HomeMy WebLinkAbout010 - 01/16/2018 - APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND AS A LOAN TO THE LIGHT AND POWER FUND FOR THE ORDINANCE NO. 010,2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND AS A LOAN TO
THE LIGHT AND POWER FUND FOR THE ELECTRIC UTILITY'S FIRST YEAR
OPERATIONS AND MAINTENANCE COSTS FOR TELECOMMUNICATION FACILITIES
AND SERVICES
WHEREAS, at the November 28, 2017, City Council Work Session, there was a
discussion concerning the City's broadband project,which included an estimated timeline,major
milestones, appropriation and governance recommendations,and City staff highlighted the need
to dedicate resources to support further development and details associated with a municipal
retail model for the City's Electric Utility to start providing telecommunication facilities and
services; and
WHEREAS, in pursuit of that plan development, staff is requesting an appropriation of
$1.8 million from General Fund reserves to support first year start-up costs associated with
recruiting and hiring personnel, consulting, equipment, branding to support the initiative and
other operations,and maintenance costs; and
WHEREAS, the General Fund reserves will be restored from the proceeds of the Electric
Utility Enterprise proposed bond issuance, pending the Council's adoption of the corresponding
bond ordinance(currently scheduled for the March 20 and April 3 meetings), acting as the Board
of the Electric Utility Enterprise; and
WHEREAS, costs estimates are as follows:
($00o's) 2018
Q1 02 Q3 Q4 FullYear
Full Time Equivalent 1.3 5.0 7.0 13.0
Quarter End Headcount 4.0 7.0 7.0 17.0
Personnel $ 43 $ 148 $ 187 $ 295 $ 672
Consulting 120 120 88 88 415
Branding/Web Site 63 63 30 30 185
Legal 50 30 20 20 120
Office& Equipment 45 49 63 92 248
Contingency 50 50 30 30 160
TotaIO&M $ 370 $ 459 $ 417 $ 554 $ 1,800
and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council to
appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be
available from reserves accumulated in prior years, notwithstanding that such reserves were not
previously appropriated; and
-1
WHEREAS, City staff have determined that the appropriations as described herein are
available and previously unappropriated in the General Fund; and
WHEREAS, this appropriation will serve the public purpose of providing a loan to the
City's Electric Utility to help fund "its start-up, costs related to the Utility making
"telecommunications facilities and services," as this term is defined in Section 7 of City Charter
Article XIII, available to its customers throughout the City; and
WHEREAS, the City Council hereby finds that the appropriation is necessary for the
public's health, safety and welfare and is in the best interests of the City and its residents,
businesses, and public and private organizations.
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 there is hereby appropriated from prior year reserves in the General
Fund the sum of ONE MILLION EIGHT HUNDRED THOUSAND DOLLARS
($1,800,000) as a loan to the Light and Power Fund to be expended for the Electric Utility's
first year of operations and maintenance relating to telecommunications facilities and services.
This loan shall be repaid to the General Fund by the City's Electric Utility Enterprise when the
Enterprise receives the proceeds from the revenue bonds the Enterprise is anticipated to issue to
fund the Electric Utility's start-up costs for the provision of telecommunications facilities and
services. The loan repayment shall also include interest of two and three quarters percent
(2.75%).
Introduced, considered favorably on first reading, and ordered published this 2nd day- of
January, A.D. 2018, and to be presented for final passage on the 16th da of January, A.D. 2018.
Q
ATTEST:
OFFO!
1 ,....•.,Ol
L./.Ca�[.GI-sue ,`�••••
u�; 'Li
city c k SEAL ;N
cOCORA00
-2-
Passed and adopted on final reading on the 16th day of January, A.D. 2018.
(::;ayvor
ATTEST:
�FORTCO
�Z
i
" SEAL*":
city c
COLORP�O
-3-