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HomeMy WebLinkAbout163 - 11/19/2024 - BEING THE ANNUAL APPROPRIATION ORDINANCE RELATING TO THE ANNUAL APPROPRIATIONS FOR FISCAL YEAR 2025;ORDINANCE NO. 163, 2024 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE RELATING TO THE ANNUAL APPROPRIATIONS FOR FISCAL YEAR 2025; ADOPTING THE BUDGET FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2025, AND ENDING DECEMBER 31, 2026; AND FIXING THE MILL LEVY FOR PROPERTY TAXES PAYABLE IN 2025 A.City Charter Article V, Section 2 provides that the City Manager shall file with the City Clerk on or before the first Monday in September preceding each "budget term" the proposed budget for that ensuing budget term. B.City Charter Article V, Section 1 provides that the City Council is to set by ordinance the number of fiscal years that shall constitute the City's "budget term." C.The City Council finds and determines that the adoption of this Ordinance is necessary for the public's health, safety, and welfare and therefore wishes to approve the Proposed 2025-2026 Budget, as hereafter amended, and authorize the expenditures described in this Ordinance for the 2025 fiscal year. D.In 2010, the City's budget term was set in City Code Section 8-1 as being two fiscal years, so a biennial budget term. E.Under Code Section 8-1, the City's next biennial budget term is for fiscal years 2025 and 2026. F.The City Council finds and determines that the adoption of this Ordinance is necessary for the public's health, safety, and welfare and therefore wishes to approve the Proposed 2025-2026 Budget, as hereafter amended, and authorize the expenditures described in this Ordinance for the 2025 fiscal year. G.On August 30, 2024, the City Manager filed with the City Clerk a proposed budget for the City of Fort Collins for the fiscal year 2025-2026 (the "Proposed 2025-2025 Budget") as required in Article V, Section 2 of the City Charter and included with it an explanatory message, a complete financial plan for each City fund, appropriate financial statements for each type of fund showing comparative figures for the last completed fiscal year and the current fiscal year, and the City Manager's recommendation for the ensuing budget term. H.Article V, Section 3 of the City Charter requires that, within ten days of the date of the City Manager's filing of the Proposed 2025-2026 Budget with the City Clerk, the City Council shall set a time certain for a public hearing on the Proposed 2025-2026 Budget and cause a notice of the hearing to be published -1 - I.Both public hearings were held and conducted on those dates and persons were given the opportunity to appear before City Council and comment on any or all items and estimates in the Proposed 2025-2026 Budget. J.Article V, Section 4 of the City Charter requires that after the public hearing and before the last day of November of each fiscal year, the City Council shall adopt the budget for the ensuing budget term by ordinance and appropriate by ordinance on a fund basis and by individual project for capital projects and federal or state grant projects, such sums of money as it deems necessary to defray all expenditures of the City during the ensuing fiscal year, based upon the budget as approved by the City Council. K.The appropriations in this Ordinance also include appropriations as needed to transfer monies from the dedicated funds receiving the revenues to the funds from which those monies will be expended. L.The 2025-26 Budget and annual appropriation for 2025 include partial funding from General Fund Reserves considered by policy as minimum fund balance. These are reserve balances in addition to the State required TABOR reserves, which are also held within the General Fund. The Financial Management Policy establishing this reserve fund was put in place nearly two decades ago reflecting a liquidity goal when the City's budget was much smaller. Those policy reserves were not used during the Great Recession in the late 2000's and have only been growing over the years; not being used for service delivery to the community. Staff will present an update to the Policy for Council approval in December. M.Article V, Section 5 of the City Charter provides that the annual appropriation ordinance shall also fix the tax levy in mills upon each dollar of the assessed valuation of all taxable real 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, including interest and principal of general obligation bonds. 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. Budget. a.The City Council has reviewed the Proposed 2025-2026 Budget, a copy of which is on file with the office of the City Clerk and has determined that the amendments described in Exhibit "A" attached hereto and incorporated by reference should be made to it. b.The City Council on first reading of this Ordinance has also approved amendments to the Proposed 2025-2026 Budget as described in Exhibit "B" attached hereto and incorporated by reference. - 2 - c.The Proposed 2025-2026 Budget, as amended in Exhibit "A" and Exhibit "B", is hereby adopted in accordance with the provisions of Article V, Section 4 of the City Charter and incorporated herein by reference (the "2025-2026 Adopted Budget"). d.The 2025-2026 Adopted Budget shall be on file with and maintained in the office of the City Clerk and identified as "The Budget for the Cit y of Fort Collins for the Fiscal Years Beginning January 1, 2025 and Ending December 31, 2026, as Adopted by the City Council on November 19, 2024." Section 2. Appropriations. There is hereby appropriated out of the reserves and revenues of the City of Fort Collins, for the fiscal year beginning January 1, 2025, and ending December 31, 2025, the sum of EIGHT HUNDRED NINETY-FOUR MILLION SIX HUNDRED THREE THOUSAND DOLLARS ($894,603,000) 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 fiscal year, to be divided and appropriated for the following purposes, to wit: GENERAL FUND SPECIAL REVENUE FUNDS 2050 Tax Parks Rec Transit OCF Capital Expansion Fund Cemeteries Fund Cultural Services Fund Operating Total Capital Art in Public Places Total Cultural Services Fund General Employees' Retirement Fund Museum Fund Natural Areas Fund Parking Fund Perpetual Care Fund Recreation Fund Sales & Use Tax Fund Transit Services Fund Transportation CEF Fund Transportation Fund Capital Leasing Corp Fund TOTAL SPECIAL REVENUE & DEBT SERVICE FUNDS - 3 - 247,367,978 14,475,989 1,424,886 1,219,367 9,175,494 8,919,980 255,514 $9,175,494 6,539,500 1,261,651 19,411,253 3,572,184 64,481 11,090,166 11,028,001 38,133,851 2,531,916 45,681,568 6,263,317 $171,873,624 CAPITAL IMPROVEMENT FUNDS General City Capital Capital Buckhorn Bridge Replacement CCIP Arterial Intersection Imp CCIP Bicycle Infrastructure Im CCIP Bus Stop Im provements CCIP Nature in the City CCIP Pedestrian Sidewalk-ADA City Bridge Program Dry Creek Bridge Replacement East Community Park Harmony/Power Trail Grade Sep Northeast Community Park Railroad Crossing Replacement SE Community Center CCIP Total General City Capital Community Capital Improvement Afford Housing Capital Program Arterial Intersection lmprvmnt Bicycle Infrastructure lmprvmt Bus Stop Improvements Carnegie Bldg Renovation -4 - 1,250,000 1,300,000 1,300,000 100,000 750,000 2,400,000 2,800,000 1,250,000 885,403 673,371 162,483 128,125 15,201,000 $28,200,382 500,000 1,300,000 1,300,000 100,000 25,000 Linden St Renovation Nature in the City Pedestrian Sidewalk -ADA SE Comm Ctr w/ Pool Transfort Bus Replacements Total Community Capital Improvement Conservation Trust Fund Operating Total Capital Trail Acquisition/Development Total Conservation Trust Fund Neighborhood Parkland Fund Operating Total Capital New Park Site Development Total Neighborhood Parkland Fund TOTAL CAPITAL IMPROVEMENT FUNDS ENTERPRISE FUNDS Broadband Fund Operating Total Art in Public Places Total Broadband Fund Golf Fund Operating Total Total Golf Fund - 5 - 12,000 750,000 2,400,000 15,201,000 1,000,000 $22,588,000 669,792 2,799,999 $3,469,791 742,830 1,302,997 $2,045,827 $56,304,000 25,181,383 -53,000 25,128,383 5,933,483 $5,933,483 Light & Power Fund Operating Total Capital 2023 -GIWH Installations Art in Public Pl aces Back Lot to Front Lot -Parent CMMS-Maintenance Management Dist. System lmpr. & Replace. Distribution Automation-Parent Service Center -L&P Parent Streetlights -Parent Substation Cap Prj -Parent System Relocations -Parent Transformers -Parent Capital Total Total Light & Power Fund Stormwater Fund Operating Total Capital Art in Public Places -6 - 171,370,533 1,215,000 14,000 400,000 375,000 500,000 200,000 1,565,000 1,106,866 1,300,000 400,000 2,000,000 9,075,866 $180,446,399 16,598,891 24,000 Cured in Place Pipe Developer Repays Master Planning Stormwater Basin Improvements Stream Rehabilitation Program SW Land Acquisition Utility Service Center Phase 2 Capital Total Total Stormwater Fund Wastewater Fund Operating Total Capital Combined One Water Laboratory Art in Public Places DWRF Sidestream Phosphorus Removal Phase 2 -Design DWRF Preliminary Treatment Preliminary Design Collection Sys Replace Pgm Developer Repayments Operational Technology PARENT-Collect Small Projects PARENT-Palu Control Cap Repla PARENT-Serv Center lmprovemnts PARENT-Water Reel Replcmt Prgm -7 - 200,000 900,000 200,000 2,750,000 1,400,000 300,000 150,000 5,924,000 $22,522,891 23,470,523 2,250,000 58,400 1,000,000 2,000,000 1,750,000 200,000 390,000 1,750,000 90,000 150,000 1,000,000 Capital Total Total Wastewater Fund Water Fund Operating Total Capital Water -College Avenue Water Main replacement Art in Public Places Combined One Water Labora tory Distribution Sys Replac Galvanized Service Repl Operational Technology PARENT-Cathodic Protection PARENT-Distro Small Projects PAREN T-Service Cntr lmprovm't PARENT-Water Qual Cap Replace PARENT-Water Supply Developm't PARENT-Watershed Protection PARENT-Wtr Meter Replacement Capital Total Total Water Fund TOTAL ENTERPRISE FUNDS -8 - 10,638,400 $34,108,923 31,920,064 1,000,000 53,000 2,250,000 2,500,000 1,000,000 200,000 700,000 2,150,000 150,000 100,000 500,000 200,000 350,000 11,153,000 $43,073,064 Introduced, considered favorably on first reading on November 4, 2024, and approved on second reading for final passage on November 19, 2024. Effective Date: November 29, 2024 Approving Attorney: Jenny Lopez Filkins - 10 - ,, l fl , Sr. Deputy EXHIBIT A TO ORDINANCE NO. 163, 2024 Modifications from the 2025-2026 City Manager's Recommended Budget Note -Offers listed below are in the same order as presented in the work session on October 8 Onaolna Costs One-Time Costs Changes Made from Recommended Outcome Offer Number and Title Funding Source(s) Budget 2025 2026 2025 2026 C&R 58.6 -Golf Facility Assets Golf Fund Reserves Included for fundina in 1st ReadinQ $929,180 $248,540 26.16 -Access Funds for Low-Income Cultural Services Fund Included for funding in 1st Reading at a C&R Community Residents Reserves scaled amount of $75k oer vr. $75,000 $75 000 16.16 -Operation Services: 1.0 FTE -General Fund -Facilities HPG Real Estate Work for Others Included for fundinci in 1st Readinci $75,736 $91 427 16.19 -Operation Services: 1.0 FTE -General Fund -Facilities HPG HVAC Technician Work for Others Included for funding in 1st ReadinQ $130,060 $84,446 General Fund Ongoing 29.20 -Police Colorado Regional Revenue for $667k(The Information Sharing Project [CRISP] -balance of the offer is funded SAFE REHOST by partner orgs.) Included for funding in 1st Reading $2,000,000 Offer still funded, but amount reduced to $2.5M to align with updated SAFE 16.14-Police Services HVAC General Fund Reserves anticipated costs ($4 000 000' 18.8 -CONS: Eviction Legal Fund - NCV formerly ARPA funded General Fund Reserves Included for fundina in 1st Readina $220,000 $220 000 NCV 18.9 -CONS: Immigration Legal Fund General Fund Reserves Included for funding in 1st Reading $220,000 $220,000 Offer still funded, but at amount reduced from from $500k to $100k in Community Capital 2025 to fund Offer 44.10. 2026 is $0 44.2 -Affordable Housing Capital Improvement Fund (shift to due to the expiration of the 0.25 cent NCV Fund Offer 44.10) tax. ($400,000' Included for funding in 1st Reading. Community Capital This budget is intended to be non- Improvement Fund (shift from lapsing with the targeted intent of NCV 44.10 -Affordable Housing Fee Relief Offer 44.2) $200k per year $400,000 62.4 -Municipal Court: Judicial SAFE Services General Fund Reserves Included for fundina in 1st Readina $34,906 $36 129 11.5 -CPIO: Expanded Communication Methods -formerly HPG ARPA funded General Fund Reserves Included for funding in 1st ReadinQ $100,000 $100,000 EXHIBIT A TO ORDINANCE NO. 163, 2024 Ongoin ;1 Costs One-Time Costs Changes Made from Recommended Outcome Offer Number and Title Funding Source(s) Budget 2025 2026 2025 2026 Offer still funded, but at increased 16.9 -Fleet Vehicle and Equipment amount of $1 .2M for total funding of HPG New Replacements General Fund Reserves $2.2M $400 000 $1 800 000 -Broandband Fund APP @ $53k per year and Included for funding in 1st Reading at -General Fund Reserves @ scaled amount for 2 installations per T&M 19.8 -FC Asphalt Art Proaram $9.5k Per vear I vear instead of 4 $62 500 $62 500 Included for funding in 1st Reading at a 21.9 -PDT Active Modes Facility Transportation Fund scaled down amount that excluded T&M Maintenance Reserves streetsweepina $189 233 $193 964 $68 000 65.21 -Transfort Sunday and Holiday Included for funding in 1st Reading at T&M Service -2050 Tax Onaoina: Transit $300k starting in 2026 $0 $300 000 Offer still funded, but at amount 65.22 -Transfort: 4.0 FTE -Additional reduced from 7.0 FTE to 4.0 FTE in T&M Transit Security Officers -2050 Tax Ongoing: Transit 2026 (to pay most of Offer 65.21) $0 ($253 485' 19.11 -Adaptive Program Specialist for Safe Routes to School and FC Transportation Fund T&M Moves Reserves Included for fundina in 1st Readina $28 639 $29 928 EXHIBIT B TO ORDINANCE NO. 163, 2024 Approved Amendments included in First Reading of the 2025-2026 Budget Changes Made from Recommended One-Time Costs Outcome Offer Number and Title Fundina Source(sl Budget 2025 2026 Same funding for both years: -General Fund = $135,000 -Transportation Fund= $10,000 -Broadband Fund = $20,000 -Light and Power Fund = $28,050 10.3 -Cybersecurity Enhancement: -Water Fund= $26,350 Virtual CISO and Endpoint -Wastewater Fund= $19,550 SAFE Manaoement Modernization -Stormwater Fund= $11 050 Included for fundino on First Reading $250,000 $250,000 2025 Funding: -General Fund= $180,000 -Water Fund= $185,000 -Natural Areas Fund= $185,000 2026 Funding: -General Fund = $100,000 72.1 -Poudre Flows Design and -Water Fund= $100,000 ENV Permittino -Natural Areas Fund = $100 000 Included for fundino on First Readino $550 000 $300 000 Offer 10.3-Cybersecurity Enhancement: Virtual CISO and Endpoint Management Modernization (2025 = $250.000 and 2026 = $250,000) This offer proposes funding to advance cybersecurity capabilities within the City of Fort Collins, with a streamlined focus on establishing a Virtual Chief Information Security Officer (vCISO) role and enhancing Endpoint Management, including critical updates to Patch and Vulnerability Management systems. The requested $250,000 per year will support these essential cybersecurity improvements, adding to the protection of city data and infrastructure from increasing cyber threats. This investment builds on the momentum initiated through previous ARPA-funded efforts, aligning with federal cybersecurity standards and bolstering the city's resilience against threats. Summary of Key Components -Virtual Chief Information Security Officer (vCISO): A contracted cybersecurity leadership role focused on guiding the city's strategic cybersecurity initiatives, maintaining compliance with cybersecurity standards, and managing cybersecurity risk. -Endpoint Management Modernization: Improve tools and processes to add to the security of city-managed devices, with a primary emphasis on: -Patch Management: Proactive identification, testing, and deployment of security patches across systems to reduce vulnerabilities. -Vulnerability Management: Comprehensive risk assessment to identify and address potential vulnerabilities within the city's IT infrastructure. The increasing sophistication and frequency of cyber threats necessitate strong cybersecurity leadership and infrastructure. By funding a Virtual CISO and advancing Endpoint Management, the city will strengthen its cybersecurity posture while optimizing resources in a cost-effective manner. These updates not only protect against data breaches and disruptions but also maintain compliance with insurance requirements and federal cybersecurity standards. The continuation of ARPA-funded cybersecurity initiatives ensures that Fort Collins is equipped with an adaptive, resilient security framework that evolves with emerging threats. EXHIBIT B TO ORDINANCE NO. 163, 2024 Offer 72.1 • Poudre Flows Design and Permitting (2025 = $550.000 and 2026 = $300,000) This offer supports the health of the Cache la Poudre River (Poudre River), a cherished landmark and gathering point for Fort Collins community members. Annually, stretches of the Poudre River dry up due to the overallocation of water shares to support municipal, agricultural and industrial uses. Through the launch of the Poudre Flows Project (PFP), regional partners, including Fort Collins, will dedicate water rights to alleviate dry-up conditions and flow depletions on the Poudre River. These water rights will be used to protect instream flows while enhancing river health, water quality and recreation. To implement the PFP, existing diversion structures must be upgraded. This offer supports design and permitting costs to upgrade the Arthur Diversion structure located downstream of North Taft Hill Road. This project will be designed to allow for bypass flow and measurement, meeting the legal requirements to provide protected instream flows. Additionally, the design will support fish passage and safety upgrades to the structure to support community priorities for and use of the Poudre. By providing instream, protected flows contributed by regional municipal water providers and improving river health across a 52 mile stretch of the Poudre River, the PFP aligns with and supports City Council's priority to ensure a resilient and healthy Poudre River. The flows provided by the City will replenish a 10 mile reach of the urban Poudre River as it flows through the heart of Fort Collins. The PFP provides critical flows that protect Utilities' commitment to provide high quality water systems for the community. This project also benefits fish and riparian habitat, supporting the Natural Areas Department's goal to protect and improve ecosystem health, while enhancing recreation opportunities In a reach that experiences some of the lowest flows of the Poudre River. Finally, it supports Fort Collins' commitment to a regional effort to improve Poudre River health.