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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/20/2004 - SECOND READING OF ORDINANCE NO. 055, 2004, APPROPR ITEM NUMBER: 8 AGENDA ITEM SUMMARY DATE: April 20, 2004 FORT COLLINS CITY COUNCIL STAFF: John Stokes SUBJECT Second Reading of Ordinance No.055,2004,Appropriating Prior Year Reserves in Capital Projects Fund - Natural Areas Capital Project for Transfer to the Natural Areas Fund and Authorizing the Transfer of Appropriated Amounts to be Used for Natural Areas Acquisition, Construction, Enhancement and Maintenance. RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY The Building Community Choices ("BCC") sales tax stipulates that revenues remaining unencumbered after completion of projects set forth in the ordinance shall be used for natural areas acquisition, construction, enhancement and maintenance. The unspent revenues in this fund as of December 31,2003 were$4,400,000. The recommendation is that these funds now be appropriated for the above stated purposes. Ordinance No.055,2004,was unanimously adopted on First Reading on April 6, 2004. ORDINANCE NO. 055, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN CAPITAL PROJECTS FUND - NATURAL AREAS CAPITAL PROJECT FOR TRANSFER TO THE NATURAL AREAS FUND AND AUTHORING THE TRANSFER OF APPROPRIATED AMOUNTS TO BE USED FOR NATURAL AREAS ACQUISITION, CONSTRUCTION, ENHANCEMENT AND MAINTENANCE WHEREAS, on April S, 1997, the voters of the City approved Ordinance No. 29, 1997 ("Ordinance"), authorizing the imposition of a quarter cent sales and use tax for the purpose of generating revenues for natural areas and trails and for the construction of certain park projects described in the Building Community Choices ("BCC") capital improvement program; and WHEREAS, the following five projects were approved for funding by the voters: 1. Natural Areas and Trail Acquisition, Construction, Enhancement and Maintenance 2. Community Horticulture Center 3. Fossil Creek Community Park Construction 4. Community Park Improvements 5. Regional Trails; and WHEREAS,the Ordinance also specified that any revenues generated from the quarter cent sales and use tax and remaining unexpended and unencumbered after the completion of all projects, excluding any such projects eliminated by the City Council under the provisions of Section 2(b)(i) or (ii), of the Ordinance, shall be used for the acquisition, construction, enhancement and maintenance of trail systems, wildlife habitat and other natural areas to benefit the citizens of the city; and WHEREAS,as of December 31,2003,revenues collected from the quarter cent sales and use tax, approved by the voters, in accordance with Ordinance No. 29, 1997, have covered the design and cost of the improvement projects specified in said ordinance, and have contributed to an unexpended and unencumbered balance totaling$4.4 million; and WHEREAS, Staff recommends appropriating the aforementioned sales and use taxes, totaling$4.4 million,which have exceeded the funding required for the projects associated with the Ordinance, in the Natural Areas Fund to be used for acquisition, construction, enhancement and maintenance of trail systems, wildlife habitat and other natural areas to benefit the citizens of the city; and WHEREAS, Article V, Section 9 of the Charter of the City of Fort Collins, ("Charter") permits the City Council 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, notwithstanding that such reserves were not previously appropriated; and WHEREAS, additionally, unspent and unencumbered appropriations in the Building Community Choices -Natural Areas capital project, approved via the Ordinance,total$4,635,364; and WHEREAS, Staff recommends transferring these unspent, unencumbered appropriations, totaling $4,635,364, from the Capital Projects Fund for Building Community Choices - Natural Areas capital project to the Natural Areas Fund,in order to better comply with accounting standards for reporting, as established by the Governmental Accounting Standards Board; and WHEREAS,the purpose for which the previously appropriated funds in the Capital Projects Fund for Building Community Choices -Natural Areas capital project($4,635,364), were initially appropriated remains the same, and the City Manager has recommended that said unspent and unencumbered funds be transferred to the Natural Areas Fund and that such funds be used for acquisition,construction,enhancement and maintenance of trail systems,wildlife habitat and other natural areas to benefit the citizens of the city; and WHEREAS,Article V,Section 10,of the Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered amount or portion thereof from one fund or capital project to another fund or capital project,provided the purpose for which the transferred funds are to be expended remains unchanged; and WHEREAS, it is the desire of the Council to appropriate $4.4 million from prior year reserves in the Capital Project Fund for Building Community Choices Natural Areas and Parks projects and authorize the transfer of said amount to the Natural Areas Fund, for appropriation therein, and to authorize the transfer of existing appropriations totaling $4,635,364 in the Capital Projects Fund for Building Community Choices-Natural Areas capital project,to the Natural Areas Fund and that such funds be used for acquisition,construction,enhancement and maintenance of trail systems, wildlife habitat and other natural areas to benefit the citizens of the city. NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from prior year reserves in the Capital Project Fund for Building Community Choices Natural Areas and Parks projects for transfer to the Natural Areas Fund and appropriated therein the sum of FOUR MILLION FOUR HUNDRED THOUSAND DOLLARS ($4,400,000) to be used for acquisition, construction, enhancement and maintenance of trail systems,wildlife habitat and other natural areas to benefit the citizens of the city. Section 2. That the unexpended appropriated amount of FOUR MILLION SIX HUNDRED THIRTY-FIVE THOUSAND THREE HUNDRED SIXTY-FOUR DOLLARS ($4,635,364) is hereby authorized for transfer from the Capital Projects Fund for Building Community Choices - Natural Areas capital project to the Natural Areas Fund, and appropriated therein, to be used for acquisition, construction, enhancement and maintenance of trail systems, wildlife habitat and other natural areas to benefit the citizens of the city. Introduced and considered favorably on first reading and ordered published this 6th day of April, A.D. 2004, and to be presented for final passage on the 20th day of April, A.D. 2004. Mayor ATTEST: — LL�k City Clerk Passed and adopted on final reading this 20th day of April, A.D. 2004. Mayor ATTEST: City Clerk ITEM NUMBER: 14 AGENDA ITEM SUMMARY DATE: April 6, 2004 FORT COLLINS CITY COUNCIL STAFF: John Stokes SUBJECT First Reading of Ordinance No. 055, 2004, Appropriating Prior Year Reserves in Capital Projects Fund - Natural Areas Capital Project for Transfer to the Natural Areas Fund and Authorizing the Transfer of Appropriated A oo s Acquisition, Construction, Enhancement and Maintenan U RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT This action will appropriate 400,0 une a ed d cumbered Building Community Choices sales tax revenue to th atural as F d move a sting appropriations of$4,635,364 from the Building Community — Fund the Capital Projects Fund to the Natural Areas Fund. EXECUTIVE SUMMARY The Building Community Choices ("BCC") sales tax stipulates that revenues remaining unencumbered after completion of projects set forth in the ordinance shall be used for natural areas acquisition, construction, enh t t u nt revenues in this fund as of December 31,2003 were$4,4 ,000. reco da n i these funds now be appropriated for the above stated purposes. In addition this ordinance will move appropriations of$4,635,364 from the BCC—Natural Areas Fund within the Capital Projects Fund to the Natural Areas Fund in compliance with the Governmental Accounting Standards Board requirements. BACKGROUND In 1997 the quarter cent BCC sales tax was extended for a period of eight years. The ordinance imposing the tax states that "any revenues generated by the Tax and remaining unexpended and unencumbered after the completion of all the projects described on Exhibit `A',excluding any such projects eliminated by the City Council under the provisions of Section 2 (b) (I)or(ii) above, shall April 6, 2004 -2- Item No. 14 be used for the acquisition,construction,enhancement and maintenance of natural areas,open lands, trails, wildlife habitat and other natural areas as described on Exhibit `A' ". The balance of these revenue savings at December 31, 2003 was $4,400,000. If adopted, this Ordinance would appropriate the $4,400,000 and transfer the funds into the Natural Areas Fund to be used for the acquisition,construction,enhancement and maintenance of natural areas,open lands,trails,wildlife habitat and other natural areas. Government accounting standards place special emphasis on the reporting of capital assets and related projects that create the City's capital assets. There are funds in the amount of$4,635,364, separate and distinct from the d f s discussed above, which are unspent and unencumbered a ropriati s in Pr s Fund for Building Community Choices-Natural Areas capit roject. orde mply wit ccounting standards for reporting, as established by the Governmen cc St ands Bo hese funds need to be transferred from the Capital Projects Fund for Building Community Choices-Natural Areas capital project to the Natural Areas Fund. The purpose for which the previously appropriated funds were initially appropriated remains the same, that being acquisition, construction,enhancement and maintenance of trail systems, wildlife habitat and other natural areas to benefit the citizens of the city. Staff recommends that said unspent and unencumbered funds be transferred to the Natural Areas Fund and that such funds be used for acquisition,construction,enhan nt py ms,wildlife habitat and other natural areas to benefit the cit' ns o city.