Administration - Joe Huss, Finance Director and Assistant City Manager; Alison Bong, Deputy Finance Director
Title
Title
Adopt the 2022 Facilities Fund Budget
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Executive Summary
Pursuant to requirements to adopt annual budgets for all operating funds, Staff is bringing forward the proposed 2022 Facilities Fund Budget for Council consideration and adoption.
Background
Council reviewed the 2022 Facilities Management Budget at the December 6, 2021 workshop at which time there were no recommendations for changes to the proposed requests.
Revenue
The primary funding source for the internal service fund comes from charges assessed to each of the departments in the city’s general and utilities funds. The charges are composed of two categories: maintenance and replacement. The maintenance chargeback funds the operational expenses and any repairs to the facilities maintained in this fund. he replacement charge assists in funding capital replacement items. For 2022, maintenance and replacement charges will increase a combined $42,000 (4%), from $1,016,100 to 1,058,100.
Expenditures
Operating expenditures include the wages and benefits of a 3-person staff charged with day-to-day building maintenance. A 3% general wage increase and a $50/month increase in benefits is included. Other expenditures include utility fees for City Hall, Public Works, and the Mary Ann Young Senior Center, cleaning supplies, general supplies, small tools, and office equipment and furnishings (e.g. carpeting and chairs).
The City maintains a contract with an outside vendor for facility management and capital planning services. Early in 2021, the City solicited requests for proposals and began a new contract with Gaughan Companies effective October 1, 2021. The new contract is set for three years and as a result, the city will realize savings of approximately $1,400 per month ($16,800 annually).
Existing contracts for cleaning services through MSI and Marsden are expected to remain in place through 2022. The rates for cleaning are increasing for the MSI contract due to the increased cleaning areas for the completed 3rd floor workspace. Staff will solicit RFPs in 2022 to ensure the City is receiving the best value.
2022 capital requests
City Hall:
• A/C Units for Server Rooms
• Water Distribution/Recirculation Pumps
• Brick replacement - PD parking area
• Tuck pointing of brick areas
• Door access readers
Public Works:
• Parking lot lights
• Electrical Power Stations (3)
Other Facilities:
• Brick replacement - Cold Storage Building
• Security Cameras - Cold Storage
The budgeted revenues and the 2022 projected fund balance provides adequate funding to cover all operating and capital expenditures without additional unrestricted reserve transfers.
Five-Year Outlook
The five-year outlook for the facilities maintenance fund is stable for covering ongoing operating expenditures.
Staff continues to update and refine the City’s five-year Capital Improvement plan, which includes the facilities maintenance plan. Gaughan Companies, Blaine’s new facilities’ management firm, is performing a full facilities audit which is expected to be completed in early 2022. This study will provide crucial information and data which will guide in capital planning and the prioritization of capital projects and department capital preservation requests.
Strategic Plan Relationship
Adoption of annual budgets contributes to the overall financial stability of the City.
Board/Commission Review
N/A
Financial Impact
The proposed budget, if adopted, will result in $1,060,100 revenues, a $42,050 (4%) increase, and $1,304,353 expenditures, a $256,013 (24%) increase from the 2021 approved budget. This increase is largely due to several capital projects which are necessary for the preservation of the City’s infrastructure.
Public Outreach/Input
N/A
Staff Recommendation
By motion, adopt the resolution included herein.
Attachment List
2022 Facilities Fund - Budget summary
2022 Facilities Fund - Capital request summary table
Body
WHEREAS, a proposed Facilities fund budget for the fiscal year commencing January 1, 2022 has been prepared by the City Manager; and
WHEREAS, the City Council has examined, studied, and reviewed said proposed Facilities fund budget; and
WHEREAS, the City Council has, after due consideration and deliberation, made such amendments and adjustments in the proposed Facilities Maintenance Fund Budget as they consider necessary, desirable, or expedient.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine as follows:
1. That the proposed Facilities fund budget attached hereto is approved.
2. That the 2022 appropriations attached hereto are approved.
3. That the 2022 funding sources identified and attached hereto are approved, and, if and where indicated, the transfer of excess reserves from the General Fund is approved.
4. That the City Manager is authorized and directed to implement and to administer, within the budgetary funding limits and within adopted City policy and relevant State and City laws and regulations, said approved Facilities Maintenance Fund Budget.
PASSED by the City Council of the City of Blaine this 20th day of December 2021.