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 fourth quarter of FY 2016:

0100-16 - General Fund - City Attorney
The amendment is for the remodel of the law library to create office space for the Legal department and a transfer to the Attorney Grants fund.  Reserves will be used for this amendment.

7690 - Park Development: 0100-11 - General Fund - Council Contingency
Initiate transfer that was approved at the 06/09/14 Council meeting for the Optimist Park master plan.

2600 - Library
This amendment is follow up to the final contractor payment that was made earlier in the fiscal year.  This is a transfer from the Library fund to the Library Construction fund and reserves will be used.

0100 - General Fund - Code Enforcement
This amendment is to cover over time and compensation cash out.  Also, a pre-Demo asbestos inspection and plan was done at 114 S 29th Street per a court order and reserves will be used.  The house will be demolished in FY17.

1500-22 - Public Safety - Fire
This amendment is to cover the roof replacement at Fire Station 2.  Council approved the construction project on 10-13-15 and was informed that a budget amendment would be required and that General Fund reserves would be the funding source.

4240 - Rose Park Construction; 8730 - Park District 1
To fix damages and clean up at Rose Park for the June 8th opening.  Updated cost estimates have been received by PRPL.

2030 - N 27th Tax Increment District
The council approved the purchase of property legally described as BILLINGS ORIGINAL TOWNSITE, S03, T01 S, R26 E, BLOCK 94, Lot 1 - 3 located at 102 N. 29th St. by the Downtown Billings Partnership, Inc. (DBP) at their 05/09/16 regular meeting.  Reserves will be used for the purchase.

Funds 4050 - Airport - Airport Improvement Plan Capital Fund (AIP) and 4070 - Passenger Facility Charges Fund (PFC)
The Airport is requesting budget amendments to its AIP and PFC Capital Funds.  The Airport Pond D Storm Water Detention and Conveyance System project was not included in the Airport's FY16 Capital Improvement Program.  This project was originally approved in the FY14 Budget but was delayed due to a number of issues, including Federal Funding, private land access and the need for numerous permits to allow the storm water detained in the new Pond D to be piped to Alkali Creek.  All of these items came together during FY16 to allow this project to proceed.  The Airport has sufficient AIP grant funds, PFC funds, and local revenue source monies available in its capital funds to proceed with this project.

6270 - City Health Insurance Fund
There are more mid-range to high cost claimants being treated than were predicted when the FY 16 budget was approved and high cost, specialty drug prescription use continues to expand.  Reserves are adequate to cover the additional costs.

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.

The requested budget amendments will be funded by reserves or current revenue, as described in the budget resolution exhibit and above.

Staff recommends that the City Council conduct a public hearing and approve the resolution approving and adopting the budget amendments for the Fourth Quarter of Fiscal Year 2016.