Office of the City Manager
Reference: Fourth Amendment to the 2022 Budget
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Kayla Barber-Perrotta, Budget and Performance Manager
Date Prepared: November 14, 2022
PURPOSE:
To amend the 2022 Budget for increased utility costs in the General Fund and Cemetery Fund.
STRATEGIC FOCUS AREA:
Financially Responsible
Strategic, Supportable Infrastructure
BACKGROUND:
The City Council adopted the 2022 Budget on December 7, 2021, at $155,140,018. In February of 2022, Council adpopted the First Amendment to the 2022 Budget for revisions to the Municipal Service Center project timeline and to accommodate increased water rates for City properties. On June 7, 2022 Council approved the Second Amendment to the 2022 Budget to accommodate additional Lodging Tax awards and the Community Development Block Grant Award for the construction of the Historic City Hall bathrooms. The Third Amendment to the 2022 Budget was adopted on October 4, 2022 to accommodate transfers of American Rescue Plan funding and Prairie Center tax rebates bringing the current total for the budget to $172,267,529.
The recommended Fourth Amendment to the 2022 Budget addresses projected shortfalls in appropriation tied to unanticipated cost increases for utilities that cannot be covered by savings in the General Fund and the Cemetery Fund. For the General Fund, increases are driven by electricity and water costs. During the mid-year financial update, staff discussed double-digit percentage increases in electricity costs across the City. At the time, staff noted that continued vacancies across many of the City’s seasonal positions were providing savings to offset that increase, but that should those positions fill as intended, a budget amendment would be necessary. The City of Brighton was fortunate to be the only city in the Denver Metro area to fill all of our aquatics positions, which has now resulted in the need for a budget amendment. Staff is recommending an increase of $80,000 for electricity usage in the General Fund.
Additionally, in preparing the annual City Budget, staff budgets for a typical year of watering. This has historically included allowing grass in the City’s parks and cemeteries to go dormant during the summer months to reduce the strain on the water treatment plant. In 2022, due to community complaints, Council directed staff to increase watering in these areas, resulting in an $150,000 increase in water usage for the General Fund and $40,000 increase in usage for the Cemetery Fund.
This amendment will appropriate an additional $270,000 bringing overall appropriations to $172,537,529.
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM:
All changes to Fund-level appropriations of the adopted budget must be made by a Supplemental Budget Appropriation.
STAFF RECOMMENDATION
Staff is recommending approval of the attached Fourth Amendment to the 2022 Budget Resolution.
OPTIONS FOR COUNCIL CONSIDERATION
Approve, amend, or deny the proposed resolution.
ATTACHMENTS
Proposed Resolution