HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/05/2013 - SECOND READING OF ORDINANCE NO. 145, 2013, BEING TAgenda Item 3
Item # 3 Page 1
AGENDA ITEM SUMMARY November 5, 2013
City Council
STAFF
Lawrence Pollack, Budget & Performance Measurement Manager
Darin Atteberry, City Manager
Mike Beckstead, Chief Financial Officer
SUBJECT
Second 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, unanimously adopted on First Reading on October 15, 2013, 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. 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 Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, October 15, 2013
Agenda 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.
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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:
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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 $7,103,384 $123,791,032
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 $11,123 $4,068,444
Capital Projects – Art in Public Places 86,805 14,490 101,295
Total Cultural Services & Facilities $4,144,126 $25,613 $4,169,739
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
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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 ONE MILLION SIX HUNDRED NINE THOUSAND SEVEN HUNDRED
THIRTY-SEVEN DOLLARS ($501,609,737) 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 $1,533,952 $107,909,042
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 2,172,735 545,000 2,717,735
Timberline Rd-Drake to Prospect Improv. 2,736,632 2,736,632
Total 1/4 Cent Building on Basics $5,380,730 $545,000 $5,925,730
TOTAL CAPITAL PROJECTS FUND $6,701,730 $4,845,000 $11,546,730
TOTAL CITY FUNDS $486,640,844 $14,968,893 $501,609,737
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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