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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 10/16/2012 - FIRST READING OF ORDINANCE NO. 112, 2012, BEING THDATE: October 16, 2012 STAFF: Darin Atteberry Mike Beckstead AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 21 SUBJECT First Reading of Ordinance No. 112, 2012, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2013; Adopting the Budget for the Fiscal Years Beginning January 1, 2013, and Ending December 31, 2014; and Fixing the Mill Levy for the Fiscal Year 2013. EXECUTIVE SUMMARY The Annual Appropriation Ordinance is presented for First Reading. This Ordinance sets the City Budget for the two- year period (2013–14) which becomes the City’s financial plan for the next two fiscal years. This Ordinance sets the amount of $483,445,062 to be appropriated for fiscal year 2013. Including the 2013 adopted budgets for the General Improvement District (GID) No. 1 of $193,666 and the Urban Renewal Authority (URA) of $1,038,682 the total City operated appropriations amount to $484,677,410. This Ordinance also sets the 2012 City mill levy at 9.797 mills, unchanged since 1991. BACKGROUND / DISCUSSION For the fifth time the City has used a budgeting process called Budgeting for Outcomes (BFO). This process is a recommended best practice by the Government Finance Officers Association (GFOA). It is a systematic process driven by goals and performance, to provide information that relates budgeting to planning and results. Its purpose is to better align the services delivered by the City with the things that are most important to the community. The 2013-14 City Manager’s Recommended Budget was delivered to Council in August. The Recommended Budget strengthens key services related to transportation, police, fire, parks and recreation and other community priorities such as the environment, economic development and social sustainability, delivering on the commitment made to voters who approved the Keep Fort Collins Great sales tax increase in 2010. The budget also and makes smart, long-term investments in the future, with investments in the Poudre River, North College, and FortZED. City Council reviewed the Recommended Budget during four Council Work Sessions. In addition, citizens have been able to provide input to Councilmembers through two public hearings and an online feedback tool. From these discussions and additional information provided by staff, City Council has provided direction and guidance for changes to be incorporated into 1st reading of the 2013-14 Biennial Budget. The following table summarizes the Offers not originally included in the Recommended Budget. Note: GF = General Fund October 16, 2012 -2- ITEM 21 To fund these Offers requires a combination of funding sources. The first prudent place to evaluate is Offers that have a lower priority and, thus, should not be funded or can have their amounts reduced. The table below lists Offers that were eliminated or modified. The gap between Offers funded per Council direction and Offers eliminated or modified is addressed by other funding sources. As the table below indicates, the gap was addressed by utilizing funds available in the Sales and Use (S&U) Tax reserves, increasing the Sales Tax forecast from 2.20% and 2.05% to 2.70% and 2.55% for 2013 and 2014 respectively, increasing the Use Tax forecasts by $500K in each year of the budget, and utilizing General Fund reserves. Of the available $6.5M Sales and Use Tax reserve being transferred to the General Fund via the annual Clean-up Ordinance, only $700K has been used in this budget. The increase of both the Sales and Use Tax forecasts is based on the strong results we continue to see through the end of the third quarter of 2012 and the anticipation of slightly higher growth rates in 2013 and 2014. Lastly, the use of General Fund reserves comes from anticipated contribution to General Fund balance based upon actual 2012 revenue results greater than forecast. The combination of the above table results in the following summarized changes between the recommended budget and the amounts included in First Reading of the 2013-14 Biennial Budget. Additionally, in final preparation it was determined that the Benefits Programs and Services Offer was originally overstated and indicated a use of Benefit fund reserves greater than actually required. This has been recalculated and the significantly reduced expense is reflected in the summary table below. The $1.2 million will remain in the Benefits fund reserves and has no impact on services or other Offers. October 16, 2012 -3- ITEM 21 This annual Appropriation Ordinance sets the amount of $483,445,062 to be appropriated for fiscal year 2013. Including the 2013 adopted budgets for the General Improvement District (GID) No. 1 of $193,666 and the Urban Renewal Authority (URA) of $1,038,682 the total City operated appropriations amount to $484,677,410. Below is a summary of the proposed 2013-14 City budget: City Budget (in $ million) Adopted 2013 Adopted 2014 Operations $431.3 $440.4 Debt Service 21.2 20.5 Capital 32.2 27.6 Total City Operated Appropriations * $484.7 $488.5 Less Urban Renewal Authority (URA) (1.0) (1.8) Less General Improvement District (GID) (0.2) (0.2) Total City of Fort Collins Appropriation $483.5** $486.5 * This includes GID and URA which are appropriated in separate ordinances. ** Delta due to rounding to $K FINANCIAL / ECONOMIC IMPACTS This Ordinance sets the annual appropriation for fiscal year 2013 in the amount of 483,445,062. The Ordinance also sets the City mill levy at 9.797 mills, unchanged since 1991. ENVIRONMENTAL IMPACTS The Budget contains multiple offers that will have positive environmental impacts, particularly those funded by the Environmental Health Result Area. STAFF RECOMMENDATION Staff recommends adoption of the Budget on First Reading. PUBLIC OUTREACH In preparation for First Reading of the 2013-14 Budget, there were two public hearings, as well as an online tool whereby citizens could vote for the Offers for programs and services most important to them. The data from the online tool was presented to Council for their review. Additionally, during the budget development there was a citizen on each of the Result Teams and two public open houses were conducted to gain citizen input. ATTACHMENTS 1. Powerpoint presentation 1 1 Agenda Item # 21 City of Fort Collins 2013-2014 Biennial Budget October 16, 2012 Council Meeting 2 This budget moves the City from a mindset of austerity to investment ATTACHMENT 1 2 3 Keep Fort Collins Great has allowed us to strengthen our core services and improve customer service 4 With increased stability, we can now focus on our community’s future, new possibilities, and our obligation to the next generation 3 5 Even with these smart investments, we still have long-term needs and challenges, namely the expiration of major funding sources 6 Offers Funded per Council Direction Offers Funded per Council Direction 2013 Amount 2014 Amount Funding - Offer 50.5 Poudre School District After-Hours Program $ 66,894 $ 66,894 GF - Reductions & Sales Tax - Offer 6.8 KFCG: Support Arts Incubator of the Rockies 50,000 60,000 GF - Reductions & Sales Tax - Offer 9.7 Environmental Services Operations 37,000 37,000 GF - Reductions & Sales Tax - Offer 81.16 Park Rangers for City Parks and Trail 179,661 141,863 GF - Increased Sales Tax - Offer 236.1 Community Garden Outreach Program 112,961 53,925 GF - Increased Sales Tax - Offer 103.1 The Great Lawn (at $250K) 250,000 - GF - Increased Use Tax - Offer 107.4 Great Green Street / Reshaping Streets - 450,000 GF - Increased Use Tax - Offer 105.25 Mulberry Bridge Design 500,000 250,000 BCC & GF - Use Tax & ($65K) - Offer 101.2 COP Debt Refinancing Payments 403,000 391,000 GF - Reserves - Offer 105.26 I25 / 392 Signage 100,000 - GF - Reserves Total Offers Funded per Council Direction $516 1,699,$ 1,450,682 4 7 Eliminations and Modifications Eliminations and Modifications 2013 Amount 2014 Amount Funding Offers Unfunded per Council Direction - Offer 194.5 Learning Specailist $ (79,068) $ (84,176) General Fund - Offer 25.10 Workplace Safety Initiative Fund (100,000) (100,000) Self Insurance Fund - Reserves - Offer 68.3 Council Agenda Improvements (115,000) (15,000) General Fund Offers Reduced per Staff Recommendation - 111.1 Utilities Knowledge Transfer (100,000) (100,000) Utility Funds - Offer 194.2 Collaborative Leadership Development (56,080) (18,080) General Fund Total Eliminations and Modifications $ (450,148) $ (317,256) 8 Changes to Funding Assumptions Summary of Changes Changes to Funding Assumptions 2013 Amount 2014 Amount Notes - Reduce GF offers $ 250,148 $ 117,256 - Available BCC (Changed Integrated Recycling Facility) 448,000 237,000 Used General Fund Reserves - Increase Sales Tax forecast 272,000 272,000 0.5% increase in both years - Increase Use Tax forecast 500,000 500,000 Available for 1-Time Programs - General Funds Reserves 503,000 391,000 Total Changes to Funding Assumptions $000 1,723,$ 1,400,000 Summary of Changes 2013 Amount 2014 Amount Notes - Recommended Budget Total Appropriations $ 483,077,664 $ 490,389,409 - Offers Funded per Council Direction 1,699,516 1,450,682 - Eliminations and Modifications Subtotal (450,148) (317,256) - Recalculated Offer 196.1 Benefits Programs and Services (677,042) (1,383,838) No impact on funding - Shift of Offer 105.18 NRRC Overpass to 2013 1,200,000 (1,200,000) - Other miscellaneous changes (transfers, non GF COPs, etc.) (172,580) (402,204) Proposed Budget Total Appropriations $410 484,677,$ 488,536,793 5 9 2013-14 Biennial Budget • Balanced and fiscally prudent budget that addresses multiple community and Council priorities • Strengthens key services related to transportation, police, fire, parks & recreation • Enhances community priorities such as the environment, economic development and social sustainability • Continues the commitment made to voters who approved the Keep Fort Collins Great sales tax increase in 2010 • Includes smart, long-term investments in the future including the Poudre River, North College Avenue and FortZED ORDINANCE NO. 112, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2013; ADOPTING THE BUDGET FOR THE FISCAL YEARS BEGINNING JANUARY 1, 2013, AND ENDING DECEMBER 31, 2014; AND FIXING THE MILL LEVY FOR FISCAL YEAR 2013 WHEREAS, the City Manager has, prior to the first Monday in September, 2012, submitted to the City Council a proposed budget for the next ensuing budget term, along with an explanatory and complete financial plan for each fund of the City, pursuant to the provisions of Article V, Section 2, of the City Charter; and WHEREAS, within ten days after the filing of said budget estimate, the City Council set September 18th and October 2nd , 2012, as the dates for the public hearings thereon and caused notice of such public hearings to be given by publication pursuant to Article V, Section 3, of the City Charter; and WHEREAS, the public hearings were held on those dates and persons were given the opportunity to appear and object to any or all items and estimates in the proposed budget; and WHEREAS, Article V, Section 4, of the City Charter requires that, before the last day of November of each fiscal year, the City Council adopt the budget for the ensuing term by ordinance and appropriate such sums of money as the Council deems necessary to defray all expenditures of the City during the ensuing fiscal year; and WHEREAS, Article V, Section 5, of the City 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; and WHEREAS, Article XII, Section 6, of the City Charter permits the City 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 City Council. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. Budget a. That the City Council has reviewed the City Manager's 2013-2014 Recommended Budget, a copy of which is on file with the office of the City Clerk, and has approved certain amendments thereto. b. That the City Manager’s 2013-2014 Recommended Budget, as amended by the Council, is hereby adopted, in accordance with the provisions of Article V, Section 4, of the City Charter and incorporated herein by reference; provided, however, that the comparative figures contained in the adopted budget may be subsequently revised as deemed necessary by the City Manager to reflect actual revenues and expenditures for the fiscal year 2012. c. That the adopted budget, as amended, shall be maintained in the office of the City Clerk and identified as "The Budget for the City of Fort Collins for the Fiscal Years Ending December 31, 2013, and December 31, 2014, as Adopted by the City Council on November 20, 2012." Section 2. Appropriations. That there is hereby appropriated out of the revenues of the City of Fort Collins, for the fiscal year beginning January 1, 2013, and ending December 31, 2013, the sum of FOUR HUNDRED EIGHTY THREE MILLION FOUR HUNDRED FORTY FIVE THOUSAND SIXTY TWO DOLLARS ($483,445,062) to be raised by taxation and otherwise, which sum is deemed by the City Council to be necessary to defray all expenditures of the City during said budget year, to be divided and appropriated for the following purposes, to wit: GENERAL FUND $112,765,370 ENTERPRISE FUNDS Golf $2,884,456 Light & Power Operating Total .......................................118,816,167 Capital Projects: Art in Public Places 2,000 Computerized Maintenance Mgmt. System 381,129 Electric Vehicle Charging Stations 100,000 Electric Substation Improvements 200,000 Capital Projects Total ................................. 683,129 Total Light & Power ................................................119,499,296 -2- Storm Drainage Operating Total ........................................10,692,091 Capital Projects: Art in Public Places 23,129 Boxelder Authority 255,000 Computerized Maintenance Mgmt. System 239,463 Drainage & Detention System Replacement 262,870 Stormwater Basin Improvements 1,400,000 Stormwater Developer Repays 100,000 Stormwater Master Plan 225,000 Stream Restoration & Best Mgmt. Practices 650,000 Capital Projects Total .................................3,155,462 Total Storm Drainage ................................................13,847,553 Wastewater Operating Total........................................18,399,807 Capital Projects: Art in Public Places 33,563 Collection System Replacement 1,629,838 Computerized Maintenance Mgmt. System 239,462 Drake Water Reclamation Facility Impr. 150,000 Mulberry Bridge Sewer Relocation 560,000 Mulberry Water Reclamation Facility Impr. 60,500 Sludge Disposal Improvements 199,800 Water Reclamation Replacement 1,166,500 Capital Projects Total ................................ 4,039,663 Total Wastewater....................................................22,439,470 Water Operating Total ........................................25,926,541 Capital Projects: Art in Public Places 43,937 Cathodic Protection 552,000 Computerized Maintenance Mgmt. System 239,463 Distribution System Replacement 1,780,708 Dual System Design with Colorado State Univ. 100,000 Engineering Distribution System Replacement 800,000 Halligan Reservoir Enlargement 190,000 High Park Fire Water Mitigation 987,953 Mulberry/Poudre Water Main 200,000 Source of Supply Replacements 550,000 Water Meter Replacement & Rehabilitation 800,000 Water Production Replacement Program 521,000 Water Supply Development 100,000 -3- Capital Projects Total ................................ 6,865,061 Total Water ...................................................... 32,791,602 TOTAL ENTERPRISE FUNDS $191,462,377 INTERNAL SERVICE FUNDS Benefits $20,923,638 Data & Communications 8,310,682 Equipment 10,706,119 Self Insurance 3,151,406 Utility Customer Service & Administration 14,663,067 TOTAL INTERNAL SERVICE FUNDS $ 57,754,912 SPECIAL REVENUE FUNDS Capital Improvement Expansion $ 3,025,353 Capital Leasing Corporation 4,653,344 Cemeteries 579,374 Conservation Trust Operating Total - Administration ............................ 281,436 Capital Projects: Fossil Creek Trail ............................ 40,000 Hughes Stadium Disc Golf Course ............... 70,000 Open Space Acquisition ...................... 270,000 Trail Acquisition & Development .............. 145,500 Parks Maintenance .......................... 735,154 Capital Projects Total ...................................1,260,654 Total Conservation Trust...............................................1,542,090 Cultural Services & Facilities ..............................4,003,169 Capital Projects: Arts in Public Places ........................ 90,990 Total Cultural Services & Facilities ......................................4,094,159 General Employees' Retirement .........................................3,227,950 Keep Fort Collins Great Operating Total ........................................20,604,884 Capital Projects: City Bridge Program........................1,700,000 Fort Collins Bike Program .................... 217,950 Trail Acquisition & Development .............. 153,000 Capital Projects Total .................................. 2,070,950 -4- Total Keep Fort Collins Great ..........................................22,675,834 Museum ............................................................1,181,420 Natural Areas........................................................9,681,563 Neighborhood Parkland Operating Total - Administration ............................ 416,160 Capital Projects: Golden Meadows Park ....................... 100,000 Lee Martinez Park Addition .................... 50,000 New Site Acquisition ........................ 457,521 New Park Site Development................... 170,000 Richards Lake .............................. 300,000 Side Hill Neighborhood Park .................. 200,000 Soft Gold Neighborhood Park .................. 75,000 Capital Projects Total .................................. 1,352,521 Total Neighborhood Parkland ...........................................1,768,681 Perpetual Care ......................................................... 20,145 Recreation ..........................................................6,726,230 Sales and Use Tax ...................................................12,294,000 Street Oversizing .....................................................2,601,384 Timberline/Prospect SID #94 ............................................. 65,534 Transit Services .................................................... 10,157,400 Transportation Services.............................................. 24,472,002 TOTAL SPECIAL REVENUE & DEBT SERVICE FUNDS .................$108,766,463 CAPITAL PROJECTS FUND General City Capital Projects: Block 32 Redevelopment ...................$ 135,000 Downtown Poudre River Improvements ......... 175,000 East Community Park .......................1,700,000 Great Lawn at the Gardens .................... 250,000 I-25 Interchange Design ...................... 100,000 I-25/392 Project - Signage .................... 100,000 Integrated Recycling Facility .................. 448,000 Lemay/Vine Grade Separated Crossing ........... 50,000 City Bridge Project - Mulberry Bridge ........... 500,000 Natural Areas Office Building ................. 440,000 Natural Resources Research Center Overpass ....1,200,000 North College-Conifer/Willox Improvements ....1,940,000 Railroad Crossing Replacement ................ 100,000 Southeast Community Park.................... 500,000 Total General City Capital Projects ......................................7,638,000 -5- Building on Basics Operating - Administrative Charge ............................. 45,013 Capital Projects: Bicycle Program Plan Implementation ........... 125,000 Intersection Improvements & Traffic Signals ..... 780,000 Pedestrian Plan and ADA Improvements ......... 300,000 Senior Center Expansion ....................3,044,559 Timberline Rd-Drake to Prospect Improvements . . 763,368 Total Building on Basics Capital Projects......................5,012,927 Total Building on Basics ...............................................5,057,940 TOTAL CAPITAL PROJECTS FUND................................... $ 12,695,940 TOTAL CITY FUNDS ...............................................$483,445,062 Section 3. Mill Levy a. That the 2013 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, 2012, 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. b. That 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 16th day of October, A.D. 2012, and to be presented for final passage on the 20th day of November, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk -6- Passed and adopted on final reading on the 20th day of November, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk -7-