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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/15/2018 - SECOND READING OF ORDINANCE NO. 059, 2018, APPROPRAgenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY May 15, 2018 City Council STAFF John Stokes, Natural Resources Director Barb Brock, Natural Areas Financial Coordinator Chris Van Hall, Legal SUBJECT Second 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 This Ordinance, unanimously adopted on First Reading on May 1, 2018, appropriates $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 Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, May 1, 2018 (w/o attachments) (PDF) 2. Ordinance No. 059, 2018 (PDF) Agenda 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: ATTACHMENT 1 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) ATTACHMENT 1 -1- 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 -2- 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. -3- 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 Pro Tem ATTEST: _______________________________ City Clerk