Agenda Date: 05/202025
Subject:
Title
Ordinance 04-2025: An ordinance on second reading amending Ordinance No. 23, Series of 2024, appropriating funds for the 2025 Annual Budget for all municipal purposes of the City of Littleton, Counties of Arapahoe, Douglas, and Jefferson, State of Colorado for the fiscal year beginning January 1, 2025, and ending December 31, 2025
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Kevin Orton, Budget Manager |
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Presentations: |
N/A |
PURPOSE:
Council consideration of a 2025 budget amendment for carryover encumbrances and additional 2025 funding needs.
LONG-TERM OUTCOME(S) SERVED:
High Quality Governance
DISCUSSION:
This ordinance will amend the 2025 Adopted Budget for general government funds in the amount of $46,073,098 This budget amendment includes three major categories:
• 2024 open purchase orders (or encumbrances) - $6,854,459
• Capital project and equipment adjustments - $20,989,409
• Grant adjustments - $18,229,229
During the Budget Amendment presentation, City Council will also receive a briefing on the General Fund outlook. This presentation will include a recommendation to add 2.0 FTEs for procurement and contract support.
2024 Open Purchase Orders/Encumbrances - $6,854,459
During the year, departments encumber funds by issuing purchase orders for goods or services. The city’s Principles of Sound Financial Policies last amended by City Council in April 2023 says, “Purchase orders remaining open at the end of the fiscal year will be considered for reappropriation in the subsequent fiscal year through a supplemental budget appropriation in the respective fund.”
This budget amendment includes appropriating additional funds to the 2025 Budget for encumbrances in the amount of $6,854,459.
Capital Project Adjustments - $20,989,409
In addition to open purchases order, this ordinance includes adjustments to capital projects. Adjustments to the capital projects are due to in progress project balances being rolled over from 2024 and adjustments to current capital projects due to needed additional appropriations or rescheduling projects to 2026 or beyond. Three major highlights of these adjustments are included:
Project Downtown
In December 2024, City Council approved redirecting $2.0 million of the transfer from the Capital Projects Fund and the 3A Sales Tax Capital Improvement Fund to the Fleet Fund and using those funds for Project Downtown initial design costs. Due to updated cost estimates, only $1.1 million is needed to be reduced from the transfer. This budget amendment reflects this new adjustment.
Lee Gulch &Broadway Drainage - Pedestrian Underpass
In March 2025, City Council received a briefing on an emergency storm drainage repair at Lee Gulch and Broadway. Since that meeting, the City has partnered with Arapahoe County and South Suburban Parks and Recreation to secure funding to construct a pedestrian underpass for the Lee Gulch Trail under Broadway at the same time as the drainage repair. The total cost of this project, including drainage repair, is approximately $9 million. Of that amount, $5.1 million is included in this budget amendment.
• $3.1 million - Appropriating contributions from Arapahoe Open Space and South Subrurban Parks and Recreation. This appropriation is within the Open Space Fund
• $2.0 million - The City’s portion of the trail underpass. This amendment will appropriate the City’s portion from the 3A Sales Tax Capital Improvement Fund.
Santa Fe and Mineral Intersection Project - Professional Services Agreement
As part of the Santa Fe and Mineral Intersection project, City Council will consider a professional services agreement for owner’s representative services in the amount of $2.3 million. This amendment will appropriate this amount from the 3A Sales Tax Capital Improvement Fund for that contract. This amount is planned to be reimbursed from Certificates of Participation (COPs) upon City Council approval at a future date.
Grant Adjustments - $18,229,229
This budget amendment also adjusts the appropriation within the Grant Fund in the amount of $18,229,229. Two major highlights are included:
Santa Fe and Mineral Intersection Project - CDOT Grant
As part of the Santa Fe and Mineral Intersection project, the city anticipates receiving $14.4 million in federal and state funds. This amendment authorizes and appropriates spending those funds from the Grant Fund.
American Rescue Plan Act (ARPA) Balances
In December 2024, City Council was briefed on the remaining ARPA project balances. This amendment appropriates the remaining ARPA grant balance.
General Fund Update and New FTE Request
During the Budget Amendment presentation, City Council will also receive a briefing on the General Fund outlook. This presentation will include a recommendation to add 2.0 FTEs for procurement and contract support. These new positions will be partially funded in the 3A Capital Improvement Fund and the General Fund.
BACKGROUND:
The city has historically amended the Adopted Budget in the first quarter of the year to account for encumbrances, capital project changes, grant changes, and other adjustments.
This ordinance will amend the 2025 Adopted Budget for general government funds in the amount of $46,073,098 This budget amendment includes three major categories:
• 2024 open purchase orders (or encumbrances) - $6,854,459
• Capital project and equipment adjustments - $20,989,409
• Grant adjustments - $18,229,229
A complete list of the adjustments for all funds is attached.
During the Budget Amendment presentation, City Council will also receive a briefing on the General Fund outlook. This presentation will include a recommendation to add 2.0 FTEs for procurement and contract support.
Prior Actions or Discussions
This is an annual process that occurs in the first quarter of each year for the previous year.
The 2025 Budget was adopted by City Council as Ordinance 23-2024 on November 19, 2024.
This ordinance passed on first reading on May 6, 2025.
FISCAL IMPACTS:
This ordinance amends the FY 2025 Budget in the amount of $46,073,098 The adjustment by fund is detailed below.
|
Fund |
Adopted Budget |
Amendment |
Revised Budget |
|
General Fund |
$63,283,760 |
$431,089 |
$63,714,849 |
|
Conservation Trust |
155,599 |
205,285 |
360,884 |
|
Grants |
8,076,000 |
18,641,050 |
26,717,050 |
|
Open Space |
1,989,679 |
3,931,043 |
5,920,722 |
|
Impact Fees |
5,966,264 |
2,297,847 |
8,264,111 |
|
Lodgers Tax |
853,720 |
9,140 |
862,860 |
|
ARPA |
0 |
1,272,279 |
1,272,279 |
|
Capital Projects |
4,409,659 |
6,974,367 |
11,384,026 |
|
3A Sales Tax Capital Projects |
14,151,116 |
11,996,019 |
26,147,135 |
|
Fleet Maintenance |
3,573,856 |
314,979 |
$3,888,835 |
|
Total |
$102,459,653 |
$46,073,098 |
$148,532,751 |
STAFF RECOMMENDATION:
Staff recommends approval of the amendment to the 2025 budget appropriation. This action is to appropriate funds in the 2025 budget; staff will be managing expenditures related to these projects/services.
ALTERNATIVES:
1. Approve the amendment to the 2025 budget appropriation as presented.
2. Amend the recommended budget amendment by amounts higher or lower than presented.
3. Do not approve the amendment. Not approving the amendment may impede or delay completion of capital projects already in progress.
PROPOSED MOTION:
Proposed Motion
I move to approve Ordinance 04-2025 amending Ordinance No. 23, Series of 2024, Appropriating Funds for the 2025 Annual Budget for all municipal purposes of the City of Littleton, Counties of Arapahoe, Douglas, and Jefferson, State of Colorado for the fiscal year beginning January 1, 2025, and ending December 31, 2025.