HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/19/2004 - FIRST READING OF ORDINANCE NO. 164, 2004, RELATIN ITEM NUMBER: 11
AGENDA ITEM SUMMARY DATE: October 19, 2004
FORT COLLINS CITY COUNCIL STAFF: Darin Atteberry
SUBJECT
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 the City Budget for fiscal year 2005 and represents the annual
appropriation for fiscal year 2005 in the amount of$462,762,068. The Ordinance also sets the
City mill levy at 9.797 mill, unchanged since 1991.
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 2005 City mill levy at 9.797 mills, 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 Monies $3.5 Million
The original 2005 budget projection for sales tax (2.25%) available to the General Fund
anticipated collections to be approximately$47.1 million. Based 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 sources such as property tax, licenses and permits, intergovernmental,
charges for services, fines, earnings on investments, and miscellaneous revenues.
Available One-Time General Fund Monies
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 set-aside ............................................................. $ 320,000 ongoing
c. Resume Street Maintenance expanded funding ........................................ $ 200,000 ongoing
d. Resume full amount of PFA allocation ..................................................... $ 594,000 ongoing
Recommended 2005 Budget Additions/Change
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 Sessions are as follows:
General Fund:
Ongoing 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
1. Pavement Management 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 Larimer County 50,810
Total General Fund Adjustments $ 417,528 $ 3,530,278
Non-General Fund:
Ongoing One-time
A. Community Planning& Environmental Services
1. Recycling Drop-off Facility Operations 11,750
2. Housing Compliance Officer 72,000 50,000
Cultural, Library&Recreational Services
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 900,000
Total Non-General Fund Adjustments $1,054,000 $ 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 Attorneys Office
1. Telephone Costs 500
2. On-line Computerized Research 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:
Ongoin 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 Position from Recreation (78,172)
to Parks
Transportation Services
1. Reclassify Transportation Maintenance Worker $ 0 S 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 adjustments to the 2005 budget plan and present those recommendations to
Council. The recommended adjustments were in line with those of staff in almost all areas.
In addition to the recommended 2005 budget adjustments, 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("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 Policy — is the existing policy still appropriate? Should fees cover a
greater percentage of the 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 and if so, why; what can be done to reduce or minimize overtime
costs?
• Outsourcing — what City services are outsourced to the private 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 for the current revenue mix in Fort Collins—which ones are likely to
diminish, remain about the same, and/or increase? What actions must the City consider
to ensure a healthy revenue base to support the services 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.
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 $89,930,477 $4,418,277 $94,348,754
ENTERPRISE FUNDS
Golf $ 2,668,568 $(203,797) 2,464,771
Light & Power Operating 85,949,424 85,949,424
Capital:
Substation Improvements 166,411 166,411
Underground Conversion Program 2,443,993 2,443,993
Total Light &Power 88,559,828 0 88,559,828
Storm Drainage Operating 9,168,045 9,168,045
Capital:
Basin Master Planning 200,000 200,000
Developer Repays 250,000 250,000
Drainage Systems Enhancements 354,000 354,000
Dry Creek Basin 3,300,000 3,300,000
Fossil Creek Basin 400,000 400,000
Spring Creek Basin 1,000,000 1,000,000
Total Storm Drainage 14,672,045 0 14,672,045
Wastewater Operating 17,922,068 17,922,068
Capital:
Collection System Replacement 844,000 844,000
Treatment Plant Improvements 370,000 370,000
Total Wastewater 19,136,068 0 19,136,068
Water Operating 25,544,414 25,544,414
Capital:
Distribution System Replacement 695,000 695,000
Gravel Pit Storage Ponds 1,200,000 1,200,000
Halligan Reservoir Expansion 1,988,000 1,988,000
Meter Conversion Program 1,175,000 1,175,000
Michigan Ditch Improvements 450,000 450,000
Southwest System Improvements 57,000 57,000
Treatment Facility Improvements 150,000 150,000
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Water Supply Development 100,000 100,000
Total Water 31,359,414 0 31,359,414
TOTAL ENTERPRISE FUNDS $156,395,923 $(203,797) $156,192,126
INTERNAL SERVICE FUNDS
Benefits $19,784,716 $19,784,716
Communications 1,431,118 1,431,118
Equipment 7,025,382 7,025,382
Self Insurance 2,939,615 2,939,615
Utility Customer Service & Administration 13,335,168 13,335,168
TOTAL INTERNAL SERVICE FUNDS $44,515,999 $0 $44,515,999
SPECIAL REVENUE &DEBT SERVICE FUNDS
Capital Improvement Expansion Fund $ 127,800 $ 398,074 $ 525,874
Capital Leasing Corporation 1,636,049 3,621,703 5,257,752
Cemeteries 628,268 628,268
Cultural Services &Facilities 4,287,684 4,287,684
Debt Service 2,783,631 2,783,631
General Employees'Retirement 2,127,891 2,127,891
Natural Areas Fund 9,377,439 9,377,439
Perpetual Care 70,700 70,700
Recreation 8,013,797 41,828 8,055,625
Sales & Use Tax 75,968,034 240,000 76,208,034
Special Assessments Debt Service 0 0
Street Oversizing 3,772,678 3,772,678
Transit Services 10,412,717 950,000 11,362,717
Transportation Services 23,310,015 2,325,436 25,635,451
TOTAL SPECIAL REVENUE&DEBT
SERVICE FUNDS $142,516,703 $7,577,041 $150,093,744
CAPITAL IMPROVEMENT FUNDS
General City Capital
CSU Transit Center $2,393,440 $2,393,440
Facilities MR&R Capital 329,270 329,270
Minor Street Capital 218,493 218,493
Pedestrian Accessibility 382,788 382,788
Police Facility 2,049,351 796,147 2,845,498
Total General City Capital $5,373,342 $796,147 $6,169,489
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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 $6,981,781
1/4 Cent Natural Areas and Parks
Administration $ 64,453 64,453
Total 1/4 Cent Natural Areas and Parks 64,453 $0 $ 64,453
1/4 Cent Streets and Transportation
Administration $ 100,808 $ 100,808
Pedestrian Plan 342,857 342,857
Mason Street Corridor 1,373,051 1,373,051
Total 1/4 Cent Streets and Transportation $1,816,716 $0 $1,816,716
Conservation Trust Fund
Administration $ 335,849 $ 335,849
Fossil Creek Trail 350,000 350,000
Open Space Acquisition 20,000 20,000
Trails Maintenance 67,665 67,665
Trail Acquisition, Development & Repair 350,000 350,000
Tri-City Trails 50,000 50,000
Total Conservation Trust Fund $1,173,514 $0 $1,173,514
Neighborhood Parkland Fund
Administration $ 335,492 $ 335,492
Lee Martinez Park Addition 75,000 75,000
New Park Site Acquisition 150,000 150,000
New Park Site Development 150,000 150,000
Park Site Equipment 15,000 15,000
Provincetowne Park 130,000 130,000
Registry Ridge Park 100,000 100,000
Richards Lake Park 200,000 200,000
Rossborough Park Improvements 50,000 50,000
Staley Park 200,000 200,000
Total Neighborhood Parkland Fund $1,405,492 $0 $ 1,405,492
TOTAL CITY FUNDS $450,174,400 $12,587,668 $462,762,068
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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 FOUR HUNDRED SIXTY-TWO MILLION SEVEN HUNDRED SIXTY-TWO
THOUSAND SIXTY-EIGHT DOLLARS ($462,762,068) 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 Levy.
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 Latimer 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
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