ADMINISTRATION - Joe Huss, Finance Director
Title
2016 BUDGET AMENDMENTS
Background
As part of the 2016 budget process, appropriations were made that were consistent with the best information available at the time of budget adoption in December 2015. As 2016 has unfolded, there are certain areas wherein circumstances have led the City Council to authorize budget amendments for 2016. These adjustments are associated with projects or changes in operating projections within four areas in the General Fund:
• Building Inspections/Community Development. Original appropriations were made to fund a typical year of development within the Building Inspections Division. As 2016 draws to an end it is clear that development for the year, especially with larger, multi-family housing projects and commercial development, has been at a much greater pace than a typical year. Thus, staff is requesting Council authorization to amend the 2016 budget and appropriate $55,300 in additional resources to the Building Inspections Division. Funding for this amendment will be from additional building permit revenue already received and on hand.
• Enhanced Traffic Enforcement. In mid-summer, Council authorized establishing a program for enhanced traffic enforcement in residential neighborhoods. In addition to the hiring of two additional police officers dedicated to traffic enforcement, Council authorized staff to contract for two traffic studies and to purchase equipment and supplies to both help monitor and enhance traffic safety. Staff is requesting an additional appropriation of $81,995 from contingency funds for this program to be appropriated as follows:
o $20,840 in the Patrol Division to fund the costs of the two additional officers in 2016
o $61,155 to fund supplies and contractual costs in the Patrol, Streets, and Engineering divisions.
• Additional Cafeteria Benefits. As part of a labor contract settlement. Council has authorized staff to increase the cafeteria benefits by $40 per month for all employees. Staff is requesting an additional appropriation of $84,250 from contingency funds for this enhancement.
• 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 2016, Council authorized the transfer of $970,000 in Unrestricted 2015 General Fund Reserves as follows:
o $720,000 to the Capital Equipment Fund for the purchase of capital and equipment in 2016
o $250,000 to the Pavement Management Program to help fund 2016 seal-coating, overlay, and other pavement management programs
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 2016 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 2016; 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 2016 General Fund Budget, and authorizes the City Manager to amend the budget as follows:
• REVENUE: Building Permits, 101.70.760.761-3204, in the amount of $55,300
• EXPENDITURES:
• Community Development Department, Building Inspections Division
o $28,000 - Overtime wages, 101.70.760.761-4102
o $20,000 - Part-time wages, 101.70.760.761-4103
o $3,600 - PERA, 101.70.760.761-4121
o $3,700 - FICA/Medicare, 101.70.760.761-4122, 4123
• For Traffic Enforcement, Safety Services Department, Police Patrol Division
o $17,130 - Full-time wages, 101.40.460.462-4101
o $2,780 - PERA, 101.40.460.462-4121
o $250 - Medicare, 101340.460.462-4123
o $680 - Workers Comp Insurance, 101.40.460.462-4151
o $17,075 - General supplies, 101.40.460.462-4210
o $3,440 - Small equipment, 101.40.460.462-4211
o $4,500 - Other charges, 101.40.460.462-4499
o $7,810 - Other supplies (radios), 101.40.460.462.4625-4203
• For Traffic Enforcement, Public Services Dept., Streets Maint. Division
o $13,830 - Small equipment, 101.50.530.533.5306-4211
• For Traffic Enforcement, Public Services Department, Engineering Division
o $14,500 - Professional services, 101.50.560.561-4301
• For enhanced cafeteria benefits, All Departments
o $84,250 - Cafeteria Plan, 101.XX.XXX.XXX-4135
• For Transfer of Available Unrestricted Reserves
o $970,000 - Operating transfer, 101.00.000.000-4914
PASSED by the City Council this 17th day of November 2016.