HomeMy WebLinkAbout069 - 06/19/2018 - APPROPRIATING PRIOR YEAR RESERVES IN THE LIGHT AND POWER FUND FOR THE LIGHT AND POWER NEW CIRCUITS P ORDINANCE NO. 069, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE LIGHT AND
POWER FUND FOR THE LIGHT AND POWER NEW CIRCUITS PROJECT
WHEREAS, the City's Electric Utility is preparing to complete construction of three new
service connections and capacity upgrades to accommodate a recent annexation and customer load
growth, referred to as the "Light and Power New Circuit Project"; and
WHEREAS, on February 20, 2018, the City Council approved annexation of the City's
water treatment facility into the City's municipal boundaries through Ordinance Nos. 023, 025,
027, and 029, 2018, which was needed for the City's Electric Utility to establish a connection
and improve the reliability of electric service to the facility; and
WHEREAS, the 2017/2018 budget included appropriation of$1.3 million in the Water
Utility Enterprise Fund to cover service fees and the cost to build the new electric service
connection to the Water Treatment facility; and
WHEREAS, Utility Services staff recommends appropriating $1.3 million in the Electric
Utility Enterprise Fund (Light and Power Fund) to allow the Electric Utility to spend service fees
received from the Water Utility and to construct the new service connection to the Water
Treatment facility; and
WHEREAS,Utility Services staff further recommends appropriating $480,000 in the Light
and Power Fund.to build additional electric circuit capacity to satisfy current commitments to
deliver electric service capacity under agreements with industrial customers in the East Harmony
Industrial Park; and
WHEREAS, Utility Services staff further recommends appropriating an additional
$230,000 in the Light and Power fund to cover increased costs associated with improving electric
circuit capacity in substations experiencing accelerated residential load growth in southwest Fort
Collins (the "Southwest Residential Area Project"); and
WHEREAS, prior to completion of the design for the Southwest Residential Area
Project, the 2017 budget estimate was $260,000; final design estimates are currently $490,000,
requiring appropriation of an additional $230,000 to complete the project; 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
WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to
transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof
from one fund or capital project to another fund or capital project, provided that the purpose for
which the transferred funds are to be expended remains unchanged; the purpose for which the
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funds were initially appropriated no longer exists;or the proposed transfer is from a fund or capital
project in which the amount appropriated exceeds the amount needed to accomplish the purpose
specified in the appropriation ordinance; and
WHEREAS,the Light and Power New Circuit Project involves total estimated construction
cost of more than$250,000,as such, Section 23-304 of the City Code requires one percent of these
qualified appropriations (qualified appropriation amount is equal to $710,000 since APP was
previously appropriated and transferred on the $1.3M in the 2017/18 Budget) to be transferred to
the Cultural Services and Facilities Fund for a contribution to the Art in Public Places (APP)
program; and
WHEREAS, this appropriation benefits public health, safety, and welfare of the citizens
and ratepayers of Fort Collins and serves the utility purpose of improving water and electric service
reliability and controlling cost of service increases; and
WHEREAS, the City Manager has recommended the appropriation described herein and
determined that this appropriation is available and previously unappropriated from the Light and
Power Fund and will not cause the total amount appropriated in the Light and Power Fund to
exceed the current estimate of actual and anticipated revenues to be received in that fund during
any fiscal year.
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 Light and
Power Fund the sum of TWO MILLION SEVENTEEN THOUSAND ONE HUNDRED
DOLLARS ($2,017,100) as follows:
• Water Treatment Facility Project $1,300,000
• East Harmony Industrial Park Project 480,000
• Southwest Residential Area 230,000
• Art in Public Places Project (Artwork) 5,538
• Art in Public Places Project (transfer to Cultural Services 1,562
Fund for APP Maintenance & Operations)
TOTAL $2,017,100
Section 3. That the unexpended appropriated amount of ONE THOUSAND FIVE
HUNDRED SIXTY-TWO DOLLARS ($1,562) is authorized for transfer to the Art in Public
Places Projects from the Light and Power Fund to the Cultural Services and Facilities Fund and
appropriated therein for the Art in Public Places Program Maintenance and Operations.
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Introduced, considered favorably on first reading, and ordered published this 5th day of
June, A.D. 2018, and to be presented for final passage on the 19th day of June, A.D. 2018.
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Passed and adopted on final reading on the 19th day of June, A.D. 2018.
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