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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/07/1998 - ITEMS RELATING TO REVENUES EXCEEDING THE GROWTH LI y;w. ITEM NUMBER: AGENDA ITEM SUMMARY DATE: April 7, 1998998 FORT COLLINS CITY COUNCIL Diane Jones/ • STAFF: Doug Smith SUBJECT: Items Relating to Revenues Exceeding the Growth Limit Imposed by Article X. Section 20 of the State Constitution. RECOMMENDATION: Staff and the Finance Committee recommend adoption of the Resolution and of the Ordinance on First Reading. The Finance Committee has approved the projects included in the Resolution. FINANCIAL IMPACT: The 1996 revenues that exceeded the growth limit ($952,295) were held in reserves at the end of 1996. Resolution 98-60 provides formal direction concerning the particular projects, uses and allocations of those revenues that exceeded the growth limit. Ordinance No. 57, 1998, appropriates $60,000 which had been held in the Transportation Fund reserves for expenditure on the proposed Traffic Signal Timing project. The remainder ($892.295) has been appropriated for expenditure in 1998 or will be held in fund reserves to be appropriated for their designated use at a later date. EXECUTIVE SUMMARY: A. Resolution 98-60 Approving Proposed Uses of 1996 Revenue in Excess of The Constitutional Revenue Growth Limit And Retained by The City With Voter Approval. B. First Reading of Ordinance No. 57, 1998, Appropriating Prior Year Reserves in the Transportation Services Fund to be Used for the Traffic Signal Timing Project. In November 1997,Fort Collins' voters approved a ballot measure, effective for fiscal year 1996 and subsequent years, that allows the City to retain revenues that exceed the growth limit imposed by Article X, Section 20, and to use those revenues for the following designated purposes: • Public health and safety including,but not limited to, environmental monitoring and mitigation • Transportation • Growth management • Maintenance and repair of public facilities DATE: April 7, 1998 2 I ITEM NUMBER: 21 A-B Within the limitations imposed by the ballot measure,the City has the discretion to determine how to spend the Retained Revenues. The amount of Retained Revenues received by the City and attributable to fiscal year 1996 was$952,295. The following items give formalized direction on how those revenues that exceeded the growth will be spent and appropriates a portion of that revenue for a designated project. BACKGROUND: Since approval of Article X, Section 20 in 1992, City revenues did exceed the constitutional growth limit in 1994 and 1995. In 1995, the City refunded 1994 revenues in the amount of$12,871 by crediting utility customers' accounts. In 1996, City voters approved a one-time retention of 1995 revenues in the amount of$764,000 which was used for a specific list of transportation services. In November, 1997, City voters approved a ballot measure effective for revenues collected in 1996 and subsequent years, which allows the City to retain revenues that exceed the constitutional growth limit ("Retained Revenues"), and to use the Retained Revenues for the following designated purposes: • Public health and safety including,but not limited to, environmental monitoring and mitigation • Transportation • Growth management • Maintenance and repair of public facilities Within the above limitations imposed by the ballot measure,the City has the discretion to determine how to spend the Retained Revenues. For the 1996 fiscal year, City revenues did exceed the growth limit set out in Article X, Section 20 by $952,295. The Budget Office has identified nine funds in which revenues exceeded the constitutional growth limit, as follows: FUND RETAINED REVENUE AMOUNT 1. Neighborhood Parkland $164,298 2. Transit Services 1,887 3. Street Oversizing 207,229 4. Transportation 158.830 5. Cultural Services and Facilities 91,558 6. Recreation 114,924 7. Cemetery 20,778 8. Perpetual Care 10,942 9. Capital Expansion 181,849 Total (all Funds) $952,295 DATE: April 7, 1998 ITEM NUMBER: 21 A-B The source of revenue for the nine identified funds is predominantly user fees. Revenue from these user fees must be spent for the purposes for which they are collected. For example, fees collected • by the Transportation Fund must be used for transportation purposes and fees collected by the Recreation Fund must be used for recreational purposes. Consequently, any monies spent from the 1996 amount that exceeded the growth limit must satisfy two general criteria. 1. Fees collected must be used for the purposes for which they are collected. 2. Retained Revenues can only be used for the specific purposes approved by City voters in November, 1997. Using these criteria staff developed a list of projects and uses for that portion of the 1996 revenues that exceeded the growth limit. The list of projects and uses was presented for discussion to the Council Finance Committee on two separate occasions. This list is attached to the Resolution presented for Council consideration and adoption. At its meeting on February 19, 1998,the Finance Committee endorsed the list of projects and uses (current and future)that is attached. RESOLUTION 98-60 . OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING PROPOSED USES OF 1996 REVENUE IN EXCESS OF THE CONSTITUTIONAL REVENUE GROWTH LIMIT AND RETAINED BY THE CITY WITH VOTER APPROVAL WHEREAS, in 1992, voters of the State of Colorado approved an amendment to the State Constitution which imposed growth limits on the rate at which City revenues and expenditures may increase; and WHEREAS, said amendment, enacted as Article X, Section 20 of the State Constitution, went into effect on January 1, 1993; and WHEREAS, since approval of Article X, Section 20, City revenues have exceeded the growth limits imposed in 1994, 1995, and 1996; and WHEREAS, Subsection 7(d)of Article X, Section 20 requires that any revenue collected in excess of the growth limit imposed by that Section be refunded in the next fiscal year unless voters approve a revenue change as an offset; and WHEREAS, in 1995, the City refunded $12,871 resulting from excess 1994 revenue over • the constitutional growth limit, by crediting customer's utility accounts; and WHEREAS,in November 1996,City voters approved a ballot measure allowing the City to retain revenues collected in 1995 that exceeded the constitutional growth limit,totaling $764,000, to be used for transportation services, including constructing and repairing streets,removing snow and de-icing streets, and constructing sidewalks to promote pedestrian safety; and WHEREAS,the City's 1996 revenues exceeded the constitutional growth limit by$952,295; and WHEREAS,in November 1997,City voters approved a ballot measure allowing the City to retain revenues in 1996, and in subsequent years, that exceed the constitutional growth limit (the "Retained Revenues"), provided that any such revenue be used for public health and safety (including, but not limited to, environmental monitoring and mitigation), growth management, transportation services, and maintenance and repair of public facilities; and WHEREAS, City staff has developed a list of projects and uses for the 1996 Retained Revenues, attached hereto as Exhibit"A" (the"Revenue Retention Projects"); and WHEREAS, said Revenue Retention Projects properly apply fee-based revenues to appropriate fee-supported expenditures,and are consistent with the limitations set forth in the ballot measure approved by the voters; and WHEREAS, the Revenue Retention Projects are also consistent with the direction of the Council's Finance Committee, which has considered proposals by staff and which recommends approval of the same; and WHEREAS, it is the desire of the Council to formally approve those City projects and uses to which the Retained Revenues will be applied. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Revenue Retention Projects listed on Exhibit "A", attached hereto and incorporated herein by this reference,be,and hereby are, approved by the Council for funding with 1996 Retained Revenues, subject to such subsequent modifications as the Council may deem appropriate. Passed and adopted at a regular meeting of the City Council held this 7th day of April,A.D. 1998. Mayor ATTEST: City Clerk Exhibit "A" Revenue Retention Projects Neighborhood Parkland: $164,298 Growth Management Revenue retention dollars identified in the Neighborhood Parkland fund will be combined with impact fees collected in 1997 and 1998 for neighborhood parks to complete the design of Case Park and complete the design and construction of Westfield, English Ranch, Ridgeview and Miramont parks in 1998. Transit: $1.887 Transportation These funds will be utilized for the Transfort marketing program. Specifically, we will be emphasizing the new Dial-A-Ride scholarship program and FoxTrot. Street Oversizing_ $207.229 Transportation Due to the nature of the Street Oversizing program and the fact that the timetable for projects is often driven by developers rather than the City, it is difficult to predict exactly when a specific project will occur. However, there are several projects that probably will be constructed in 1998. The revenue retention funds for Street Oversizing can be spent in 1998 for one or several of the following projects: Harmony Road Realignment with CR38E Timberline at Willow Springs PUD Overland Trail at Scenic Views PUD CR9 at Celestica US 287 at Shenandoah PUD Lincoln Street at Buffalo Run PUD (Affordable Housing Units) Harmony and JFK Parkway at Harmony Towne Center PUD Willox and College at Willox Crossing PUD The Street Oversizing Program plans to construct approximately $2.4 million in street improvements in 1998, thus there is ample opportunity to utilize the revenue retention funds. Transoortation: $158,830 Transportation Traffic Signal Timing Project: $60,000 The Traffic Signal Timing Project was among the requested service and facility improvements for the 1998 and 1999 budget. The project would include the following: • Counting turning movements at all signalized intersections during the a.m., noon, p.m., and weekend peaks; • costs of consulting help in developing new timing plans and strategies; and • fine-tuning the implementation of the plans. The Traffic Signal Timing Project would provide staff improved data to make adjustments to the City's current system. This would not replace or provide a major software and hardware upgrade to the City's outdated traffic signal system. A complete replacement is estimated to cost$2.0 to $4.0 million. Deicing Materials Storage Facility Project: $98,830 The building that is currently used to store deicing materials is an historic structure, and the materials (salt, sand, and other commercial products) are dissolving the masonry that holds the bricks in place. The $98,830 in revenue retention funds will be retained in reserve and combined with other accumulated reserves to allow Streets to do this project in 1998 or 1999. If current market rates hold, the 1992 Highway User Tax Revenue Bonds may be refinanced to affect savings of over $120,000. The refinancing would also allow the substitution of an insurance policy for the reserves now held for bonds which would release approximately $320,000. Cultural Services and Facilities: $91.558 Maintenance and Renovation of Public Facilities In 1998, these reserves will be used to renovate the Box Office at the Lincoln Center. This expansion is necessary to accommodate the increase in demand and usage at the center, the space needed to accommodate technologies that are being added and to increase safety and security. Recreation: $114,924 Maintenance and Renovation of Public Facilities City Park Pool Sewer Project: $20,000 The sewer at the pool needs to be replaced and expanded to comply with EPA regulations. City Park Center and Pottery Studio Renovation: $20,000 Minor repairs and improvements at these two buildings. Ballfield Light Replacement: $25,000 Replacement of outdated equipment with more energy efficient lighting. This money will be combined with renovation money from the • Parks Division. It will take several years to complete this project at all four locations. Outdoor Facility Upkeep: $50,000 Preventive maintenance and upgrades on selected ballfields, soccer fields, and tennis facilities. This money is collected as rental revenues from groups who use outdoor City facilities for their activities. It is spent directly on those facilities for upkeep and repair. Cemeteries: $20.778 Maintenance and Renovation of Public Facilities In 1998, these fees will be used to continue the design and construction of Columbarium facilities. Perpetual Care: $10.942 Maintenance and Renovation of Public Facilities These funds will be placed in the perpetual care fund and held for maintenance of specific grave sites in perpetuity. • Capital Expansion Fees: $181.849 Growth Management Library: $25,460 A portion of these fees in 1998 will be requested to purchase books and materials for both the Main and Harmony Libraries. The remaining portion will be held for future capital expansion. Community Parkland: $105.472 This revenue will continue to be held in a community parkland account for the eventual development of the Southwest Community Park and Youth Sports Complex. We anticipate that it will be eight to ten years before enough money is collected to build this park. Police: $12,729 . The amount will be held in reserve and be used for future equipment needs due to growth. Fire: $16,366 The amount will be held in reserve and will be used for site acquisition for Station 14. General Government: $21,822 The amount will be held in reserve and will be used for design or construction of future space needs due to growth. ORDINANCE NO. 57, 1998 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE TRANSPORTATION SERVICES FUND TO BE USED FOR THE TRAFFIC SIGNAL TIMING PROJECT WHEREAS, in 1992, voters of the State of Colorado approved an amendment to the State Constitution which imposed growth limits on the rate at which City revenues and expenditures may increase; and WHEREAS, said amendment, enacted as Article X, Section 20 of the State Constitution, went into effect on January 1, 1993; and WHEREAS, since approval of Article X, Section 20, City revenues have exceeded the growth limits imposed in 1994, 1995, and 1996; and WHEREAS, Subsection 7(d)of Article X, Section 20 requires that any revenue collected in excess of the growth limit imposed by that Section be refunded in the next fiscal year unless voters approve a revenue change as an offset; and WHEREAS, in 1995, the City refunded $12,871 resulting from excess 1994 revenue over • the constitutional growth limit, by crediting customer's utility accounts; and WHEREAS, in November 1996, City voters approved a ballot measure allowing the City to retain revenues collected in 1995 that exceeded the constitutional growth limit,totaling $764,000, to be used for transportation services, including constructing and repairing streets, removing snow and de-icing streets, and constructing sidewalks to promote pedestrian safety; and WHEREAS,the City's 1996 revenues exceeded the constitutional growth limit by $952,295; and WHEREAS, in November 1997, City voters approved a ballot measure allowing the City to retain revenues in 1996 and in subsequent year, that exceed the constitutional growth limit (the "Retained Revenues"), provided that any such revenue be used for public health and safety (including, but not limited to, environmental monitoring and mitigation), growth management, transportation services, and maintenance and repair of public facilities; and WHEREAS, City staff has developed a list of projects and uses for the 1996 revenue that exceeded the growth limit; and WHEREAS, on April 7, 1998, City Council passed Resolution 98-60 approving the aforementioned projects and uses to be funded from revenues exceeding the 1996 growth limits imposed by Article X, Section 20 of the State Constitution; and WHEREAS, portions of the 1996 Retained Revenues were either held in reserve fund balances at the end of 1996 or appropriated for expenditure as part of the 1998 and 1999 Biennial Budget; and WHEREAS, staff is recommending that $60,000 of the Retained Revenues in the Transportation Services Fund be used for the proposed traffic signal timing project; and WHEREAS,said funds are available in the Transportation Services Fund prior year reserves; and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins 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, it is the desire of the City Council to appropriate $60,000 from prior year reserves in the Transportation Services Fund to be used for the traffic signal timing project. NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from prior year reserves in the Transportation Services Fund the sum of SIXTY THOUSAND DOLLARS ($60,000)to be used for the traffic signal timing project. Introduced and considered favorably on first reading and ordered published this 7th day of April, A.D. 1998, and to be presented for final passage on the 21 st day of April, A.D. 1998. Mayor ATTEST: City Clerk Passed and adopted on final reading this 21 st day of April,A.D. 1998. Mayor ATTEST: City Clerk