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Home My WebLink About119 - 11/15/2016 - ADOPTING THE 2017 BUDGET AND APPROPRIATING THE FORT COLLINS SHARE OF THE 2017 FISCAL YEAR OPERATINGJ 1 ORDINANCE NO. 119, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE 2017 BUDGET AND APPROPRIATING THE FORT COLLINS SHARE OF THE 2017 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 (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 2017 Airport operating budget totaling $1,099,030, of which the City's share is $549,515; and WHEREAS, the City Council is in the process of considering the City's 2017 budget and Ordinance No 126, 2016, which appropriates $260,000 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 WHEREAS, it is the desire of the City Council to appropriate the City's share of the necessary funds for the Airport's operating costs, totaling $549,515 for the fiscal year beginning January 1, 2017, and ending December 31, 2017; and WHEREAS, the Airport Manager also recommends capital expenditures totaling 1,493,302 for Airport improvement projects in 2017 which include runway and taxiway rehabilitation and preservation, taxiway sign safety modifications, an Airport Master plan update and acquisition of snow removal equipment; and WHEREAS, funding for the 2017 capital improvements has been identified as follows: FAA Grant 1,000,000 State Grant 55,556 Airport Revenues 102,746 Airport Reserves 335,000 Total 1,493,302; and WHEREAS, the City's 50% share of the 2017 capital improvement costs, held in the Airport Fund, is $746,651. WHEREAS, the Airport Reserves item is an appropriation for use by the Northern Colorado Regional Airport Commission for discretionary Airport projects; and WHEREAS, this appropriation will not require additional funding from the Cities and is consistent with the approved amendment of the Intergovernmental Agreement with the City of Loveland signed in June of 2016 for the joint operation of the Airport. 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 2017 Airport operating and capital budget totaling $2,592,332 ($1,099,030 for operations and $1,493,302 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 FIVE HUNDRED FORTY NINE THOUSAND FIVE HUNDRED FIFTEEN DOLLARS ($549,515) to be expended to defray the City's share of the 2017 operating costs of the Fort Collins- Loveland Municipal Airport. Section 4. That the City Council hereby appropriates in the Airport Fund SEVEN HUNDRED FORTY SIX THOUSAND SIX HUNDRED FIFTY ONE DOLLARS ($746,651) to be used for the City's share of the 201E capital improvements at the Fort Collins-Loveland Municipal Airport. 2- Introduced, considered favorably on first reading, and ordered published this 1st day of November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D. 2016. y of Fo,P. 4. S' O Mayor0 ATTEST: t4L y PRADO•• VV " V v City Clerk Passed and adopted on final reading on the 15th day of November, A.D. 2016. Mayor ATTEST: OF FORT Cp G 4 SEAL City Clerk/ ORA° 3- EXHIBIT A Airport Fund The Airport Fund receives revenue for operating and capital expenses primarily from revenues generated by airport operations. Additional revenues are provided by the airport partners, the Cities.of Loveland and Fort Collins, and, for approved projects, from the FAA and Colorado Department of Transportation. Use of money in the Fund is restricted to the airport. The Fund is managed by the City Manager's Office. Details on the expenditures are in the Other Entities chapter. Airport Fund Summary 16 Revised 17 Budget 16 Adopted 16 15 Actual Budget as of July '17 Budget Budget n Adopted % REVENUE 1 Change BEGINNING FUND BALANCE 2,393,321 $ 145,958 $1,999,752 $ 2,043,905 Airport Revenue CONTRIBUTION-LOVELAND 177,500 177,500 177,500 260,000 46.5% CONTRIBUTION-FORT COLLINS 177,500 177,500 177,500 260,000 46.5% INTEREST 21,135 6,185 6,185 15,000 142.5% OTHER 19,766 8,208 8,208 23,200 182.7% AIRPORT REVENUE 599,326 624,978 624,978 634,530 1.5% CONTRIBUTION-FAA 805,232 150,000 150,000 1,000,000 566.7% CONTRIBUTION-STATE OF CO 57,975 8,340 8,340 55,556 566.1% TRANSFERS 50,000 Total Revenue 1,858,434 $ 1,152,711 $1,202,711 $ 2,248,286 95.0•% Total Resources 4,251,755 $ 1,298,669 $3,202,463 $ 4,292,191 EXPENSES BY FUND Other Entity AIRPORT 2,252,003 $ 1,098,558 $1,158,558 $ 2,592,332 136.0% EXPENSES BY CATEGORY PERSON NELSRVICES 391,474 481,216 481,216 577,165 19.9% SUPPLIES 38,162 53,200 53,200 54,115 1.7% PURCHASED SERVICES 324,265 397,474 457,474 467,750 17.7% DEPRECIATION 1,498,102 CAPITAL 166,668 166,668 1,493,302 796.0% Total Expense 2,252,003 $ 1,098,558 $1,158,558 $ 2,592,332 136.0% ENDING FUND BALANCE 1,999,752 $ 200,111 $2,043,905 $ 1,699,859 I City of Loveland,Colorado 2017 Budget D-50