HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/06/2018 - FIRST READING OF ORDINANCE NO. 136, 2018, ADOPTINGAgenda Item 6
Item # 6 Page 1
AGENDA ITEM SUMMARY November 6, 2018
City Council
STAFF
Jason Licon, Airport Director
Judy Schmidt, Legal
Mike Beckstead, Chief Financial Officer
SUBJECT
First Reading of Ordinance No. 136, 2018, Adopting the 2019 Budget and Appropriating the Fort Collins Share
of the 2019 Fiscal Year Operating and Capital Funds for the Northern Colorado Regional Airport.
EXECUTIVE SUMMARY
The purpose of this item is to adopt the 2019 budget for the Northern Colorado Regional Airport and
appropriate Fort Collins’ share of the 2019 fiscal year operating and capital funds for the Airport.
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 Northern Colorado Regional Airport, located approximately 16
miles southeast of downtown Fort Collins, just west of Interstate 25. 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 Northern
Colorado Airport provides a regional economic impact of approximately $129.4 million annually.
All revenues derived from the Airport are applied to both operating and capital expenditures. 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. All grant
resources are funded through aviation taxes and fees.
The annual operating costs for 2019 for the Airport are $2,746,915, and the City of Fort Collins contribution
amount is $177,500. The Airport has a considerable amount of its budget dedicated to its capital program for
facility improvements and maintenance in 2019, in addition to an increase in the Intergovernmental Agreement
appropriation for the Northern Colorado Regional Airport Commission special projects account.
Agenda Item 6
Item # 6 Page 2
FAA Grants $850,000
State Grants $42,500
Airport Revenues $92,500
Airport Reserves $500,000
Total $1,485,000
The $500,000 Airport Reserve is an appropriation for use by the Northern Colorado Regional Airport
Commission for discretionary Airport projects. This Airport Reserves appropriation will not require additional
funding from the Cities and implements an approved amendment of the Intergovernmental Agreement (IGA)
for the joint operation of the Airport signed in June 2016. The amendment to the IGA permits the expenditure
of these appropriated funds so long as expenditures from Capital Reserves and Operation Reserves included
in the approved budget do not exceed stated limits (the lesser of 25% of the approved annual airport budget,
or 50% of the unassigned balances in the Airport Fund). The proposed 2019 Airport Budget use of reserves
does not exceed these limits and the City of Fort Collins 50% appropriation for these capital expenditures
identified above is $742,500.
On July 19, 2018, the Northern Colorado Regional Airport Commission recommended the proposed 2019
Airport Budget for City Council approval. The City of Loveland’s City Council has adopted on First Reading an
ordinance appropriating the 2018 Airport Budget on October 16, with the second reading being held on
November 6.
CITY FINANCIAL IMPACTS
This Ordinance appropriates the City’s 50% share of the annual appropriation for fiscal year 2019 for the
Northern Colorado Regional Airport operations and capital budgets, which totals $1,373,457 and is 50% of the
$2,746,915 combined 2019 Airport operating and capital budget. Of this amount the City of Fort Collins will be
providing $177,500 from the City’s General Fund. 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 total Airport operating and capital improvement fund budget.
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ORDINANCE NO. 136, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE 2019 BUDGET AND APPROPRIATING THE FORT COLLINS
SHARE OF THE 2019 FISCAL YEAR OPERATING AND CAPITAL IMPROVEMENT
FUNDS FOR THE NORTHERN COLORADO REGIONAL 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, now known as the Northern Colorado Regional
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 Restated Intergovernmental Agreement for
the Joint Operation of the Fort Collins-Loveland Municipal Airport dated January 22, 2015, and
the First Amendment to the Amended and Restated Intergovernmental Agreement for the Joint
Operation of the Fort Collins-Loveland Municipal Airport, now known as the Northern Colorado
Regional Airport dated June 7, 2016, (collectively, 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 2019
Airport budget totaling $2,746,915, of which the City’s 50% share is $1,373,458 ($1,261,915 for
operations and $1,485,000 for capital); and
WHEREAS, the City Council is in the process of considering the City’s 2019 budget and
Ordinance No 133, 2018, 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 both Cities the
revenues of, and other financial contributions to, the Airport in a fund, which includes
unappropriated and unencumbered, reserves (the “Airport Fund”); and
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WHEREAS, the City’s 50% share of the 2019 Airport operating costs, to be held in the
Airport Fund, is $630,958; and
WHEREAS, funding for the 2019 capital improvements has been identified as follows:
FAA Grant $850,000
State Grant 42,500
Airport Revenues 92,500
Airport Reserves 500,000
Total $1,485,000; and
WHEREAS, the City’s 50% share of the 2019 Airport capital improvement costs, to be
held in the Airport fund, is $742,500; and
WHEREAS, the Airport Reserves item is an appropriation for use by the Northern
Colorado Regional Airport Commission for discretionary Airport projects; and
WHEREAS, City staff has determined that the requested appropriation of Airport
Reserves in the 2019 Airport Budget meets the required limits set forth in the IGA; and
WHEREAS, this appropriation will satisfy the City’s obligations under the IGA.
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 the City Council hereby approves and adopts the 2019 Airport
operating and capital budget totaling $2,746,915 ($1,261,915 for operations and $1,485,000 for
capital), a copy of which is attached hereto as Exhibit “A” and incorporated herein by reference.
Section 3. That the City Council hereby appropriates in the Airport Fund $630,958 to
be expended to defray the City’s 50% share of the 2019 operating costs of the Airport.
Section 4. That the City Council hereby appropriates in the Airport Fund $742,500 to
be expended to defray the City’s 50% share of the 2019 capital costs of the Airport.
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Introduced, considered favorably on first reading, and ordered published this 6th day of
November, A.D. 2018, and to be presented for final passage on the 20th day of November, A.D.
2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 20th day of November, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Northern Colorado Regional Airport
The Northern Colorado Regional Airport (FNL) has served as a public regional air transportation center since 1964.
The Airport is certified by the Federal Aviation Administration (FAA) as a commercial service airport, and it is
administered and operated jointly by the Cities of Fort Collins and Loveland. The Airport has 265 based aircraft,
and accommodates approximately 95,000 flight operations annually. These operations range from commercial air
carrier, private charter, business and corporate aviation, emergency medical transport, aerial fire suppression,
flight training, and private transportation.
The Airport supports many aviation based businesses including a full service fixed base operator that provides
aircraft fueling and concierge services, three flight training schools, two aircraft maintenance and repair stations,
and one avionics center. The Airport is also host to a variety of private and corporate aviation flight departments
for locally based companies that require access to the airport to remain competitive in today’s global markets.
According to the Economic Impact Study conducted in 2013 by the Colorado Department of Transportation
Division of Aeronautics, the Airport contributes approximately $129 million annually to the regional economy.
This impact is derived through Airport associated activities and area spending from visitors. The study also
identified 826 jobs that were directly associated with the Airport through administrative and operational support,
airport businesses, capital improvement investments, and visitor spending.
The Airport generates most of its operational and capital resources, and leverages Federal and State grant
resources to provide support for infrastructure and planning needs. The Airport’s self-generated revenues come
from airport operational activities including the leasing of hangars and airport owned land for privately owned
hangars, aviation fuel sales, and commercial air carrier activities. The City of Loveland, through intergovernmental
agreement (IGA), provides support services for the Airport; therefore, the City of Loveland adopts the Airport
budget and includes it in this document.
The Northern Colorado Regional Airport Commission is comprised of elected officials, staff, and appointed citizen
members from both Fort Collins and Loveland. The Commission has been delegated powers and authority from
both City Councils to make progress towards the goals of the Airport’s mission, which is “to provide a safe and
efficient air transportation facility to the public and aviation community by providing airport facilities that meet
Federal Aviation Administration 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.”
City of Loveland - 2019 Draft Budget & Capital Program - 8/31/18 183
EXHIBIT A
2017 2018 2018 2019 2019 Draft/ 2019 Draft/
DESCRIPTION ACTUALS ADOPTED REVISED DRAFT 2018 Adopted 2018 Adopted
$ Change % Change
Beginning Fund Balance 3,509,521 1,506,761 2,258,314 1,223,679 (283,082) -18.8%
Total Revenues
Intergovern 1,091,535 242,500 242,500 1,070,000 827,500 341.2%
Miscellaneous 31,424 23,500 33,469 21,000 (2,500) (10.6%)
Interest Income 25,965 22,812 22,812 20,000 (2,812) (12.3%)
Operating Revenues 932,407 908,300 908,300 893,250 (15,050) (1.7%)
Capital Contributions - 46,240 46,240 - (46,240) (100.0%)
Total Revenues 2,081,331 1,243,352 1,253,321 2,004,250 760,898 61.2%
Total Expenditures & Capital
AIR-Airport 3,328,858 1,572,700 2,284,156 2,242,665 669,965 42.6%
AIR-Airport - FBO Rep and Maint 3,680 3,800 3,800 4,250 450 11.8%
Northern Colorado Regional Airport 3,332,538 1,576,500 2,287,956 2,246,915 670,415 42.5%
Ending Fund Balance 2,258,314 1,173,613 1,223,679 981,014 (192,599) -16.4%
Net Income (1,251,208) (333,148) (1,034,635) (242,665) 90,483 (27.2%)
Northern Colorado Regional Airport
City of Loveland - 2019 Draft Budget & Capital Program - 8/31/18 184
Northern Colorado Regional Airport
Full-Time Equivalents (FTEs) Summary
2017
Actual
2018
Adopted
Change
2018
Adopted
Total
2018
Mid-Year
Change
2018
Revised
Total
2019
Proposed
Change
2019
Proposed
Total
FTEs by Fund
Northern Colorado Regional Airport 6.000 - 6.000 - 6.000 - 6.000
Total 6.000 - 6.000 - 6.000 - 6.000
FTEs by Division
Airport 6.000 - 6.000 - 6.000 - 6.000
Total 6.000 - 6.000 - 6.000 - 6.000
City of Loveland - 2019 Draft Budget & Capital Program - 8/31/18 185
Northern Colorado Regional Airport
Dashboard Stats 2015
Actual
2016
Actual
2017
Actual
2018
Estimated
2019
Projected
Total Aircraft Based on Field 245 250 255 263 267
Average Take Off and Landings Per
Day 1 260 260 260 270 280
Total Annual Enplaned Passengers on
Certified Air Carrier Aircraft 2 3,445 4,559 3,192 3,000 10,000
Hangars 3 /% Occupancy 209/100% 209/100% 211/100% 214/100% 220/100%
Airport Self-Generated Revenue $618,216 $645,398 $703,831 $669,500 $776,750
DRAFT
08/02/18
1
Numbers currently estimated; actuals will be available upon implementation of tower technology.
2 Total Annual Enplaned Passengers on Certified Air Carrier Aircraft is significantly increasing due to the return
of commercial airline service as a result of the remote air traffic control tower project.
3 Aircraft hangars range in size from 1,000 to 35,000 square feet and can accommodate one or multiple aircraft. The
Airport currently has one multi-hangar development project underway and anticipates more to be built in the
future to accommodate demand.
Select Performance Measures are included for most City departments. The full list of performance measures resulting
from Phase 1 of the City's Performance Measures Project are available in a separate document. Phase 1 measures are
undergoing review for accuracy, finer definition, and data availability. However, they provide a relative sense of
workload trends, and afford policy makers and the public with an opportunity to provide feedback on measures that are
most important and informative. Phase 2 will incorporate feedback received and development of 'effectiveness
measures' to provide an additional dimension of information available to understand the effectiveness of services
provided by the City. The current project timeline includes a January 2019 Phase 2 completion date.
City of Loveland - 2019 Draft Budget & Capital Program - 8/31/18 186