Agenda Date: 07/16/2024
Subject:
Title
Ordinance 16-2024: An ordinance on first reading amending Ordinance No. 24, Series of 2023, Appropriating Funds for the 2024 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, 2024 and ending December 31, 2024
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 2024 budget amendment for additional 2024 funding needs.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
This ordinance includes six 2024 budget amendments as noted below:
Church Multimodal Grant - $250,000
On March 5, 2024, council authorized an intergovernmental agreement with the Colorado Department of Transportation (CDOT) to accept Revitalizing Main Streets Opportunity Funds in the amount of $250,000 for Multimodal Improvements on Church Avenue.
The total project cost is $305,000; of that amount $250,000 is from the CDOT Revitalizing Main Street Opportunity Funds and $55,000 is from city matching funds.
This ordinance will amend the 2024 budget by appropriating $250,000 from the Grant Funds. Matching funds in the amount of $55,000 is available for the 2024 3A Sales Tax Capital Improvement Fund budget’s current appropriations.
Great Outdoors Colorado (GOCO) Grant - $950,000
On March 5, 2024, council authorized a grant funding agreement with Great Outdoors Colorado (GOCO) to receive $950,000 for Reynolds Landing River and Park improvements.
This ordinance will amend the 2024 Budget to appropriate the $950,000.00 in Grant Funds. The City is required to match 25% of matching funds, these matching funds will be identified in the Open Space Fund and will be included in the 2025 Proposed Budget for City Council consideration.
Contributed Capital - $3,129,657 from partner agencies and developers
The city is leading eight (8) infrastructure projects in partnership with other agencies and developers. This ordinance will amend the 2024 Budget and appropriate contributing capital funds from these other partners in the amount of $3,129,657 for the following projects. Contributed capital has no financial impact to the city as these are revenues received from partners as contributions and in turn used as part of each project as noted. No additional city funds are required or appropriated with this action.
|
Project |
Contributing Agency |
Agreement |
Amount |
|
Platte Canyon & Mineral Intersection |
Arapahoe County |
Intergovernmental Agreement Res. 63-2024 |
$101,930 |
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Mineral Mobility West Improvements |
Arapahoe County |
Intergovernmental Agreement Res. 56-2024 |
287,500 |
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Broadway Fiber |
Arapahoe County |
Intergovernmental Agreement Res. 12-2204 |
113,673 |
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Santa Fe & Mineral Intersection |
Evergreen Development |
Subdivision Improvement Agreement |
1,278,000 |
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Santa Fe & Phillips Intersection |
Toll Brothers |
Development Project1 |
254,645 |
|
Mineral Station East Mobility-shed Project |
South Suburban Parks & Recreation (SSPRD) |
Commitment from SSPRD |
200,000 |
|
Santa Fe & Mineral Intersection |
Toll Brothers |
Subdivision Improvement Agreement |
743,909 |
|
2023 Mill & Overlay |
Denver Water |
Estimate - MOU for Reimbursement1 |
150,000 |
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Total Contributed Capital |
$3,129,657 |
1Final agreements to be completed prior to project start.
Bowles Fence - $179,500
In the 1990s, the city installed a fence along Bowles Avenue to reduce traffic noise. Due to the age, storms, accidents, and general wear and tear, this fence needs replacement. It is estimated that to install an 8-foot Trex fence would be approximately $180,000. A Trex fence contains 95% recycled wood and plastics and is seen as the industry standard for traffic noise reduction and has a 50-year lifespan. The original fence type is no longer manufactured.
Upon completion of this fence, the city will seek to transfer ownership of the fence to the neighboring homeowners as this is the only city-owned fence that borders private property.
This ordinance will amend the 2024 Budget and appropriate $179,500 from the Capital Projects Fund for this project. In 2023, Building use tax revenues were higher than anticipated. Funding for this project is recommended from the additional tax revenues received in 2023.
Replace Spray Patch Truck with Asphalt Recycler for Streets - $102,353
The city currently owns one Spray Patch Truck that to fill potholes; the Spray Patch Truck is a 2012 Nissan UD3300 and has the following limitations:
• Cannot operate below 40 degrees
• The emulsion, or asphalt repair mix, must be used in a timely fashion or it will coagulate
• Nissan is discontinuing the current model which will impact procuring replacement parts
• The current vehicle needed extensive repairs and was only used for 52 hours in 2023.
• Operates at $200 per ton due to needing cold mix bags
The city seeks to replace the Spray Patch Truck with an Asphalt Recycler. An Asphalt Recycler mixes millings along with emulsified asphalt. For hot mix asphalt, the mixture is tumbled and heated for approximately 20 minutes before it is ready to use. This mixture is then loaded in a patch truck for pothole repair. This new vehicle will provide the city with the following advantages:
• Operates in 32 degrees or higher
• Estimated operating cost $100 to $120 per ton due to discontinued need of cold mix bags
• Recycles city’s own millings instead of disposing of the millings
• Produce hot patch asphalt for $50 per ton, as opposed to contractor cost of $145 per ton.
The estimated salvage value of the current Spray Patch Truck is $50,000 to $60,000.
This ordinance will amend the 2024 budget and appropriate $102,353 from 3A Sales Tax Capital Improvement fund due to this vehicle’s function aligning with the fund’s intended purpose of neighborhood street maintenance and reconstruction, and street and bridge safety improvements.
Impact Fee Fund - $849,349
In 2024, the city is anticipated to receive approximately $800,000 additional Impact Fee revenues as projects move forward within the city. This ordinance would appropriate the additional estimated revenue, along with approximately $50,000 from available fund balance from 2023 and 2024 for transportation and multimodal projects. The total requested appropriation is $849,349. There is adequate fund balance for the additional $50,000 based on the revised five-year plan.
BACKGROUND:
It is a typical need to amend the city’s budget periodically throughout the year. This will be the second amendment for 2024.
Six budget amendments are included in this ordinance:
• $250,000 - Church Multimodal Grant awarded in December 2023 (from the Grants Fund)
• $950,000 - Great Outdoors Colorado (GOCO) Grant awarded in March 2024 (from the Grants Fund)
• $3,129,657- Various Capital Improvement Projects (from Capital Projects Fund)
o Note: All funds are from other agencies. No additional city funds are being appropriated.
• $179,500 - Bowles Avenue Fence project (from Capital Projects Fund)
• $102,353 - Asphalt Recycler purchase (from 3A Sales Tax Capital Improvement Fund)
• $849,349 - Additional revenues providing funding for various capital projects programmed from impact fees. Approximately $850,000 from additional revenues and $50,000 from available fund balance (Impact Fee Fund)
Prior Actions or Discussions
This is an annual process that occurs in the second quarter of each year for the previous year.
FISCAL IMPACTS:
A supplemental budget appropriation for the 2024 budget is requested in the amount of $5,460,859.
|
Fund |
Budget Amendment |
|
Grant Funds |
$1,200,000 |
|
Capital Projects Fund |
$3,309,157 |
|
3A Sales Tax Capital Improvement Fund |
$102,353 |
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Impact Fee Fund |
$849,349 |
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Total 2024 Budget Amendment |
$5,460,859 |
STAFF RECOMMENDATION:
Staff recommends approval of the amendment to the 2024 budget appropriation. This action is to appropriate funds in the 2024 budget; staff will be managing expenditures related to these projects/services.
ALTERNATIVES:
1. Approve the amendment to the 2024 budget to complete the projects and purchases.
2. Do not approve the amendment. The city will need to identify an alternative funding source to complete the projects and purchases. Funds from outside agencies and partners will be returned.
PROPOSED MOTION:
Proposed Motion
I move to approve Ordinance 16-2024 on first reading amending Ordinance No. 24, Series of 2023, Appropriating Funds for the 2024 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, 2024 and ending December 31, 2024 and to set the public hearing for August 6, 2024.