HomeMy WebLinkAboutA1. Resolution 4602 Final Budget
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director
Chris Kukulski, City Manager
SUBJECT: Resolution 4602, 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, 2016.
MEETING DATE: June 22, 2015
AGENDA ITEM TYPE: Public Hearing & Action
RECOMMENDATION: Take public comment, make further revisions, and adopt
Resolution 4602 ,Appropriation Resolution for the Fiscal Year Ending June 30, 2016 (FY16.)
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 FY16. Based on feedback during
this work session, and the other work sessions held this spring, we have prepared the
Appropriation (Final Budget) Resolution.
• May 11th – CM Recommended Budget – Overview.
• May 18th – Transportation Worksession – All related funds.
• June 1st - Business Improvement Districts and Tax Increment Financing Districts.
• June 8th – General Fund
• June 15th – 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 budgets submitted for the Tax Increment Districts and the Business Improvement Districts have been adjusted.
2. The Water Conservation Technician expenditures have been moved from the Water
Operations Division to the Water Treatment Plant Division.
3. Beginning balance for Workforce Housing within the Community Housing Fund has
been decrease to show the effect of the GMD Project approved in May 2015 for $200,000.
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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.
Optional Cuts: Law & Justice Center/Stiff Building Remodel: Given recent events that have the Law & Justice
Center project proceeding quicker than previously expected, re-allocating the General Fund’s
Stiff Building Remodel money may be appropriate. This would be combined with the existing
money that was originally proposed in the Police Department’s budget. Other Fund’s Stiff Building budgets could remain so that minor modifications to the Stiff Building could be made
to make essential changes.
Item Amount Description
1. Stiff Building $ (452,000.00) Remove from General Fund.
2. Law & Justice Project $ 452,000.00 Add to the existing $50,000 appropriation,
leaving a total of $502,000.
TOTAL -
Commissioners have asked for recommendations that could yield lower taxes and fee increases.
This first level of proposed budget cuts are strongly recommended. These items’ need for funding have changed since the CM Recommended Budget was prepared. A total of $197,000 is recommended to be cut (estimated 2.45 mills).
Options First Level Amount Description
1 Recreation - Pool Design
Money
$ 65,000.00 Given current circumstances, we expect that
less money will be spent than originally
requested. This leaves $10,000 available.
2 Community Development -
UDO
$ 100,000.00 $75,000 from TIF and 25,000 from Chamber
add revenues; reduce money from the
General Fund.
3 Economic Development -
Fiber Project
$ 32,000.00 The nature of the project has changed,
additional partners have come forward and
private financing is available.
TOTAL $ 197,000.00 Estimated Mills = 2.45 mills
The following recommendations are for second-level cuts, arranged in dollar-value order. These
cuts are recommended if the Commission wishes to achieve more savings than is listed above. Many of these items would require postponing projects until FY17. A total of $171,800 is proposed (estimated 2.14 mills.)
Options Second Level Amount Description
1 IT - City Website Redesign $75,000.00 Postpone until next year.
2 Fire - Training Prop $30,000.00 Move project completion to next year.
3 Library - Materials Budget $20,000.00 Would yield increase in Materials Budget,
just smaller than requested.
4 Police - Equipment
Maintenance
$20,000.00 Reduce budget based on improved
maintenance by mechanic and the purchase
of four new vehicles in the budget year.
5 Police - Tasers $10,000.00 Delay 10 Taser replacements to FY17 - use
grant funding where available.
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6 Library - Computer Supplies $7,800.00 Utilize existing equipment; If items break,
wait to replace.
7 Library - Software $5,000.00 Software Upgrade – “Deep Freeze”. Will see
if grants are available.
8 Police - Bay Improvements $4,000.00 Reduce planned improvements from $6,000
to $2,000.
TOTAL $171,800.00 Estimated Mills = 2.14 mills
If all of these optional cuts (first level and second level) in the General Fund were taken, there
could be a 4.59 mill cut to the estimated property tax levy. This would reduce our projected tax increase by $15.83 for the median residential homeowner.
Optional Additions:
Commissioners have asked for a list of items that would potentially add to the budget. The
following are recommended that would improve services for citizens.
Options ADDITIONS Amount Description
1 Planner II – 1.0 FTE $ 62,000.00 Assist with Development Review.
2 Post Development Engineer
- 1.0 FTE
$ 70,000.00 Entry-level Engineer to ensure that post-
development requirements are fulfilled.
3 Pond Row Construction -
Partial
$ 100,000.00 Commission identified this project as needing
financial assistance from the General Fund.
4 Parks Maintenance
Worker(s) – Equivalent of
1.0 FTE
$ 65,000.00 To assist with added park-land maintenance.
These would be short-term positions during
spring/summer months.
TOTAL $ 297,000.00 Estimated Mills = 3.7 mills
UNRESOLVED ISSUES: Three primary areas of concern remain unresolved:
1. Sale of North Park (scheduled for August, 2015) – proceeds of the sale are planned to
replenish the Landfill Post-Closure Monitoring Fund and provide funding for continued legal efforts in FY16. 2. Creation of the Arterial and Collector District – The District will provide the “local
share” of funds for street projects. The District is scheduled for creation in August,
2015. If the District is not created, funding is not available for completion of the
Baxter and Davis Intersection (FY16) and other critical intersection/street projects in future years. 3. Certification of Taxable Values (August, 2015) – large uncertainties remain about the
City’s taxable value, the value of a median residence, and tax revenues that will be
able to be raised in FY16. We will have clear answers after the Department of
Revenue provides the Certified Taxable Values by the first Monday in August.
FISCAL EFFECTS: The Final Budget adoption has far-reaching fiscal effects, which are
described in the City Manager’s Recommended Budget, in the numerous materials prepared for
budget work sessions, and in the information above.
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The specific effect on a typical resident is described below. The first column indicates the
effects if the Appropriation Resolution is adopted as written. This is unchanged from the City
Manager’s Recommended Budget. If all of the additional funding options (cuts) listed above are
chosen, the effect will be as indicated in the pink column. Typical Resident: Annual Increase Appropriation Resolution With Level 1 & Level 2 Cuts Street Maintenance Assessment $ 16.32 $ 16.32 Forestry Assessment $ 0.33 $ 0.33 NEW - Arterial Street Assessment $ 21.54 $ 21.54 Property Taxes $ 96.00 $ 80.17 Water Services $ 14.40 $ 14.40 Sewer Services $ 16.80 $ 16.80 Storm Water Services $ 18.76 $ 18.76 Annual Increase $ 184.15 $ 168.32 Monthly Increase $ 15.35 $ 14.03
Attachments:
Appropriation Resolution No. 4531
Report compiled on: June 17, 2015
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Page 1 of 4
COMMISSION RESOLUTION NO. 4602
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, 2016.
WHEREAS, the City Commission did, on the 11th day of May, 2015, receive and hear the
City Manager’s Budget Recommendations for Fiscal Year 2015-2016 (Fiscal Year 2016); and
WHEREAS, the City Commission did, on May 18th, June 1st, June 8th, and June 15th 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 22rd day of June, 2015, 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.
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Resolution 4602, Appropriating Funds for Fiscal Year ending June, 30, 2016
Page 2 of 4
Budget Unit Total/Fund General Fund $ 27,720,841
Special Revenue Funds 28,422,874
Debt Service Funds 2,792,979
Capital Projects 6,251,000 Enterprise Funds 35,277,817
Internal Service Funds 5,654,244
Permanent Funds 0 GRAND TOTAL – Operating Budget $ 106,119,755
Section 2 The City Commission of the City of Bozeman, Montana does hereby estimate revenues for the
various funds, as follows:
General Fund $ 27,368,109
Special Revenue Funds 18,145,295
Debt Service Funds 2,439,603
Capital Projects 6,153,000
Enterprise Funds 33,607,618
Internal Service Funds 5,358,256
Permanent Funds 106,000
GRAND TOTAL – Estimated Revenues $ 93,177,881
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Resolution 4602, Appropriating Funds for Fiscal Year ending June, 30, 2016
Page 3 of 4
Section 3
That budget information contained in the "City Manager's Recommended Budget for Fiscal Year 2015-2016" 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 2015-
2016" 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.
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, 2015.
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 22nd day of June, 2015.
________________________________________
JEFFREY K KRAUSS Mayor
ATTEST:
_____________________________________
STACY ULMEN, CMC
City Clerk
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Resolution 4602, Appropriating Funds for Fiscal Year ending June, 30, 2016
Page 4 of 4
APPROVED AS TO FORM:
________________________________________
GREG SULLIVAN City Attorney
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FINANCIAL SUMMARY General Fund Special Revenue Debt Service Construction Projects Enterprise Internal Service Permanent All Funds Projected Beginning Fund Balance/Working Capital5,133,594 23,004,701 2,315,966 (11,204) 15,640,949 760,566 873,130 47,717,702 Estimated Revenues27,368,109 18,145,295 2,439,603 6,153,000 33,607,618 5,358,256 106,000 93,177,881 Less Appropriations27,720,841 28,422,874 2,792,979 6,251,000 35,277,817 5,654,244 - 106,119,755 Increase/(Decrease) in Fund Balance/Working Capital(352,732) (10,277,579) (353,376) (98,000) (1,670,199) (295,988) 106,000 (12,941,874) Projected Ending Fund Balance/Working Capital4,780,862$ 12,727,122$ 1,962,590$ (109,204)$ 13,970,750$ 464,578$ 979,130$ 34,775,828$ Financial Summary BudgetFiscal Year 2015-2016127