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HomeMy WebLinkAbout09-11-17 City Commission Packet Materials - A2. Resolution 4843, Budget Amendment for Spending Reserve Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Commission Resolution No. 4843 – Amending the City’s Annual Budget for General Fund Appropriations for the Fiscal Year Ending June 30, 2018 (FY18). MEETING DATE: September 11, 2017 AGENDA ITEM: Action RECOMMENDATION: The City Manager recommends not adopting the resolution. A prudent City would go beyond the minimum to have three months (25%) reserve in the General fund. There are several pending strategic plan items not included in the FY 18 budget that might need funding at a future point in the year. BACKGROUND: The Advertised hearing you can allocate up to $290,000 of the General fund reserve. The reserve minimum for the General fund is 16.67% of the budgeted revenues and for FY18 that calculates to be $5,060,000. August 28, 2017 Commissioner meeting, Resolution 4821 passed setting the tax levy and based on the dollars that will be collected, the General Fund will have an excess of $290,000 over the minimum required fund reserve. Based on discussions from previous commission meetings the following appropriation has been drafted. Tonight you can amend the projects and amounts in the draft resolution up to $290,000 in total. 410 Streamline $64,000 1.0 FTE Parks $55,000 Other purposes determined $171,000 Total Additional Appropriations $290,000 ALTERNATIVES: Adopt the resolution. FISCAL EFFECTS: The current budgeted spending in the General Fund will increase up to $290,000. The reserve would remain only at our minimum standard and strategic items not accounted for could go unfunded until FY19. Attachment: Resolution No. 4843 Report compiled on September 1, 2017 411 Page 1 of 3 COMMISSION RESOLUTION NO. 4843 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING THE CITY’S ANNUAL BUDGET TO INCLUDE ITEMS TOTALLING UP TO $290,000 TO BE FUNDED WITH GENERAL FUND RESERVE DOLLARS THAT EXCEED OUR MINIMUM RESERVE REQUIREMENTS FOR THE FISCAL YEAR ENDING JUNE 30, 2018. WHEREAS, the City Commission did, on the llth day of September, 2017, after due and proper legal notice, conduct a public hearing and adopt a municipal budget for Fiscal Year 2017- 2018 (Fiscal Year 2018); and WHEREAS, the City has now received Certified Taxable Values from the State of Montana that allow for the imposition of tax revenues exceeding the amounts in the adopted budget; and WHEREAS, the City Commission did, on the 11th day of September, 2017, after due and proper legal notice, conduct a public hearing on proposed amending the municipal budget. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 – Appropriation Additions The City Commission of the City of Bozeman, Montana, does hereby authorize additional expenditures in the General Fund: 412 Resolution 4843, Budget Amendment for Items to be Funded with Revenues that Exceed our Minimum General Fund Reserve Page 2 of 3 Streamline $64,000 1.0 FTE Parks $55,000 Other purposes determined $171,000 Total Additional Appropriations $290,000 Section 2 – Use of General Fund Cash on Hand The increased appropriation will be funded with cash on hand in the General Fund that exceeds our required minimum reserve level. Section 3 Pursuant to Section 7-6-4030, M.C.A., this resolution, upon its passage, shall be in full force and effect on July 1, 2016. Section 4 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, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 11th day of September, 2017. ___________________________________ CARSON TAYLOR Mayor 413 Resolution 4843, Budget Amendment for Items to be Funded with Revenues that Exceed our Minimum General Fund Reserve Page 3 of 3 ATTEST: _____________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 414