HomeMy WebLinkAboutResolution 4531, Funds for Budget Units_10 Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director
Chris Kukulski, City Manager
SUBJECT: Resolution No. 4531 - 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, 2015.
MEETING DATE: June 23, 2014
AGENDA ITEM TYPE: Public Hearing
RECOMMENDATION: Take public comment, make further revisions, and adopt
Resolution No. 4531 – Appropriation Resolution for the Fiscal Year Ending June 30, 2015
(FY15.)
BACKGROUND: During presentations and work sessions held in May and June, the
Commission has been considering making changes to the City Manager’s (CM) Recommended
Budget, (available at http://www.bozeman.net/Departments-(1)/Finance/Budgets-and-
Financials.aspx), so that a Final Budget can be adopted for FY15. Based on feedback during
this work session, and the other work sessions held this spring, we have prepared the Appropriation (Final Budget) Resolution.
• May 19th – CM Recommended Budget – Overview.
• June 2nd - Business Improvement Districts and Tax Increment Financing Districts.
• June 9th – General Fund & Planning Fund.
• June 16th – Special Revenue Funds & Enterprise Funds
Tonight has been advertised as the hearing for adoption of the Final Budget.
The Appropriation Resolution that is attached comes from the City Manager’s Recommended
Budget, with the following changes INCLUDED:
1. The Study Commission budget for both revenues and expenditures has been removed.
Voters did not pass creation of the Study Commission during the June 3rd election.
Study
Commission Voters did not approve this increase, 0.38 mils $ (33,560)
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2. The budgets submitted for the Tax Increment Districts and the Business Improvement
Districts have been added.
3. The Workforce Housing portion of the Community Housing Fund has been adjusted to incorporate all of the requested items addressed by the Community Affordable Housing
Advisory Board, as discussed during the June 16th work session. The Revised Table for
the Workforce Housing portion of the Community Housing Fund is attached to this
memo for reference.
4. Solid Waste Fund – We have made efforts to further refine our Revenue Estimates and
Budgeted Expenditures for the Solid Waste Fund.
Revenues: 1. With most of our fiscal year complete, and seeing continued strong growth in new residential customers, revenues for FY15 are now estimated to include 8% growth in
garbage tote customers and 15% growth in curbside recycling customers. Roll-off
container rentals are also strong and expected to grow. ~$165,000 increase in
revenues estimate.
2. Planned increase in 35 Gallon Tote price to recover costs. ~$70,000 increase in revenues estimate. The rate hearing would take place in early August.
Expenditures:
1. Decrease ($33,000) in the tote replacement budget. Due to replacements that
occurred in FY14. 2. Decrease of half the proposed Toughbook purchases ($20,000). Plan to buy these
next year.
3. Decrease by ($50,000) Road Repair project from an overlay to a patch project.
The result of these changes provides a more balanced budget and represents a growth-oriented, workable plan for the department.
Solid Waste Fund - FY15 CM Rec Budget Approp. Resolution
Revenues: $2,655,400 $2,893,650
Expenditures: (2,932,354) (2,829,854)
Surplus/(Deficit) ($276,954) $63,796
The Appropriation Resolution DOES NOT CONTAIN any of the items listed below. If you
would like to include these, or any other items, in the Final Budget, please include them specifically in your motion to adopt the Resolution.
Options: Commissioners have asked for recommendations that could yield lower taxes and
assessments. Below are a number of funding options to consider totaling over $790,000, in order
of most desirable to least desirable to be cut:
Item Description General Fund Storm Water
Fund
Street
Maintenance
Fund
1 Tech Group This funding is no longer
needed. Tech Group has
raised private funds.
$ (7,500)
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2 Library &
Recreation
Personnel Cost
Corrections
Error in budget estimates
for Library & Recreation
Personnel costs.
$ (124,000)
3 Stormwater Plan for Bronze Level,
beginning 1/1/2015.
$ (250,000)
4 Swim Center
Filtration
This project could not be
completed in FY15 at this
price.
$ (135,000)
5 Park Signage Delay. $ (10,000)
6 IT Help Desk –
Public Safety
Propose 1/1/2015 - If the
Rouse Justice Center is
Approved. Would be 0.5
FTE for this year.
$ (28,250)
7 Police Motorcycles Cut one, postpone to next
year
$ (30,000)
8 Police Unmarked
Vehicles
Cut one, postpone to next
year
$ (10,500)
9 Records Review
Consultant
Postpone to later date. $ (30,000)
10 Billing Clerk Propose 10/1/2014 Start
Date. This position
needed to assist with
Storm Water Utility Billing.
Would be 0.75 FTE this
year.
$ (11,004)
11 Street
Maintenance
Cut the Street & Curb
Reconstruction Increases –
total 5% increase.
$(156,000)
TOTALS $ (386,254) $ (250,000) $ (156,000)
If all of these optional cuts in the General Fund were taken, there could be a 4.34 mill cut to the
estimated property tax levy. This would reduce our projected tax increase by $16.52 for the typical resident. See the table below for General Fund, Stormwater and Street Maintenance effects.
Energy Audit Projects: The Appropriation Resolution does not include the McKinstry projects
listed below. These items were detailed in the June 9 Commission packet. Action to add these items to the Appropriation Resolution could be proposed.
Fund GMAX
Annual
Utility
Savings
Annual
Operational
Savings
Simple
Payback
with
Incentives
Potential
Funding Option
General Fund $63,731 $11,359 $1,184 4.7 Would need to fit into existing
budget.
Street
Maintenance Fund $226,642 $15,412 $6,372 12.6
Potential loan
with energy savings to pay
debt.
78
Library
Depreciation
Reserve $6,604 $1,860 $1,000 0.9
Would fit with
existing resources,
discuss with
Library Board.
Parking Fund
(Downtown
TIF)
$100,514 $6,949 $2,868 12.4
Paid by Downtown Tax
Increment
District, up to
$200,000
Vehicle
Maintenance
Fund
$630 $125 $0 5.0
Would fit with
existing resources.
Wastewater
Fund $18,480 $5,199 $282 3.1 Could add to
repair budget.
TOTAL $416,601 $40,904 $11,706 8.8
Parking Garage LED Project: During their board meeting on June 17th, the Downtown Tax
Increment District committed to support up to $200,000 in funding assistance from their existing
cash balance for the Parking Garage LED Lighting project developed by McKinstry. This would allow for the full garage to be retro-fit with LED fixtures. The details related to the project will
be finalized at summer meetings with the Parking Commission and the Downtown Tax
Increment district. An excerpt from their minutes is attached to this memo.
FISCAL EFFECTS: The Final Budget adoption has far-reaching fiscal effects, which are described in the City Managers’ Recommended Budget, in the numerous materials prepared for
budget work sessions, and in the information above.
The specific effect on a typical resident is described below. The blue column indicates the
effects if the Appropriation Resolution is adopted as written. If all of the additional funding options (cuts) listed above are chosen, the effect will be as indicated in the pink column.
Typical Resident: Assessment/Charge
INCREASES
CM Rec
Budget
Revised:
Approp.
Resolution
Revised: All
Funding
Options
Street Assessments $18.24 $18.24 $12.16
Forestry Assessments $0.35 $0.35 $0.35
Property Taxes $69.00 $67.55 $51.03
Water Services $0.00 $0.00 $0.00
Sewer Services $16.44 $16.44 $16.44
Storm Water Services $31.98 $31.98 $19.50
Annual Increase $136.01 $134.56 $99.48
Monthly Increase $11.33 $11.21 $8.29
Attachments: Appropriation Resolution No. 4531 Workforce Housing Revised Worksheet
Downtown TIF Draft Minutes from 6/17/2014 Meeting
Report compiled on: June 17, 2014
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Page 1 of 3
COMMISSION RESOLUTION NO. 4531
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, 2015.
WHEREAS, the City Commission did, on the 19th day of May, 2014, receive and hear the
City Manager’s Budget Recommendations for Fiscal Year 2014-2015 (Fiscal Year 2015); and
WHEREAS, the City Commission did, on June 2nd, June 9th, and June 16th 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 23rd day of June, 2014, 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.
Budget Unit Total/Fund
General Fund $27,212,839
Special Revenue Funds 17,370,495
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Resolution 4531, Appropriating Funds for FY15
Page 2 of 3
Debt Service Funds 2,461,142 Capital Projects 32,045,980
Enterprise Funds 24,064,810
Internal Service Funds 4,735,612
Permanent Funds 0 GRAND TOTAL – Operating Budget $ 107,890,878
Section 2 The City Commission of the City of Bozeman, Montana does hereby estimate revenues for the
various funds, as follows:
General Fund $26,304,925
Special Revenue Funds 16,448,379
Debt Service Funds 2,480,142 Capital Projects 27,100,000
Enterprise Funds 24,394,033
Internal Service Funds 4,967,385
Permanent Funds 87,600
GRAND TOTAL – Estimated Revenues $ 101,782,464
Section 3
That budget information contained in the "City Manager's Recommended Budget for Fiscal Year 2014-2015" 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 2014-
2015" 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;
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Resolution 4531, Appropriating Funds for FY15
Page 3 of 3
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, 2014.
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 23rd day of June, 2014.
________________________________________
JEFFREY K. KRAUSS
Mayor ATTEST:
_____________________________________ STACY ULMEN, CMC City Clerk
APPROVED AS TO FORM:
________________________________________
GREG SULLIVAN City Attorney
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REVISED 6‐17‐2014Workforce Housing FundingREVISED REVISEDWithin the Community Housing Fund Propsed1.0 Mill 2.0 Mills 2.0 Mills 1.46 Mills 1.0 Mills 0.5 Mills 0.5 Mills 0.5 Mills 0.5 Mills 0.5 MillsFY06 FY07 FY08 FY09 FY10 FY11* FY12 FY13 FY14 FY15Beginning Balance - 28,000 94,248 182,514 255,449 298,739 253,234 227,220 231,700 230,145 Revenues:General Fund Transfer 58,000 126,500 137,962 Dedication of Tax Revenue 105,600 78,290 40,000 41,031 41,885 42,445 44,531 Interest Earnings - 6,285 8,166 7,335 5,000 4,495 2,955 2,595 3,000 3,000 Total Estimated Revenues: 58,000 132,785 146,128 112,935 83,290 44,495 43,986 44,480 45,445 47,531 Expenditures:Road to Home - Administration 30,000 30,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 HRDC - Owner Occupied Home Rehab 50,000 HRDC - West Edge Project Downpayment Assistance‐ 160,000 Habitat for Humanity - 4 Lots 60,000 Workforce Housing Ordinance Development/Update 6,537 7,837 50,000 Workforce Housing Administrator 20,025 Support for Low Income Housing Projects (offset Impact Fees)24,269 Housing Needs Assessment30,000 7,000 Remainder of CAHAB Support not contained in Fund 121 (to total $14,400/yr)3,407 Total Proposed Expenditures: 30,000 66,537 57,862 40,000 40,000 90,000 70,000 40,000 47,000 277,676 Ending Balance 28,000 94,248 182,514 255,449 298,739 253,234 227,220 231,700 230,145 - 83
Downtown Tax Increment Finance
Board Meeting Minutes June 17, 201
Attending: Bobby Bear, Bob Hietala, Vonda Laird, Bob Lashaway, Bill Stoddart, Scott Lee, Carson Taylor, Chris Naumann
Absent: Shannon Haish
Guests: Chuck Winn, Anna Rosenberry, Natalie Meyer
Discussion and Decision Items
Bridger Park Garage LED Retrofit Proposal
ACTION:
Bob Hietala moved that the TIF Board provide financial support not to exceed $200,000 for the
Bridger Park Garage LED Retrofit Project subject to the revision of the McKinstry scope of work to include the entire garage (excluding the roof fixtures) with the elimination of the “Measurement & Verification” services. Funding will be contingent on the Bozeman Parking Commission accepting
terms proposed by the TIF Board for the reallocation of energy savings and garage lighting capital
funds.
Bob Lashaway seconded the motion.
All voted in favor.
**the above is excerpt from the complete minutes**
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General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds Projected Beginning Fund Balance/Working Capital5,311,623$ 18,002,982$ 2,441,808$ 4,900,000$ 11,844,966$ 523,425$ 873,530$ 43,898,334$ Estimated Revenues26,304,925$ 16,448,379$ 2,480,142$ 27,100,000$ 24,394,033$ 4,967,385$ 87,600$ 101,782,464$ Less Appropriations27,212,839$ 17,370,495$ 2,461,142$ 32,045,980$ 24,064,810$ 4,735,612$ -$ 107,890,878$ Increase/(Decrease) in Fund Balance/Working Capital(907,914)$ (922,116)$ 19,000$ (4,945,980)$ 329,223$ 231,773$ 87,600$ (6,108,414)$ Projected Ending Fund Balance/Working Capital4,403,709$ 17,080,866$ 2,460,808$ (45,980)$ 12,174,189$ 755,198$ 961,130$ 37,789,920$ Financial Summary Recommended Budget With Changes Fiscal Year 2014-201585