HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/18/2011 - FIRST READING OF ORDINANCE NO. 135, 2011, AUTHORIZDATE: October 18, 2011
STAFF: Mike Beckstead
Jason Licon
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 15
SUBJECT
First Reading of Ordinance No. 135, 2011, Authorizing the Appropriation of 2012 Fiscal Year Operating and Capital
Improvement Funds for the Fort Collins-Loveland Municipal Airport.
EXECUTIVE SUMMARY
The 2012 annual operating budget for the Airport totals $779,550, 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 authorizes the City of Loveland to appropriate the City of Fort Collins contribution, which is a 50% share
of the 2012 Airport budget and totals $389,775.
This Ordinance also appropriates the City’s 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 2012 Airport
capital funds, totaling $1,217,000, will be used to continue major Airport improvements such as taxiway and apron
rehabilitation 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 funds are also received, for eligible projects, from the FAA
and the Colorado Department of Transportation, Division of Aeronautics.
The annual operating costs for 2012 for the Airport are $779,550, and the City of Fort Collins contribution is $389,775.
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 108,500
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).
October 18, 2011 -2- ITEM15
FINANCIAL / ECONOMIC IMPACTS
This Ordinance appropriates the City’s 50% share ($998,275) 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. 135, 2011
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE APPROPRIATION OF 2012 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,
between the Cities for the joint operation of the Airport (the “IGA”), 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 for City Council consideration a 2012
Airport operating budget totaling $779,550 and the City’s share is $389,775; and
WHEREAS, it is the desire of the City Council to authorize the City of Loveland to
appropriate the City’s share of the necessary funds for operating costs of the Airport, totaling
$389,775, for the fiscal year beginning January 1, 2012, and ending December 31, 2012; and
WHEREAS, the Airport Manager recommends the following capital improvements for 2012,
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
WHEREAS, funding for the 2012 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
WHEREAS, the City’s 50% share of the 2012 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 2012 Airport operating budget.
Section 2. That the City Council hereby authorizes the appropriation of THREE
HUNDRED EIGHTY-NINE THOUSAND SEVEN HUNDRED SEVENTY-FIVE DOLLARS
($389,775) to be expended to defray the operating costs of the Fort Collins-Loveland Municipal
Airport.
Section 3. That the City Council hereby authorizes the appropriation of SIX HUNDRED
EIGHT THOUSAND FIVE HUNDRED DOLLARS ($608,500) to be used for 2012 capital
improvements at the Fort Collins-Loveland Municipal Airport.
Introduced, considered favorably on first reading, and ordered published this 18th day of
October, A.D. 2011, and to be presented for final passage on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 1st day of November, A.D. 2011.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk