|
Item 4.
|
| City Council Regular | |
| Date: | 02/27/2023 |
| Title: | FY2023 Budget Amendments |
| Presented by: | Andy Zoeller, Finance Director |
| Department: | Finance |
| Presentation: | Yes |
| Legal Review | Not Applicable |
RECOMMENDATION
Staff recommends approval of FY23 budget amendments.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Staff presented the following budget amendments to the Council's Budget and Finance Committee on 2/15/23. The committee voted in favor of the first two amendments (Parking and MET transit and asked for more information before taking action on the Police MDT's.
Parking
The Park 2 southwest elevator across from the DoubleTree Hotel requires a piston replacement. This project, totaling $78,688, was not included in the FY23 budget. The Parking Department is requesting a budget amendment of $78,688 to fund the repair using existing working capital for the purchase.
MET Transit
Met Transit was successfully awarded an FTA grant to purchase four electric buses. The purchase of the four buses will be executed using a combination of Federal and Local funding at approximately 78% Federal and 22% Local. MET Transit has adequate local capital reserves for this project and is requesting additional budget authority of $1,011,414 for the Local share. The City Administrator has approved the $3,622,600 of spending for the Federal share.
The following budget amendments were presented to the committee, but additional information was requested.
Public Safety ERP - Police MDT's
City Council is being asked to approve a contract (2/27/23) to purchase 40 MDTs for a total of $277,466 on 2/27/23. The City has set aside $418,000 for the anticipated purchase of replacement MDTs in FY24. Software licensing for all MDTs is not included in the original contract but will be needed. As such, the budget amendment requested is $418,000. Estimated software license cost for 40 MDTs is $75,000 - $100,000. These funds were set aside for this purpose, but original replacement was planned in FY24.
Equipment Replacement Fund
On 1/23/23 City Council approved a contract to purchase six new vehicles for the Parks Department. The purchase was funded through a combination of ERP funds and PD1 funds. In the staff memo authorizing the purchase, Council was made aware that 2 two vehicles were originally budgeted in FY22, but were never ordered, as such a budget amendment reestablishing budget authority would be needed. The funds were retained in the Equipment Replacement Fund, and are being requested for use in FY23.
Park District 1
On 1/23/23 City Council approved a contract to purchase six new vehicles for the Parks Department. The purchase was funded through a combination of ERP funds and PD1 funds. In the staff memo authorizing the purchase, Council was made aware that PD1 reserves would need to be used to cover the additional costs of $49,279. This budget amendment will allow for the use of PD1 reserves to cover the additional costs.
This budget amendment was not presented to the Budget and Finance committee, as such, has not been recommended by the committee, but is being recommended by the Finance Department.
General Fund - Finance Department
The City of Billings is currently using a tax and assessment software that has been in place since 2004. The City of Billings no longer has software support, and the software resides on an AS400 server that is past replacement. The City has been working to move off of this server for all applications. For years, we have been working with our current accounting software to develop a custom tax and assessment module, but it does not appear to be moving forward at a pace that will work for the City. The Finance department is requesting budget authority to procure an existing software from Tyler Technologies, the same system that Yellowstone County uses. This purchase was not budgeted in FY23. Due to the critical nature of software support and server maintenance, we are requesting General Funds be used for the purchase this fiscal year. In FY23, the General Fund budget included $125,000 for anticipated county election fees, as we assumed there may be an election for parks and recreation. This election will not occur until FY24, as such, these funds could be reallocated for the purchase of new tax and assessment software.
Parking
The Park 2 southwest elevator across from the DoubleTree Hotel requires a piston replacement. This project, totaling $78,688, was not included in the FY23 budget. The Parking Department is requesting a budget amendment of $78,688 to fund the repair using existing working capital for the purchase.
MET Transit
Met Transit was successfully awarded an FTA grant to purchase four electric buses. The purchase of the four buses will be executed using a combination of Federal and Local funding at approximately 78% Federal and 22% Local. MET Transit has adequate local capital reserves for this project and is requesting additional budget authority of $1,011,414 for the Local share. The City Administrator has approved the $3,622,600 of spending for the Federal share.
The following budget amendments were presented to the committee, but additional information was requested.
Public Safety ERP - Police MDT's
City Council is being asked to approve a contract (2/27/23) to purchase 40 MDTs for a total of $277,466 on 2/27/23. The City has set aside $418,000 for the anticipated purchase of replacement MDTs in FY24. Software licensing for all MDTs is not included in the original contract but will be needed. As such, the budget amendment requested is $418,000. Estimated software license cost for 40 MDTs is $75,000 - $100,000. These funds were set aside for this purpose, but original replacement was planned in FY24.
Equipment Replacement Fund
On 1/23/23 City Council approved a contract to purchase six new vehicles for the Parks Department. The purchase was funded through a combination of ERP funds and PD1 funds. In the staff memo authorizing the purchase, Council was made aware that 2 two vehicles were originally budgeted in FY22, but were never ordered, as such a budget amendment reestablishing budget authority would be needed. The funds were retained in the Equipment Replacement Fund, and are being requested for use in FY23.
Park District 1
On 1/23/23 City Council approved a contract to purchase six new vehicles for the Parks Department. The purchase was funded through a combination of ERP funds and PD1 funds. In the staff memo authorizing the purchase, Council was made aware that PD1 reserves would need to be used to cover the additional costs of $49,279. This budget amendment will allow for the use of PD1 reserves to cover the additional costs.
This budget amendment was not presented to the Budget and Finance committee, as such, has not been recommended by the committee, but is being recommended by the Finance Department.
General Fund - Finance Department
The City of Billings is currently using a tax and assessment software that has been in place since 2004. The City of Billings no longer has software support, and the software resides on an AS400 server that is past replacement. The City has been working to move off of this server for all applications. For years, we have been working with our current accounting software to develop a custom tax and assessment module, but it does not appear to be moving forward at a pace that will work for the City. The Finance department is requesting budget authority to procure an existing software from Tyler Technologies, the same system that Yellowstone County uses. This purchase was not budgeted in FY23. Due to the critical nature of software support and server maintenance, we are requesting General Funds be used for the purchase this fiscal year. In FY23, the General Fund budget included $125,000 for anticipated county election fees, as we assumed there may be an election for parks and recreation. This election will not occur until FY24, as such, these funds could be reallocated for the purchase of new tax and assessment software.
ALTERNATIVES
City Council may:
- Approve; or,
- Not Approve
FISCAL EFFECTS
The budget amendments, if approved, will be paid from the following funds
| Fund | Budget Amendment | Expenditure Category |
| Parking | 78,688 | Capital Outlay |
| ERP - Public Safety 6410 | 418,000 | Capital Outlay |
| MET Transit | 2,022,828 | Capital Outlay/Transfer Out |
| Equipment Replacement Fund | 61,111 | Capital Outlay |
| Park District 1 | 49,279 | Capital Outlay |
| General Fund - Finance | 125,000 | Capital Outlay |
| General Fund - Non-dept | (125,000) | Operation & Maintenance |