year.
                            That the monies as so budgeted and hereinafter set forth shall be paid upon the presentation of properly verified vouchers bearing thereon the budget distribution for which such expenditures are to be charged in accordance with the detailed classification of accounts and the explanatory information of such as set forth in ordinance in effect governing same, excepting, however, payments for interest and sinking funds, which shall be paid in the manner set forth in Section 53 of the City Charter.
                            That any monies received by the several city departments as reimbursement for damages or repairs to city property or work done for others and not anticipated in the original budget may be credited to and added to the appropriate budget item upon approval by the administrative assistant or his designee.
                            That use of general fund balance that has been designated for a specific purpose in a prior year, must be approved by the city council if used for a purpose other than what has been specified.
                            That grants which have been approved by the appropriate state or federal agency and accepted by resolution of the city council may be added to the respective budget items upon approval of the finance director.

        Section 2.     That the finance director be authorized to approve the payments of $3,060,000 from the gas and steam public utility funds to the general fund for administrative services; comprised of $3,000,000 or seven percent of the gross revenues of the gas utility fund to the general fund; and $60,000 from public utility steam fund to the general fund.

        Section 3.     That the mayor or the administrative assistant or his designees may make transfers from budget item to budget item as may be considered necessary for the proper administration of the city government for the year 2002. However, the total of any transfers to or from any budget item in excess of ten percent of the appropriation therefore as herein made shall be made only upon approval of the city council. For the purpose of this Section, the term budget item shall mean the amount appropriated to the various funds delineated as fixed charges in the budget summary, the accounts numbered 010 through the 700 series shall each be considered budget items within the general fund, as defined in Chapter 8, Section 54, of the City Charter, and the accounts numbered 510 in the water division, 520 in the gas division, 530 in the sewer division, 535 in the stormwater division, 540 in the steam division and 503 in the golf division.

        Section 4.     That the salaries shall be in accordance with the pay plan in effect as provided by Section 22 of the City Charter, as amended.

        Section 5.     That the city auditor may create or abolish an accounting fund when required by law or proper accounting procedures.

        Section 6.     That the finance director, or his designee, be authorized to make temporary loans to and from the city's various funds as needed in the conduction of the day-to-day operations of the city.

        Section 7.     That the appropriations as set forth in this Section constitutes the budget of the city of Duluth for the calendar year of 2002.
 

010 - LEGISLATIVE AND EXECUTIVE
1101 City council - total $     168,300
1102 Mayor's office - total 173,500
1103 Administrative assistant - total 177,800
1104 Attorney's office - total 1,272,200
1105 Human rights office - total 265,000
   Total legislative and executive  $  2,056,800
 
015 - ADMINISTRATIVE SERVICES
1510 Human resources - total $     737,300
1511 Budget - total 212,400
1512 City clerk - total 617,900
1513 Data/word processing - total 1,435,100
1514 Other functions 846,000
1515 Facilities management 4,475,800
1516 Architect's office 226,500
    Total administrative services $  8,001,600
 
020 - PLANNING AND DEVELOPMENT DEPARTMENT
1202 Urban development - total $     958,500
     Total planning department $     958,600
 
030 - FINANCE
1322 City assessor's office - total $     716,100
1324 City auditor's office - total  1,479,300
1325 Purchasing office - total 285,000
1327 City treasurer's office - total 379,400
     Total finance and records $  2,859,900
 
100 - FIRE DEPARTMENT
1501 Fire administration - total $     395,400
1502 Firefighting operations - total $12,354,700
1503 Fire prevention and training - total $     463,300
1504 Building inspection $  1,579,700
     Total fire department $14,793,100
 
200 - POLICE DEPARTMENT
1610 Police support services - total $  5,965,100
1620 Police uniform division - total $  8,003,500
     Total police department $13,968,600
 
300 - LIBRARY
1702 Library services - total $  3,689,700
1703 Buildings and equipment - total $     300,100
     Total library $  3,989,800
 
400 - PARKS AND RECREATION
1812 Recreation and senior services - total $  1,747,300
1814 Zoo - total $     926,500
     Total parks and recreation $  2,673,800
 
500 - PUBLIC WORKS
1900 Director's office - total $       65,500
1920 Maintenance - total $  7,588,200
1925 Bridges - total $     637,300
1930 Transportation engineering services - total $  1,816,900
     Total public works $10,107,900
 
700 - TRANSFERS
     Total transfers    $10,634,000
 
PUBLIC ENTERPRISE
503 Golf fund - total                   $  1,942,200
 
PUBLIC UTILITIES
510 Water fund - total $12,181,500
520 Gas fund - total $47,329,100
530 Sewer fund - total $19,135,200
535 Stormwater fund - total $ 5,734,200
540 Steam fund - total $ 3,560,200
 
        Section 8.     That the administrative assistant or his designee shall provide the council with monthly budget reports and a final budget report within three months of the end of the budget year setting forth the original approved and the modified budgets for each line item included in this ordinance and explaining in narrative form the reasons for any significant differences between the original approved and the modified budgets.

        Section 9.     That the city will review all state and federal grants prior to acceptance to determine the program's funding status. A statement should be included on each grant resolution outlining items such as whether the grant represents a one time revenue, an ongoing funding source, or a partial funding source with a local match required. The future fiscal impact of the program on the budget will be discussed prior to acceptance of the grant.

                        That programs funded by state and federal grants shall be reduced or eliminated accordingly if state or federal revenues are reduced or eliminated and another funding source is not secured. Local funding will be available only after a full review to determine whether the program should be continued.

        Section 10.     That this ordinance shall take effect January 1, 2002.



STATEMENT OF PURPOSE: This ordinance establishes the city of Duluth budget and appropriates monies for the operation of city departments. Provisions of this ordinance are in conformance with the Duluth City Charter and Minnesota state law. The ordinance sets the 2002 budget at the same amount as that proposed by the mayor and approved in resolution form by the city council at its September 10, 2001, meeting for all funds, except the sewer, water and steam funds. Since the proposed budget was presented, the sewer utility has modified its proposal to reflect the impact of WLSSD treatment charges. The sewer utility budget was increased $92,900. The water Utility was decreased by $78,400 because a 2001 bond issue was not necessary. The steam utility budget was increased $50,000 to account for increases in the utility's insurance expense.