HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/19/2002 - SECOND READING OF ORDINANCE NO. 169, 2002, BEING T AGENDA ITEM SUMMARY ITEM NUMBER: 37
DATE: November 19, 2002
FORT COLLINS CITY COUNCIL FROM:
John Fischbach
SUBJECT :
Second Reading of Ordinance No. 169, 2002, Being the Annual Appropriation Ordinance
Relating to the Annual Appropriations for the Fiscal Year 2003; Amending the Budget for the
Fiscal Year Beginning January 1, 2003, and Ending December 31, 2003; and Fixing the Mill
Levy for Fiscal Year 2003.
RECOMMENDATION:
Staff recommends adoption of this Ordinance on Second Reading.
EXECUTIVE SUMMARY:
I
This Ordinance, which was unanimously adopted on First Reading on November 5, 2002,
amends the adopted 2003 Budget and sets the amount of $440,450,720 to be appropriated for
fiscal year 2003. The Net City Budget, which excludes internal transfers between City funds is
$291,121,960 for 2003. This Ordinance also sets the 2003 City mill levy at 9.797 mills,
unchanged since 1991.
i
S
ORDINANCE NO. 169, 2002
OF THE COUNCIL OF THE CITY OF FORT COLLINS
BEING THE ANNUAL APPROPRIATION ORDINANCE
RELATING TO THE ANNUAL APPROPRIATIONS
FOR THE FISCAL YEAR 2003; AMENDING THE BUDGET FOR
THE FISCAL YEAR BEGINNING JANUARY 1, 2003, AND ENDING
DECEMBER 31, 2003; AND FIXING THE MILL LEVY FOR FISCAL YEAR 2003
WHEREAS,on November 20,2001,the City Council adopted on second reading Ordinance
No. 197,2001,thereby approving a biennial budget for the years beginning on January 1,2002,and
January 1, 2003; and
WHEREAS, the City Manager has submitted to the Council proposed amendments to the
2003 budget adopted by the Council in Ordinance No. 197, 2001; 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 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 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 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 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 Council has reviewed the City Manager's recommended changes to
the"2003 Proposed Appropriations"section of the Fort Collins 2002 and 2003 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 said changes as follows:
2003 Proposed Appropriations
Amount of
Existing Adiustments As Amended
GENERALFUND $96,155,480 (3,319,314) $ 92,836,166
ENTERPRISE FUNDS
Golf $ 2,417,498 $ 2,417,498
Light & Power 78,946,166 78,946,166
Storm Drainage Operating 7,951,636 943,488 8,895,124
Capital:
Basin Master Planning 230,000 230,000
Developer Repays 250,000 (250,000) 0
Flood Mapping &Precip/Stream 50,000 50,000
Fossil Creek Basin Improvements 0 250,000 250,000
Total Storm Drainage 8,481,636 943,488 9,425,124
Wastewater Operating 18,076,690 18,076,690
Capital:
CR 9 Relief Sewer 60,000 60,000
Pollution Control Lab 250,000 250,000
Treatment Plant Improvements 885,000 885,000
Total Wastewater 19,271,690 0 19,271,690
Water Operating 26,408,347 26,408,347
Capital:
Gravel Pit Storage Ponds 3,300,000 3,300,000
Halligan Reservoir Expansion 400,000 400,000
Master Plan Facilities 0 1,600,000 1,600,000
Meter Conversion Program 2,015,000 2,015,000
Poudre Pipeline Improvements 900,000 900,000
Southwest System Improvements 180,000 180,000
Treatment Facility Improvements 225,000 225,000
Water Supply Development 100,000 100,000
Total Water 33,528,347 1,600,000 35,128347
TOTAL ENTERPRISE FUNDS $142,645,337 $2,543,488 $145,188,825
2
INTERNAL SERVICE FUNDS
Benefits $ 12,455,202 $ 12,455,202
Communications 1,578,002 1,578,002
Equipment 7,332,096 7,332,096
Self Insurance 2,918,530 1,000,000 3,918,530
Utility Customer Service&Administration 12,025,947 (1,925) 12,024,022
TOTAL INTERNAL SERVICE FUNDS $ 36,309,777 998,075 $ 37307,852
SPECIAL REVENUE & DEBT SERVICE FUNDS
Capital Leasing Corporation $ 1,630,065 $ 1,630,065
Cemeteries 662,531 (6,165) 656,366
Cultural Services &Facilities 3,748,703 (67,807) 3,680,896
Debt Service 2,996,394 2,996,394
Flood Recovery 0 1,500,000 1,500,000
General Employees'Retirement 1,989,000 1,989,000
Open Lands 3,420,401 3,420,401
Perpetual Care 77,682 77,682
Recreation 7,575,874 142,983 7,718,857
Sales & Use Tax 79,933,129 (4,395,677) 75,537,452
Special Assessments Debt Service 3,817,300 1,097,609 4,914,909
Street Oversizing 4,662,197 (26,950) 4,635,247
Transit Services 10,375,725 (131,602) 10,244,123
Transportation Services 19,482,213 (1,363,715) 18,118,498
TOTAL SPECIAL REVENUE &DEBT
SERVICE FUNDS $ 140371,214 ($ 3,251,324) $137,119,890
CAPITAL IMPROVEMENT FUNDS
General City Capital
Minor Street Capital $ 229,751 (11,258) $ 218,493
Pedestrian Accessibility 410,944 (19,156) 391,788
Major Building Maintenance 2,041,536 (2,041,536) 0
Facilities MR&R Capital 0 640,500 640,500
CSU Transit Center 2,500,000 2,500,000
Block 31 Maintenance 30317 0 30,317
Total General City Capital $ 5,212,548 ($ 1,431,450) $ 3,781,098
3
1/4 Cent Community Enhancements
Administration $ 55,650 $ 55,650
Library Technology 1,101,042 1,101,042
Prospect, Poudre River to Summit View 3,893,930 3,893.930
Total 1/4 Cent Community Enhancements $ 5,050,622 $ 0 $ 5,050,622
1/4 Cent Natural Areas and Parks
Administration $ 66,528 $ 66,528
Natural Area 3,500,000 3,500,000
Community Park Improvements 107,419 107,419
Community Horticulture Center 0 50,000 50,000
Regional Trails 1,678,418 1,678,418
Total 1/4 Cent Natural Areas and Parks $ 5.352.365 $ 50,000 $ 5,402,365
1/4 Cent Streets and Transportation
Administration $ 75,931 $ 75,931
Pavement Management Program 7,041,701 (72,372) 6,969,329
Pedestrian Plan 342,857 342,857
Mason Street Transportation Corridor 1,074,188 1,074,188
North College Corridor 2,016,854 2,016,854
Total 1/4 Cent Streets and Transportation $ 10,551,531 ($72.372) $ 10,479,159
Capital Improvement Expansion Fund $ 142,577 $ 142,577
Total Capital Improvement Expansion Fund $ 142,577 $ 0 $ 142,577
Conservation Trust Fund
Administration $ 294,476 $ 294,476
Fossil Creek Trail 375,000 375,000
Open Space Acquisition 20,000 20,000
Open Space &Trails Maintenance 63,781 63,781
Trail Acquisition,Development&Repair 350,000 350,000
Tri-City Trails 50,000 50,000
Total Conservation Trust Fund $ 1,153,257 0 $ 1,153,257
Neighborhood Parkland Fund
Administration $ 293,909 $ 293,909
Dry Creek Park 50,000 50,000
Homestead Park 130,000 130,000
Iron Horse Park 300,000 300,000
New Park Site Acquisition 300,000 300,000
New Park Site Development 300,000 300,000
4
Park Site Equipment 15,000 15,000
Provincetowne Park 300,000 300,000
. Registry Ridge Park 100,000 100,000
Richards Lake Park 100,000 100,000
Stewart Case Park 50,000 50,000
Water Glen Park 50,000 50,000
Total Neighborhood Parkland Fund $ 1 .988,909 0 $ 1,988,909
TOTAL CITY FUNDS $ 444,933,617 $ (4,482,897) $ 440,450,720
Section 2. Appropriations. That there be, and hereby is, appropriated out of the revenues of
the City of Fort Collins,for the fiscal year beginning January 1,2003,and ending December 31,2003,
the sum of FOUR HUNDRED FORTY MILLION FOUR HUNDRED FIFTY THOUSAND SEVEN
HUNDRED TWENTY DOLLARS($440,450,720)to be raised by taxation and otherwise,which sum
is deemed by the Council to be necessary to defray all expenditures of the City during said budget
year, to be divided and appropriated for the following purposes, shown in Section 1 above.
Section 3. Mill Levy.
a. That the 2003 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 31,2002, 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. 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 5th day of
November,A.D.2002,and to be presented for final passage on the 19th day of November,A.D.2002.
Mayor
ATTEST:
�u �b -�l
City Clerk
5
Passed and adopted on final reading this 19th day of November, A.D. 2002.
Mayor
ATTEST:
City Clerk
6
AGENDA ITEM SUMMARY ITEM NUMBER: 34
FORT COLLINS CITY COUNCIL DATE: November 5, 2002
STAFF: John Fischbach
SUBJECT:
First Reading of Ordinance No. 169, 2002, Being the Annual Appropriation Ordinance Relating
to the Annual Appropriations for the Fiscal.Year 2003; Amending the Budget for the Fiscal Year
Beginning January 1, 2003, and Ending December 31, 2003; and Fixing the Mill Levy for Fiscal
Year 2003.
RECOMMENDATION:
Staff recommends adoption o is Ordi0Fnj—tRe;adinj_
FINANCIAL IMPACT:
This Ordinance amends the City Budget for fiscal year 2003 and represents the annual
appropriation for fiscal year 2003 in the amount of $440,450,720, and sets the City mill levy at
9.797 mills, unchanged since COP
u,
EXECUTIVE SUMMARY:
This Ordinance amends the adopted 2003 Budget and sets the amount of $440,450,720 to be
appropriated for fiscal year 2003. The Net Ci Bud et, which excludes internal transfers
between City funds is $291 YNCity Budget, as amended, is
allocated to:
9 2 e
opted Amended
2003 2003
Operations $250,654,623 $248,551,848
Debt Service $ 4,626,459 $ 4,626,459
Capital $ 37,797,475 $ 37,943,653
This Ordinance also sets the 2003 City mill levy at 9.797 mills, unchanged since 1991.
November !), 34
DATE: ITEM NUMBER:
BACKGROUND:
City Council is required by the State of Colorado and the City Charter to adopt an Annual
Appropriation Ordinance to defray expenses budgeted for the ensuing year. Council adopted the
2002 and 2003 Biennial Budget and appropriated monies for expenditure for fiscal year 2002.
Because the City adopts a two-year budget plan, it is prudent to review the second year (2003) of
the adopted plan and, if necessary, amend the 2003 budget prior to adoption of the 2003 Annual
Appropriation Ordinance.
The 2003 exception process to amend the 2003 budget is quite different than in past exception
years. Revenue collections ar i ve projections have also been
adjusted downward from the 03 bu t as o i 11 do As a result, the adopted budget
for 2003 must be amended to count f the 1 e rolected enues.
2003 Revenue Projections:
When the 2002-2003 Biennial Budget was prepared, revenues were projected for 18 to 30
months ahead of the completion of the budget. The 2002-2003 Biennial Budget was adopted in
November 2000. Since that time, the September 11, 2001, terrorist attack and the recessed
economy have had a major impact on revenue collections.
The City's revenue projections f 003 h be duc ri 'ly because of: (a) a shortfall
of revenue in 2002 which me s a to ase i in 2 ) revised (reduced) projections
for Colorado Disposable Inc a upon hich ax p ctions are based; and (c) revised
(reduced) numbers for other re ue es.
Given the revised revenue projections for 2003, the General Fund budget for ongoing
expenditures/services must be cut back from the adopted 2003 budget by a total of$4.4 million.
ADOPTED ONGOING GENERAL FUND
BUDGET FOR 2003 ............................................$ 91,133,033
REDUCE ONGOING
BUDGET FOR 2003 Y<4400000>. .
REVISED ONGOING D
BUDGET FOR 2003 ........................................... $ 86,733,033
GENERAL FUND REDUCTIONS AND REALLOCATIONS
In considering the reductions and reallocations for the 2003 budget, the following criteria were
used:
a. If possible, avoid major service reductions to our citizens.
b. Relatedly, services are carried out by people. To the degree possible, maintain service
levels and avoid employee layoffs.
c. Primary Services remain a priority.
DATE: ovem er 74UO2 ITEM NUMBER: 34
Again, based upon the latest revenue projections, General Fund revenues will be $4.4 million
short of original projections. In other words, $4.4 million of ongoing expenditures/services must
be reduced from the 2003 budget originally adopted.
The City Manager's recommendation to the City Council achieves this reduction by:
• Reducing expenditures in the amount of$2,550,000; and
• Delaying expenditures for the annual Labor Market Adjustment (LMA) for an anticipated
savings of$1,850,000.
The challenge has been to red e s TaCity
a high quality of service to
citizens. Concerns have als een r i d re d' i staff, as quality service
comes from quality employee
IL Jr
Recommended reductions include items that won't be immediately visible to the public.
Equipment purchase delays, building repair and replacement, conferences and educational
programs, updates in software and hardware aren't visible cuts. Other reductions are more
visible, such as reducing customer access, cutbacks in hourly and seasonal employees, plantings
and maintenance of public spaces.
To some members of the public these reductions appear to be "no big deal" because they don't
see or experience any reduction ' ervic O ime ese ductions do affect the City's
ability to provide good servic he ct is a rb d t fact that for five out of the last
seven years no increases A-been lowe o -pers al service expenses (e.g. office
supplies, equipment, trainintw sol lity costs f operate buildings). Department
operating budgets have been forced to absorb the inflationary increases in the cost of these items.
It is a hidden erosion of the City's ability to provide quality service.
There are some visible impacts from reductions. A good example is the Affordable Housing
Competitive Process program. Budget cuts in the program could result in lost or delayed
opportunities to stimulate the production of 45 new "for sale" and rental units. It should be
noted, however, that the Affordable Housing Competitive Fund had an ending balance of
$1,025,970 in 2001..
A significant share of the red tio;to ance r ud ill be the result of delaying the
planned Labor Market Adjus enA) t oyee co ensation. By delaying the LMA
for several months (and perhapti cal r) $1.8 'Ilion will be trimmed from the
budget. The impact is not painless. Employees will be forced to adjust their personal budgets to
cover the increased costs of daily life without an increase in pay. It also erodes the City's ability
to recruit and retain the best employees to serve the public. City workers, however, are not
alone. Employees in many sectors of our economy are facing a pinch in wages or more seriously
the loss of their jobs.
The City Manager has been able to mitigate the affect of budget reductions in at least one area.
He is recommending that the Transportation operation cuts of $368,769 be off-set by $249,186
in "TABOR Overage" revenue that was collected in 2001 as further explained later in this
Agenda Item Summary.
ovem er 34
DATE: ITEM NUMBER:
Summary of the Reductions (Details of Reductions are Outlined in Attachment A)
Ongoing expenditures in every service area, except for Police, that are entirely or partially
supported by General Fund resources have been reduced for 2003. In general, the reductions are
as follows:
PRIMARY SERVICES
Reduction in 2003
a. Transportation $ 368,769
b. Police -0-
c. Community Planning and E e vi 2 83
d. PFA Contract 434
Impacts_
• Reduce local share to the MPO
• Reduce dust control and repaving (for unpaved roads and alleys)
• Reduce street repair and rehabilitation (3 blocks)
• Delay in construction of 15 handicap accessible ramps
• Delay in some bridge repairs, railroad crossing upgrades, left turn lanes
• Delay in repairs to the Transfort building
• Delay in vehicle replacement
• Delay potential productio f 45 for e' n r al nits
• Delay the opening (three t six men s) of atio 14
[Note: Impacts to the transportation reductions will be minimized by using the TABOR overage
of $249,168 to reverse some of the impacts listed above; however, TABOR overage is a one-
time resource and these impacts are ongoing needs.]
SECONDARY SERVICES
Reduction in 2003
a. Cultural, Library and Recreation Services $ 488,068
Impact:
• Reduce funding for Boys Girl ub; s t ajority of nding to one-time dollars
• Reduce maintenance, repa nd r ce in pa forestry, Horticulture Center.
cemeteries
• Reduce Lincoln Center Box Office hours
• Library: longer lines to check out materials and pay fines; less time to spend with each
customer needing assistance
• Delay implementation of the automated Telephone Notification System at the libraries
• Reduce funding for the summer youth employment program
• Recreation: realignment of schedules and some reduced hours at the Senior Center and
Youth Activity Center
November 34
DATE: ITEM NUMBER:
SUPPORT SERVICES
Reduction in 2003
a. Executive, Legislative, Judicial $ 172,645
b. Administrative Services 389,445
c. Communication and Technology 159,121
d. Utility Services 1,925
e. Non-departmental 52,010
Impact:
• Reduce City Council meCts
f
• Delay equipment replace put a o ce meat
Drop some memberships tive v ments)
Restructure the Volunteeti old re n only)
• Reduce the Multicultural Community retreats to one per year
• Reduce the number of neighborhood cleanups paid for by the City
• Reduce outside legal services and conferences and training for attorneys
• Defer repairs to City buildings and facilities
• Reduce some of the custodial services from daily to weekly cleaning
• Scale back the ability to do short tetra contracts (research on policy questions) related to City
Council's Policy Agenda
• Delay the implementation of' r a0ent
' Pement
ysm
• Eliminate 24 h( it day awe k —calls for support will be
deferred to the next busin%Le
• Slow the implementation hroughout the organization
• Drop the "Sampler Tour"
• Delay replacement and upgrades of telecommunication hardware and software
TOTAL OPERATING REDUCTIONS ......................................... $2,550,000
Reoroerammina of One-Time Resources
In addition to the recommended reductions in operating (ongoing) expenditures, the City
Manager has also proposed ro n o one me monies. In general, his
recommendation is to take a-time onies h be armarked for the Development
Review Center ($300,000 inV3) d r L king for ffordable Housing ($200,000 out
of $500,000 in 2003) and reor sig some cling initiatives, the Boys and
Girls Club, computer equipment and licenses, cable programs, and an audit.
A more detailed outline of the specific reductions for ongoing expenditures and reprogramming
of one-time expenditures can be found in Attachment B.
OTHER 2003 CITY BUDGET EXCEPTIONS (details are found in Attachment C)
The City Manager is recommending some adjustments or additions to the 2003 adopted budget.
These adjustments fall into four categories:
lNo
vem er ITEM NU 4
DATE: MBER:
��— — • Non-General Fund Adjustments
• Savings Incentive Reserve Adjustments (Prior Years' Balance)
• Housekeeping Adjustments
• 2001 Revenue Retention (TABOR Overage)
i
Category Ongoing One-Time
Non-General Fund Adjustments I ] $1,167,988 $1,803,970
Savings Incentive Reserve Adjustments -0- $104,500
Housekeeping Adjustments ($1,105,106)
2001 Revenue Retention 0,
erag 0- $1,249,186
Non-General Fund Adjustment
I
I
Adjustment Onizoing One-Time
1. YAC Gym Construction & Other Costs -0- $104,000
2. Second Ice Arena-Epic $210,000 -0-
3. Softball Program $5,000 -0-
f 4. Boat Program on Sheldon Lake $9,500 -0-
5. Donations for Horticulture Center -0- $50,000
6. Building Maintenance for Txaffic $49,970
Operations Facility
7. Debt Payments on 200 onds 0-
8. Master Plan Facilities-P an P,488
$1,600,000
I
TOTAL $1,167,988 $1,803,970
Savings Incentive Reserve Adjustments (Prior Years' Balance)
Adjustment Ongoing One-Time
9. City Plan Update -0- $35,000
10. Auto Phone Answering System -0- $2,500
11. Seasonal Landscape in cto $5,000
12. Computer Equipment place"en
$7,000
13. Council Policy Agend nd E0- $35,000
Issues
14. Furniture and Equipment Purchase -0- $20,000
I
TOTAL -0- $104,500
I
Housekeeping Adjustments
Adjustment Ongoing One-Time
15. Misc. Revenues/Work for Others -0- $77,000
16. Eliminate Transportation Appropriations -0- ($1,432,106)
for Transportation Demand Management
17. Developer Repays to Fossil Creek Basin -0- $250,000
Project
I
DATE: ITEM NUMBER: 34
18. Latimer County Treasurer's Fee $270,000 -0-
19. Restore Program & Municipal Court $80,000 -0-
Bonds
TOTAL $350,000 ($1,105,106)
Revenue Retention (TABOR Overage)
In November 1997, Fort Collins' voters approved a ballot measure that allows the City to retain
revenues that exceed the imposed growth limit specified by the State Constitution. The measure
was effective for revenues fro a i B e roved measure also specified
that any retained revenue ove a gro limit u be a ertain designated purposes:
• Public health and safet ud t limite environmental monitoring and
mitigation)
• Transportation
• Growth management
• Maintenance and repair of public facilities
In 2001, revenue exceeded the growth limit by $1,249,186 in General Fund revenues. This
amount is held in fund reserves and can be used for one-time purposes. Staff is recommending
that $1,000,000 of the $1,249 eoporta
pntions
po ion Capital as agreed to by
Council as part of the Trans rtati P is also recommended that the
remaining $249,186 be alloca d for tra 2003.
ATTACHMENTS:
Attachment A: Ongoing General Fund Reductions for 2003
Attachment B: One-Time Reprogramming for 2003
Attachment C: Other Exceptions to the 2003 Adopted Budget