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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/18/2007 - SECOND READING OF ORDINANCE NO. 140, 2007, APPROPR ITEM NUMBER: 7 AGENDA ITEM SUMMARY DATE: December 18, 2007 FORT COLLINS CITY COUNCIL STAFF: Mike Freeman Chuck Seest SUBJECT Second Reading of Ordinance No. 140, 2007, Appropriating Prior Year Reserves in the General Fund and Authorizing Transfer Between Funds for Asset Replacement. RECOMMENDATION Staff recommends adoption of this Ordinance on Second Reading. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on December 4, 2007, provides appropriations from General Fund reserves to the Fleet Fund and Communications Fund to implement the new asset replacement programs for vehicles,facilities,and Information Technology needs. The funds are recommended to be appropriated from General Fund reserves. These funds were created through prior year budget savings and are intended to be used for Asset Replacement needs. It is recommended that $2,350,000 be appropriated to the Fleet Fund and $1,500,000 be appropriated to the Communications Fund. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- December 4, 2007. ATTACHMENT ITEM NUMBER: 9 AGENDA ITEM SUMMARY DATE: December4, 2007 FORT COLLINS CITY COUNCIL STAFF: Mike Freeman Chuck Seest SUBJECT f " "' First Reading of Ordinance No. 140,2007,Appropriating Prior Year Reserves in the General Fund and Authorizing Transfer Between Funds for Asset Replacement. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. EXECUTIVE SUMMARY This Ordinance provides apCent fro G Fu reserves to the Fleet Fund and Communications Fund to imp was r lacement rograms for vehicles,facilities,and Information Technology needds ar recommended o e appropriated from General Fund reserves. These funds were created through prior year budget savings and are intended to be used for Asset Replacement needs. It is recommended that$2,350,000 be appropriated to the Fleet Fund and $1,500,000 be appropriated to the Communications Fund. BACKGROUND In the past, the organization has largely funded asset replacement programs through end-of-year budget savings. These savings were recorded in the General Fund in the reserves as "Productivity Savings." Funds were appropriated from the Productivity Savings as needed through the budget process for replacement of equipment, vehicles, and facility needs. Staff has recommended to the City Council Finance Committee and the Cit Council that this practice be discontinued and funds pooled centrally to provide focfits, et la m t. gh implementing this program, there are several significant b h inc 1. Better accounting for and reporting on overa asset rep acement needs and budgets. 2. A level playing field for those departments that, in the past, were not able to generate Productivity Savings — there is now a mechanism to ensure that assets are going to be replaced on a timely basis. December 4, 2007 -2- Item No. 9 3. No longer accounting for funds in the General Fund reserves that are not reserves but funds that will allocated and spent according to an overall plan. There were numerous discussiCd�ud (rd) 0 oc regarding the implementation of the asset management progrT ic fi ize t has already been anticipated in the City Manager's recommeng ORDINANCE NO. 140, 2007 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUNDAND AUTHORIZING TRANSFER BETWEEN FUNDS FOR ASSET REPLACEMENT WHEREAS, City departments have traditionally replaced vehicles and information technology equipment from end-of-year departmental budget savings; and WHEREAS, the end-of-year budget savings were recorded in the General Fund reserve for Productivity Savings by department; and WHEREAS, with the 2008-2009 Recommended Budget, staff recommended that the department savings be pooled and managed centrally to provide for ongoing asset replacement; and WHEREAS, the central management and pooling of funds will provide significant benefits including: (1)better accounting for and reporting on overall asset replacement needs and budgets, and (2) more equality for those departments that were not able to generate savings in the past and could not replace assets on a timely basis; and WHEREAS, staff recommends that$2,350,000 be transferred from the General Fund to the Equipment Fund for vehicle replacement, and$1,500,000 be transferred from the General Fund to the Communications Fund for information technology equipment replacement; and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins (the"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, 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 to another fund, provided that the purpose for which the transferred funds are to be expended remains unchanged. 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 General Fund prior year reserves the sum of TWO MILLION THREE HUNDRED FIFTY THOUSAND DOLLARS ($2,350,000), for transfer to the Equipment Fund for vehicle replacement. Section 2. That there is hereby appropriated for expenditure from General Fund prior year reserves the sum of ONE MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000), for transfer to the Communications Fund for information technology equipment replacement. Introduced, considered favorably on first reading, and ordered published this 4th day of December, A.D. 2007, and to be presented for final passage on the 18th day of December, A.D. 2007. i ayo ATTEST: '44 Al City Clerk Passed and adopted on final reading on the 18th day of December, A.D. 2007. Mayor ATTEST: City Clerk