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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 12/17/2013 - SECOND READING OF ORDINANCE NO. 167, 2013, APPROPRAgenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY December 17, 2013 City Council STAFF Mindy Pfleiger, Accounting Supervisor Craig Foreman, Director of Park Planning & Development John Voss, Controller/Assistant Financial Officer SUBJECT Second Reading of Ordinance No. 167, 2013, Appropriating Prior Year Reserves in the Conservation Trust Fund and Authorizing the Transfer of Appropriations to the Capital Projects Fund. EXECUTIVE SUMMARY Only funds received from the State of Colorado lottery proceeds can be deposited in and expensed from the Conservation Trust Fund. Grants, contributions and interest earnings tied to these revenues cannot be commingled with the lottery proceeds. This Ordinance, unanimously adopted on First Reading on December 3, 2013, transfers the interest earnings, grants, and contributions from existing projects in the Conservation Trust Fund into projects in the Capital Projects Fund. $13,808 of prior year reserves in the Conservation Trust Fund will be appropriated for transfer to the Capital Projects Fund, and $1,084,261 of existing appropriations will be transferred from Conservation Trust Fund projects to projects in the Capital Projects Fund. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, December 3, 2013 (w/o attachments) (PDF) 2. Ordinance No. 167, 2013 (PDF) Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY December 3, 2013 City Council STAFF Mindy Pfleiger, Accounting Supervisor Craig Foreman, Director of Park Planning & Development John Voss, Controller/Assistant Financial Officer SUBJECT First Reading of Ordinance No. 167, 2013, Appropriating Prior Year Reserves in the Conservation Trust Fund and Authorizing the Transfer of Appropriations to the Capital Projects Fund. EXECUTIVE SUMMARY The purpose of this item is to appropriate $13,808 of prior year reserves in the Conservation Trust Fund for transfer to the Capital Projects Fund, and to transfer $1,084,261 of existing appropriations from Conservation Trust Fund projects to projects in the Capital Projects Fund. Per Colorado Revised Statutes Sec. 29-21-101, only funds received from the State of Colorado lottery proceeds can be deposited in and expensed from the Conservation Trust Fund. Grants, contributions and interest earnings tied to these revenues cannot be commingled with the lottery proceeds. This ordinance transfers the interest earnings, grants, and contributions from existing projects in the Conservation Trust Fund into projects in the Capital Projects Fund. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City of Fort Collins receives lottery proceeds from the State each quarter. Every year the City must submit a ‘Status of Conservation Trust Fund Report’ to the Colorado Department of Local Affairs showing how the funds are being spent per state statutes. In August 2012, the Colorado Department of Local Affairs (DOLA) audited the City of Fort Collins’ 2011 ‘Status of Conservation Trust Fund Report’. On January 9, 2013, the City was notified from DOLA that Conservation Trust Fund dollars were being commingled with other City funds which is strictly prohibited by state statute. This Ordinance cleans up the Conservation Trust Fund so the City will be in compliance with C.R.S Sec. 29-21-101. FINANCIAL / ECONOMIC IMPACT The City’s Conservation Trust Fund has $13,808 in reserves from interest and contributions which need to be appropriated for transfer to the Capital Projects Fund. The remaining $1,084,261 to be transferred are from grants and contributions that were appropriated in past budget cycles and supplemental ordinances. These existing appropriations are to be transferred out of the Conservation Trust Fund projects, and applied to the same project through the Capital Projects Fund. The affected projects are as follows: ATTACHMENT 1 Agenda Item 5 Item # 5 Page 2 Trail Acquisition & Development Project $ 13,808 Poudre River Trail Project 737,597 Fossil Creek Trail Project 200,000 Pickle Plant Project 75,364 Hughes Stadium Disc Golf Course Project 71,300 Total $1,098,069 ATTACHMENTS 1. State of Colorado's Response to 2011 Audit (PDF) - 1 - ORDINANCE NO. 167, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE CONSERVATION TRUST FUND AND AUTHORIZING THE TRANSFER OF APPROPRIATIONS TO THE CAPITAL PROJECTS FUND WHEREAS, the City receives lottery proceeds from the State of Colorado each quarter and annually submits to the State a Status of Conservation Trust Fund Report, showing how the proceeds have been spent; and WHEREAS, in August 2012, the Colorado Department of Local Affairs (DOLA) audited the City’s 2011 Status of Conservation Trust Fund Report; and WHEREAS, on January 9, 2013, the City was notified by DOLA that Conservation Trust Fund dollars were being improperly commingled with other City funds, contrary to the requirements of CRS Sec. 29-21-101; and WHEREAS, this Ordinance separates the lottery funds by transferring the other City funds that are derived from interest earnings, grants, and contributions, out of projects in the Conservation Trust Fund and into projects in the Capital Projects Fund; and WHEREAS, the City’s Conservation Trust Fund has $13,808 in prior year reserves from interest earnings and contributions, which monies need to be appropriated for transfer to the Capital Projects Fund to comply with CRS Sec. 29-21-101; and WHEREAS, the City’s Conservation Trust Fund also has $1,084,261 of existing project appropriations from grants and contributions that also needs to be transferred to projects through the Capital Projects Fund; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; 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 (project) to another fund (project), provided that the purpose for which the transferred funds are to be expended remains unchanged. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated from prior year reserves in the Conservation Trust Fund the sum of THIRTEEN THOUSAND EIGHT HUNDRED AND - 2 - EIGHT DOLLARS ($13,808) for transfer to the Capital Projects Fund - Trail Acquisition/Development - Special Funds Project and appropriated therein. Section 2. That the unexpended appropriated amount of ONE MILLION EIGHTY- FOUR THOUSAND TWO HUNDRED SIXTY-ONE DOLLARS ($1,084,261) in Conservation Trust Fund projects is hereby authorized for transfer to the Capital Projects Fund for the following projects: Poudre River Trail Project $737,597 Fossil Creek Trail Project 200,000 Pickle Plant Project 75,364 Hughes Stadium Disc Golf Course Project 71,300 Total $1,084,261 Introduced, considered favorably on first reading, and ordered published this 3rd day of December, A.D. 2013, and to be presented for final passage on the 17th day of December, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 17th day of December, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk