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HomeMy WebLinkAbout06-26-17 City Commission Packet Materials - A1. Resolution 4803, FY18 Final Budget Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Assistant City Manager Dennis Taylor, Interim City Manager SUBJECT: Resolution No. 4803 - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING FUNDS FOR VARIOUS BUDGET UNITS, AND FURTHER ESTIMATING REVENUE NECESSARY TO OPERATE AND MAINTAIN SERVICES OF MUNICIPAL GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30, 2018. MEETING DATE: June 26, 2017 AGENDA ITEM TYPE: Public Hearing & Action Item RECOMMENDATION: Take public comment, make further revisions, and adopt Resolution No. 4803 – Appropriation Resolution for the Fiscal Year Ending June 30, 2018 (FY18.) RECOMMENDED MOTION: I move to adopt Resolution 4803, Appropriating Funds for Various Budget Units, and Further Estimating Revenue Necessary to Operate and Maintain Services of Municipal Government for the Fiscal Year Ending June 30, 2018. BACKGROUND: During presentations and work sessions held in May and June, the Commission has been considering the City Manager’s (CM) Recommended Budget, (available at http://www.bozeman.net/government/finance/budget-and-financial-reports) so that a Final Budget can be adopted for FY18. Based on feedback during these work sessions held, we have prepared the Appropriation (Final Budget) Resolution. The memos and meeting minutes can be found with the Commission packets for the following meetings: • May 15th – Commission Policy Discussion on FY18 Budget development. • June 5th – FY18 City Manager’s Recommended Budget overview and work session on select Special Revenue Funds details. • June 12th – General Fund work session and receipt of Business Improvement Districts and Tax Increment Financing Districts work plans and budgets (on consent), • June 19th – Enterprise Funds work session and select Special Revenue Funds work session. Tonight has been advertised as the hearing for adoption of the Final Budget. The Appropriation Resolution that is attached comes from the City Manager’s Recommended Budget, with the following changes INCLUDED: 247 1. The budgets submitted for the Tax Increment Districts and the Business Improvement Districts have been incorporated, based on their respective June 12th consent items. 2. The Westside streets projects have been moved from FY18 appropriations to FY17 appropriations, based on the recently approved FY17 budget amendment. 3. Appropriations in the Fish Wildlife and Parks Special Revenue fund of $8,000 for the purchase of recycling/garbage racks for East Gallatin and Bozeman Ponds. This was an original request of the Parks Department that was mistakenly left out of the Recommended Budget. Adequate money is on hand and this fund is to be spent on our FWP management agreement properties. 4. Appropriations in the Recreation and Parks Special Revenue funds (primarily donation amounts) for the resurfacing of Southside tennis courts, totaling $18,500. This was an original request of the Parks Department that was mistakenly left out of the Recommended Budget. Adequate money is on hand for this expenditure. 5. Community Development Fund restricted cash totaling $131,712 has been utilized for the following projects: 1. Community Plan funding of $61,712 to come from the Entryway Update fee. 2. Neighborhood Conservation Overlay Update of $50,000 to come from the Conservation Overlay fee. 3. City/County Regional Planning of $20,000 to come from the Long Range Planning fee. Description Beginning Working Capital FY18 FY18 Budget Estimated Ending Working Capital FY18 Conservation Overlay $228,096 ($50,000) $178,096 Entryway Update *no fee 2015 $61,712 ($61,712) $0 Long Range Planning $138,729 ($20,000) $118,729 Technology Fee *new 2015 $44,835 $44,835 Total Restricted Cash $473,372 ($131,712) $341,660 The Appropriation Resolution DOES NOT CONTAIN any of the items listed below. If you would like to include these, or any other items, in the Final Budget, please include them specifically in your motion to adopt the Resolution. 1. Recommendations – Deletions from the General Fund Budget Item Amount Chamber Dues (duplicate) $ 10,000 Primary Election Costs, including postage $ 43,000 Total Reductions to General Fund Budget $ 53,000 It is recommended that this added amount be left to increase the General Fund’s ending reserve level. 248 2. Recommendations – Additions to the General Fund Budget Item Amount Infrastructure Coalition - continued support $ 5,000 Commission Travel - Legislative Interim $ 2,000 Total Additions to General Fund Budget $ 7,000 We recommend funding these items in the budget with existing cash available in the General Fund. If all of the deletions and the additions were made, the effect would be to increase the General Fund’s ending balance for the year by $46,000. This would bring the budgeted projected ending balance to $5,103,271, or 17.9% of General Fund Revenues. This projected ending balance would exceed the City’s minimum balance level by $377,780. 3. Recommended – Additions to the Community Housing Fund At its meeting on June 14, 2017, the Community Affordable Housing Advisory Board (CAHAB) heard three different applications for impact fee and down payment assistance, totaling approximately $200,000. All of the projects received a favorable recommendation from the CAHAB and will be coming to the Commission for consideration in a matter of weeks. We recommend adding a $200,000 lump sum to the Community Housing Fund appropriations for “impact fee or down payment assistance” so that, if the Commission were to grant any or all of the request, we would not have to advertise and hold a budget amendment hearing to do so. Adding this appropriation amount does not approve any of the projects, it just authorizes spending authority once an individual project application has been approved. A sheet of miscellaneous amounts is attached to this Memo to assist the Commission with a number of issues that were discussed during the budget work sessions. FISCAL EFFECTS: The Final Budget adoption has far-reaching fiscal effects, which are described in the City Manager’s Recommended Budget, in the numerous materials prepared for budget work sessions, and in the information above. The specific effect on a typical residential property is described below. Typical Residential Property: Annual Increase Final Budget Street Maintenance Assessments $ 28.78 Arterial Street Assessment $ 27.57 Forestry Assessment $ 2.93 Property Taxes $ - Water Services $ 10.12 Sewer Services $ 11.90 Storm Water Services $ - 249 Annual Increase $ 81.30 Monthly Increase $6.78 The effective annual increase of all of these changes would be 3.9% for the typical residential property owner. Attachments: Appropriation Resolution No. 4803 Financial Summary Changes in Fund Balance Gallatin County Sheriff’s Request Miscellaneous Items List Report compiled on: June 20, 2017 250 Page 1 of 4 COMMISSION RESOLUTION NO. 4803 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING FUNDS FOR VARIOUS BUDGET UNITS, AND FURTHER ESTIMATING REVENUE NECESSARY TO OPERATE AND MAINTAIN SERVICES OF MUNICIPAL GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30, 2018. WHEREAS, the City Commission did, on the 5th day of June, 2017, receive and hear the City Manager’s Budget Recommendations for Fiscal Year 2017-2018 (Fiscal Year 2018); and WHEREAS, the City Commission did, on June 5th, June 12th, and June 19th hold Budget Work Sessions that were open to the public to discuss the details of the Recommended Budget and make changes to the same; and WHEREAS, the City Commission did, on the 26th day of June, 2017, after due and proper legal notice, conduct a public hearing on the proposed municipal budget. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 The City Commission of the City of Bozeman, Montana, does hereby authorize and appropriate expenditures of governmental fund types (general fund, special revenues funds, debt service funds and capital project funds) and operating expenses for proprietary fund types (enterprise funds and internal service funds) and fiduciary fund types (permanent funds) for budget 251 Resolution 4803, Appropriating Funds for Fiscal Year ending June, 30, 2018 Page 2 of 4 units and purposes set forth below, in the amounts designated herein, as follows. The City Commission further authorizes and re-appropriates the unexpended balance of Capital Improvement Program & repair and equipment items previously budgeted which have not been completed. Budget Unit Total/Fund General Fund $ 31,772,812 Special Revenue Funds 29,374,154 Debt Service Funds 3,758,106 Capital Projects 2,268,375 Enterprise Funds 33,025,000 Internal Service Funds 6,058,956 Permanent Funds 0 GRAND TOTAL – Operating Budget $ 106,257,403 Section 2 The City Commission of the City of Bozeman, Montana does hereby estimate revenues for the various funds, as follows: General Fund $ 30,343,623 Special Revenue Funds 23,991,866 Debt Service Funds 2,436,215 Capital Projects 2,272,781 Enterprise Funds 30,615,254 Internal Service Funds 6,010,612 Permanent Funds 106,000 252 Resolution 4803, Appropriating Funds for Fiscal Year ending June, 30, 2018 Page 3 of 4 GRAND TOTAL – Estimated Revenues $ 95,776,351 Section 3 That budget information contained in the "City Manager's Recommended Budget for Fiscal Year 2017-2018" document pertaining to Policy Direction, Fiscal Policy, and the specific information concerning budgeting for each department, as may be subsequently amended prior to final adoption of the budget, are hereby incorporated into the document entitled "Approved Budget for Fiscal Year 2017-2018" and are hereby adopted by reference. Section 4 Pursuant to Sections 7-6-4006 and 7-6-4012, M.C.A., the City Commission hereby delegates appropriation and budget amendment authority to the City Manager for the expenditures from the following funds: debt service funds; fee-based budgets; trust funds; federal, state and private grants accepted and approved by the City Commission; special assessments; monies borrowed during the year; proceeds from sale of land; and funds for gifts or donations. Section 5 Pursuant to Section 7-6-4030, M.C.A., this resolution, upon its passage, shall be in full force and effect on July 1, 2017. Section 6 That upon this resolution becoming effective, as provided in Section 5 above, all resolutions and parts thereof in conflict herewith are hereby repealed. 253 Resolution 4803, Appropriating Funds for Fiscal Year ending June, 30, 2018 Page 4 of 4 Section 7 That should it be found by any court of competent jurisdiction that any section, clause, portion, sentence, word, or phrase of this resolution is deemed to be contrary to any existing law or regulations, that in this instance, it is the intent of the City Commission of the City of Bozeman, Montana, that all other portions, sections, words, clauses, phrases, or paragraphs of this document shall remain in full force and effect. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 26th day of June, 2017. _________________________________ CARSON TAYLOR Mayor ATTEST: _____________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 254 FINANCIAL SUMMARY General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds Projected Beginning Fund Balance/Working Capital6,818,240 16,900,399 4,204,022 11,257,048 16,626,396 286,675 1,161,335 57,254,115 Estimated Revenues30,343,623 23,991,866 2,436,215 2,272,781 30,615,254 6,010,612 106,000 95,776,351 Less Appropriations31,772,812 29,374,154 3,758,106 2,268,375 33,025,000 6,058,956 - 106,257,403 Increase/(Decrease) in Fund Balance/Working Capital(1,429,189) (5,382,288) (1,321,891) 4,406 (2,409,746) (48,344) 106,000 (10,481,052) Projected Ending Fund Balance/Working Capital5,389,051$ 11,518,111$ 2,882,131$ 11,261,454$ 14,216,650$ 238,331$ 1,267,335$ 46,773,063$ Financial SummaryFinal BudgetFiscal Year 2017-2018255 CHANGES IN FUND BALANCE/WORKING CAPITAL  Projected Beginning Estimated Appropriations Budgeted Ending Fund Balance/ Revenues Fund Balance/ Working Capital Working Capital  General Fund 010 General Fund 6,818,240$                    30,343,623$         31,772,812$           5,389,051$                 Special Revenue Funds   100 Planning Fund 778,255                          1,224,139            1,505,363              497,031                       103 Health‐Medical Insurance 328,120                          2,476,888            2,476,888              328,120                       108 Community Transportation 119,158                          1,660                     ‐                           120,818                       109 Highway Safety Improvement Projects 180                                 180                        ‐                           360                              110 Gas Tax Apportionment 943,074                          966,999                960,500                   949,573                       111 Street Maintenance District 167,585                          5,366,672            5,925,008              (390,751)                     112 Tree Maintenance 127,984                          692,073                706,937                   113,120                       113 Fire Impact Fee 1,531,024                      372,250                50,000                     1,853,274                   114 Street Impact Fee 5,647,140                      3,224,710            7,746,245              1,125,605                   115 Building Inspection Special Revenue 1,383,118                      1,769,150            2,086,952              1,065,316                   116 Dowtown Improvement District 581,813                          1,870,510            1,908,000              544,323                       119 Economic Development Loan Fund 17,500                            48,500                  31,000                     35,000                         120 Community Housing 494,640                          291,245                124,400                   661,485                       121 Housing Revolving Loan Fund 6,644                              5,325                     ‐                           11,969                         123 Big Sky Ec Dev Grant 16,500                            50,000                  50,000                     16,500                         125 Drug Forfeiture 9,537                              232,012                221,124                   20,425                         128 Fish Wildlife And Park Management Areas 20,530                             ‐                        8,000                       12,530                         130 Americans With Disability Act 35,622                            240                        ‐                           35,862                         131 Beautification of Bozeman 1,000                               ‐                         ‐                           1,000                           132 Bogert Park Special Revenue 17,644                            2,200                     ‐                           19,844                         133 Recreation Department Special Revenue 10,910                            2,040                    9,500                       3,450                           135 Cemetery Department Special Revenue 2,424                              15                           ‐                           2,439                           136 Park Department Special Revenue 13,878                            3,180                    9,000                       8,058                           137 Library Department Special Revenue 94,251                            75,300                   ‐                           169,551                       138 Law & Justice Center 331,499                           ‐                        19,125                     312,374                       139 Police Department Special Revenue 315,556                          19,150                   ‐                           334,706                       140 Police Domestic Violence (35,000)                          265,000                219,030                   10,970                         141 Street Arterial Construction (813,419)                        1,821,250            1,780,311              (772,480)                     143 TIF Midtown (formerly N7th) 1,536,824                      708,800                712,000                   1,533,624                   144 TIF NE Urban Renewal 208,446                          121,500                166,600                   163,346                       145 TIF Mandeville Industrial (5,036)                             36,097                   ‐                           31,061                         146 Lighting Dist.'s (146‐170, 181, 182, 200‐241)525,896                          373,361                441,133                   458,124                       174 Victim Witness Advocate 316,818                          63,950                  150,000                   230,768                       175 Senior Transportation 38,442                            93,021                  92,915                     38,548                         176 Business Improvement District 3,844                              156,200                156,200                   3,844                           177 Neighborhood Associations 984                                 7                             ‐                           991                              179 Diaster Relief Fund (Hail Damage) 8,636                              8,636                     ‐                           17,272                         183 Fire Department Special Revenue 153,372                          43,506                  40,000                     156,878                       184 Parks Master Plan Develop 104,413                           ‐                         ‐                           104,413                       185 Insurance Proceeds ‐                                   ‐                         ‐                            ‐                               186 Development Impacts 150,825                          250                        ‐                           151,075                       187 Fire Department Equipment 1,037,749                      374,160                530,500                   881,409                       188 City/County Drug Forfeiture 158,122                          1,000                     ‐                           159,122                       189 Story Mansion Special Revenue 29,995                            18,500                  47,423                     1,072                           191 Tourism BID 1,218                              1,201,200            1,200,000              2,418                           193 Street Maintenance ‐ Babcock SID 5,700                              5,700                     ‐                           11,400                         194 Street Maintenance ‐ Durston SID 5,290                              5,290                     ‐                           10,580                         850 Park Land ‐ Cash in Lieu 471,694                           ‐                         ‐                           471,694                       Total Special Revenue Funds 16,900,399$                  23,991,866$         29,374,154$           11,518,111$               CHANGES IN FUND BALANCE/WORKING CAPITAL Fiscal Year 2018 256 CHANGES IN FUND BALANCE/WORKING CAPITAL  Projected Beginning Estimated Appropriations Budgeted Ending Fund Balance/ Revenues Fund Balance/ Working Capital Working Capital Fiscal Year 2018  Debt Service Funds 300 Special Improvement District Revolv. Fund 2,706,848                      31,000                  1,588,781              1,149,067                   303 G.O. Refunding Series 2012 143,007                          276,000                276,000                   143,007                       304 Park & Trails Bond (2,500)                             1,080,538            1,080,537              (2,499)                          305 TIF 2007 Downtown Bonds ‐                                  422,288                422,288                    ‐                               310 SID Funds 1,356,667                      626,389                390,500                   1,592,556                   Total Debt Service Funds 4,204,022$                    2,436,215$           3,758,106$             2,882,131$                 Construction Funds Capital Projects 11,257,048                    2,272,781            2,268,375              11,261,454                 Enterprise Funds 600 Water 10,124,087                    12,099,248          11,967,455            10,255,880                 610 Water Impact Fee ‐ Net Assets 1,856,250                      1,798,400            3,790,000              (135,350)                     620 Waste Water 3,411,794                      8,889,627            9,214,281              3,087,140                   630 Waste Water Impact Fee ‐ Net Assets (135,912)                        1,221,150            1,440,000              (354,762)                     640 Solid Waste 563,456                          3,818,402            3,742,257              639,601                       641 Landfill Post‐Closure & Monitoring 107,000                          368,084                414,417                   60,667                         650 Parking Enterprise 150,845                          982,590                968,230                   165,205                       670 Storm Water 548,876                          1,437,753            1,488,360              498,269                       Total Enterprise Funds 16,626,396$                  30,615,254$         33,025,000$           14,216,650$               Internal Service Funds   710 Vehicle Maintenance Shop 81,874                            1,189,700            1,238,044              33,530                         720 Health‐Medical Self‐Insurance Fund 204,801                          4,820,912            4,820,912              204,801                       Total Internal Service Funds 286,675$                       6,010,612$           6,058,956$             238,331$                    Permanent Funds 800 Cemetery Perpetual Care 1,161,335                      106,000                 ‐                           1,267,335                   Total Permanent Funds 1,161,335                      106,000                 ‐                           1,267,335                   Total All Funds 57,254,115$                  95,776,351$         106,257,403$         46,773,063$               257 Brian M. Gootkin Sheriff/Coroner Dan Springer Undersheriff Warren Hiebert Chaplain Jason Jarrett Jail Administrator 615 South 16th Bozeman, Montana 59715 (406) 582-2100 FAX (406) 582-2126 OFFICE OF THE SHERIFF/CORONER GALLATIN COUNTY, MONTANA June 14, 2017 Steve Crawford Chief of Police 615 S. 16th Ave. Bozeman, MT. 59715 RE: Law and Justice Security Dear Chief Crawford; The Sheriff’s Office is attempting to procure funding to hire four (4) Detention Officers to provide security for the Law and Justice Center. We have been in discussions with our facilities division as well as our Capital Improvement Project (CIP) committee members to remodel a portion of the L and J to improve security. This would require a single entry point for all citizens entering the Law and Justice Center. Individuals would be screened prior to entering the building and courtrooms would be swept throughout the day. A significant number of the citizens entering the building would be customers of Municipal Court. I am asking for funding from the City of Bozeman to fund one (1) of the positions. Below is a breakdown of those costs: Salary $35,450 Fringe $17,208 Operations $5,970 Total $58,628 annually Thank you for your consideration on this matter Sincerely, Brian M. Gootkin Sheriff 258 Miscellaneous Items & Amounts 1.  Estimated Value of one mill 92,915$                     2.  Amount of HRDC's Request above the Recommended Budget 63,499$                      3.  Band Request above the Recommended Budget 4,440$                       4.  Sheriff's Request, annually 58,628$                     259