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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/01/2016 - FIRST READING OF ORDINANCE NO. 119, 2016, ADOPTINGAgenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY November 1, 2016 City Council STAFF Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 119, 2016, Adopting the 2017 Budget and Appropriating the Fort Collins Share of the 2017 Fiscal Year Operating and Capital Funds for the Northern Colorado Regional Airport. EXECUTIVE SUMMARY The purpose of this item is to appropriate the City of Fort Collins’ 50% share of the Northern Colorado Regional Airport budget. The Airport’s total budget is comprised of an operating budget and a capital budget. The 2017 annual operating budget is $1,099,030, and will be funded using Airport operating revenues and non-operating revenues derived through contributions from the Cities of Fort Collins and Loveland ($260,000 from each City). The proposed capital budget is $1,493,302, and is funded through federal grants, state grants, and Airport operating revenue. This Ordinance appropriates the City of Fort Collins 50% share of the 2017 Airport operating budget, which totals $549,515 and the City of Fort Collins 50% share of the 2017 capital budget which totals $746,651. The City of Loveland will be appropriating the other 50%. The Airport operating budget is used to maintain and operate the Airport in compliance with all regulatory standards for safety and security and to achieve the Council-approved Airport Strategic Plan. The Airport capital budget will be used to complete Airport improvement projects including runway and taxiway rehabilitation and preservation, taxiway sign safety modifications, an Airport Master Plan update, and acquisition of snow removal equipment. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 1963, the City of Fort Collins and the City of Loveland agreed to the establishment of a regional aviation facility and became owners and operators of the Northern Colorado Regional Airport, located approximately 16 miles southeast of downtown Fort Collins, just west of Interstate 25. The Airport is operated as a joint venture between the City of Fort Collins and the City of Loveland, with each City retaining a 50% ownership interest, sharing equally in policy-making and management, and with each assuming responsibility for 50% of the capital and operating costs associated with the Airport. The Airport’s mission is to provide a safe and efficient air transportation airport facility to the general public and aviation community by providing airport facilities that meet Federal Aviation Administration (FAA) safety standards and to implement a plan that ensures the efficient development of the Airport to meet the needs of the Fort Collins and Loveland communities. According to a 2013 State of Colorado study, the Northern Colorado Airport provides a regional economic impact of approximately $129.4 million annually. Agenda Item 5 Item # 5 Page 2 All revenues derived from the Airport are applied to both operating and capital expenditures. Each City contributes equal funding for Airport operating and capital needs as agreed upon within the Intergovernmental agreement between the Cities of Fort Collins and Loveland. Airport capital funds are also received for eligible projects, from the FAA and the Colorado Department of Transportation, Division of Aeronautics. All grant resources are funded through aviation taxes and fees. The annual operating costs for 2017 for the Airport are $1,099,030, and the City of Fort Collins contribution amount is $260,000. In addition, the Airport Director is recommending additional capital expenditures and has identified the following funding sources: FAA Grant $1,000,000 State Grant 55,556 Airport Revenues 102,746 Airport Reserves 335,000 Total $1,493,302 The capital expenditures will be used to complete major Airport improvement projects, including runway and taxiway rehabilitation and preservation, taxiway sign safety modifications, an Airport Master plan update, and acquisition of snow removal equipment. The $335,000 item is an appropriation for use by the Northern Colorado Regional Airport Commission for discretionary Airport projects. This Airport Reserve appropriation will not require additional funding from the Cities and reflects the approved amendment of the Intergovernmental Agreement with the City of Loveland signed in June 2016 for the joint operation of the Airport. Thus, the City of Fort Collins 50% appropriation for the capital expenditures identified above is $746,651. The Northern Colorado Regional Airport Commission approved the proposed 2017 Airport Budget on August 18, 2016. The City of Loveland’s City Council approved an ordinance appropriating the 2017 Airport budget on First Reading on October 18, 2016, with the Second Reading being held simultaneously on November 1. CITY FINANCIAL IMPACTS This Ordinance appropriates the City’s 50% share of the annual appropriation for fiscal year 2017 for the Northern Colorado Regional Airport operations and capital budgets which total $1,296,166 and is 50% of the $2,592,332 combined 2017 Airport operating and capital budget. Of this amount, the City of Fort Collins will be providing $260,000 from the City’s General Fund. The City of Loveland manages the Airport’s budget and finances; however, since the City of Fort Collins owns 50% of the Airport, it is necessary for the City to appropriate its 50% portion of the total Airport operating and capital improvement fund budget. -1- ORDINANCE NO. 119, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE 2017 BUDGET AND APPROPRIATING THE FORT COLLINS SHARE OF THE 2017 FISCAL YEAR OPERATING AND CAPITAL IMPROVEMENT FUNDS FOR THE NORTHERN COLORADO REGIONAL AIRPORT WHEREAS, in 1963, the City of Fort Collins and the City of Loveland (the “Cities”) agreed to establish a regional general aviation facility and became owners and operators of the Fort Collins-Loveland Municipal Airport, now known as the Northern Colorado Regional Airport (the “Airport”); and WHEREAS, the Airport is operated as a joint venture between the Cities, with each city retaining a 50% ownership interest, sharing equally in policy-making and management, and each assuming responsibility for 50% of the Airport’s capital and operating costs; and WHEREAS, pursuant to the Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport dated January 22, 2015, and the First Amendment to the Amended and Restated Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport, now known as the Northern Colorado Regional Airport (the “IGA”), the Airport Manager is responsible for preparing the Airport’s annual operating budget and submitting it to the Cities for their approval; and WHEREAS, under the IGA, the City’s share of existing and unanticipated Airport revenue is to be held and disbursed by the City of Loveland as an agent on behalf of the Cities, since the City of Loveland provides finance and accounting services for the Airport; and WHEREAS, under the IGA, each City’s share of the Airport‘s annual operating budget and the Airport capital improvement plan shall be appropriated by each City and transferred or otherwise paid into the designated account to be used for Airport funding on an annual basis; 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 for the same has been made by the City Council; and WHEREAS, the Airport Manager has submitted for City Council consideration a 2017 Airport operating budget totaling $1,099,030, of which the City’s share is $549,515; and WHEREAS, the City Council is in the process of considering the City’s 2017 budget and Ordinance No 126, 2016, which appropriates $260,000 in City funds to be transferred to the Airport operating fund in accordance with the IGA (the “Fort Collins Contribution”); and WHEREAS, pursuant to the IGA, the City of Loveland holds on behalf of both Cities the revenues of, and other financial contributions to, the Airport in a fund, which includes unappropriated and unencumbered, reserves (the “Airport Fund”); and -2- WHEREAS, it is the desire of the City Council to appropriate the City’s share of the necessary funds for the Airport’s operating costs, totaling $549,515 for the fiscal year beginning January 1, 2017, and ending December 31, 2017; and WHEREAS, the Airport Manager also recommends capital expenditures totaling $1,493,302 for Airport improvement projects in 2017 which include runway and taxiway rehabilitation and preservation, taxiway sign safety modifications, an Airport Master plan update and acquisition of snow removal equipment; and WHEREAS, funding for the 2017 capital improvements has been identified as follows: FAA Grant $1,000,000 State Grant 55,556 Airport Revenues 102,746 Airport Reserves 335,000 Total $1,493,302; and WHEREAS, the City’s 50% share of the 2017 capital improvement costs, held in the Airport Fund, is $746,651. WHEREAS, the Airport Reserves item is an appropriation for use by the Northern Colorado Regional Airport Commission for discretionary Airport projects; and WHEREAS, this appropriation will not require additional funding from the Cities and is consistent with the approved amendment of the Intergovernmental Agreement with the City of Loveland signed in June of 2016 for the joint operation of the Airport. 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 the City Council hereby approves and adopts the 2017 Airport operating and capital budget totaling $2,592,332 ($1,099,030 for operations and $1,493,302 for capital), a copy of which is attached hereto as Exhibit “A” and incorporated herein by reference. Section 3. That the City Council hereby appropriates in the Airport Fund FIVE HUNDRED FORTY NINE THOUSAND FIVE HUNDRED FIFTEEN DOLLARS ($549,515) to be expended to defray the City’s share of the 2017 operating costs of the Fort Collins- Loveland Municipal Airport. Section 4. That the City Council hereby appropriates in the Airport Fund SEVEN HUNDRED FORTY SIX THOUSAND SIX HUNDRED FIFTY ONE DOLLARS ($746,651) to be used for the City’s share of the 2017 capital improvements at the Fort Collins-Loveland Municipal Airport. -3- Introduced, considered favorably on first reading, and ordered published this 1st day of November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of November, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk &LW\RI/RYHODQG&RORUDGR _%XGJHW ŝƌƉŽƌƚ&ƵŶĚ dŚĞ ŝƌƉŽƌƚ &ƵŶĚ ƌĞĐĞŝǀĞƐ ƌĞǀĞŶƵĞ ĨŽƌŽƉĞƌĂƚŝŶŐĂŶĚĐĂƉŝƚĂůĞǆƉĞŶƐĞƐƉƌŝŵĂƌŝůǇĨƌŽŵƌĞǀĞŶƵĞƐŐĞŶĞƌĂƚĞĚďǇ ĂŝƌƉŽƌƚŽƉĞƌĂƚŝŽŶƐ͘ĚĚŝƚŝŽŶĂůƌĞǀĞŶƵĞƐĂƌĞƉƌŽǀŝĚĞĚďǇƚŚĞĂŝƌƉŽƌƚƉĂƌƚŶĞƌƐ͕ƚŚĞŝƚŝĞƐŽĨ>ŽǀĞůĂŶĚĂŶĚ&Žƌƚ ŽůůŝŶƐ͕ĂŶĚ͕ĨŽƌĂƉƉƌŽǀĞĚƉƌŽũĞĐƚƐ͕ĨƌŽŵƚŚĞ&ĂŶĚŽůŽƌĂĚŽĞƉĂƌƚŵĞŶƚŽĨdƌĂŶƐƉŽƌƚĂƚŝŽŶ͘hƐĞŽĨŵŽŶĞǇŝŶ ƚŚĞ &ƵŶĚ ŝƐ ƌĞƐƚƌŝĐƚĞĚ ƚŽ ƚŚĞ ĂŝƌƉŽƌƚ͘ dŚĞ &ƵŶĚ ŝƐ ŵĂŶĂŐĞĚ ďǇ ƚŚĞ ŝƚǇ DĂŶĂŐĞƌ͛Ɛ KĨĨŝĐĞ͘ ĞƚĂŝůƐ ŽŶ ƚŚĞ ĞǆƉĞŶĚŝƚƵƌĞƐĂƌĞŝŶƚŚĞKƚŚĞƌŶƚŝƚŝĞƐĐŚĂƉƚĞƌ͘ ZsEh ͚ϭϱĐƚƵĂů ͚ϭϲĚŽƉƚĞĚ ƵĚŐĞƚ ͚ϭϲZĞǀŝƐĞĚ ƵĚŐĞƚĂƐŽĨ:ƵůǇ ϭ Ɛƚ ͚ϭϳƵĚŐĞƚ ͚ϭϳƵĚŐĞƚ ͚ͬϭϲ ĚŽƉƚĞĚй ŚĂŶŐĞ '/EE/E'&hE>E Ψ Ϯ͕ϯϵϯ͕ϯϮϭ Ψ ϭϰϱ͕ϵϱϴ Ψ ϭ͕ϵϵϵ͕ϳϱϮ Ψ Ϯ͕Ϭϰϯ͕ϵϬϱ ŝƌƉŽƌƚZĞǀĞŶƵĞ KEdZ/hd/KEͲ>Ks>E ϭϳϳ͕ϱϬϬ ϭϳϳ͕ϱϬϬ ϭϳϳ͕ϱϬϬ ϮϲϬ͕ϬϬϬ ϰϲ͘ϱй KEdZ/hd/KEͲ&KZdK>>/E^ ϭϳϳ͕ϱϬϬ ϭϳϳ͕ϱϬϬ ϭϳϳ͕ϱϬϬ ϮϲϬ͕ϬϬϬ ϰϲ͘ϱй /EdZ^d Ϯϭ͕ϭϯϱ ϲ͕ϭϴϱ ϲ͕ϭϴϱ ϭϱ͕ϬϬϬ ϭϰϮ͘ϱй Kd,Z ϭϵ͕ϳϲϲ ϴ͕ϮϬϴ ϴ͕ϮϬϴ Ϯϯ͕ϮϬϬ ϭϴϮ͘ϳй /ZWKZdZsEh ϱϵϵ͕ϯϮϲ ϲϮϰ͕ϵϳϴ ϲϮϰ͕ϵϳϴ ϲϯϰ͕ϱϯϬ ϭ͘ϱй KEdZ/hd/KEͲ& ϴϬϱ͕ϮϯϮ ϭϱϬ͕ϬϬϬ ϭϱϬ͕ϬϬϬ ϭ͕ϬϬϬ͕ϬϬϬ ϱϲϲ͘ϳй KEdZ/hd/KEͲ^ddK&K ϱϳ͕ϵϳϱ ϴ͕ϯϰϬ ϴ͕ϯϰϬ ϱϱ͕ϱϱϲ ϱϲϲ͘ϭй dZE^&Z^ Ͳ Ͳ ϱϬ͕ϬϬϬ Ͳ Ͳ dŽƚĂůZĞǀĞŶƵĞ Ψ ϭ͕ϴϱϴ͕ϰϯϰ Ψ ϭ͕ϭϱϮ͕ϳϭϭ Ψ ϭ͕ϮϬϮ͕ϳϭϭ Ψ Ϯ͕Ϯϰϴ͕Ϯϴϲ ϵϱ͘Ϭй dŽƚĂůZĞƐŽƵƌĐĞƐ Ψ ϰ͕Ϯϱϭ͕ϳϱϱ Ψ ϭ͕Ϯϵϴ͕ϲϲϵ Ψ ϯ͕ϮϬϮ͕ϰϲϯ Ψ ϰ͕ϮϵϮ͕ϭϵϭ yWE^^z&hE KƚŚĞƌŶƚŝƚǇ /ZWKZd Ψ Ϯ͕ϮϱϮ͕ϬϬϯ Ψ ϭ͕Ϭϵϴ͕ϱϱϴ Ψ ϭ͕ϭϱϴ͕ϱϱϴ Ψ Ϯ͕ϱϵϮ͕ϯϯϮ ϭϯϲ͘Ϭй yWE^^zd'KZz WZ^KEE>^Zs/^ ϯϵϭ͕ϰϳϰ ϰϴϭ͕Ϯϭϲ ϰϴϭ͕Ϯϭϲ ϱϳϳ͕ϭϲϱ ϭϵ͘ϵй ^hWW>/^ ϯϴ͕ϭϲϮ ϱϯ͕ϮϬϬ ϱϯ͕ϮϬϬ ϱϰ͕ϭϭϱ ϭ͘ϳй WhZ,^^Zs/^ ϯϮϰ͕Ϯϲϱ ϯϵϳ͕ϰϳϰ ϰϱϳ͕ϰϳϰ ϰϲϳ͕ϳϱϬ ϭϳ͘ϳй WZ/d/KE ϭ͕ϰϵϴ͕ϭϬϮ Ͳ Ͳ Ͳ Ͳ W/d> Ͳ ϭϲϲ͕ϲϲϴ ϭϲϲ͕ϲϲϴ ϭ͕ϰϵϯ͕ϯϬϮ ϳϵϲ͘Ϭй dŽƚĂůǆƉĞŶƐĞ Ψ Ϯ͕ϮϱϮ͕ϬϬϯ Ψ ϭ͕Ϭϵϴ͕ϱϱϴ Ψ ϭ͕ϭϱϴ͕ϱϱϴ Ψ Ϯ͕ϱϵϮ͕ϯϯϮ ϭϯϲ͘Ϭй E/E'&hE>E Ψ ϭ͕ϵϵϵ͕ϳϱϮ Ψ ϮϬϬ͕ϭϭϭ Ψ Ϯ͕Ϭϰϯ͕ϵϬϱ Ψ ϭ͕ϲϵϵ͕ϴϱϵ ŝƌƉŽƌƚ&ƵŶĚ^ƵŵŵĂƌǇ ' EXHIBIT A