HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/01/2018 - FIRST READING OF ORDINANCE NO. 059, 2018, APPROPRIAgenda Item 5
Item # 5 Page 1
AGENDA ITEM SUMMARY May 1, 2018
City Council
STAFF
John Stokes, Natural Resources Director
Barb Brock, Natural Areas Financial Coordinator
Chris Van Hall, Legal
SUBJECT
First Reading of Ordinance No. 059, 2018, Appropriating Prior Year Reserves for the Purpose of Providing
Natural Areas Programming Not Included in the 2018 Adopted City Budget and Authorizing the Transfer of
Appropriations from the Natural Areas Fund into the Capital Project Fund for the Whitewater Park Project.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate $10,000,000 in prior year reserves and unanticipated revenues in
the Natural Areas Fund and to include a transfer of $273,812 to the Capital Projects Fund for the Whitewater
Park project. These appropriations are for land conservation, restoration of wildlife habitat, a transfer of
prior year reserves and commitments to fund restoration of the Poudre River at the Whitewater Park, as well
as other Natural Area Department programs to benefit the citizens of Fort Collins.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading
BACKGROUND / DISCUSSION
Funding for the Natural Areas Department (NAD) for purposes other than capital projects, lapses each year if
not spent. Unspent funds need to be appropriated into the following year’s budget before they can be used.
Of the total appropriation, $7,905,019 will be used for land conservation. Over $7,300,000 in land acquisitions
are under negotiation; there is a reasonable likelihood that most of these funds will be spent in 2018.
In addition to prior year reserves and unspent 2017 appropriations, NAD received $1,171,660 in
unanticipated revenues; these funds are being appropriated for the purpose of providing Natural Areas
programming not included in the 2018 adopted City Budget.
The funds for NAD come from the following designated sources of revenue, including: City-Open Space Yes!
¼ cent sales tax; Larimer County-Help Preserve Open Space ¼ cent sales tax; and, miscellaneous
anticipated and unanticipated revenues. All of these funds are restricted to the purposes of the Natural Areas
Department, including unanticipated revenues which consist generally of income from sales tax revenues,
easements, leases or grants.
The prior year reserve funds being appropriated in this Ordinance are more specifically described:
$ 8,828,340 Unspent 2017 Budgeted Funds - being reappropriated for same purpose
$ 1,171,660 Unanticipated Revenues
$10,000,000 Prior Year 2017 Reserves
The anticipated use of these funds is as follows:
Agenda Item 5
Item # 5 Page 2
Land Conservation - $7,905,019 will fund land conservation efforts per the Natural Areas Master Plan.
Resource Management - $1,466,169 will fund: $1,197,550 in unspent 2017 funds will fund restoration of Udall
& Kingfisher Natural Areas, including wetland mitigation for Longview Trail. In addition, $268,619 is for water
augmentation infrastructure and for the Arapaho Bend bank restoration.
Facility Operations - $210,000 will fund: the relocation and installation of a modular house recently acquired
with a natural area property, that will serve as a temporary office building for Natural Areas staff for the 10 plus
years; replacement of inefficient solar panels on the Main Office Building; and the installation of a larger
electrical transformer to accommodate the addition of solar power on the Nix Farm campus.
Land Management - $100,000 will fund: $10,000 for administrative costs for Nature in the City, $30,000 for a
utility vehicle for Soapstone, $40,000 for costs of repair damages from the 2013 flood at Soapstone, and
$20,000 for ecological monitoring and inventory.
River Health - $45,000 in unspent 2017 funds for match to a Colorado Water Conservation Board Grant.
Whitewater Park - $273,812 in unspent 2017 funds will help fund the restoration of the Poudre River and be
transferred into the Cache la Poudre Whitewater Park capital project. This is a portion of the $1,000,000
Natural Area commitment to the Park.
CITY FINANCIAL IMPACTS
This Ordinance increases 2018 appropriations in the City’s Natural Areas Fund by $9,726,188. This also
includes a transfer from the Natural Areas fund to the Capital Projects fund of $273,812. The requested total
appropriation of $10,000,000 in the Natural Areas Fund and transfer to the Capital Projects fund represents
2017 appropriations that were unspent and unencumbered at year-end 2017 and unanticipated revenues.
These funds are restricted to the purposes of the Natural Areas Department.
BOARD / COMMISSION RECOMMENDATION
At its April 11, 2018 meeting, the Land Conservation and Stewardship Board voted unanimously, to
recommend that City Council approve the appropriation.
PUBLIC OUTREACH
Natural Areas Funds will be spent in alignment with the Natural Areas Master Plan, which was extensively
reviewed by the public prior to its adoption in October 2014.
ATTACHMENTS
1. Land Conservation & Stewardship Board Minutes, April 11, 2018 (draft) (PDF)
Land Conservation & Stewardship Board
April 11, 2018
Minutes Excerpt
2018 Reappropriation
John Stokes, Natural Areas Director presented the annual reappropriation of prior year
reserves to request an LCSB recommendation to City Council.
John explained that funding for the NAD is a lapsing fund. Unspent funds need to be
reappropriated every year before they can be used. Much of the money is in the land
conservation budget, which we will carry over to be spent in land conservation. The rest of the
funds are for restoration of wildlife habit, Poudre River restoration around the Water Park and
other Natural Areas programs. John provided a breakdown of the funds in a memorandum.
Discussion:
The following summarizes various concerns and questions from the board.
John explained the unanticipated revenue, listed in the breakdown of unspent funds comes from
Help Preserve Open Space revenues that we under projected. The initial number was around
$1M. Internally the finance department gives us revenue projections for Open Space Yes, that’s
the city sales tax, however they ask NAD to provide a revenue projection for Help Preserve
Open Space. This projection is typically done more conservatively and we were off the mark this
year. It allows us to put more money in land conservation, which is where we typically
anticipate revenues.
John explained the $268K for water augmentation infrastructure and the Arapaho Ben bank
restoration. NAD recently obtained a water decree from Water Court that would allow the
control of water levels in some of the Natural Area ponds that are groundwater fed ponds. This
would allow us to manage the moisture in the soil to get different plant communities. We now
need funding to install the infrastructure needed to manage the water in those ponds.
Daylan explained the $10K for administrative costs for Nature in the City. Five thousand dollars
of that was left over from last year and the additional $5K is for administrative to assist with the
Certified Natural Area Program that Nature in the City is taking over.
ATTACHMENT 1
John explained the $45K funds for match to a Colorado Water Conservation Board Grant.
That’s money that NAD had in our budget last year that we didn’t spend. It was specifically
intended to support river health. We didn’t spend that so we are moving it into this year’s
budget. Kelly thought it should be general fund dollars.
Vicky McLane made a motion that the LCSB recommend that City Council approve the
proposed 2018 appropriation of prior year Natural Area reserves.
Marcia Mallory-Patton seconded the motion.
The motion was unanimously approved.
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ORDINANCE NO. 059, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES FOR THE PURPOSE OF
PROVIDING NATURAL AREAS PROGRAMMING NOT INCLUDED IN
THE 2018 ADOPTED CITY BUDGET AND AUTHORIZING THE
TRANSFER OF APPROPRIATIONS FROM THE NATURAL AREAS
FUND INTO THE CAPITAL PROJECT FUND FOR THE WHITEWATER PARK PROJECT
WHEREAS, the City is committed to preserving natural areas and providing educational,
interpretive and appropriate recreational opportunities to the public; and
WHEREAS, Natural Areas programming implements open land conservation priorities
identified in the City’s Comprehensive Plan by purchasing conservation easement interests in
key natural areas, community separators, or other open lands; providing stewardship for lands
purchased; and developing trails and interpretive features for public use; and
WHEREAS, the Natural Areas Department is funded primarily through the collection of
City Open Space – Yes! sales and use tax revenue, as well as revenues from the Larimer County
Help Preserve Open Space sales and use tax, investment earnings, and other miscellaneous
revenues deposited in the Natural Areas Fund; and
WHEREAS, funds for the City’s Natural Area Department come from City – Open Space
Yes!, ¼ Cent sales tax; the Larimer County – Help Preserve Open Space ¼ cent sales tax; and,
miscellaneous anticipated and unanticipated revenues, which funds are restricted to the purpose
of the Natural Areas Department; and
WHEREAS, the purpose of this item is to appropriate $10,000,000 in prior year reserves
and unanticipated revenues in the Natural Areas Fund for land conservation, restoration of
wildlife habitats, and Natural Area Department programs; and
WHEREAS, $7,905,019 of these funds will be used to acquire land for conservation and
other conservation efforts in accordance with the Natural Areas Master Plan; and
WHEREAS, the remaining funds will be used for restoration of the Udall and Kingfisher
Natural Areas ($1,197,550), water augmentation infrastructure for Arapahoe Bend bank
restoration ($268,619), facility operations ($210,000), land management ($100,000), river health
($45,000), and restoration of the Poudre River at Whitewater Park ($273,812); and
WHEREAS, this appropriation benefits public health, safety, and welfare of the citizens
of Fort Collins and serves the public purpose of conserving land and restoring wildlife habitats;
and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council to
appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be
available from reserves accumulated in prior years, notwithstanding that such reserves were not
previously appropriated; and
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WHEREAS, Article V, Section 11 of the City Charter requires all appropriations
unexpended or unencumbered at the end of the fiscal year lapse to the applicable general or
special revenue fund, except appropriations for capital projects and federal or state grants do not
lapse until completion of the capital project or expiration of the respective grant; and
WHEREAS, the City Manager has recommended the appropriation described herein and
has determined that this appropriation is available and previously unappropriated from the
Natural Areas Fund and will not cause the total amount appropriated in the Natural Areas Fund
to exceed the current estimate of actual and anticipated revenues to be received in that fund
during any fiscal year; 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; and
WHEREAS, the City Manager has recommended the appropriation from prior year
reserves in the Natural Areas Fund of a total of $10,000,000, comprised of $8,828,340 in unspent
and unencumbered appropriations from 2017 and $1,171,660 in unanticipated revenue, to be
used for acquisition, construction, enhancement and maintenance of trail systems, wildlife
habitat and other natural areas to benefit the citizens of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations
and findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated from prior year reserves in the Natural
Areas Fund the sum of TEN MILLION DOLLARS ($10,000,000) to be used for acquisition,
construction, enhancement and maintenance of trail systems, wildlife habitat and other natural
areas to benefit the citizens of the City.
Section 3. That the unexpended appropriated amount of TWO HUNDRED
SEVENTY-THREE THOUSAND EIGHT HUNDRED TWELVE DOLLARS ($273,812) in the
Natural Areas Fund is authorized for transfer to the Capital Projects Fund and appropriated
therein for the Whitewater Park Project.
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Introduced, considered favorably on first reading, and ordered published this 1st day of
May, A.D. 2018, and to be presented for final passage on the 15th day of May, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 15th day of May, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk