HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/03/2015 - FIRST READING OF ORDINANCE NO. 135, 2015, ADOPTINGAgenda 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.
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:
Agenda Item 8
Item # 8 Page 2
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.
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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
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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.
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__________________________________
Mayor
ATTEST:
_______________________________
City Clerk