HomeMy WebLinkAboutResolution No. 4282, Appropriation Resolution for Fiscal Year 2010-2011 .pdf
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Commission Resolution No. 4282 – Appropriation Resolution for Fiscal
Year 2010-2011.
MEETING DATE: September 13, 2010
AGENDA ITEM TYPE: Action
RECOMMENDATION: Adopt Resolution No. 4282, after public hearing, discussion, and any
changes.
BACKGROUND: On June 21, 2010 the Commission adopted the City Manager’s (CM)
Recommended Budget for Fiscal Year 2010-2011 (FY11) as the Preliminary Budget. Numerous
public meetings have been held to discuss specific budget issues during the past months, as well
as a number of assessment/fee hearings associated with this budget proposal.
Appropriation Changes Included in the Current Resolution: Based on our budget work
sessions, the Appropriation Resolution has been prepared, and encompasses the following
changes from the City Manager’s Recommended Budget:
1. Changes for the City’s certified Taxable Value, as discussed in the August 23, 2010 Work
Session Memo.
2. Reductions in Expenditures in the General Fund for “Clean-Up” items identified previously.
3. Reductions in Tax Revenues in the General Fund for “Clean-Up” items ($49,450) and an
amount equal to the increased Street & Tree Maintenance Assessments ($116,270.)
4. Reduction in Tax Revenues for Police & Fire vacancy savings ($634,695.)
5. Inclusion of $7,500 in the Victim Witness Fund, the City’s share of costs for the
establishment of Sexual Abuse Response Team Child Advocacy Center.
6. Planning Fund changes, outlined in August 23, 2010 Updated Work Session.
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Effect on Average Resident:
In describing the likely impact of these proposed General Fund budget changes on “average”
residents, the Appropriation Resolution includes a decrease from the CM Recommended budget
by $22.61/year. In order for the Property Taxes increase to equal zero, we would need to cut a
total of $297,000 in expenditures or utilize the reserve. In order for the Property Taxes to
decrease by $4.86 (the sum of $4.22 + $0.64) for the year, we would need to cut a total of
$413,270 in expenditures or utilize reserve.
FY11 Average City Resident - Annual
Increase
CM
Recommended
Adjusted
Budget
Cut
$297,000
Cut
$413,270
Street Assessments $ 4.22 $ 4.22 $ 4.22 $ 4.22
Forestry Assessments $ 0.64 $ 0.64 $ 0.64 $ 0.64
Property Taxes $ 33.00 $ 10.39 $ - $ (4.86)
Water Services $ 12.12 $ 12.12 $ 12.12 $ 12.12
Sewer Services $ 30.72 $ 30.72 $ 30.72 $ 30.72
Total Estimated Annual Increase $ 80.70 $ 58.09 $ 47.70 $ 42.84
Appropriation Changes that are not included:
The attached Appropriation Resolution is written at the “Adjusted Budget” level, above. There
were numerous other ideas discussed by Commissioners during our July and August budget
meetings. We were asked to prepare a list of proposed budget cuts that could be used to reduce
the property tax levy, beyond the “Adjusted Budget” level. These changes could be made as
amendments to the Appropriation Resolution tonight.
The items listed as “First” are things that, because of recent circumstances, can be adjusted
without any effect on the work to be completed with the FY11 budget. We recommend that
these items, totaling $31,300, be amended into the final Appropriation Resolution.
Recommended
Priority to Cut
Item Amount FY11 Effects Future Year Effects
First Reduce Ethics
Board Budget.
$ 4,000 A total of $7,500 was
budgeted, mostly due to the
need to print Ethics
Handbooks. This contract
has been signed at a
significantly lower cost than
expected.
None.
First Reduce
Community
Transportation
Enhancement
Program (CTEP)
match in the
General Fund.
$ 20,000 With the College-Huffine
pathway awarded, and a
large portion of our match
met by donations, the
amount of budgeted local-
match from the general fund
could be reduced without
effecting the current project
or our remaining allocation.
Would still need to
budget to match future
years' allocations of
CTEP money.
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First Cut Attorney
office space
remodel.
$ 2,500 Withdrawn by Attorney;
space will be found
elsewhere.
None.
First Reduce Elections
amount needed.
$ 4,800 Because there are no
"additional charter
amendments" beyond the
single issue of number of
commission seats, this item
can be reduced.
None.
Total of "First" Items $ 31,300
Items listed as “Second” priorities to cut are our recommendations if the Commission were
looking to get to a budget level that did not increase property taxes, or one that decreased
property taxes. These items total $390,783.
Recommended
Priority to Cut
Item Amount FY11 Effects Future Year Effects
Second Reduce FY11
Police Budget for
July and August
2010 Vacancy
Savings
$ 162,000 12 positions have been
vacant in July and
August. We could
reduce the FY11 budget
by this known vacancy
savings. Final FY11
vacancy savings will be
reduced, due to this
change in budget
method.
Next year's potential
levy decrease due to
Police vacancy savings
would be reduced.
Second Do not levy the
1.0 Mill for
Workforce
Housing.
$ 80,783 The Road to Home
request of $40,000
would need to be funded
with existing cash
reserve in the Workforce
Housing Fund (estimated
$300,000 at the end of
FY10.)
The decision to levy
this mill is made each
year; it comes from
the city's general, all-
purpose levy
authority. The Fund
would not have an
estimated ending
balance of $258,000
for the end of FY11.
Second Do Not Transfer
FY10 Library
Budget Savings
into new Library
Depreciation
Reserve Fund.
$ 79,000 The first year of funding
for this new program
would be delayed;
however, no specific
projects have been
identified as priority this
year.
The fund's balance
available for library
capital and equipment
replacement would
not grow as quickly,
without this initial
infusion of cash.
Second Reduce the Fire $ 48,000 The Facility portion that The portion that is cut
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Training Facility,
eliminate live
burn portion.
was planned for training
with live fire would not
be built. The "dry" prop
would be built as
planned, partial
materials are currently
on site, awaiting release
of site once impound
yard is moved.
would be requested to
be constructed later
as a planned Capital
Improvement Plan
item.
Second Cut contracted
security services
in the Parks.
Have Police/Fire
departments
assist with park
security issues.
$ 15,000 The contract with Rocky
Mountain Security would
be terminated. The
Police and Fire
Departments would be
asked to assist with
monitoring Park
properties.
If it worked well, this
could be an on-going
savings.
Second Decrease General
Fund Transfer to
Planning Fund by
a portion of the
Budget Surplus
amount.
$ 6,000 The Planning Fund would
have a budget surplus of
$12,000, approximately
10% of what we expect
in annual fee revenues.
This surplus could act as
a shield against the need
to increase fees or
decrease staff due to the
change in mix of
applications received
during the year.
None.
Total of "Second" Priorities $ 390,783
Items listed as “Third” priorities to cut are options that have been discussed, but are not
preferred, if the Commission were looking to get to a budget level that did not increase property
taxes, or one that decreased property taxes. These items total up to $588,000.
Recommended
to Cut
Item Amount FY11 Effects Future Year Effects
Third Decrease Proposed
General Fund
Reserve.
Up to
$250,000
Ending cash balance in
the General Fund would
be reduced. Our ability
to handle emergencies
and unanticipated
expenditures would be
diminished. See
discussion below.
See discussion below.
Third Do not levy and do $ 120,000 The Police Department The decision to add the
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not hire 2 of the 4
new Police Officers
in FY11. Plan to
hire FY12.
would need to rescind 2
of the conditional job
offers that they have
made; the department
would bring on 9 new
officers this fall, not the
11 they had planned.
remaining positions
and levy would need to
be made in FY12 and
beyond.
Third Delay Fire Station
#1 Boiler
Replacement.
$ 75,000 While the existing boiler
is oversized and
inefficient, it is still
functional. Now that
we know the Old City
Hall property has been
sold and won't rely on
this equipment, we
could delay this
scheduled replacement
for a year or two.
The replacement will
likely need to occur in
the next 2-5 years. The
potential exists for a
system failure that
would trigger
replacement sooner.
Third Cut Story Mansion
Irrigation System.
$ 35,000 Parks staff would still be
needed to move
watering hoses and
sprinklers at Mansion
grounds.
Existing staff would be
relied on to move
hoses and sprinklers.
Would likely be
requested in the next
Capital Improvement
Plan.
Third Cut Finance Qrep
Reporting System
upgrades.
$ 30,000 This item would enable
departments across the
organization to create
custom financial reports
with assistance from
the Finance
Department. Currently,
the Controller is the
only person able to
program queries for all
system users.
Would likely be
requested next year,
because of its
significant
improvements to
efficiency and reliability
in financial reports
throughout the
organization.
Third Police Patrol
Vehicles - Re-use
existing vehicle
equipment for the
two new cars.
$ 25,000 Existing equipment
would be recycled to
newly replaced patrol
cars this year. The risk
that some of the re-
used equipment would
break during the year
exists.
Older equipment in
cars.
Third Reduce Library
Materials Budget.
$ 20,000 Fewer Library materials
(books, periodicals,
dvd's, etc.) will be
purchased from the
None.
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General Fund.
Third Cut Proposed
Position: 0.5 FTE
Library Assistant
$ 20,000 Position would not be
added. Existing
workloads would be
handled by current
staff.
Likely to be requested
in future year budgets.
Third Cut Proposed
Position: 0.5 FTE
Legal Assistant
$ 13,000 Position would not be
added. Existing
workloads would be
handled by current
staff.
Likely to be requested
in future year budgets.
Total of " Third" Priorities
Up to
$588,000
We recognize that the vast majority of these proposals are "one-time" savings. In many cases,
they don't represent sustainable levels of funding for current programs. In order to sustain the
level of taxation that would come from these types of cuts, we will need time to look into and
develop more long-term "operations-changing" ideas. At the Commission's direction, over the
next fiscal year, we are committed to continue to explore ideas in those areas. Over the coming
months, possibly utilizing contracted services for some existing work, negotiating lower-cost
contracts, and/or the elimination of certain segments of existing programs will be analyzed.
Next Year's FY12 City Manager's Recommended Budget will show our recommendations from
these efforts.
If the Commission is considering ongoing support for Streamline’s request, we would
recommend cutting items that result in ongoing savings in future budgets. The Workforce
Housing mill, the contract security in Parks, the 0.5 FTE for Library Assistant and the 0.5 FTE
for Legal Assistant are all items that would carry-over to future budgets.
General Fund Unreserved Fund Balance:
Our recommendation shown above to utilize up to $250,000 of the current General Fund Reserve
amount as a potential tax reduction is designed to mitigate next year's higher reserve
requirement. While we are anticipating $482,000 in excess of our minimum reserve requirement
this year, when over $1.1 Million of vacancy savings, SAFER Grant, and budget reductions are
added to next year’s levy, our reserve requirement will be a higher dollar amount; higher by
roughly $225,000. Not bringing the reserve to its lowest level (not using more than $250,000)
this year will assist in meeting this financial challenge next year.
164
ESTIMATED! We have not closed the books on FY10
yet…
Adjusted Budget Cut $297,000,
$250,000 from
Reserve
Reserve %, adding
back one-time
levy cuts
Ending General Fund Unreserved Fund Balance FY10 $4,543,000.00 $4,543,000.00 $4,543,000.00
Less: FY10 Capital Carryover ($300,000.00) ($300,000.00) ($300,000.00)
Add: FY11 Estimated Revenues $23,365,145.90 $23,068,145.90 $23,068,145.90
Less: FY11 Appropriations ($23,464,431.00) ($23,407,431.00) ($23,407,431.00)
FY11 Projected Ending Unreserved Fund Balance $4,143,714.90 $3,903,714.90 $3,903,714.90
As a % of FY11 Operating Revenues 18.90% 18.10% 17.03%
16.67% Budget Ordinance Minimum $3,660,843.01 $3,594,762.88 $3,820,554.06
Diff Between Projected and Minimum $482,871.89 $308,952.02 $83,160.84
Tax Levies: The tax levies are established with a separate resolution, immediately following
adoption of the Appropriation Resolution. The final revenue or expenditure amounts for the
General Fund may impact the tax levy for the City. For instance, a reduction in expenditures
with a corresponding tax revenue decrease will enable us to lower the tax levy for FY11.
FISCAL EFFECTS: The fiscal effects of the annual Appropriation Resolution are far-
reaching; they are detailed in the City Manager’s Recommended Budget document, the Work
Session Memos, and in the Appropriation Resolution itself.
ALTERNATIVES: As suggested by the City Commission.
Documents on File: City Manager’s Recommended Budget for Fiscal Year2010-2011
July 26, 2010 Budget Work Session Memo
August 2, 2010 Budget Work Session Memo
August 9, 2010 Budget Work Session Memo
August 23, 2010 Budget Work Session Memo
Documents Attached: Commission Resolution No. 4282
UPDATED: Financial Summary
165
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COMMISSION RESOLUTION NO. 4282
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, 2011.
WHEREAS, the City Commission did, on the 21st day of June, 2010, adopted the City
Manager’s Budget Recommendations for Fiscal Year 2010-2011 (Fiscal Year 2011) as the Preliminary
Budget; and
WHEREAS, the City Commission did, on the 13th day of September, 2010, after due and
proper legal notice, conduct a public hearing on the proposed municipal budget and the proposed
increase in taxes collected.
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 & equipment items previously
budgeted which have not been completed.
Budget Unit Total/Fund
General Fund $23,464,431
Special Revenue Funds 13,999,657
Debt Service Funds 2,664,854
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- 2 -
Capital Projects 0
Enterprise Funds 40,868,722
Internal Service Funds 4,247,164
Permanent Funds 16,000 GRAND TOTAL – Operating Budget $ 85,260,828
Section 2
The City Commission of the City of Bozeman, Montana does hereby estimate revenues for the
various funds, as follows:
General Fund $23,365,145
Special Revenue Funds 13,282,386
Debt Service Funds 2,736,854
Capital Projects 0
Enterprise Funds 25,300,839
Internal Service Funds 4,246,000
Permanent Funds 20,000
GRAND TOTAL – Estimated Revenues $ 68,951,224
Section 3
That budget information contained in the "City Manager's Recommended Budget for Fiscal
Year 2010-2011" 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 2010-
2011" 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.
167
- 3 -
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, 2010.
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 13th day of September, 2010.
________________________________________
JEFFREY K. KRAUSS
Mayor
ATTEST:
_____________________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
________________________________________
GREG SULLIVAN
City Attorney
168
CITY OF BOZEMANFINANCIAL SUMMARY - FISCAL YEAR 2010-2011General Special Debt Capital Enterprise Internal Permanent AllFund Revenue Service Projects Funds Service Funds FundsProjected Beginning Fund Balance/Working Capital 4,243,000$ 12,490,082$ 686,678$ -$ 34,271,004$ 3,938$ 542,820$ 52,237,522$ Estimated Revenues 23,365,145 13,282,386 2,736,854 - 25,300,839 4,246,000 20,000 68,951,224 Less Appropriations 23,464,431 13,999,657 2,664,854 - 40,868,722 4,247,164 16,000 85,260,828 Increase/(Decrease) in Fund Balance/Working Capital (99,286) (717,271) 72,000 - (15,567,883) (1,164) 4,000 (16,309,604) Projected Ending Fund Balance/Working Capita4,143,714$ 11,772,811$ 758,678$ -$ 18,703,121$ 2,774$ 546,820$ 35,927,918$ A. RosenberryPrepared 9/2/2010169
CHANGES IN FUND BALANCE/WORKING CAPITAL
Projected Beginning Estimated Appropriations Budgeted Ending
Fund Balance/ Revenues Fund Balance/
Working Capital Working Capital
# General Fund
010 General Fund 4,243,000 23,365,145$ 23,464,431$ 4,143,714$
Special Revenue Funds -
100 Planning Fund 5,080 749,024 730,365 23,739
103 Health-Medical Insurance - 1,962,219 1,962,219 -
104 Liability Insurance - 464,696 464,696 -
105 P.E.R.S. Fund - 476,713 476,713 -
106 Police Pension Fund 2,563 492,421 492,421 2,563
107 Fire Pension Fund 1,796 340,380 340,380 1,796
108 Community Transportation - 30,515 30,515 -
109 Highway Safety Improvement Projects 486 - - 486
110 Gas Tax Apportionment 448,375 657,500 616,500 489,375
111 Street Maintenance District 647,589 2,151,000 2,452,254 346,335
112 Tree Maintenance 66,484 417,000 433,626 49,858
113 Fire Impact Fee 122,604 150,000 167,500 105,104
114 Street Impact Fee 7,884,032 700,000 350,000 8,234,032
115 Building Inspection Special Revenue 512,600 643,500 788,553 367,547
116 Dowtown Improvement District 389,921 1,103,620 1,426,188 67,353
118 HUD Projects - 975,000 975,000 -
119 Economic Development Loan Fund - - - -
120 Community Housing 289,588 90,783 40,000 340,371
121 Housing Revolving Loan Fund 32,468 7,000 14,400 25,068
122 Blast Clean Up Loans - - - -
125 Drug Forfeiture (11,499) 148,000 178,125 (41,624)
128 Fish Wildlife And Park Management Areas 19,569 - - 19,569
129 Special Projects - Recovery Act, ARRA (1,132) 25,000 25,000 (1,132)
130 Americans With Disability Act 4,135 - - 4,135
131 Beautification Of Bozeman 244 - - 244
133 Recreation Department Special Revenue 29,972 1,000 1,000 29,972
135 Cemetery Department Special Revenue 39 - - 39
136 Park Department Special Revenue 7,460 5,500 12,000 960
137 Library Department Special Revenue 5,135 5,200 7,900 2,435
138 Law & Justice Center 464,500 - 20,000 444,500
139 Police Department Special Revenue 202,731 113,000 87,417 228,314
140 Police Domestic Violence - 182,500 181,250 1,250
142 Sustainability Grant 15,500 - 15,500 -
143 TIF N 7th Corridor 231,578 274,000 505,000 578
144 TIF NE Urban Renewal 12,153 63,900 75,000 1,053
145 TIF Mandeville Industrial (237,340) 34,000 - (203,340)
146 Lighting Dist.'s (146-170, 181, 182, 200-224)297,000 315,000 315,000 297,000
174 Victim Witness Advocate 386,119 76,000 79,500 382,619
175 Senior Transportation 6,089 80,783 80,783 6,089
176 Business Improvement District (23,603) 114,000 114,000 (23,603)
177 Neighborhood Special Revenue 966 - - 966
179 Diaster Relief Fund 86,032 2,000 - 88,032
183 Fire Department Special Revenue 564 - - 564
184 Parks Master Plan Develop 94,410 - - 94,410
185 Insurance Proceeds 20,141 - - 20,141
186 Development Impacts 32,612 8,000 - 40,612
187 Fire Department Equipment 360,140 328,132 510,000 178,272
188 City/County Drug Forfeiture (41,292) 55,000 - 13,708
189 Story Mansion Special Revenue (8,208) 40,000 30,852 940
850 Park Land - Cash in Lieu 176,765 - - 176,765
Total Special Revenue Funds 12,490,082 13,282,386 13,999,657 11,772,811
----------------------------------------------FY 11----------------------------------------------
Changes in Fund Balance/Working Capital 9/3/2010
170
# Debt Service Funds
300 Special Improvement District Revolv. Fund 667,235 20,000 - 687,235
301 Library Bonds - 318,556 318,556 -
302 Bond P & I 1995 Transportation Projects 18,860 472,110 420,110 70,860
305 TIF 2007 Downtown Bonds 583 426,188 426,188 583
310 SID Funds - 1,500,000 1,500,000 -
Total Debt Service Funds 686,678 2,736,854 2,664,854 758,678
Construction Funds
Capital Projects - - - -
Enterprise Funds
600 Water 12,959,921 6,112,528 10,780,660 8,291,789
610 Water Impact Fee - Net Assets 7,007,614 475,000 700,000 6,782,614
620 Waste Water 13,210,641 15,469,000 26,038,430 2,641,211
630 Waste Water Impact Fee - Net Assets 92,412 400,000 400,000 92,412
640 Solid Waste 936,055 2,496,811 2,585,865 847,001
650 Parking Enterprise 64,361 347,500 363,767 48,094
Total Enterprise Funds 34,271,004 25,300,839 40,868,722 18,703,121
Internal Service Funds
-
710 Vehicle Maintenance Shop 14 766,000 767,164 (1,150)
720 Health-Medical Self-Insurance Fund 3,924 3,480,000 3,480,000 3,924
-
Total Internal Service Funds 3,938 4,246,000 4,247,164 2,774
Permanent Funds
800 Cemetery Perpetual Care 542,820 20,000 16,000 546,820
Total Trust And Agenc Funds 542,820 20,000 16,000 546,820
Total All Funds 52,237,522 68,951,224 85,260,828 35,927,918
Changes in Fund Balance/Working Capital 9/3/2010
171