HomeMy WebLinkAbout136 - 11/20/2018 - ADOPTING THE 2019 BUDGET AND APPROPRIATING THE FORT COLLINS SHARE OF THE 2019 FISCAL YEAR OPERATING ORDINANCE NO. 136, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE 2019 BUDGET AND APPROPRIATING THE FORT COLLINS
SHARE OF THE 2019 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; 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,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;and
WHEREAS,under the IGA,each City's share of the Airport's annual operating budget and
the Airport capital improvement plan shall be appropriated by each City and transferred or
otherwise paid into the designated account to be used for Airport funding on an annual basis; 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 2019
Airport budget totaling $2,746,915, of which the City's 50% share is $1,373,458 ($1,261,915 for
operations and$1,485,000 for capital); and
WHEREAS, the City Council is in the process of considering the City's 2019 budget and
Ordinance No 133, 2018, which appropriates $177;500 in City funds to be transferred to the
Airport operating fund in accordance with the IGA (the "Fort Collins Contribution"); 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
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WHEREAS, the City's 50% share of the 2019 Airport operating costs, to be held in the
Airport Fund, is $630,958; and
WHEREAS, funding for the 2019 capital improvements has been identified as follows:
FAA Grant $850,000
State Grant 42,500
Airport Revenues 92,500
Airport Reserves 500,000
Total $1,485,000; and
WHEREAS, the City's 50% share of the 2019 Airport capital improvement costs, to be
held in the Airport fund, is $742,500; 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 staff has determined that the requested appropriation of Airport Reserves
in the 2019 Airport Budget meets the required limits set forth in the IGA; and
WHEREAS, this appropriation will satisfy the City's obligations under 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 2019 Airport
operating and capital budget totaling $2,746,915 ($1,261,915 for operations and $1,48.5,000 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 $630,958 to
be expended to defray the City's 50% share of the 2019 operating costs of the Airport.
Section 4. That the City Council hereby appropriates in the Airport Fund$742,500 to
be expended to defray the City's 50% share of the 2019 capital costs of the Airport.
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Introduced, considered favorably on first reading, and ordered published this 6th day of
November, A.D. 2018, and to be presented for final passage on the 20th day of November, A.D.
2018.
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Passed:and adopted on final reading on the 20th day of November, A.D. 2018.
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EXHIBIT A
Northern Colorado Regional Airport
The Northern Colorado Regional Airport.(FNL) has served as a public regional air transportation center since 1964.
The Airport is certified by the Federal Aviation Administration (FAA) as a commercial service airport, and it is
administered and operated jointly by the Cities of Fort Collins and Loveland.The Airport has 265 based aircraft,
and accommodates approximately 95,000 flight operations annually.These operations range from commercial air
carrier, private charter, business and corporate aviation, emergency medical transport, aerial fire suppression,
flight training, and private transportation.
The Airport supports many aviation based businesses including a full service fixed base operator that provides
aircraft fueling and concierge services,three flight training schools,two aircraft maintenance and repair stations,
and one avionics center.The Airport is also host to a variety of private and corporate aviation flight departments
for locally based companies that require access to the airport to remain competitive in today's global markets.
According to the Economic Impact Study conducted in 2013 by the Colorado Department of Transportation
Division of Aeronautics, the Airport contributes approximately $129 million annually to the regional economy. .
This impact is derived through Airport associated activities and area spending from visitors. The study also
identified 926 jobs that were directly associated with the Airport through administrative and operational support,
airport businesses,capital improvement investments,and visitor spending.
The Airport generates most of its operational and capital resources, and leverages Federal and State grant
resources to provide support for infrastructure and planning needs.The Airport's self-generated revenues come
from airport operational activities including the leasing of hangars and airport owned land for privately owned
hangars,aviation fuel sales,and commercial air carrier activities.The City of Loveland,through intergovernmental
agreement (IGA), provides support services for the Airport; therefore, the City of Loveland adopts the Airport
budget and includes it this document.
The Northern Colorado Regional Airport Commission is comprised of elected officials,staff,and appointed citizen
members from both Fort Collins and Loveland.The Commission has been delegated powers and authority from
both City Councils to make progress towards the goals of the Airport's mission, which is "to provide a safe and
efficient air transportation facility to the public and aviation community by providing airport facilities that meet
Federal Aviation Administration safety standards and to implement a plan that ensures the efficient development
of the Airport to meet the needs of the Fort Collins and Loveland communities."
City of Loveland-2019 Draft Budget&Capital Program-8/31/18 183
Northern Colorado Regional Airport
2017 2018 2018 2019 2019 Draft/ 2019 Draft/
DESCRIPTION ACTUALS ADOPTED REVISED DRAFT 2018 Adopted 2018Adopted
$Change %Change
Beginning Fund Balance 3,509,521 1,506,761 2,258,314 1,223,679 (283,682) -18.8%
Total Revenues
Intergovern 1,091,535 242,500 242,500 1,070,000 827,500 341.2°%
Miscellaneous 31,424 23,500 33,469 21,000 (2,500) (10.6%)
Interest Income 25,965 22,812 22,812 20,000 (2,812) (12.3%)
Operating Revenues 93.2,407 908,300 908,300 893,250 (15,050) (1.7%)
Capital Contributions - 46,240 46,240 - (46,240) (100.0%)
Total Revenues 2,081,331 1,243,352 1,253,321 2,004,250. 760,998 61.2%
Total Expenditures&Capital
AIR-Airport 3,328,858 '1,572,700 2,284,156 2,242,665 669,965 42.6%
AIR-Airport-FBO Rep and Maint 3,680 3,800 3,800 4,250 450 11.8%
Northern Colorado Regional Airport 3,332,538 1,576,500 2,287,956 2,246,915 670,415 42.5%
Ending Fund Balance 2,258,314 1,173,613 1,223,679 992,014 (192,599) -16.4%
Net Income (1,251,208) (333,148) (1,034,635) (242,665) 90,483 (27.2%)
City of Loveland-2019 Draft Budget&Capital Program-8/31/18 184
Northern Colorado Regional Airport
2017 2018 2018 2018 2018 2019 2019
Full-Time Equivalents(FTEs)Summary Actual Adopted Adopted Mid-Year Revised Proposed Proposed
Chan a Total Chan a Total Change Total
FTEs by Fund
Northern Colorado Regional Airport 6.000 6.000 6.000 6.000
Total 6.000 6.000 6.000 6.000
FTEs by Division
Airport 6.000 6.000 6.000 6.000
Total 6.000 6.000 6.000 6.000
City of Loveland-2019 Draft Budget&Capital Program-8/31/18 185
Northern Colorado Regional Airport ®RAFT
' 0 /02/18
9. oo . o ft3 a7 0 o
Total Aircraft Based on Field ? 24Si 250 255 263 26
. .. _ . _. — _. .
Average Take Off and Landings Per
2160_ 260 270. - 28P
Total Annual Enplanetl:Passengers on
;Certified Air Carrier Aircraft�, 3445h 4 559i 3,1921 3,000( 10,00J
�'
Hangars 3/%Occupancy . _ 209/100%_ 209/1o00/0 211/1Ob% 214/1009/6 220/1009/o'
Airport Self.-Generated Revenue', �L_ _$618 216, $645,398�$703,831 _w$659,5D0 �$776.750
1 Numbers currently estimated; actuals will be available upon implementation of tower technology.
i Total Annual Enplaned Passengers on Certified Air Carrier Aircraft is significantly increasing due to the return
of commercial airline service as a result of the remote air traffic control tower project.
3 Aircraft hangars range in size from 1,000 to 35,0.00 square feet and can accommodate one or multiple aircraft.The
Airport currently has one multi-hangar development project underway and anticipates more to be built in the
future to accommodate demand.
Select Performance Measures are included for most City departments. The full list of performance measures resulting
from Phase 1 of the City's Performance Measures Project are available in a separate document.. Phase 1 measures are
undergoing review for accuracy,finer definition,and data availability.However, they provide a relative sense of
workload trends,and afford policy makers and the public with an opportunity to provide feedback on measures that are
most important and informative. Phase 2 will incorporate feedback received and development of'effectiveness
measures' to provide an additional dimension of information available to understand the effectiveness of services
provided by the City.The current project timeline includes a January 2019 Phase 2 completion date.
City of Loveland-Z019 Draft Budget&Capital Program-8/31/18 196