CITY COMMISSION AGENDA ITEM

Department:	Finance		Commission Meeting Date:  February 20 , 2018
Staff Contact:	Bryan Kidney, Finance Director
Recommendations/Options/Action Requested:
Conduct a public hearing on a proposed amendment to the 2018 Budget increasing the expenditure authority in the Housing Trust Fund to $600,000 and consider adopting on first reading, Ordinance No. 9440, amending the 2018 City Operating and Capital Improvement Budget.
Executive Summary:		Pursuant to action taken by the City Commission at its February 6, 2018 meeting, notice of public hearing to be conducted on February 20, 2018 was published on February 9, 2018 in the Lawrence Journal World. The purpose of the public hearing is to receive and respond to question of citizens related to the 2018 Housing Trust Fund amended budget. As discussed at the City Commission on January 16, 2018, the $300,000 in expenditures budgeted for 2017 did not occur. In order to spend these funds in 2018, the 2018 budget must be amended. In addition, the fund did not begin with a $100,000 fund balance. Therefore, the legally adopted fund only needs to be increased by $200,000 to a total of $600,000 to reflect the total 2017 and 2018 grant amounts. On the January 16, 2018 Commission meeting, the City Commission directed staff to evaluate Vice Mayor Larsen’s proposal of using general fund surplus to fund the 2018 Housing Trust Expenditures up to an amount of $800,000, or an additional $200,000 more than staff recommended that was needed for expenditure of 2017 and 2018 grants. Staff has evaluated the proposal and at this time has not identified a revenue source to fund the additional $200,000 as proposed by Vice Mayor Larsen. Making a funding decision outside of the budget process is not pursuant to best practices nor the Commission’s strategic plan. Therefore, staff strongly recommends that the full Commission discuss how to use general fund balances in the context of the 2019 budget process beginning in June. On February 8, staff presented a proposed notice of public hearing to increase the budgeted expenditures in the Affordable Housing Trust fund in the amount of $600,000. Ultimately, the Commission voted to change the amount to be in the notice of public hearing from $600,000 to $800,000 in order to provide sufficient budget authority to expend the full amount of Vice Mayor Larsen’s proposal. Staff continues to recommend the Commission limit the amendment of the 2018 budgeted expenditures to $600,000 so that contracts can be awarded to the projects approved by the Commission for the 2017 and 2018 funding. Staff continues to recommend the additional expenditure of $200,000 proposed by Vice Mayor Larsen be considered in context of all budget priorities and needs during the 2019 budget process.
Strategic Goal Area:		Effective Governance/Professional Administration Core Services Sound Fiscal Stewardship
Fiscal Impact (Amount/Source):		The 2018 budget amendment will increase the 2018 expenditure authority by $200,000 in order to spend the 2017 affordable housing grants in 2018. There are no tax or fee increases.
Attachments:		Ordinance No. 9440 Certificate of 2018 Budget Amendment

Reviewed By: (for CMO use only)

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