Regular 2.
Regular City Council Meeting
- Meeting Date:
- 08/28/2017
- TITLE
- Public Hearing and Resolution for FY17 Budget Amendments
- PRESENTED BY:
- Andy Zoeller
- Department:
- City Hall Administration
Presentation:
No
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 FY 2017:
General Fund (Administration) - The General fund needs a budget amendment to allow for the increased expenditure related to the City Administrator contract addendum that was approved at the 11/14/2016 regular business meeting. General fund reserves are sufficient to cover the expenditures.
Fund 2010 East TIFD - The East TIF is requesting to amend the budget authority to cover the additional development incentives that were paid in Fiscal Year 2017. The two incentive payments (First Interstate and Boyer) are calculated based upon terms within the original contracts. The calculations are a function of tax revenues received by the district, and as a result, are difficult to budget precisely. The final portion of the requested amendment is related to the development incentive provided to White Heating and Air Conditioning approved at the 12/19/2016 regular business meeting. There are sufficient funds to cover the expenditures.
Fund 6270 City Health Insurance Fund - The City Health Insurance fund is requesting a budget amendment to increase the budget to allow for the additional health and prescription claims cost paid in Fiscal Year 2017. There are sufficient reserves to cover the expenditures.
Fund 1990 South TIFD - The South Tax Increment Fund is requesting a budget amendment to cover the costs related to Midland road construction, bond issuance costs, and a transfer to close out a CTEP grant. There is sufficient fund balance available to cover the additional expenditures.
Fund 5210 Parking - The Parking division is requesting the budget authority to cover to costs related to purchasing credit card capable parking meters. The contract was awarded by City Council at the April 24, 2017 regular business meeting. There is sufficient working capital available to cover the costs.
General Fund (Administration) - The General fund needs a budget amendment to allow for the increased expenditure related to the City Administrator contract addendum that was approved at the 11/14/2016 regular business meeting. General fund reserves are sufficient to cover the expenditures.
Fund 2010 East TIFD - The East TIF is requesting to amend the budget authority to cover the additional development incentives that were paid in Fiscal Year 2017. The two incentive payments (First Interstate and Boyer) are calculated based upon terms within the original contracts. The calculations are a function of tax revenues received by the district, and as a result, are difficult to budget precisely. The final portion of the requested amendment is related to the development incentive provided to White Heating and Air Conditioning approved at the 12/19/2016 regular business meeting. There are sufficient funds to cover the expenditures.
Fund 6270 City Health Insurance Fund - The City Health Insurance fund is requesting a budget amendment to increase the budget to allow for the additional health and prescription claims cost paid in Fiscal Year 2017. There are sufficient reserves to cover the expenditures.
Fund 1990 South TIFD - The South Tax Increment Fund is requesting a budget amendment to cover the costs related to Midland road construction, bond issuance costs, and a transfer to close out a CTEP grant. There is sufficient fund balance available to cover the additional expenditures.
Fund 5210 Parking - The Parking division is requesting the budget authority to cover to costs related to purchasing credit card capable parking meters. The contract was awarded by City Council at the April 24, 2017 regular business meeting. There is sufficient working capital available to cover the costs.
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 vary by fund and be funded by operating revenues or reserves as described in the budget resolution exhibit and above.
RECOMMENDATION
Staff recommends that the City Council conduct a public hearing and approve the resolution approving and adopting the budget amendments for Fiscal Year 2017.