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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/15/2013 - FIRST READING OF ORDINANCE NO. 145, 2013, BEING THAgenda Item 25 Item #25 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Lawrence Pollack, Budget & Performance Measurement Manager Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 145, 2013, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2014; Amending the Budget for the Fiscal Year Beginning January 1, 2014, and Ending December 31, 2014; and Fixing the Mill Levy for Fiscal Year 2014. EXECUTIVE SUMMARY This Ordinance amends the adopted 2014 Budget and sets the amount of $500,514,287 to be appropriated for fiscal year 2014. Including the 2014 adopted budgets for the General Improvement District (GID) No. 1 of $194,001 and the revised Urban Renewal Authority (URA) budget of $2,191,746 the total City appropriations amount to $502,900,034. The Net City Budget, which excludes GID, URA, internal transfers between City funds, is $398,157,679 for 2014. The Net City Budget, as amended, is allocated to (amounts stated in millions of dollars): Original Amended 2014 2014 Change Operations $441.5 $451.4 $9.9 Debt Service 20.5 20.7 0.1 Capital* 26.6 30.8 4.2 Total City Appropriations** $488.6 $502.9 $14.3 General Improvement District (GID) #1 ($0.2) ($0.2) $0.0 Urban Renewal Authority (URA) (1.8) (2.2) (0.4) Internal Service Funds (57.5) (57.7) (0.3) Less Transfers to Other Funds (39.2) (44.6) (5.4) Net City Budget $390.0 $398.2 $8.2 * Capital dollars reflect non-lapsing capital project budgets ** This includes GID and URA which are appropriated in separate ordinances This Ordinance also sets the 2014 City mill levy at 9.797 mills, unchanged since 1991. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION City Council adopted the 2013‐2014 Biennial Budget and appropriated monies for expenditure in fiscal Agenda Item 25 Item #25 Page 2 year 2013. State statutes and the City Charter both require an annual appropriation to cover expenses for the ensuing year (2014) based upon the adopted budget. The Second Reading must be done before the last day of November and is currently scheduled for November 5, 2013. 2014 Revenue Update The Sales and Use Tax revenue forecast model was updated in July, 2013 with data from the first six months of the fiscal year. Sales tax revenue is still projected to increase 2.6% in 2014 over 2013 collections based on the model and continued cautious optimism of the economy. This not only benefits the General Fund, but also the other dedicated sales and use tax revenues (e.g., KFCG). Light and Power revenue is also expected to come in higher than the original 2014 forecast due to a combination of energy sales and electric development fees. Development review fees collected in 2013 have also been strong and are anticipating similar revenue levels in 2014. A modest use of reserves has also been utilized to fund one‐time expenditures. The following revenue items have been modified since being presented to Council during the September 10, 2013 Work Session: ‐ Light and Power revenue is now projected to increase $3.2M over the forecast included in the adopted 2013‐2014 Budget. Previously, an increase of $5.8M had been shown. ‐ The 4 dedicated Sales and Use Tax revenues have now been included for a total of $667K. They had been excluded in the work session materials since there were no requests to use that additional revenue. The breakout of the 4 dedicated revenues are as follows: o Open Space, Yes!: $104,185 o Building on Basics (BOB) Community Enhancements: $104,185 o Pavement Management: $104,185 o Keep Fort Collins Great (KFCG): $354,229 This table displays a summary of incremental revenue, revision uses, and contributions to fund balance: General Fund New Revenue Other Reserves Utilities Total Sales & Use Tax Development Fees Dedicated Sales & Use Tax General Fund KFCG Utilities Other Light & Power Revenue Revised Revenue as of Sept. 17th $ 2.0 $ 1.6 $ 0.7 $ 5.2 $ 0.9 $ 0.2 $ 0.1 $ 3.2 $ 13.9 Recommended Budget Revisions (1.5) (0.3) 0.0 (4.3) (0.9) (0.2) (0.5) (1.0) (8.7)* Revenue saved in fund balance $ 0.5 $ 1.3 $ 0.7 $ 0.9 $ 0.0 $ 0.0 $ (0.4) $ 2.2 $ 5.2 * The total recommended budget revisions of $8.7M differs from the change in the Net City Budget $8.2M (shown above in the Executive Summary) due to one of the revisions occurring in an Internal Service Fund and the adjustments shown in the Miscellaneous section at the end of the AIS. Recommended 2014 Budget Additions After reviewing the 2014 Budget Revision requests at the September 10, 2013 work session and obtaining guidance from Council, the City Manager is recommending the adjustments listed below to Agenda Item 25 Item #25 Page 3 the 2014 Budget. In addition to what was presented to Council the recommended revisions now include an additional $92,500 for the Fort Collins‐Loveland Municipal Airport. Staff was unaware of the continued need for the increased level of contribution included in the airport's 2013 budget until receiving the AIS for the airport. During the work session a question was asked about the additional $210K going to the Senior Center and whether that was the right level of incremental support. Staff will provide a follow up memo following the work session, as attached to this AIS. No changes have been included on this line item for First Reading. Recommended General Fund adjustments total $1,810,901 (ongoing of $649,959 and one‐time of $11,160,942) and recommended adjustments to Other Funds total $6,920,782 (ongoing of $710,483 and one‐time of $6,210,299) General Fund: Ongoing One‐time Agenda Management System $25,000 Arthur Ditch Culvert Replacement at Mulberry Pool 500,000 City Attorney Office Staffing (2.5 FTE)* 73,000 Development Review ‐ IT Systems Staffing (1.5 FTE Contractual) 147,270 Development Review Staffing (3.0 FTE ‐ Contractual) 200,000 Fort Collins 150 Year Museum Exhibition 50,000 Medical Marijuana Licensing Expenses 20,000 Nature in the City 129,700 Park Ranger Salary Revision 20,000 Police Senior Systems Administrator (1.0 FTE) 108,536 Potential November 2014 Special Election 175,000 School Resource Officer (1.0 FTE) 56,153 88,742 Train Horn Waiver ‐ College to Laurel 125,000 Incremental Contribution to FC‐Loveland Airport** _________ 92,500 Total General Fund Adjustments: $649,959 $1,160,942 * A portion of this Offer is funded by the Water Fund and reflected below ** The incremental airport contribution reflects the ongoing operational needs of the airport and mirrors the amount contributed in 2013. This was inadvertently omitted from the 2014 Budget Revisions previously reviewed by Council during the September 10th work session Other Funds: Ongoing One‐time North College Improvements ‐‐ Conifer to Willox $4,300,000 PC Replacement Builds (1 FTE ‐ Contractual) 97,000 PFA 2014 Budget Revision Offer 279,760 Senior Center Expansion 210,971 Climate Action Planning 60,000 Museum Local History Exhibit Cases 50,000 Forestry Work Backlog Catch‐up 50,000 Inclusionary Zoning for Affordable Housing Analysis and Ordinance Recommendation 60,000 Oil and Gas Inspection and Monitoring Program 30,000 Triple Bottom Line (TBL) Decision Framework & Toolbox 20,000 Agenda Item 25 Item #25 Page 4 Light and Power Payments in Lieu of Taxes 262,400 Light and Power Purchase Power 740,168 Fort Collins 150 Year Museum Exhibition 50,000 East‐West Transit Connections 260,000 Evening Hour Service for East‐West Transit Connections 240,000 City Attorney Office Staffing (2.5 FTE)* 210,483 Total Other Fund Adjustments: $710,483 $6,210,299 * A portion of this Offer is funded by the General Fund and reflected above Miscellaneous In addition to the recommended revisions, a few miscellaneous adjustments must be made to correct the 2014 appropriations for recent changes. The additional revenue projected to be received from Sales Tax must be appropriated for transfer to the Natural Areas Fund and Capital Projects Fund. Also, the following "clean‐up" items are included in the Amended 2014 appropriations.  Art in Public Places (APP) Adjustment: $20,163 - The original 2014 APP offer was based on projects known at that time. The current proposed adjustment is based on the final 2014 budgeted capital projects and adjustments to how APP is recorded financially, which were approved by City Council in 2012.  Fleet Services Bus Mechanic Position at Transfort: $67,903 - This position was included in the adopted 2013‐14 Budget; specifically in the Transit Fund. This additional appropriation is for the accounting requirements to transfer the budget from the Transit Fund to the Equipment Fund where the expense will occur. This transfer had been inadvertently excluded from the 2013‐2014 Budget.  Unfund Offer 125.1 ‐ Recreational Trail Development Funded through New Trail Impact Fee: ($270,000) - The original 2013‐2014 Budget included an Offer for Recreational Trail Development Funded through New Trail Impact Fee that had been anticipated to be implemented in 2013. That fee has not been approved by City Council so there is no revenue to support that Offer. In 2013 the $270,000 appropriation in the Conservation Trust Fund was frozen so that budget amount could not be spent. For 2014 the Offer is being unfunded, so it is not included in the Annual Appropriation Ordinance. FINANCIAL / ECONOMIC IMPACT This Ordinance amends the City Budget for fiscal year 2014 and represents the annual appropriation for fiscal year 2014 in the amount of $500,514,287. The Ordinance also sets the City mill levy at 9.797 mills, unchanged since 1991. - 1 - ORDINANCE NO. 145, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2014; AMENDING THE BUDGET FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2014, AND ENDING DECEMBER 31, 2014; AND FIXING THE MILL LEVY FOR FISCAL YEAR 2014 WHEREAS, on November 20, 2012, the City Council adopted on second reading Ordinance No. 112, 2012, approving an amended biennial budget for the years beginning on January 1, 2013, and January 1, 2014; and WHEREAS, the City Manager has submitted to the City Council proposed amendments to the 2014 budget adopted by the City Council in Ordinance No. 112, 2012; 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 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 City Council; 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 real 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 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 the City Council; and WHEREAS, Article V, Section 10, of the City Charter authorizes the City 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: - 2 - Section 1. That the City Council, having reviewed the City Manager's recommended changes to the A2014 Proposed Appropriations@ section of the Fort Collins 2013 and 2014 Biennial Budget (the “Biennial Budget@), as shown on pages 43 through 45 thereof, a copy of which is on file with the office of the City Clerk, hereby amends the Biennial Budget to reflect the following changes and adopts said Biennial Budget as amended: 2014 Proposed Appropriations Existing Amount of Adjustment As Amended GENERAL FUND $116,687,648 $6,558,384 $123,246,032 ENTERPRISE FUNDS Golf $2,927,636 $2,927,636 Light & Power Operating Total $124,350,218 $1,002,568 $125,352,786 Capital Projects: Art in Public Places 4,750 4,750 Electric Substation Improvements 175,000 175,000 Southwest Enclave System 300,000 300,000 Capital Projects Total 479,750 479,750 Total Light & Power $124,829,968 $1,002,568 $125,832,536 Storm Drainage Operating Total $10,901,697 $21,048 $10,922,745 Capital Projects: 0 Art in Public Places 25,040 25,040 Boxelder Authority 265,000 265,000 Drainage & Detention System Replacement 253,970 253,970 Stormwater Basin Improvements 1,700,000 1,700,000 Stormwater Developer Repays 100,000 100,000 Stormwater Master Planning 150,000 150,000 Stream Restoration & Best Mgmt. Practices 650,000 650,000 Capital Projects Total 3,144,010 3,144,010 Total Storm Drainage $14,045,707 $21,048 $14,066,755 Wastewater Operating Total $16,889,054 $21,048 $16,910,102 Capital Projects: Art in Public Places 39,864 39,864 - 3 - Collection System Replacement 1,605,357 1,605,357 Downtown River District Sewer Replacement 50,000 50,000 Drake Water Reclamation Facility Improv. 581,000 581,000 Sludge Disposal Improvements 200,000 200,000 Water Reclamation Replacement Program 1,800,000 1,800,000 Capital Projects Total 4,276,221 4,276,221 Total Wastewater $21,165,275 $21,048 $21,186,323 Water Operating Total $26,567,389 $168,387 $26,735,776 Capital Projects: Art in Public Places 68,689 68,689 Cathodic Protection 306,000 306,000 Distribution System Replacement 1,622,935 1,622,935 Dual System Design with Colorado State Univ. 50,000 50,000 Engineering Distribution System Replacement 1,400,000 1,400,000 Halligan Reservoir Enlargement 190,000 190,000 Source of Supply Replacements 550,000 550,000 Water Meter Replacement & Rehabilitation 800,000 800,000 Water Production Replacement Program 2,900,000 2,900,000 Water Supply Development 100,000 100,000 Capital Projects Total 7,987,624 7,987,624 Total Water $34,555,013 $168,387 $34,723,400 TOTAL ENTERPRISE FUNDS $197,523,599 $1,213,051 $198,736,650 INTERNAL SERVICE FUNDS Benefits $21,905,953 $21,905,953 Data & Communications 7,412,486 205,536 7,618,022 Equipment 11,401,965 67,970 11,469,935 Self Insurance 3,258,837 3,258,837 Utility Customer Service & Administration 15,373,536 15,373,536 TOTAL INTERNAL SERVICE FUNDS $59,352,777 $273,506 $59,626,283 SPECIAL REVENUE & DEBT SERVICE FUNDS Capital Improvement Expansion $832,354 $832,354 Capital Leasing Corporation 4,630,283 4,630,283 Cemeteries 593,224 593,224 Conservation Trust Operating Total - Administration & Parks Maint $1,022,149 $1,022,149 Capital Projects: Fossil Creek Trail 40,000 40,000 - 4 - Open Space Acquisition 270,000 (270,000) 0 Trail Acquisition/Development 145,500 145,500 Tri-City Trails 50,000 50,000 Capital Projects Total 505,500 (270,000) 235,500 Total Conservation Trust $1,527,649 ($270,000) $1,257,649 Cultural Services & Facilities Operating Total $4,057,321 $9,924 $4,067,245 Capital Projects – Art in Public Places 86,805 10,239 97,044 Total Cultural Services & Facilities $4,144,126 $20,163 $4,164,289 General Employees' Retirement $3,527,950 $3,527,950 Keeping Fort Collins Great Operating Total $19,731,887 $659,994 $20,391,881 Capital Projects: City Bridge Program 1,700,000 1,700,000 Fort Collins Bike Programs 220,856 220,856 Senior Center Expansion 0 210,971 210,971 Trail Acquisition/Development 113,000 113,000 Capital Projects Total 2,033,856 210,971 2,244,827 Total Keeping Fort Collins Great $21,765,743 $870,965 $22,636,708 Museum $1,196,048 $100,000 $1,296,048 Natural Areas 9,401,207 9,401,207 Neighborhood Parkland Fund Operating Total - Administration $426,873 $426,873 Capital Projects: Maple Hill Park 409,198 409,198 New Park Site Acquisition 350,000 350,000 New Park Site Development 170,000 170,000 Richards Lake Park 500,000 500,000 Side Hill Neighborhood Park 200,000 200,000 Capital Projects Total 1,629,198 1,629,198 Total Neighborhood Parkland $2,056,071 $2,056,071 Perpetual Care $20,149 $20,149 Recreation 6,070,932 6,070,932 Sales & Use Tax 12,552,000 208,370 12,760,370 Street Oversizing 2,870,239 2,870,239 Timberline/Prospect SID 63,152 63,152 - 5 - Section 2. That there is hereby appropriated out of the revenues of the City, for the fiscal year beginning January 1, 2014, and ending December 31, 2014, the sum of FIVE HUNDRED MILLION FIVE HUNDRED FOURTEEN THOUSAND TWO HUNDRED EIGHTY-SEVEN DOLLARS ($500,514,287) 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 purposes shown in Section 1 above. Section 3. Mill Levy. a. That the 2014 mill levy rate for the taxation upon each dollar of the assessed valuation of all the taxable real property within the city of Fort Collins as of December 31, 2013, shall be 9.797 mills, which levy represents the amount of taxes for City purposes necessary to Transit Services 11,241,742 389,766 11,631,508 Transportation Services 23,882,221 209,238 24,091,459 SPECIAL REVENUE & DEBT $106,375,090 $1,528,502 $107,903,592 SERVICE FUNDS CAPITAL PROJECTS FUND General City Capital Projects: Block 32 Redevelopment $109,000 $109,000 City Bridge Program 250,000 250,000 Downtown Poudre River Improvement 75,000 75,000 Green Streets Implementation 450,000 450,000 Integrated Recycling Facility 237,000 237,000 North College Improvements - Conifer/Willox 0 4,300,000 4,300,000 Railroad Crossing Replacement 100,000 100,000 Southeast Community Park 100,000 100,000 Total General City Capital Projects $1,321,000 $4,300,000 $5,621,000 1/4 Cent Building on Basics Operating - Administrative Charge $46,363 $46,363 Capital Projects: Bicycle Program Plan Implementation 125,000 125,000 Pedestrian Plan and ADA Improvements 300,000 300,000 Senior Center Expansion 2,172,735 2,172,735 Timberline Rd-Drake to Prospect Improv. 2,736,632 2,736,632 Total 1/4 Cent Building on Basics $5,380,730 $5,380,730 TOTAL CAPITAL PROJECTS FUND $6,701,730 $4,300,000 $11,001,730 TOTAL CITY FUNDS $486,640,844 $13,873,443 $500,514,287 - 6 - 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. 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 City Charter. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk