Various City Funds have incurred expenses that are greater than anticipated when the FY 13 budget was developed almost 18 months ago. Budget amendments are accomplished in the same manner as the original budget: public hearing and resolution. Staff is requesting that the Council conduct a public hearing and approve the attached resolution that will amend various Funds for the FY 13 budget year. All of the Funds have adequate reserves or other revenue sources to accommodate the added expenses, as is explained for each item.

Utility and water costs for various Park Maintenance Districts were higher than were originally anticipated and budgeted in FY13. Fund reserves will be used for these added costs. Reserves will be replenished in future years by increasing district charges to property owners within the districts.

City offices including Planning, Code Enforcement, Building and, Community Development are moving from the current location in the Library to the Miller Building. Costs associated with the move include network fiber and telephone line installation. Also, new and larger network fiber lines are needed at the Parks and Recreation Center, Public Works Administration office at the Depot, and the 9-1-1 Center in order to provide continuous City services. Costs will be split between the Central Telephone Fund and the Information Technology Fund.  Yellowstone County will participate in the project and reimburse the City almost $85,000 in FY 14.  The remaining expenses will come from fund reserves to be recovered in future years with increased charges to the departments that are benefitting from the improvements. Council approved the construction contracts for this work on April 22, 2013.

Site development for the new library building began in FY12. The building construction contract wasn't executed by the end of FY 12 and no budget authority was created in the original FY13 budget due to not knowing which contracts would be approved by the end of FY12. Bonds were sold for the new library and will be sufficient to pay for construction costs. This budget amendment is for the construction contracts that were executed in FY 13 and for the bond issuance costs.


The Library Fund will be paying for a new security system in the new library building. The City Council approved a contract for this purchase on April 22, 2013. Reserves will be used to pay for these costs.

City staff is requesting a budget amendment to its Airport Improvement Program (AIP) Grant Fund. On April 8, 2013, Council approved the bid award for the Cargo Ramp Slot Four Expansion Project that adds ramp space to accommodate FedEx's move to the west side of the Airport to use the larger cargo ramps due to their conversion to larger aircraft. Airport cash is sufficient to pay for this project up front. AIP Grant Funds will reimburse 90% of the costs at a later date.

Parking completed a retail space remodel at Park I and special assessment costs exceeded the budgeted amounts in FY13.  Also, costs associated with debt refinancing in order to obtain a lower interest rate were incurred. Bond proceeds and reserves will be used for the expenses.

City Council approved purchasing land beside the Police Evidence Building on Midland Road for future expansion. General Fund reserves will be used.  Lower debt payments from advance refunding the BOC bonds will help replenish the reserves.

City staff is requesting a Downtown Tax Increment District budget amendment for costs related to the construction of the Empire Parking Garage. The FY 13 budgeted amount was lower than actual cost.  Bond proceeds will be used to pay these costs.

Bond issuance costs were incurred while refinancing the debt associated with the Billings Operations Center. Bond proceeds were used to pay for these costs.

During FY13, more investment income has been earned due to higher rates of return than anticipated. The Cemetery Perpetual Care Fund transfers these earnings to the General Fund to be used by the Cemetery for operating costs. An increase in the transfer in/out is being requested to accommodate the additional money that is available in order to comply with the Cemetery Perpetual Care Fund purpose and state law. The increase in the transfer out expense corresponds with the increase in investment earnings. Therefore, no reserves were used.

One of the Park Program Funds uses revenues from Kiwanis' license plates to pay for trees to be planted around the City. Trees were purchased in FY13 in excess of amounts budgeted. Reserves will be used to fund the additional trees.

City staff is requesting additional budget authority for assessment costs for the Rimrock Road – Forsythia to Shiloh construction project. Property owners will bear a portion of the sidewalk construction costs and budget authority is needed in the Sidewalk Construction Fund for the expenses. These costs will be recovered in FY 14 from bond sale proceeds. Until bonds can be sold, interim financing will come from an interfund loan from the gas tax fund.

In FY12, the South Park gazebo was budgeted, but the contract was not signed until FY13. Work was completed in FY13. General Fund reserves were used to fund this project.

The Council may: Approve the requested budget amendments; or Not approve the requested budget amendments, which would put the City in violation of Montana Code Annotated.

The requested budget amendments will be funded by reserves and existing revenues as indicated.

Staff recommends that the City Council conduct a public hearing and approve the resolution approving and adopting the budget amendments for Fiscal Year 2012/2013.