HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/04/2007 - FIRST READING OF ORDINANCE NO. 140, 2007, APPROPRI ITEM NUMBER: 9
AGENDA ITEM SUMMARY DATE: December4, 2007
FORT COLLINS CITY COUNCIL STAFF: Mike Freeman
Chuck Seest
SUBJECT
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 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.
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 City Council that this practice be discontinued and funds
pooled centrally to provide for ongoing asset replacement. Through implementing this program,
there are several significant benefits, which include:
1. Better accounting for and reporting on overall asset replacement 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.
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.
December 4, 2007 -2- Item No. 9
There were numerous discussions in the 2008/2009 budget process regarding the implementation
of the asset management programs. This Ordinance finalizes what has already been anticipated in
the City Manager's recommended budget.
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.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 18th day of December, A.D. 2007.
Mayor
ATTEST:
City Clerk