HomeMy WebLinkAbout11-24-20 City Commission Packet Materials - A2. Res 5220 FY21 Budget Amend Comm. Housing Fund Grant
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director
SUBJECT: Resolution 5220 Amending the FY21 Budget to increase the Community
Housing Fund appropriation for $500,000 for funding affordable housing project grant. MEETING DATE: November 24, 2020
AGENDA ITEM TYPE: Action
RECOMMENDATION: Approve Resolution 5220 Amending the FY21 Budget to increase the Community Housing Fund appropriation for $500,000 for funding affordable housing project grant.
SUGGESTED MOTION: I move to approve Resolution 5220 amending the FY21 Budget to
increase the Community Housing Fund appropriation for $500,000 for funding affordable housing project grant. BACKGROUND: The original budget included appropriations for grant agreements for $515,000 and was amended
by the Commission October 6, 2020 to include addition $225,000 to fund additional affordable housing project grants. Based on the grant agreement on the consent agenda and additional $500,000 in appropriations is needed to fund:
HRDC renovation projects Darlinton Manor and Boulevards, serves low-income seniors and
people with disabilities. Residents pay 30% of their income towards rent in 88 of 100 apartments. HRDC intends to ensure the remaining 12 homes are affordable by adding place-based Section 8 vouchers to those homes. There are 41 subsidized rental homes in The Boulevards Apartments, serving low-income people with disabilities and seniors. Tenants pay
30% of their income towards rent. Due to their desirable locations in Bozeman, apartments in
both buildings were at real risk of converting to market rate homes. HRDC is working to convert the current federal subsidy contract, which requires annual renewal, to a 20-year Housing Assistance Payment Contract. HRDC combined both Darlinton Manor and Boulevards renovation projects into the same Low Income Housing Tax Credits (LIHTC) application.
This resolutions increase the appropriations and would be covered by fund balance. UNRESOLVED ISSUES: None ALTERNATIVES: As suggested by the Commission
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FISCAL EFFECTS: This resolution will amend the current budget reducing the Community
Housing fund by $500,000 reducing the FY21 estimate ending fund balance to $266,514. This is
lower than when we were in front of the Commission October 6, 2020 due to better estimates of cash-on-lieu, which is expected to be much lower that estimated during budget planning.
Attachments: Resolution 5220
Report compiled on: 11/08/2020
Community Housing Funding- 120
Actual FY20
Current Budget
FY21
Budget FY21 w/
Grant
Recommendation
Beginning Balance 1,194,515 1,684,895 1,684,895
Revenues:
General Fund Transfer - - -
Tax Revenue 620,245 388,224 388,224
Intergovernmental 26,270 - -
Interest Earnings 19,991 5,000 5,000
Loan Principal Repayments 187 1,000 1,000
xCash-in lieu 448,028 130,000 130,000 X
Other Revenue - - -
Total Estimated Revenues:1,114,720 524,224 524,224
Expenditures:
Administrative Costs 223,708 232,605 232,605
**Housing projects grants/loans 265,000 1,010,000 1,510,000
ayment Assistance/Impact fee Reimbursement 135,633 200,000 200,000
Total Proposed Expenditures:624,341 1,442,605 1,942,605
Ending Fund Balance 1,684,895 766,514 266,514 X
x Revised due to cash in lieu came in FY20
**
Warming Center Funding still out-standing 270,000 270,000
Arrow Leaf GMD Grant 500,000 500,000
HRDC Willow Springs 240,000 240,000
HRDC Darlington Boulevards 500,000
Remaining for grant requests X
**Housing projects grants/loans 1,010,000 1,510,000
X Cash in lieu is not guaranteed and only an estimate and should not be appropriated until received
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RESOLUTION NO. 5220
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 24th day of November, 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 $500,000,
for housing project grant.
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
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Housing 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 24th day of November, 2020.
___________________________________ CYNDY ANDRUS Mayor
ATTEST: ___________________________________
MIKE MAAS City Clerk APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN City Attorney
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