HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/03/2009 - SECOND READING OF ORDINANCE NO.112, 2009, BEING THORDINANCE NO. 112, 2009
OF THE COUNCIL OF THE CITY OF FORT COLLINS
BEING THE ANNUAL APPROPRIATION ORDINANCE
RELATING TO THE ANNUAL APPROPRIATIONS
FOR THE FISCAL YEAR 2010; ADOPTING THE BUDGET
FOR THE FISCAL YEARS BEGINNING JANUARY 1, 2010,
AND ENDING DECEMBER 31, 2011; AND FIXING THE MILL
LEVY FOR FISCAL YEAR 2010
WHEREAS, the City Manager has, prior to the first Monday in September, 2009, 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 saidthat proposed budget estimate, the City
Council set September 15 and October 6, 2009, as the dates for the public hearings thereon and
causedpublished notice of suchthe 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 City Council adopt the budget for the ensuing term by ordinance
and appropriate such sums of money as the City 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 levyinclude the levy in mills 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
revenues to pay into the General Fund in lieu of taxes on account of the City-owned utilities such
amount as may be established by Councilto fund the business operations of the utilities and satisfy
certain other obligations specified therein.
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 2010-2011
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 2010-2011 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 2009.
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, 2010, and December 31, 2011, as Adopted
by the City Council on November 3, 2009.”
Section 2. Appropriations. That there is hereby appropriated out of the revenues of the
City of Fort Collins, for the fiscal year beginning January 1, 2010, and ending December 31, 2010,
the sum of FIVE HUNDRED EIGHT MILLION SIX HUNDRED THIRTY EIGHT THOUSAND
NINE HUNDRED THIRTY-ONE DOLLARS ($508,638,931) FOUR HUNDRED NINETY-
SEVEN MILLION EIGHT HUNDRED SEVENTY-NINE THOUSAND FOUR HUNDRED
SEVENTY-SIX DOLLARS ($497,879,476) 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 $102,080,629
ENTERPRISE FUNDS
Golf $2,893,193
Light & Power
Operating Total .............................................................................. 101,542,097
Capital:
Electric Substations 4,404,000
Southwest Annexation Electric System 1,300,000
Advanced Metering Infrastructure (AMI) 8,739,500
Capital Total………………………………………...14,443,5005,704,000
Total Light & Power ...................................…………………………….............. ……………………… .115,985,597107,246,097
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Storm Drainage
Operating Total .................................................................... 11,317,487
Capital:
Old Town Basin Improvements 500,000
Canal Importation Basin Improvements 2,840,000
Drainage & Detention System Replacement 370,000
Service Center Improvements 50,935
Stormwater Developer Repays 95,000
Stormwater Master Plan 400,000
Vacuum Truck for Waste Disposal 150,000
Capital Total .............................................................................. 4,405,935
Total Storm Drainage ................................................................................................ 15,723,422
Wastewater
Operating Total ............................................................................... 18,828,306
Capital:
Collection System Replacement 1,540,000
Collection System Study 100,000
DWRF Improvements 265,000
Flow Monitoring Stations 100,000
MWRF Improvements 150,000
Service Center Improvements 297,374
Sludge Disposal Improvements 150,000
Water Reclamation Replacement Program 1,685,000
Capital Total .............................................................................. 4,287,374
Total Wastewater ....................................................................................................... 23,115,680
Water
Operating Total ................................................................................ 27,965,806
Capital:
Advanced Metering Infrastructure (AMI) 2,000,000
Cathodic Protection 170,000
Distribution System Replacement 2,525,000
Halligan Reservoir Enlargement 190,000
Service Center Improvements 105,938
Water Production Replacement Program 1,795,000
Water Supply Development 100,000
Capital Total .............................................................. 6,885,9384,885,938
Total Water ....................................................……………………………34,.. ………………………………… 851,74432,851,744
TOTAL ENTERPRISE FUNDS $ 192,569,636$181,830,136
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INTERNAL SERVICE FUNDS
Benefits $20,321,405
Data & Communications 8,896,746
Equipment 9,420,341
Self Insurance 3,292,964
Utility Customer Service & Administration 16,649,37816,629,423
TOTAL INTERNAL SERVICE FUNDS $ 58,580,83458,560,879
SPECIAL REVENUE FUNDS
Capital Improvement Expansion Fund $ 904,354
Capital Leasing Corporation Fund 5,344,893
Cemeteries 719,570
Cultural Services 3,765,285
Debt Service 358,365
General Employees' Retirement 2,760,423
Natural Areas Fund 8,571,164
Perpetual Care 55,435
Recreation 6,885,023
Sales and Use Tax 73,624,048
Street Oversizing 4,558,731
Timberline/Prospect SID 122,970
Transit Services 11,309,638
Transportation Services 27,683,360
TOTAL SPECIAL REVENUE & DEBT SERVICE FUNDS $146,663,259
CAPITAL IMPROVEMENT FUNDS
General City Capital
Bryan Bridge Replacement $ 137,940
City Bridge Program 1,800,000
Police Facility 750,000
Railroad Crossing Replacement 100,000
TOTAL GENERAL CITY CAPITAL $ 2,787,940
1/4 Cent - Building on Basics
Administration $ 21,952
Bicycle Program Plan Implementation 125,000
Lincoln Center Renovation 3,270,441
Museum/Discovery Science Center 273,213
Pedestrian Plan and ADA Improvements 300,000
TOTAL 1/4 CENT - BUILDING ON BASICS $ 3,990,606
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Conservation Trust Fund
Administration $ 235,604
Fossil Creek Trail 50,000
Open Space Acquisition 10,000
Trail Acquisition, Development & Repair 350,000
Transfer to General Fund-Parks Maintenance 730,146
Tri-City Trails 30,000
TOTAL CONSERVATION TRUST FUND $1,405,750
Neighborhood Parkland Fund
Administration $ 395,277
New Park Site Development 150,000
Park Site Equipment 15,000
TOTAL NEIGHBORHOOD PARKLAND FUND $ 560,277
TOTAL CITY FUNDS $508,638,931497,879,476
Section 3. Mill Levy
a. That the 2010 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, 2009, shall be 9.797 mills, which levy represents the amount of taxes
for City purposes 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.
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Introduced, considered favorably on first reading, and ordered published this 20th day of
October, A.D. 2009, and to be presented for final passage on the 3rd day of November, A.D. 2009.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 3rd day of November, A.D. 2009.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
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DATE: November 3, 2009
STAFF: Darin Atteberry
Mike Freeman
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 29
SUBJECT
Second Reading of Ordinance No.112, 2009, Being the Annual Appropriation Ordinance Relating to the Annual
Appropriations for the Fiscal Year 2010; Adopting the Budget for the Fiscal Years Beginning January 1, 2010, and
Ending December 31, 2011; and Fixing the Mill Levy for Fiscal Year 2010.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
FINANCIAL IMPACTS
This Ordinance represents the annual appropriation for fiscal year 2010, and adopts the total City budget for fiscal year
2010 at $508.6 million497.9 million and for fiscal year 2011 at $507.3 million497.8 million. This Ordinance also sets
the City mill levy at 9.797 mills, unchanged since 1991, for fiscal year 2010.
EXECUTIVE SUMMARY
The Annual Appropriation Ordinance is presented for Second Reading. This Ordinance sets the City Budget for the
two-year period of 2010–2011. The approved budget becomes the City’s Council financial plan for the next two fiscal
years.
BACKGROUND / DISCUSSION
For clarity, we are providing an amended red-line strike-out version of the First Reading Agenda Item Summary for
Council consideration of the Budget on Second Reading. Please note that the only changes are to add $75,000 for
Affordable Housing and remove $10,759,455 for AMI.
This biennial budget represents the work of many dedicated individuals who came together to participate in the budget
process. Since 2005, the City has used the Budgeting for Outcomes (BFO) process. BFO has a number of
advantages over traditional budgeting approaches; the BFO process helps the City meet several important goals,
including:
• Create clarity about the overall budget process for the community;
• Allocate revenues to the highest priorities and outcomes citizens want and need;
• Understand the choices for funding programs and services; and
• Emphasize staff accountability, efficiency, innovation and partnership.
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 2010-2011 Budget. The approval of the Appropriation
Ordinance on First Reading represents a major milestone in this process.
As the budget development process began in April 2009, City Council and staff met on several occasions to outline
goals and assumptions for developing the recommended budget. Council was actively engaged in the development
and approval of the seven Key Outcomes that have shaped this budget.
November 3, 2009 -2- ITEM 29
Economic Health
Fort Collins has a healthy, sustainable economy
reflecting the values of our unique community in a
changing world.
Environmental Health Fort Collins promotes, protects and enhances a healthy
and sustainable environment.
Safe Community Fort Collins provides a safe place to live, work, learn and
play.
Neighborhood Livability Fort Collins fosters and supports a variety of quality
neighborhoods.
Cultural and Recreational Opportunities Fort Collins encourages and provides diverse cultural
and recreational opportunities.
Transportation Fort Collins provides for safe and reliable multi-modal
travel to, from, and throughout the City.
High Performing Government Fort Collins exemplifies an efficient, innovative,
transparent, effective and collaborative city government.
Budget Highlights
The 2010-11 Final Budget is a financial and service plan linked to the seven key outcomes and results that matter most
to Fort Collins citizens. Some key highlights of the City Budget include:
1. The total budget for all City funds for 2010 is $508.6 million and $507.3 million497.9 million and $497.8 million
for 2009.
2. The budget includes no tax increase.
3. Sales and Use tax revenue accounts for approximately 55 percent of the General Fund revenue collected
annually. This tax revenue is projected to increase by 1% in 2010 with a slightly larger increase in 2011 of
2%.
4. The projected Utility rate increases for 2010 to fund operations and maintain minimum reserves are
Wastewater a 10% increase; Electric a 9.5% 7.4% increase; Water a 3% increase; and, Stormwater no
increase.
5. The budget will reduce classified, unclassified, and contractual City staff by a total of 10.20 full time equivalent
positions. The estimated reduction in hourly staff is 12.45 full time equivalent positions.
November 3, 2009 -3- ITEM 29
Budget Assumptions
Total Budget
(In Millions)
2009 2010 % Change 2011 % Change
Operating $460.3 $429.9 -6.6% $442.3 2.9%
Debt $27.4 $21.0 -23.4% $20.3 -3.3%
Capital $84.8 $57.7 -32.0% $44.7 -22.5%
Total City Appropriations $572.5 $508.6 -11.2% $507.3 -0.3%
Less Internal Service Funds -$62.6 -$58.1 -7.2% -$58.9 1.4%
Less Transfers to Other Funds -$114.6 -$99.4 -13.3% -$99.2 -0.2%
Net City Budget $395.3 $351.1 -11.2% $349.2 -0.5%
Total Budget
(in millions)
2009 2010 % Change 2011 % Change
Operating $460.7 $430.9 -6.5% $442.7 2.7%
Debt $27.5 $21.3 -22.5% $21.1 -0.9%
Capital $84.8 $45.7 -46.1% $34.0 -25.6%
Total City Appropriations $573.0 $497.9 -13.1% $497.8 0.0%
Less Internal Service Funds -$62.6 -$58.1 -7.2% -$58.9 1.4%
Less Transfers to Other Funds -$114.6 -$97.7 -14.7% -$99.1 1.4%
Net City Budget $395.8 $342.1 -13.6% $339.8 -0.7%
November 3, 2009 -4- ITEM 29
Some of the key assumptions used in developing the Final Budget include:
1. Limited revenue growth for 2010 and 2011
Despite the collective signs of impending recovery, the turbulent economic conditions of 2009 will likely persist into
2010. Most experts agree that the recovery will occur gradually with sectors of the economy enduring a lasting
reduction in output and employment. The 2010-2011 Budget, therefore, employs conservative assumptions of growth
that reflect a cautiously-optimistic outlook for the next two years.
2. Use of reserves
Approximately $2.5 million in General Fund reserves was used to balance the 2010 budget and $1.0 million in the 2011
Budget. Reserves are used primarily for one-time projects.
At its October 13 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 approximately $200,000
in additional 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).
3. Public Safety needs, Economic Health and Environmental Health issues are funding priorities
This budget focuses on the City Council and community priorities. In spite of limited revenue, this budget maintains
funding levels for Police and Fire Services. It also maintains funding and provides additional staff resources (through
the partnership between Natural Areas and Utilities) for key environmental programs such as the Climate Action Plan
implementation, ClimateWise, and Utilities of the 21st Century. Economic Health programs are also maintained
including support for economic clusters, support of the Rocky Mountain Innovation Initiative, and the next phase of the
“one-stop shop” for Community Development and Neighborhood Services.
4. Employee salary adjustments
No merit-based pay increases are budgeted for City employees in 2010.
Adjustments to the City Manager’s Recommended Budget
City Council held its last budget work session on October 13, 2009. At the work session, Council provided input and
direction on budget items that fell into three categories:
1. Items now included in the budget
2. An item included in the budget needing further discussion
3. Items discussed but are not in the budget
November 3, 2009 -5- ITEM 29
*The quiet zone rail study offer was originally funded in the City Manager’s recommended budget. Staff is
recommending that those funds be used instead to reinstate the Code Enforcement positions and restore cuts
from the air quality program. Further, between first and second reading, staff identified savings that resulted
in an increase of only $8,000 for the Air Quality Program for 2010.
**The liquid de-icer offer is fully funded. The budget includes the incremental $25,000 that will be combined
with $80,000 already budgeted for ice control materials for a total of $105,000.
November 3, 2009 -6- ITEM 29
Staff is seeking confirmation that City Council wishes to fund these items.
Throughout the budget deliberation process, there have been concerns expressed about the timing of funding the
Advanced Metering Infrastructure (AMI) project, given the rate impact of 2% needed to fund it. While there have been
concerns expressed about the AMI program, there have also been discussions about how this effort is linked with the
Climate Action Plan and is a significant strategy for assisting in carbon reduction. Staff is prepared to discuss this
program in more detail during the City Council deliberation on the budget. Ultimately, staff is seeking direction on
whether or not City Council supports funding the AMI program in 2010.
Other Items Considered by City Council at its October 13, 2009 Work Session
Additionally, several Council members expressed a desire for further discussion about the following item
1. Historic Preservation Planner Position
In order to minimize the impact of reducing one Historic Preservation planner, staff has identified the following methods
to help backfill the loss:
• Train existing staff planners on the more routine questions
• Devote .2fte of a planning tech to perform research and administrative functions
• Look at reducing the LPC meetings from 2 per month to 1 per month
Additionally, staff is concluding a Historic Preservation Process Improvement Study that is scheduled for the October
27, 2009 City Council Work Session. Some of the recommendations in this study include process improvements that
will produce efficiencies and assist in freeing up time.
2. Crossroads Safehouse
City Council provided direction to the City Manager to continue to seek funding alternatives for this critical community
service in lieu of including funds within the budget.
3. Affordable Housing Program
At an average subsidy of between $7,500 and $10,000 per unit, the loss of $200,000 in the City’s Affordable Housing
Fund means a loss of the ability to help build/rehab between 20 to 27 affordable housing units. Affordable Housing
Fund dollars also help leverage additional financial resources at ratios that range from 8:1 to 76:1, depending upon
the type of project. Please note that between first and second reading of the budget, the majority of the City Council
requested that an additional $75,000 be added to the offer. SEE TABLE ON PAGE 5.
4. Railroad Quiet Zone Study
The City Manager’s recommended budget included $100,000 to conduct a quiet zone study from Laurel Street to the
southernmost boundary of the City. This offer was subsequently not funded so that Code enforcement positions could
reinstated and funds reduced for the air quality program could be reinstated.
November 3, 2009 -7- ITEM 29
5. Advanced Metering Infrastructure (AMI)
Given City Council’s sensitivity to the rate increase for AMI and the viability of debt financing, staff recommends that
City Council not consider AMI as part of the budget ordinance and direct the City Manager to come back with a
proposal to formally consider debt financing for the AMI project. Staff expects that we can present a debt financing
proposal in December. At Council's direction, any proposal that staff considers will not be dependent on an additional
rate increase for AMI in 2010.
Conclusion
The 2010-2011 Final Budget is a sound financial plan to deliver the services we believe our citizens value most. Due
to limited resources, it does not, however, fully meet the demand for services that citizens need and expect. However,
the Budgeting for Outcomes 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 ordinance
on November 3, 2009. By Charter, the Budget must be adopted and appropriations for the 2010 fiscal year must be
approved by November 30.