HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/16/2012 - FIRST READING OF ORDINANCE NO. 116, 2012, AUTHORIZITEM WITHDRAWN FROM
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DATE: October 16, 2012
STAFF: Jason Licon
Mike Beckstead
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 23
SUBJECT
First Reading of Ordinance No. 116, 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 $803,600, 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 2013 Airport budget and totals $401,800.
This Ordinance also appropriates the City’s 50% share of capital funds, totaling $702,500 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 $1,405,000, 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 $803,600, and the City of Fort Collins contribution is $401,800.
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 305,000
Airport Revenues 100,000
Total $1,405,000
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, $1,405,000. Thus, the City
of Fort Collins appropriation for the capital expenditures identified above is $702,500 (50% of the total).
FINANCIAL / ECONOMIC IMPACTS
This Ordinance appropriates the City’s 50% share ($1,104,300) 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,
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October 16, 2012 -2- ITEM 23
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
10/11/2012
1
Fort Collins City Council Meeting
October 16, 2012
Airport Budget
• The proposed 2013 budget is $803,600
– $435,890 is total for personnel cost for 5.5 FTE
– $36,700 for supplies
• Office, computer, fuel, paint, electrical, landscaping,
safety, building, etc.
– $331,010 for purchased services
• Utilities, support services, training, meetings,
insurance, vehicle maintenance, assessments, postage,
etc.
ATTACHMENT 1
10/11/2012
2
Historical Airport Operational Expenses
Airport Operational Expenses
• Expenses have increased due to airport
growth and regulatory requirements
• Regulations regarding airport safety and
security have become more burdensome
requiring additional staffing and funding
• Allegiant’s decision will have little effect on
required regulatory compliance
10/11/2012
3
Projected Budgetary Shortfall For 2013
• Commercial air service revenues account for 37% of
airport operational revenues
• This amounts to $295,000 annually for daily
operational income
• Another $185,000 in passenger facilities charges (PFC)
will be lost until the gap is filled
– PFC funding helps pay for local matches on Federal and
State grants as well as local projects
– PFC funds are use restricted similar to Federal and State
Grants, therefore are classified as capital expenditures
– Grant match is estimated at $100,000 in 2013 and $50,000
in 2014
Revenue Breakdown
2014
Account Description
Budgeted
Amount
Revenue
Reduction
Impact
Without
Commercial
Air Service in
2013
Without
Commercial
Air Service
in 2014
Interest On Investments 17,900.00 - - -
Gain/Loss On Investments - - - -
PFC Interest On Investments - - - -
PFC Gain/Loss On Investments - - - -
Miscellaneous 1,500.00 - 1,500.00 1,500.00
Cash Over/Short - - - -
Bad Debt Collections - - - -
Bad Debt Writeoff - - - -
Contributions - - - -
Airport Commissions 3,000.00 - 3,000.00 3,000.00
ARFF Standby Fees 13,400.00 13,400.00 - -
ID Badges 1,800.00 - 1,800.00 1,800.00
Contribution - Loveland 85,000.00 - 85,000.00 85,000.00
Contribution - Fort Collins 85,000.00 - 85,000.00 85,000.00
Terminal 500.00 - 500.00 500.00
Fbo Rent 57,000.00 - 57,000.00 57,000.00
Gas & Oil Commissions 135,000.00 28,670.00 106,330.00 106,330.00
T-Hanger Rental 90,000.00 - 90,000.00 90,000.00
Land Lease 125,000.00 - 125,000.00 125,000.00
Parking 200,000.00 200,000.00 - -
State Aircraft Fuel Tax 50,000.00 - 50,000.00 50,000.00
Landing Fees 28,000.00 28,000.00 - -
Terminal Lease 25,000.00 25,000.00 - -
Passenger Facility Charge 185,000.00 185,000.00 - -
Contribution - FAA 1,000,000.00 - 1,000,000.00 150,000.00
Contribution - State Of CO 400,000.00 - 400,000.00 400,000.00
2,503,100.00 480,070.00 2,005,130.00 1,155,130.00
2013
10/11/2012
4
Year
FAA Grant #
(date)
FAA Amount
Granted
State Grant
#
State Match
Amount
Granted
Additional
State
Granted
Airport Match
FAA Expense
(PFC Funds Used)
Airport Match
State
Expense
Airport Actual
Operating
Budget
Cities
Contribution to
Operations
PFC Collected ‐
Actual*
Non PFC Revenue
Airline Related*
2003 AIP18 (2003‐2005) $ 200,055.00 03‐18‐12/9 $ 7,555.00 $ 12,000.00 $ 11,114.00 $ 3,000.00 $ 1,006,217.82 $ 120,000.00 $ 11.68
2004 04‐13‐13/10 $ 17,013.00 $ 8,710.00 $ ‐ $ 2,177.00 $ 1,134,374.62 $ 120,000.00 $ 22,956.78 $ 176,964.22
2005 AIP19 (2005) $ 1,150,000.00 05‐14‐14/11 $ 30,263.00 $ 31,500.00 $ ‐ $ 7,875.00 $ 1,180,045.97 $ 120,000.00 $ 147,780.57 $ 191,701.43
2006 AIP20 (2006) $ 4,700,000.00 06‐12‐15/12 $ 121,776.00 $ 128,183.00 $ 121,776.00 $ 37,045.00 $ 1,208,678.14 $ 120,000.00 $ 145,374.85 $ 176,350.15
2007 AIP21 (2007) $ 1,000,000.00 07‐18‐16/3 $ 26,316.00 $ 223,684.00 $ 26,316.00 $ 55,921.00 $ 1,225,915.43 $ 120,000.00 $ 96,316.60 $ 186,238.40
2008 AIP22 (2008) $ 741,606.00 08‐FNL‐01 $ 19,501.00 $ 127,600.00 $ 19,501.00 $ 31,900.00 $ 1,757,442.31 $ 170,000.00 $ 135,649.90 $ 177,250.10
AIP23 (2008) $ 258,394.00 08‐FNL‐01 $ 6,799.00 $ ‐ $ 6,799.00 $ ‐ $ ‐ $ ‐ $ ‐
08‐FNL‐02 $ 131,500.00 $ 32,875.00
2009 AIP24 & 25 (2009) $ 1,000,000.00 09‐FNL‐01 $ 26,316.00 $ 223,684.00 $ 26,316.00 $ 55,921.00 $ 1,667,181.28 $ 170,000.00 $ 139,255.19 $ 191,676.00
AIP26 ARRA (2009 $ 549,000.00
2010 AIP27 & 28 (2010) $ 1,000,000.00 10‐FNL‐01 $ 26,316.00 $ 221,731.00 $ 26,316.00 $ 55,432.00 $ 774,300.09 $ 170,000.00 $ 139,518.59 $ 256,517.41
10‐FNL‐I10 $ 14,650.00 $ 14,650.00
2011 AIP29 $ 6,661,218.00 11‐FNL‐01 $ 175,295.00 $ 224,705.00 $ 299,295.00 $ 44,444.00 $ 740,210.00 $ 170,000.00 $ 180,000.00 $ 267,612.41
Sub‐Totals $ 17,260,273.00 $ 457,150.00 $ 1,347,947.00 $ 537,433.00 $ 341,240.00 $ 10,694,365.66 $ 1,280,000.00 $ 1,006,864.16 $ 1,624,310.12
Capital Expenditures 2003‐2011 % Operating Expenditures 2003‐2011 %
Total FAA $17,260,273.00 86.5% Airport Generated $9,414,365.66 88.1%
Total CDOT $1,805,097.00 9.1% Cities Contributions $1,280,000.00 11.9%
Total PFC $537,433.00 2.7%
Total Cities $341,240.00 1.7% TOTAL AIRPORT OPERATING $10,694,365.66 100.0%
TOTAL $19,944,043.00 100%
TOTAL ALL EXPENDITURES 2003‐2011 % 2003 10,307
FAA $ 17,260,273.00 56.3% 2004 31,928
CDOT $ 1,805,097.00 5.9% 2005 34,669
PFC $ 537,433.00 1.8% 2006 32,847
OWNER CAPTIAL $ 341,240.00 1.1% 2007 28,315
NON OWNER OPERATING $ 9,414,365.66 30.7% 2008 31,094
OWNER OPERATING (NON AIRPORT FUNDS) $ 1,280,000.00 4.2% 2009 31,079
2010 35,671
TOTAL AIRPORT EXPENDITURES $ 30,638,408.66 100% 2011 44,999
ORDINANCE NO. 116, 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 $803,600 and the City’s share is $401,800; 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
$401,800, 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 $1,405,000, that are not included in the 2012 Airport operating budget:
Taxiway Improvements and Utility Master
Planning and Design Engineering $1,405,000
WHEREAS, funding for the 2013 capital improvements has been identified as follows:
FAA Entitlement Grants $ 1,000,000
State Grant 305,000
Airport Revenues 100,000
Total $ 1,405,000
WHEREAS, the City’s 50% share of the 2013 capital improvement costs is $702,500; 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 2013 Airport operating budget.
Section 2. That the City Council hereby authorizes the appropriation of FOUR
HUNDRED ONE THOUSAND EIGHT HUNDRED DOLLARS ($401,800) 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 SEVEN
HUNDRED TWO THOUSAND FIVE HUNDRED DOLLARS ($702,500) to be used for 2013
capital improvements at the Fort Collins-Loveland Municipal Airport.
Introduced, considered favorably on first reading, and ordered published this 16th day of
October, A.D. 2012, and to be presented for final passage on the 6th day of November, A.D. 2012.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 6th day of November, A.D. 2012.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Total 280,909
* Passenger Facility Charges Collected ‐ $4.50/passenger
** Non PFC Airline Revenue: Parking, Terminal Use Fees, Guaranteed Fuel Purchases, ARRF Fees, Terminal Concessionaire Rent
Passenger Enplanements
Fort Collins ‐ Loveland Airport 2003‐2011 Total Expenditures & Funding Source Analysis
CAPITALOPERATINGCHARGES PASSENGER FACILITY
Planned Actions
• The airport over the next quarter will be looking for ways to
reduce expenses
• Air service development has taken a priority, and total cost
is yet to be determined
– Is key to financial sustainability as outlined in the adopted
airport business plan
– The airport will utilize the Small Community Air Service
Development Grant to fund a significant portion of air service
development costs
– Without commercial service, total airport revenues will fall to
46% or $1.15 million by 2014 from $2.5 million
• Plan to return to council with a proposal after financial
review is complete and steps are taken to cut costs where
able