|
Item 2.
|
| City Council Regular | |
| Date: | 01/24/2022 |
| Title: | Public Hearing and Resolution for FY2022 Budget Amendments |
| Presented by: | Andy Zoeller, Finance Director |
| Department: | Finance |
| Presentation: | Yes |
RECOMMENDATION
Staff recommends City Council adopt the proposed Budget Amendments for FY2022
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
On June 30, 2021, the City of Billings ended fiscal year 2021 with a General Fund Balance of $33,457,280. Of this amount $12,198,022 is recommended minimum reserve, leaving $21,259,258 unassigned. Council adopted the FY2022 budget with anticipation of spending much of the unassigned General Fund balance on the purchase and construction of the Stillwater Building for a Law and Justice Center/City Hall. Additionally, after successful passage of the Public Safety Mill Levy, the City intended to ask Council for budget authority to spend a portion of these reserves to begin implementing the strategies related to the Public Safety Levy. Provided below is a description of the two budget amendments.
Stillwater Building Purchase - General Fund - $8,750,560
The FY22 Budget was adopted anticipating a purchase of a building for the Law and Justice Center. The original amount that was included in the FY22 budget was $11.6 million, which was based upon the market analysis that was done by the City. On 10/11/21 City Council approved a purchase agreement for the Stillwater Building. The total purchase amount of $13,500,000. was established by the City's appraisal process. On December 20, 2021 City Council approved a design contract with JLG Architects for Phase 1 of the design work for a total cost of $207,500.
During presentations related to the purchase of the Stillwater Building, the total anticipated General Fund costs to purchase, design, construct, and carry while vacant was $20,350,560. Council was made aware that a budget amendment would be needed if the purchase was completed. As a result a General Fund budget amendment for $8,750,560 is being requested.
Public Safety Mill Levy - General Fund $207,210 and Public Safety Fund $1,741,222
During presentations related to the 2021 Public Safety Mill Levy (PSML), staff stated their intent to being implementation of the PSML expenses as soon as possible, should the citizens approve the mill levy. While funds related to the mill levy will not begin to be received by the City until December 2022, it is the intent of staff to being implementation with cash on hand. The attached budget amendments are all related to the implementation of the strategies associated with the PSML.
Fire - $90,440 - EMS Chief. In order to begin developing the Mobile Response Teams, the EMS Chief has been hired to start developing the program. This budget amendment will cover the salary and equipment costs for 6 months. All additional costs will be included in the FY23 budget.
Police - $1,650,782 - The Police Department is requesting budget authority to hire 7 Police Officers, 3 CSO's, 3 Sergeants, and 4 support staff. Additionally, the funding is being requested for the needed vehicles and equipment related to these staff positions. These positions are a portion of the total positions that were included in the FY2022 PSML.
Legal - $101,507 - The Legal Department is requesting budget authority to begin hiring an additional attorney and victim witness specialist. A temporary space will be needed to place the new employees until a permanent office is established.
Code Enforcement - $84,000 - The Code Enforcement Division is seeking this budget request to begin acquiring vehicles and equipment for 3 additional code enforcement officers. The PSML contains funding for 3 additional code enforcement officers. Code Enforcement has just recently hired a new manager and will begin working on developing strategies to hire the new staff. Due to the delays in acquiring equipment, CE is requesting budget authority to begin purchasing this equipment in order for it to be available when the new employees are hired.
Court - $21,703 - The Senior Courtroom Collection clerk will be a newly created position. This individual will assist the newly elected Judge in the courtroom starting in Calendar Year 2024. This position requires a significant amount of training in the courtroom, and the court would like them fully trained before the newly elected Judge starts in 2023. This individual will also assist with court retention records, identifying and clean-up of old cases, and the assistance with a new court schedule for the newly elected Judge.
Stillwater Building Purchase - General Fund - $8,750,560
The FY22 Budget was adopted anticipating a purchase of a building for the Law and Justice Center. The original amount that was included in the FY22 budget was $11.6 million, which was based upon the market analysis that was done by the City. On 10/11/21 City Council approved a purchase agreement for the Stillwater Building. The total purchase amount of $13,500,000. was established by the City's appraisal process. On December 20, 2021 City Council approved a design contract with JLG Architects for Phase 1 of the design work for a total cost of $207,500.
During presentations related to the purchase of the Stillwater Building, the total anticipated General Fund costs to purchase, design, construct, and carry while vacant was $20,350,560. Council was made aware that a budget amendment would be needed if the purchase was completed. As a result a General Fund budget amendment for $8,750,560 is being requested.
| General Fund costs to purchase, design, construct, and carry while vacant | $ 20,350,560 |
| Less: Amount originally budgeted in FY2022 | 11,600,00 |
| FY2022 General Fund Budget Request | $ 8,750,560 |
Public Safety Mill Levy - General Fund $207,210 and Public Safety Fund $1,741,222
During presentations related to the 2021 Public Safety Mill Levy (PSML), staff stated their intent to being implementation of the PSML expenses as soon as possible, should the citizens approve the mill levy. While funds related to the mill levy will not begin to be received by the City until December 2022, it is the intent of staff to being implementation with cash on hand. The attached budget amendments are all related to the implementation of the strategies associated with the PSML.
Fire - $90,440 - EMS Chief. In order to begin developing the Mobile Response Teams, the EMS Chief has been hired to start developing the program. This budget amendment will cover the salary and equipment costs for 6 months. All additional costs will be included in the FY23 budget.
Police - $1,650,782 - The Police Department is requesting budget authority to hire 7 Police Officers, 3 CSO's, 3 Sergeants, and 4 support staff. Additionally, the funding is being requested for the needed vehicles and equipment related to these staff positions. These positions are a portion of the total positions that were included in the FY2022 PSML.
Legal - $101,507 - The Legal Department is requesting budget authority to begin hiring an additional attorney and victim witness specialist. A temporary space will be needed to place the new employees until a permanent office is established.
Code Enforcement - $84,000 - The Code Enforcement Division is seeking this budget request to begin acquiring vehicles and equipment for 3 additional code enforcement officers. The PSML contains funding for 3 additional code enforcement officers. Code Enforcement has just recently hired a new manager and will begin working on developing strategies to hire the new staff. Due to the delays in acquiring equipment, CE is requesting budget authority to begin purchasing this equipment in order for it to be available when the new employees are hired.
Court - $21,703 - The Senior Courtroom Collection clerk will be a newly created position. This individual will assist the newly elected Judge in the courtroom starting in Calendar Year 2024. This position requires a significant amount of training in the courtroom, and the court would like them fully trained before the newly elected Judge starts in 2023. This individual will also assist with court retention records, identifying and clean-up of old cases, and the assistance with a new court schedule for the newly elected Judge.
ALTERNATIVES
City Council may:
- Approve; or,
- Not Approve the budget amendments.
FISCAL EFFECTS
The total budget amendments are $10,698,992
The total of all of these will come from the General Fund reserves.
On June 30, 2021, the City of Billings ended fiscal year 2021 with a General Fund Balance of $33,457,280. Of this amount $12,198,022 is a recommended minimum reserve for operating expenses, leaving $21,259,258 unassigned. Council adopted the FY2022 budget with anticipation of spending much of the unassigned General Fund balance on the purchase and construction of the Stillwater Building for a Law and Justice Center. Additionally, after successful passage of the Public Safety Mill Levy, the City intends to ask Council for budget authority to spend a portion of these reserves to begin implementing the strategies related to the Public Safety Levy.
The total of all of these will come from the General Fund reserves.
On June 30, 2021, the City of Billings ended fiscal year 2021 with a General Fund Balance of $33,457,280. Of this amount $12,198,022 is a recommended minimum reserve for operating expenses, leaving $21,259,258 unassigned. Council adopted the FY2022 budget with anticipation of spending much of the unassigned General Fund balance on the purchase and construction of the Stillwater Building for a Law and Justice Center. Additionally, after successful passage of the Public Safety Mill Levy, the City intends to ask Council for budget authority to spend a portion of these reserves to begin implementing the strategies related to the Public Safety Levy.