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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/20/2015 - SECOND READING OF ORDINANCE NO. 123, 2015, APPROPRAgenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY October 20, 2015 City Council STAFF Lawrence Pollack, Budget & Performance Measurement Manager Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer SUBJECT Second Reading of Ordinance No. 123, 2015, Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated Amounts between Funds or Projects. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 6, 2015, combines dedicated and unanticipated revenues or reserves that need to be appropriated before the end of the year to cover the related expenses that were not anticipated and, therefore, not included in the 2015 annual budget appropriation. The unanticipated revenue is primarily from fees, charges, rents, contributions and grants that have been paid to City departments to offset specific expenses. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 6, 2015 (PDF) 2. Ordinance No. 123, 2015 (PDF) Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY October 6, 2015 City Council STAFF Lawrence Pollack, Budget & Performance Measurement Manager Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 123, 2015, Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated Amounts between Funds or Projects. EXECUTIVE SUMMARY The purpose of this annual budget adjustment ordinance is to combine dedicated and unanticipated revenues or reserves that need to be appropriated before the end of the year to cover the related expenses that were not anticipated and, therefore, not included in the 2015 annual budget appropriation. The unanticipated revenue is primarily from fees, charges, rents, contributions and grants that have been paid to City departments to offset specific expenses. BACKGROUND / DISCUSSION This Ordinance appropriates prior year reserves and unanticipated revenue in various City funds, and authorizes the transfer of appropriated amounts between funds. The City Charter permits the City Council to provide, by ordinance, for payment of any expense from prior year reserves. The Charter also permits the City Council to appropriate unanticipated revenue received as a result of rate or fee increases or new revenue sources. Additionally, it authorizes the City Council to transfer any unexpended appropriated amounts from one fund to another upon recommendation of the City Manager, provided that the purpose for which the transferred funds are to be expended remains unchanged; the purpose for which they were initially appropriated no longer exists; or the proposed transfer is from a fund or capital project account in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance. The following changes have been made since these requests were reviewed by the City Council Finance Committee:  $700,000 – added for needed transfer from the General Fund to the Self Insurance Fund (this is a requirement of governmental fund accounting, and no additional expenses are associated with this transfer).  $39,089 – items D3 ($5,225) and D4 ($33,864) below were inadvertently left out of the City Council Finance Committee review. If any of the appropriations included in this AIS are not approved, the City will have to reduce expenditures even though revenue and reimbursements have been received to cover those expenditures. The table below is a summary of the expenses in each fund that make up the increase in requested appropriations. Also included are intra-fund transfers which do not increase total appropriations, but per the City Charter require City Council approval to make the transfer. A table with the specific use of prior year reserves appears at the end of the AIS. ATTACHMENT 1 Agenda Item 8 Item # 8 Page 2 Funding Unanticipated Revenue Prior Year Reserves Transfers between Funds TOTAL General Fund $1,256,224 $1,142,913 $0 $2,399,137 Sales & Use Tax Fund $0 $2,678,088 $0 $2,678,088 Benefits Fund $0 $1,900,000 $0 $1,900,000 Capital Projects Fund $135,884 $0 $373,157 $509,041 Equipment Fund $82,485 $0 $0 $82,485 Golf Fund $149,000 $0 $0 $149,000 Natural Areas Fund $64,209 $0 $1,339,044 $1,403,253 Recreation Fund $202,709 $17,000 $0 $219,709 Street Oversizing $0 $34,157 $0 $34,157 Self Insurance Fund $0 $0 $700,000 $700,000 Transit Services Fund $1,295,220 $0 $0 $1,295,220 Transportation Fund $553,000 $1,525,667 $0 $2,078,667 Transportation Fund (Snow Removal) $0 $500,000 $0 $500,000 GRAND TOTAL $3,738,731 $7,797,825 $2,412,201 $13,948,757 A. GENERAL FUND 1. Fort Collins Police Services (FCPS) has received revenue from various sources which need to be appropriated to cover the related expenditures. A listing of these items follows: a. $34,711 – In 2015 Police received an additional award from the Rocky Mountain High Drug Trafficking Area for $34,711. The funding was used to offset some of the costs for a case worked by the Northern Colorado Drug Task Force. b. $6,660 – 2015 Seatbelt Grant - In 2015, Fort Collins Police received a grant from the Colorado Department of Transportation for two waves of Seatbelt Enforcement. The grant paid for officers to work overtime to conduct enforcement activities. c. $16,544 – 2015 High Visibility DUI Grant – In 2015, Fort Collins Police received $16,544 in grant funds from the Colorado Department of Transportation to pay for overtime for DUI enforcement. d. $7,027 – 2014 Law Enforcement Assistance Funds (LEAF) DUI Grant - For the January through June 2015 timeframe, Fort Collins Police received $7,027 in grant funding from the Colorado Department of Transportation to pay for overtime for DUI enforcement through June 30, 2015. e. $143,750 – Police Overtime and Straight Time Reimbursement - In 2015, Police Services received reimbursement from various entities for overtime expenses. The different activities include: CSU football traffic control, Tour De Fat, Brew Fest, New West Fest, regional auto theft case investigations, Poudre School District school board meetings, MAX implementation, and noise ordinance violation workshops. Additionally, in 2015 FCPS partnered with Larimer County to staff events at The Ranch. Additionally, Police Services implemented a new CAD system in conjunction with Larimer County where a significant amount of overtime was incurred to install the system, troubleshoot problems and train staff. f. $54,875 – Police Report Fees - Police reports purchased by the public and insurance agencies generate revenue of approximately $7.50 a report. For 2015, it is estimated that $54,875 will be collected. The revenue from this fee is used to subsidize the cost of copy machine rental expenses. g. $23,640 – Poudre Valley Hospital Dispatch Contract Revenue (PVH) - This request is to appropriate revenue received from PVH that is in excess of what was estimated. Every year the hospital contracts with FCPS to provide dispatch service. The contracted amount is based on the total budget multiplied Agenda Item 8 Item # 8 Page 3 by the percentage of calls received for ambulance service. The revenue was used in 2015 to pay for Fort Collins 911 Center maintenance expenses. h. $174,963 - Larimer County Share of CRISP Maintenance Costs - The IGA between The City of Fort Collins and Larimer County states that Larimer County will pay for 50% of the annual maintenance agreement for the Tiburon/CAD system. In prior years, the City only expensed half the contract cost, as that was the net expense to the City. Starting with 2015, the City will recognize the full expense for the contract as well as the revenue from the county. This change was made after the adoption of the 2015 budget, therefore additional appropriation needs to be made to allow the City to pay the full amount. FROM: Unanticipated Revenue (Miscellaneous Police) $397,228 FROM: Unanticipated Revenue (High Intensity Drug Traffic Grant) $34,711 FROM: Unanticipated Revenue (2015 Seatbelt Grant) $6,660 FROM: Unanticipated Revenue (2015 High Visibility DUI Grant) $16,544 FROM: Unanticipated Revenue (2014 LEAF DUI Grant) $7,027 FOR: Police Services $198,625 FOR: Fort Collins 911 Center Maintenance expenses $23,640 FOR: Tiburon/CAD system $174,963 FOR: High Intensity Drug Traffic Grant $34,711 FOR: Seatbelt Grant $6,660 FOR: High Visibility DUI Grant $16,544 FOR: LEAF DUI Grant $7,027 2. Operation Services is requesting funds for: a. $23,451 - Investigation Replacement Unit - Police Investigation totaled a unit this spring (not a patrol vehicle). We are requesting a budget increase for the cost of a Nissan Leaf that replaced the vehicle. We will be using insurance money to pay for the Leaf. b. $37,853 - Police Patrol Replacement Unit - Police Patrol totaled a unit this spring. We are requesting a budget increase for the cost of a new patrol vehicle that replaced the totaled vehicle. We will be using insurance money to pay the expense of the new vehicle and equipment. c. $75,000 - Building Repair and Maintenance (BRM) Additional Revenue and Expense - Unanticipated revenue from work that was not planned in non-general fund departments. We are requesting $75,000 appropriation for this additional revenue. FROM: Unanticipated Revenue (insurance proceeds) $61,304 FROM: Unanticipated Revenue (WFO) $75,000 FOR: Police Vehicle Purchases $61,304 FOR: WFO Building Repair and Maintenance $75,000 3. This request is to appropriate $389,913 to cover the payment of rebates made in 2015. In accordance with Chapter 25, Article II, Division 5, Manufacturing Equipment Use Tax Rebates were paid out in August 2015 for the 2013 rebate program. The rebate program was established to encourage investment in new manufacturing equipment by local manufacturing firms. Vendors have until December 31st of the following year to file for the rebate. This item appropriates the use tax funds to cover the payment of the rebates. FROM: Prior Year Reserves (Manufacturing Use Tax Rebate) $389,913 FOR: Manufacturing Use Tax Rebates $389,913 4. This request is to appropriate $700,000 from General Fund reserves for payouts on claims incurred over this and previous years that resulted in payments of substantial legal fees and claims settlements. The budgeted amount of $1,200,000 in 2015, based upon our experience in previous years, will not be adequate to cover 2015 expenses and all claim payments incurred in 2015 regardless of their year of Agenda Item 8 Item # 8 Page 4 occurrence. The projection is based upon a review of five prior years plus current year to date claims information as well as external actuarial reports. As an internal services department, revenue in the form of department allocations is not adequate to cover claim payments which will be addressed in the next budget cycle. A supplemental appropriation of $700,000 is being requested for 2015. FROM: Prior Year Reserves $700,000 FOR: Transfer to Self Insurance Fund $700,000 5. Environmental Services sells radon test kits at cost as part of its program to reduce lung cancer risk from in-home radon exposure. This appropriation would recover kit sales revenue for the purpose of restocking radon test kits. FROM: Unanticipated Revenue (from radon kit sales) $4,276 FOR: Radon Test Kits $4,276 6. The City of Fort Collins received the David R. Keller Prize for Innovation in Sustainability for adopting updated, ambitious community greenhouse gas goals in March 2015. The $5,000 cash award will be used to support the work being done by A-Train Marketing Communications Inc. to develop messaging to inspire community action to reduce greenhouse gas emissions. FROM: Unanticipated Revenue (grants) $5,000 FOR: Reduction of Greenhouse Gas Emissions projects $5,000 7. In 2015, the City of Fort Collins received $500,000 in Brownsfield grant funds from the Environmental Protection Agency to conduct environmental assessments of property within the City and County. These funds have been targeted for assessments in the North College Urban Renewal Area and River District portion of Old Town. Partners on the grant include the Downtown Development Authority and Larimer County. This is a reimbursable grant. FROM: Unanticipated Revenue (grants) $500,000 FOR: Environmental assessments in the North College Urban Renewal $500,000 Area and River District portion of Old Town 8. The Forestry Department requests to appropriate unanticipated revenue from reimbursement claims for damages to trees caused by accidents. FROM: Unanticipated Revenue $2,809 FOR: Forestry Maintenance $2,809 9. The Gardens on Spring Creek request appropriations of unanticipated revenues. Revenues increased beyond projections due to increased programs such as the Spring Plant Sale and Youth Summer Camps and increased donations due to the popularity of the Gardens. Appropriations are needed for the additional cost of expanded programs including staffing, supplies, credit card fees, etc. FROM: Unanticipated Revenue $49,000 FOR: Gardens on Spring Creek Programs and Operations $49,000 10. Pursuant to state law, District 6 candidate Carl Wangsvick requested and paid for a recount of the votes cast in the District 6 Council race. The actual cost of that recount was $8,902. This appropriates those funds into the City Clerk's Election budget to offset the recount expenses. FROM: Unanticipated Revenue $8,902 FOR: Election Recount Expenses $8,902 11. This request is intended to cover expenses related to land bank property maintenance needs for 2015. As expenses vary from year-to-year, funding is requested annually mid-year to cover these costs. Expenses Agenda Item 8 Item # 8 Page 5 for 2015 include general maintenance of properties, raw water and sewer expenses, market analysis and property appraisals. In addition, substantial deferred maintenance must be completed before a land bank property can be rented out again. This land bank parcel is being held for future development, which is not likely to occur for at least two years. FROM: Prior Year Reserves (Land Bank Reserve) $53,000 FOR: Land Bank Expenses $53,000 12. The Fort Collins Convention and Visitors Bureau (FCCVB) has been awarded an $87,764 grant from the Colorado Welcome Center through the State of Colorado. These funds will be disbursed by the State of Colorado and directed through the City of Fort Collins, pursuant to State of Colorado requirements, then paid to the FCCVB. The grant period will run from July 1, 2015 through June 30, 2016. FROM: Unanticipated Revenue (grant) $87,764 FOR: Fort Collins Convention and Visitors Bureau $87,764 B. SALES AND USE TAX FUND 1. The sales and use tax revenue received in 2014 was higher than projected and existing appropriations were not adequate to make the full transfer from the Sales and Use Tax Fund to the Capital Projects Fund for the one quarter cent Building on Basics tax, and to the Natural Areas Fund for the one quarter cent Natural Areas tax. Adjustments to other funds are not needed because the tax revenues are recorded directly into those funds. This item appropriates additional funds in the amount of $2,678,088 from prior year reserves for transfer from the Sales and Use Tax Fund to the Capital Projects Fund for the Building on Basics tax of $1,339,044, and for transfer to the Natural Areas Fund for the Natural Areas tax of $1,339,044. FROM: Prior Year Reserves (Sales & Use Tax Fund) $2,678,088 FOR: Transfer to Capital Projects - Building on Basics $1,339,044 FOR: Transfer to Natural Areas Fund $1,339,044 C. BENEFITS FUND 1. An additional appropriation of approximately $1.9M is requested from reserves in the Benefits Fund. Benefit costs are increasing greater than anticipated, driven by both additional staff covered by the Affordable Health Care Act in 2015/16 and claims costs continuing to grow at a greater rate than forecasted. On average, medical claims grew approximately 5.5% per year from 2009 through 2012. In 2013 and 2014, claims increased 9% and 7.5% respectively. In looking at the first eight months of 2015, the growth in medical claims is trending toward an increase in excess of 8% or more, compared to 2014. Claims expenditures are projected to exceed budgeted appropriations by $1.7M. Additional appropriations of approximately $200,000 are also needed to cover estimated fees associated with the Affordable Care Act (“ACA”). It is anticipated that the additional request of $1.9M will not adversely affect the minimum fund balance requirement necessary at the end of 2015. FROM: Prior Year Reserves $1,900,000 FOR: Benefits Fund Expenses $1,900,000 D. CAPITAL PROJECTS FUND 1. As part of the Lincoln Avenue Improvements Project, additional funds have been received from 2 developers, Odell Brewing Co. and McKee Brothers, Inc., as payment to construct the local street improvements for Lincoln Avenue adjacent to Odell Brewing Co. and In-Situ Subdivision. (See Street Oversizing Fund Item #I1) FROM: Unanticipated Revenue (Contributions in Aid) $96,795 FROM: Transfer from the Street Oversizing Fund $34,157 Agenda Item 8 Item # 8 Page 6 FOR: Construction of local street improvements for Lincoln Ave. $130,952 adjacent to Odell Brewing Co. and In-Situ Subdivision. 2. This item is related to the EPIC water quality and bulkhead improvements. Currently $339,000 resides in the Facilities operating budget. Since this is a capital project, we are requesting it to be transferred to the Capital Projects Fund. This allows us to have the entire cost of the project budgeted in one Capital Project. There is no increase to the Citywide appropriation. (See General Fund Item #2a). FROM: Transfer from General Fund (Op Svcs) $339,000 FOR: EPIC Water Quality and Bulkhead Improvements $339,000 3. As part of the Willow Street River District Improvements Project, additional funds have been received from the developer as payment to construct the local street improvements adjacent to the site that were completed by the City at 400 Linden Street. FROM: Unanticipated Revenue (developer payment) $5,225 FOR: Willow Street River District Improvements Project $5,225 4. As part of the North College Avenue, Phase III, Conifer to Willox Project, additional funds have been received from the property owner at 900 North College Avenue for right-of-way purchase and the cost for the local street obligation. FROM: Unanticipated Revenue (property owner funds) $33,864 FOR: N. College Ave., Phase III, Conifer to Willox Project $33,864 E. EQUIPMENT FUND 1. Appropriation of unanticipated grant revenue from the Regional Air Quality Council to purchase Compressed Natural Gas (CNG) vehicles: One semi-tractor, four tandem dump trucks, and two Utility Line trucks. The total amount of grant funding is $82,485 with a 20% match covered by the departments’ existing appropriations. This is a reimbursable grant. FROM: Unanticipated Revenue (grant) $82,485 FROM: CNG Vehicles $82,485 F. GOLF FUND 1. This item is to appropriate unanticipated revenue in the Golf Fund to replace the three range ball machines that are 15 to 20 years old. New technology in range ball machines will allow interfacing with the City's GolfTrac System, provide reports on use, improve overall accountability and internal controls over the driving range revenue, and improve customer service. With improved accountability and internal controls, revenue increases should provide a full return of this investment within the next five years. The current machines are not reliable and any issues with the machines will impact customer service. This is an immediate unanticipated issue that needs to be address by year end. This request includes electrical work that needs to be done at each course to accommodate the machines and the cost of the machines. FROM: Unanticipated Revenue $58,000 FOR: Golf Driving Range Ball Machines $58,000 2. During 2014 all golf pro contracts and the Collindale restaurant concessionaire contract were renegotiated. Several unanticipated expenses have occurred due to these contract negotiations and the Golf Division’s assuming full responsibility and control over the three driving ranges. Unanticipated projects included carpet at Collindale as part of the negotiation with Potts - $26,000, renovation of the SouthRidge driving range, which was a necessary improvement for the City to maximize its revenues and improve customer service - $19,000, and replacement of the rangeball picker machine at Collindale - $11,000. It was also determined this summer that the kitchen floor and drain at the Collindale Clubhouse has been leaking into Agenda Item 8 Item # 8 Page 7 the basement ceiling. The drain and the tile floor need to be resealed to eliminate the leaking. This work needs to occur during warm weather for proper ventilation and the clubhouse will need to be closed to the public for approximately one week during this time. It is the least impactful to the golfing community if the clubhouse is closed this fall instead of next spring. This issue is unanticipated and needs to be mitigated as soon as possible. The cost is estimated to be $35,000. Unanticipated 2015 revenue in the Golf Fund will be used to cover these costs. FROM: Unanticipated Revenue $91,000 FOR: Carpet at Collindale $26,000 FOR: Renovation of Southridge Driving Range $19,000 FOR: Replacement of Rangeball Picker Machine at Collindale $11,000 FOR: Kitchen Drain and Tile Floor Resealing at Collindale Clubhouse $35,000 G. NATURAL AREAS FUND 1. The sales and use tax revenue received in 2014 was higher than projected and existing appropriations were not adequate to make the full transfer from the Sales and Use Tax Fund to the Natural Areas Fund for the one quarter cent Natural Areas tax. (See Sales & Use Tax Fund Item #1) This item appropriates funds in the amount of $1,339,044 transferred from the Sales and Use Tax Fund to the Natural Areas Fund for Land Conservation expenses. FROM: Unanticipated Revenue (Transfer In) $1,339,044 FOR: Natural Areas Expenses $1,339,044 2. The City of Fort Collins Natural Areas Department has been awarded a grant of $10,000 from the History Colorado State Historical Fund. The grant will be used to fund a Historic Structure Assessment of the Great Western Sugar Company Effluent Flume and Bridge, which spans the Cache la Poudre River on Kingfisher Point Natural Area. The Historic Structure Assessment will be performed by an engineering firm with experience in restoration of historic structures and will take approximately 6 months to complete. FROM: Unanticipated Revenue (grant) $10,000 FOR: Historic Structure Assessment of the Great Western $10,000 Sugar Company Effluent Flume and Bridge 3. Grant from Rocky Mountain Bird Observatory for revegetation of Sterling Natural Area for the purposes of grading important bird habitat. FROM: Unanticipated Revenue (grant) $4,209 FOR: Revegetation of Sterling Natural Area $4,209 4. Wetlands for Wildlife Grant for work done at the Shields Pit Restoration project. FROM: Unanticipated Revenue (grant) $50,000 FOR: Shields Pit Restoration Project $50,000 H. RECREATION FUND 1. The purpose of this item is to appropriate sub-grant funds from the Colorado Department of Public Health and Environment through Poudre Valley Health Foundation and the Coalition for Activity and Nutrition to Defeat Obesity (CANDO). The Vida Sana Program addresses health disparities among community members in Fort Collins. Specific interventions include providing culturally congruent exercise programming through the Northside Aztlan Community Center. The grant is reimbursable upon expenditure by Recreation. FROM: Unanticipated Revenue (grant) $64,709 FOR: Vida Sana Recreation Programs $64,709 Agenda Item 8 Item # 8 Page 8 2. Fitness programs at Northside Aztlan and the newly expanded Senior Center have been very successful this year which increased revenues and created related increases in expenses. The Trips and Travel program geared to the 50+ population has also been successful. The additional expenses are offset by an increase in revenue through participation fees. FROM: Unanticipated Revenue $138,000 FOR: Recreation Programs $138,000 3. The purpose of this item is to appropriate $17,000 in interest earnings received in December 2014 from the Community Foundation of Northern Colorado - Senior Center Endowment Fund to replace chairs at the Senior Center. FROM: Prior Year Reserves $17,000 FOR: Chair Replacement at Senior Center $17,000 I. STREET OVERSIZING FUND 1. As part of the Lincoln Avenue Improvements Project, additional funds have been received from 2 developers, Odell Brewing Co. and McKee Brothers, Inc., as payment to construct the local street improvements for Lincoln Ave. adjacent to Odell Brewing Co. and In-Situ Subdivision. This appropriation is for the transfer of previously received funds from the Street Oversizing Fund to the Capital Projects fund to be used for Lincoln Avenue improvements. (See Sales & Use Tax Fund Item #1) FROM: Prior Year Reserves $34,157 FOR: Transfer to the Capital Projects Fund $34,157 J. TRANSIT SERVICES FUND 1. The City of Fort Collins has entered into agreements with each of its three Transportation Management Area (TMA) partners (Loveland, Berthoud, and the North Front Range Metropolitan Planning Organization (NFRMPO)) to transfer local funds to the partners in exchange for the partner's allocation of federal formula funding. These agreements are specific to Federal Fiscal Year (FFY) 2015 FTA Section 5307 and Section 5339 formula grants. This request for additional appropriations to match the sum of the agreed- upon local funds exchange is fully funded with additional federal funding. FROM: Unanticipated Revenue (grant) $1,230,505 FOR: Pass-Thru Funding to Transportation Management Area $1,230,505 2. The City of Fort Collins is the recipient of $40,000 in unanticipated 2015 FTA Section 5304 funds administered by CDOT. The funding was awarded to the City, in a competitive grant award process by CDOT, to fund, at an 80% capital match ratio, a comprehensive route improvement study. FROM: Unanticipated Revenue (grant) $40,000 FOR: Comprehensive Route Improvement Study $40,000 3. Transfort has entered into an agreement with Colorado State University (CSU) to provide additional service for the HORN bus route. This request will fund the first half of the 2015-2016 school year with a further request due in 2016 for the entirety of additional service in 2016. FROM: Unanticipated Revenue (CSU) $24,715 FOR: HORN Bus Route Service $24,715 Agenda Item 8 Item # 8 Page 9 K. TRANSPORTATION SERVICES FUND 1. The PVH and MCR Foundation provided $3,000 to be used to support the FC Bikes Bicycle Ambassador Program. This funding will support bicycle education and outreach initiatives to advance bicycle safety in Fort Collins. FROM: Unanticipated Revenue (grant) $3,000 FOR: FC Bikes Bicycle Ambassador Program $3,000 2. The Planning, Development and Transportation Work for Others is a self-supported program for all “Work for Others” (WFO) activities within Streets, Traffic and Engineering. Expenses are tracked and billed out to other City departments, Poudre School District, CSU, CDOT, Larimer County, developers and other public agencies. The original budget of $2,943,000 was an estimate based on scheduled projects. Additional unanticipated projects were added in 2015. In addition, the Streets Department is anticipating traffic control and patching projects for other departments similar to 2014. Additional appropriations of $550,000 are needed to cover labor, material and equipment costs that will be recovered upon completion of the various projects. FROM: Unanticipated Revenue (WFO) $550,000 FOR: Traffic Construction $250,000 FOR: Streets WFO $300,000 3. The Parking Fund was created in 2015 to segregate parking revenues and expenditures that were previously reported in the Transportation Fund. This provides greater transparency for Parking activities. This action transfers prior year reserves previously identified for Parking from the Transportation Fund to the Parking Fund in the amount of $1,525,667. FROM: Prior Year Reserves (Parking) $1,525,667 FOR: Transfer to the Parking Fund $1,525,667 4. Due to the number of storms in January and February 2015, the 2015 snow budget has been depleted. There were ten storms and approximately 20” of snow in this timeframe. February 2015 had the heaviest snowfall since 1923. Extensive ice cutting was required because of the weather pattern. Warmer days, bitter cold nights, and waves of freezing rain or snow every few days caused ice to build up in gutters blocking drainage and causing ice dams and ice potholes. Clearing sidewalks and pedestrian access ramps also significantly impacted the snow removal budget. Additional funding of $500,000 is needed to provide snow removal services during the winter months of October through December 2015. This will cover labor, equipment and materials. FROM: Prior Year Reserves $500,000 FOR: Snow Removal $500,000 L. SELF INSURANCE FUND 1. This request is to appropriate $700,000, transferred from General Fund reserves, for payouts on claims incurred over this and previous years that resulted in payments of substantial legal fees and claims settlements. The budgeted amount of $1,200,000 in 2015, based upon our experience in previous years, will not be adequate to cover 2015 expenses and all claim payments incurred in 2015 regardless of their year of occurrence. The projection is based upon a review of five prior years plus current year to date claims information as well as external actuarial reports. As an internal services department, revenue in the form of department allocations is not adequate to cover claim payments which will be addressed in the next budget cycle. A supplemental appropriation of $700,000 is being requested for 2015. FROM: Transfer from the General Fund $700,000 FOR: Settlement and Claims $700,000 Agenda Item 8 Item # 8 Page 10 FINANCIAL / ECONOMIC IMPACTS This Ordinance increases total City 2015 appropriations by $13,948,757. Of that amount, this Ordinance increases General Fund 2015 appropriations by $2,399,137 including use of $1,142,913 in prior year reserves. Funding for the total City appropriations is $3,738,731 from unanticipated revenue, $7,797,825 from prior year reserves, and $2,412,201 transferred from other funds. The following is a summary of the items requesting prior year reserves: Item # Fund Use Amount A3 General Manufacturing Equipment Use Tax Rebate $389,913 A4 General 2015 higher than anticipated payouts on claims incurred over this and previous years 700,000 A11 General Land Bank Property Maintenance 53,000 B1 Sales & Use Tax Transfer of 2014 sales tax revenue for BOB and Natural Areas 2,678,088 C1 Benefits Additional Benefits costs 1,900,000 H3 Recreation Appropriate interest earnings from the Community Foundation of Northern Colorado - Senior Center Endowment Fund to replace chairs at the Senior Center 17,000 I1 Street Oversizing Lincoln Ave. Improvements, 1st to Lemay Project - additional funds from developers transfer to Capital Projects Fund 34,157 K3 Transportation Parking Fund - transfers prior year reserves previously identified for Parking from the Transportation Fund to the Parking Fund 1,525,667 K4 Transportation Snow Removal 500,000 Total Use of Prior Year Reserves: $7,797,825 - 1 - ORDINANCE NO. 123, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES AND UNANTICIPATED REVENUE IN VARIOUS CITY FUNDS AND AUTHORIZING THE TRANSFER OF APPROPRIATED AMOUNTS BETWEEN FUNDS OR PROJECTS WHEREAS, the City has unanticipated revenue and prior year reserves available to appropriate; and WHEREAS, in accordance with Article V, Section 8(b) of the City Charter, any expense or liability entered into by an agent of the City, on behalf of the City, shall not be made unless an appropriation therefor shall have been made by the City Council; 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 9, of the City Charter also permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered amount or portion thereof from one fund or capital project to another fund or capital project, provided the purpose for which the transferred funds are to be expended remains unchanged; and WHEREAS, the City wishes to provide for the expenditures listed below and the City Manager recommends that these expenditures be made. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the following funds are hereby authorized for transfer and appropriated for expenditure for the purposes stated below: A. GENERAL FUND 1. APP. FROM: Unanticipated Revenue (Miscellaneous Police) $397,228 APP. FROM: Unanticipated Revenue (High Intensity Drug Traffic Grant) $34,711 APP. FROM: Unanticipated Revenue (2015 Seatbelt Grant) $6,660 APP. FROM: Unanticipated Revenue (2015 High Visibility DUI Grant) $16,544 APP. FROM: Unanticipated Revenue (2014 LEAF DUI Grant) $7,027 FOR: Police Services $198,625 FOR: Fort Collins 911 Center Maintenance expenses $23,640 FOR: Tiburon/CAD system $174,963 FOR: High Intensity Drug Traffic Grant $34,711 FOR: Seatbelt Grant $6,660 - 2 - FOR: High Visibility DUI Grant $16,544 FOR: LEAF DUI Grant $7,027 2. APP. FROM: Unanticipated Revenue (insurance proceeds) $61,304 APP. FROM: Unanticipated Revenue (Work for Others “WFO”) $75,000 FOR: Police Vehicle Purchases $61,304 FOR: WFO Building Repair and Maintenance $75,000 3. APP. FROM: Prior Year Reserves (Manufacturing Use Tax Rebate) $389,913 FOR: Manufacturing Use Tax Rebates $389,913 4. APP. FROM: Prior Year Reserves $700,000 FOR: Transfer to the Self Insurance Fund $700,000 5. APP. FROM: Unanticipated Revenue (from radon kit sales) $4,276 FOR: Radon Test Kits $4,276 6. APP. FROM: Unanticipated Revenue (grants) $5,000 FOR: Reduction of Greenhouse Gas Emissions projects $5,000 7. APP. FROM: Unanticipated Revenue (grants) $500,000 FOR: Environmental assessments in the North College Urban Renewal $500,000 Area and River District portion of Old Town 8. APP. FROM: Unanticipated Revenue $2,809 FOR: Forestry Maintenance $2,809 9. APP. FROM: Unanticipated Revenue $49,000 FOR: Gardens on Spring Creek Programs and Operations $49,000 10. APP. FROM: Unanticipated Revenue $8,902 FOR: Election Recount Expenses $8,902 11. APP. FROM: Prior Year Reserves (Land Bank Reserve) $53,000 FOR: Land Bank Expenses $53,000 12. APP. FROM: Unanticipated Revenue (grant) $87,764 FOR: Fort Collins Convention and Visitors Bureau $87,764 B. SALES & USE TAX FUND 1. APP. FROM: Prior Year Reserves (Sales & Use Tax Fund) $2,678,088 FOR: Transfer to Capital Projects - Building on Basics $1,339,044 FOR: Transfer to Natural Areas Fund $1,339,044 - 3 - C. BENEFITS FUND 1. APP. FROM: Prior Year Reserves $1,900,000 FOR: Benefits Fund Expenses $1,900,000 D. CAPITAL PROJECTS FUND 1. APP. FROM: Unanticipated Revenue (Contributions in Aid) $96,795 APP. FROM: Transfer from the Street Oversizing Fund $34,157 FOR: Construction of local street improvements for Lincoln Ave. $130,952 adjacent to Odell Brewing Co. and In-Situ Subdivision 2. APP. FROM: Transfer from General Fund (Op Svcs) $339,000 FOR: EPIC Water Quality and Bulkhead Improvements $339,000 3. APP. FROM: Unanticipated Revenue (developer payment) $5,225 FOR: Willow Street River District Improvements Project $5,225 4. APP. FROM: Unanticipated Revenue (property owner funds) $33,864 FOR: N. College Ave., Phase III, Conifer to Willox Project $33,864 E. EQUIPMENT FUND 1. APP. FROM: Unanticipated Revenue (grant) $82,485 APP. FROM: Compressed Natural Gas Vehicles $82,485 F. GOLF FUND 1. APP. FROM: Unanticipated Revenue $58,000 FOR: Golf Driving Range Ball Machines $58,000 2. APP. FROM: Unanticipated Revenue $91,000 FOR: Carpet at Collindale $26,000 FOR: Renovation of Southridge Driving Range $19,000 FOR: Replacement of Rangeball Picker Machine at Collindale $11,000 FOR: Kitchen Drain and Tile Floor Resealing at Collindale Clubhouse $35,000 G. NATURAL AREAS FUND 1. APP. FROM: Unanticipated Revenue (Transfer In) $1,339,044 FOR: Natural Areas Expenses $1,339,044 2. APP. FROM: Unanticipated Revenue (grant) $10,000 FOR: Historic Structure Assessment of the Great Western $10,000 Sugar Company Effluent Flume and Bridge 3. APP. FROM: Unanticipated Revenue (grant) $4,209 FOR: Revegetation of Sterling Natural Area $4,209 - 4 - 4. APP. FROM: Unanticipated Revenue (grant) $50,000 FOR: Shields Pit Restoration Project $50,000 H. RECREATION FUND 1. APP. FROM: Unanticipated Revenue (grant) $64,709 FOR: Vida Sana Recreation Programs $64,709 2. APP. FROM: Unanticipated Revenue $138,000 FOR: Recreation Programs $138,000 3. APP. FROM: Prior Year Reserves $17,000 FOR: Chair Replacement at Senior Center $17,000 I. STREET OVERSIZING FUND 1. APP. FROM: Prior Year Reserves $34,157 FOR: Transfer to the Capital Projects Fund $34,157 J. TRANSIT SERVICES FUND 1. APP. FROM: Unanticipated Revenue (grant) $1,230,505 FOR: Pass-Thru Funding to Transportation Management Area $1,230,505 2. APP. FROM: Unanticipated Revenue (grant) $40,000 FOR: Comprehensive Route Improvement Study $40,000 3. APP. FROM: Unanticipated Revenue (Colorado State University) $24,715 FOR: HORN Bus Route Service $24,715 K. TRANSPORTATION SERVICES FUND 1. APP. FROM: Unanticipated Revenue (grant) $3,000 FOR: FC Bikes Bicycle Ambassador Program $3,000 2. APP. FROM: Unanticipated Revenue (Work for Others “WFO”) $550,000 FOR: Traffic Construction $250,000 FOR: Streets WFO $300,000 3. APP. FROM: Prior Year Reserves (Parking) $1,525,667 FOR: Transfer to the Parking Fund $1,525,667 4. APP. FROM: Prior Year Reserves $500,000 FOR: Snow Removal $500,000 - 5 - L. SELF INSURANCE FUND 1. APP. FROM: Transfer from the General Fund $700,000 FOR: Settlement and Claims $700,000 Introduced, considered favorably on first reading, and ordered published this 6th day of October, A.D. 2015, and to be presented for final passage on the 20th day of October, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 20th day of October, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk