Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/16/2007 - FIRST READING OF ORDINANCE NO. 118, 2007, BEING T ITEM NUMBER : 21 AGENDA ITEM SUMMARY DATE : October 16 , 2007 FORT COLLINS CITY COUNCIL STAFF : Darin Atteberry SUBJECT First Reading of Ordinance No . 118 , 2007, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2008 and Adopting the Budget for the Fiscal Years Beginning January 1 , 2008 and Ending December 31 , 2009, and Fixing the Mill Levy for Fiscal Year 2008 . RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading . FINANCIAL IMPACT This Ordinance represents the annual appropriation for fiscal year 2008 , and adopts the total City budget for fiscal year 2008 at $569 . 6 million and for fiscal year 2009 at $537 . 3 million. This Ordinance also sets the City mill levy at 9 . 797 mills, unchanged since 1991 , for fiscal year 2008 . EXECUTIVE SUMMARY The Annual Appropriation Ordinance is presented for First Reading. This ordinance sets the City Budget for the two year period 2008-2009 . The Ordinance is based on the City Manager' s Recommended Budget, with several additions directed by City Council at its October 9, 2009 Work Session. The additional offers total $ 1 ,038 ,916 in one-time General Fund expenditures and $ 1249148 (2009 costs) in on-going General Fund offers . If approved on First Reading, these additions to the Recommended Budget would be funded through the use of an additional $412,715 in General Fund Reserves and an increase in revenue from the Sales and Use Tax Vendor Fee of $390,000 per year (on-going.) These additions use all of the total available funds, including one-time Reserves and on-going Vendor Fee revenue. BACKGROUND This biennial budget represents the work of many dedicated employees who have come together for the second time to use the Budgeting for Outcomes (BFO) approach to develop this recommendation. Nearly 100 employees were involved in creating a recommended budget which builds on the ideas of transparency in the budget process, clear choices for how to allocate limited October 16 , 2007 -2 - Item No . 21 revenues and organizational accountability. These principles are the hallmark of the BFO process . The purpose of utilizing the BFO approach is to : • Identify what' s important to the community and develop a sound financial and service plan to achieve those outcomes ; • Allocate dollars based on current priorities and results, not simply increase last year' s spending; • Effectively deal with revenue limitations ; and • Emphasize accountability, efficiency, innovation and partnerships Using this approach, City Council and staff worked in close collaboration over the past two months to build a financial plan, based on revenue available, that will achieve service outcomes which matter most to our citizens and community. This work has resulted in the development of the Final 2008-2009 Budget. The approval of the Appropriation Ordinance on First Reading represents a major milestone in this process . The final budget is organized around seven Council approved Result Areas or Outcomes that citizens want and need: Economic Health Fort Collins has a healthy economy reflecting the values of our unique community in a changing world. Environmental Health Fort Collins creates, maintains and promotes a healthy and sustainable environment with an adequate, high quality water supply. Safe Community Fort Collins is a safe place to live, work, learn and play. Neighborhood Livability Fort Collins improves the livability, choices , and affordability of our neighborhoods . Cultural and Recreational Fort Collins provides diverse cultural and recreational Opportunities opportunities that foster physical and mental well-being for community members . Transportation Fort Collins improves the safety and ease of traveling to, from, and throughout the city. High Performing Government Fort Collins is a model for an entrepreneurial, high quality city government. October 16 , 2007 -3 - Item No . 21 In developing the budget, City Council and staff has continued to use the BFO process because it helps the City achieve a number of goals : • Create clarity in the budget process for the community • Allocate revenues to highest priorities and the outcomes citizens want and need • Understand the trade-off between services funded and unfunded • Emphasize accountability, efficiency, innovation and partnerships . Budget Highlights The 2008-09 Final Budget is a financial and service plan linked to the seven key outcomes and results that matter most to our citizens . Some key highlights of the City Budget include : 1 . The total budget for all City funds for 2008 is $569 . 6 million and $ 537 . 3 million for 2009 . (The total budget is lower in 2009 because of a major one-time expense in 2008 for the Mason Corridor Project.) 2 . The budget includes no tax increase. 3 . The tax revenue projections for 2008-09 are based on formulas developed and reviewed with City Council in May 2006 . Sales and use taxis projected to increase by 2 . 03 % in 2008 and 2 . 63 % in 2009 . 4. Minor inflation oriented fee adjustments are included for several programs . For example, the Recreation Division will make its typical market oriented inflationary adjustments to its user fees to reflect increased costs for hourly employees and supplies . 5 . Wastewater rates will increase 12% in 2008 and 11 % in 2009 . Electric rates are projected to increase 2 . 3 % to 2 . 7% in response to increases from Platte River Power Authority. 6 . The recommended budget includes no reductions in force . Several vacant positions were eliminated as departments worked to develop offers which were lean, efficient and targeted at the services citizens want and need. Budget Assumptions Net Operating • • - • ML2007 mZO08 % Changegomn2009 % Change et Operating $ 320 . 1 $ 338 . 1 5 . 6 % $ 351 . 5 4 . 0 % ebt $ 24 . 3 $23 . 9 - 1 . 6 % $ 26 . 2 9 . 6 % apital $ 33 . 0 $ 105 . 7 220 . 3 % $ 58 . 6 -44 . 60/ otal Net City $ 377 . 4 $467 . 7 23 . 9 % $436 . 3 -6 . 7 % nternal Transfers $ 95 . 1 $ 101 . 9 7 . 2 % $ 101 . 0 -0 . 9 % Total City Budget $472 . 5 $ 569 . 6 20 . 6 % $ 537 . 3 -5 . 7 % October 16 , 2007 -4- Item No . 21 As the budget development process began in early 2007 , City Council and staff met on several occasions to outline goals and assumptions for developing the recommended budget. Council also reviewed the Key Outcomes during the first Council goal setting retreat in April. Some of the key assumptions used in developing the Final Budget include : 1 . Limited revenue growth for 2008 and 2009 The local economy has improved throughout 2007, and staff continues to plan for a limited amount of sales tax revenue growth through 2008 and 2009 . 2 . Use of reserves With new retail development under construction, staff expects that sales tax revenues will improve significantly in 2010 . To bridge the gap between our current sales tax level and an expected improvement in 2010, the recommended budget used limited available reserves to eliminate the need to reduce services in the short-term. Approximately $3 million in General Fund reserves was used to balance the 2008-09 Recommended Budget. In the 2010- 11 Budget, the City expects that sales tax revenues will improve as new retailers are open and generating new sales tax revenue. Staff discussed the use of reserves with the City Council at its April 2007 retreat and received Council ' s consent to develop a recommended budget based on this assumption. At its October 9 Work Session, Council gave staff direction to include an additional amount of resources from General Fund reserves in the appropriation ordinance being considered on First Reading. By using an additional $400,000 in Reserves, the balance in the General Fund Reserve accounts would remain above the recommended level of 60 days Reserve ( 16 . 67% of General Fund expenditures . Council further agreed to formally review a General Fund reserve policy at an upcoming work session. 3 . Vendor Fee Policy Change The Appropriation Ordinance is based on the assumption that the City will modify its Vendor Fee, thus yielding additional sales tax revenue that can be applied to General Fund purposes. The Vendor Fee is paid to vendors who collect sales and use taxes on behalf of the City. Currently, approximately $700,000 is kept each year by businesses as a vendor fee . Staffproposed that the Vendor Fee could be reduced from 3 % to 1 %, yielding approximately $390 ,000 of additional revenue available to the City General Fund. The proposed vendor fee would allow vendors to keep 1 % ($45) of the first $4, 500 in tax collected. Vendors would keep approximately $310,000 annually, which would result in the City realizing a greater share of the actual sales and use tax collected. This does not change the sales tax rate that residents pay, but rather recoups a greater amount of it from the vendors who collect the taxes on the City' s behalf. Council directed staff to include this revenue increase in the Final Budget Appropriations Ordinance . To implement this change in the Vendor Fee for Collection of Sales Tax, an Ordinance will be presented for First Reading on November 6 . Second Reading will be October 16 , 2007 -5- Item No . 21 scheduled for November 20 to coincide with the Second Reading and final adoption of the 2008 -09 Budget. 4. New facilities must be operated and maintained In 2007 , three new facilities will open: the new Police Services building, the new Northside Aztlan Community Center, and Spring Canyon Community Park. While the capital funds for these projects were provided through debt financing and voter approved capital programs, the resources to operate and maintain them must be provided through existing General Fund sources . 5 . Public Safety needs and environmental issues are funding priorities As initial revenue allocations between the various Budget Outcomes were made, new resources were allocated to these priorities to enhance these services based on feedback provided to staff at the City Council retreat. 6 . Employee salary adjustments are planned for in 2008 and 2009 A basic assumption was made that employee salary adjustments would be funded. As a basic cost of doing business, it is essential to ensure that these cost increases are funded before making any decisions about additional services or enhancements . 7 . Economic health programs are vital to future revenues Investing in the local economy continues to be a priority for long-term financial stability, so economic health programs are a high priority. As staff developed the recommended budget, one of the messages sent to both our employees and residents is that 2008-09 are not expected to be "rebuilding years . " The City saw significant budget cuts in 2006-07 , including a large number of layoffs due to slow revenue growth. For 2008 -09, the budget is aimed at fine tuning our service level and addressing a limited number of emerging issues and high priority services with neither significant cuts nor enhancements expected. A limited number of enhancements which address the goals outlined above were included in approved offers . Though many appealing service enhancement offers were submitted by departments, Council found that they could fund only a limited number, given limited revenue growth. Adjustment to Recommended Budget During September and October, 2007, City Council and staff met in work sessions to review the City Manager' s Recommended Budget in detail. At its October 9 Work Session, Council gave staff general direction to include a number of additional offers in the appropriations ordinance to be considered on First Reading on October 16 . (See Offer Descriptions, Attachment 1 ) These included the following items : City Council Possible Funding List October 9, 2007 Work Session October 16 , 2007 -6- Item No . 21 Ongoing 2008 2009 167 . 1 HPG Sustainable City Government $ 67, 151 $ 69 , 048 TBD Envir. Air Quality Monitoring $ 20 , 000 211 . 2 Neigh Neighborhood Services—Grant Enhancement $ 5 , 000 $ 500 211 . 3 Neigh Neighborhood Services-Code Enforcement $ 17 , 500 $ 17 ,500 213 . 1 HPG Development Review Center-Innovative Tech $ 12.600 Ongoing Total $ 89 , 651 $ 124, 148 One time 30 . 4 HPG Network Services-Equipment (Voice over $ 39 , 974 $ 37 , 342 IP) * * 213 . 1 HPG Development Review Center-Innovative Tech $ 1211600 203 . 3 Neigh Enhancement of Human Services Grant $ 1009000 $ 1001000 Program TBD Envir Air Quality Monitoring $ 30 , 000 126 .2 Transp. Transfort Strategic Operating Plan Update $ 100 , 000 TBD Envir. Hazardous Waste Study $ 50 , 000 TBD Econ NCEDC Contribution $ 30 , 000 $ 30,000 203 .2 Neigh Partial Restoration of Affordable Housing Fund $ 200,000 $ 200,000 One time total $ 6715574 $ 3679342 "Note: Offer 30. 4 partially funded through Telecommunications Fund In order to fund these desired services, additional resources beyond those included in the 2008-09 City Manager' s Recommended Budget will be required to balance the Appropriation Ordinance . Council provided staff with direction to bring forward a proposal that includes the use of an additional $400,000 in General Fund Reserves and a change to the Sales and Use Tax Vendor Fee which would result in an additional $390,000 in sales tax revenue. In order to balance the appropriation to these desired purchases, the use of General Fund Reserves was increased slightly beyond the amount directed by Council to total $412,715 . The Partial Restoration of Affordable Housing Fund was also adjusted to be $200,000 in each year for a total of $400,000 in funds restored. In total, $ 1 ,252 , 715 in additional offers are included in the Final Budget. Of these offers, $ 1 ,038 ,916 fund one-time expenditures and $ 124, 148 (2009 costs) fund on-going programs . Conclusion October 16 , 2007 -7 - Item No . 21 The 2008 -2009 Final Budget is a sound financial plan to deliver the services we believe our citizens value most. The budgeting process has enabled us to focus and apply the resources available to key community outcomes . Citizens will receive excellent value for their tax dollars . Any final amendments agreed to by Council will be included in the second (and final) reading of the budget ordinances on November 20, 2007 . By Charter, the budget must be adopted and appropriations for the 2008 fiscal year must be approved by November 30. ATTACHMENTS 1 . Offer Descriptions : Additional Offers to Fund in 2008-09 Final Budget. 2 . City Council Offers for Funding Consideration: October 9 , 2007 Work Session (Revised) Attachment 1 Offer Descriptions Additional Offers to Fund in 2008-09 Final Budget October 9, 2007 Work Session 30.4 Network Equipment(Voice over IP) This offer requests funding for equipment to upgrade the City's fiber coax hybrid network necessary to continue the migration to Voice Over IP as well as to provide broadband capacity necessary to meet the needs of the organization 126.2 Transfort Strategic Operating Plan Update The Transfort Strategic Operating Plan was last updated in 2002. It focused on identifying transit needs, opportunities and constraints and developing an operating plan to support the strategic plan. The plan also laid out a four-phased approach to transition the existing circuitous transit network to a grid system by 2010. Based on the City's financial conditions, the Transfort Strategic Operating Plan implementation schedule fell behind. At present day, the City currently should be in Phase 3 of implementation as approved by City Council, but is still fixed in Phase 1 due to lack of funding sources. This offer would update the Transfort Strategic Operating Plan to reflect its existing condition and provide a strategic operational and financial plan, which will also identify potential new funding sources to carry the plan through full implementation. 167.1 Sustainable City Government This offer adds a new 0.5 FTE Environmental Planner to help green the operations of City government by working with departments on existing City sustainability goals such as paper reduction, solid waste reduction, promoting behaviors and polices that conserve energy, encouraging more sustainable employee commuting habits, promoting green purchasing and raising employee awareness of sustainable practices at the office and at home. In addition to work on sustainability goals, this new position will also provide needed help to coordinate assessments of City facilities and assist with implementation of Climate Wise program recommendations for the municipal government. 203.2 Partial Restoration of Affordable Housing Fund This is an enhancement offer to increase the amount of funding in the City's Affordable Housing Fund. The requested increase would add a total of $500,000 over the next two years, $250,000 per year in 2008 and in 2009. The Fund currently provides $133,000 per year that is distributed through the Competitive Process for the production of new affordable housing units for families below 80% of the Area Median Income (AMI). 203.3 Enhancement of Human Services Program This is an enhancement offer to increase the amount of funding in the Human Services Program. The requested increase would add $210,000 per year to the program that currently provides $345,934, distributed through the Competitive Process, to non-profit human/social service agencies that provide services to families below 80% of the Area Median Income. Services provided include such things as employment training, day-care, home-ownership education, and emergency shelters. The Competitive Process involves reviews of applications by the Community Development Block Grant Commission and a final decision on funding by the City Council. This enhancement was submitted in response to a Council request. 211.2 Neighborhood Services - Grant Enhancement This offer is an enhancement to the Neighborhood Quality, Maintenance and Innovative Code Compliance Offer in order to increase the service provided to neighborhoods wishing to utilize the Neighborhood Grant program. Grants are used for neighborhood projects including clean-up, Neighborhood Night Out social events and neighborhood signs. 211.3 Neighborhood Services - Code Enforce Enhancement In order to enhance our current level of service, we would need to add a seasonal, hourly inspector to help enforce the Weed Ordinance from early May to September 1 st. Of the 22,000 plus inspections we performed in 2006, over a quarter of the cases were for weed violations requiring approximately 6,436 inspections. Clearly, weed violations are the overwhelming daily service demand faced by code enforcement staff during the summer months, limiting available resources to enforce other codes. 213.1 Development Review Center- Innovative Technology This offer is for the acquisition and implementation of technologies specifically related to development review and construction plan submittal processing. This technology would enable staff to create a project-specific online information center where applicants, owners, developers, citizens, and staff would have online access to all project information, communications and workflow processes. This would greatly increase project coordination and collaboration between the participants, and potentially decrease the amount of time required to process applications. Automated notification features can be utilized to alert participants of various items, alleviating the need to routinely check on status. The ability to check required changes on resubmitted documents is facilitated through document overlay or side by side comparison features that highlight the differences, thereby increasing efficiency for the staff reviewer. As well, this technology would give staff a better and more comprehensive way to track pertinent data related to these review processes. TBD Additional Air Quality Monitoring Equipment This offer would add additional air quality monitoring equipment for particulates Capital costs are estimated at $30,000 and annual operating costs range from $10,000 - $20,000. Real-Time Particulate Monitoring would involve ongoing operation of an existing real-time particulate monitor and publication and distribution of hourly air quality data. It could include participating in AIRNOW, an existing cross-agency Air Quality reporting Web site that can provide up-to-date info, via pager or email, on EPA's Air Quality Index (with health advisories), PM concentration, Ozone, current air quality conditions and yesterday's summary. TBD NCEDC Contribution Funding is provided to support NCEDC programs and services that assist the City in implementing the Economic Action Plan, including the following: • Business retention and expansion • Clean Energy Cluster support • Technology Incubator support • Regional Economist support • Ongoing support for managing site selection inquires and State of Colorado incentives TBD Hazardous Waste Disposal Study This offer would fund a feasibility study for a disposal site for household hazardous waste. The offer of $50,000 would include one-time funds for the study only, with no funding for implementation. ttachment City Council Offers for Funding Consideration October 9, 2007 Work Session (Revised) Request Ongoing or Offer # Result Area Offer Name 2008 Cost 2009 Cost One-time One Time Only 166. 1 Environmental West Nile--fully fund $ 149156 ongoing partially funded in 2008 only; 2009 funded 127.3 Transportation Enhanced Travel Corridor--North College $ 200,000 one time 126.2 Transportation Transfort Strategic Operating Plan Update $ 1005000 one time Either year, prior to Transportation Master Plan 138 . 1 Transportation eCommerce Implementation--Parking Service $ 445000 one time 221 . 1 Neighborhood Eastside/Westside Neigh.Plan updates $ 1715000 one time TBD Environmental Hazardous Waste Disposal Facility (Estimate ONLY ) $ 200,000 ?? Staff does not have an estimate of either the one-time or ongoing cost TBD Econ. NCEDC Contribution $ 30,000 $ 305000 one-rime, 2 years 30.4 High Per£ Govt. Network Services--Network Equipment(Voice overIP) $ 88,850 $ 83 ,000 one time 2 one-time offers, partially funded thru Telecomm. Fund $ 848,006 $ 113 ,000 One Time Possible 203 .3 Neighborhood Enhancement of Human Services Grant Prog. $ 1005000 $ 1009000 ongoing partial, total request = $210,000 year 186. 1 Safe Community Traffic Calming (fund pilot?) $ 550,000 $ 550,000 ongoing Fund a pilot project? 184.2 Transportation Sign Replacement Program $ 389000 ongoing Ongoing project, first year funding included in 2009 Rec.Budget 88 . 16 Transportation Street Design & Const. Stds Suppt. & Maint. $ 5 ,000 $ 5 ,000 ongoing 88.6 Transportation Pedestrian Access--Enhancement $ 2755000 $ 3259000 ongoing 203 .2 Neighborhood Partial Restoration of Affordable Housing Fund $ 250,000 $ 2005000 ongoing Can be funded at any level desired by Council 211 .2 Neighborhood Neighborhohood Sevices--Grant Enhancement $ 51000 $ 5 ,000 ongoing $ 15223 ,000 $ 1 , 1859000 Ongoing 139.8 Safe Community PFA South Battalion $ 6645616 $ 5069424 ongoing 180k one time capital, balance ongoing, 3-6 mon lead time TBD Environmental Air Quality Monitoring $ 305000 $ 20,000 one time plus ongoing TBD Safe Community Police staffing $ 29000,000 $ 2,000,000 ongoing 167. 1 High Per£ Govt. Sustainable City Government $ 675151 $ 69,048 ongoing 213 . 1 High Per£ Govt. Development Review Center--Innovative Tech $ 1215600 $ 12,600 ongoing 211 .3 Neighborhood Neighborhood Services--Code Enforcement $ 179500 $ 17,500 ongoing 93 . 1 Neighborhood Neighborhood Parking Pilot program $ 289735 $ 21 ,205 ongoing $ 25929,602 $ 216469777 Grand Total $ 59000,608 $ 319449777 ORDINANCE NO. 118, 2007 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2008; ADOPTING THE BUDGET FOR THE FISCAL YEARS BEGINNING JANUARY 1, 2008, AND ENDING DECEMBER 31, 2009; AND FIXING THE MILL LEVY FOR FISCAL YEAR 2008 WHEREAS,the City Manager has,prior to the first Monday in September,2007,submitted to the Council a proposed budget for the next ensuing budget term, along with an explanatory and complete financial plan for each fund of the City, pursuant to the provisions of Article V, Section 2, of the City Charter; and WHEREAS, within ten days after the filing of said budget estimate, the Council set September 18 and October 2, 2007, as the dates for the public hearings thereon and caused notice of such public hearings to be given by publication pursuant to Article V, Section 3, of the City Charter; and WHEREAS, the public hearings were held on those dates and persons were given the opportunity to appear and object to any or all items and estimates in the proposed budget; and WHEREAS, Article V, Section 4, of the City Charter requires that, before the last day of November of each fiscal year, the Council adopt the budget for the ensuing term by ordinance and appropriate such sums of money as the Council deems necessary to defray all expenditures of the City during the ensuing fiscal year; 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 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; 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 Council. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. Budget a. That the City Council has reviewed the City Manager's 2008-2009 Recommended Budget, a copy of which is on file with the office of the City Clerk, and has approved certain amendments thereto. b. That the City Manager's 2008-2009 Recommended Budget, as amended by the Council, is hereby adopted, in accordance with the provisions of Article V, Section 4, of the City Charter and incorporated herein by reference; provided,however,that the comparative figures contained in the adopted budget may be subsequently revised as deemed necessary by the City Manager to reflect actual revenues and expenditures for the fiscal year 2007. C. That the adopted budget,as amended,shall be maintained in the office of the City Clerk and identified as "The Budget for the City of Fort Collins for the Fiscal Years Ending December 31,2008,and December 31,2009,as Adopted by the City Council on November 20, 2007." Section 2. AAvlropriations. That there is hereby appropriated out of the revenues of the City of Fort Collins, for the fiscal year beginning January 1,2008, and ending December 31,2008, the sum of FIVE HUNDRED SIXTY-NINE MILLION FIVE HUNDRED NINETY THOUSAND ONE HUNDRED FIFTY-FIVE DOLLARS ($569,590,155)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 following purposes, to wit: GENERAL FUND $107,690,574 ENTERPRISE FUNDS Golf $2,717,381 Light & Power Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,288,372 Capital: Service Center Additions 4,482,904 Southwest Enclave Annexation 800,000 Substation Improvements 5,222,621 Wi Fi 50,000 Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,555,525 Total Light& Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,843,897 -2 Storm Drainage Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,859,110 Capital: Basin Master Planning 90,000 Canal Importation Basin 5,000,000 Cooper Slough-Boxelder 400,000 Developer Repays 75,000 Drainage System Replacement 365,000 Dry Creek Basin 1,600,000 Service Center Improvements 81,775 Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,611,775 Total Storm Drainage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,470,885 Wastewater Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,607,768 Capital: Collection System Replacement 1,110,000 Collection System Study 50,000 Mulberry WRF Improvements 6,150,000 Northwest Trunk Sewer Expansion 2,000,000 Service Center Improvements 69,571 Sludge Disposal Improvements 150,000 Treatment Plant Improvements 750,000 Water Reclamation Replacement Program 3394,000 Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,073,571 Total Wastewater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,681,339 Water Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,432,962 Capital: Cathodic Protection 50,000 Distribution System Replacement 755,000 Halligan Reservoir Expansion 190,000 Master Plan Facilities 750,000 Meter Conversion Program 920,000 Service Center Improvements 136,006 Southwest System Improvements 50,000 Treatment Facility Improvements 75,000 Water Production Replacement Program 1,160,000 Water Supply Development 100,000 Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,186,006 Total Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,618,968 TOTAL ENTERPRISE FUNDS $ 183,332A70 -3- INTERNAL SERVICE FUNDS Benefits $20,793,276 Communications 2,384,802 Equipment 10,906,771 Self Insurance 3,352,985 Utility Customer Service & Administration 14.464,156 TOTAL INTERNAL SERVICE FUNDS $ 51,901,990 SPECIAL REVENUE FUNDS Capital Improvement Expansion Fund $ 459,981 Capital Leasing Corporation Fund 5,726,331 Cemeteries 629,884 Cultural Services &Facilities 5,008,662 Debt Service 1,352,038 General Employees' Retirement 2,684,342 Natural Areas Fund 9,225,217 Perpetual Care 70,438 Recreation 7,850,915 Sales and Use Tax 78,137,453 Street Oversizing 5,279,837 Transit Services 11,026,076 Transportation Services 28,503,751 TOTAL SPECIAL REVENUE &DEBT SERVICE FUNDS $155,954,925 CAPITAL IMPROVEMENT FUNDS General City Capital City Bridge Program $ 300,000 Police Facility 674,429 Railroad Crossing Replacement 100,000 TOTAL GENERAL CITY CAPITAL $1,074,429 1/4 Cent - Building on Basics Administration $ 58,889 Bicycle Program Plan Implementation 125,000 Intersection Improvements and Traffic Signals 2,506,052 Library Technology 744,000 North College Avenue Improvements 1,063,490 -4- Pedestrian Plan and ADA Improvements 300,000 TOTAL 1/4 CENT - BUILDING ON BASICS $ 4,797,431 1/4 Cent BCC -Streets and Transportation Mason Street Transportation Corridor $ 61,508,488 TOTAL 1/4 CENT STREETS AND TRANSPORTATION $ 61,508,488 Conservation Trust Fund Administration $ 242,389 Fossil Creek Trail 50,000 Open Space Acquisition 10,000 Trail Acquisition, Development&Repair 350,000 Transfer to General Fund-Parks Maintenance 687,496 Tri-City Trails 30,000 TOTAL CONSERVATION TRUST FUND $1,369,885 Neiyhborhood Parkland Fund Administration $ 419,963 Cottonwood Glen Park 150,000 Golden Meadows Park 175,000 Maple Hill Park 150,000 New Park Site Acquisition 400,000 New Park Site Development 150,000 Old Fort Collins Heritage Park 100,000 Park Site Equipment 15,000 Provincetowne Park 200,000 Registry Ridge Park 200,000 TOTAL NEIGHBORHOOD PARKLAND FUND $1,959,963 TOTAL CITY FUNDS $569,590,155 Section 3. Mill Levy a. That the 2008 mill levy rate for the taxation upon each dollar of the assessed valuation of all the taxable property within the City of Fort Collins as of December 31,2007, shall be 9.797 mills,which levy represents the amount of taxes -5- ITEM NUMBER : 22 AGENDA ITEM SUMMARY DATE : October 16 , 2007 FORT COLLINS CITY COUNCIL STAFF : Brian Janonis Terri Bryant Bill Bray SUBJECT Items relating to Utility Rates and Charges for 2008 . RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. Electric Board recommends adoption of the monthly electric rates and electric development fees ordinances . Water Board recommends adoption of the monthly wastewater rates and water, wastewater, and stormwater plant investment fee ordinances . FINANCIAL IMPACT The rate Ordinances are projected to increase the annual operating revenues of the Wastewater Fund by 12% and the Light and Power Fund by approximately 2 .3 % . No increases are proposed for water and stormwater monthly rates . The combined utility fees for a typical single family residence will increase $3 . 34 per month. Proposed water, wastewater and stormwater plant investment fees (PIFs) are updated to reflect a new customer' s impact on the system and maintain existing customers ' equity in the system. Proposed electric development fees and charges cover costs of new commercial and residential development. The financial impacts vary by the size and nature of the development. If the proposed fees are adopted, water, wastewater and stormwater plant investment fees, and electric development fees and charges will increase . The combined utility development fees for a typical single family residence (exclusive of raw water requirements which are not changing) will increase from $9 ,213 to $ 10,639 or 15 . 5 % . The proposed fees will be effective January 1 , 2008 . EXECUTIVE SUMMARY A . First Reading of Ordinance No . 119, 2007, Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees and Raw Water Requirements. B . First Reading of Ordinance No . 120, 2007 Amending Chapter 26 of the City Code Relating to Wastewater Rates and Charges . October 16 , 2007 -2 - Item No . 22 C . First Reading of Ordinance No . 121 , 2007 , Amending Chapter 26 of the City Code to Revise Sewer Plant Investment Fees . D. First Reading of Ordinance No . 122, 2007 Amending Chapter 26 of the City Code Relating to Electric Rates and Charges . E . First Reading of Ordinance No . 123 , 2007, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges . F . First Reading of Ordinance No . 124, 2007, Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees , G. First Reading of Ordinance No . 125 , 2007, Amending Chapter 26 of the City Code Relating to Utility Connection Fees and Miscellaneous Charges. Ordinance No. 120, 2007 and Ordinance No. 122 , 2007 establish monthly wastewater and electric rates for 2008 as follows : % Increase Wastewater 12 Electric 2 .0 - 2 . 6 The electric rate Ordinance also includes a housekeeping change to the power adjustment clause. Ordinance No . 125 , 2007 , updates utility connection fees and miscellaneous charges for returned items and turn-off notices to recover the cost of these services . Ordinances Nos. 1191 1211 123 , and 124, 2007, adopt revised water, sewer and stormwater plant investment fees and electric development fees . The fees are one-time charges paid by developers or builders for the cost of the utility infrastructure needed to serve new development. Per Council direction, plant investment fees are reviewed on an annual basis and revised during the biennial budget cycle . Plant investment fees (PIFs) for water, wastewater and stormwater were updated with the 2006-2007 budget. Electric development fees and charges are updated annually. BACKGROUND PLANT INVESTMENT FEES • WATER The water plant investment fees are developed to recover the current value of past investment and the current value of future growth-related investment through 2040 . This method includes calculating net water system equity, capacity units, and determining the net system equity per unit. Water system assets are valued at replacement costs adjusted by the construction cost index as published by Engineering News Record. Net system equity is determined by subtracting outstanding debt principal from the total replacement costs plus estimated future growth related to capital projects . That result is then divided by the future total plant capacity to determine unit cost. The October 16 , 2007 -3 - Item No . 22 unit cost is applied to an estimated representative annual usage for each customer class to determine the proposed water PIF . The following schedule details PIFs for the various customer classes . WATER PLANT INVESTMENT FEES BY CUSTOMER CLASS 2006 PIFs 2008-2009 Proposed Peak Day Current Peak Day Proposed Customer Class/Meter Size Usage d Charge Usa e d Charge Change Unit Fee ($ per gallon) $3.69 $4.03 9 .2°/ esidentiah Single Family Inside Use 191 $ 710 181 $ 730 3 °/ Outside Use - $/S . Ft. 86 $ 0.37 770 $ 0.36 -3°/ Multi-Family (per unit) Inside Use 133 $ 490 122 $ 490 0°/ Outside Use - $/S . Ft. 263 $ 0.28 232 $ 0.27 -4°/ Non-Residential (meter size) 3/a inch 19800 $ 69640 19730 $ 69970 5°/ linch 59230 $ 1 %300 59110 $ 209590 7°/ 1 'h inch 109470 $ 389630 109300 $ 419510 7°/ 2 inch 169710 $ 619660 169210 $ 659330 6°/ 3 inch 339240 $ 1225660 35 ,370 $ 1429540 > than 3 inches Based on specific customer requirements *differences due to rounding The impact to a typical single family residence (8 , 600 sq. ft. lot) is a decrease of $66 from $3 , 892 to $3 , 826. The decrease is due to a reduction in average usage by the residential class . Other In addition to updating the wastewater PIF charges, the Ordinance revises Section 26- 149 of the City Code which describes Raw Water requirements for non-residential service. The revision clarifies that the customer is required to provide Raw Water equal to 1 . 92 times the customer' s estimated peak annual use. The revisions apply ( 1 ) to a customer with two or more meters and (2) to a customer who increases their annual allotment. An additional change is to correct a spelling error wherein Raw Water Requirements are currently referenced as "RVR" and that is corrected to be "RNM„ • WASTEWATER The wastewater plant investment fees are developed using a method which assesses new customers based on an allocation of the costs of the existing facilities and the projected growth-related improvements . The utility foresees a significant amount of growth-related treatment plant projects on the planning horizon. The 2005 study of the wastewater plant investment fees recommended a 174% increase. Due to the magnitude of the proposed increase, Council directed a three-year phase- October 16 , 2007 -4- Item No . 22 in of the fees which was implemented beginning January, 2006 . The final phase of the 3 -phase implementation is included in the proposed 2008 wastewater PIFs . The proposed fees are shown in the following tables : WASTEWATER PLANT INVESTMENT FEES Customer Class/Meter Size Existing 2007 Proposed 2008 Volume Current Volume Proposed G d Charge G d Charge Change Single Family 340 $ 2,223 321 $ 3 , 194 43 .7% Multi-Family 236 $ 15583 208 $ 29069 30.7% Non-Residential (meter size) 3/4 inc 709 $ 4,749 624 $ 69206 30.7% 1 inch 1 , 814 $ 12, 151 19644 $ 169361 34.6% 1 '/z inc 3 ,279 $ 21 ,965 29854 $ 289396 29. 3% 2 inch 5 , 802 $ 38,865 55122 $ 505963 31 . 1 % 3 inch 12, 105 $ 819086 129209 $ 121 ,484 49 . 8% 4 inch and above assessed on individual basis Wastewater plant investment fees for a typical single-family residence in 2008 would increase from $2 ,223 to $3 , 194, or 43 . 7% . • STORMWATER Plant investment fees for stormwater are adopted on a citywide basis . All new development must provide on-site detention as specified in the master plan. Regional elements are sized to handle existing flows and to work in coordination with on-site detention in new developments . Stormwater PIFs pay for a developer' s proportionate share of the system infrastructure as it exists at the time they develop. The unit of measure used to allocate the value of the existing system between new customers and existing customers is acres of developed land, adjusted with a runoff coefficient (a measure of how water runs off various surfaces) . Proposed development fees are calculated by dividing the value of the current system, less outstanding debt, by the total acres of land (existing developed and developable) in the service area. This number is then adjusted by the average runoff for the system. The result is the unit value of the existing system per acre of developed land. 2008 % 2006 Proposed Change Fees Fees $3 070 $4 420 43.97% The significant increase in fees is due to the large investments in stormwater infrastructure over the last few years. 0 ELECTRIC October 16 , 2007 -5- Item No . 22 Electric development charges include the allocated and actual costs to the utility for each commercial or residential development. The two components of these charges are the Electric Capacity Fee for the off-site electric system, and the Building Site Charge for the on-site electric costs . The electric development charges are typically increased annually to adjust for inflation and cost increases . Increases range from 12% for residential and 20% for commercial development. The increases are due primarily to the significant increases experienced in the cost of transformers, metals and other construction materials . The following tables compare current fees with proposed fees for residential and commercial development: ELECTRIC DEVELOPMENT FEES & CHARGES RESIDENTIAL Category Charge 2007 2008 % diff. Per square foot $0.04215 $0.04731 12% Per lineal front fool $7 .90 $9 .53 21 % 150A Single t7 Fa $ 19078 $ 1 , 177 9% Electric CD Capacity 200A Single Fee as Fa $ 1 , 806 $ 19991 10% 150A Multi Fa $719 $785 9% 200A Multi Fa $ 19267 $ 19399 10% 1 / $585 $625 7% CnLn 0 4/ $756 $787 4% Building 350 kC $732 $873 19% Site Charges 1 /0 mobil $458 $490 7% 4/0 mobil $5931 $623 5% October 16 , 2007 -6- Item No . 22 ELECTRIC DEVELOPMENT FEES & CHARGES COMMERCIAL Category Charge 2007 2008 % diff. Per square foot $0.04215 $0.04731 12°/ Per lineal front fool $29 . 83 $35 . 52 19°/ 208V 1 -Ph $946 $ 19146 21 °/ Electric 240V 1 -P $ 19091 $ 1 ,323 21 % Capacity Service Fee Entrance 208V 3 -Ph $ 1 ,638 $ 1 ,985 21 °/ (per 100 amps) 240V 3 -Ph $ 1 ,890 $29291 21 °/ 480V 3 -Ph $3 ,779 $49581 21 % Primary Circuit ( I -phase) $7 .20 $8 .78 22°/ Building Primary Circuit (3 -phase $ 13 . 10 $ 17.72 35 % Site Transformer Installation - 1 Charges phase $ 1 , 119 $ 19148 3 % Transformer Installation -3 phase $2,097 $29132 2% The impact to a typical single family residence (8 ,600 sq. ft. lot, 150 amp service) is an increase of $298 from $2 , 578 to $2 , 876, or 12% . SUMMARY OF PIF CHANGES AND COMPARISONS The following table shows the overall impact of the proposed Plant Investment Fees and Electric Development Charges on a typical single family residence. Impact on Single Family Current Proposed Chan e Water* $ 35892 $ 39826 -2% $ 66 Raw Water* * $ 5 ,203 $ 5 ,203 0% $ 0 Wastewater $ 25223 1 $ 31194 44% $ 971 Stormwater* $ 520 $ 743 43 % P$ 2 Electric * $ 2 ,578 $ 2, 876 12% 98 Total $ 14,416 1 $ 15,842 10 % $ 1 ,426 *Typical, based on lot size * *No increase for Raw Water Comparison to other utilities is difficult due to differences in customer use patterns, the unique capital needs of each utility, and different policy direction from governing bodies . The question of how Fort Collins compares to other area utilities often arises. The graph below compares water, wastewater, and stormwater PIFs and raw water requirements for a single family residence for some neighboring communities . October 16 , 2007 -7 - Item No . 22 Wastewater, Stormwater and Water Plant Investment Fees ( Including Cash in Lieu of Raw Water Fees ) 30000 25000 20000 15000 10000 5000 0 Fort Collins Fort Collins - 2007 Proposed Boulder Greeley Longmont Loveland Windsor 2008 C Raw Water Fees 5203 .09421 5203 .09421 0 7505 . 7 7957 .33 6487 .8567 15000 a Water PIF 3892 3826 9710 9500 7856 5340 6725 Storm Drainage PIF 516 . 741047 743 . 972452 2002 227 650 489 632 [] Wastewater PIF 2223 3194 1855 3900 3000 2360 3700 ❑ Wastewater PIF E Storm Drainage PIF 0 Water PIF ❑ Raw Water Fees MONTHLY RATES Wastewater The Ordinance increases the City ' s wastewater rates by 12% . The increase is applied "across the board" to all customers . With the proposed rate, a typical single family residential customer' s monthly bill will increase from $ 19 . 70 to $22 . 07 or $2 . 37 per month in 2008 . This is based on a system average of 5 ,200 gallons per month winter quarter average (WQA) water use . The wastewater rate increase is needed to generate sufficient revenue to fund the wastewater operations and meet the increase in long-term debt service obligations for a major capital project to replace the trickling filter, make odor control improvements and prepare for future regulation-based improvements at the Mulberry facility. The Mulberry plant was built in 1946 with upgrades in 1958 and 1972 . In the past two years, the treatment performance of the plant's 60-year old trickling filter (which provides first-stage secondary treatment for the plant flow) has degraded several times requiring it to be taken off-line, cleaned and restarted. Failure of the trickling filter creates a significant increase in odors until it has been cleaned. Even after restarting, the trickling filter's effectiveness has not recovered to its past efficiency. In late 2006, a study by MWH Consulting Engineers was commissioned to determine the best solution for the long-term use of the Mulberry plant. Upgrading the plant's secondary treatment processes by removing the trickling filter and its associated facilities and installing a new aeration basin and associated facilities is the most cost-effective solution. Because the trickling filter is already recommended for replacement, odor control improvements will also take place. October 16 , 2007 -8 - Item No . 22 Upgrading the facility will also allow the Utilities to prepare for future regulation-based improvements . The improvements, including design and construction, are projected to cost $31 . 8 million and will be funded by debt. An 11 % increase is proposed for 2009, 10% for 2010, and 9% for 2011 to maintain reserve requirements, meet debt service, and continue operations and maintenance functions . As shown in the graph below, the City' s wastewater rates remain comparable to those of other local utilities : Wastewater Rate Comparisons - WQA5, 200 gallons Data July25 , 2007 MR $30 1W $25 $24.65 $22.07 $20 $ 17 . 67 $ 18. 38 $ 18 . 94 $ 19 . 70 $ 19 . 70 $20 . 00 L L O 4� E o $ 15 o $ 10. 14 E U $ 10 a� $5 L m > Denver Longmont Greeley Boulder Ft . Collins Loveland NAndsor Ft .C- Co.Sprs 2007 Proposed 2008 October 16 , 2007 -9 - Item No . 22 Electric The Utilities are proposing an electric rate increase averaging 2 . 3 % in 2008 and 2 . 7% in 2009 . The rate increase is wholly due to the increases in purchase power costs from Platte River Power Authority, the City' s wholesale energy supplier. On September 27 , 2007 , Platte River' s Board adopted a 3 % wholesale rate increase for 2008 and projects a rate increase of about 3 . 5 % in 2009 . Platte River' s increases are due to several factors : • Increased coal and rail costs at Rawhide and Craig power plants • Increased purchased power costs from WAPA (Western Area Power Administration) • Mercury mitigation costs • Expanded energy efficiency programs ( I % of revenues per PR' s 2007 Integrated Resource Plan) • Capital expenditure increases (new projects & increased material costs for existing projects) • Reduction in surplus sales revenues The proposed 2 . 3 % increase in 2008 will vary slightly by rate class . Residential rates will increase 2 . 0%-2 .2%, commercial rates will increase 2 .2%-2 . 3 %, and industrial rates will increase approximately 2 . 6%. For a typical residential customer using 700 kilowatt-hours per month, the monthly bill will increase 97 cents per month from $48 . 43 to$49 .40 . The following chart compares average monthly residential electric rates with other front range utilities : Electric Rate Comparison - 700 kWh per Month $80 1W $ 70 $65.88 : $60 $54.43 $56 . 70 $56.95 $47.41 $48 .43 $49 .40 oc $ 50 $42.82 L o ~ $40 -- W L E E $ 30 N $20 2 v $ 10 W > $- Q Lorgmit Loveland R. Col ins 2007 R.CProposed Xcel - Nd nter Xcel - SJmrer Co. ors P.V.REA 2008 8/ 1/ 2007 October 16 , 2007 -10- Item No . 22 Other In addition, the electric rate Ordinance includes a housekeeping change to the Power Factor Adjustment clause of the commercial and industrial rate classes to reflect the changes in technology. Prior to the capabilities of modern metering equipment, special recording equipment was periodically installed on services to measure power factor. Meters now collect the data necessary to make these calculations each month so periodic testing is no longer required. Monthly Rate Summary The following table summarizes the impact of the proposed rate increases on a typical single family residential customer' s monthly utility bill. In total, a "typical" customer' s bill will increase $3 . 34 per month. Typical Residential Customer — Monthly Utility Bill Current Proposed $ % 2007 2008 Increase Increase Electric 700 kWh per month $ 48 .43 $ 49.40 $0. 97 2% Wastewater 5 ,200 gallons/month winter quarter use $ 19.70 $ 22.07 $2 .37 12% Stormwater 8,600 s .ft. lot, light runoff $ 14.26 $ 14.26 $0.00 0% Water January 5,000 gallons $ 22 .56 $ 22 . 56 $0.00 0% July 21 ,000 gallon $ 60.90 $ 60. 90 $0.00 0% Total January Monthly Utility Bill $ 104.95 1 $108.29 1 $3.34 3 % Total June Monthly Utility Bill $ 143.29 $146.63 $3.34 2 % October 16 , 2007 -11 - Item No . 22 The following charts compare water, wastewater, stormwater and electric utility costs for eight front range cities . They include the recommended 2008 increases for wastewater and electric for Fort Collins . Projected rate adjustments for the other cities are unknown at this time. Residential Utilities 2007 Rate Comparison January Water Use - 5 , 000 Gallons $ 140 $ 120 $ 100 $80 $60 $40 $20 $ Boulder Co.Sprs Denver Greeley Windsor (Xcel) (812007) (Xcel) Ft. Collins '07 Ft. Collins '08 (Xcel) Longmont Loveland (PVREA) ■ Stormwater $6.75 $6.00 $7.40 $14.26 $14.26 $4.30 $7.13 $10.39 $3.89 O Wastewater $18.94 $24.65 $10.14 $19.70 $22.07 $18.38 $17.67 $19.70 $20.00 ■ Water $17.95 $16.54 $12.47 $22.56 $22.56 $18.70 $14.95 $13.75 $28.94 ■ Electric $54.43 $56.95 $54.43 $48.43 $49.40 $54.43 $42.82 $47.41 $65.88 Residential Utilities 2007 Rate Comparison July Water Use 21 ,000 Gallons $180 $160 $140 $120 $100 $80 $60 $40 $20 Boulder Co .Sprs Denver Ft. Collins Ft. Collins Greeley Vundsor (Xcel) (8/2007) (Xcel) 107 108 (Xcel) Longmont Loveland (PVREA) EStomrvteter 6.75 6 7.396 14260176 14260176 4.3 7.13 1D.39 3.892 ❑Wastew"er 18.94 24.65073119 1D.14 19.69904 22.07 1B.384 17.67 19.702 20 EVVater 52.7234 76.51B2371 57.19 60.90442 60.90442 54.38 60.11 39.35 80.58597554 Electric 56.705 56.95U%7 56.7015 48.43 49.4 56.70t 42.822 47.407 65.875 CUSTOMER SERVICE FEES AND CHARGES October 16 , 2007 -12- Item No . 22 The Utilities is proposing increasing the turn-off notice fee from $7 . 00 to $ 10 . 00 and the return item fee (returned checks, electronic transfers , credit card payments) from $ 15 to $25 . The increases are necessary to offset the associated costs and align with current business practices . WATER BOARD AND ELECTRIC BOARD RECOMMENDATIONS The Water Board reviewed the 2008-2009 water utilities ' budgets, water, sewer and stormwater plant investment fee changes, and monthly wastewater rate increases at the August 23 , 2007 Board meeting. The Board voted 8 to 1 approving the proposed budget and fee changes with an amended motion encouraging City Council to increase the appropriation for water conservation and demand management. The Electric Board reviewed the 2008-2009 Light and Power budget and the proposed increases to the electric rates and development fees and charges at its meeting on August 15 , 2007 . The Board unanimously approved a motion supporting the proposed budget and fee changes . ATTACHMENTS 1 . Water Board Minutes — excerpt from August 2007 meeting relating to budget, rates and PIFs . 2 . Electric Board Minutes — excerpt from August 2007 meeting relating to budget, rates, and electric fees . for Citypurposes necessary to provide for payment during the aforementioned budget year of all properly authorized expenditures to be incurred by the City. 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 Charter of the City of Fort Collins. Introduced, considered favorably on first reading, and ordered published this 16th day of October,A.D. 2007,and to be presented for final passage on the 20th day of November,A.D.2007. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 20th day of November, A.D. 2007. Mayor ATTEST: City Clerk -6-