Agenda Date: 05/21/2024
Subject:
Title
Ordinance 10-2024: An ordinance on second reading amending the 2023 Littleton Stormwater and Flood Management Utility Enterprise Budget
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Tiffany Hooten, Finance Director |
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Presentations: |
N/A |
PURPOSE:
Does the city council support amending the 2023 Littleton Stormwater and Flood Management Utility Enterprise budget for additional costs for the emergency repairs related to multiple culvert collapses in 2023?
LONG-TERM OUTCOME(S) SERVED:
Safe Community; High-Quality Governance
DISCUSSION:
This ordinance is to amend the 2023 Littleton Stormwater and Flood Management Utility Enterprise budget to appropriate funds for additional emergency repairs related to multiple culvert collapses in 2023. This ordinance is to amend the 2023 Littleton Stormwater and Flood Management Utility Enterprise budget to appropriate funds for additional emergency repairs related to multiple culvert collapses in 2023. It is common for goods and services to be provided or received in one fiscal year and paid in the following year. The finance department provides a grace period through mid-February for all departments to submit invoices for goods or services received and performed in the prior year.
Finance does a cursory review of the status of funds prior to end of the fiscal year to determine if a fund might need a budget amendment. At that time, there was nothing to indicate from the finance perspective that am amendment was need.
Unfortunately, there are some invoices that are received and processed after this annual deadline. Finance is required to review the invoices to determine if they meet the requirements to be processed in the year being paid or in the year the services were performed. The invoices related to this budget amendment were received and processed by the finance department in March 2024 and due the total amount of invoices, they were required to be recorded in 2023; the year in which the services were provided. It was later understood that the contract amount for the vendor had been exceeded and invoices were being held until the contract was amended and approved by council which occurred in March 2024. This ultimately caused 2023 Littleton Stormwater and Flood Management Utility Enterprise budget to be exceeded and a budget amendment is being requested. Due to timing, the budget amendment is occurring in May 2024.
BACKGROUND:
The culvert beneath the roadway on Jackass Hill Road north of Mineral Avenue failed in June 2023 following record breaking rainfall. The estimated cost of emergency repairs at that time was $1.2M. A loan of $1.1M from the Littleton Sewer Utility Enterprise Fund was approved in November 2023 to help fund these emergency repairs. The city has been working with Arapahoe County and FEMA and it is anticipated the city will be eligible for reimbursement for this emergency repair of approximately $1.26M. Additional culvert collapses at Broadway & Jamison Avenue and in Powers Park occurred during the same June storm. Work on these repair projects is ongoing and are anticipated to cost $1M. It is anticipated that FEMA reimbursement of at least 75% will be eligible for these locations as well.
The city experienced additional culvert collapses on E. Mineral Avenue in August 2023. The additional culvert collapses emergency work occurred outside of the time window of the FEMA disaster declaration in the summer of 2023, and therefore is ineligible for FEMA reimbursement. Costs related to these subsequent culvert collapses required additional funds in 2023 of approximately $825,000 more than budgeted; therefore, a budget amendment is needed for the 2023 Littleton Stormwater and Flood Management Utility Enterprise budget in 2023.
With the continued culvert collapses within the city, staff is exploring other funding options in order to enhance the maintenance program for future maintenance and repairs of stormwater utilities. These options will be discussed with council at a future date.
Prior Actions or Discussions
August 15, 2023 - Ordinance 13-2023: An ordinance on second reading amending the 2023 Littleton Stormwater and Flood Management Utility Enterprise budget to appropriate an additional $1,200,000 was approved.
November 7, 2023 - Resolution 116-2023: Approving an Interfund Loan of $1,100,000 from the Sewer Utility Enterprise to the Stormwater and Flood Management Utility Enterprise for Emergency Culvert Collapse Repairs was approved.
November 7, 2023 - Ordinance 30-2023: An ordinance on second reading of the City of Littleton, Colorado, as the governing body of the City of Littleton, Sewer Utility Enterprise, amending the 2023 Sewer Budget to allow for the $1.1M transfer was approved.
May 7, 2024 - This ordinance passed on first reading.
FISCAL IMPACTS:
The Littleton Stormwater and Flood Management Utility Enterprise budget was amended by $1.2M in August 2023 and a loan of $1.1M was approved from the Sewer Utility Enterprise specifically for the Jackass Hill emergency repairs in November 2023.
The additional culvert collapses on E. Mineral Avenue emergency work occurred outside of the time window of FEMA disaster declaration in the summer of 2023, and therefore are ineligible for FEMA reimbursement. Costs related to these subsequent culvert collapses required additional funds in 2023 of approx. $825,000 more than budgeted; therefore, a budget amendment is needed for the 2023 Littleton Stormwater and Flood Management Utility Enterprise budget.
STAFF RECOMMENDATION:
Staff recommends approval of the ordinance on second reading.
ALTERNATIVES:
It is recommended to approve the budget amendment for 2023 Littleton Stormwater and Flood Management Utility Enterprise budget for the repairs in 2023.
PROPOSED MOTION:
Proposed Motion
I move to approve Ordinance 10-2024 on second reading amending the 2023 Littleton Stormwater and Flood Management Utility Enterprise budget.