HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/17/2017 - FIRST READING OF ORDINANCE NO. 009, 2017, APPROPRIAgenda Item 7
Item # 7 Page 1
AGENDA ITEM SUMMARY January 17, 2017
City Council
STAFF
Jon Haukaas, Water Engr Field Operations Mgr
Lance Smith, Utilities Strategic Finance Director
Ken Sampley, Stormwater/Floodplain Program Mgr
SUBJECT
First Reading of Ordinance No. 009, 2017, Appropriating Prior Year Reserves in the Storm Drainage Fund to
Pay 2017 Fees for the City of Fort Collins Areas within the Boxelder Basin Regional Stormwater Authority.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate $330,000 from prior year reserves in the Storm Drainage Fund to
pay stormwater service and stormwater system development fees in advance to the Boxelder Basin Regional
Stormwater Authority (BBRSA) for those developed areas of the City of Fort Collins that also are located within
the BBRSA service area boundary based on existing development (i.e., impervious surface area) conditions.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The BBRSA was established by Intergovernmental Agreement dated August 20, 2008 (IGA) to protect life
safety, reduce 100-year floodplain extents, protect existing structures (including schools and critical facilities),
protect existing residences and businesses, reduce flood overtopping of 33 roads and 4 irrigation canals,
reduce the costs to construct new stormwater infrastructure, improve emergency response, and reduce
flooding on currently undeveloped areas that regional planning shows will be developed in the future.
Providing regional stormwater improvements to increase life safety and reduce flooding of properties is a major
positive factor for the entire region.
Fort Collins Utilities collects stormwater utility fees citywide (including within the BBRSA service boundary)
based on the fee schedule for residential and commercial properties. The BBRSA also has adopted a fee
schedule based on the rate structure outlined in the IGA that describes how fees are to be calculated for the
areas within its boundaries. The City of Fort Collins pays these fees from collected stormwater revenues in the
year after they are collected (i.e., 2016 fees are paid in early 2017). This is done so that any additional
stormwater system development fees [typically called Plant Investment Fees (PIFs)] and growth related fee
increases can be included in the annual payment.
The BBRSA Board of Directors has suggested that it may be helpful for its members to pay their 2017
estimated annual stormwater service and system development fees in advance based on existing conditions
and then pay for the growth related portions in the following year. This, in effect, has the members paying both
the 2016 fees and the 2017 fees in early 2017.
Only a single year’s estimated payment (budgeted at $350,000) was included in the Budgeting for Outcomes
(BFO) process this cycle. Therefore, the additional funding needs to be appropriated from prior year reserves
to make this payment.
Agenda Item 7
Item # 7 Page 2
CITY FINANCIAL IMPACTS
As of December 31, 2015, available reserves in the Storm Drainage fund were $4.1M and are estimated to
increase slightly; therefore, adequate funding is available for this appropriation.
PUBLIC OUTREACH
The option to pay in advance has been discussed at the BBRSA Board meetings.
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ORDINANCE NO. 009, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE STORM DRAINAGE
FUND TO PAY 2017 FEES FOR THE CITY OF FORT COLLINS AREAS
WITHIN THE BOXELDER BASIN REGIONAL STORMWATER AUTHORITY
WHEREAS, the Boxelder Basin Regional Stormwater Authority (“BBRSA”) was
established in 2008 by Larimer County, the City of Fort Collins and the Town of Wellington to
protect life safety, reduce 100-year floodplain extents, protect existing structures, protect existing
residences and businesses, reduce flood overtopping of 33 roads and 4 irrigation canals, reduce
the costs to construct new stormwater infrastructure, improve emergency response, and reduce
flooding on currently undeveloped areas that regional planning shows will be developed in the
future; and
WHEREAS, Fort Collins Utilities collects stormwater utility fees citywide based on our
fee schedule for residential and commercial properties; and
WHEREAS, the City of Fort Collins pays these fees from our collected Stormwater
Revenues in the year after they are collected (i.e., 2016 fees are paid in early 2017). This is done
so that any additional stormwater system development fees [typically called Plant Investment
Fees (PIFs)] and growth related fee increases can be included in the annual payment; and
WHEREAS, the BBRSA Board of Directors has indicated that it may assist BBRSA if its
members pay their 2017 estimated annual stormwater service and system development fees in
advance based on existing conditions and then pay for the growth related portions in the
following year, which has the members paying both the 2016 fees and the 2017 fees in early
2017; and
WHEREAS, only the 2016 estimated payment (budgeted at $350,000) was included in
the BFO process for 2017, therefore, additional funding will need to be appropriated from prior
year reserves to make the 2017 payment of $330,000; 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
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated for expenditure from prior year reserves in
the Storm Drainage Fund the sum of THREE HUNDRED THIRTY THOUSAND DOLLARS
($330,000) for 2017 BBRSA member fees.
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Introduced, considered favorably on first reading, and ordered published this 17th day of
January, A.D. 2017, and to be presented for final passage on the 7th day of February, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 7th day of February, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk