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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/17/2015 - SECOND READING OF ORDINANCE NO. 135, 2015, ADOPTINAgenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY November 17, 2015 City Council STAFF Mike Beckstead, Chief Financial Officer Jason Licon, Airport Director SUBJECT Second Reading of Ordinance No. 135, 2015, Adopting the 2016 Budget and Appropriating the Fort Collins Share of the 2016 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on November 3, 2015, appropriates the City’s 50% share ($549,279) of the annual appropriation for fiscal year 2016 for the Fort Collins-Loveland Municipal Airport budget. The 2016 annual operating budget for the Airport totals $931,890, and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland ($177,500 from each City), and interest earnings. The budgeted 2016 Airport capital funds, totaling $166,668, will be used to complete a major Airport improvement, including the second phase of the construction of a snow removal equipment storage facility. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, November 3, 2015 (PDF) 2. Ordinance No. 137, 2015 (PDF) Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Mike Beckstead, Chief Financial Officer Jason Licon, Airport Director SUBJECT First Reading of Ordinance No. 135, 2015, Adopting the 2016 Budget and Appropriating the Fort Collins Share of the 2016 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. EXECUTIVE SUMMARY The 2016 annual operating budget for the Airport totals $931,890, and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland ($177,500 from each City), and interest earnings. This Ordinance appropriates the City of Fort Collins 50% share of the 2016 Airport budget, which totals $465,945. This Ordinance also appropriates the City’s 50% share of capital funds, totaling $83,334 for the Airport from Federal and State grants; contributions from Fort Collins and Loveland; and the Airport General Fund. The budgeted 2016 Airport capital funds, totaling $166,668, will be used to complete a major Airport improvement including the second phase of the construction of a snow removal equipment storage facility. 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 Fort Collins-Loveland Municipal Airport, located approximately 16 miles southeast of downtown Fort Collins, just west of Interstate 25 on Earhart Road. 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 Fort Collins – Loveland Airport provides a local economic impact of $129.4 million annually. Airport revenues cover operating costs and capital projects. 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. ATTACHMENT 1 Agenda Item 8 Item # 8 Page 2 The annual operating costs for 2016 for the Airport are $931,890, and the City of Fort Collins contribution is $177,500. In addition, the Airport Manager is recommending additional capital expenditures and has identified the following funding sources: FAA Entitlement Grant $150,000 State Grant 8,334 Airport Revenues 8,334 Total $166,668 The capital expenditures will be used to complete major Airport improvement projects, such as the second phase of construction of a snow removal equipment storage facility estimated at $166,668. Thus, the City of Fort Collins appropriation for the capital expenditures identified above is $83,334 (50% of the total). The City of Loveland’s City Council has approved an ordinance appropriating the 2016 Airport budget on October 20, 2015. CITY FINANCIAL IMPACTS This Ordinance appropriates the City’s 50% share ($549,279) of the annual appropriation for fiscal year 2016 for the Fort Collins-Loveland Municipal Airport budget. 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 Airport budget. The contribution from the City of Fort Collins for the operation of the Airport has not increased since 2013 and remains $177,500. ORDINANCE NO.135, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE 2016 BUDGET AND APPROPRIATING THE FORT COLLINS SHARE OF THE 2016 FISCAL YEAR OPERATING AND CAPITAL IMPROVEMENT FUNDS FOR THE FORT COLLINS-LOVELAND MUNICIPAL 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 (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 Restate Intergovernmental Agreement for the Joint Operation of the Fort Collins-Loveland Municipal Airport dated January 22, 2015 (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 2016 Airport operating budget totaling $931,890, of which the City’s share is $465,945; and WHEREAS, the City Council is in the process of considering the City’s 2016 budget and Ordinance No 139, 2015, which appropriates $177,500 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 the City of Fort Collins the revenues of, and other financial contributions to, the Airport, in a fund designated for the operating and capital expenses of the Airport (the “Airport Fund”); and 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 $465,945 for the fiscal year beginning January 1, 2016, and ending December 31, 2016; and WHEREAS, the Airport Manager also recommends capital expenditures totaling $166,668 for Airport improvement projects in 2016 which will be used to complete a major Airport improvement, including the second phase of the construction of a snow removal equipment storage facility; and WHEREAS, funding for the 2016 capital improvements has been identified as follows: FAA Entitlement Grant $150,000 State Grant 8,334 Airport Revenues 8,334 Total $166,668; and WHEREAS, the City’s 50% share of the 2016 capital improvement costs, held in the Airport Fund, is $83,334. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby approves and adopts the 2016 Airport operating and capital budget (totaling $931,890 for operations and $166,668 for capital), a copy of which is on file with the City of Fort Collins City Clerk. Section 2. That the City Council hereby appropriates in the Airport Fund FOUR HUNDRED SIXTY-FIVE THOUSAND NINE HUNDRED FORTY-FIVE DOLLARS ($465,945) to be expended to defray the City’s share of the 2016 operating costs of the Fort Collins-Loveland Municipal Airport. Section 3. That the City Council hereby appropriates in the Airport Fund EIGHTY THREE THOUSAND THREE HUNDRED THIRTY-FOUR DOLLARS ($83,334) to be used for the City’s share of the 2016 capital improvements at the Fort Collins-Loveland Municipal Airport. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, A.D. 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk