Regular 2.
Regular City Council Meeting
- Meeting Date:
- 05/09/2016
- TITLE
- Public Hearing and Resolution for FY16 Budget Amendments
- PRESENTED BY:
- Patrick M. Weber
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
Montana Code allows local governments to amend their fiscal year budgets by using the same method as used for the original budget adoption: public notice, public hearing and Council adopting a resolution. The following amendments are proposed for the third quarter of FY 2016:
Fund 203 - N 27th Tax Increment District
Because more revenue will be received than predicted, the reimbursements to Stockman Bank and Northern Hotel will also be more than is budgeted. The Downtown Partnership awarded grants for $179,772. The largest grants went to Martin & Associates LLC, K-B Chemical, BEGE Enterprises and Yellowstone Art Museum. Current revenues will be used for this amendment.
Fund 2010 - East Tax Increment District
Because more revenue will be received than predicted, the reimbursements to First Interstate Bank and Boyer will also be more than is budgeted. BIRD, Inc. also asked Council to approve $75,878 for Erving Properties, Converse Development, North Park Properties and Eggart Enterprises reimbursements for public improvements. Current revenue will be used for this amendment.
Fund 0100-14110 - General Fund, Non Departmental; 2640 - Community Development
Starting in FY14, rent for Community Development was to be paid by a transfer from the General Fund. The rent for FY14 and FY15 did not get transferred. The transfer for both years will be done in FY16. Reserves will be used for the transfer.
4240 - Rose Park Construction; 8730 - Park District 1
This amendment will allow Parks to start demolition and clean up at Rose Park after the concession stand and pool house was damaged by a fire. The pool house was scheduled to be renovated in FY18, so another project will be moved to FY18 and those funds will pay for the rebuild at Rose Park.
2250 - EOC 911
Purchase of property for the new 911 Center that Council has approved, $395,000. Demolition of the property is estimated at $100,000. Design of the new 911 Center building is estimated at $800,000. Reserves will be used for this amendment.
4980 - Library Construction
Completion of the new Library. Library operating transferred funds to cover the amendment.
1990 - South Tax Increment
The Orchard Lane Reconstruction project will reconstruct Orchard Lane between King Avenue East and State Avenue. Public Works bid this project in April and the bids came in higher than the budget. The SBURD desired proceeding with the project using Tax Increment Financing (TIF) bond funds to make up the difference. The Orchard Lane project was awarded at the April 25, 2016 Council meeting with the understanding that a budget amendment was forthcoming.
Fund 203 - N 27th Tax Increment District
Because more revenue will be received than predicted, the reimbursements to Stockman Bank and Northern Hotel will also be more than is budgeted. The Downtown Partnership awarded grants for $179,772. The largest grants went to Martin & Associates LLC, K-B Chemical, BEGE Enterprises and Yellowstone Art Museum. Current revenues will be used for this amendment.
Fund 2010 - East Tax Increment District
Because more revenue will be received than predicted, the reimbursements to First Interstate Bank and Boyer will also be more than is budgeted. BIRD, Inc. also asked Council to approve $75,878 for Erving Properties, Converse Development, North Park Properties and Eggart Enterprises reimbursements for public improvements. Current revenue will be used for this amendment.
Fund 0100-14110 - General Fund, Non Departmental; 2640 - Community Development
Starting in FY14, rent for Community Development was to be paid by a transfer from the General Fund. The rent for FY14 and FY15 did not get transferred. The transfer for both years will be done in FY16. Reserves will be used for the transfer.
4240 - Rose Park Construction; 8730 - Park District 1
This amendment will allow Parks to start demolition and clean up at Rose Park after the concession stand and pool house was damaged by a fire. The pool house was scheduled to be renovated in FY18, so another project will be moved to FY18 and those funds will pay for the rebuild at Rose Park.
2250 - EOC 911
Purchase of property for the new 911 Center that Council has approved, $395,000. Demolition of the property is estimated at $100,000. Design of the new 911 Center building is estimated at $800,000. Reserves will be used for this amendment.
4980 - Library Construction
Completion of the new Library. Library operating transferred funds to cover the amendment.
1990 - South Tax Increment
The Orchard Lane Reconstruction project will reconstruct Orchard Lane between King Avenue East and State Avenue. Public Works bid this project in April and the bids came in higher than the budget. The SBURD desired proceeding with the project using Tax Increment Financing (TIF) bond funds to make up the difference. The Orchard Lane project was awarded at the April 25, 2016 Council meeting with the understanding that a budget amendment was forthcoming.
ALTERNATIVES ANALYZED
The Council may: Approve the requested budget amendments; or Not approve the requested budget amendments, which would put the City in violation of Montana law.
FINANCIAL IMPACT
The requested budget amendments will be funded by reserves or current revenue, as described in the budget resolution exhibit and above.
RECOMMENDATION
Staff recommends that the City Council conduct a public hearing and approve the resolution approving and adopting the budget amendments for Fiscal Year 2016.