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 2019:

1.Sidewalk Hazard Repair/Gas Tax
Public Works is requesting budget authority be established in the FY 2019 budget for sidewalk hazard repair projects.  These projects were previously budgeted for in the Sidewalk and Curb District Fund and funded by the sale of bonds.  The costs were then assessed to the property owners that benefited from the improvements.  This new Sidewalk Hazard Fund is to fund the repair of sidewalk deficiencies including tripping hazards.  Repairs that are included in this program can either be fixed with a low cost grinding option or are not major repairs and therefore, can be assessed to the property owners over less time, saving the property owners bond sale costs and providing a more timely method to fix sidewalk hazards.  Per Article 13-1200 of the Billings Municipal City Code, the Sidewalk Hazard Fund is funded by the Gas Tax Fund until the costs are paid back by the property owners. The Gas Tax fund has sufficient cash balance to provide the temporary funding needed for these projects.

2.Storm Sewer
Public Works is requesting budget authority be increased in the FY 2019 budget for the cost of three storm drain projects.   The Silverwood Culvert Replacement project is an emergency repair that needed repaired in June.  Also, the unexpected City/County Drain and Cardiff Storm projects utilized all of the storm Fund Budget for FY 2019, but Public Works proceeded with the 38th & Olympic and Sam Snead Trail storm drain projects because there was significant need for these projects and they have been on Public Works storm priority list for several years. The Storm Sewer Fund has sufficient cash for these projects.

3. Street & Traffic
Public Works is requesting budget authority be increased in the FY 2019 budget for cost overruns incurred last winter for overtime and supplies needed for snow and ice operations.  The snow and ice maintenance budget incurred an overrun of $400,000 as was discussed during the Public Works budget presentation.  However, staff was able to mitigate some of the overrun by deferring other maintenance items and is requesting a budget amendment for the Street/Traffic Fund in the amount of $135,000.  The Street and Traffic Fund has sufficient cash in its reserves to fund these expenditures.

4. Legal Department - General Fund
The Legal Department is requesting budget authority be increased in the FY 2019 budget for the cost of outside counsel. In FY19, a total of $436,000 was spent hiring outside counsel to defend non-MMIA cases against the city. The Council has previously advised of the potential for additional funds to defend certain non-MMIA cases and directed staff to proceed. Fund balance is available to cover these costs.

5. Police Department - Public Safety Fund
The Police Department is requesting budget authority be increased in the FY 2019 budget for the cost of Police overtime. Total actual overtime costs in FY19 was about $800,000. There was only $308,916 budgeted for FY19. Some of the large events that occurred which required the Police Department to incur significant amounts of overtime were dignitary visits, minimum staffing requirements, and required specialized training.  Fund balance is available to cover these costs.

Additional information on each project can be found in the attached Exhibit A.
 

The Council will conduct a public hearing and may:

• Approve the requested budget amendments; or
• Not approve the requested budget amendments, which would place the City in violation of Montana law.

The requested budget amendments will be funded by reserves or new revenues, as described in the budget resolution exhibit.

Staff recommends that the City Council conduct a public hearing and approve the resolution approving and adopting the budget amendments for Fiscal Year 2019.