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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/04/2012 - SECOND READING OF ORDINANCE NO. 137, 2012, AUTHORIDATE: December 4, 2012 STAFF: Jason Licon Mike Beckstead AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 12 SUBJECT Second Reading of Ordinance No. 137, 2012, Authorizing the Appropriation of 2013 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. EXECUTIVE SUMMARY The 2013 annual operating budget for the Airport totals $693,100, and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland ($177,500 from each City), and interest earnings. This amount for each city is $92,500 greater than the previous year contributions of $85,000. For the City of Fort Collins the original $85,000 is funded from General Fund ongoing revenue, while the one-time increase of $92,500 will be funded from General Fund reserves. This Ordinance, unanimously adopted on First Reading on November 20, 2012, authorizes the appropriation of the City of Fort Collins portion of the Airport’s annual operating budget in the amount of $346,550. This is 50% of the entire Airport annual operating budget of $693,100. This Ordinance also appropriates the City’s 50% share of capital funds, totaling $1,100,000 for the Airport from federal and state grants; contributions from Fort Collins and Loveland; and the Airport General Fund. Most of the 2013 Airport capital funds, totaling $2,200,000, will be used to complete 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. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - November 20, 2012 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: October 16, 2012 STAFF: Jason Licon Mike Beckstead AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 35 SUBJECT First Reading of Ordinance No. 137, 2012, Authorizing the Appropriation of 2013 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. EXECUTIVE SUMMARY The 2013 annual operating budget for the Airport totals $693,100, and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland ($177,500 from each City), and interest earnings. This amount for each city is $92,500 greater than the previous year contributions of $85,000. For the City of Fort Collins the original $85,000 is funded from General Fund ongoing revenue, while the one-time increase of $92,500 will be funded from General Fund reserves. This Ordinance authorizes the City of Loveland to appropriate the City of Fort Collins portion of the Airport’s annual operating budget in the amount of $346,550. This is 50% of the entire Airport annual operating budget of $693,100. This Ordinance also appropriates the City’s 50% share of capital funds, totaling $1,100,000 for the Airport from federal and state grants; contributions from Fort Collins and Loveland; and the Airport General Fund. Most of the 2013 Airport capital funds, totaling $2,200,000, will be used to complete 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 2013 for the Airport are $693,100, and the City of Fort Collins contribution is $346,550. 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 1,000,000 Airport Revenues 200,000 Total $2,200,000 The additional capital expenditures will be to continue aircraft parking apron phase two improvements and for utility master planning and design engineering to accommodate Airport business development, $2,200,000. Thus, the City of Fort Collins appropriation for the capital expenditures identified above is $1,100,000 (50% of the total). COPY COPY COPY COPY November 20, 2012 -2- ITEM 35 FINANCIAL / ECONOMIC IMPACTS This Ordinance appropriates the City’s 50% share ($1,446,558) of the annual appropriation for fiscal year 2013 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. ATTACHMENTS 1. Powerpoint presentation ORDINANCE NO. 137, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE APPROPRIATION OF 2013 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 2013 Airport operating budget totaling $693,100 and the City’s share is $346,550; 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 $346,550, for the fiscal year beginning January 1, 2013, and ending December 31, 2013; and WHEREAS, the Airport Manager recommends the following capital improvements for 2013, totaling $2,200,000, that are not included in the 2012 Airport operating budget: Taxiway Improvements and Utility Master Planning and Design Engineering $2,200,000 WHEREAS, funding for the 2013 capital improvements has been identified as follows: FAA Entitlement Grants $ 1,000,000 State Grant 1,000,000 Airport Revenues 200,000 Total $ 2,200,000 WHEREAS, the City’s 50% share of the 2013 capital improvement costs is $1,100,000; 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 2013 Airport operating budget. Section 2. That the City Council hereby authorizes the appropriation of THREE HUNDRED FORTY-SIX THOUSAND FIVE HUNDRED FIFTY DOLLARS ($346,550) 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 ONE MILLION ONE HUNDRED THOUSAND DOLLARS ($1,100,000) to be used for 2013 capital improvements at the Fort Collins-Loveland Municipal Airport. Introduced, considered favorably on first reading, and ordered published this 20th day of November, A.D. 2012, and to be presented for final passage on the 4th day of December, A.D. 2012. _________________________________ Mayor Pro Tem ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 4th day of December, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk