Regular 3.
Regular City Council Meeting
- Meeting Date:
- 11/12/2019
- TITLE
- Public Hearing and Resolution for FY20 Budget Amendments
- PRESENTED BY:
- Andy Zoeller
- Department:
- City Hall Administration
Presentation:
Yes
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 FY 2020:
1.South Tax Increment Fund
Parks Department along with South Billings Urban Renewal Association are requesting a budget amendment to the FY20 South Tax Increment Fund budget. On 9/9/19 City Council approved funding for a turf field at amend park. As indicated in the staff memo for that agenda item, this project was budgeted in FY19, and budget will need to be re-established in the South Tax Increment Fund for FY20. The budgeted request is for the project is $1,650,000, as indicated in the staff memo approving the contract with FieldTurf. Existing cash balance within the fund will be used to cover the additional expenses.
2.Park Construction Fund
The Parks Department is requesting a budget amendment to reestablish budget for Centennial Park Improvements totaling $170,475. On 5/13/19 City Council approved a bid award to First Mark Construction for the Centennial Park Improvements. The amount awarded, $1,945,525, was less than the total amount budgeted. In that staff memo, it was noted that the remaining funds would be used to pay for a restroom facility, utility fees, and other contingencies. An FY20 budget amendment will need to occur to reestablish the budget authority for these projects. Existing fund balance will be used to cover the additional expenses. This amount contains no additional money from the original FY19 budget.
3. Equipment Replacement Fund
City staff is requesting budget authority be re-established for the purchase of a medium duty trash truck. On 10/15/19 City Council approved the purchase of a garbage truck for City Parks. This purchase was funded through the Equipment Replacement Plan and was budgeted for replacement in FY19. As indicated in the staff memo, a budget amendment will be necessary to reestablish the budget authority for this purchase. Existing fund balance within the Equipment Replacement Fund will be used to purchase the truck, costing $132,033.
4. Sidewalk Hazard Fund & Gas Tax Fund
Public Works is requesting budget authority be established in the FY 2020 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. There is sufficient cash in the Gas Tax Fund to temporarily fund these projects.
5. Water Fund
Public Works is requesting budget authority be reestablished in the FY 2020 budget for the purchase of land and preliminary design for a new west end water treatment plant and reservoir. The reservoir and the water treatment plant will provide critical redundancy and will increase the allowable downtime from hours to months. The purchase of the land and the preliminary design is needed to move this project forward. The expense was previously approved in the FY 19 budget, but was not completed in that fiscal year because Public Works was still in negotiations. There is sufficient cash in the Water Fund for this expense.
6. Gas Tax Fund
Public Works is requesting budget authority be increased in the FY 2020 budget for the costs that will be incurred due to the Laredo rock fall and for the construction of Songbird Drive from Midland to Elysian. The rock fall costs will consist of stabilization of the slope and removal of the rock from the public right-of-way. Stabilization of the slope will most likely be accomplished through the falling of two rocks and is needed before the removal of rocks from the roadway to ensure the safety of private contractors that will be working to remove the rocks. The City has sufficient cash in the Gas Tax Fund to fund these costs, but will have to cut projects in the next couple of years as this was an unanticipated expense and there are no unallocated gas tax funds in the 5-year CIP. The Songbird Drive project was one of the projects that was expedited after the decision was made to delay the Monad and 19th/20th project. That project was budgeted in the Arterial Construction Fund, but Songbird is a collector and is not an allowable arterial expense and instead will be funded with gas tax funds Songbird Drive is anticipated to create a secondary route to Midland Road. Public Works plans to free up the needed gas tax funds by reducing the inner beltloop project reserve by $1.1 million. The $1.1 million reserve for the inner beltloop will be reestablished in the arterial fund and thus, the total amount of the inner beltloop reserve will be unchanged.
7. Central Services Copier Fund
The Finance department is requesting budget authority be added to the Central Services Fund. This fund is used to replace large copiers within the City. No copiers were scheduled for replacement in FY20, and as a result no expenses were budgeted. The Planning Department has experienced a significant failure with one of their copiers, and as a result needs to replace it sooner than what was anticipated. The fund has sufficient cash to purchase the new machine.
Additional information on each project can be found in the attached Exhibit A.
1.South Tax Increment Fund
Parks Department along with South Billings Urban Renewal Association are requesting a budget amendment to the FY20 South Tax Increment Fund budget. On 9/9/19 City Council approved funding for a turf field at amend park. As indicated in the staff memo for that agenda item, this project was budgeted in FY19, and budget will need to be re-established in the South Tax Increment Fund for FY20. The budgeted request is for the project is $1,650,000, as indicated in the staff memo approving the contract with FieldTurf. Existing cash balance within the fund will be used to cover the additional expenses.
2.Park Construction Fund
The Parks Department is requesting a budget amendment to reestablish budget for Centennial Park Improvements totaling $170,475. On 5/13/19 City Council approved a bid award to First Mark Construction for the Centennial Park Improvements. The amount awarded, $1,945,525, was less than the total amount budgeted. In that staff memo, it was noted that the remaining funds would be used to pay for a restroom facility, utility fees, and other contingencies. An FY20 budget amendment will need to occur to reestablish the budget authority for these projects. Existing fund balance will be used to cover the additional expenses. This amount contains no additional money from the original FY19 budget.
| Original Budget | $ 2,460,000 |
| Less: | |
| Steiner Thuesen Contract | 342,699 |
| FirstMark Const. Contract | 1,945,525 |
| Site Plan | $ 1,301 |
| Remaining Project Funds | $ 170,475 |
3. Equipment Replacement Fund
City staff is requesting budget authority be re-established for the purchase of a medium duty trash truck. On 10/15/19 City Council approved the purchase of a garbage truck for City Parks. This purchase was funded through the Equipment Replacement Plan and was budgeted for replacement in FY19. As indicated in the staff memo, a budget amendment will be necessary to reestablish the budget authority for this purchase. Existing fund balance within the Equipment Replacement Fund will be used to purchase the truck, costing $132,033.
4. Sidewalk Hazard Fund & Gas Tax Fund
Public Works is requesting budget authority be established in the FY 2020 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. There is sufficient cash in the Gas Tax Fund to temporarily fund these projects.
5. Water Fund
Public Works is requesting budget authority be reestablished in the FY 2020 budget for the purchase of land and preliminary design for a new west end water treatment plant and reservoir. The reservoir and the water treatment plant will provide critical redundancy and will increase the allowable downtime from hours to months. The purchase of the land and the preliminary design is needed to move this project forward. The expense was previously approved in the FY 19 budget, but was not completed in that fiscal year because Public Works was still in negotiations. There is sufficient cash in the Water Fund for this expense.
6. Gas Tax Fund
Public Works is requesting budget authority be increased in the FY 2020 budget for the costs that will be incurred due to the Laredo rock fall and for the construction of Songbird Drive from Midland to Elysian. The rock fall costs will consist of stabilization of the slope and removal of the rock from the public right-of-way. Stabilization of the slope will most likely be accomplished through the falling of two rocks and is needed before the removal of rocks from the roadway to ensure the safety of private contractors that will be working to remove the rocks. The City has sufficient cash in the Gas Tax Fund to fund these costs, but will have to cut projects in the next couple of years as this was an unanticipated expense and there are no unallocated gas tax funds in the 5-year CIP. The Songbird Drive project was one of the projects that was expedited after the decision was made to delay the Monad and 19th/20th project. That project was budgeted in the Arterial Construction Fund, but Songbird is a collector and is not an allowable arterial expense and instead will be funded with gas tax funds Songbird Drive is anticipated to create a secondary route to Midland Road. Public Works plans to free up the needed gas tax funds by reducing the inner beltloop project reserve by $1.1 million. The $1.1 million reserve for the inner beltloop will be reestablished in the arterial fund and thus, the total amount of the inner beltloop reserve will be unchanged.
7. Central Services Copier Fund
The Finance department is requesting budget authority be added to the Central Services Fund. This fund is used to replace large copiers within the City. No copiers were scheduled for replacement in FY20, and as a result no expenses were budgeted. The Planning Department has experienced a significant failure with one of their copiers, and as a result needs to replace it sooner than what was anticipated. The fund has sufficient cash to purchase the new machine.
Additional information on each project can be found in the attached Exhibit A.
ALTERNATIVES ANALYZED
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.
FINANCIAL IMPACT
The requested budget amendments will be funded by reserves or new revenues, as described in the budget resolution exhibit. The funds impacted include South Tax Increment Fund, Park Construction Fund, and Equipment Replacement Plan.
RECOMMENDATION
Staff recommends that the City Council conduct a public hearing and approve the resolution approving and adopting the budget amendments for Fiscal Year 2020.