HomeMy WebLinkAboutA7 - FY17 Budget Work Session
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director
Chris Kukulski, City Manager
SUBJECT: Fiscal Year 2017 (FY17) Budget Work Session Updated information for Community Housing Fund
MEETING DATE: June 13, 2016
AGENDA ITEM TYPE: Action Item – Budget Work Session RECOMMENDATION: Listen to staff presentations, ask questions, give direction, as you
see fit.
BACKGROUND: Attached is an updated Budget Worksheet for the Community Housing Fund. This information has been prepared to assist us in developing the City’s Final Budget, and is based on what is contained in the FY17 City Manager’s Recommended Budget, available
at http://www.bozeman.net/Departments-(1)/Finance/Budgets-and-Financials.aspx. Based on
feedback during this work session, and other work sessions held this spring, we intend to prepare
the Final Budget resolution. The hearing for adoption of the Final Budget is scheduled for June 20, 2016.
On May 16, 2016 we presented information regarding the Recommended Budget for the
Community Housing Fund. The Recommendation had been developed with the input of the
Community Affordable Housing Advisory Board (CAHAB). During our discussions that night,
there were questions about what had been approved in the budget for FY16.
FY16 Approved Budget: During budget development last year, we had public discussions
about whether to include a “lump-sum” amount of appropriations for “unidentified projects” that
could be accomplished with the 3-mill property tax dollars. Commissioners specifically stated
that they did not wish to include an unidentified appropriation – and that they wanted to make budget amendments for each project, once it was approved. As a result, only $54,400 was
included in appropriations in the Community Housing Fund (Road to Home administration and
administration of the Housing Revolving Loan Fund.)
One additional project (Reach, Inc. Rental Housing), was approved by the Commission during the year and the formal budget amendment appears on the agenda tonight. Attached is an
updated worksheet showing what has been allocated in each year’s budget and assumes the
budget amendment for Reach, Inc. gets approved on tonight’s agenda. The FY17 budget
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recommendation plans to utilize some of the monies not appropriated in FY16. The estimated
ending balance in the Fund for FY17 would be $78,000.
FISCAL EFFECTS: Although the Final Budget adoption has far-reaching fiscal effects, there are no immediate fiscal effects as a result of this work session.
The Community Housing Fund receives 3 mills in property tax revenue. Each mill the city
levies costs the typical residential home $3.47/year. Total effects of the Recommended Budget
on property taxes for a typical resident are highlighted in yellow below.
Typical Resident: Annual Increase Recommended Budget Revised
Street Maintenance Assessment $22.07 $22.07
Forestry Assessment $5.10 $5.10
Arterial Street Assessment $19.79 $19.79
Property Taxes *revised Health Insurance $48.00 $36.86
Water Services $12.36 $12.36
Sewer Services $17.28 $17.28
Storm Water Services - -
Annual Increase $124.60 $113.46
Monthly Increase $10.38 $9.45
Attachments: Updated Community Housing Fund Worksheet
On File: City Manager’s Recommended Budget for FY17
Report compiled on: June 7, 2016
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Workforce Housing FundingFor FY17 Budget Development ‐ *AmendedWithin the Community Housing FundApprovedProposed0.5 Mills 0.5 Mills 0.5 Mills 1 Mill 3 Mills3 MillsFY12 FY13 FY14 FY15 FY16 FY17Beginning Balance 318,460 327,446 336,926 347,769 21,858 188,966 Revenues:General Fund Transfer 56,248 Dedication of Tax Revenue 41,031 41,885 42,819 88,470 241,158 264,886 Interest Earnings 2,955 2,595 2,555 2,958 2,850 2,850 Loan Principal Repayments 5,000 5,000 5,000 682 9,500 9,500 Total Estimated Revenues: 48,986 49,480 50,374 148,358 253,508 277,236 Expenditures:Road to Home - Administration 40,000 40,000 40,000 40,000 40,000 40,000 HRDC - West Edge Project Downpayment Assistance‐ 160,000 HRDC Administration of Revolving Loan Fund14,400 14,400 Workforce Housing Ordinance Development/Update50,000 Support for Low Income Housing Projects (offset Impact Fees)24,269 Remainder of CAHAB Support not contained in Fund 121 (to total $14,400/yr)3,407 GMD - Project Assistance200,000 Administrative Costs8,000 Affordable Housing Action Plan Update10,000 Impact Fees For Home Purchase100,000 Impact Fees For Rental Housing32,000 40,000 Purchase of Property100,000 Emergency Shelter25,000 Down Payment Assistance50,000 Total Proposed Expenditures: 40,000 40,000 40,000 477,676 86,400 387,400 Ending Balance 327,446 336,926 347,769 21,858 188,966 78,802 236