Regular 7.
Regular City Council Meeting
- Meeting Date:
- 10/13/2009
- TITLE
- Public Hearing and Approval of Resolution Approving and Adopting First Quarter Budget Amendments for Fiscal Year 2009/2010
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
First Quarter Budget amendments are requested for the following:
Expanded North 27th Street Tax Increment District Fund (203) needs to create the FY10 budget as approved by Downtown Billings Partnership for tax revenue for $214,870, a management services expense for $98,580, a project expense for $75,000, service charges for $9,000, and a district expansion services expense for $15,000.
Public Safety Fund (150) – Police needs to increase the personnel costs budget by $345,000 to account for the increase due to the implementation of the new Collective Bargaining Agreement with MPEA. There is also a transfer from the General Fund to the Public Safety fund needed.
Motor Pool Fund (601) will add two new Mechanic II positions to maintain Fire equipment. These positions will be funded by Public Safety Fire through a monthly charge for services.
The capital expenditure for a vehicle was budgeted in Public Works Engineering and should have been budgeted in the Capital Replacements Fund. Therefore, the Public Works Engineering Fund (670) will be reduced and the Capital Replacements Fund (640) will be increased.
General Fund (010)-PRPL needs a budget amendment for a Pioneer Park Master Plan which will use General Fund reserves.
MET Transit Fund (412) desires to move budget authority to purchase two paratransit vans, originally budgeted with ARRA Funds. The budget adjustment would re-establish the budget authority for the vans in the regular capital account that MET uses for its annual FTA grant funding. These two vans are eligible for federal reimbursement. The local match is 20% and there is sufficient money in MET funds to meet the 20% match.
MET Transit Funds (411 & 571) need to establish budget authority to transfer ARRA grant funds to the operating fund as provided by recent grant revisions. The Federal Transportation Administration ARRA grant is being revised to reflect the use of a portion of the grant monies for operational costs instead of capital. Operating costs will remain as budgeted.
The Airport Fund (407) needs to establish budget authority to purchase a new Airport Ramp Sweeper that is used primarily to clear the commercial aircraft parking ramp, taxiways, taxi lanes, and terminal streets. The sweeper was budgeted in FY 2009, but was not approved by City Council until July 2009 due to an advertising deadline mishap. The Airport has sufficient reserves in its Passenger Facility Charge (PFC) account for this purchase.
The Airport Fund (563) needs to establish budget authority for a new highway access on the Airport’s west end. The west end access will be relocated approximately 300 feet west of the current access and will better accommodate tractor/trailer units. The project was budgeted in FY 2009, but was not approved by City Council until July 2009 due to an advertising deadline mishap. The Airport has sufficient reserves in its capital account for this project.
The Airport Fund (563) needs to establish budget authority to remodel the Airport Police office area. The project was budgeted in FY 2009, but was not awarded until FY 2010 due to a delay in the bid award process. The Airport has sufficient reserves in its capital account for this project.
The Airport Fund (563) needs to establish budget authority to purchase and equip a brush/rescue truck from the City of Billings Fire Department. The project was approved by the ERP committee and budgeted in FY 2009 but was not available from the Fire Department until September 2009, since the Fire Department’s replacement truck did not arrive until then. The Airport has sufficient reserves in its capital account for this purchase.
The Airport Fund (562) needs to establish budget authority to replace the Airport entrance sign. The purchase was budgeted in FY 2009, but was not awarded until FY 2010 due to the State of Montana Highway Three and Roundabout constructions delays. In September 2008, the Airport received $97,900 from the Montana Department of Transportation to replace the Airport entrance sign that was removed during construction. The Airport has sufficient reserves in its capital account for this purchase.
The General Fund (010)-Code Enforcement needs additional budget authority to cover the cost of cleanup for the burned property located at 314 S. 26th Street which will use General Fund reserves. The property owner is being billed for the cleanup and a tax lien will be placed agains the property if necessary to get reimbursement.
The HazMat Fund (220) for the State Regional HazMat Team has received money from the state of Montana. This request is to spend the state funds for attendance at the Technical Advisory Group Meetings.
The Community Development Fund (278) for the Wells Fargo loan needs budget authority to pay back the loan. The program is for second mortgages to do home improvements. The loan has been in existence for over six years with only three second mortgages given. The first and second loans can equal no more than 95% of appraised value and the interest rate is not competitive with the local banks. The loans are also governed by a (health and safety ) priority list for expending the money from this program. Community Development is making approximately $222 interest payments every quarter to Wells Fargo. Therefore, Community Development recommends facilitating repayment of the loan due to lack of community interest in low-interest loans subject to the regulations of the Housing Rehabilitation program.
The Community Development Fund (278) has received money for grant writing and environmental reviews. This is a request to spend these funds.
Downtown TIFD Fund (202) needs additional budget authority for projects established through the development agreement with Downtown Billings Partnership, Inc. Added costs are funded with TIF reserves.
Water Construction projects budgeted in FY 09 that were not started need to be re-budgeted in FY 10. Reserves will be used for the L-Structure (Water Plant Intake) change order and water line to Staples. The Zone 4 project will be funded with an SRF loan.
The South TIFD needs a budget amendment for LED change orders. The funding is from bond sale proceeds
Arterial Fund projects budgeted in FY 09 that were not started need to be re-budgeted in FY 10. The Alkali Creek project will be funded by a grant and Arterial reserves. Both the Inner Belt Loop and Rimrock (17th-Forsythia) designs will be funded by reserves.
Expanded North 27th Street Tax Increment District Fund (203) needs to create the FY10 budget as approved by Downtown Billings Partnership for tax revenue for $214,870, a management services expense for $98,580, a project expense for $75,000, service charges for $9,000, and a district expansion services expense for $15,000.
Public Safety Fund (150) – Police needs to increase the personnel costs budget by $345,000 to account for the increase due to the implementation of the new Collective Bargaining Agreement with MPEA. There is also a transfer from the General Fund to the Public Safety fund needed.
Motor Pool Fund (601) will add two new Mechanic II positions to maintain Fire equipment. These positions will be funded by Public Safety Fire through a monthly charge for services.
The capital expenditure for a vehicle was budgeted in Public Works Engineering and should have been budgeted in the Capital Replacements Fund. Therefore, the Public Works Engineering Fund (670) will be reduced and the Capital Replacements Fund (640) will be increased.
General Fund (010)-PRPL needs a budget amendment for a Pioneer Park Master Plan which will use General Fund reserves.
MET Transit Fund (412) desires to move budget authority to purchase two paratransit vans, originally budgeted with ARRA Funds. The budget adjustment would re-establish the budget authority for the vans in the regular capital account that MET uses for its annual FTA grant funding. These two vans are eligible for federal reimbursement. The local match is 20% and there is sufficient money in MET funds to meet the 20% match.
MET Transit Funds (411 & 571) need to establish budget authority to transfer ARRA grant funds to the operating fund as provided by recent grant revisions. The Federal Transportation Administration ARRA grant is being revised to reflect the use of a portion of the grant monies for operational costs instead of capital. Operating costs will remain as budgeted.
The Airport Fund (407) needs to establish budget authority to purchase a new Airport Ramp Sweeper that is used primarily to clear the commercial aircraft parking ramp, taxiways, taxi lanes, and terminal streets. The sweeper was budgeted in FY 2009, but was not approved by City Council until July 2009 due to an advertising deadline mishap. The Airport has sufficient reserves in its Passenger Facility Charge (PFC) account for this purchase.
The Airport Fund (563) needs to establish budget authority for a new highway access on the Airport’s west end. The west end access will be relocated approximately 300 feet west of the current access and will better accommodate tractor/trailer units. The project was budgeted in FY 2009, but was not approved by City Council until July 2009 due to an advertising deadline mishap. The Airport has sufficient reserves in its capital account for this project.
The Airport Fund (563) needs to establish budget authority to remodel the Airport Police office area. The project was budgeted in FY 2009, but was not awarded until FY 2010 due to a delay in the bid award process. The Airport has sufficient reserves in its capital account for this project.
The Airport Fund (563) needs to establish budget authority to purchase and equip a brush/rescue truck from the City of Billings Fire Department. The project was approved by the ERP committee and budgeted in FY 2009 but was not available from the Fire Department until September 2009, since the Fire Department’s replacement truck did not arrive until then. The Airport has sufficient reserves in its capital account for this purchase.
The Airport Fund (562) needs to establish budget authority to replace the Airport entrance sign. The purchase was budgeted in FY 2009, but was not awarded until FY 2010 due to the State of Montana Highway Three and Roundabout constructions delays. In September 2008, the Airport received $97,900 from the Montana Department of Transportation to replace the Airport entrance sign that was removed during construction. The Airport has sufficient reserves in its capital account for this purchase.
The General Fund (010)-Code Enforcement needs additional budget authority to cover the cost of cleanup for the burned property located at 314 S. 26th Street which will use General Fund reserves. The property owner is being billed for the cleanup and a tax lien will be placed agains the property if necessary to get reimbursement.
The HazMat Fund (220) for the State Regional HazMat Team has received money from the state of Montana. This request is to spend the state funds for attendance at the Technical Advisory Group Meetings.
The Community Development Fund (278) for the Wells Fargo loan needs budget authority to pay back the loan. The program is for second mortgages to do home improvements. The loan has been in existence for over six years with only three second mortgages given. The first and second loans can equal no more than 95% of appraised value and the interest rate is not competitive with the local banks. The loans are also governed by a (health and safety ) priority list for expending the money from this program. Community Development is making approximately $222 interest payments every quarter to Wells Fargo. Therefore, Community Development recommends facilitating repayment of the loan due to lack of community interest in low-interest loans subject to the regulations of the Housing Rehabilitation program.
The Community Development Fund (278) has received money for grant writing and environmental reviews. This is a request to spend these funds.
Downtown TIFD Fund (202) needs additional budget authority for projects established through the development agreement with Downtown Billings Partnership, Inc. Added costs are funded with TIF reserves.
Water Construction projects budgeted in FY 09 that were not started need to be re-budgeted in FY 10. Reserves will be used for the L-Structure (Water Plant Intake) change order and water line to Staples. The Zone 4 project will be funded with an SRF loan.
The South TIFD needs a budget amendment for LED change orders. The funding is from bond sale proceeds
Arterial Fund projects budgeted in FY 09 that were not started need to be re-budgeted in FY 10. The Alkali Creek project will be funded by a grant and Arterial reserves. Both the Inner Belt Loop and Rimrock (17th-Forsythia) designs will be funded by reserves.
ALTERNATIVES ANALYZED
The Council must hold a public hearing and then may:
- Approve the request budget amendments; or
- Not approve the request budget amendments.
FINANCIAL IMPACT
The requested budget amendments will be funded by additional revenues or reserves.
RECOMMENDATION
Staff recommends that the City Council conduct a public hearing and approve the resolution adopting the budget amendments for Fiscal Year 2009/2010 per attached.