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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/15/2011 - SECOND READING OF ORDINANCE NO. 156, 2011, BEING TDATE: November 15, 2011 STAFF: Darin Atteberry Mike Beckstead AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 30 SUBJECT Second Reading of Ordinance No. 156, 2011, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2012; Amending the Budget for the Fiscal Year Beginning January 1, 2012, and Ending December 31, 2012; and Fixing the Mill Levy for Fiscal Year 2012. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on November 1, 2011, amends the adopted 2012 Budget and sets the amount of $454,382,997 to be appropriated for fiscal year 2012. Including the 2012 adopted budgets for the General Improvement District No. 1 of $303,179 and the Urban Renewal Authority of $1,503,583, the total City appropriations amount to $456,189,759. City Budget (in $ million) Adopted Amended 2012 2012 Change Operations $405.3 $410.4 $5.1 Debt Service 23.2 23.2 - Capital 19.1 22.6 3.5 Total City Operated Appropriations * $447.6 $456.2 $8.6 Less Urban Renewal Authority (URA) (1.5) (1.5) 0.0 Less General Improvement District (GID) (0.3) (0.3) 0.0 Total City of Fort Collins Appropriation $445.8 $454.4 $8.6 * This includes GID and URA which are appropriated in separate ordinances. This Ordinance also sets the 2012 City mill levy at 9.797 mills, unchanged since 1991. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - November 1, 2011 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: November 1, 2011 STAFF: Darin Atteberry Mike Beckstead AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 28 SUBJECT First Reading of Ordinance No. 156, 2011, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2012; Amending the Budget for the Fiscal Year Beginning January 1, 2012, and Ending December 31, 2012; and Fixing the Mill Levy for Fiscal Year 2012. EXECUTIVE SUMMARY This Ordinance amends the adopted 2012 Budget and sets the amount of $454,382,997 to be appropriated for fiscal year 2012. Including the 2012 adopted budgets for the General Improvement District No. 1 of $303,179 and the Urban Renewal Authority of $1,503,583, the total City appropriations amount to $456,189,759. The Net City Budget, which excludes internal transfers between City funds, is $361,424,510 for 2012. The Net City Budget, as amended, is allocated to: Net City Budget (in $ million) Adopted Amended 2012 2012 Change Operations $405.3 $410.4 $5.1 Debt Service 23.2 23.2 - Capital * 19.1 22.6 3.5 Total City Appropriations ** $447.6 $456.2 $8.6 Less Internal Service Funds (57.0) (57.8) (0.8) Less Transfers to Other Funds (37.1) (37.0) 0.1 Net City Budget $353.5 $361.4 $7.9 * Capital dollars reflect non-lapsing capital project budgets. ** This includes GID and URA which are appropriated in separate ordinances. This Ordinance also sets the 2012 City mill levy at 9.797 mills, unchanged since 1991. BACKGROUND / DISCUSSION City Council adopted the 2011-2012 Biennial Budget and appropriated monies for expenditure in fiscal year 2011. State statutes and the City Charter both require an annual appropriation to cover expenses for the ensuing year (2012) based upon the adopted budget. The Second Reading must be done before the last day of November and is currently scheduled for November 15, 2011. 2012 Revenue Update The revenue forecast model was updated in July of 2011 with data from the first six months of the year. Sales tax revenue is projected to increase 1.95% in 2012 over 2011 collections based on the model, including cautious optimism of the economy. General Fund Revenue (2.25%): Adopted 2012 Amended 2012 Sales Tax $50,402,000 $52,805,000 Use Tax 8,000,000 7.800,000 $58,402,000 $60,605,000 COPY COPY COPY COPY November 1, 2011 -2- ITEM 28 Recommended 2012 Budget Additions After reviewing the 2012 budget revision requests and obtaining guidance from Council, the City Manager is recommending the following adjustments to the 2012 budget which was presented to the Finance Committee on October 10, and discussed in Council Work Sessions on October 11 and 18. The following list includes all changes since the City Manager's recommended 2012 budget revisions first were initially presented to the Council Finance Committee. • Eliminated Below Market Pay Adjustment request of $812k • Eliminated Federal Legislation Analysis and Action request of $79k • Reduced CMO Policy & Project Manager Increase from .8 to 1.0 FTE to $15k • Reduced Downtown Ice Rink Installation and Removal to $10k • Reduced Downtown Holiday Lighting to $30k • Changed funding sources to no longer request use of additional KFCG funds • Added Regional Planning Assistance request for $50k • Added Neighborhood Planning Outreach Specialist (Ombudsman) request for $75k • Added Affordable Housing Relocation Assistance request for $50k • Added Sidewalks, Pedestrian Plan and ADA Improvements request for $300k from Building on Basics (BOB) • Added Sidewalk Improvements requests (such as gaps in sidewalk connections) for $260k from Keep Fort Collins Great-Other Transportation funding General Fund recommended adjustments total $1,787,016 and recommended adjustments to Other Funds total $6,837,675. General Fund: Ongoing One-time Assistant to the City Manager and CPIO (1 FTE) $176,320 Police Services Ticket Surcharge Officer (1 FTE) 118,709 Affordable Housing/Human Services 54,499 Restore Conservation Trust Funds for Trail Construction 546,571 Development Review Succession Planning (1.25 Cont. FTE) 75,341 Development Review - Customer Service Demand (1 FTE) 65,000 PFA Non-Discretionary & Total Compensation Increase 228,926 CMO Policy and Project Manager Increase from .8 to 1.0 FTE 15,000 Mason Corridor Synergies and Support Services $150,000 Mason Corridor Synergies and Support Services (Parking Study) 50,000 Reorganization Office of Sustainability 91,650 Downtown Ice Rink Installation and Removal 10,000 Downtown Holiday Lighting 30,000 Regional Planning Assistance 50,000 Neighborhood Planning Outreach Specialist (Ombudsman) 75,000 Affordable Housing Relocation Assistance 50,000 Total General Fund Adjustments: $1,412,016 $375,000 Other Funds: Ongoing One-time Reorganization Office of Sustainability $30,550 Pedestrian Access and ADA Improvements 300,000 Sidewalk improvements 260,000 Light & Power Payments in Lieu of Taxes (PILOT) Increase 121,969 Purchase Power Increas 1,724,505 Energy Efficiency Financing Program (.5 FTE) 300,000 Water Payments in Lieu of Taxes (PILOT) Increase 88,054 Water Meter Replacement and Rehabilitation 580,000 Household Hazardous Waste Community Event 22,000 Remove Structures from Poudre River Floodway 1,000,000 Master Plan Flood Mitigation Project Property 1,600,000 COPY COPY COPY COPY November 1, 2011 -3- ITEM 28 MIS Email, Blackberry & Smart Phone Services 28,000 80,000 MIS Network Services Resource Support 62,400 MIS Technology Customer Software Compliance Support 59,488 MIS Technology Customer Support Restructure 30,709 Microsoft Office 2010 Software Upgrade 550,000 Total Other Fund Adjustments $2,045,787 $4,791,888 Miscellaneous In addition to the recommended adjustments, a couple of miscellaneous adjustments must be made to correct the 2012 appropriations for recent changes. The additional revenue projected to be received from Sales & Use 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 2012 appropriations. • Art in Public Places (APP) Adjustment: $2,400 N The original 2012 APP offer was based on projects known at that time. This adjustment is based on the final 2012 budgeted parks and trails projects • Additional Flex Service: $526,811 N This adjustment is comprised of a 2012-13 CMAQ Grant of $458,794 and partner contributions of $68,017 for the operation of the FLEX regional route from June 1, 2012 to December 31, 2012. The City of Fort Collins local match was previously included in the 2011-12 budget. As such, there is no incremental cost to the City. • Correct Police Debt Payment Budget: ($750,000) N A portion of the Police Building debt ($750,000) is funded from the Capital Projects Fund, the Police Facility - COPs Debt project. In the 2012 proposed budget the payment of $750,000 was added to this project budget, funded by additional interest earnings. However, no additional interest earnings are projected to be received in future years so the 2012 debt payment should be made using existing appropriations and revenue. Therefore, the 2012 proposed budget for the Capital Projects Fund needs to be decreased by $750,000 with the same reduction in Capital Projects Fund revenue. FINANCIAL / ECONOMIC IMPACTS This Ordinance amends the City Budget for fiscal year 2012 and represents the annual appropriation for fiscal year 2012 in the amount of $454,382,997. The Ordinance also sets the City mill levy at 9.797 mills, unchanged since 1991. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 156, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2012; AMENDING THE BUDGET FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2012, AND ENDING DECEMBER 31, 2012; AND FIXING THE MILL LEVY FOR FISCAL YEAR 2012 WHEREAS, on December 21, 2010, the City Council adopted on second reading Ordinance No. 134, 2010, approving an amended biennial budget for the years beginning on January 1, 2011, and January 1, 2012; and WHEREAS, the City Manager has submitted to the City Council proposed amendments to the 2012 budget adopted by the City Council in Ordinance No. 134, 2010; 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 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: Section 1. That the City Council has reviewed the City Manager's recommended changes to the “2012 Proposed Appropriations” section of the Fort Collins 2011 and 2012 Biennial Budget (the “Biennial Budget”), as shown on pages 38 through 40 thereof, a copy of which Biennial Budget is on file with the office of the City Clerk, and hereby amends the Biennial Budget so as to reflect the following changes: 2012 Proposed Appropriations Amount of Existing Adjustments As Amended GENERAL FUND $103,002,311 $1,200,445 $104,202,756 ENTERPRISE FUNDS Golf $ 3,000,567 $ 3,000,567 Light & Power Operating 109,881,317 2,146,474 112,027,791 Capital: Electric Substations 725,000 725,000 Capital Total 725,000 725,000 Total Light & Power 110,606,317 2,146,474 112,752,791 Stormwater Operating 10,709,394 22,000 10,731,394 Capital: Asset Management 88,333 88,333 Boxelder Stormwater Authority 370,000 370,000 Cache La Poudre Drainage 0 1,000,000 1,000,000 Drainage & Detention System 370,000 370,000 Stormwater Developer Repays 95,000 95,000 Stormwater Master Planning 95,000 95,000 West Vine Basin 0 1,600,000 1,600,000 Capital Total 1,018,333 2,600,000 3,618,333 Total Stormwater 11,727,727 2,622,000 14,349,727 Wastewater Operating 18,277,139 18,277,139 Capital: Asset Management 88,334 88,334 Collection System Replacement 1,270,000 1,270,000 Collection System Study 50,000 50,000 Flow Monitoring Stations 75,000 75,000 Sludge Disposal Program 200,000 200,000 Water Reclamation Replacement Program 1,275,000 1,275,000 Capital Total 2,958,334 2,958,334 Total Wastewater 21,235,473 21,235,473 -2- Water Operating 26,202,294 88,054 26,290,348 Capital: Asset Management 88,333 88,333 Cathodic Protection 115,000 115,000 Distribution System Replacement 1,015,000 1,015,000 Engineering Distribution System Replacement 1,425,000 1,425,000 Halligan Reservoir Expansion 190,000 190,000 Water Meter Replacement & Rehabilitation 920,000 580,000 1,500,000 Water Production Replacement Program 1,340,000 1,340,000 Water Supply Development 100,000 100,000 Capital Total 5,193,333 580,000 5,773,333 Total Water 31,395,627 668,054 32,063,681 TOTAL ENTERPRISE FUNDS $177,965,711 $5,436,528 $183,402,239 INTERNAL SERVICE FUNDS Benefits $22,949,435 $22,949,435 Data & Communications 7,346,213 $810,597 8,156,810 Equipment 9,927,360 9,927,360 Self Insurance 3,259,300 3,259,300 Utility Customer Service & Administration 15,232,183 15,232,183 TOTAL INTERNAL SERVICE FUNDS $58,714,491 $810,597 $59,525,088 SPECIAL REVENUE & DEBT SERVICE FUNDS Capital Improvement Expansion $ 634,353 $ 634,353 Capital Leasing Corporation 5,299,731 5,299,731 Cemeteries 535,939 535,939 Cultural Services & Facilities 4,570,259 $2,400 4,572,659 Debt Service 355,300 355,300 General Employees' Retirement 3,076,450 3,076,450 Keeping Fort Collins Great Operating 17,738,693 17,738,693 Capital: City Bridge Program 564,931 564,931 Laporte-Whitcomb Bridge Replacement 670,000 670,000 Pedestrian Access 0 260,000 260,000 Trail Acquisition/Development 158,000 158,000 Capital Total 1,392,931 260,000 1,652,931 Total Keeping Fort Collins Great 19,131,624 260,000 19,391,624 Natural Areas 8,682,942 213,050 8,895,992 Perpetual Care 45,407 45,407 Recreation 6,416,093 6,416,093 Sales & Use Tax 11,428,000 365,000 11,793,000 Street Oversizing 3,046,663 3,046,663 -3- Timberline/Prospect SID 102,926 102,926 Transit Services 11,019,384 526,811 11,546,195 Transportation Services 22,711,173 182,500 22,893,673 TOTAL SPECIAL REVENUE & DEBT SERVICE FUNDS $97,056,244 $ 1,549,761 $98,606,005 CAPITAL IMPROVEMENT FUNDS General City Capital City Bridge Program $300,000 $300,000 Police Facility 750,000 (750,000) 0 Railroad Crossing Replacement 100,000 100,000 Total General City Capital $1,150,000 (750,000) $400,000 1/4 Cent Building on Basics Administration $35,961 $35,961 Bicycle Program Plan Implementation 125,000 125,000 Intersection Improvements and Traffic Signals 3,500,000 3,500,000 Pedestrian Plan and ADA Improvements 0 300,000 300,000 Senior Center Expansion 430,239 430,239 Total 1/4 Cent Building on Basics $ 4,091,200 300,000 $4,391,200 Conservation Trust Fund Administration $ 267,905 $ 267,905 Fossil Creek Trail 50,000 546,571 596,571 Open Space Acquisition 10,000 10,000 Trail Acquisition/Development 350,000 350,000 Transfer to General Fund-Parks Maintenance 1,276,717 (546,571) 730,146 Tri-City Trails 30,000 30,000 Total Conservation Trust Fund $1,984,622 0 $1,984,622 Neighborhood Parkland Fund Administration $ 406,087 $ 406,087 Equipment Replacement 15,000 15,000 New Park Site Acquisition 400,000 400,000 New Park Site Development 150,000 150,000 Richards Lake Park 200,000 200,000 Staley Neighborhood Park 400,000 400,000 Trailhead Park 300,000 300,000 -4- Total Neighborhood Parkland Fund $1,871,087 $1,871,087 TOTAL CITY FUNDS $445,835,666 $8,547,331 $454,382,997 Section 2. That there is hereby appropriated out of the revenues of the City, for the fiscal year beginning January 1, 2012, and ending December 31, 2012, the sum of FOUR HUNDRED FIFTY-FOUR MILLION THREE HUNDRED EIGHTY-TWO THOUSAND NINE HUNDRED NINETY-SEVEN DOLLARS ($454,382,997) 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 2012 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, 2011, 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, 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 1st day of November, A.D. 2011, and to be presented for final passage on the 15th day of November, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 15th day of November, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk -5-