Title
AN ORDINANCE SETTING THE BUDGET FOR THE FISCAL YEAR 2018 APPROPRIATING MONIES FOR THE SUPPORT OF THE CITY GOVERNMENT, PUBLIC UTILITIES, AND PUBLIC ENTERPRISE FUNDS AND FOR OTHER PURPOSES.
Body
CITY PROPOSAL:
The city of Duluth does ordain:
Section 1. That in accordance with Section 58 of the 1912 Home Rule Charter of the City of Duluth, and all amendments thereof and law supplementary thereto, and for the fiscal year beginning January 1 and ending December 31, 2018, the city council hereby budgets, determines and states the amount of money required to meet the principal and interest of maturing obligations comprising the outstanding indebtedness of such city; the amounts of money necessary to be provided for each such fund and each department of such city; and estimates the amount of income from all other sources and revenues, exclusive of taxes upon property, together with the probably amount required to be levied and raised by taxation to defray all expenses and obligations of such city during such fiscal year.
That the monies as so budgeted and hereafter set forth shall be paid upon the presentation of properly verified vouchers bearing thereon the budget distribution for which such expenditures are to be charged in accordance with the detailed classification of accounts and the explanatory information of such as set forth in ordinance in effect governing same, excepting, however, payments for interest and sinking funds, which shall be paid in the manner set forth in Section 53 of the City Charter.
That any monies received by the several city departments as reimbursement for damages or repairs to city property or work done for others and not anticipated in the original budget may be credited to and added to the appropriate budget item upon approval of the chief administrative officer or their designee.
That use of general fund balance that has been assigned for a specific purpose in a prior year, must be approved by the city council if used for a purpose other than what has been specified.
That grants which have been approved by the appropriate state or federal agency and accepted by resolution of the city council may be added to the respective budget items upon approval of the city auditor.
That the parks fund prior year unexpended budget appropriation not anticipated in the original budget shall be added to the current year budget appropriation as approved by the chief administrative officer or designee.
Section 2. That the city auditor be authorized to approve the payments of $2,559,600 from the gas and steam public utility funds to the general fund for administrative services; comprised of $2,406,800 or seven percent of the gross revenues of the gas utility fund to the general fund; and $152,800 from public utilities steam fund to the general fund.
Section 3. That the mayor or the chief administrative officer or their designees may make transfers from budget item to budget item as may be considered necessary for the proper administration of the city government for the year. However, the total of any transfers to or from any budget item in excess of ten percent of the appropriation therefore as herein made shall be made only upon approval of the city council. For the purpose of the Section, the term budget item shall mean the amount appropriated to the various funds delineated as fixed charges in the budget summary, the accounts numbers 110 through the 700 series shall each be considered budget items within the general fund, as defined in Chapter 8, Section 54 of the City Charter, the account numbered 205 in the parks fund, and 290 in the street system maintenance utility, the accounts numbered 510 and 511 in the water division, 520 in the gas division, 530 and 532 in the sewer division, 535 in the stormwater division, 540 in the steam division, 550 in the street light division, 503 in the golf division, 505 and 506 in the parking division.
Section 4. That the salaries shall be in accordance with the pay plan in effect as provided by Section 22 of the City Charter, as amended.
Section 5. That the city auditor may create or abolish an accounting fund when required by law or proper accounting procedures.
Section 6. That the city auditor be authorized to make temporary loans to and from the city’s various funds as needed in the conduction of the day-to-day operations of the city.
Section 7. That the appropriations as set forth in this section constitutes the budget of the City of Duluth for the calendar year of 2018.
General Fund
110 Legislative and Executive 3,188,800
121 Public Administration 17,089,900
125 Finance 2,737,800
132 Planning and Construction Services 2,484,600
135 Business and Economic Development 651,000
150 Fire 17,176,200
160 Police 21,903,400
500 Public Works 9,431,900
700 Transfers and Other Functions 11,285,800
Total General Fund 85,949,400
Parks Fund
205 Community Resources 2,787,246
Public Enterprise
503 Golf Fund 2,208,770
505 Parking Fund 5,514,709
506 410 West First Street ramp 1,536,329
Public Utilities
510 & 511 Water Fund 19,145,300
520 Gas Fund 41,153,200
530 & 532 Sewer and Clean Water Fund 22,570,900
535 Stormwater Fund 6,041,300
540 Steam Fund 8,613,800
550 Street Lighting Fund 3,610,800
290 Street System Maintenance Utility 3,800,000
Section 8. That the chief administrative officer or their designee shall provide the council with a final budget report within three months of the end of the budget year setting forth the original approved and the modified budgets for each line item included in this ordinance and explaining in narrative form the reasons for any significant differences between the original approved and the modified budgets.
Section 9. That the city will review all state and federal grants prior to acceptance and determine the program’s funding status. A statement should be included on each grant resolution outlining items such as whether the grant represents a one-time revenue, an ongoing funding source, or a partial funding source with a local match required. The future fiscal impact of the program on the budget will be discussed prior to acceptance of the grant.
The programs funded by state and federal grants shall be reduced or eliminated accordingly if state or federal revenue are reduced or eliminated and another funding source is not secure. Local funding will be available after a full review to determine whether the program should be continued.
Section 10. That this ordinance shall take effect January 1, 2018.
Statement of Purpose
STATEMENT OF PURPOSE: This ordinance established the City of Duluth budget and appropriates monies for the operation of city departments. Provisions of this ordinance are in conformance with the Duluth City Charter and Minnesota state law. The ordinance sets the 2018 budget for the city’s general fund; the parks fund; the eight utility funds of water, gas, sewer, stormwater, steam, street lighting, and street system maintenance utility; and the three public enterprise funds of parking, 410 West First Street parking facility, and golf.
The budget appropriation for the General Fund utilizes fund balance reserves in the amount of $895,500 to pay for an investment in a community solar garden project that will save a projected $2 million over the life of the 25-year project agreement and also uses additional fund balance reserves in the amount of $730,500 to pay for an increase in fire department overtime costs expected to be incurred due to a large number of active duty military deployments in 2018 for firefighters belonging to the Air National Guard 148th Fighter Wing.