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 FY 2018:

General Fund (Legal Department) - The Legal department is requesting additional budget authority to fund the cost of hiring outside counsel. Currently the City has multiple cases where outside counsel is being used to assist the City (Watters et al v. COB, Palmer Enterprises, Inc. et al v COB Zoning, Franchise Fee). The budgeted amount of 68,000 has not increased in over 10 years, and subsequently has not kept up with the growth of the City. General Fund balance is available to fund the additional expenses.

Equipment Replacement Fund - The Equipment Replacement fund needs additional budget authority to replace two Police vehicles that were totaled during the year. Insurance proceeds and fund balance will be used for the additional expenditures.

The Council will conduct a public hearing and 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, 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 Fiscal Year 2018.