Regular 3.
Regular City Council Meeting
- Meeting Date:
- 04/24/2017
- TITLE
- Public Hearing and Resolution for FY17 3rd Quarter Budget Amendments
- PRESENTED BY:
- Andy Zoeller
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
Montana Code allows local governments to amend their fiscal year budgets by using the same method as used for the original budget adoption: public notice, public hearing and Council adopting a resolution. The following amendments are proposed for the 3rd quarter of FY 2017:
Fund 2190 - Fire Donations
The Fire department received donations from local companies (Phillips 66, ExxonMobil, Town Pump Foundation, Yellowstone County Lodging Assoc., Breakfast Exchange Club, Local 521, Alpha Omega Disaster Restoration, and St. Vincent) to purchase a variety of safety equipment and training and educational supplies. This budget authority is needed to authorize the spending of those donations. Fund balance is available for the additional expenses.
Fund 0100, 7770 - Batting Cage Replacement
On 04/13/15 the City Council approved an initiative to transfer one half to the net proceeds received at the batting cages to a separate fund, not to exceed $10,000. This fund was designated to be used for the future replacement of that equipment. In FY16, the net proceeds from the Batting Cages were $4,347.70. This budget amendment establishes the transfer authority needed to comply with the council initiative. Sufficient fund balance is available for this expenditure
Fund 6200-Information Technology
The IT Main Server & Storage Room houses all of the mission critical servers and data storage hardware for the entire organization. This includes hardware to support all of Public Safety, Finance, Utility Billing, Land, GIS, Public Works, Airport/MET, Planning, Administration, Legal, and more. The current systems are supported by a group of individual Uninterruptible Power Supply (UPS) units that are beginning to fail at a faster rate than expected. A new UPS unit is needed to ensure that all of the systems can remain operational long enough for power to be restored or the City Hall backup generator to take over. This is critical for the Communications Center/9-1-1 and all Public Safety entities. The UPS will be purchased with reserves that exist in the Information Technology accounts.
Fund 6200-Information Technology
The IT department would like to amend the budget to allow for sick and vacation payout. This is for the payout of sick and vacation benefits accrued by employees. Upon retirement, an employee is paid the remaining balance. There is sufficient working capital to cover this expense.
Fund 4250, 3360-Storm Sewer Funds
The Storm Sewer Construction fund was closed, and the remaining $15 needs to be transferred to the Debt Service. This budget amendment will create the necessary authority for the transfer.
Fund 4240 - Rose Park Construction Fund
The Rose Park Construction Fund would like additional budget authority to continue with the reconstruction of the pool bath house. The Parks Department has contracted with CTA for the design work, and plans to begin construction after the Summer of 2017. There is sufficient fund balance to cover the expenditure
Fund 1990 - South TIF
This budget amendment is to cover the debt service payments related to the bond payments. Bonds were issued after the FY17 budget was adopted, and debt service schedules were not available. Fund balances and on-going tax revenues are available to cover the additional expenses.
Fund 0100 - General Fund - Legal
The Legal department is requesting additional budget authority to fund the cost of hiring outside counsel. Fund balance is available to fund the additional expenses.
Fund 2030 - Downtown TIF
The Downtown TIF has experienced more requests for project incentives than what was anticipated. This request is for the additional budget authority to fund these projects. There is sufficient fund balance to cover the additional expenditures
Fund 0100 - General Fund - Non-departmental
This budget amendment is to fund the costs related to the search for a new City Administrator. Fund balance is available to fund the additional expenses.
Fund 2010 - East TIF
The EBURD is requesting budget authority to cover the payment of the attorney's fees approved at the 11/14/16 Council Meeting and 1/2 of the cost of a workforce housing study. There is sufficient fund balance to cover these expenditures
1990 - Tax Increment South
Public Works is requesting the budget authority be increased in the FY 2017 budget for the design of Midland Road. The purpose of this project is to design and reconstruct Midland Road from, Mullowney Lane to South Billings Boulevard. The contract amount for the design and construction administration services came in slightly over the estimate requiring a budget amendment for the difference. Funding for the project is provided by the SBURD TIF and there is sufficient cash for this project.
2010 - Tax Increment East
Public Works is requesting the budget authority be increased in the FY 2017 budget for a study to assess the feasibility of constructing a pedestrian crossing over or under Exposition Drive near MetraPark. The contract for the feasibility study was approved by Council on October 11, 2016 and this will provide the necessary budget authority. Funding for the project is provided by the EBURD TIF and there is sufficient cash for this project.
Fund 5440 - Landfill Construction
Public Works is requesting budget authority be increased in the FY 2017 budget to increase the budget amount of the design for the Landfill Reconfiguration for Drop Off Project. There is $250,000 in the FY 2017 budget for the design, but the recently approved Capital Improvement Plan included an expanded project in the FY 2018 budget to construct a new configuration that will limit all landfill traffic from entering the working portion of the landill and include a maintenance building that was previously in the FY 19 CIP. Thus, the design amount needs to be increased to encompass the larger scope of the project. The Solid Waste Fund has sufficient cash for this project.
Fund 5130 - Wastewater Construction
Public Works is requesting budget authority be increased in the FY 2017 budget for the Water Reclamation Facility Nutrient Upgrade, Expansion and Improvements Project. The construction contract was awarded by Council on January 23, 2017 in the amount of $61,681,033 and the construction bid came in higher than the amount in the budget. The amount of the bond proceeds was increased to fund the difference, but budget authority is required. The Wastewater Fund has sufficient cash through the sale of bonds for this project.
Fund 5170 - Wastewater 2017 Revenue Bonds and Fund 5130 - Wastewater Construction
Public Works is requesting budget authority be increased in the FY 2017 budget to transfer cash from the sale of bonds for the Water Reclamation Facility Nutrient Upgrade, Expansion and Improvements Project from the bond fund to the construction fund. Cash will be transferred from the wastewater bond fund to the construction fund as cash is expended for the project.
Fund 2190 - Fire Donations
The Fire department received donations from local companies (Phillips 66, ExxonMobil, Town Pump Foundation, Yellowstone County Lodging Assoc., Breakfast Exchange Club, Local 521, Alpha Omega Disaster Restoration, and St. Vincent) to purchase a variety of safety equipment and training and educational supplies. This budget authority is needed to authorize the spending of those donations. Fund balance is available for the additional expenses.
Fund 0100, 7770 - Batting Cage Replacement
On 04/13/15 the City Council approved an initiative to transfer one half to the net proceeds received at the batting cages to a separate fund, not to exceed $10,000. This fund was designated to be used for the future replacement of that equipment. In FY16, the net proceeds from the Batting Cages were $4,347.70. This budget amendment establishes the transfer authority needed to comply with the council initiative. Sufficient fund balance is available for this expenditure
Fund 6200-Information Technology
The IT Main Server & Storage Room houses all of the mission critical servers and data storage hardware for the entire organization. This includes hardware to support all of Public Safety, Finance, Utility Billing, Land, GIS, Public Works, Airport/MET, Planning, Administration, Legal, and more. The current systems are supported by a group of individual Uninterruptible Power Supply (UPS) units that are beginning to fail at a faster rate than expected. A new UPS unit is needed to ensure that all of the systems can remain operational long enough for power to be restored or the City Hall backup generator to take over. This is critical for the Communications Center/9-1-1 and all Public Safety entities. The UPS will be purchased with reserves that exist in the Information Technology accounts.
Fund 6200-Information Technology
The IT department would like to amend the budget to allow for sick and vacation payout. This is for the payout of sick and vacation benefits accrued by employees. Upon retirement, an employee is paid the remaining balance. There is sufficient working capital to cover this expense.
Fund 4250, 3360-Storm Sewer Funds
The Storm Sewer Construction fund was closed, and the remaining $15 needs to be transferred to the Debt Service. This budget amendment will create the necessary authority for the transfer.
Fund 4240 - Rose Park Construction Fund
The Rose Park Construction Fund would like additional budget authority to continue with the reconstruction of the pool bath house. The Parks Department has contracted with CTA for the design work, and plans to begin construction after the Summer of 2017. There is sufficient fund balance to cover the expenditure
Fund 1990 - South TIF
This budget amendment is to cover the debt service payments related to the bond payments. Bonds were issued after the FY17 budget was adopted, and debt service schedules were not available. Fund balances and on-going tax revenues are available to cover the additional expenses.
Fund 0100 - General Fund - Legal
The Legal department is requesting additional budget authority to fund the cost of hiring outside counsel. Fund balance is available to fund the additional expenses.
Fund 2030 - Downtown TIF
The Downtown TIF has experienced more requests for project incentives than what was anticipated. This request is for the additional budget authority to fund these projects. There is sufficient fund balance to cover the additional expenditures
Fund 0100 - General Fund - Non-departmental
This budget amendment is to fund the costs related to the search for a new City Administrator. Fund balance is available to fund the additional expenses.
Fund 2010 - East TIF
The EBURD is requesting budget authority to cover the payment of the attorney's fees approved at the 11/14/16 Council Meeting and 1/2 of the cost of a workforce housing study. There is sufficient fund balance to cover these expenditures
1990 - Tax Increment South
Public Works is requesting the budget authority be increased in the FY 2017 budget for the design of Midland Road. The purpose of this project is to design and reconstruct Midland Road from, Mullowney Lane to South Billings Boulevard. The contract amount for the design and construction administration services came in slightly over the estimate requiring a budget amendment for the difference. Funding for the project is provided by the SBURD TIF and there is sufficient cash for this project.
2010 - Tax Increment East
Public Works is requesting the budget authority be increased in the FY 2017 budget for a study to assess the feasibility of constructing a pedestrian crossing over or under Exposition Drive near MetraPark. The contract for the feasibility study was approved by Council on October 11, 2016 and this will provide the necessary budget authority. Funding for the project is provided by the EBURD TIF and there is sufficient cash for this project.
Fund 5440 - Landfill Construction
Public Works is requesting budget authority be increased in the FY 2017 budget to increase the budget amount of the design for the Landfill Reconfiguration for Drop Off Project. There is $250,000 in the FY 2017 budget for the design, but the recently approved Capital Improvement Plan included an expanded project in the FY 2018 budget to construct a new configuration that will limit all landfill traffic from entering the working portion of the landill and include a maintenance building that was previously in the FY 19 CIP. Thus, the design amount needs to be increased to encompass the larger scope of the project. The Solid Waste Fund has sufficient cash for this project.
Fund 5130 - Wastewater Construction
Public Works is requesting budget authority be increased in the FY 2017 budget for the Water Reclamation Facility Nutrient Upgrade, Expansion and Improvements Project. The construction contract was awarded by Council on January 23, 2017 in the amount of $61,681,033 and the construction bid came in higher than the amount in the budget. The amount of the bond proceeds was increased to fund the difference, but budget authority is required. The Wastewater Fund has sufficient cash through the sale of bonds for this project.
Fund 5170 - Wastewater 2017 Revenue Bonds and Fund 5130 - Wastewater Construction
Public Works is requesting budget authority be increased in the FY 2017 budget to transfer cash from the sale of bonds for the Water Reclamation Facility Nutrient Upgrade, Expansion and Improvements Project from the bond fund to the construction fund. Cash will be transferred from the wastewater bond fund to the construction fund as cash is expended for the project.
ALTERNATIVES ANALYZED
The Council may:
- Approve the requested budget amendments; or
- Do not approve the requested budget amendments, which may place the City in violation of Montana law.
FINANCIAL IMPACT
The requested budget amendments will be funded by reserves and cash on hand, as described within the budget resolution exhibit and above.
RECOMMENDATION
Staff recommends that the City Council conduct a public hearing and adopt the resolution that approves 3rd quarter budget amendments.