Recommendation

Staff recommends the Mayor and Council adopt the ordinance to amend ordinance #13-09 to appropriate funds and levy taxes for Fiscal Year 2010.

Discussion
In accordance with the City Charter, since the budget ordinance is adopted at the fund level, a change in the appropriated amount of any fund requires action by Mayor and Council. The vehicle for such action is an amendment to the budget ordinance. The attached budget ordinance, Attachment A, would amend the Fiscal Year 2010 budget.

Staff recommends the following operating and CIP funds be amended in order to recognize changes in expenditures and revenues since the budget was adopted on May 18, 2009. Please refer to Attachment B for the details on the changes by fund. Please refer to Attachment C for an updated Fund Summary sheet (page 3-1 of the operating budget book).

OPERATING BUDGET

General Fund
Staff recommends the General Fund be increased by $116,176 to re-appropriate Federal and State grants that carried over from FY 2009 and appropriate a new grant. Over $96,000 in Federal Safe Routes to School grants will carry over from FY 2009 and will be used to fund programs and projects that encourage children to walk or bike to school. The remaining $10,000 of the Federal Preserve America grant will carry over from FY 2009 and be used to print a comprehensive catalog of historic properties within the City. New for FY 2010 is a $10,000 grant that the Police Department received from the Motor Carrier Safety Assistance Program to inspect commercial vehicles.

Sewer Fund
Staff recommends the Sewer Fund budget be increased by $209,180 for a Sewer Capacity Study of Rock Creek. In FY 2009 $250,000 was budgeted to perform this study, but staff was unable to issue a contract before the end of FY 2009. The unused funding was released back to the Sewer Fund and staff is recommending this $250,000 less the adopted addition to net assets of $40,820 be re-appropriated in FY 2010 for the same purpose.

CAPITAL IMPROVEMENTS PROGRAM BUDGET

Capital Projects Fund
Staff recommends the Capital Projects Fund be reduced by ($55,449) to reflect the decrease in Program Open Space (POS) grant funding the City will receive through Montgomery County in FY 2010. In FY 2010 POS funding was budgeted in the Mattie J.T. Stepanek Park CIP project. Staff is working to identify possible savings in other CIP projects that may be used to offset the ($55,449) decrease.

Water Fund
Staff recommends that the Water Fund budget be increased to recognize the award of a $1.3 million grant from the American Recovery and Reinvestment Act of 2009 (ARRA). The $1.3 million grant will accelerate planned improvements to the City's Water Treatment Plant, including energy conservation improvements, as detailed in the Water Plant Maintenance and Repair CIP project.

As outlined in the ARRA/Stimulus legislation funding can only be used for "shovel ready" projects. Adoption of this budget amendment to increase the Water Fund budget by $1.3 million in FY 2010 will allow the City to meet the mandatory grant obligations to open the contract bids prior to September 30, 2009, to submit the construction contract procurement documents to the Maryland Department of the Environment (MDE) for approval by October 30, 2009, and to start construction by December 31, 2009.

Mayor and Council History
This is the first budget amendment for FY 2010. This amendment was introduced on July 27, 2009. The FY 2010 Operating and CIP budgets were adopted by the Mayor and Council on May 18, 2009.

Fiscal Impact
The following operating funds will be adjusted if this budget amendment is adopted.

City Fund	FY 2010 Adopted Budget	7/2009 Amendment	Amended Budget as of 7/2009
General Fund	$62,082,587	$116,176	$62,198,763
Water Fund	7,667,800	-	7,667,800
Sewer Fund	6,747,000	209,180	6,956,180
Refuse Fund	5,493,300	-	5,493,300
Parking Fund	3,669,540	-	3,669,540
SWM Fund	2,569,680	-	2,569,680
RedGate Golf Fund	1,617,340	-	1,617,340
Special Act. Fund	1,431,080	-	1,431,080
CDBG Fund	608,000	-	608,000
Town Center Fund	719,600	-	719,600
Speed Camera Fund	4,130,000	-	4,130,000
Debt Service Fund	5,098,008	-	5,098,008
Total	$101,833,935	$325,356	$102,159,291

The following CIP funds will be adjusted if this budget amendment is adopted.

City Fund	FY 2010 Adopted Budget	7/2009 Amendment	Amended Budget as of 7/2009
Capital Projects Fund	$37,167,426	($55,449)	$37,111,977
Water Fund	15,758,907	1,309,500	17,068,407
Sewer Fund	5,622,760	-	5,622,760
Refuse Fund	2,126,075	-	2,126,075
Parking Fund	1,527,038	-	1,527,038
SWM Fund	1,975,314	-	1,975,314
RedGate Golf Fund	327,818	-	327,818
Speed Camera Fund	3,668,540	-	3,668,540
Total	$68,173,878	$1,254,051	$69,427,929

Attachments
Attachment A: Amendment to Budget Ordinance


Attachment B: Summary by Account of Recommended Budget Changes


Attachment C: Amended Page 3-1 of the Operating Budget Book

Department Head:



Gavin Cohen, Director of Finance
Approved on: 07/23/2009

City Manager:

Scott Ullery, City Manager
Approved on: 07/23/2009