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Item 2.
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| City Council Regular | |
| Date: | 07/12/2021 |
| Title: | FY21 Budget Amendments |
| Presented by: | Andy Zoeller, Finance Director |
| Department: | Finance |
| Presentation: | Yes |
RECOMMENDATION
Staff recommends City Council hold a public hearing and approve the FY21 budget amendments
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Equipment Replacement Fund
On February 22, 2021, City Council approved a change order with Pierce Mfg to purchase an additional Fire Engine to replace the one that was totaled in an accident. The staff memo for that meeting indicated that, if approved, a budget amendment would be needed for the additional expenditure in FY21. The engine that was totaled was scheduled to be replaced in FY2024. The funds which had been set aside for that replacement will be used to purchase the new engine. A budget amendment of $612,850 is needed in the Equipment Replacement Fund for FY21.
East Billings Tax Increment Fund
On October 26, 2020, City Council approved a TIF expenditure for Belle Chemical in the amount of $44,532. The staff memo from that meeting indicated that a budget amendment would be needed if the project was approved and completed in FY21. The improvements to the property were completed by May 10, 2021. As a result, a budget amendment is needed for the East Billings TIF fund of $44,532. Existing cash on hand will be used for the additional expense. Current cash balance in the East TIF fund is $750,000.
Parks Program Fund
The FY 2021 CIP included a project to construct a vault restroom facility at High Sierra Park. The CIP identified that the project would be funded with Parks Programs cash-in-lieu funds of $25,000. While this project was included in the CIP, it was inadvertently excluded from the FY21 budget. As a result, the Parks Program fund needs a budget amendment for the construction of this restroom which was completed in December 2020 and is requesting the budget authority be established for this project.
The Parks Department received donations totaling $18,900 for memorial benches. The Parks Department has purchased the benches and is requesting the budget authority for the expenditure of the donated amounts.
Dog Park Construction Fund
The Friends of Billings Dog Park donated $44,400 for the construction of a shade structure and fencing at the Dog Park at Centennial Park. A budget amendment is needed for the expenditure of these donations.
Public Safety Fund
The Police Department requested, and City Council approved, the unspent overtime amount of $250,000 be carried forward into FY22. As a result of moving this budget forward into FY22, staff is recommending that the FY21 budget be reduced by that same amount.
Gas Tax Fund
Public Works is requesting budget authority be increased in the FY 2021 budget for the construction of WO 20-15 Wicks Lane Improvements. Improvements consist of approximately 2,400 linear feet of street improvements, including installation of new curb and gutter, sidewalk, drive approaches and pedestrian ramps; pavement widening, asphalt mill and overlay, and related storm drain improvements on Wicks Lane between Bench Boulevard and Hawthorne Lane. Council was previously notified that the bid came in higher than estimated and a budget amendment was forthcoming. The overage will utilize FY21 BARSAA gas tax revenues which also came in higher than estimated. Public Works has sufficient cash in its BARSAA Gas Tax Fund for this project.
Special Improvement District Construction Fund
Public Works is requesting budget authority be increased in the FY 2021 budget for the construction of SID 1417 Elysian Road. Improvements include the construction of streetlights within Annafeld Subdivision 3rd Filing and Annafeld North Subdivision 1st Filing, as well as the construction of Elysian Road. Public Works includes $1 million of SID projects annually in the Capital Improvement Plan and budget for the construction of unknown SIDs that may be created during the year. SID 1417 Elysian Road is a $2.5 million SID and budget authority is needed for $1.5M in excess of the annual budgeted amount. Council was notified at the time of bid award that a budget amendment would be forthcoming. There is no City funding on this project. It is funded through the sale of bonds and assessed back to property owners benefiting from the improvements.
Water Fund
Public Works is requesting budget authority be increased in the FY 2021 budget for several projects. WO 18-22 Leavens Reservoir Waterline and Improvements project had a budget for change orders in FY 2020, but the change orders were initiated in FY 2021 and a budget amendment is needed to reestablish the budget in the FY 2021 budget. WO 21-39 Water Treatment Plant Rip Rap and WO 19-12 West End Reservoir design and land purchase was also budgeted in FY 2020, but were unable to be started until FY 2021. Thus, a budget amendment is needed to reestablish the budget in FY 2021 for both of these projects. A significant amount of the water pipe replacement program was utilized for water main replacement on the Hallowell project and the bid for WO 21-01 Water Main Replacements exceeded the remaining budget amount. Council was notified at the time of the bid award that a budget amendment was forthcoming and the FY 2022 water main replacement budget would be reduced to fund the overage, since Public Works received good bid prices and desired to award all bid schedules in FY 2021. Public Works has sufficient cash in its water fund for all of these projects.
South Tax Increment Fund
Public Works is requesting budget authority be increased in the FY 2021 budget for the construction of WO 20-30 Hallowell Lane Improvements. Improvements consist of street widening, extensions of sewer and storm drain mains and installation of streetlights, sidewalks, drive approaches, alley approaches, accessibility ramps and miscellaneous related improvements. The low bid exceeded the budgeted amount. SBURA desired to still award the project and Council was notified at time of bid award of both the overage and need for a future budget amendment. Council also requested and approved a $350,000 change order to add the construction of Bruce Lane from Hallowell Lane to Stephens Lane to the project at the June 28, 2021 Council meeting. The South Tax Increment Financing District Fund has sufficient cash for this budget amendment.
Park Maintenance Districts
The Parks Department is requesting $115,000 of additional budget authority for increased watering occurring in FY21. The Park Maintenance Districts budget water expenses based upon historical averages. Because of the dry spring this year, water usage within our PMD's is higher than what historically has been used. Reserves have been used to pay the increased bills.
Public Safety Fund - Fire Department
The Fire Department is requesting additional budget authority for Overtime and Capital Outlay. The Montana DNRC pays the City of Billings for fire assistance. The payroll expenses incurred for this contract work is initially incurred by the City of Billings, but is reimburesed by the DNRC. For FY21, the BFD incurred an additional $170,092 in reimbursed expenses. Also, during FY21 the Fire Department received a warranty check for the replacement of a breathing tank compressor. The compressor was an unplanned replacement, which was mostly covered by the warranty check of $82,825. The Fire Department is requesting increased budget authority of 252,917 for these two reimbursed items.
On February 22, 2021, City Council approved a change order with Pierce Mfg to purchase an additional Fire Engine to replace the one that was totaled in an accident. The staff memo for that meeting indicated that, if approved, a budget amendment would be needed for the additional expenditure in FY21. The engine that was totaled was scheduled to be replaced in FY2024. The funds which had been set aside for that replacement will be used to purchase the new engine. A budget amendment of $612,850 is needed in the Equipment Replacement Fund for FY21.
East Billings Tax Increment Fund
On October 26, 2020, City Council approved a TIF expenditure for Belle Chemical in the amount of $44,532. The staff memo from that meeting indicated that a budget amendment would be needed if the project was approved and completed in FY21. The improvements to the property were completed by May 10, 2021. As a result, a budget amendment is needed for the East Billings TIF fund of $44,532. Existing cash on hand will be used for the additional expense. Current cash balance in the East TIF fund is $750,000.
Parks Program Fund
The FY 2021 CIP included a project to construct a vault restroom facility at High Sierra Park. The CIP identified that the project would be funded with Parks Programs cash-in-lieu funds of $25,000. While this project was included in the CIP, it was inadvertently excluded from the FY21 budget. As a result, the Parks Program fund needs a budget amendment for the construction of this restroom which was completed in December 2020 and is requesting the budget authority be established for this project.
The Parks Department received donations totaling $18,900 for memorial benches. The Parks Department has purchased the benches and is requesting the budget authority for the expenditure of the donated amounts.
Dog Park Construction Fund
The Friends of Billings Dog Park donated $44,400 for the construction of a shade structure and fencing at the Dog Park at Centennial Park. A budget amendment is needed for the expenditure of these donations.
Public Safety Fund
The Police Department requested, and City Council approved, the unspent overtime amount of $250,000 be carried forward into FY22. As a result of moving this budget forward into FY22, staff is recommending that the FY21 budget be reduced by that same amount.
Gas Tax Fund
Public Works is requesting budget authority be increased in the FY 2021 budget for the construction of WO 20-15 Wicks Lane Improvements. Improvements consist of approximately 2,400 linear feet of street improvements, including installation of new curb and gutter, sidewalk, drive approaches and pedestrian ramps; pavement widening, asphalt mill and overlay, and related storm drain improvements on Wicks Lane between Bench Boulevard and Hawthorne Lane. Council was previously notified that the bid came in higher than estimated and a budget amendment was forthcoming. The overage will utilize FY21 BARSAA gas tax revenues which also came in higher than estimated. Public Works has sufficient cash in its BARSAA Gas Tax Fund for this project.
Special Improvement District Construction Fund
Public Works is requesting budget authority be increased in the FY 2021 budget for the construction of SID 1417 Elysian Road. Improvements include the construction of streetlights within Annafeld Subdivision 3rd Filing and Annafeld North Subdivision 1st Filing, as well as the construction of Elysian Road. Public Works includes $1 million of SID projects annually in the Capital Improvement Plan and budget for the construction of unknown SIDs that may be created during the year. SID 1417 Elysian Road is a $2.5 million SID and budget authority is needed for $1.5M in excess of the annual budgeted amount. Council was notified at the time of bid award that a budget amendment would be forthcoming. There is no City funding on this project. It is funded through the sale of bonds and assessed back to property owners benefiting from the improvements.
Water Fund
Public Works is requesting budget authority be increased in the FY 2021 budget for several projects. WO 18-22 Leavens Reservoir Waterline and Improvements project had a budget for change orders in FY 2020, but the change orders were initiated in FY 2021 and a budget amendment is needed to reestablish the budget in the FY 2021 budget. WO 21-39 Water Treatment Plant Rip Rap and WO 19-12 West End Reservoir design and land purchase was also budgeted in FY 2020, but were unable to be started until FY 2021. Thus, a budget amendment is needed to reestablish the budget in FY 2021 for both of these projects. A significant amount of the water pipe replacement program was utilized for water main replacement on the Hallowell project and the bid for WO 21-01 Water Main Replacements exceeded the remaining budget amount. Council was notified at the time of the bid award that a budget amendment was forthcoming and the FY 2022 water main replacement budget would be reduced to fund the overage, since Public Works received good bid prices and desired to award all bid schedules in FY 2021. Public Works has sufficient cash in its water fund for all of these projects.
South Tax Increment Fund
Public Works is requesting budget authority be increased in the FY 2021 budget for the construction of WO 20-30 Hallowell Lane Improvements. Improvements consist of street widening, extensions of sewer and storm drain mains and installation of streetlights, sidewalks, drive approaches, alley approaches, accessibility ramps and miscellaneous related improvements. The low bid exceeded the budgeted amount. SBURA desired to still award the project and Council was notified at time of bid award of both the overage and need for a future budget amendment. Council also requested and approved a $350,000 change order to add the construction of Bruce Lane from Hallowell Lane to Stephens Lane to the project at the June 28, 2021 Council meeting. The South Tax Increment Financing District Fund has sufficient cash for this budget amendment.
Park Maintenance Districts
The Parks Department is requesting $115,000 of additional budget authority for increased watering occurring in FY21. The Park Maintenance Districts budget water expenses based upon historical averages. Because of the dry spring this year, water usage within our PMD's is higher than what historically has been used. Reserves have been used to pay the increased bills.
Public Safety Fund - Fire Department
The Fire Department is requesting additional budget authority for Overtime and Capital Outlay. The Montana DNRC pays the City of Billings for fire assistance. The payroll expenses incurred for this contract work is initially incurred by the City of Billings, but is reimburesed by the DNRC. For FY21, the BFD incurred an additional $170,092 in reimbursed expenses. Also, during FY21 the Fire Department received a warranty check for the replacement of a breathing tank compressor. The compressor was an unplanned replacement, which was mostly covered by the warranty check of $82,825. The Fire Department is requesting increased budget authority of 252,917 for these two reimbursed items.
ALTERNATIVES
City Council may:
- Approve; or,
- Not Approve the FY21 budget amendments
FISCAL EFFECTS
The following funds are impacted by they budget amendments:
| Fund Name | Requested Increase/(Decrease) |
| Equipment Replacement | $612,850 |
| East Billings Tax Increment | $44,532 |
| Parks Program Fund | $43,900 |
| Dog Park Construction | $44,400 |
| Public Safety Fund | $2,917 |
| Gas Tax Fund | $500,000 |
| SID Construction Fund | $1,500,000 |
| Water Fund | $1,807,000 |
| South Tax Increment Fund | $1,030,000 |
| Park Maintenance Districts | $115,000 |