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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/21/2021 - SECOND READING OF ORDINANCE NO. 164, 2021, MAKING Agenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY December 21, 2021 City Council STAFF Monica Martinez, FP&A Manager Larry Schneider, Streets Superintendent Aaron Guin, Legal SUBJECT Second Reading of Ordinance No. 164, 2021, Making Supplemental Appropriations and Appropriating Prior Year Reserves for Supplemental Snow Removal. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on December 7, 2021, appropriates prior year reserves and unanticipated revenue to cover snow removal costs that have exceeded the 2021 budget due to significant snowstorms, such as the March 2021 snowstorm. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, December 7, 2021 (w/o attachments) (PDF) 2. Ordinance No. 164, 2021 (PDF) Agenda Item 14 Item # 14 Page 1 AGENDA ITEM SUMMARY December 7, 2021 City Council STAFF Monica Martinez, FP&A Manager Larry Schneider, Streets Superintendent Aaron Guin, Legal SUBJECT First Reading of Ordinance No. 164, 2021, Making Supplemental Appropriations and Appropriating Prior Year Reserves for Supplemental Snow Removal. EXECUTIVE SUMMARY The purpose of this item is to appropriate prior year reserves and unanticipated revenue to cover snow removal costs that have exceeded the 2021 budget due to significant snowstorms, such as the March 2021 snowstorm. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The 2021 snow budget of $1,400,000 has already been exceeded by $1,200,000, bringing year-to-date actual costs to a total of $2,600,000. Total snow removal costs for 2021, which anticipate November and December snowstorms, are projected to exceed budget by $1,700,000, for a total of $3,100,000. This situation is not unprecedented, as actual snow costs have exceeded budget allocations on a yearly basis for the past ten years, and the 2019 and 2020 total snow removal costs were similar at $3,200,000 and $2,900,000, respectively. Two main factors in the increase in costs for snow removal are extremely cold temperatures and large storms. The presence of extremely cold temperatures requires the use of a greater amounts of de-icer material to keep roads safe. The need for more de-icer material accounts for almost $500,000 of the anticipated overspend. Large storms such as the one the City experienced in March 2021 drive up costs due to plowing residential roads, removal of downtown snow via truck, and increased costs for sidewalk snow removal. Underspend in personnel and non-personnel from Planning, Development, and Transportation (“PDT”) will be used to offset a portion of these costs. The snow budget also will be supplemented by available PDT prior year reserve balances, as well as current year unanticipated revenue. The remaining amount needed for the snow budget will be requested from General Fund prior year reserves. CITY FINANCIAL IMPACTS This Ordinance will appropriate $500,000 of Transportation Services Fund prior year reserves and $400,000 from unanticipated revenue. Additionally, this ordinance will appropriate $400,000 from General Fund prior year reserves. These funds will be expended to cover costs already incurred and any additional costs necessary for snow removal and associated costs. Prior Appropriated Funds Prior Appropriated Funds $1,800,000 COPYATTACHMENT 1 Agenda Item 14 Item # 14 Page 2 Total Prior Appropriation $1,800,000 Funds to be Appropriated with this Action Transportation Services Fund Reserves $500,000 Transportation Services Fund Supplemental Revenue $400,000 General Fund Reserves $400,000 Total Funds to be Appropriated per this Action $1,300,000 Total Budget $3,100,000 COPY -1- ORDINANCE NO. 164, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING SUPPLEMENTAL APPROPRIATIONS AND APPROPRIATING PRIOR YEAR RESERVES FOR SUPPLEMENTAL SNOW REMOVAL WHEREAS, the City established a snow removal budget of $1,400,000 for 2021; and WHEREAS, the 2021 snow removal budget already has been exceeded by $1,200,000 because of significant snowstorms in 2021, namely the March 2021 snowstorm; and WHEREAS, in anticipation of snowstorms in November and December 2021, projected snow removal costs for 2021 are projected to exceed the 2021 budget by $1,700,000, for a total of $3,100,000; and WHEREAS, the actual costs of snow removal by the City have exceeded annual budget allocations on a yearly basis for the past ten years; and WHEREAS, two main factors in the increase of snow costs are extremely cold temperatures and large storms, and the presence of extremely cold temperatures requires the use of greater amounts of de-icer material to keep roads safe; and WHEREAS, the City’s need for more de-icer material accounts for almost $500,000 of the anticipated overspend; and WHEREAS, large storms such as the one the City experienced in March 2021, drive up costs due to plowing residential roads, removal of downtown snow via truck, and increased costs for sidewalk snow removal; and WHEREAS, the purpose of this Ordinance is to appropriate $500,000 of Transportation Services Fund prior year reserves, $400,000 from unanticipated revenue, and $400,000 from General Fund prior year reserves to cover costs already incurred and any additional costs necessary for snow removal and associated costs.; and WHEREAS, this appropriation benefits the public health, safety, and welfare of the residents of Fort Collins and serves the public purpose of providing community-wide snow removal; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year; and WHEREAS, Article V, Section 9 of the City Charter also permits the City Council, upon the recommendation of the City Manager, to appropriate by ordinance at any time during -2- the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years in the Transportation Fund, notwithstanding that such reserves were not previously appropriated; and WHEREAS, Article V, Section 9 of the City Charter also permits the City Council, upon recommendation of the City Manager, to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years in the General Fund, notwithstanding that such reserves were not previously appropriated; and WHEREAS, the Interim City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Transportation Fund and the General Fund, as applicable, and will not cause the total amount appropriated in the Transportation Fund and the General Fund, as applicable, to exceed the current estimate of actual and anticipated revenues and all other funds to be received in these Fund during this fiscal year; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated from prior year reserves in the Transportation Fund the sum of FIVE HUNDRED THOUSAND DOLLARS ($500,000) for expenditure from the Transportation Fund for supplemental snow removal. Section 3. That there is hereby appropriated from unanticipated revenue in the Transportation Fund the sum of FOUR HUNDRED THOUSAND DOLLARS ($400,000) for expenditure from the Transportation Fund for the supplemental snow removal. Section 4. That there is hereby appropriated from prior year reserves in the General Fund the sum of FOUR HUNDRED THOUSAND ($400,000) for expenditure from the General Fund for supplemental snow removal. Introduced, considered favorably on first reading, and ordered published this 7th day of December, A.D. 2021, and to be presented for final passage on the 21st day of December, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk -3- Passed and adopted on final reading on the 21st day of December, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk