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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/05/2020 - SECOND READING OF ORDINANCE NO. 063, 2020 APPROPRIAgenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY May 5, 2020 City Council STAFF Barb Brock, Natural Areas Financial Coordinator Zoe Shark, Public Engagement Manager Ingrid Decker, Legal SUBJECT Second Reading of Ordinance No. 063, 2020 Appropriating Prior Year Reserves for Natural Areas Land Conservation, Legally Required Water Rights Infrastructure and Urgent Trail Construction Not Included in the 2020 Adopted City Budget. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on April 21, 2020, is coming to Council now because the Natural Areas Department is mandated by ballot to conserve land and funds are needed for a real estate closing on June 30 as well as anticipated closings throughout the year. Reappropriations also will support the completion of two infrastructure projects. One is legally required for water rights and the other is critical to prevent stormwater overtopping of Prospect Road. The proposed reappropriation for critical trail work is seasonally dependent and even more urgent given skyrocketing visitation due to the COVID-19 pandemic. This item appropriates $8,770,000 in prior year reserves in the Natural Areas Fund. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, April 21, 2020 (w/o attachments) (PDF) 2. Ordinance No. 063, 2020 (PDF) Agenda Item 16 Item # 16 Page 1 AGENDA ITEM SUMMARY April 21, 2020 City Council STAFF Barb Brock, Natural Areas Financial Coordinator Zoe Shark, Public Engagement Manager Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 063, 2020 Appropriating Prior Year Reserves for Natural Areas Land Conservation, Legally Required Water Rights Infrastructure and Urgent Trail Construction Not Included in the 2020 Adopted City Budget. EXECUTIVE SUMMARY This is coming to Council now because the Natural Areas Department is mandated by ballot to conserve land and funds are needed for a real estate closing on June 30 as well as anticipated closings throughout the year. Reappropriations also will support the completion of two infrastructure projects. One is legally required for water rights and the other is critical to prevent stormwater overtopping of Prospect Road. The proposed reappropriation for critical trail work is seasonally dependent and even more urgent given skyrocketing visitation due to the COVID-19 pandemic. This item appropriates $8,770,000 in prior year reserves in the Natural Areas Fund. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Funding dedicated to the Natural Areas Department (NAD) 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. The purpose of this item is to appropriate $8,770,000 in unspent 2019 funds in the Natural Areas Fund for use in 2020. Of the total appropriation, $8,400,000 will be used for land conservation. With over $10 million in land acquisitions under negotiation, it is likely that most of these funds specifically for land conservation will be spent in 2020. Of the total appropriation $300,000 will be used for new essential purposes not included in the Natural Areas 2020 Budget and $70,000 to complete a project started in 2019. These items are described in more detail below. After this appropriation Natural Areas will have a total fund balance over $10 million for future land conservation, capital replacement, major restoration, and major trail and trail head projects. The fund balance can be used as necessary to cover revenue shortfalls. The funds for NAD come from the following designated sources of revenue: The 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. All 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 more specifically are: ATTACHMENT 1 Agenda Item 16 Item # 16 Page 2 $8,470,000 Unspent 2019 Budgeted Funds – being appropriated for same purpose $ 300,000 Unspent 2019 Funds – being appropriated for new purposes $8,770,000 Prior Year 2019 Reserves The anticipated use of these funds is as follows: Land Conservation - $8,400,000 in unspent funds restricted specifically for land conservation to fund property acquisition efforts per the Natural Areas Master Plan. Planning and Special Projects - $70,000 to finish the installation of water surface area monitoring equipment started in 2019 for administration of a legally binding and required water augmentation plan; and $200,000 to repair and restore riverbank damage at Riverbend Ponds Natural Area in equal partnership with Transportation and Utilities. The project is intended to prevent the Poudre River from breaking out and potentially overtopping Prospect. This essential public safety project is currently under construction in order to be completed prior to the spring runoff and potential flooding; Natural Areas will use these funds to reimburse Utilities for the work it is performing. Trails and Visitor Amenities - $100,000 for reconstructing the Foothills Trail across Maxwell Natural Area per the Foothills Management Plan. This section of the Foothills Trail is heavily used, difficult to maintain, currently rated in poor condition, and in urgent need of reconstruction. CITY FINANCIAL IMPACTS This Ordinance increases 2020 appropriations in the City’s Natural Areas Fund by $8,770,000. The requested total appropriation of $8,770,000 in the Natural Areas Fund represents 2019 appropriations that were unspent and unencumbered at year-end 2019. These funds are restricted to the purposes of the Natural Areas Department and the $8,400,000 is restricted specifically to land conservation. Natural Areas will have a remaining fund balance over $10 Million for future projects that may be used as necessary to cover revenue shortfalls over the next few years. BOARD / COMMISSION RECOMMENDATION At its regular meeting on March 11, 2020, the Land Conservation and Stewardship Board voted unanimously, to recommend that City Council approve an appropriation of $10,141,000. However, due to concerns that the COVID-19 emergency will reduce revenues in 2020 and perhaps 2021, staff has chosen to reduce the overall appropriation presented to the LCSB by $1,371,000 primarily for trails and restoration projects that will be delayed to future years as funds are available. (Attachment 1) 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 and Stewardship Board minutes, March 11, 2020 (PDF) -1- ORDINANCE NO. 063, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES FOR NATURAL AREAS LAND CONSERVATION, LEGALLY REQUIRED WATER RIGHTS INFRASTRUCTURE AND URGENT TRAIL CONSTRUCTION NOT INCLUDED IN THE 2020 ADOPTED CITY BUDGET WHEREAS, the City is committed to preserving natural areas and providing educational, interpretive and appropriate recreational opportunities to the public; and WHEREAS, Natural Areas Department programming implements open land conservation priorities identified in the City’s Comprehensive Plan by purchasing conservation easements and fee 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, Article V, Section 11 of the City Charter requires all appropriations unexpended or unencumbered at the end of the fiscal year to lapse to the applicable general or special revenue fund, except appropriations for capital projects and federal or state grants, which do not lapse until completion of the capital project or expiration of the respective grant; and WHEREAS, the City Manager has recommended the appropriation from prior year reserves in the Natural Areas Fund of a total of $8,770,000, comprised of unspent and unencumbered appropriations from 2019, to be used for land conservation, installation of monitoring equipment for administration of a legally binding and required augmentation plan, repair of riverbank damage to assist in flood control, and reconstruction of the Foothills Trail; and WHEREAS, this appropriation benefits public health, safety and welfare of the citizens of Fort Collins and serves the public purpose of supporting Natural Areas conservation activities and projects; 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 WHEREAS, the City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated in the Natural Areas Fund and will not cause the total amount appropriated in the Natural Areas Fund to exceed -2- the current estimate of actual and anticipated revenues to be received in that fund during this fiscal year. 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 EIGHT MILLION SEVEN HUNDRED SEVENTY THOUSAND DOLLARS ($8,770,000) to be used for land conservation, special projects, and trail construction, to benefit the residents of the City. Introduced, considered favorably on first reading, and ordered published this 21st day of April, A.D. 2020, and to be presented for final passage on the 5th day of May, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of May, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk