HomeMy WebLinkAbout127 - 11/17/2020 - ADOPTING THE 2021 BUDGET AND APPROPRIATING THE FORT COLLINS SHARE OF THE 2021 FISCAL YEAR OPERATING ORDINANCE NO. 127, 2020
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE 2021 BUDGET AND APPROPRIATING THE FORT COLLINS
SHARE OF THE 2021 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 in Airport assets and revenues, 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 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; and
WHEREAS, the proposed budget does not include financial contributions from the City's
General Fund as it has in previous years because anticipated Airport revenues will provide
sufficient revenues for operations,primarily as a result of the Northern Colorado Law Enforcement
Training Center Lease payments by both Cities; and
WHEREAS, because each City has an ownership interest in 50% of the Airport revenues
held and disbursed by the City of Loveland as an agent on behalf of the Cities, each City must
appropriate its 50%share of the annual operating and capital budget for the Airport under the IGA;
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 2021
Airport budget totaling $7,033,886, of which the City's 50% share is $3,516,943 ($733,943 for
operations and $2,783,000 for capital); and
WHEREAS, the City Council is in the process of considering the City's 2021 budget and
Ordinance No. 138, 2020, which appropriates $I86,173 in City funds to be transferred to the
Airport operating fund in payment of the City's share of the rent due under the Lease of a portion
of the Airport property for construction and operation of the Northern Colorado Regional Law
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Enforcement Training Center, which amount is included in the Land Lease revenues set forth in
the 2021 Airport Budget; 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, funding for the Airport's 2021 operating and capital improvement budgets
has been identified as follows:
FAA Grant $6,335,000
State Grant 152,000
Airport Revenues 1,338,826
Airport Reserves 1,000,000
Total $8,825,826; and
WHEREAS, the City's 50% share of the 2021 Airport operating costs, to be held in the
Airport Fund, is $733,943; and
WHEREAS, the City's 50% share of the 2021 Airport capital improvement costs, to be
held in the Airport fund, is $2,783,000; and
WHEREAS, the Airport Reserves item is an appropriation for use by the Northern
Colorado Regional Airport Commission for discretionary Airport projects; and
WHEREAS, City Finance staff has reviewed the financial statements for the Airport and
determined that the requested appropriation of Airport Reserves in the 2021 Airport Budget meets
the required limits set forth in the IGA; and
WHEREAS, this appropriation will not require additional funding from the Cities and is
consistent with the IGA.
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 2021 Airport
operating and capital budget totaling $7,033,886 ($1,467,886 for operations and $5,566,000 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 $733,943 to
be expended to defray the City's 50% share of the 2021 operating costs of the Airport.
Section 4. That the City Council hereby appropriates in the Airport Fund $2,783,000
to be expended to defray the City's 50% share of the 2021 capital costs of the Airport.
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Introduced, considered favorably on first reading, and ordered published this 4th day of
November, A.D. 2020, and to be presented for final passage on the 17th day of November, A.D.
2020.
Mayor
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Passed and adopted on final reading on the 17th day of November, A.D. 2020.
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