The FY 2013 budget included a transfer of $1,838,096 from the SID Revolving Loan Fund to the General Fund.  There was then an approved transfer from the General Fund to the 800 MHz Fund in the amount of $600,000 to upgrade the City's current radios to be compliant with a new operating system.  Council also approved using $87,650 contingency to assist with the costs associated with the upgraded slides at Rose Park.  There is a remaining balance of $1,150,446 in the Contingency account.

Following are four recommended uses of the funds remaining in the FY 13 Council Contingency budget.

1. Purchase New World software for Public Safety in the amount of $600,000. The current software is obsolete and support from New World for this software will discontinue at some point in the near future.
2. Upgrade City Hall lighting for a cost of $81,000 with the energy savings pay back over 12 years. The lighting in the parking garage at City Hall has already been replaced, so completing the City Hall lighting upgrade will make the City eligible for a rebate of ~$92,000 from NorthWestern Energy. The Parking Fund will receive ~$52,000 and the General Fund ~$40,000.
3. Upgrade the lighting in the seven fire stations and replace the boiler in fire station 2 for a total cost of $216,000. The lighting upgrades for the 7 stations have a weighted average pay back of 11 years. These lighting upgrades may also be eligible for a NorthWestern Energy rebate.
4. Establish a Home Reinvestment Revolving Loan program in Community Development in the amount of $250,000. 

If Council approves all four projects in the recommended amounts, there will be a remaining account balance of $3,446.

Council may approve or not approve using Council Contingency for the recommended four projects.

The financial impacts are explained above.

Staff recommends that the City Council approve the use of Council Contingency for the four recommended projects in the total amount of $1,147,000.