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HomeMy WebLinkAbout10-23-17 City Commission Packet Materials - A2. Resolution 4850, Budget Amendment for Side Load Truck Replacement Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director Kevin Handelin, Superintendent of Solid Waste Division SUBJECT: Commission Resolution No. 4850 – Amending the City’s Annual Budget for the Solid Waste Fund Appropriations for the Fiscal Year Ending June 30, 2018 (FY18). MEETING DATE: October 23, 2017 AGENDA ITEM: Action RECOMMENDATION: Approve Resolution No. 4850 - Amending the City’s Annual Budget for Solid Waste Fund Appropriations. BACKGROUND: Capital improvement item SW38, side-load truck replacement, was budgeted for $300,000 in FY2019. The 2008 truck this is replacing has 14,738 hours or 163,339 miles and is in need of major repair. Estimated repair to cost $35,000 and will be out of service for two months. This truck’s replacement cycle at the time was every 8 years. After reviewing the cost of service of 8- year cycles, we concluded that replacement should take place every 6 years for side-load trucks. The Commission adopted the 6-year cycle in FY2017. CIP item, SW38, will only arrive 3 months prior to the beginning of FY19. The expenditures will be funded with cash-on-hand that is available in the Solid Waste Fund. 41 ALTERNATIVES: Do not fund the project at this time and budget for this replacement in FY2019, which begins July 1, 2018. FISCAL EFFECTS: The current budgeted spending in the Solid Waste Fund will increase by a total of $300,000. The FY18 estimated ending cash balance in the Solid Waste Fund will be decreased from $1,590,722 to $1,290,722. The Solid Waste Fund has sufficient cash available to fund the additional spending in FY18. Attachment: Resolution No. 4850 Report compiled on October 5, 2017 42 Page 1 of 3 COMMISSION RESOLUTION NO. 4850 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING FISCAL YEAR 2018 (FY18) SOLID WASTE FUND BUDGET TO INCLUDE ADDITIONAL EXPENDITURES OF $300,000. WHEREAS, the City Commission did, on the 26th day of June, 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 need to change the projects listed for funding in Fiscal Year 2018 in the most-recently adopted Capital Improvement Plan; and WHEREAS, the City Commission did, on the 23rd day of October 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 Changes The City Commission of the City of Bozeman, Montana, does hereby authorize the following changes to expenditures in the Solid Waste Fund: Additions: This project and amount is added to the FY18 budget. SW38 – Side Load Truck Replacement of Asset #3367 $300,000 Total Appropriations Changes: $300,000 43 Resolution 4850, Budget Amendment for Solid Waste Fund Project SW38 for FY18 Page 2 of 3 Section 2 – Use of Cash on Hand in the Solid Waste Fund The increased appropriation will be funded with cash on hand in the Solid Waste Fund. 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, 2017. 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. 44 Resolution 4850, Budget Amendment for Solid Waste Fund Project SW38 for FY18 Page 3 of 3 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 23rd day of October, 2017. ___________________________________ CARSON TAYLOR Mayor ATTEST: _________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 45