Transmittal - 1/30/2024
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: January 30, 2024
Victoria Petro, Chair
FROM: Mary Beth Thompson, Chief Financial Officer
SUBJECT: Salt Lake City Library Budget Amendment #2
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 $ 0.00 $ 1,321,215.00
TOTAL $ 0.00 $ 1,321,215.00
April Patterson (Jan 30, 2024 14:40 MST)
April Patterson
1-30-2024
1-30-2024
rachel otto (Jan 30,2024 14:57 MST)
BACKGROUND/DISCUSSION:
This request in the amount of $1,321,215 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.
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.
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.
Staff has identified projects and other operational budgets to fund the increase, along with use of
fund balance. With the proposed increase, 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. Additional detail can be found in the attached memo.
PUBLIC PROCESS: Public Hearing
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.
SALT 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 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