Office of the City Manager
Reference: First Amendment to the 2023 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: February 15, 2023
PURPOSE:
To amend the 2023 Budget for grant awards, transfer of the Broncos monies, re-appropriation for the Municipal Service Center and HSV Target Property, Lodging Tax award increases, and new projects.
STRATEGIC FOCUS AREA:
Financially Responsible
Strategic, Supportable Infrastructure
Strong Regional Relationships and Partnerships
Recognizable and Well-planned Community
BACKGROUND:
The City Council adopted the 2023 Budget on December 6, 2022, at $254,765,841. The recommended First Amendment to the 2023 Budget addresses appropriation for grant awards, interfund transfers of revenues to support the Broncos money spending plan, as well as a true-up of re-appropriation for the Municipal Service Center.
Over the last year, the City has successfully increased its efforts to identify and apply for grants to supplement existing funding sources and help taxpayer dollars go further. The City typically does not budget for these until an award is actually made so as to ensure expenditures are not appropriated without supporting revenue sources. The grants addressed in this amendment include the Adams County Open Space Grant for Cherry Meadows Park ($600,000 for the Parks Capital Fund) and the Department of Local Government’s Innovative Affordable Housing Strategies Grant for a joint Housing Needs Assessment with the Brighton Housing Authority ($52,000 in the General Fund). These grant awards have already been approved by Council and this amendment is simply addressing the administrative back-end to ensure appropriation for the grant expenditures. These expenditures are supported by the additional revenue provided by the grants.
The second item addressed through this budget amendment is also an administrative item to position revenues for the Broncos money awarded to the City. As noted in the January presentation to Council these funds were placed in the Capital Fund while staff analyzed and developed a recommendation to Council for their use. Now that Council has provided direction on the use of these funds, the City needs to make two transfers to move these revenues to the funds in which the expenses will be incurred. The first is a transfer of $304,085 to the General Fund and the second is a transfer of $150,000 to the Parks Capital Fund. This item is supported by the Broncos money received by the City which is currently in fund balance.
The third item addressed by this budget amendment is re-appropriation for the Municipal Service Center (MSC) and Historic Splendid Valley (HSV) property. To meet budget deadlines final re-appropriation is calculated in October for the budget’s December adoption and is based on work and payment timelines through the end of the year. The Municipal Service Center was slated to hit 85% design in December resulting in a large number of invoices to be paid at the end of the year. However, due to staffing transitions, this work and corresponding invoices carried into 2023. Since these funds were not spent in 2022 as anticipated they returned to fund balance on December 31st, and now require re-appropriation in 2023. The HSV property purchase is a joint effort with Adams County that was supposed to complete in December, but due to delays in the County completing paperwork carried into 2023. Additionally, Adams County notified the City on February 15, 2023 of a change in how grant funds will be paid out for this property. Instead of the County paying their portion ($5,312,000) directly, monies will come to the City and the City will make the full purchase. In total, $13,655,478 needs to be appropriated across the following funds:
|
Capital Improvement Fund |
$ 3,323,346 |
|
Parks & Recreation Capital Improvement Fund |
$ 7,713,060 |
|
Water Fund |
$ 1,534,361 |
|
Wastewater Fund |
$ 645,057 |
|
Storm Drainage Fund |
$ 439,654 |
The final piece of this budget amendment stems from new projects unanticipated upon the adoption of the Budget in December. The first is a $1,130,000 appropriation in the Storm Drainage Fund. Due to increased development at Prairie Center in 2022, the South Outfall is approaching capacity earlier than initially anticipated and requires that its expansion be moved forward in the capital plan so as to support slated development in that area. The second new item is replacement of the pool slide at the Recreation Center. During a regular inspection cracking was found on the slide that necessitated its closure. Upon reviewing options for repair it was found that the cost to repair would be similar to replacing the slide due to its thirty-year age and a lack of available parts. As such, this amendment supports $650,000 in the Parks Capital Fund for replacement of this slide. Finally, the Brighton Lodging Tax Advisory Committee (BLTAC) is recommending a higher award of grants than was initially budgeted for. This is supported by increased revenues in 2022. This increase of $60,000 in the Lodging Tax Fund will support awards for the Economic Development Corporation, Brighton Cultural Arts Commission, Brighton Chamber of Commerce, the Armory, and the Brighton Youth Baseball Association.
This amendment will appropriate an additional $16,601,563 bringing overall appropriations to $271,367,404.
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 First Amendment to the 2023 Budget Resolution.
OPTIONS FOR COUNCIL CONSIDERATION
Approve, amend, or deny the proposed resolution.
ATTACHMENTS
Proposed Resolution
Presentation