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Item 10.
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| City Council Regular | |
| Date: | 09/09/2024 |
| Title: | Public Hearing and Resolution approving and adopting FY2024 Budget Amendments |
| Presented by: | Andy Zoeller, Finance Director |
| Department: | Finance |
| Presentation: | Yes |
| Legal Review: | Not Applicable |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends the City Council hold a public hearing and approve the budget amendment for fiscal year 2024.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
On August 14, 2024 the City Council Budget and Finance Committee reviewed the FY24 Budget vs. Actual Reports and discussed needed budget amendments.
There are two budget amendments needed for FY24, otherwise the City will not be in compliance with Montana Code Annotated Title 7, Chapter 6, Part 40 Local Government Budget Act.
Fire Department – Public Safety Fund
The Fire Department exceeded the amount budgeted for FY24 Personal Services. This was primarily driven by two factors. First, the City settled a contract with the Local Union 521 setting wages for FY24 in November. The amounts that were agreed to were more than what was included in the budget. We had expected to be able to cover the additional amounts with reduced overtime and managed vacancies. This ended up not being possible, as the high number of vacancies and injuries within the Fire Department increased the need for overtime. As a result both the wages and overtime budgeted amounts were not sufficient to cover the costs. As a result a budget amendment $974,952 is needed for the Fire Department. The proposed increase is recommended to be covered by reductions that existed elsewhere in the Public Safety Fund and General Fund. The overall budget impact is $0.
City Hall Construction Fund
The City Hall Construction fund exceeded the budgeted amounts in FY24. This is a result of approved change orders, primarily for the generator, elevators, and windows and debt issuance costs. The additional costs will be covered by the authorized lease financing that Council approved, and will ultimately be paid through a combination of an annual appropriation and Historic Tax Credits. The additional amount needed in the City Hall Construction Fund is $1,305,468.
There are two budget amendments needed for FY24, otherwise the City will not be in compliance with Montana Code Annotated Title 7, Chapter 6, Part 40 Local Government Budget Act.
Fire Department – Public Safety Fund
The Fire Department exceeded the amount budgeted for FY24 Personal Services. This was primarily driven by two factors. First, the City settled a contract with the Local Union 521 setting wages for FY24 in November. The amounts that were agreed to were more than what was included in the budget. We had expected to be able to cover the additional amounts with reduced overtime and managed vacancies. This ended up not being possible, as the high number of vacancies and injuries within the Fire Department increased the need for overtime. As a result both the wages and overtime budgeted amounts were not sufficient to cover the costs. As a result a budget amendment $974,952 is needed for the Fire Department. The proposed increase is recommended to be covered by reductions that existed elsewhere in the Public Safety Fund and General Fund. The overall budget impact is $0.
| Department - Fund | Increase/(Decrease) |
| Fire Department - Public Safety | 974,952 |
| Police Department - Public Safety | -415,025 |
| Municipal Court - General Fund | -212,900 |
| City Attorney - General Fund | -157,497 |
| Administration - General Fund | -110,702 |
| Finance - General Fund | -63,828 |
| Mayor & Council - General Fund | -15,000 |
| 0.00 |
City Hall Construction Fund
The City Hall Construction fund exceeded the budgeted amounts in FY24. This is a result of approved change orders, primarily for the generator, elevators, and windows and debt issuance costs. The additional costs will be covered by the authorized lease financing that Council approved, and will ultimately be paid through a combination of an annual appropriation and Historic Tax Credits. The additional amount needed in the City Hall Construction Fund is $1,305,468.
ALTERNATIVES
City Council may:
- Approve the recommended budget amendments; or,
- Not Approve the recommended budget amendments. Failure to approve the amendments could place the City in non-compliance with Montana Code Annotated.
FISCAL EFFECTS
The impact to the FY24 budget would be an overall increase of $1,305,468 in the City Hall Construction Fund. The budget amendment in the Public Safety Fund will be offset by reductions in the Public Safety Fund and General Fund. The increased costs in the City Hall Construction Fund will be paid for with lease financing that was approved and the future realization of Historic Tax Credits.