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Updated Ordinance - 3/26/2024SALT LAKE CITY ORDINANCE No. ______ of 2024 (Second Amendment to the Final Budget for the Library Fund 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 13, 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 MEMO | January 29, 2023 To: Salt Lake City Council From: Noah Baskett, Executive Director – Salt Lake City Public Library Re: Budget Amendment 2 for FY2023-24 As construction has progressed on the Main Library roof, a number of items have risen as critical priorities due to existing conditions not known until demolition of the roof began and material cost inflation. Crews are scheduled to complete the work authorized in the approved budget near the new fiscal year which begins July 1, 2024. In order to allow the contractor to order materials necessary to continue the work and to avoid a work stoppage, staff recommends approval of additional funding for the project to come from the Library's General Fund balance and other capital projects or operational budgets. This request is made in the form of a proposed budget amendment as opposed to waiting for approval in the next fiscal year’s budget in an effort to avoid further cost increases and construction delays. On January 22, 2024, the Library’s Board of Directors approved the budget amendment that is now proposed to the City Council for consideration. This memorandum supplements the one presented to the Library Board, and includes information based on dialogue with the Board; however, the figures and purpose remain unchanged. The original FY24 budget included $7,325,265 for the roof renovation project. The elements below were included in the original project plan and funding request, but unable to be completed due to the cost escalation noted above: Items Cost Estimate Landscape/Irrigation 280,500 Glazing/Glass Walls 305,000 Metal Railing & Paint 300,000 Site Furnishings 25,000 Paulsen General Conditions (7%)70,385 Paulsen Bond & Insurance (2%)20,110 Paulsen Overhead & Profit (4%)40,220 Owner’s Contingency 280,000 Sub-total $1,321,215 Additional Owners Contingency (reallocation approved in Dec.)96,590 Total $1,417,805 During its December meeting, the Board approved reallocation of $96,590 to the roof project from unused funds previously designated for the Sprague branch renovation that was completed two years ago. The proposed adjustment will result in a total of $376,590 available in the owner's contingency to address unanticipated needs to see this phase of the project to completion. With the included contingency, these budget adjustments will be the final request for this portion of the roof project area over the triangle building. Proposed increase of $1,321,215 Staff has identified projects and other operational budgets to fund the increase, along with use of fund balance. With the proposed increase below, the Library’s General Fund balance is projected to be at 4.3 million at the end of the fiscal year, which amounts to 15% of annual revenues budgeted at 28,986,230. State law requires the fund balance to be maintained between 5% and 35% of annual revenues. In addition to use of the Library’s General Fund balance, the table below summarizes a handful of projects previously approved in the FY24 budget that will be modified or postponed in order to reallocate funding to the roof project. The column in blue represents the amounts by which other projects will be reduced and reallocated to the roof project: Funding Sources Account Name Description Current Budget Requested Reallocation to Roof Project Amended Budget Capital Outlay - System 40-40750) Postpone development of bilingual signage 65,000 50,000 15,000 Capital Outlay - Main 40-40721) Work portion of 1st floor remodel into facilities plan 28,000 28,000 - Furnishings - Main 40-40751) Postpone service desk replacement 14,380 14,000 380 Capital Outlay - Main 40-40721) Reduce door replacement 120,000 15,000 105,000 Capital Outlay - Main 40-40721) Reduce fire system maintenance 100,000 35,000 65,000 Capital Outlay – Foothill 40-40732) Savings from Foothill parking lighting 15,000 15,000 - Sub-total Reallocations $157,000 Fund Balance - Appropriated 10-38900) Use General Fund balance, down to 15% of annual revenue 4,253,310 1,164,215 5,417,525 Total Funding Sources $1,321,215 Expenditures – Capital Projects Account Name Description Current Budget Amount Requested Reallocation to Roof Project Amended Budget Amount Capital Outlay - Main 40-40721) Roof project $7,421,855 $1,321,215 $8,743,070 Recommended Motion: Move to approve an increase of $1,321,215 in the Library’s FY24 budget for use of the Library’s General Fund balance and reallocation from various accounts as noted, transfer of those funds to capital projects, and expenditure from the capital projects fund for the roof renovation project.