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Home My WebLink About153 - 11/19/2024 - ADOPTING THE 2025 BUDGET AND APPROPRIATING THE FORT COLLINS SHARE OF THE 2025 FISCAL YEAR OPERATINGORDINANCE NO. 153, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE 2025 BUDGET AND APPROPRIATING THE FORT COLLINS SHARE OF THE 2025 FISCAL YEAR OPERATING AND CAPITAL IMPROVEMENT FUNDS FOR THE NORTHERN COLORADO REGIONAL AIRPORT A.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 Municip al Airport, now known as the Northern Colorado Regional Airport (the "Airport"). B.The Airport is operated as a joint venture between the Cities, with each city retaining 50% ownership interest, sharing equally in policy-making and management, and each assuming responsibility for 50% of the Airport's capital and operating costs. C.Pursuant to the Amended and Restated Intergovernmental Agreement for the Joint Operation of the Airport dated January 22, 2015, and the First Amendment to the Amended and Restated Intergovernmental Agreement for the Joint Operation of the Airport dated June 7, 2016, (collectively, the "IGA"), the Airport Manager is responsible for preparing the Airport's annual operating budget and submitting it to the Cities for their approval. D.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. E.The Interim Airport Manager has submitted for City Council consideration a 2025 Airport budget totaling $11,384,095 of which the City's 50% share is $5,692,047 ($1,063,064 for operations and $4,628,983 for capital). F.The City Council is in the process of considering the City's 2025 budget and Ordinance No. 163, 2024, which appropriated $218,669 in City funds to be transferred to the Airport operating fund in payment of the City's 50% share of rent due under the approved lease of a portion of the Airport property operation of the Northern Colorado Regional Law Enforcement Training Center, which amount is included in the Land Lease revenues set forth in the 2025 Airport Budget. G.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"). H.Funding for the Airport's 2025 operating and capital improvement budgets has been identified as follows: -1· FAA Grants State Grants Airport Revenues Airport Reserves Total $8,234,569 $216,699 $2,080,816 $1,000,000 $9,257,967 I.The City's 50% share of the 2025 Airport operating costs, to be held in the Airport Fund, is $1,063,064. J.The City's 50% share of the 2025 Airport capital improvement costs, to be held in the Airport fund, is $4,628,983. K.The Airport Reserves item is an appropriation for use by the Northern Colorado Regional Airport Commission for discretionary Airport projects. L.City Finance staff has reviewed the financial statements for the Airport and determined that the requested appropriation of Airport Reserves in the 2025 Airport Budget meets the required limits set forth in the IGA. M.This appropriation benefits the public health, safety and wetfare of the residents of Fort Collins and serves the public purpose of enhancing transportation and economic welfare of the City and its residents. N.This appropriation will not require additional funding from the Cities and is consistent with the IGA. In light of the foregoing recitals, which the Council hereby makes and adopts as determinations and findings, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, as follows: Section 1. The City Council hereby approves and adopts the 2025 Airport operating and capital budget totaling $11,384,095 ($2,126,128 for operations and $9,257,967 for capital), a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference. Section 2. The City Council hereby appropriates in the Airport Fund $1,063,064 to be expended to defray the City's 50% share of the 2025 operating costs of the Airport. Section 3. The City Council hereby appropriates in the Airport Fund $4,628,983 to be expended to defray the City's 50% share of the 2025 capital costs of the Airport. -2- Introduced, considered favorably on first reading on November 4, 2024, and approved on second reading for final passage on November 19, 2024. 011,0 �dt Sr. Deputy City Clerk Effective Date: November 29, 2024 Approving Attorney: Jenny Lopez Filkins -3- EXHIBIT A TO ORDINANCE NO. 153, 2024 2025 Proposed Airport Budget � NORTHERN COLOR.ADO • R (_,I( 1',,\ 1 IU'( l, 1 c < )\I\' -..-,1( )'. 2025 Proposed Percent 2021 Actual 2022 Actual 2023 Actual 2024 Budget Budget Justification Change OPERATING REVENUES Hangar Rental 247,095 240,022 207,083 215,000 159,000 Reduced for decommissioning of A & B hangars -26.0% FBO Rent 92,713 94,172 94,172 105,051 110,809 CPI Increase partially affected 2024 5.5% Gas and Oil Commissions 265,576 405,588 318,433 300,000 315,000 This is driven by fuel price and airport activty levels 5.0% State & County Aircraft Fuel Tax 127,754 193,644 192,614 150,000 157,500 This is driven by fuel price and airport activty levels 5.0% Adjusted for CPI lease escalations Land Lease 738,561 920,494 1,040,780 1,099,000 1,113,000 Assumes no new leases 1.3% Terminal Lease and Landing Fees 7,160 8,024 11,546 75,300 193,300 Tied to airline/ bus activity 156.7% Parking 330 0 0 0 0 Tied to airline/ bus activity Miscellaneous 205,476 132,708 248,373 52,600 65,230 Tied to airline/ bus activity 24.0% TOTAL OPERATING REVENUES 1,684,665 1,994,652 2,113,001 1,996,951 2,113,839 Total 5.9% OPERATING EXPENSES FTE 6 8 8 9 9 0.0% Personal Services 668,421 TT6,765 753,881 1,147,418 1,189,915 Increase attributed to CPI 3.7% Supplies 74,945 99,694 107,263 123,550 129,729 Inflation adjustments 5.0% Purchased Services 435,275 620,144 708,333 1,759,928 806,484 Removed Air Service Grant, Inflation adjustments -54.2% TOTAL OPERATING EXPENSES 1,178,641 1,496,603 1,569,477 3,030,896 2,126,128 Total -29.9% OPERATING GAIN (LOSS) 506,023 498,049 543,524 (1,033,945) (12,289) The proposed budget is balanced -98.8% NONOPERATING REVENUES{EXPENSES} City Conributions 0 0 2,000,000 0 0 Passenger Facility Charge 0 0 0 0 0 No change Interest Income (61,294) (112,373) 90,148 49,000 30,000 Finance controlled investments -38.8% Expedetures include encumbering funds for Runway Capital Expenditures (3,623,375) (1,082,549) (5,449,371) (21,958,000) (9,287,967) 15-33 Widening to be encurred in 2026 -57.7% TOTAL NONOPERATING REVENUES(EXPENSES) (3,684,669) (1,194,922) (3,359,223) (21,909,000) (9,257,967) -57.7% NET INCOME(LOSS)BEFORE CAPITAL CONTRIBUTIONS (3,178,646) (696,873) (2,815,699) (22,942,945) (9,270,256) -59.6% Capital Contributions 4,274,041 1,399,819 2,665,910 16,272,500 8,451,268 Runway Widening Construction Grant -48.1% This change is driven by the local share for the captial CHANGE IN NET POSITION 1,095,395 702,946 (149,789) (6,670,445) (818,988) projects, grant matches, and local only projects. -87.7% Net Position available for use 4,059,249 5,797,454 8,430,589 1,760,144 941,156 IGA stipulates this amount to be the lesser of 50% of unassigned balances of Airport Operating reserves and Capital Fund or less than 25% of the Airport's Reserve �eroeriation 1,000,000 2,000,000 2,000,000 2,000,000 1,000,000 annual budget -50.0%