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HomeMy WebLinkAbout06-22-20 City Commission Packet Materials - A2. Res 5170 Appropriating Funds for the FY21 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director Anna Rosenberry, Assistant City Manager Jeff Mihelich, City Manager SUBJECT: Resolution No. 5170 - 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, 2021. MEETING DATE: June 22, 2020 AGENDA ITEM TYPE: Action RECOMMENDATION: Take public comment, make further revisions, and adopt Resolution No. 5170 – Appropriation Resolution for the Fiscal Year Ending June 30, 2021 (FY21). 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 FY20. 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: • June 1st – FY21 City Manager’s Recommended Budget overview and Special Revenue Funds details • June 8th - Enterprise and Internal Service Funds work session • June 17th – General Fund work session Tonight has been advertised as the hearing for adoption of the Final Budget. The Appropriation Resolution: The Resolution that is attached comes from the City Manager’s Recommended Budget, with the following change INCLUDED. This change represents updated budget information that has been discussed in previous budget work sessions. Enterprise fund- Wastewater Fund 1. As presented at the June 8th work session, the Wastewater fund needs an increase in appropriations for a project by $700,000. 282 General Fund Ending Fund Balance Recommendation: Fund Balance The FY21 budget has an increase in total fund balances. The General Fund in the past has reserved its required minimum of 16.67% of annual revenues. We are recommending that the Commission move towards the Government Finance Officer Association’s updated best practice with a risk- based approach. We will be bringing forward an Ordinance to update our reserve policy to align with best practice. Using the risk based approach we have determined a reserve 17% of expenditures as the minimum (see Appendix D for Analysis). We have recommended an additional amount for unexpected expenditures with the sale of Fire station 1, landfill monitoring capital costs and to aid in economic down turns with COVID-19. 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 estimated cost per mill is $4.82. The typical resident is calculated using an average sized lot (7,500s qft), median home of $354,000 (this was the median home taxable value at last appraisal cycle in FY20) and water use of 10-HCF (would be charged tier 2): Estimated Starting Fund Balance 7,439,729 Estimated FY21 Revenues 33,698,821 Estimated Expenditures (34,673,271) Estimated Net Income (loss)(974,450) Estimated ending Fund Balance 6,465,279 Current Reserve Requirement (16.67% of budgeted revenu 5,617,593 Recommended Best Practice Reserve (Risk based determination of 17% of Expenditures 5,894,456 The increase with new reserve 276,863 Fund Balance over Recommended Reserve 570,823 Estimated Number of mills over new recommended reserv 4.41 Fund Balance over Current Reserve Requirement 847,686 Estimated Number of mills over current reserve 6.55 283 Attachments: Appropriation Resolution No. 5170 Financial Summary Changes in Fund Balance On File: City Manager Recommended Budget for FY21 Report compiled on: 06/15/20 284 Page 1 of 3 COMMISSION RESOLUTION NO. 5170 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, 2021. WHEREAS, the City Commission did, on the 1st day of June, 2020, receive and hear the City Manager’s Budget Recommendations for Fiscal Year 2020-2021 (Fiscal Year 2021); and WHEREAS, the City Commission did, on June 1, June 8, and June 15th 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 22nd day of June, 2020, 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 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. 285 Resolution 5170, Appropriating Funds for Fiscal Year ending June, 30, 2021 Page 2 of 3 Section 2 The City Commission of the City of Bozeman, Montana does hereby estimate revenues for the various funds, as follows: Section 3 That budget information contained in the "City Manager's Recommended Budget for Fiscal Year 2020-2021" 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 2020-2021" and are hereby adopted by reference. Section 4 Budget Unit Total/Fund General Fund 34,673,271$ Special Revenue Funds 36,635,975$ Debt Service Funds 5,542,649$ Capital Projects 2,250,000$ Enterprise Funds 32,443,299$ Internal Service Funds 10,291,960$ Permanent Funds -$ GRAND TOTAL – Operating Budget 121,837,154$ Budget Unit Total/Fund General Fund 33,698,821$ Special Revenue Funds 32,736,656$ Debt Service Funds 4,738,910$ Capital Projects 2,621,807$ Enterprise Funds 38,492,610$ Internal Service Funds 10,101,796$ Permanent Funds 100,500$ GRAND TOTAL – Estimated Revenues 122,491,100$ 286 Resolution 5170, Appropriating Funds for Fiscal Year ending June, 30, 2021 Page 3 of 3 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, 2020. 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. 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 22nd day of June, 2020. ________________________________________ Chris Mehl Mayor ATTEST: _____________________________________ Mike Maas City Clerk APPROVED AS TO FORM: ________________________________________ GREG SULLIVAN City Attorney 287  General Fund  Special Revenue  Debt Service  Construction Projects  Enterprise  Internal Service  Permanent   All Funds Projected Beginning  Fund Balance/Working Capital7,439,729$        21,342,345$      8,627,366$        ‐$                    23,419,044$      1,369,836$        1,532,341$        63,730,662$     Estimated Revenues33,698,821        32,736,656        4,738,910          2,621,807          38,492,610        10,101,796        100,500              122,491,100     Less Appropriations34,673,271        36,635,975        5,542,649          2,250,000          32,443,299        10,291,960        ‐                      121,837,154     Increase/(Decrease) in  Fund Balance/Working Capital(974,450)            (3,899,319)         (803,739)            371,807              6,049,311          (190,164)            100,500              653,946             Projected Ending  Fund Balance/Working Capital6,465,279$        17,443,026$      7,823,627$        371,807$           29,468,355$      1,179,672$        1,632,841$        64,384,608$     Financial Summary‐ Recommended Budget Fiscal Year 2020 ‐2021288  Fiscal Year  Projected Fund  Balance/Working  Capital   Estimated  Revnues   Appropriations   Budgeted Ending  Fund  Balance/Working  Capital   General Fund 10 General Fund 7,439,729               33,698,821          34,673,271          6,465,279                Special Revenue Funds   100 Planning Fund 1,735,841               1,643,654            2,445,583            933,912                   103 Health‐Medical Insurance 602,764                  2,768,752            2,768,752            602,764                   108 Community Transportation 18,008                     900                       5,000                    13,908                     109 Highway Safety Improvement Projects 23,706                     200                       ‐                        23,906                     110 Gas Tax Apportionment 1,244,472               1,165,000            2,344,500            64,972                     111 Street Maintenance District 180,928                  6,726,156            6,423,105            483,979                   112 Tree Maintenance 411,878                  818,252               777,909               452,221                   113 Fire Impact Fee 3,108,066               470,000               22,500                 3,555,566                114 Street Impact Fee 2,698,630               4,061,000            6,230,001            529,629                   115 Building Inspection Special Revenue 1,197,080               2,070,600            3,217,852            49,828                     116 Dowtown Improvement District 1,885,421               2,026,653            2,026,653            1,885,421                119 Economic Development Loan Fund 823,034                  50,000                 31,000                 842,034                   120 Community Housing 880,251                  972,252               1,024,705            827,798                   121 Housing Revolving Loan Fund 2,426                       1,195                    ‐                        3,621                       123 Big Sky Ec Dev Grant ‐                           50,000                 50,000                 ‐                            125 Drug Forfeiture 5,448                       248,344               251,960               1,832                       128 Fish Wildlife And Park Management Areas 13,186                     200                       2,000                    11,386                     130 Americans With Disability Act 37,309                     500                       ‐                        37,809                     131 Beautification of Bozeman 1,042                       15                         ‐                        1,057                       132 Bogert Park Special Revenue 18,479                     2,750                    5,000                    16,229                     133 Recreation Department Special Revenue 13,913                     2,075                    ‐                        15,988                     135 Cemetery Department Special Revenue 2,515                       30                         ‐                        2,545                       136 Park Department Special Revenue 5,281                       2,250                    ‐                        7,531                       137 Library Department Special Revenue (10,596)                   20,000                 ‐                        9,404                       138 Law & Justice Center 274,125                  ‐                        19,125                 255,000                   139 Police Department Special Revenue 237,766                  15,000                 40,000                 212,766                   140 Police Domestic Violence ‐                           187,040               187,040               ‐                            141 Street Arterial Construction 415,959                  2,253,473            1,588,500            1,080,932                143 TIF Midtown (formerly N7th) 1,600,000               1,164,755            1,164,755            1,600,000                144 TIF NE Urban Renewal 320,000                  273,201               273,201               320,000                   145 TIF Mandeville Industrial 90,680                     25,000                 ‐                        115,680                   Various Lighting Dist.'s (146‐170, 181, 182, 200‐243)483,368                  475,883               528,934               430,317                   174 Victim Witness Advocate 405,098                  73,500                 90,000                 388,598                   175 Senior Transportation 4,822                       129,658               129,408               5,072                       176 Business Improvement District 4,467                       175,750               175,750               4,467                       177 Neighborhood Associations 1,020                       10                         ‐                        1,030                       178 Veteran's Treatment Court 52,283                     145,740               195,409               2,614                       179 Diaster Relief Fund  1,335,117               11,000                 ‐                        1,346,117                183 Fire Department Special Revenue 40,636                     4,000                    10,000                 34,636                     184 Parks Master Plan Develop 17,015                     ‐                        5,000                    12,015                     186 Development Impacts 145,705                  1,500                    5,000                    142,205                   187 Fire Department Equipment 70,561                     522,632               477,500               115,693                   188 City/County Drug Forfeiture 134,578                  1,300                    ‐                        135,878                   189 Story Mansion Special Revenue 1,606                       35,000                 35,048                 1,558                       193 Street Maintenance ‐ Babcock SID 10,581                     2,650                    ‐                        13,231                     194 Street Maintenance ‐ Durston SID 141,513                  4,450                    ‐                        145,963                   CHANGES IN FUND BALANCE/WORKING CAPITAL 289  Fiscal Year  Projected Fund  Balance/Working  Capital   Estimated  Revnues   Appropriations   Budgeted Ending  Fund  Balance/Working  Capital  195 Parks & Trails District ‐                           3,932,225            3,932,174            51                             196 COOCLI Grant ‐                           96,611                 96,611                 ‐                            199 Sports Park ‐                           51,000                 51,000                 ‐                            850 Park Land ‐ Cash in Lieu 656,367                  54,500                 5,000                    705,867                   Total Special Revenue Funds 21,342,345             32,736,656          36,635,975          17,443,026              Debt Service Funds 300 Special Improvement District Revolv. Fund 2,651,562               55,000                 1,313,160            1,393,402                303 G.O. Refunding Series 2012 131,622                  275,400               275,400               131,622                   304 Park & Trails Bond ‐                           1,076,463            1,076,463            ‐                            305 TIF 2007 Downtown Bonds  ‐                           332,448               332,448               ‐                            307 Bozeman Public Safety Center ‐ GO Bonds 30,000                     2,372,450            2,372,450            30,000                     310‐448 SID Funds 5,814,182               501,353               46,932                 6,268,603                450 Sports Park Loan ‐                           125,796               125,796               ‐                            Total Debt Service Funds 8,627,366               4,738,910            5,542,649            7,823,627                Construction Funds 500's Capital Projects ‐                           2,621,807            2,250,000            371,807                   Enterprise Funds 600 Water 10,793,530             11,848,976          10,355,250          12,287,256             610 Water Impact Fee ‐ Net Assets 1,423,503               1,965,831            1,561,291            1,828,043                620 Waste Water 3,915,993               10,363,430          10,682,441          3,596,982                630 Waste Water Impact Fee ‐ Net Assets 3,768,547               6,500,674            1,508,452            8,760,769                640 Solid Waste  1,822,704               4,750,631            4,943,893            1,629,442                641 Landfill Post‐Closure & Monitoring 62,209                     312,000               310,000               64,209                     650 Parking Enterprise 1,108,311               1,147,840            1,228,464            1,027,687                670 Storm Water  524,247                  1,603,228            1,853,508            273,967                   Total Enterprise Funds 23,419,044             38,492,610          32,443,299          29,468,355             Internal Service Funds   710 Vehicle Maintenance Shop 362,173                  1,415,728            1,444,636            333,265                   720 Health‐Medical Self‐Insurance Fund 405,290                  5,044,794            5,044,794            405,290                   750 Public Works Administration 602,373                  3,641,274            3,802,530            441,117                   Total Internal Service Funds 1,369,836               10,101,796          10,291,960          1,179,672                Permanent Funds 800 Cemetery Perpetual Care 1,532,341               100,500               ‐                        1,632,841                Total All Funds 63,730,662             122,491,100       121,837,154       64,384,608             290