HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/18/2011 - FIRST READING OF ORDINANCE NO. 007, 2011, AUTHORIZ DATE: January 18, 2011
STAFF: Mike Freeman _
Keith Reester
First Reading of Ordinance No. 007, 2011, Authorizing the Appropriation of 2011 Fiscal Year Operating and Capital
Improvement Funds for the Fort Collins-Loveland Municipal Airport.
EXECUTIVE SUMMARY
The 2011 annual operating budget for the Airport totals$726,390, and will be funded from Airport operating revenues,
contributions from the Cities of Fort Collins and Loveland ($85,000 from each city), and interest earnings. This
Ordinance appropriates the City of Fort Collins'contribution,which is a 50%share of the 2011 Airport budget and totals
$363,195.
This Ordinance also appropriates the City of Fort Collins'50%share of capital funds,totaling$608,500 for the Airport
from federal and state grants; contributions from Fort Collins and Loveland; and the Airport General Fund. Most of
the 2011 Airport capital funds, totaling $1,217,000, will be used to continue runway improvements and some funds
are slated for utility master planning and design engineering to accommodate Airport business development.
BACKGROUND / DISCUSSION
In 1963, the City of Fort Collins and the City of Loveland agreed to the establishment of a regional aviation facility and
became owners and operators of the Fort Collins-Loveland Municipal Airport,located approximately 16 miles southeast
of downtown Fort Collins, just west of Interstate 25 on Earhart Road. The Airport is operated as a joint venture
Between the City of Fort Collins and the City of Loveland, with each city retaining a 50% ownership interest, sharing
equally in policy-making and management,and with each assuming responsibility for 50%of the capital and operating
costs associated with the Airport.
The Airport's mission is to provide a safe and efficient air transportation airport facility to the general public and aviation
community by providing airport facilities that meet Federal Aviation Administration (FAA) safety standards and to
implement a plan that ensures the efficient development of the Airport to meet the needs of the Fort Collins and
Loveland communities.
Airport revenues cover operating costs and capital projects. Each city contributes equal funding for airport operating
and capital costs. Airport development and improvement fundslare also received, for eligible projects, from the FAA
and the Colorado Department of Transportation, Division of Aeronautics.
The annual operating costs for 2011 for the Airport are$726,390,and the City of Fort Collins contribution is$363,195.
In addition, the Airport Manager is recommending additional capital expenditures and has identified the following
funding sources:
FAA Entitlement Grant $ 1,000,000
State Grant 108,600
Airport Revenues 108,500
Total $ 1,217,000
The additional capital expenditures will be to continue runway improvements and for utility master planning and design
engineering to accommodate airport business development,$1,217,000. Thus, the City of Fort Collins'appropriation
for the capital expenditures identified above is $608,500(50% of the total).
January 18, 2011 -2- ITEM 11
FINANCIAL / ECONOMIC IMPACTS
This Ordinance appropriates the City's 50% share($971,695)of the annual appropriation for fiscal year 2011 for Fort
Collins-Loveland Municipal Airport budget. The City of Loveland manages the Airport's budget and finances,however,
since the City of Fort Collins owns 50%of the Airport, it is necessary for the City to appropriate its 50% portion of the
Airport budget.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
ORDINANCE NO. 007, 2011
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE APPROPRIATION OF 2011 FISCAL YEAR
OPERATING AND CAPITAL IMPROVEMENT FUNDS FOR
THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT
WHEREAS, in 1963,the City of Fort Collins and the City of Loveland(the"Cities")agreed
to establish a regional general aviation facility and became owners and operators of the Fort Collins-
Loveland Municipal Airport (the "Airport"); and
WHEREAS, the Airport is operated as a joint venture between the Cities, with each city
retaining a 50% ownership interest, sharing equally in policy-making and management, and
assuming responsibility for 50%of the capital and operating costs associated with the Airport; and
WHEREAS,in accordance with the Intergovernmental Agreement,dated May 16,2000,(the
"IGA")between the Cities for the joint operation of the Airport,the Airport Manager is responsible
for preparing the Airport's Annual Operating Budget and submitting it to the Cities for their
approval; and
WHEREAS, the Airport Manager has submitted a 2011 Airport Operating Budget totaling
$726,390 and the City's share is $363,195; and
WHEREAS, it is the desire of the City Council to appropriate the necessary funds for
operating costs of the Airport,totaling$363,195, for the fiscal year beginning January 1, 2011, and
ending December 31, 2011; and
WHEREAS,the Airport Manager recommends the following capital improvements for 2011,
totaling $1,217,000, that are not included in the 2011 Airport Operating Budget:
Taxiway Improvements and utility master planning and
design engineering $ 1,217,000;
and
WHEREAS, funding for the 2011 capital improvements has been identified as follows:
FAA Entitlement Grants $ 1,000,000
State Grant 108,500
Airport Revenues 108,500
Total $ 1,217,000;
and
WHEREAS, the City's 50% share of the 2011 capital improvement costs is $608,500; and
WHEREAS, under the IGA, the City's share of existing and unanticipated Airport revenue
will be held and disbursed by the City of Loveland as an agent on behalf of the Cities since the City
of Loveland provides finance and accounting services for the Airport; and
WHEREAS, in accordance with Article V, Section 8(b), of the City Charter, any expense
or liability entered into by an agent of the City, on behalf of the City, shall not be made unless an
appropriation therefor shall have been made by the City Council.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby adopts the 2011 Airport Operating Budget and
authorizes the appropriation of THREE HUNDRED SIXTY-THREE THOUSAND ONE
HUNDRED NINETY-FIVE DOLLARS ($363,195) to be expended to defray the operating costs
of the Fort Collins-Loveland Municipal Airport.
Section 2. That the City Council hereby authorizes the appropriation of SIX HUNDRED
EIGHT THOUSAND FIVE HUNDRED DOLLARS ($608,500) to be used for 2011 capital
improvements at the Fort Collins-Loveland Municipal Airport.
Introduced, considered favorably on first reading, and ordered published this 18th day of
January, A.D. 2011, and to be presented for final passage on the 1st day of February, A.D. 2011.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 1 st day of February, A.D. 2011.
Mayor
ATTEST:
City Clerk