ADMINISTRATION - Joe Huss, Finance Director
Title
2017 BUDGET AMENDMENTS
Background
As part of the 2017 budget process, appropriations were made that were consistent with the best information available at the time of budget adoption in December 2016. As 2017 has unfolded, there are certain areas wherein circumstances have led the City Council to authorize budget amendments for 2017. These adjustments are associated with events that occurred in 2017 that were not anticipated at the time the General Fund Budget was adopted in 2016:
• Building Inspections/Community Development. Original appropriations were made to fund a typical year of development within the Building Inspections Division. In early June, a disastrous hailstorm made its way through Blaine, causing significant damage to a large percentage of Blaine homes. In all, it is estimated that 12,000 to 15,000 homes were damaged. Most of the home required new roofs, siding, and deck repair. To date, over 11,000 storm-related permits have been issued. The additional permitting activity has placed great stress on the Inspections division budget, especially in additional wages and overtime. The additional permitting activity did bring about additional permit revenue that will be sufficient to cover the additional expenses.
• Enhanced communication and emergency notification systems. Early in 2017, the City experienced two significant water outages. In response, the City began expanding its ability to provide emergency communications to residents through the newly redesigned website. The additional cost for the implementation of an emergency notification system was $35,000. Additional adjustments in the Communications division relate to overtime for the water outage responses and the redesign and implementation of the new CivicPlus website. An adjustment of $25,000 is required for this.
• Year-end re-appropriation of unrestricted General Fund reserves. Annually, once the accounting books are closed for the prior year and the City’s annual financial audit is complete, Council will authorize the transfer of available unrestricted reserves to certain programs. For 2017, Council authorized the transfer of $1,807,000 in Unrestricted General Fund Reserves to the Capital Equipment Fund for the purchase of capital and equipment in 2017.
Recommendation
Approve attached resolution.
Body
WHEREAS, Sound budgeting principles promote appropriating necessary funds required to accomplish approved objectives; and
WHEREAS, Sound budgeting principles also promote providing for contingencies and unforeseen emergencies so as to not prevent objectives from being met; and
WHEREAS, Appropriations were made in 2017 sufficient for anticipated activity; and
WHEREAS, actual activity and evolving priorities have exceeded what was originally anticipated resulting in expenditures exceeding budgeted appropriations in the certain divisions within the General Fund; and
WHEREAS, revenue from additional building activity has also exceeded projected revenue in 2017; and
WHEREAS, contingency funds are on-hand and available for use in 2016;
NOW THEREFORE BE IT RESOLVED that the City Council of Blaine amends the 2017 General Fund Budget, and authorizes the City Manager to implement these amendments in the budget as follows:
• REVENUE: Building Permits, 101.70.760.761-3204, in the amount of $265,000
• EXPENDITURES:
• Community Development Department, Building Inspections Division
o $45,000 - Full-time wages, 101.70.760.761-4101
o $60,000 - Overtime wages, 101.70.760.761-4102
o $55,000 - Part-time wages, 101.70.760.761-4103
o $38,000 - Part-time over-time wages, 101.70.760.761-4104
o $7,000 - Office supplies, 101.70.760.761-4201
• For Digital Media, Administration Department, Communications Division
o $25,000 - Over-time wages, 101.20.290.292-4102
o $35,000 - Computers, Systems Maintenance, 101.20.290.292-4343
• For Transfer of Available Unrestricted Reserves
o $1,807,000 - Operating transfer, 101.00.000.000-4914
PASSED by the City Council this 7th day of December 2017.