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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 09/15/2015 - FIRST READING OF ORDINANCE NO. 115, 2015, AUTHORIAgenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY September 15, 2015 City Council STAFF Jon Haukaas, Water Engr Field Operations Mgr Phil Ladd, Utilities Customer Accounts Supervisor SUBJECT First Reading of Ordinance No. 115, 2015, Authorizing the Transfer of Previously Appropriated Funds in the Storm Drainage Fund From Individual Stormwater Basin Capital Projects, Including All Sub-Projects and Encumbrances, into the Stormwater Basin Improvement Capital Project. EXECUTIVE SUMMARY The purpose of this item is to correct a process issue with the language of previously adopted Ordinance No. 074, 2015, which transferred only the unallocated main Capital Project funds of the Stormwater Enterprise. The language of that Ordinance inadvertently did not include the associated existing sub-project Business Units and encumbrances. For proper accounting purposes and accuracy with the City's financial system, JDEdwards, it is necessary to include the transfer of all existing Business Unit funds and encumbrances within each Capital Project. This Ordinance corrects that oversight. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION City Council adopted Ordinance No. 074, 2015 at its July 7 and July 21 Meetings. The language of that Ordinance only transferred the unallocated prior appropriations. In order to properly track the overall finances of the Enterprise fund in the City’s accounting system, it is necessary to include all associated existing individual sub-project funds (Business Units) and encumbrances within those Capital Project funds. This preserves the financial integrity of the system and accountability of all associated transactions. The following reiterates the purpose and need for Ordinance No. 074, 2015, action: Prior to 1998, monthly stormwater capital improvement fees were collected individually by each separate drainage basin and could only be used for the basin in which the fees were collected. Ordinance No. 168, 1998 changed the collection and use of monthly stormwater fees from the individual basins to a consolidated uniform and citywide basis. Since 2006 (Ordinance No. 136, 2005) stormwater plant investment fees have also been collected on a citywide basis. With the change in funding, prioritization of stormwater capital improvements is done on a citywide basis for the safety and well-being of all citizens. Each basin’s capital improvement project retains some unspent funding previously appropriated to that specific basin. Basin specific projects continued to be funded with these remaining appropriations. Since the adoption of the 2013-2014 Budget new appropriations are made to the citywide Stormwater Basin Improvements Project and not to individual basins. At this time, there are appropriations remaining in each basin project at a level that is either (A) insufficient to pay for any particular project or (B) the monies remain in basins that do not have immediate capital project Agenda Item 11 Item # 11 Page 2 needs. The consolidation of all these appropriations into the citywide Stormwater Basin Improvement Project will allow staff to fund larger capital projects benefiting the City as a whole, as well as the specific basin for which the funds were created. The individual Stormwater Fund Basin accounts for existing sub-projects to be consolidated under this Ordinance are shown in the following table: Old Town Basin Improvements $ 125,010 Dry Creek Basin Improvements $ 1,165,001 W. Vine Basin Improvements $ 854,458 Foothills Basin Improvements $ 4,778 Canal Importation Basin Improvements $ 710,859 Cooper Slough Boxelder Basin Improvements $ 4,067,379 Fossil Creek Basin Improvements $ 222,380 Cache La Poudre Drainageway Basin Improvements $ 423,018 Drainage System Replacements $ 289,555 Total Transfer to Stormwater Basin Improvements Capital Project $ 7,862,438 If the Ordinance is adopted, these project account balances will be moved under the Citywide Stormwater Basin Improvement Capital Project account and all open projects within the specific basins will also be under the City-wide project for accounting purposes. CITY FINANCIAL IMPACTS The Ordinance does not appropriate any new funding. The Ordinance provides for the consolidation of existing appropriations to improve transparency and flexibility of using the existing stormwater basin improvement appropriations to fund the highest priority projects. This Ordinance is also consistent with the objectives stated by City Council in Ordinance No. 168, 1998, for uniform and citywide operation, maintenance, and improvements to the stormwater system. Stormwater funds will continue to be spent in alignment with the Stormwater Enterprise requirements and approved Stormwater Master Plans. BOARD / COMMISSION RECOMMENDATION Funding of Stormwater Master Plan projects has been discussed with the Water Board many times over the past several years. At its June 18, 2015 meeting, the Board recommended consolidation of the remaining stormwater basin budgets as presented by staff on a vote of 7-1. - 1 - ORDINANCE NO. 115, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE TRANSFER OF PREVIOUSLY APPROPRIATED FUNDS IN THE STORM DRAINAGE FUND FROM INDIVIDUAL STORMWATER BASIN CAPITAL PROJECTS, INCLUDING ALL SUB-PROJECTS AND ENCUMBRANCES, INTO THE STORMWATER BASIN IMPROVEMENT CAPITAL PROJECT WHEREAS, this Ordinance provides for the consolidation of existing appropriations to improve transparency and flexibility of using the existing stormwater basin improvement appropriations to fund the highest priority projects, consistent with the objectives stated by City Council in Ordinance No. 168, 1998, for uniform and Citywide operation, maintenance, and improvements to the Stormwater system; and WHEREAS, since the adoption of the 2013-2014 Budget, new appropriations are made to the Citywide Stormwater Basin Improvements Project and not to individual basins; and WHEREAS, by adoption of Ordinance No. 074, 2015, existing appropriations were consolidated into the Citywide Stormwater Basin Improvement Project to allow staff to fund larger capital projects benefiting the City as a whole, as well as the specific basin for which the funds were created; and WHEREAS, this Ordinance is to correct a process issue with the language of previously approved Ordinance No. 074, 2015, which transferred only the unallocated main Capital Project funds of the Stormwater Enterprise but inadvertently failed to include funds for associated existing sub-projects; and WHEREAS, the Ordinance does not appropriate any new funding; 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 (project) to another fund (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 account in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance; and WHEREAS, the City Manager has recommended the transfer set forth below and the City Council finds that such transfer meets the requirements of Article V, Section 10 of the City Charter because the purpose for which the transferred funds are to be expended remains unchanged. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: - 2 - Section 1. That the City Council hereby adopts the findings and recommendations set forth above. Section 2. That the following funds are hereby authorized for transfer and appropriated for expenditure for the purposes stated below from these projects and sub-projects in the Storm Drainage Fund: Old Town Basin Improvements $ 125,010 Dry Creek Basin Improvements $ 1,165,001 W. Vine Basin Improvements $ 854,458 Foothills Basin Improvements $ 4,778 Canal Importation Basin Improvements $ 710,859 Cooper Slough Boxelder Basin Improvements $ 4,067,379 Fossil Creek Basin Improvements $ 222,380 Cache La Poudre Drainageway Basin Improvements $ 423,018 Drainage System Replacements $ 289,555 TOTAL $ 7,862,438 Appropriation TO this project in the Storm Drainage Fund: Stormwater Basin Improvements Capital Project $7,862,438 Introduced, considered favorably on first reading, and ordered published this 15th day of September, A.D. 2015, and to be presented for final passage on the 6th day of October, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 6th day of October, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk