HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/16/2004 - SECOND READING OF ORDINANCE NO. 164, 2004 RELATING ITEM NUMBER: 8
AGENDA ITEM SUMMARY DATE: November 16, 2004
FORT COLLINS CITY COUNCIL STAFF: Darin Atteberry
SUBJECT
Second Reading of Ordinance No. 164, 2004, Being the Annual Appropriation Ordinance
Relating to the Annual Appropriations for the Fiscal Year 2005; Amending the Budget for the
Fiscal Year Beginning January 1, 2005, and Ending December 31, 2005; and Fixing the Mill
Levy for Fiscal Year 2005.
RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
FINANCIAL IMPACT
This Ordinance amends the City Budget for fiscal year 2005 and represents the annual
appropriation for fiscal year 2005 in the amount of $465,122,888. The Ordinance also sets the
City mill levy at 9.797 mill, unchanged since 1991.
EXECUTIVE SUMMARY
State statutes and the City Charter both require an annual appropriation to cover expenses for the
ensuing fiscal year (2005) based upon the adopted budget. The Second Reading must be adopted
before the last day of November.
On October 19, 2004, City Council reviewed and approved the recommended additions and
changes. With the second reading of the Ordinance, there is an adjustment that was
inadvertently left out of the Ordinance on First Reading. An additional appropriation of
$2,360,820 is required in the Sales and Use Tax Fund, from the Use Tax Carryover Reserve, for
transfer to the General Fund to cover the 2005 one-time expenditures approved by Council on
First Reading. The $2,360,820, which was not reflected on first reading, increases the total City
Appropriations to $465,122,888.
The Net City Budget of $363,200,943, for 2005, which excludes transfers, remains the same as
shown on the First Reading of this ordinance.
November 16, 2004 -2- Item No. 8
Adopted Amended
2005 2005
Operations $300,187,477 $305,471,957
Debt Service 22,256,106 25,877,809
Capital 31,851,177 31,851,177
One final note regarding Old Town Square maintenance. Staff will continue to examine options
to secure non-General Fund resources for this ongoing need as part of the planning and
preparation for the 2006-2007 Budget.
ORDINANCE NO . 164, 2004
OF THE COUNCIL OF THE CITY OF FORT COLLINS
BEING THE ANNUAL APPROPRIATION ORDINANCE
RELATING TO THE ANNUAL APPROPRIATIONS
FOR THE FISCAL YEAR 2005 ; AMENDING THE BUDGET FOR
THE FISCAL YEAR BEGINNING JANUARY 1 , 2005 , AND ENDING
DECEMBER 31 , 2005 ; AND FIXING THE MILL LEVY FOR FISCAL YEAR 2005
WHEREAS , on November 18 , 2003 , the City Council adopted on second reading Ordinance
No . 156, 2003 , thereby approving a biennial budget for the years beginning on January 1 , 2004, and
January 1 , 2005 ; and
WHEREAS , the City Manager has submitted to the Council proposed amendments to the
2005 budget adopted by the Council in Ordinance No . 156 , 2003 ; and
WHEREAS , Article V, Section 4, of the City Charter (the "Charter") requires that, before
the last day of November of each fiscal year, the Council shall appropriate on a fund basis and by
individual project for capital projects and federal or state grant projects, such sums of money as it
deems necessary to defray all expenditures of the City during the ensuing fiscal year based upon
the budget as approved by the Council; and
WHEREAS , Article V, Section 5 , of the Charter provides that the annual appropriation
ordinance shall also fix the tax levy upon each dollar of the assessed valuation of all taxable property
within the City, such levy representing the amount of taxes for City purposes necessary to provide
for payment during the ensuing fiscal year for all properly authorized expenditures to be incurred
by the City, including interest and principal of general obligation bonds ; and
WHEREAS, Article XII, Section 6, of the Charter permits the Council to fix, establish,
maintain, and provide for the collection of such rates, fees, or charges for water and electricity, and
for other utility services furnished by the City as will produce revenues sufficient to pay into the
General Fund in lieu of taxes on account of the City-owned utilities such amount as may be
established by Council ; and
WHEREAS , Article V, Section 10, of the Charter authorizes the Council to transfer by
ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund
or capital project to another fund or capital project, provided that the purpose for which the
transferred funds are to be expended remains unchanged; the purpose for which the funds were
initially appropriated no longer exists; or the proposed transfer is from a fund or capital project in
which the amount appropriated exceeds the amount needed to accomplish the purpose specified in
the appropriation ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows :
Section 1 . That the Council has reviewed the City Manager's recommended changes to
the "2005 Proposed Appropriations" section of the Fort Collins 2004 and 2005 Biennial Budget (the
"Biennial Budget") , as shown on pages 29 through 31 of the Operating Budget thereof, a copy of
which Biennial Budget is on file with the office of the City Clerk, and hereby amends the Biennial
Budget so as to reflect said changes as follows :
2005 Proposed Appropriations
Amount of
Existing Adjustments As Amended
GENERAL FUND $ 89,9309477 $4,418 ,277 $949348 ,754
ENTERPRISE FUNDS
Golf $ 21668 , 568 $ (2039797) 2AK771
Light & Power Operating 859949,424 85 , 949 ,424
Capital :
Substation Improvements 1665411 166,411
Underground Conversion Program 2 ,443 ,993 2 ,443 ,993
Total Light & Power 88 ,5594828 0 8845594828
Storm Drainage Operating 99168 ,045 95168 ,045
Capital :
Basin Master Planning 2005000 200,000
Developer Repays 2501000 25000
Drainage Systems Enhancements 3549000 3545000
Dry Creek Basin 313001000 31300,000
Fossil Creek Basin 4001000 40000
Spring Creek Basin 11000,000 11000,000
Total Storm Drainage 14, 672,045 0 14, 6725045
Wastewater Operating 1719229068 1719225068
Capital :
Collection System Replacement 844,000 844,000
Treatment Plant Improvements 370,000 370,000
Total Wastewater 19 , 136,068 0 194136,068
Water Operating 255544,414 255544,414
Capital :
Distribution System Replacement 6959000 69500
Gravel Pit Storage Ponds 1920000 1920000
Halligan Reservoir Expansion 19988 ,000 19988 ,000
Meter Conversion Program 11175 ,000 11175 ,000
Michigan Ditch Improvements 4509000 4505000
Southwest System Improvements 5700 5700
Treatment Facility Improvements 1505000 15000
Water Supply Development 1005000 100,000
Total Water 31 , 359,414 0 31 ,3595414
TOTAL ENTERPRISE FUNDS $ 156,395 ,923 $ (203 , 797) $ 1564192 , 126
INTERNAL SERVICE FUNDS
Benefits $ 1917841716 $ 191784J 16
Communications 154311118 11431 J 18
Equipment 79025 ,382 71025 ,382
Self Insurance 299399615 2993 %615
Utility Customer Service & Administration 13 ,335 , 168 13 ,335 , 168
TOTAL INTERNAL SERVICE FUNDS $4455155999 $ 0 $441515 ,999
SPECIAL REVENUE & DEBT SERVICE FUNDS
Capital Improvement Expansion Fund $ 1275800 $ 3985074 $ 5259874
Capital Leasing Corporation 196365049 3 ,6219703 512575752
Cemeteries 628 ,268 628 ,268
Cultural Services & Facilities 4128704 4128704
Debt Service 217831631 217839631
General Employees' Retirement 21127, 891 21127, 891
Natural Areas Fund 993779439 99377,439
Perpetual Care 701700 70J00
Recreation 850135797 41 , 828 850555625
Sales & Use Tax > >
34
Sales & Use Tax 75 ,968 ,034 2,600, 820 78 , 568 , 854
Special Assessments Debt Service 0 0
Street Oversizing 317725678 31772 ,678
Transit Services 101412,717 95000 11 ,362,717
Transportation Services 23 ,310,015 213255436 25 , 6355451
TOTAL SPECIAL REVENUE & DEBT $ 150qQ93 ,744
SERVICE FUNDS $ 141516 , 703 89 , 937 , 861 $ 1525454,564
CAPITAL IMPROVEMENT FUNDS
General City Capital
CSU Transit Center $2 ,3931440 $213931440
Facilities MR&R Capital 3299270 3299270
Minor Street Capital 218 ,493 218 ,493
Pedestrian Accessibility 382 ,788 382 ,788
Police Facility 2 ,049,351 796, 147 2 , 845A98
Total General City Capital $5 , 3735342 $796, 147 $6 , 169,489
1 /4 Cent Community Enhancements
Administration $ 58 ,099 $ 58 ,099
Northside Aztlan Center 6,923 ,682 6,923 ,682
Total 1 /4 Cent Community Enhancements $6,981 ,781 $0 $61981 ,781
1 /4 Cent Natural Areas and Parks
Administration $ 64,453 $ 64A53
Total 1 /4 Cent Natural Areas and Parks $ 649453 $ 0 $ 64,453
1 /4 Cent Streets and Transportation
Administration $ 10008 $ 10008
Pedestrian Plan 342 , 857 342 , 857
Mason Street Corridor 1 ,373 ,051 1 ,373 ,051
Total 1 /4 Cent Streets and Transportation $ 1 ,8161716 $0 $ 1 , 816,716
Conservation Trust Fund
Administration $ 3359849 $ 335 , 849
Fossil Creek Trail 35000 35000
Open Space Acquisition 209000 20,000
Trails Maintenance 67,665 67 ,665
Trail Acquisition, Development & Repair 3501000 3501000
Tri-City Trails 50,000 50,000
Total Conservation Trust Fund $ 1 , 173 ,514 $0 $ 1 , 173 ,514
Neighborhood Parkland Fund
Administration $ 3359492 $ 335 ,492
Lee Martinez Park Addition 755000 7500
New Park Site Acquisition 1509000 15000
New Park Site Development 15000 15000
Park Site Equipment 159000 15 ,000
Provincetowne Park 1301000 13000
Registry Ridge Park 1009000 1005000
Richards Lake Park 20000 20000
Rossborough Park Improvements 509000 50,000
Staley Park 200,000 200,000
Total Neighborhood Parkland Fund $ 1 A05 ,492 $0 $ 11405 ,492
W587 > >
TOTAL CITY FUNDS $450 , 174,400 $ 141948 ,488 $465 , 1221888
Section 2 . Appropriations . That there be, and hereby is, appropriated out of the revenues of the
City of Fort Collins, for the fiscal year beginning January 1 , 2005 , and ending December 31 , 2005 ,
the sum of
THOUSAND - FOUR HUNDRED SIXTY-FIVE
MILLION ONE HUNDRED TWENTY-TWO THOUSAND EIGHT HUNDRED EIGHTY-EIGHT
DOLLARS ($465 , 122, 888) to be raised by taxation and otherwise, which sum is deemed by the
Council to be necessary to defray all expenditures of the City during said budget year, to be divided
and appropriated for the purposes shown in Section 1 above.
Section 3 . Mill Lew.
a. That the 2005 mill levy rate for the taxation upon each dollar of the assessed valuation of
all the taxable property within the City of Fort Collins as of December 31 , 2004, shall be 9 . 797 mills,
which levy represents the amount of taxes for City purposes necessary to provide for payment during
the aforementioned budget year of all properly authorized expenditures to be incurred by the City,
including interest and principal of general obligation bonds .
b . The City Clerk shall certify this levy of 9 . 797 mills to the County Assessor and the Board
of Commissioners of Larimer County, Colorado, in accordance with the applicable provisions of law,
as required by Article V, Section 5 , of the Charter of the City of Fort Collins .
Introduced, considered favorably on first reading, and ordered published this 19th day of
October, A.D. 2004, and to be presented for final passage on the 16th day of November, A.D . 2004 .
Mayor
ATTEST :
City Clerk
Passed and adopted on final reading this 16th day of November, A.D . 2004 .
Mayor
ATTEST :
City Clerk
ITEM NUMBER: 11
AGENDA ITEM SUMMARY DATE: October 19, 2004
FORT COLLINS CITY COUNCIL STAFF: Darin Atteberry
SUBJECT P Y
First Reading of Ordinance No. 164, 2004, Being the Annual Appropriation Ordinance Relating
to the Annual Appropriations for the Fiscal Year 2005; Amending the Budget for the Fiscal Year
Beginning January 1, 2005, and Ending December 31, 2005; and Fixing the Mill Levy for Fiscal
Year 2005.
RECOMMENDATION
Staff recommends adoption of this Ordinance on First Reading.
FINANCIAL IMPACT
This Ordinance amends thCanged
u r Y68.
and represents the annual
appropriation for fiscal year am t $ The Ordinance also sets the
City mill levy at 9.797 mill, u ce 1 1
EXECUTIVE SUMMARY
This Ordinance amends the adopted 2005 Budget and sets the amount of $462,762,068 to be
appropriated for fiscal year 2005. The Net City Budget, which excludes internal transfers
between City funds, is $363,200,943 for 2005. The Net City Budget, as amended, is allocated to:
Adopted Amended
2005 2005
Operations $300,187,477 $305,471,957
Debt Service 22,256,106 25,877,809
Capital 31,851,177 31,851,177
This Ordinance also sets the 2 5 City 11 lev t mil unchanged since 1991.
BACKGROUND
City Council adopted the 2004-2005 Biennial Budget and appropriated monies for expenditure in
fiscal year 2004. State statutes and the City Charter both require an annual appropriation to cover
expenses for the ensuing year (2005) based upon the adopted budget. The Second Reading must
be done before the last day of November and is currently scheduled for November 16, 2004.
October 19, 2004 -2- Item No. 11
2005 Revenue Update
Available Ongoing Revenue $ 417,000
Available One-time MoniesCcti
3op
The original 2005 budget p .25 available to the General Fund
anticipated collections to be apat . B on more recent data released by
the Office of State Planning and Budget ("OSPB") that is the foundation for our projection
model, the sales tax projection for 2005 collections has been revised. Revised projections call for
collections to be approximately $47.3 million or an increase of approximately$200,000.
The 2005 projection for use tax available to the General Fund remains unchanged from the
originally adopted "ceiling" amount of$7.9 million, up from the $7.8 million used for 2004. Use
tax is very volatile and to mitigate this volatility, the Council has, since the early 1990s,
established a "ceiling" amount for use tax collections that the City is reasonably assured of
meeting. Collections within the "ceiling" are used for ongoing operations and any collections
over the "ceiling" fall into reserves and are available for one-time use.
General Fund revenues other than sales and use tax have been revised slightly upward by
approximately $200,000 based on recent projections received from departments. Other revenue
includes collections from sourc u a ro rt li se d permits, intergovernmental,
charges for services, fines, e gs o estm t an is neous revenues.
Available One-Time General F $ni
Approximately $3.5 million is available for General Fund one-time use. Of the $3.5 million,
approximately $2.4 million is a result of 2003 revenues received over the TABOR limit. While
current projections indicate that the City will have a surplus of revenues over expenditures for
2004, it cannot count on the use of that surplus until the 2004 audit is completed in the spring of
2005. Any 2004 surplus will be available for use in the 2006-2007 biennial budget.
2005 Additions in Originally Adopted Budget
Council adopted the 2005 budget with several planned reinstatements and expansion of a few
services.
a. Expand Police staffing .............................................................................. $ 799,763 ongoing
$ 261,998 one-time
b. Resume Police Building s aside ... ........ .. .... ..... .............. $ 320,000 ongoing
c. Resume Street Maintenan expand fund g ............... .................... $ 200,000 ongoing
d. Resume full amount of PFA do .............. $ 594,000 ongoing
Recommended 2005 Budget Additions/Chanee
The recommendation for 2005 budget adjustments requiring General Fund monies comes with a
caveat. If voters approve the repeal of the City's sales tax on grocery food in April 2005, new
recommendations will be presented to Council that will require ongoing service cuts of
approximately$2.0 million in order to balance the budget.
October 19, 2004 -3- Item No. 11
After reviewing all the requests, the Interim City Manager presented recommended adjustments
to the 2005 budget plan to Council during Study Sessions held on September 28 and October 12,
2004. The recommended adjustments to the 2005 budget plan based on the direction received
from Council at those Study Se 'on e o r
General Fund:
A ping One-time
A. Cultural, Library &Recreational Services
1. Maintenance of new medians $ 33,000
2. Reinstating 2004 Median Maint. Cuts 30,000
3. Old Town Square Maintenance 44,000 $ 75,000
B. Executive, Legislative, &Judicial Services
1. Police Bargaining 78,250
C. Poudre Fire Authority
1. Station#14 182,000 818,000
2. South Ladder Truck 245,000
D. Police
1. Pilot Party Project 22,000
E. Transportation Services
P1. Pavement Managemen 2,152,949
2. Additional Code Enforcement Inspector 64,049
F. Non-Departmental
1. Humane Society 64,479 69,636
2. Island Grove Regional Treatment Center, Inc. 18,633
3. Health District of Northern Latimer County 50,810
Total General Fund Adjustments $ 417,528 $ 3,530,278
Non-General Fund:
On oin One-time
A. Community Planning &Environmental Services
1. Recycling Drop-off Fa ' it pe 11,750
2. Housing Compliance fficer 2,000 50,000
Cultural, Library &Recreationa ce P Y
1. Recreation -Facility Infrastructure Improvements, etc. 120,000
Executive, Legislative, &Judicial Services
1. Addition of Attorney 82,000
2. Economic Vitality and Sustainability 240,000
October 19, 2004 -4- Item No. 11
Transportation Services
1. De-icing Facility Bond Payment 108,438
2. Youth Fares from Bohemian Grant 50,000
3. Loveland Services 000
0
Total Non-General Fund Adjus P)054'000 $ 580,188
Productivity Savings & Equipment Replacement:
Ongoing One-time
Communication &Technology Services
1. Infrastructure Replacement &Maintenance $ 14,000
Community Planning &Environmental Services
1. Affordable Housing Land Bank Trust 16,300
2. Recycling Drop-off Facility Operations 1,321
Executive, Legislative, &Judicial Services
City Attorney's Office
1. Telephone Costs 500
2. On-line Computerize esearc P Y 650
3. CML Conference 5,000
4. Training 500
5. Colorado Bar Association Licensing Fees &Dues 1,500
6. Periodicals &Books 1,500
7. Costs Related to Request for New Attorney 3,450
Total Productivity Or Equipment Replacement Adjustments $ 0 $ 44,721
Miscellaneous:
Onizoing One-time
Cultural, Library&Recreational Services
1. Golf-Reduction of Budget ($203,797)
2. Parks - Reduction of Budget (30,000)
3. Parks - Transfer Position from Recreation to Parks 78,172
4. Recreation -Transfer 172)
to Parks
Transportation Services C
UP
Y'
1. Reclassify Transportation Maintenance Worker $ 0 $ 0
Total Miscellaneous Adjustments ($ 30,000) ($203,797)
October 19, 2004 -5- Item No. 11
Budget Advisory Committee Recommendations
A Budget Advisory Committee ("BAC") was used for the first time by the City to develop
recommendations for adjustme oere
Pjustmen
p ent those recommendations to
Council. The recommended a stme tt f staff in almost all areas.
In addition to the recommen the BAC made some general
recommendations involving a critical evaluation of all City services and the financial plan
(budget) related to the services. The following are examples of the areas that the BAC believes
should be carefully reviewed.
• Fire Services - Poudre Fire Authority f PFA") — fire operations is a critical service to the
Fort Collins' community. The BAC recommends that City Council request the PFA
Board to conduct an in-depth examination of how fire services are delivered. A sample
of questions to address includes: Is the current shift structure the most effective and cost-
efficient approach to fire suppression? What are the station/apparatus staffing levels and
what are the options to make this more cost effective? Are PFA requirements and
responses changing from fire service to emergency service? If so, what is the impact on
future fire operations and services? Is it necessary for large fire apparatus to respond to
all routine emergency medical calls?
• Recreation Fee Polic is the xisti Pyro
priate? Should fees cover a
greater percentage of tl costs?
• All City Services — conduct a re-examination of all City services — the mix and the level
that is currently provided. Are all existing services still warranted? Are there services
that should be eliminated, scaled back, enhanced? Are there services that are not now
being provided that should be provided? As new service requests and requirements are
identified, the revenues and expenditures need to be reviewed for the effect on the overall
budget. For the services that we do and should provide, are we delivering those in the
most cost effective manner possible?
• Employee Compensation — the City should continue to examine and determine the
appropriate array of public and private sector agencies and businesses against which it
compares and benchmarks the compensation (salary and benefits) for employees.
Similar to national trends, the City must find ways to minimize rising health care costs.
Overtime costs should also be examined in relation to: what is driving the costs; are
overtime costs rising if fit,, a Ytpnvate
reduce or minimize overtime
costs?
• Outsourcine — what City vices ou ced sector? Are there other
services that can or should be outsourced? What is the method by which internal services
vs. outsourcing is evaluated?
October 19, 2004 -6- Item No. 11
• Revenue Policies and Projections—expenditures are one side of the equation. How does
Fort Collins compare with other cities related to the array or mix of revenue sources.
What is the outlook fCh7es
e u n rt pins — which ones are likely to
diminish, remain a i and/ i re ? t actions must the City consider
to ensure a healthy ree sup rt e service desired by the community?
Council has recommended that the BAC continue and be involved with evaluation of City
services. Staff agrees. Needless to say however, the recommended areas of study by the BAC
cannot be done in one year with any justice. Staff would recommend that the evaluation of
services be done over several years due to personnel resources as well as the more detailed and
extended budget process in 2005 required for the 2006-2007 biennial budget.