HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/07/2008 - FIRST READING OF ORDINANCE NO. 127, 2008, BEING TH ITEM NUMBER: 30
AGENDA ITEM SUMMARY DATE: October 7, 2008
FORT COLLINS CITY COUNCIL STAFF: Darin Atteberry
SUBJECT
First Reading of Ordinance No. 127, 2008, Being the Annual Appropriation Ordinance Relating to
the Annual Appropriations for the Fiscal Year 2009; Amending the Budget for the Fiscal Year
Beginning January 1, 2009, and Ending December 31, 2009; and Fixing the Mill Levy for Fiscal
Year 2009.
RECOMMENDATION
Staff recommends adoption of this Ordinance on First Reading.
FINANCIAL IMPACT
This Ordinance amends the City Budget for fiscal year 2009 and represents the annual appropriation
for fiscal year 2009 in the amount of$548,637,224. The Ordinance also sets the City mill levy at
9.797 mill, unchanged since 1991.
EXECUTIVE SUMMARY
This Ordinance amends the adopted 2009 Budget and sets the amount of $548,637,224 to be
appropriated for fiscal year 2009. The Net City Budget, which excludes internal transfers between
City funds, is $440,479,274 for 2009. The Net City Budget, as amended, is allocated to:
Adopted Amended
2009 2009
Operations $351,346,102 $356,210,925
Debt Service 26,232,854 26,235,588
Capital 58,776,761 58,032,761
This Ordinance also sets the 2009 City mill levy at 9.797 mills, unchanged since 1991.
October 7, 2008 -2- Item No. 30
BACKGROUND
City Council adopted the 2008-2009 Biennial Budget and appropriated monies for expenditure in
fiscal year 2008. State statutes and the City Charter both require an annual appropriation to cover
expenses for the ensuing year(2009)based upon the adopted budget. The Second Reading must be
done before the last day of November and is currently scheduled for October 28, 2008.
2009 Revenue Update
The revenue forecast model was updated in July of 2008 with data from the first six months of the
year. The update was presented to the Finance Committee on July 21. Sales tax revenue is
projected to increase 4.0%in 2009 over 2008 collections due to the influence of current retail trends
and the addition of the Front Range Village retail center. The 2009 use tax "ceiling" is reduced
slightly to reflect the decrease in residential building activity and automobile sales.
General Fund Revenue:
Adopted 2009 Amended 2009
Sales Tax (2.25) $49,840,160 $52,270,182
Use Tax (2.25) $ 8,300,000 $ 8,200,000
Recommended 2009 Budget Additions
After reviewing all the requests, the City Manager is recommending the following adjustments to
the 2009 budget which were presented to the Finance Committee on September 15. Two additions
have been made since the Finance Committee reviewed the list of adjustments. The additions made
are (1) Downtown River District Implementation project for $100,000 and (2) Homelessness
Initiative Support for $100,000. Both of these requests are for one-time money from the General
Fund. The adjustments are listed in two categories: Basic Operational—requests that are needed
for operation and maintenance of the service area; and Enhancements — requests that expand the
scope of service. General Fund recommended adjustments total $1,426,568 and recommended
adjustments to Other Funds total $2,704,505.
General Fund:
OnQoinE One-time
A. Basic Operational
1. Parks Maintenance—Fuel Costs $ 60,500
2. Parks Maintenance—Weed Control 30,000
3. Parks Maintenance—Trail Mowing 5,135
4. Operations Services—Natural Gas 42,000
5. Budget Accounting& Reporting Tool-Phase 2 65,000
6. Streets Snow Removal Fuel &Materials 215,226
7. Signal Maintenance Fuel Costs 11,786
8. Signs & Pavement Markings Fuel & Paint 60,417
9. Pavement Management Program 323,280
10. Street Patching &Maintenance Fuel &Asphalt 78,964
October 7, 2008 -3- Item No. 30
11. Sweeping, Mowing Road Shoulders & Maintenance
of Alleys, Unpaved Roads—Fuel 42,405
12. Streets Facility Natural Gas 7,505
13. Lincoln Center Services 10,250
Total General Fund Basic Operational $ 887,468 $ 65,000
B. Enhancements
1. Pilot Program, Asst. District Attorney on Site $ 88,000
2. Repay Larimer County for DDA Parking Garage $186,100
3. Downtown River District Implementation 100,000
4. Homelessness Initiative Support 100,000
Total General Fund Enhancements $186,100 $ 288,000
Total General Fund Adjustments $ 1,073,568 $ 353,000
Other Funds:
Ongoing One-time
A. Basic Operational
1. PFA Station 4 Debt Payment $234,354
2. Harmony Road Maint. Fuel &Materials 17,637
3. Golf Fuel Costs 49,787
4. Utility - Information Technology Functions
not budgeted 536,400
5. Pavement Management Program 966,720
6. Utility Funds Fuel Costs 416,607
Total Other Funds Basic Operational $ 2,221,505 $0
B. Enhancements
1. Security Improvements to 330 S. College and
700 Wood Street $ 200,000
2. Downtown Parking Demand Analysis 30,000
3. Utilities Security Coordinator $ 75,000
4. Utilities-Equipment/Fumiture for Additional Staff 20,000
5. Light& Power- Energy Services Program
Coordinator 60,000
6. Light& Power- Energy Services Engineer 98,000
Total Other Funds Enhancements $ 233,000 $ 250,000
Total Other Fund Adjustments $ 2,454,505 $ 250,000
Miscellaneous
In addition to the recommended adjustments, a couple of miscellaneous adjustments must be made
to correct the 2009 appropriations for recent changes. The additional revenue projected to be
received in the Sales&Use Tax Fund must be appropriated for transfer to the General Fund and to
the other funds receiving this revenue.
October 7, 2008 -4- Item No. 30
Also,with the refinancing of the City's certificates of participation in June 2007,the debt payments
in the Capital Leasing Corporation Fund have changed. Total debt payments have increased by
about$3,000 with the General Funds portion increasing by less than$10,000. These appropriation
changes must also be made and are included in the Amended 2009 appropriations.
ATTACHMENTS
1. Council Finance Committee minutes - September 15, 2008.
ATTACHMENT 1
City of FinanceNMason
ministration
215 N. Mason
ins 2 °Floor
PO Box 580
Fort Collins,CO 80522
970.221.6788
Fort Coll
970.221.6782-fax
fcgov.com
Council Finance Committee
Minutes
09/15/08
10:30 a.m - 12:00 p.m.
Council Attendees: Mayor Doug Hutchinson, Councilmember Ben
Manvel, Councilmember Kelly Ohlson
City Staff Attendees: Darin Atteberry, Kraig Ecton, Mike Freeman,
Chuck Seest, Heather Shepherd, John Voss
Others: Ann Hutchinson from the Chamber of Commerce;
Julia Stone from Bondi it Co., LLC
Approval of the Minutes from the August 30th meeting.
Minutes were approved.
Briefing on Refunding of water bonds
Chuck gave an update to the Committee regarding the 1 Water Bonds that are now
approaching their 10 year call date and are eligible f efunding. According to James
Capital, the City's financial advisor, the refundin the $18.6 million of bonds would
result in net savings of approximately $1.0 $1. illion for the water utility based on
market conditions as of September 10tn
The Committee agreed that an ordi ce approving the refunding transaction should
be presented at the regular City ncil Meeting on October 7, 2008.
Discussion of Tax Incre Methodologies.
Ben summarized the p ess to validate his understanding of the tax increment
methods for the D and URA. Chuck reviewed flow charts illustrating the overall
process of the Assessor for valuing all parcels in the County and the process for
the Allocati of a portion of that value to Tax Increment Funding Entities.
Deliv of CAFR and Audit Report to Governance from BONDI
J ' Stone, partner from Bondi and Co., LLC, stated that Bondi's opinion for the
ty's financial statements was `unqualified' which is the best an organization can
receive. Additionally, there were no findings related to the City's expenditure of
Federal dollars. The auditors didn't post any audit adjustments to the financial
statements this year.
Fort Collins
There were no big changes in accounting policies or estimates or disclosures.
With regard to the 'continuing items' in listed in Bondi's report, Kelly asked if,.-may
'continuing' means from one year previous, or more?
Julia responded these are from last year's report, but last year's report contained
items from a couple prior years.
Darin asked Chuck to report on the status or developments of the item regarding
federal and state grants, for which the C!W-s'response was 'we agree'. Darin wanted
to know how City staff is tracking it pd'Piow it's reported when completed. Chuck
said one way was to receive rep%ts`on these items from each department during the
regular Finance and Budget jiaison meetings. Darin asked if the departments know
that reporting regularly issa requirement. Chuck said they do know but it has been a
'mixed bag' in the past"'
ast Finance will work on communication to improve this process
going forward, particularly in light of the significant federal grant funding the City is
scheduled to-receive for the Mason Corridor Project.
T�h ma' yor presented an award of appreciation to Bondi Et Co., LLC, for their service
X, the last 15 years.
2009 Budget Exception Discussion
Darin said this is the middle of the two year budget cycle and City departments have
a few exception items that will be coming to Council in October for approval by the
charter deadline at the end of November.
Darin asked for thoughts specifically on the homelessness initiative. He'd like to
dedicate some 'seed money' of up to $100,000 and give it to the appropriate entity in
the community to administer/facilitate it. He said it helps leverage other resources
within the community.
Mike stated that for 2010-2011 the Finance staff is projecting approximately a 2.5 %
revenue growth. Mike has given a recommendation to Darin that the City try to retain
about $5 million in savings at the end of 2009 so it can be drawn upon to supplement
the budget in 2010 and 2011.
Darin pointed out the PILOT program for Police Services that currently places a
Larimer County Assistant District Attorney at Police Headquarters has been working
well. Darin believes this arrangement will be a strong benefit to the community.
Ben asked why these are exceptions only for 2009 (like fuel costs) and Mike said that
it will also be in 2010 and 2011 but this document shows only adjustments to the 2009
budget.
At 11:30 Darin and Doug had to leave for another meeting.
q
ORDINANCE NO. 127, 2008
OF THE COUNCIL OF THE CITY OF FORT COLLINS
BEING THE ANNUAL APPROPRIATION ORDINANCE
RELATING TO THE ANNUAL APPROPRIATIONS
FOR THE FISCAL YEAR 2009; AMENDING THE BUDGET FOR
THE FISCAL YEAR BEGINNING JANUARY 1, 2009, AND ENDING
DECEMBER 31, 2009; AND FIXING THE MILL LEVY FOR FISCAL YEAR 2009
WHEREAS,on November 20,2007,the City Council adopted on second reading Ordinance
No. 118,2007,approving a biennial budget for the years beginning on January 1,2008,and January
1, 2009; and
WHEREAS, the City Manager has submitted to the City Council proposed amendments to
the 2009 budget adopted by the City Council in Ordinance No. 118, 2007; 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 City 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 City 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 City 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 City 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 City Council has reviewed the City Manager's recommended changes
to the"2009 Proposed Appropriations"section of the Fort Collins 2008 and 2009 Biennial Budget
(the`Biennial Budget'), as shown on pages 31 through 33 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 the following changes:
2009 Proposed Appropriations
Amount of
Existing Adiustments As Amended
GENERAL FUND $107,760,121 $1,436,450 $109,196,571
ENTERPRISE FUNDS
Golf $ 2,787,942 $49,787 $ 2,837,729
Light& Power Operating 94,045,354 373,248 94,418,602
Capital:
Service Center Additions 254,093 254,093
Southwest Enclave Annexation 800,000 800,000
Substation Improvements 220,000 220,000
Wi Fi 100,000 100,000
Total Light& Power 95,419A47 373,248 95,792,695
Storm Drainage Operating 9,671,360 75,882 9,747,242
Capital:
Basin Master Planning 95,000 95,000
Canal Importation Basin 5,000,000 5,000,000
Cooper Slough-Boxelder 1,000,000 1,000,000
Developer Repays 85,000 85,000
Drainage System Replacement 365,000 365,000
Dry Creek Basin 300,000 300,000
Service Center Improvements 52,294 52,294
Total Storm Drainage 16,568,654 75,882 16,644,536
Wastewater Operating 21,701,113 131,936 21,833,049
Capital:
Collection System Replacement 1,150,000 1,150,000
Collection System Study 50,000 50,000
Mulberry WRF Improvements 25,650,000 25,650,000
Service Center Improvements 58,548 58,548
Sludge Disposal Improvements 150,000 150,000
Treatment Plant Improvements 200,000 200,000
Water Reclamation Replacement Program 1,497,000 1,497,000
Total Wastewater 50,456,661 131,936 50,588,597
-2-
Water Operating 27,239,531 147,818 27,387,349
Capital:
Cathodic Protection 50,000 50,000
Distribution System Replacement 795,000 795,000
Halligan Reservoir Expansion 8,965,000 8,965,000
Meter Conversion Program 920,000 920,000
Service Center Improvements 139,065 139,065
Treatment Facility Improvements 500,000 500,000
Water Production Replacement Program 1,175,000 1,175,000
Water Supply Development 100,000 100,000
Total Water 39,883,596 147,818 40,031,414
TOTAL ENTERPRISE FUNDS $205,116,300 $778,671 $205,894,971
INTERNAL SERVICE FUNDS
Benefits $23,256,640 $23,256,640
Data& Communications 7,376,788 65,000 7,441,788
Equipment 11,003,508 11,003,508
Self Insurance 3,375,062 3,375,062
Utility Customer Service &Administration 14,460,668 677,123 15,137,791
TOTAL INTERNAL SERVICE FUNDS $59,472,666 $742,123 $60,214,789
SPECIAL REVENUE & DEBT SERVICE FUNDS
Capital Improvement Expansion Fund $ 461,141 $234,354 $ 695,495
Capital Leasing Corporation 5,717,380 2,734 5,720,114
Cemeteries 651,519 651,519
Cultural Services & Facilities 5,112,641 5,112,641
Debt Service 1,352,478 1,352,478
General Employees' Retirement 2,764,973 2,764,973
Natural Areas Fund 9,428,171 9,428,171
Perpetual Care 70,452 70,452
Recreation 8,111,108 8,111,108
Sales &Use Tax 78,583,777 3,903,879 82,487,656
Special Assessments Debt Service 830,000 830,000
Street Oversizing 5,310,478 5,310,478
Transit Services 10,874,885 10,874,885
Transportation Services 28,405,220 1,853,940 30,259,160
TOTAL SPECIAL REVENUE & DEBT
SERVICE FUNDS $157,,674,223 $ 5,994,907 $163,669,130
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CAPITAL IMPROVEMENT FUNDS
General City Capital
City Bridge Program $300,000 $300,000
Police Facility 665,682 665,682
Railroad Crossing Replacement 100,000 100,000
Total General City Capital $1,065,682 0 $1,065,682
1/4 Cent Building on Basics
Administration $60,656 $60,656
Bicycle Program Plan Implementation 125,000 125,000
Intersection Improvements and Traffic Signals 2,443,155 2,443,155
Lincoln Center Renovation/Cultural Facilities Plan 2,217,436 2,217,436
Library Technology 744,000 (744,000) 0
North College Ave. Improements 250,000 250,000
Park Upgrades and Enhancements 304,897 304,897
Pedestrian Plan and ADA Improvements 300,000 300,000
Total 1/4 Cent Building on Basics $ 6,445,144 744 000 5 701 144
Conservation Trust Fund
Administration $ 251,739 $ 251,739
Fossil Creek Trail 50,000 50,000
Open Space Acquisition 10,000 10,000
Trail Acquisition, Development& Repair 350,000 350,000
Transfer to General Fund-Parks Maintenance 725,146 725,146
Tri-City Trails 30,000 30,000
Total Conservation Trust Fund $1,416,885 $1,416,885
Neighborhood Parkland Fund
Administration $ 438,052 $ 438,052
Huidekoper Park 50,000 50,000
New Park Site Acquisition 150,000 150,000
New Park Site Development 150,000 150,000
Park Site Equipment 15,000 15,000
Registry Ridge Park 300,000 300,000
Richards Lake Park 200,000 200,000
Staley Park 175,000 175,000
Total Neighborhood Parkland Fund SlA78,052 $1,478,052
TOTAL CITY FUNDS $540,429,073 $8,208,151 $548,637,224
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Section 2. That there is hereby appropriated out of the revenues of the City of Fort Collins,
for the fiscal year beginning January 1, 2009, and ending December 31, 2009, the sum of FIVE
HUNDRED FORTY-EIGHT MILLION SIX HUNDRED THIRTY-SEVEN THOUSAND TWO
HUNDRED TWENTY-FOUR DOLLARS ($548,637,224) to be raised by taxation and otherwise,
which sum is deemed by the City 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 2009 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 31,2008,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. That 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 7th day of October,
A.D. 2008, and to be presented for final passage on the 28th day of October, A.D. 2008.
Mayor
ATTEST:
Chief Deputy City Clerk
Passed and adopted on final reading on the 28th day of October, A.D. 2008.
Mayor
ATTEST:
City Clerk
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