HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/17/2015 - SECOND READING OF ORDINANCE NO. 139, 2015, BEING TAgenda Item 14
Item # 14 Page 1
AGENDA ITEM SUMMARY November 17, 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. 139, 2015, Being the Annual Appropriation Ordinance Relating to the
Annual Appropriations for the Fiscal Year 2016; Amending the Budget for the Fiscal Year Beginning January 1,
2016, and Ending December 31, 2016; and Fixing the Mill Levy for Fiscal Year 2016.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on November 3, 2015, amends the adopted 2016
Budget and set the amount of $563,538,909 to be appropriated for fiscal year 2016. Including the 2016
adopted budgets for the General Improvement District No. 1 (“GID No. 1”) of $193,877, the Skyview General
Improvement District No. 15 (“GID No. 15”) of $1,000, and the revised Urban Renewal Authority (URA) budget
of $2,889,600, the total City appropriations amount to $566,623,386. The Net City Budget, which excludes the
GID No.1, GID No. 15, URA, and internal transfers between City funds, is $448,536,933 for 2016.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, November 3, 2015 (w/o attachments) (PDF)
Agenda Item 17
Item # 17 Page 1
AGENDA ITEM SUMMARY November 3, 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. 139, 2015, Being the Annual Appropriation Ordinance Relating to the Annual
Appropriations for the Fiscal Year 2016; Amending the Budget for the Fiscal Year Beginning January 1, 2016,
and Ending December 31, 2016; and Fixing the Mill Levy for Fiscal Year 2016.
EXECUTIVE SUMMARY
The purpose of this item is to amend the adopted 2016 Budget and set the amount of $563,376,909 to be
appropriated for fiscal year 2016. Including the 2016 adopted budgets for the General Improvement District
No. 1 (“GID No. 1”) of $193,877, the Skyview General Improvement District No. 15 (“GID No. 15”) of $1,000,
and the revised Urban Renewal Authority (URA) budget of $2,889,600, the total City appropriations amount to
$566,461,386. The Net City Budget, which excludes the GID No.1, GID No. 15, URA, and internal transfers
between City funds, is $448,374,933 for 2016.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
City Council previously adopted the 2015-2016 Biennial Budget and appropriated monies for expenditure in
fiscal year 2015. State statutes and the City Charter both require an annual appropriation to cover expenses
for the ensuing year (2016) based upon the adopted budget. The Second Reading must occur before the last
day of November and is currently scheduled for November 17, 2015.
The Net City Budget, as amended, is allocated to:
Original Amended
2016 2016
Change
Operations $479.3 $496.8
$17.6
Debt Service 21.6 21.6
0.0
Capital* 35.5 48.0
12.5
Total City Appropriations** $536.4 $566.5
$30.1
General Improvement District (GID) #1, 15 ($0.2) ($0.2)
$0.0
Urban Renewal Authority (URA) (4.9) (2.9)
2.0
Internal Service Funds (66.7) (70.4)
(3.7)
Less Transfers to Other Funds (41.3) (44.6)
(3.3)
ATTACHMENT 1
Agenda Item 17
Item # 17 Page 2
Net City Budget $423.3 $448.4
$25.1
* Capital dollars reflect non-lapsing capital project budgets
** This includes GID and URA which are appropriated in separate ordinances. The change in Total
City Appropriations of $30.1M is the net of the increase in the 2016 City appropriation of $32.1M and
a reduction in the 2016 URA appropriation of $2.0M
This Ordinance also sets the 2016 City mill levy at 9.797 mills, unchanged since 1991.
2016 Revenue Update
Sales and use tax, as well as property tax revenues are expected to be higher than originally anticipated for
2015 and 2016. 2015 sales tax collections are now forecasted to be $3.9M higher while use tax collections are
anticipated to be $7.1M higher. Those amounts are then split into the General Fund (approximately 60%), and
the dedicated voter approved taxes (e.g. Keep Fort Collins Great, OpenSpace Yes!, etc.). The City has been
notified by Larimer County that property taxes are anticipated to be nearly $1.0M higher in 2015 than
previously forecasted.
Looking ahead to 2016, sales tax is forecasted to grow 3.0% over the new 2015 base and use tax is being held
flat to the $17.0M originally forecasted due to the significant volatility of that revenue stream. 2016 property
tax is forecasted to be 10% over the 2015 base, although two-thirds of that increase will go to PFA in 2017, per
our IGA.
For the Budget Revision process, only major revenue sources are updated. Any additional revenues that are
not used to fund budget offers will increase the various fund balances.
Summary of Available Funding:
Recommended 2016 Budget Additions
After reviewing the recommended 2016 Budget Revision requests at the September 15, 2015 work session
and obtaining guidance from Council, the City Manager is recommending the adjustments listed below to the
2016 Budget.
Of these, staff recommends using $15.5 million from reserves and available one-time revenue. The requests
include use of reserves of $12.3M from the Capital Expansion – Community Parks, Capital Projects, Light and
Power, Wastewater, and General Funds for large capital projects. $0.9M is coming from Keep Fort Collins
Great reserves with the remainder of the reserves primarily coming from the General Fund for various one-time
uses.
The table below lists all the 2016 Revision Offers included in the 2016 Annual Appropriation. Note that
transfers between funds are also included:
$ in Millions General
Fund
Ongoing
General
Fund One-
Time KFCG
Transport
ation Other Utililities Total
Sales & Use Tax $ 2.4 $ 6.6 $ 3.0 $ 11.9
Property Tax 0.7 1.0 1.7
Street Maintenance 1/4 Cent 7.7 7.7
Utilities - Use of Reserves 9.2 9.2
Unassigned 2014 1.3 6.8 7.5 8.2 23.8
BCC Excess 1.6 1.6
Benefits Fund Revenue Depts 2.7 2.7
TOTAL $ 3.1 $ 8.9 $ 9.8 $ 15.2 $ 12.5 $ 9.2 $ 58.6
Agenda Item 17
Item # 17 Page 3
General Fund Ongoing $ One-Time $ Total
Aircraft Rescue and Firefighting (ARFF) for Fort Collins-Loveland Airport 23,800 0 23,800
Annual Operations for the Community Recycling Center (CRC) 325,000 0 325,000
Benefits Adjustments (from General Fund departments) 1,042,492 0 1,042,492
Chief Human Resources Officer Position - General Fund portion (~151K
annually)
92,957 21,000 113,957
City Clerk Licensing Coordinator 68,917 5,700 74,617
Climate Action Plan: Business Planning for Strategic Initiatives and
Public-Private Partnership
0 75,000 75,000
Climate Action Plan: Energy Code Performance Program 52,000 15,000 67,000
Emergency Services Dispatcher 70,475 0 70,475
Increase to Claims Settlement Account within the Self Insurance Fund 0 600,000 600,000
Nature in the City Implementation 78,089 0 78,089
Neighborhood Services Strategic Plan and Implementation of
Neighborhood Districts
0 67,000 67,000
Parks Division Competitive Hourly Wages 110,000 0 110,000
Prospect Road and College Avenue Intersection Improvements 0 1,100,000 1,100,000
Total Rewards Strategy: Career Architecture and Pay Structure 0 275,000 275,000
Transfers from the General Fund 75,000 75,000
Total General Fund $1,863,730 $2,233,700 $4,097,430
Other Funds Ongoing $ One-Time $ Total
Additional Bus Stop Improvements for ADA Accessibility (including
contractual FTE)
275,000 0 275,000
Benefits Adjustments (from departments) 1,678,297 0 1,678,297
Benefits Fund Unanticipated Expenditures 2,700,000 0 2,700,000
Chief Human Resources Officer Position - Benefits Fund portion 28,319 0 28,319
Climate Action Plan - Communication and Engagement Platform Design
& Implementation
0 125,000 125,000
Climate Action Plan: Business Planning for Strategic Initiatives and
Public-Private Partnership
0 75,000 75,000
Climate Action Plan: Energy Code Performance Program 52,000 15,000 67,000
Climate Action Plan: Water Reclamation Biogas to Co-Gen 0 3,500,000 3,500,000
Collindale Golf Course Irrigation Control Software Upgrade 0 30,000 30,000
Harmony Park and Ride - Parking Enforcement Officer 60,000 0 60,000
Homelessness Initiative - Street Outreach Pilot Program 0 80,000 80,000
IT Open Data Portal - First Phase Implementation 60,000 40,000 100,000
KFCG - Fire Reserves for PFA 0 483,219 483,219
Major Duct Banks and Circuits Funding Increase 0 5,000,000 5,000,000
Police Property and Evidence Technician 73,726 0 73,726
Prospect Road and College Avenue Intersection Improvements 0 1,600,000 1,600,000
Renewal of 1/4 Cent Street Maintenance Tax 7,688,825 0 7,688,825
Southeast Community Park - Water Rights & Construction Costs 0 1,100,000 1,100,000
Spring Canyon Playground Surfacing Replacement 0 208,000 208,000
Transfers from other funds 3,155,523 3,155,523
Total Other Funds $12,616,167 $15,411,742 $28,027,909
Total All Funds $14,479,897 $17,645,442 $32,125,339
Agenda Item 17
Item # 17 Page 4
Changes since Council review at the September 15, 2015 Work Session
In addition to the recommended 2016 Revision Offers, a few other modifications have been either included in
the 2016 Annual Appropriation Ordinance or could be made if directed by City Council.
Included in 1st Reading of the 2016 Annual Appropriation Ordinance
• Operation and Maintenance Costs for the Community Recycling Center: $325,000
- Based on City Council direction from the October 13, 2015 Work Session, operation and maintenance
(O&M) costs for the Community Recycling Center (CRC) have been included in 1st Reading of the 2016
Annual Appropriation Ordinance. The annual cost for the O&M of the “Full CRC” including Green waste
and Wood waste is estimated at $380K. However, since the CRC is not anticipated to open until sometime
in mid-2016 the amount for the 2016 O&M is less than the $380K. That savings for 2016 is offset by other
one-time startup costs and the seasonality of wood and green waste. The net amount being appropriated
for 2016 is $325K.
• Contribution to the Aircraft Rescue and Fire Fighting (ARFF) staff and equipment required for the Fort Collins-
Loveland Airport: $23.8K
- The Federal Aviation Administration (FAA) requires ARFF staff and equipment be provided for all
commercial service take-off and landings. Half of this annual cost is born by the airport with the remaining
half split 50/50 between the City of Loveland and the City of Fort Collins. The Fort Collins cost of these
FAA requirements for 2016 is $23.6K and has been included in 1st Reading of the 2016 Annual
Appropriation Ordinance. This contribution is made to the Loveland Fire and Rescue Authority (LFRA)
which provides the required service.
Not included in 1st Reading of the 2016 Annual Appropriation Ordinance
• 2016 Revision Request from the City Attorney’s Office: $162K
- The City Attorney’s Office submitted a 2016 Revision request for a paralegal, professional
development/training for legal staff, and funding for a law clerk/legal intern. The detail behind the request
is included in Attachment #1. The total cost of $162K has not been included in 1st Reading of the 2106
Annual Appropriation Ordinance. If Council desires for it to be included in the Ordinance, it will be
necessary to amend the Ordinance.
CITY FINANCIAL IMPACTS
This Ordinance amends the City Budget for fiscal year 2016 and represents the annual appropriation for fiscal
year 2016 in the amount of $563,376,909. The Ordinance also sets the City mill levy at 9.797 mills, unchanged
since 1991.
The net impact of the funded 2016 Revision compared with available funding is summarized as follows:
BOARD / COMMISSION RECOMMENDATION
Boards and commissions were engaged during the development of the original 2015-16 Budget. The only
changes to the 2016 appropriation are the 2016 Revision Offers which do not go through the Budgeting for
Outcomes (BFO) process. Rather, those items that met the specific criteria for the 2016 Revision process
$ in Millions General
Fund
Ongoing
General
Fund One-
Time KFCG
Transport
ation Other Utililities Total
Revenue Update $ 3.1 $ 8.9 $ 9.8 $ 15.2 $ 12.5 $ 9.2 $ 58.6
Recommended Budget Revisions 1.9 2.2 1.4 7.9 9.5 9.2 32.1
Net Impact $ 1.2 $ 6.6 $ 8.4 $ 7.3 $ 3.0 $ (0.0) $ 26.6
Agenda Item 17
Item # 17 Page 5
were thoroughly vetted by City staff, the executive management team, and by Council at a Council Finance
Committee meeting and a City Council Work Session.
PUBLIC OUTREACH
Significant public outreach was conducted as part of the development of the original 2015-16 Budget.
ATTACHMENTS
1. Revision Request for City Attorney's Office (PDF)
2. Powerpoint presentation (PDF)
ORDINANCE NO. 139, 2015
OF THE COUNCIL OF THE CITY OF FORT COLLINS
BEING THE ANNUAL APPROPRIATION ORDINANCE
RELATING TO THE ANNUAL APPROPRIATIONS
FOR THE FISCAL YEAR 2016; AMENDING THE BUDGET FOR
THE FISCAL YEAR BEGINNING JANUARY 1, 2016, AND ENDING
DECEMBER 31, 2016; AND FIXING THE MILL LEVY FOR FISCAL YEAR 2016
WHEREAS, on November 18, 2014, the City Council adopted on second reading
Ordinance No. 153, 2014, approving an amended biennial budget for the years beginning on
January 1, 2015, and January 1, 2016; and
WHEREAS, the City Manager has submitted to the City Council proposed amendments
to the 2016 budget adopted by the City Council in Ordinance No. 153, 2014; and
WHEREAS, the City Council has reviewed the City Manager’s recommended changes to
the “2016 Proposed Appropriations” section of the Fort Collins 2015 and 2016 Biennial Budget
(the “Biennial Budget”), as shown on pages 45 through 47 thereof, a copy of which is on file
with the office of the City Clerk, as amended on First Reading of this Ordinance, referred to
herein as the “2016 Budget Revisions;” 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 real 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, having reviewed the City Manager's recommended
changes to the A2016 Proposed Appropriations@ section of the Fort Collins 2015 and 2016
Biennial Budget (the “Biennial Budget@), as shown on pages 45 through 47 thereof, a copy of
which is on file with the office of the City Clerk, hereby amends the Biennial Budget to reflect
the following changes and adopts said Biennial Budget as amended by the 2016 Budget
Revisions:
2016 Proposed Appropriations
Existing Amount of
Adjustment
As Amended
GENERAL FUND $129,111,563 $4,259,430 $133,370,993
ENTERPRISE FUNDS
Golf $3,372,848 $147,294 $3,520,142
Light & Power
Operating Total $136,366,109 $460,568 $136,826,677
Capital Projects:
Art in Public Places 70,476 $0 70,476
Major Duct Banks and Circuits Funding Increase 4,950,000 4,950,000
Capital Projects Total 70,476 4,950,000 5,020,476
Total Light & Power $136,436,585 $5,410,568 $141,847,153
Storm Drainage
Operating Total $11,308,810 $64,596 $11,373,406
Capital Projects: 0
Art in Public Places 35,700 35,700
Cooper Slough and Boxelder Basins 350,000 350,000
Stormwater Basin Improvements 2,500,000 2,500,000
Stormwater Developer Repays 100,000 100,000
Stormwater Drainage System Improvements 370,000 370,000
Stormwater Master Plan 275,000 275,000
Stream Restoration 700,000 700,000
Capital Projects Total 4,330,700 4,330,700
Total Storm Drainage $15,639,510 $64,596 $15,704,106
Wastewater
Operating Total $18,307,774 $104,920 $18,412,694
Capital Projects:
Art in Public Places 78,035 78,035
Collection System Replacement 1,602,000 1,602,000
Ultra-Violet Disinfection System 5,900,000 5,900,000
Water Reclamation Replacement Program 301,500 3,465,000 3,766,500
Capital Projects Total 7,881,535 3,465,000 11,346,535
Total Wastewater $26,189,309 $3,569,920 $29,759,229
Water
Operating Total $25,797,076 $113,481 $25,910,557
Capital Projects:
Art in Public Places 148,400 148,400
Chlorine Contact Basin 9,720,000 9,720,000
Water Distribution System Replacement 2,300,000 2,300,000
Water Meter Replacement & Rehabilitation 800,000 800,000
Water Production - Energy Optimization 300,000 300,000
Water Production Replacement Program 1,581,182 1,581,182
Water Source of Supply Replacements 750,000 750,000
Capital Projects Total 15,599,582 0 15,599,582
Total Water $41,396,658 $113,481 $41,510,139
TOTAL ENTERPRISE FUNDS $223,034,910 $9,305,859 $232,340,769
INTERNAL SERVICE FUNDS
Benefits $25,335,636 $2,737,614 $28,073,250
Data & Communications 10,520,742 207,884 10,728,626
Equipment 12,235,244 32,988 12,268,232
Self Insurance 3,547,205 614,340 4,161,545
Utility Customer Service & Administration 17,306,739 135,692 17,442,431
TOTAL INTERNAL SERVICE FUNDS $68,945,566 $3,728,518 $72,674,084
SPECIAL REVENUE & DEBT SERVICE FUNDS
Capital Improvement Expansion $2,329,828 $1,100,000 $3,429,828
Capital Leasing Corporation 4,619,279 4,619,279
Cemeteries 644,195 23,577 667,772
Conservation Trust
Operating Total - Administration & Parks Maint $281,570 $281,570
Capital Projects:
Trail Acquisition/Development 1,188,664 1,188,664
Capital Projects Total 1,188,664 0 1,188,664
Total Conservation Trust $1,470,234 $0 $1,470,234
Cultural Services & Facilities
Operating Total $3,889,319 $32,302 $3,921,621
Capital Projects - Art in Public Places 50,815 50,815
Total Cultural Services & Facilities $3,940,134 $32,302 $3,972,436
General Employees' Retirement $4,127,950 4,127,950
Keeping Fort Collins Great
Operating Total $23,839,384 $1,141,210 $24,980,594
Capital Projects:
City Bridge Program 2,092,592 2,092,592
Lemay/Vine Intersections 500,000 500,000
Lincoln Plan Neighborhood 176,000 176,000
Pedestrian Sidewalks/ADA 150,000 150,000
Additional Bus Stop Imp for ADA Accessibility 0 275,000 275,000
Capital Projects Total 2,918,592 275,000 3,193,592
Total Keeping Fort Collins Great $26,757,976 $1,416,210 $28,174,186
Museum $1,055,229 $12,566 $1,067,795
Natural Areas 11,366,467 180,317 11,546,784
Neighborhood Parkland Fund
Operating Total - Administration $488,270 $488,270
Capital Projects:
New Park Site Development 400,000 400,000
New Park Site Acquisition 300,000 300,000
Rossborough Park 110,000 110,000
Trailhead Park 300,000 300,000
Capital Projects Total 1,110,000 1,110,000
Total Neighborhood Parkland $1,598,270 $1,598,270
Parking $2,480,368 $70,278 $2,550,646
Perpetual Care 20,311 $20,311
Recreation 6,856,477 82,472 6,938,949
Sales & Use Tax 7,569,302 288,523 7,857,825
Street Oversizing 2,640,738 2,640,738
Timberline/Prospect SID 54,000 54,000
Transit Services 13,604,480 89,084 13,693,564
Transportation Services 16,436,787 7,898,203 24,334,990
SPECIAL REVENUE & DEBT $107,572,025 $11,193,532 $118,765,557
SERVICE FUNDS
CAPITAL PROJECTS FUND
Operating Total 230,098 230,098
General City Capital Projects:
City Bridge Program 207,408 207,408
Northeast Community Park 450,000 450,000
Railroad Crossing Replacement 100,000 100,000
Southeast Community Park 1,200,000 1,200,000
Traffic Calming 400,000 400,000
Prospect Road and College Avenue Intersection Imp 0 2,700,000 2,700,000
Southeast Comm Park - Water Rights & Construction 0 1,100,000 1,100,000
Total General City Capital Projects $2,357,408 $3,800,000 $6,157,408
TOTAL CAPITAL PROJECTS FUND $2,587,506 $3,800,000 $6,387,506
TOTAL CITY FUNDS $531,251,570 $32,287,339 $563,538,909
Section 2. That there is hereby appropriated out of the revenues of the City, for the
fiscal year beginning January 1, 2016, and ending December 31, 2016, the sum of FIVE
HUNDRED SIXTY-THREE MILLION FIVE HUNDRED THIRTY-EIGHT THOUSAND
NINE HUNDRED NINE DOLLARS ($563,538,909) 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 2016 mill levy rate for the taxation upon each dollar of the assessed
valuation of all the taxable real property within the city of Fort Collins as of December 31, 2015,
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 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