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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/03/2015 - FIRST READING OF ORDINANCE NO. 139, 2015, BEING THAgenda 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) 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: $ 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 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: 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: $ 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 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 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. 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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 9 2016 Budget Changes 10 $ 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 ‒ 2016 Budget Revision Requests: $32.1M o Ongoing: $14.5M o One-Time: $17.6M ‒ 2016 Budget Revisions in General Fund: $4.1M o Ongoing: $1.9M o One-Time: $2.2M 2016 Budget Revisions 11 Note: The amounts above include transfers between funds. Also, the change in Total City Appropriations of $30.1M (slide 9) 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. 2016 Proposed Budget by Outcome Total $566.5 million - Wastewater - Natural Areas - Environmental Services - Police -Fire - Water - Internal Services -Stormwater - Administration - Benefits - Equipment Fund Note: The total of $566.5M includes $52.0M for items like transfers between funds, debt service, payments to retirees and insurance costs. Economic Health, $147.2 Safe Community, $127.1 High Performing Government, $93.4 Transportation, $56.0 Environmental Health, $47.7 Culture and Recreation, $36.8 Community and Neighborhood Livability, $6.3 12 - Development Review - Economic Programs -Electric ‒ Adopted 2015-16 Budget o www.fcgov.com/budget ‒ Financial Transparency o www.fcgov.com/openbook ‒ Various Financial Reports o www.fcgov.com/finance ‒ Community Dashboard o www.fcgov.com/dashboard Online Financial Resources 13 - 1 - 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 appropriating funds for fiscal year 2015; 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, 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: - 2 - 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: 2016 Proposed Appropriations Appropriation per Adopted Budget Amount of Adjustment As Adjusted GENERAL FUND $129,111,563 $4,097,430 $133,208,993 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 0 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 - 3 - 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 - 4 - 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 $32,125,339 $563,376,909 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 THREE HUNDRED SEVENTY-SIX THOUSAND NINE HUNDRED NINE DOLLARS ($563,376,909) 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. - 5 - 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