HomeMy WebLinkAbout09-22-20 City Commission Packet Materials - A4. Res 5212 Amending FY21 Budget for Financing Local Improvements
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director
SUBJECT: Resolution 5212 Amending the FY21 Budget to Include to Transfer fund
from the Revolving loan fund to the General Fund, and transfer funds from the General fund to the SID Sinking Service Fund for the purpose of financing certain local improvements. MEETING DATE: September 22, 2020
AGENDA ITEM TYPE: Action
RECOMMENDATION: Approve Resolution 5212 Amending the FY21 Budget to Include to Transfer fund from the Revolving loan fund to the General Fund, and transfer funds from the General fund to the SID Sinking Service Fund for the purpose of financing certain local
improvements. STRATEGIC PLAN: SUGGESTED MOTION: I move to approve Resolution 5212 amending the FY21 Budget to
Include to Transfer fund from the Revolving loan fund to the General Fund, and transfer funds from the General fund to the SID Sinking Service Fund for the purpose of financing certain local improvements. BACKGROUND: Years ago, the City created an SID Revolving Fund, the purpose of which is to “secure prompt payment of any special improvement district bonds or warrants issued in payment of improvements made.” See 7-12-4221, MCA. The City’s SID Revolving Fund has cash in excess of the statutorily required amount (10% of outstanding SID debt). Currently, the Revolving Fund has a balance of approximately $3,743,973. The minimum amount the City must maintain in the Revolving Fund
to comply with statutory requirements is $557,000 for its outstanding bonds and internally funded warrants. The excess of $3,186,973 has been intended to help self-fund street reconstruction keeping interest rates low and reducing fees for property owners. Resolution 4507 provides policy direction for the
funding of local street reconstruction projects and was adopted in 2014. The program was updated in May 18, 2020 with the Commission adoption of Resolution 5174. Excess needs to be transferred out the Revolving Loan fund to comply with tax exempt requirement with the issuance of bonds for the Manley Road SID 747. State law does not authorize
the City to loan money directly from the SID Revolving Fund to a SID construction fund to finance
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improvements to be paid for by assessments on properties. State law does authorize transferring
excess funds of the SID Revolving Fund to the General Fund. See 7-12-4227, MCA.
This resolution makes the transfer of the $3,186,973 excess funds to the General fund and then to the SID Sinking Fund to be used for the adopted City Reconstruction program funding.
UNRESOLVED ISSUES: None
ALTERNATIVES: As suggested by the Commission FISCAL EFFECTS: This resolution will amend the current budget reducing the Revolving
Loan fund by $3,186,973 while increasing the General Fund transfers in and transfers out by
$3,186,973, and increasing the SID Sinking Fund transfers in by $3,186,973.
Attachments: Resolution 5212
Report compiled on: 09/3/2020
Revolving Loan Fund
•Transfer out the excess of $3,186,973 to the General Fund
General
Fund
•Transfer out the excess of $3,186,973 to the SID Sinking Fund
SID Sinking
Fund
•$3,186,973 funding to be used for SID self funding program
Transfers in Transfers out
Fund 300 Revolving Loan Fund $3,186,973
Fund 010 General Fund $3,186,973 $3,186,973
Fund 310 SID Sinking Fund $3,186,973
$6,373,946 $6,373,946
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RESOLUTION NO. 5152
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AMENDING THE CITY’S ANNUAL BUDGET TO MAKE CHANGES TO
THE OPERATING IN THE REVOLVING LOAN FUND, AND GENERLA FUND
APPROPRIATIONS APPROVED JUNE 22, 2020. APPROPRIATIONS WILL BE
FUNDED BY FUND RESERVES.
WHEREAS, the City Commission did, on the 22nd day of June, 2020, after due and
proper legal notice, conduct a public hearing and adopt a municipal budget for Fiscal Year 2019-
2021 (Fiscal Year 2021); and
WHEREAS, the City Commission did, on the 22nd day of September, 2020, after due
and proper legal notice, conduct a public hearing on proposed amendments to 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 SID Revolving Loan Fund and the General Fund increasing
Appropriation by $6,373,946:
Transfers in Transfers out
Fund 300 Revolving Loan Fund $3,186,973
Fund 010 General Fund $3,186,973 $3,186,973
Fund 310 SID Sinking Fund $3,186,973
$6,373,946 $6,373,946
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Section 2 – Use of Cash on Hand in the SID Revolving Loan Fund and General Fund
The increased appropriation will be funded with cash on hand in the SID Revolving
Loan Fund and the General 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, 2020.
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 22nd day of September, 2020.
___________________________________
CHRIS MEHL
Mayor ATTEST:
___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM:
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___________________________________
GREG SULLIVAN City Attorney
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