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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 04/19/2022 - FIRST READING OF ORDINANCE NO. 045, 2022, APPROPRI Agenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY April 19, 2022 Natural Areas STAFF Barb Brock, Natural Areas Financial Coordinator Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 045, 2022, Appropriating Prior Year Reserves in the Natural Areas Fund for the Purpose of Land Conservation, Visitor Amenities, Restoration and Other Related Natural Areas Stewardship Activities not included in the 2022 Adopted City Budget. EXECUTIVE SUMMARY The purpose of this item is to appropriate $10,167,000 in pri or year reserves in the Natural Areas Fund. These appropriations are for land conservation, visitor amenities and restoration of wildlife habitat, as well as other Natural Areas Department stewardship activities to benefit the residents of Fort Collins. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Funding for the Natural Areas Department (NAD) for purposes, other than capital projects, lapses each year if not spent. Unspent prior year funds and unanticipated revenues need to be appropriated into the following year’s budget before they can be used. The purpose of this item is to appropriate $10,167,000 in unspent funds and unanticipated revenues in the Natural Areas Fund to fund land conservatio n, restoration of wildlife habitat, trails and visitor amenities, special projects and other NAD needs to benefit the residents of Fort Collins. Of the total appropriation, $9,200,000 will be used for land conservation. With over $10 Million in land acquisitions under negotiation, it is likely that most of these funds specifically for land conservation will be spent in 2022. The funds for NAD come from the following designated sources of revenue: the City - Open Space Yes! ¼ cent sales tax; the Larimer County - Help Preserve Open Space ¼ cent sales tax; and miscellaneous anticipated and unanticipated revenues. All these funds are restricted to the purposes of the NAD, including unanticipated revenues, which consist generally of income from sales tax reve nues, sale of easements and leases, and grants. The prior year reserve funds being appropriated in this Ordinance are more specifically described as: $5,767,000 Unspent 2021 Budgeted Funds - appropriated for same purpose. $6,100,000 Unanticipated Revenues & Unspent Funds - appropriated for new purposes. $10,167,000 Total Appropriation from 2021 Prior Year Reserves The anticipated use of these funds is as follows: Land Conservation - $9,200,000: $4,900,000 in unspent land conservation funds plus $4,300,0 00 in new funds for land conservation efforts per the Natural Areas Master Plan. Agenda Item 12 Item # 12 Page 2 Resource Management - $164,000: $56,000 to carryover the unspent donation from the West Vine Neighborhood for the restoration of Kestrel Fields; $74,000 for demolition of st ructures when needed for new acquisitions, and $34,000 for additional fencing needs. Planning and Special Projects - $270,000: $255,000 for future major restoration projects and $15,000 in undistributed Enhancement Grant Funds. Trails and Visitor Amenities (TVA) - $433,000 for the new parking lot at Arapaho Bend Natural Area and other minor TVA projects. Public Engagement - $100,000 for a new 15 passenger bus to provide efficient and effective transportation for educational programs, youth involved in Club Outdoors, staff field trips, and transporting volunteers instead of renting a van. CITY FINANCIAL IMPACTS This Ordinance increases 2022 appropriations in the City’s Natural Areas Fund by $10,167,000. The requested total appropriation of $10,167,000 in the Natural Areas Fund represents 2021 appropriations that were unspent and unencumbered at year-end in addition to 2021 unanticipated revenues and new appropriations from the Natural Areas Fund Balance. These funds are restricted to the purposes of the Natural Areas Department. BOARD / COMMISSION RECOMMENDATION The Land Conservation and Stewardship Board unanimously recommended the appropriation. (Attachment 1) PUBLIC OUTREACH Natural Areas Funds will be spent in alignment with the Natural Areas Mast er Plan, which was extensively reviewed by the public prior to its adoption in October 2014. ATTACHMENTS 1. Land Conservation & Stewardship Board Minutes (PDF) Land Conservation & Stewardship Board April 13, 2022 Regular Meeting – Excerpt Annual Appropriation of Prior Year Reserves Funding for the Natural Areas Department (NAD) for purposes, other than capital projects, lapses each year if not spent. Unspent prior year funds and unanticipated revenues need to be appropriated into the following year’s budget before they can be used. The purpose of this item is to appropriate $10,167,000 in unspent funds and unanticipated revenues in the Natural Areas Fund to fund land conservation, restoration of wildlife habitat, trails and visitor amenities, special projects and other NAD needs to benefit the residents of Fort Collins. Of the total appropriation, $9,200,000 will be used for land conservation. With over $10,000,000 in land acquisitions under negotiation there is a reasonable likelihood that most of these funds will be spent in 2022. The prior year reserve funds being appropriated in this Ordinance are more specifically described: $ 5,767,000 Unspent 2020 Budgeted Funds – appropriated for same purpose. $ 4,400,000 Unanticipated Revenues & Unspent Funds – appropriated for new purposes. ======== $10,167,000 Total Appropriation from 2021 Prior Year Reserves Member Joseph Piesman made a motion that The Land Conservation and Stewardship Board recommend that City Council approve the proposed 2022 appropriation of prior year Natural Area reserves. Member Denise Culver seconded the motion. The motion was unanimously approved 9-0 ATTACHMENT 1 -1- ORDINANCE NO. 045, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE NATURAL AREAS FUND FOR THE PURPOSE OF LAND CONSERVATION, VISITOR AMENITIES, RESTORATION AND OTHER RELATED NATURAL AREAS STEWARDSHIP ACTIVITIES NOT INCLUDED IN THE 2022 ADOPTED CITY BUDGET WHEREAS, the City is committed to preserving natural areas and providing educational, interpretive and appropriate recreational opportunities to the public; and WHEREAS, Natural Areas programming implements open land conservation priorities identified in the City’s Comprehensive Plan by purchasing conservation easements or other interests in key natural areas, community separators, or other open lands; restoring and providing stewardship for lands purchased; public engagement and educational programs; and developing trails and interpretive features for public use; and WHEREAS, the Natural Areas Department is funded primarily through the collection of City Open Space - Yes sales and use tax revenue, as well as revenues from the Larimer County Help Preserve Open Space sales and use tax, investment earnings, and other miscellaneous revenues deposited in the Natural Areas Fund; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon the recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, Article V, Section 11 of the City Charter requires all appropriations unexpended or unencumbered at the end of the fiscal year lapse to the applicable general or special revenue fund, except appropriations for capital projects and federal or state grants do not lapse until completion of the capital project or expiration of the respective grant; and WHEREAS, the Interim City Manager has recommended the appropriation from prior year reserves in the Natural Areas Fund of a total of $10,167,000, comprised of unspent and unencumbered appropriations from 2021 to be used for land conservation, resource management, planning, construction of visitor amenities, public engagement and other natural areas programs to benefit the residents of the City in accordance with the Natural Areas Master Plan; and WHEREAS, the Interim City Manager has determined that this appropriation is available and previously unappropriated from the Natural Areas Fund and will not cause the total amount appropriated in the Natural Areas Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -2- Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Council hereby appropriates from prior year reserves in the Natural Areas Fund the sum of TEN MILLION ONE HUNDRED SIXTY-SEVEN DOLLARS ($10,167,000) to be expended in the Natural Areas Fund for land conservation, resource management, planning, construction of visitor amenities, public engagement and other natural areas programs to benefit the residents of the City in accordance with the Natural Areas Master Plan. Introduced, considered favorably on first reading, and ordered published this 19th day of April, A.D. 2022, and to be presented for final passage on the 3rd day of May, A.D. 2022. ____________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 3rd day of May, A.D. 2022. ____________________________ Mayor ATTEST: _______________________________ City Clerk