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HomeMy WebLinkAbout06-25-18 City Commission Packet Materials - A4. Resolution 4900, FY19 Funds Appropriation for Budget Units and Operating Revenue Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director Anna Rosenberry, Assistant City Manager Andrea Surratt, City Manager SUBJECT: Resolution No. 4900 - 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, 2019. MEETING DATE: June 25, 2018 AGENDA ITEM TYPE: Public Hearing & Action Item RECOMMENDATION: Take public comment, make further revisions, and adopt Resolution No. 4900 – Appropriation Resolution for the Fiscal Year Ending June 30, 2019 (FY19). 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 FY19. 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 14th – FY18 City Manager’s Recommended Budget overview • May 21st – Special Revenue Funds details • June 4th – Receipt of Business Improvement Districts and Tax Increment Financing Districts work plans and budgets (on consent), • June 11th- General Fund and Community Development Fund work session • June 18th – Enterprise and Internal Service Funds work session and General Budget Discussion 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: 194 1. The budgets submitted for the Tax Increment Districts and the Business Improvement Districts have been incorporated, based on their respective June 4th consent items. 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 General Fund Reduce Commission Room Remodel (reduced project scope) $ (100,000) Finance - Delay purchase of Business Intelligence Software One Year to investigate the use of a similar Microsoft product ($2,000 license costs) $ (33,000) Police - Unmarked Vehicle, can be purchased out of FY18 $ (15,000) Finance - Billing Clerk Furniture (move to Public Works Administartion) $ (7,000) Clerk - Commission Room Displacement equipment (not needed) $ (5,000) Total Recommended Deletions to the General Fund $ (160,000) It is recommended that this added amount be left to increase the General Fund’s ending reserve level. 2. Recommendations – Additions to the General Fund Budget General Fund HRDC Request for additional support $ 68,000 Parks - New Maintenance Contracts to maintain parks $ 30,000 Municipal Court - Rocky Mountain Security (6 months) $ 6,000 Total Recommended Additions to the General Fund $ 104,000 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 $56,000. This would bring the budgeted projected ending balance to $5,380,985, or 16.9% of General Fund Revenues. This projected ending balance would exceed the City’s minimum balance level by $71,728. There are two items that we would not recommend cutting from the budget unless absolutely necessary; we reluctantly would make the cut but see much more benefit for the community in keeping the item in the budget. Those items are • FTE Code Compliance Position (split among several funds). We reluctantly propose this and only offer it as a last resort. This position will greatly improve the function of code compliance which is impacted by growth. Currently we only have one staff person doing that work. (approx.. $15,000 in the General Fund) 195 • Parks - Delay purchase of a Snow Removal vehicle. We reluctantly offer this cut. Parks has an old blade that goes on the front of a truck. This equipment will make it more efficient to clean the paved trails. ($65,000) There is one item that needs our awareness as a possible future expense, but we are not putting it in as a recommended addition at this time. • Parks – If a Parks Maintenance District is considered to be established in 2019 or early 2020 by special ballot, we need to have $100,000 for the election. Other options to establish a district as we established the Arterial & Collector District, through an administrative process with a protest petition. This protest method is estimated to cost $7,100 for printing and mailing. 3. Recommendation - Addition to the Tree Maintenance Fund (Forestry) Budget Tree Maintenance Fund Increase budget amount for Stump Grinder (FOR10) purchase $ 26,000 The FY18 Budget contained the purchase of a Stump Grinder (FOR10) in the amount of $24,000. Actual prices of the equipment are higher than expected an additional $26,000 is needed, for a total purchase price of $50,000. We recommend adding this amount to the Tree Maintenance Fund budget, so that it can be purchased early in FY19. There is funding for this additional cost within the Tree Maintenance Fund’s projected ending cash. Because of the savings achieved by sharing a truck purchase with the Solid Waste department, this would leave our total ending cash only $5,000 less than expected when our original capital plan was prepared ($20,000 in savings from sharing the truck with solid waste). 4. Recommendation - Addition to the Water and Wastewater Fund Budgets Water and Wastewater Fund Contracted Services for Annexation Study areas – Water Fund $ 100,000 Contracted Services for Annexation Study areas – Wastewater Fund $ 100,000 Total Recommended Additions for Annexation Study areas $ 200,000 Increase the Water and Wastewater funds by $100,000 each for a total of $200,000 for contracted services for the Annexation Study project to address one of the seven priority items in the Strategic Plan. It is recommended that cash on hand in each fund be used to pay for this work. 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. 196 The effective annual increase of all of these changes would be $4.23 increase for the typical residential property owner. Water and Wastewater rate changes are expected to be determined and adopted later this summer. Attachments: Appropriation Resolution No. 4900 Financial Summary Changes in Fund Balance Report compiled on: June 15, 2018 FY18 Approved FY19 Recommended FY 19 Recommended increase % Change Street Assessment 198.02 207.92 9.90 5.0% Arterial Street Assessment 69.97 51.78 (18.19) -26.0% Tree (Forestry ) Assessment 22.48 23.61 1.13 5.0% Property Taxes 711.10 722.49 11.39 1.6% Storm Water Services 70.92 70.92 - 0.0% Water Service 516.24 TBD TBD Sewer Services 606.72 TBD TBD 4.23$ 0.35$ Total Annual Increase Pending Water/ Sewer rates Monthly Increase 197 Page 1 of 4 COMMISSION RESOLUTION NO. 4900 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, 2019. WHEREAS, the City Commission did, on the 14th day of May, 2018, receive and hear the City Manager’s Budget Recommendations for Fiscal Year 2018-2019 (Fiscal Year 2019); and WHEREAS, the City Commission did, on May 14th, May 21st, June 11, and June 18th 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 25th day of June, 2018, 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 198 Resolution 4900, Appropriating Funds for Fiscal Year ending June, 30, 2019 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 $34,013,287 Special Revenue Funds $32,526,665 Debt Service Funds 2,398,522 Capital Projects 1,019,011 Enterprise Funds 40,108,009 Internal Service Funds 8,461,831 Permanent Funds 0 GRAND TOTAL – Operating Budget $118,527,325 Section 2 The City Commission of the City of Bozeman, Montana does hereby estimate revenues for the various funds, as follows: General Fund $ 31,855,541 Special Revenue Funds 26,349,185 Debt Service Funds 2,406,023 Capital Projects 284,011 Enterprise Funds 38,482,213 Internal Service Funds 8,467,995 199 Resolution 4900, Appropriating Funds for Fiscal Year ending June, 30, 2019 Page 3 of 4 Permanent Funds 88,500 GRAND TOTAL – Estimated Revenues $107,933,468 Section 3 That budget information contained in the "City Manager's Recommended Budget for Fiscal Year 2018-2019" 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 2018-2019" 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, 2018. 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. 200 Resolution 4900, Appropriating Funds for Fiscal Year ending June, 30, 2019 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, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 25th day of June, 2018. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _____________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 201  General Fund  Special Revenue  Debt Service  Construction Projects  Enterprise  Internal Service  Permanent   All Funds Projected Beginning  Fund Balance/Working Capital7,486,631$        19,451,235$      2,311,989$        9,072,613$        18,235,666$      1,062,137$        1,307,838$        58,928,109$     Estimated Revenues31,855,541        26,349,185        2,406,023          284,011              38,482,213        8,467,995          88,500                107,933,468     Less Appropriations34,013,287        32,526,665        2,398,522          1,019,011          40,108,009        8,461,831          ‐                      118,527,325     Increase/(Decrease) in  Fund Balance/Working Capital(2,157,746)         (6,177,480)         7,501                  (735,000)            (1,625,796)         6,164                  88,500                (10,593,857)      Projected Ending  Fund Balance/Working Capital5,328,885$        13,273,755$      2,319,490$        8,337,613$        16,609,870$      1,068,301$        1,396,338$        48,334,252$     Financial SummaryFinal BudgetFiscal Year 2018‐2019General Fund29%Special Revenue27%Debt Service2%Construction Projects1%Enterprise34%Internal Service7%Permanent0%Expenditures by Fund TypeGeneral Fund30%Special Revenue24%Debt Service2%Construction Projects0%Enterprise36%Internal Service8%Permanent0%Revenue by Fund Type202  Fiscal Year  Projected Fund  Balance/Working  Capital   Estimated  Revnues   Appropriations   Budgeted Ending  Fund  Balance/Working  Capital   General Fund 10 General Fund 7,486,631               31,855,541          34,013,287          5,328,885                Special Revenue Funds   100 Planning Fund 785,972                  1,294,196            1,661,194            418,974                   103 Health‐Medical Insurance 349,390                  2,654,566            2,654,566            349,390                   108 Community Transportation 59,092                     1,200                    ‐                        60,292                     109 Highway Safety Improvement Projects 23,242                     200                       ‐                        23,442                     110 Gas Tax Apportionment 1,511,755               1,411,031            1,171,500            1,751,286                111 Street Maintenance District (571,288)                 5,779,698            5,974,325            (765,915)                  112 Tree Maintenance 313,475                  737,221               799,577               251,119                   113 Fire Impact Fee 1,873,002               392,363               ‐                        2,265,365                114 Street Impact Fee 2,301,838               4,342,250            6,418,000            226,088                   115 Building Inspection Special Revenue 1,604,882               1,800,200            2,660,416            744,666                   116 Dowtown Improvement District 1,711,289               1,875,000            2,052,500            1,533,789                119 Economic Development Loan Fund 842,750                  50,000                 31,000                 861,750                   120 Community Housing 556,409                  539,720               371,858               724,271                   121 Housing Revolving Loan Fund 6,496                       1,285                    ‐                        7,781                       123 Big Sky Ec Dev Grant ‐                           50,000                 50,000                 ‐                            125 Drug Forfeiture 81,152                     157,942               231,210               7,884                       128 Fish Wildlife And Park Management Areas 12,523                     150                       8,000                    4,673                       130 Americans With Disability Act 35,938                     300                       ‐                        36,238                     131 Beautification of Bozeman 1,000                       9                           ‐                        1,009                       132 Bogert Park Special Revenue 17,644                     6,300                    5,000                    18,944                     133 Recreation Department Special Revenue 2,415                       2,100                    ‐                        4,515                       135 Cemetery Department Special Revenue 2,418                       20                         ‐                        2,438                       136 Park Department Special Revenue 2,371                       2,600                    ‐                        4,971                       137 Library Department Special Revenue 90,896                     75,100                 ‐                        165,996                   138 Law & Justice Center 312,375                  ‐                        19,125                 293,250                   139 Police Department Special Revenue 308,628                  14,500                 ‐                        323,128                   140 Police Domestic Violence 45,970                     ‐                        ‐                        45,970                     141 Street Arterial Construction 1,515,855               1,734,907            3,568,000            (317,238)                  143 TIF Midtown (formerly N7th) 1,492,093               661,449               1,531,900            621,642                   144 TIF NE Urban Renewal 363,225                  141,000               434,100               70,125                     145 TIF Mandeville Industrial (8,657)                      25,000                 4,000                    12,343                     146 Lighting Dist.'s (146‐170, 181, 182, 200‐243)507,138                  431,600               472,517               466,221                   174 Victim Witness Advocate 291,204                  66,100                 150,000               207,304                   175 Senior Transportation 4,198                       105,444               105,244               4,398                       176 Business Improvement District 7,495                       162,700               162,175               8,020                       177 Neighborhood Associations 984                          8                           ‐                        992                           178 Veteran's Treatment Court ‐                           120,000               87,156                 32,844                     179 Diaster Relief Fund  1,289,310               11,000                 ‐                        1,300,310                183 Fire Department Special Revenue 113,371                  3,650                    40,000                 77,021                     184 Parks Master Plan Develop 54,413                     ‐                        ‐                        54,413                     186 Development Impacts 149,891                  1,500                    ‐                        151,391                   187 Fire Department Equipment 880,400                  423,476               606,000               697,876                   188 City/County Drug Forfeiture 159,122                  1,600                    ‐                        160,722                   189 Story Mansion Special Revenue (11,943)                   22,000                 57,302                 (47,245)                    191 Tourism BID 7,132                       1,201,200            1,200,000            8,332                       193 Street Maintenance ‐ Babcock SID 8,320                       3,200                    ‐                        11,520                     CHANGES IN FUND BALANCE/WORKING CAPITAL 203  Fiscal Year  Projected Fund  Balance/Working  Capital   Estimated  Revnues   Appropriations   Budgeted Ending  Fund  Balance/Working  Capital  194 Street Maintenance ‐ Durston SID 47,322                     40,900                 ‐                        88,222                     850 Park Land ‐ Cash in Lieu 298,728                  4,500                    ‐                        303,228                   Total Special Revenue Funds 19,451,235             26,349,185          32,526,665          13,273,755              Debt Service Funds 300 Special Improvement District Revolv. Fund 1,862,643               30,000                 224,011               1,668,632                303 G.O. Refunding Series 2012 133,115                  275,900               276,900               132,115                   304 Park & Trails Bond 40,956                     1,083,136            1,088,138            35,954                     305 TIF 2007 Downtown Bonds  ‐                           423,673               423,673               ‐                            310 SID Funds 275,275                  593,314               385,800               482,789                   Total Debt Service Funds 2,311,989               2,406,023            2,398,522            2,319,490                Construction Funds 500's Capital Projects 9,072,613               284,011               1,019,011            8,337,613                Enterprise Funds 600 Water 10,016,459            11,036,454        12,102,143          8,950,770                610 Water Impact Fee ‐ Net Assets 438,668                  1,888,070            2,186,020            140,718                   620 Waste Water 3,004,211              9,652,361          10,815,672          1,840,900                630 Waste Water Impact Fee ‐ Net Assets 1,548,610               9,287,208            8,625,000            2,210,818                640 Solid Waste  1,557,637               3,948,592            3,764,084            1,742,145                641 Landfill Post‐Closure & Monitoring 60,667                     250,000               311,417               (750)                         650 Parking Enterprise 905,133                  1,021,340            859,371               1,067,102                670 Storm Water  704,281                  1,398,188            1,444,302            658,167                   Total Enterprise Funds 18,235,666             38,482,213          40,108,009          16,609,870             Internal Service Funds   710 Vehicle Maintenance Shop 652,625                  1,265,626            1,259,462            658,789                   720 Health‐Medical Self‐Insurance Fund 409,512                  4,820,912            4,820,912            409,512                   750 Public Works Administration ‐                           2,381,457            2,381,457            ‐                            Total Internal Service Funds 1,062,137               8,467,995            8,461,831            1,068,301                Permanent Funds 800 Cemetery Perpetual Care 1,307,838               88,500                 ‐                        1,396,338                Total All Funds 58,928,109             107,933,468       118,527,325       48,334,252             204