Agenda Date: 05/20/2025
Subject:
Title
Ordinance 06-2025: An ordinance on second reading of the City of Littleton, Colorado, as the governing body of the City of Littleton, Stormwater and Flood Management Utility Enterprise, amending the 2025 budget
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 Stormwater and Flood Management Utility Enterprise 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 the Stormwater and Flood Management Utility Enterprise Fund in the amount of $2,860,196. This budget amendment includes two major categories:
• 2024 open purchase orders (or encumbrances) - $37,029
• Interfund loan from the Sewer Fund to the Storm Drainage Fund - $2,823,167
2024 Open Purchase Orders/Encumbrances - $37,029
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 states, “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 $37,029.
Interfund loan from the Sewer Fund to the Storm Drainage Fund
In March 2025, City Council received a briefing on stormwater infrastructure repair needs. At that briefing, staff presented a $2.8 million shortfall in the Storm Drainage Fund to address immediate repairs in 2025.
The terms for the interfund loan from the sewer fund would be calculated as follow:
• Total Loan Amount: $2.8 million
o Includes projects identified in 2025. Upon project completion, any remaining funds will be returned to the Sewer Fund.
• Interest Rate: 2.5 %
• Payment Terms: 7 years (beginning in 2027)
• Approximate increase to Stormwater Rates for single family residents would be $16 per year. A finalized number will be calculated as part of the 2025 Stormwater rate study.
This ordinance will appropriate $2.8 million to the 2025 budget upon receiving the loan from the Sewer 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 the Stormwater and Flood Management Utility Enterprise Fund in the amount of $2,860,196. This budget amendment includes two major categories:
• 2024 open purchase orders (or encumbrances) - $37,029
• Interfund loan from the Sewer Fund to the Storm Drainage Fund - $2,823,167
A complete list of the adjustments for all funds is attached.
Prior Actions or Discussions
• City Council adopted the 2025 Stormwater and Flood Managed Utility Enterprise Budget as Ordinance 26-2024 on November 19, 2024.
• March 11, 2025: City Council Study Session on stormwater infrastructure needs.
This ordinance passed on first reading on May 6, 2025.
FISCAL IMPACTS:
This ordinance amends the 2025 Adopted Budget for the Stormwater and Flood Management Utility Enterprise Fund in the amount of $2,860,196. The adjustment by fund is detailed below.
|
Fund |
Adopted Budget |
Amendment |
Revised Budget |
|
Storm Drainage Fund |
$3,517,853 |
$2,860,196 |
$6,378,049 |
|
Total |
$3,517,853 |
$2,860,196 |
$6,378,049 |
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 05-2025 of the City of Littleton, Colorado, as the governing body of the City of Littleton, Stormwater and Flood Management Utility Enterprise, amending the 2025 budget.