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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/20/2014 - FIRST READING OF ORDINANCE NO. 074, 2014, APPROPRIAgenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY May 20, 2014 City Council STAFF Mark Sears, Natural Areas Program Manager SUBJECT First Reading of Ordinance No. 074, 2014, Appropriating Prior Year Reserves in the Natural Areas Fund for the Purpose of Providing Natural Areas Programming Not Included in the 2014 Adopted City Budget. EXECUTIVE SUMMARY The purpose of this item is approving an Appropriation Ordinance appropriating $6,221,325 from prior year reserves in the Natural Areas Fund. Nearly 80% of the funds will be used for land conservation. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Prior to 2004, the Natural Areas Department (NAD) was housed within the Capital Projects Fund and therefore funds did not lapse from year to year. During 2004, in order to comply with the Governmental Accounting Standards Board, Natural Areas appropriations and funding sources were all moved into the Natural Areas Fund, a lapsing fund. Therefore, unspent funds need to be appropriated into the following year’s budget before they can be spent. The purpose of the previously appropriated funds remains the same: land conservation, construction of public improvements, restoration of wildlife habitat and other NAD programs to benefit the citizens of Fort Collins. The funds for the Natural Areas Department come from the following designated sources of revenue, including: the City - Open Space Yes! sales tax; the Larimer County - Help Preserve Open Space sales tax; and, miscellaneous unanticipated revenues. All of these funds are restricted to the purposes of the Natural Areas Department, including unanticipated revenues which consist generally of income from sales tax revenues, easements, leases or grants. The prior year reserve funds being appropriated are more specifically described: $4,812,782 Unspent 2013 Budgeted Funds - re-appropriated for same purpose $1,408,543 Unanticipated Revenues & Prior Year Reserves $6,221,325 Prior Year 2013 Reserves The anticipated use of these funds is as follows: Land Conservation - $4,800,578 ($3,700,000 unspent 2013 appropriations and $1,100,578 in prior year reserves) will fund land conservation efforts per the Land Conservation and Stewardship Master Plan. Education - $50,075 (in prior year reserves) will fund unanticipated department needs: to enhance, market, and maintain the newly developed NatureTracker web-based registration and volunteer coordination software; purchase brochure displays for new office; and, update interpretive signs at Reservoir Ridge Natural Area. Agenda Item 9 Item # 9 Page 2 Public Improvements - $1,160,467 ($1,030,467 in unspent 2013 funds and $130,000 in prior year reserves) will fund the completion of public improvement projects that are underway of which $828,217 are unspent funds designated for contribution to Parks’ paved trails system; $154,600 in matching funds for the Great Outdoor Colorado grant to construct a new trail head parking lot at Arapaho Bend; $14,950 in matching funds for the State Historic Grant to restore two buildings at Bobcat Ridge; and $132,700 to complete trail, kiosk and trail head improvements at Running Deer, Riverbend Ponds, Pineridge, Kingfisher Point and several natural areas along the Poudre River. Facility Operations - $65,205 ($12,315 in unspent 2013 funds and $52,890 in prior year reserves) will fund: the completion of a fuel shed roof; the insulation and heating of the wash bay; Operation Services Support for the new office building; and, the conversion of the shop and the existing office to the Keyless Fob Security System used on most City buildings. Land Management - $80,000 ($70,000 in unspent 2013 funds and $10,000 in prior year reserves) will fund: fencing projects and the application for historic designation of historic structures at Soapstone Prairie. Department Management - $65,000 (in prior year reserves) will fund: office equipment for new office; a consultant to assist with the development of the Natural Areas Master Plan; and, lease an additional vehicle for staff use. FINANCIAL / ECONOMIC IMPACTS The Appropriation Ordinances increases 2014 appropriations in the City’s Natural Areas Fund by $6,221,325. The requested appropriation of $6,221,325 from prior year reserves, in the Natural Areas Fund represents 2013 appropriations that were unspent and unencumbered at year-end 2013 and unanticipated revenues. These funds are restricted to the purposes of the Natural Areas Department. BOARD / COMMISSION RECOMMENDATION On April 9, 2014, the Land Conservation and Stewardship Board unanimously approved a motion recommending approval of the appropriation of prior year reserves and unanticipated revenues in the Natural Areas Fund. ATTACHMENTS 1. Land Conservation and Stewardship Board minutes, April 9, 2014 (PDF) Excerpt of Minutes Appropriation of Prior Year Reserves into the Natural Areas Fund LAND CONSERVATION & STEWARDSHIP BOARD MINUTES 6:00 pm – 8:53 pm CITY OF FORT COLLINS DATE: April 9, 2014 LOCATION: 215 N. Mason, Conference Room 1-A TIME: 6:00 pm Action Items: I. Appropriation of Prior Year Reserves – John Stokes John - We have to appropriate prior year reserve money every year. Those of you who have been on the board recognize this. We would like to appropriate about $6.2M into our budget. A lot of that is land conservation money that we roll over from year after year. Some of these dollars are unanticipated revenues. We’re going to budget it with about 80% going to land conservation. Kelly – Regarding Mark’s memorandum, where the $1.4M that is listed as unanticipated revenues and unspent funds; what does that mean? John – Unanticipated means our revenues were up, primarily and the unspent funds are budgeted funds that didn’t get spent. Trudy – How does the money that carries over relate to the 2014 budget? Where does that show up on Mark’s handout? My other question is about the Xcel money. Has it been spent already? John – We put the Xcel money into Land Conservation and City Parks got some of that money to construct the trail along the east side of Shields Street from Fossil Creek Drive, south to Trilby Road across Hazaleus Natural Area. There was a split with that money so we appropriated $1,250,000 to Parks for trail construction and $750,000 to NAD for land conservation. . John – You’re not seeing the full 2014 Budget including the reappropriation, you are just seeing the initial 2014 budget breakdown in Mark’s spreadsheet The bottom line is that we have $6.2M being appropriated into our 2014 budget; of which about 80% will be used for land conservation. Trudy – Am I correct to say that the first memo demonstrates revenues for the 2014 budget and the second memo demonstrates more of the budget? John – Yes Kelly Ohlson made a motion to adopt the appropriation of prior year reserves and unanticipated revenues in the Natural Areas Department funds. K-Lynn Cameron seconded the motion. Motion was unanimously approved. ATTACHMENT 1 - 1 - ORDINANCE NO. 074, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE NATURAL AREAS FUND FOR THE PURPOSE OF PROVIDING NATURAL AREAS PROGRAMMING NOT INCLUDED IN THE 2014 ADOPTED CITY BUDGET WHEREAS, the City is committed to preserving natural areas and providing educational, interpretive and appropriate recreational opportunities to the public; and WHEREAS, Natural Areas programming implements open land conservation priorities identified in the City’s Comprehensive Plan by purchasing conservation easement interests in key natural areas, community separators, or other open lands; providing stewardship for lands purchased; and developing trails and interpretive features for public use; and WHEREAS, the Natural Areas Department is funded primarily through the collection of Open Space - Yes sales and use tax revenue, as well as revenues from the Larimer County Help Preserve Open Space sales and use tax, investment earnings, and other miscellaneous revenues deposited in the Natural Areas Fund; and WHEREAS, the Natural Areas Fund has unspent and unencumbered appropriations from 2013 in excess of $4,800,000 and additional unanticipated revenue and prior year reserves in excess of $1,400,000; and WHEREAS, Article V, Section 11 of the City Charter requires that all appropriations unexpended or unencumbered at the end of the fiscal year lapse to the applicable general or special revenue fund, except that appropriations for capital projects and federal or state grants do not lapse until the completion of the capital project or until the expiration of the federal or state grant; 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 my be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, City Staff recommends appropriating from prior year reserves in the Natural Areas Fund $6,221,325 to be used for acquisition, construction, enhancement and maintenance of trail systems, wildlife habitat and other natural areas to benefit the citizens of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from prior year reserves in the natural Areas Fund the sum of SIX MILLION TWO HUNDRED TWENTY-ONE THOUSAND THREE HUNDRED TWENTY-FIVE DOLLARS ($6,221,325) to be used for acquisition, construction, enhancement and maintenance of trail systems, wildlife habitat and other natural areas to benefit the citizens of the City. - 2 - Introduced, considered favorably on first reading, and ordered published this 20th day of May, A.D. 2014, and to be presented for final passage on the 3rd day of June, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 3rd day of June, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk