City offices closed on November 24 and 25. Trash pickup will take place as scheduled.

2023 Budget

Fiscal Year 2023 All Funds Budget

Funds Beginning Balance Estimated Revenues Estimated Expenses Ending balance
General Fund $14,021,754 $12,916,804 $13,178,265 $13,760,293
Special Revenue Funds $18,873,516 $7,739,717 $8,893,647 $17,719,586
Debt Service Funds $7,187,528 $4,672,846 $5,167,280 $6,693,094
Capital Projects Funds $5,148,639 $6,620,220 $6,208,117 $5,560,742
Fiduciary Funds $1,081,610 $175,500 $189,850 $1,067,260
Total Budget $46,313,047 $32,125,087 $33,637,159 $44,800,97

Revenue Estimates

  • Earnings Tax estimate of $11.2 million is a 6.7% increase over FY 2022 due to increased collections in 2022.
  • Real Estate Taxes are estimated to be at 2022 levels
  • All other revenue sources to remain relatively flat over the next five years

Expenditure Assumptions

  • Personnel estimates are in line with current union agreements and include a 3% COLA in FY 2023.
  • Non-personnel line items such as contractual services, materials and supplies for the General Fund and Special Revenue Funds have increased an average of 3% due to increase in cost of goods and services.

General Fund Budget

City of Montgomery General Fund Budget Summary - Fiscal Year 2023
Projected Beginning Balance $14,021,754
Estimated Revenues and Transfers In $12,916,804
Estimated Revenues and Transfers Out $13,178,265
Annual Net Revenue (Expense) $(261,461)
Projected Ending Balance $13,760,293
6 Month Reserve Policy $6,589,133
Unreserved Fund Balance $7,171,161

General Fund Budget

  • FY 2023 General Fund Revenues and transfers-in are about 11% higher than the FY 2022 Budget due to actual FY 2022 collections trending above estimates.
  • This includes the updated earnings tax projection to include 5% of receipts diverted to the General Bond Retirement Fund to save dollars to pay off the bond anticipation notes, which is explained further in Section 1.A of the transmittal letter that accompanies the budget document.
  • If these funds remained in the General Fund, the annual net revenue (expense) amount would be a positive $298,000.
  • The 2023 General Fund estimated expenditures (excludes transfers out) increased by $595,000 or 4.9% yearly due to cost-of-living adjustments for staff and increased materials and supplies costs in department budgets.
  • The budget includes staffing all positions at 100% of the cost, so any vacancies will generate budget savings while the position is recruited and ultimately filled.

Capital Projects Funds Budget

American Rescue Plan Act (ARPA) Funds 221/222

  • The City of Montgomery received $1,143,400 in ARPA funds.
  • $52,000 has been spent on Wi-Fi improvements and additional operations at the City pool.
  • The balance of the fund will be transferred to the General Fund for general government expenditures per Treasury Guidance
  • 2022 includes a transfer out to the Downtown Improvement Fund in the amount of $500,000 to fund the remaining expenses for Montgomery Quarter Phase One.
  • The remaining fund balance increase of $591,237 is transferred to Fund 222, Pandemic Relief Fund.
  • FY 2023 includes a transfer to the capital budget for the Huntersknoll storm sewer drainage project in the amount of $350,000.
  • This project also includes $125,000 from Fund 228, Environmental Impact Area II, for drainage improvements.
  • The projected remaining balance in the Pandemic Relief Fund 222 is $232,885 for future projects.

Roundabout Hardscape/Landscape Project

  • The FY 2023 Budget includes a transfer from the Montgomery Community Improvement Corporation in the amount of $2,091,595 for the hardscape and landscape construction for the roundabout adjacent to the Montgomery Quarter.
  • The source of the funds is the sale of land at the Montgomery Quarter project which will be used for permanent improvements.
  • $1 million is budgeted in FY 2023 and $1 million is budgeted in FY 2024 for the project.

Other Projects

  • Montgomery Road Sidewalk addition in the amount of $263,900 as part of a SORTA grant.
  • Street Resurfacing funded at $1.2 million.
  • Fire Department budget includes $1.5 million for the replacement of the Quint fire truck

Fund Balance Policy

City of Montgomery General Fund Budget Summary - Fiscal Year 2023
Projected Beginning Balance $14,021,754
Estimated Revenues and Transfers In $12,916,804
Estimated Revenues and Transfers Out $13,178,265
Annual Net Revenue (Expense) $(261,461)
Projected Ending Balance $13,760,293
6 Month Reserve Policy $6,589,133
Unreserved Fund Balance $7,171,161

Fund Balance Policy Other Funds

  • Capital Improvement Fund 410 - established at $1,000,000.
  • General Bond Retirement Fund 324 (established as the total principal and interest of the subsequent year’s debt service payment).
  • Street Maintenance and Repair Fund 261 (no current policy).
  • Arts and Amenities Fund 485 (established at $376,237, equivalent to two substantial restricted bequests to the fund).
  • Fire/EMS Levy Fund 223 (established as six-twelve months of operating expenditures).
Fund Description Policy Projected Balance 2027 Policy Met? Page Number
Fund 223 Fire/EMS Levy 6-12 months operating expenditures $15,906,739 Yes P 55
Fund 261 Street Maintenance and Repair No current policy $1,484,107 N/A P 61
Fund 324 General Bond Retirement Total principal and interest in subsequent year $1,899,435 Yes P 70
Fund 410 Capital Improvement $1,000,000 $1,417,767 Yes P 76
Fund 485 Arts and Amenities Restricted bequests of $376,237 $525,994 Yes P 68

Next Steps

  • The first reading of the budget is on October 5th.
  • The second reading is on November 2nd.
  • The third reading and passage on December 7th.
  • Any final appropriation adjustments for FY 2022 for consideration on the last scheduled Council Meeting of 2022

Contact

Chris Bigham
Acting Finance Director
513-792-8349

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