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Transmittal - 12/21/2023 MARY BETH THOMPSON Chief Financial Officer ERIN MENDENHALL Mayor DEPARTMENT OF FINANCE POLICY AND BUDGET DIVISION 451 SOUTH STATE STREET, ROOM 238 PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394 CITY COUNCIL TRANSMITTAL ___________________________________ Date Received: ________________ Rachel Otto, Chief of Staff Date sent to Council: ___________ ______________________________________________________________________________ TO: Salt Lake City Council DATE: December 19, 2023 Darin Mano, Chair FROM: Mary Beth Thompson, Chief Financial Officer SUBJECT: Salt Lake City Library Budget Amendment #1 SPONSOR: NA STAFF CONTACT: Greg Cleary, City Budget Director (801) 535-6394 or Mary Beth Thompson (801) 535-6403 DOCUMENT TYPE: Budget Amendment Ordinance RECOMMENDATION: The Administration recommends that, subsequent to a public hearing, the City Council adopt the following amendments to the FY 2023-24 Library Fund adopted budget. BUDGET IMPACT: REVENUE EXPENSE LIBRARY FUND $ 229,670.00 $ 229,670.00 TOTAL $ 229,670.00 $ 229,670.00 Greg Cleary (Dec 19, 2023 15:43 MST) Greg Cleary 12/21/2023 12/21/2023 rachel otto (Dec 21, 2023 09:12 MST) BACKGROUND/DISCUSSION: When the Salt Lake City Council (the Council) adopted the Library’s FY24 budget, the Library was informed that the new growth used in projecting property taxes revenues would generate about $200,000 more than the estimate used in preparing the budget. In addition, the amount allowed for the judgment levy was $193,000 higher than was budgeted. The Council adopted the higher amounts, which allowed the $393,000 difference to go to the Library’s fund balance. Given the additional property tax revenue anticipated in FY24, Administration is proposing amendments to the FY24 budget for the following items, totaling $229,670. The following memo provides additional detail and information on this item. PUBLIC PROCESS: Public Hearing MEMO | November 20, 2023 To: Salt Lake City Library Board of Directors From: Deborah Ehrman, Interim Executive Director Re: Budget Amendment 1 for FY2023-24 When the Salt Lake City Council (the Council) adopted the Library’s FY24 budget, the Library was informed that the new growth used in projecting property taxes revenues would generate about $200,000 more than the estimate used in preparing the budget. In addition, the amount allowed for the judgment levy was $193,000 higher than was budgeted. The Council adopted the higher amounts, which allowed the $393,000 difference to go to the Library’s fund balance. The Board may recall that the FY24 budget included a three percent total increase for longevity and COLA. In addition, the percent increase used to budget the employee health insurance was about half of the actual percent increase once quotes were received. Given the additional property tax revenue anticipated in FY24, Administration is proposing amendments to the FY24 budget for the following items: 1. An additional one percent increase to the COLA amount for all Library employees and an adjustment in the employee health insurance rate to reflect the actual increase. The cost of these two adjustments would be $166,240. 2. An increase of one FTE for the Safety team. The Library is experiencing a significant increase in the number of safety related incidents across the system, and branches have expressed a need for additional support from the Safety team. The cost of one additional safety associate would be $63,430. General Fund – Proposed increase of $229,670 Account Name Current Budget Amount Requested Amt: COLA & Insurance Requested Amt: Safety Position Amended Budget Funding Source Fund Balance-Appropriated 4,023,640 166,240 63,430 4,253,310 Total Revenue $4,023,640 $166,240 $63,430 $4,253,310 Expenditures Salaries & Wages-Regular 12,858,000 112,800 42,900 13,013,700 Social Security-Regular 984,900 8,500 3,200 996,600 Employee Insurance 2,316,500 28,600 9,800 2,354,900 State Retirement 1,777,300 16,000 6,900 1,800,200 Workers Compensation 38,600 340 630 39,570 Total Expenditures $17,975,300 $166,240 $63,430 $18,204,970 Recommended Motion: Move to approve an increase in the Library’s FY24 General Fund budget of $229,670. SALT LAKE CITY ORDINANCE No. ______ of 2024 (Amending the Final Budget for the Library Budget of Salt Lake City, Utah for Fiscal Year 2023-24) An ordinance amending Salt Lake City Ordinance No. 28 of 2023, which adopted the final budget for the Library fund of Salt Lake City, Utah, for the fiscal year beginning July 1, 2023 and ending June 30, 2024. PREAMBLE On June 23, 2023, the Salt Lake City Council adopted the final budget for the Library fund of Salt Lake City, Utah for the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the requirements of Section 10-6-118 of the Utah Code. The City’s Budget Director, acting as the City’s Budget Officer, prepared and filed with the City Recorder proposed amendments to said duly adopted budget, copies of which are attached hereto, for consideration by the City Council and inspection by the public. All conditions precedent to amend said budget have been accomplished. Be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. Purpose. The purpose of this Ordinance is to amend the final budget for the Library fund of Salt Lake City as approved, ratified and finalized by Salt Lake City Ordinance No. 28 of 2023. SECTION 2. Adoption of Amendments. The budget amendments attached hereto and made a part of this Ordinance shall be, and the same hereby are adopted and incorporated into the budget for the Library fund of Salt Lake City, Utah for the fiscal year beginning July 1, 2023 and ending June 30, 2024, in accordance with the requirements of Section 10-6-128, of the Utah Code. 2 SECTION 3. Certification to Utah State Auditor. The City’s Policy and Budget Director, acting as the City’s Budget Officer, is authorized and directed to certify and file a copy of said budget amendments with the Utah State Auditor. SECTION 4. Filing of copies of the Budget Amendments. The said Budget Officer is authorized and directed to certify and file a copy of said budget amendments in the office of said Budget Officer and in the office of the City Recorder which amendments shall be available for public inspection. SECTION 5. Effective Date. This Ordinance shall take effect on its first publication. Passed by the City Council of Salt Lake City, Utah, this _____ day of _______________, 2024. ________________________ CHAIRPERSON ATTEST: ______________________________ CITY RECORDER Transmitted to the Mayor on __________________ Mayor’s Action: ____ Approved ____ Vetoed _________________________ MAYOR ATTEST: _______________________________ CITY RECORDER (SEAL) Bill No. _________ of 2024. Published: ___________________. Salt Lake City Attorney’s Office Approved As To Form _________________________ Jaysen Oldroyd Signature: Email: Alejandro Sanchez (Dec 21, 2023 08:47 MST) alejandro.sanchez@slcgov.com