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HomeMy WebLinkAbout10-06-20 City Commission Packet Materials - A3. Res 5222 FY21 Budget Amendment to Comm Housing Fund for proj grants Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Resolution 5222 Amending the FY21 Budget to increase the Community Housing Fund appropriation for $225,000 for funding affordable housing project grants. MEETING DATE: October 6, 2020 AGENDA ITEM TYPE: Action RECOMMENDATION: Approve Resolution 5222 Amending the FY21 Budget to increase the Community Housing Fund appropriation for $225,000 for funding affordable housing project grants. SUGGESTED MOTION: I move to approve Resolution 5222 amending the FY21 Budget to increase the Community Housing Fund appropriation for $225,000 for funding affordable housing project grants. BACKGROUND: The original budget included appropriations for grant agreement for $515,000. Two projects have been recommended for funding totaling $740,000. To fund both affordable housing project grants the fund requires $225,000 in appropriations. • The Willow Springs Townhomes by HRDC will create twenty-four (24) affordable two and three bedroom homes. The homes will be priced to be affordable to homebuyers earning 70% of Area Median Income or less. All 24 homes will be restricted by a ground lease and held in a Community Land Trust, ensuring long term affordability. The City Commission approved a grant of $240,000, or $20,000 per home built in Phase I, to reimburse construction costs. This funding request of $240,000 will serve to reimburse construction costs for the twelve remaining homes to be built in the project, Phase II. • The Arrowleaf and Perennial Parks mixed-use project by GMD Development will create 232 affordable homes, as well as provide an early childhood education center, and onsite health services. All 232 homes will be 1, 2, and 3 bedroom rentals, made available to households earning between 50% - 70% of Area Median Income. Ninety-six (96) of the homes will be for seniors, and one hundred thirty-six (136) homes will be available to families. This resolutions increase the appropriations and would be covered by fund balance. UNRESOLVED ISSUES: None 451 ALTERNATIVES: As suggested by the Commission FISCAL EFFECTS: This resolution will amend the current budget reducing the Community Housing fund by $$225,000. Attachments: Resolution 5222 Report compiled on: 09/23/2020 Budget Budget Amendment Beginning Fund Balance 1,684,894 1,684,894 Estimated Revenues 972,252 972,252 Budget Appropriations (1,024,705) (1,249,705) Estimated Ending Fund balance 1,632,441$ 1,407,441$ 452 RESOLUTION NO. 5222 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 COMMUNITY HOUSING FUNDAPPROPRIATIONS 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 2020- 2021 (Fiscal Year 2021); and WHEREAS, the City Commission did, on the 6th day of October, 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 Community Housing Fund increasing Appropriation by $225,000, for housing project grants. Section 2 – Use of Cash on Hand in the Community Housing Fund The increased appropriation will be funded with cash on hand in the Community Housing Fund. 453 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 6th day of October, 2020. ___________________________________ CYNDY ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 454