Agenda Date: 10/21/2014
Subject:
Title
Ordinance on second reading known as the "Annual Appropriation Bill" 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, 2015 and ending December 31, 2015
Body
Presented By: |
Doug Farmen, Finance Director |
POLICY QUESTION:
Does council approve the 2015 annual appropriation ordinance for the City of Littleton?
BACKGROUND:
During the 2015 proposed budget review process, council reviewed 34 Policy Questions (PQs) with departmental line item budget requests. The following are changes to the 2015 proposed budget due to council direction or other adjustments.
General Fund Revenues:
The city recently received 2014 (to be collected in 2015) estimated assessed values from Arapahoe, Douglas, and Jefferson Counties. These estimates total $618 million or $4,115,000 in property taxes to be collected in 2015. The proposed budget anticipated $4.3 million; the $185,000 difference is reflected in the 2015 estimates.
Fire partner (contract reimbursements) revenues were reduced by $21,000 to reflect a reduction to fire expenditures.
Other revenues (sales of capital assets 01-171-5930) were increased by $79,000 to reflect the elimination of the Fleet Maintenance Fund (more details below).
Total revenues decreased by $127,000.
General Fund Expenditures:
Reduce Fire Support Services (01-222-7551) vehicle maintenance costs by $30,000 due to an aged vehicle recently determined to be at the end of its useful life.
Reduce Community Development (01-320-7430) by $80,000 (PQ #27b) for streetscape plan services. On first reading, council approved a motion for staff to conduct a Request for Proposals for this project with the results to be discussed at a future study session. Until the study session is completed, this project is unfunded in 2015.
Add $12,000 for discretionary expenditures (PQ #32).
Reduce individual departmental vehicle operating expenditures by $1,835,270 (does not pertain to the fire department) to account for new Fleet division in Public Works. Staff is removing the Fleet Maintenance Fund (#65) internal service fund to save staff time in accounting and allocating vehicle costs to each city division (fleet will continue internally accounting for vehicle costs). Increase of $1,471,340 for the new division.
Add $5,000 to the Fine Arts Committee expenditures.
The transfer to the Capital Projects Fund will be increased by $385,000 to account for the above changes to revenues and expenditures.
Total expenditures decreased by $71,930. The General Fund ending fund balance is $55,070 less than the proposed budget amount due to reduced operating expenditures and meeting the 17% reserve requirement.
Public Facilities Fund:
The 2014 revenues are adjusted by $572,670 to account for collected revenues to date; these revenues will fund $564,670 of additional projects in 2015 ($267,920 moved from the Open Space Fund, and $296,750 for additional projects PQ #33 and PQ #34).
The 2015 ending fund balance will remain at $0.
Open Space Fund Expenditures:
Reduce by $120,000 per council's direction to not fund PQ #18 and #19.
Reduce by $267,920 for Riverside Downs project and move to the Public Facilities Fund.
Fire Impact Fee Fund Revenues and Expenditures:
Reduce 2014 revenues by $177,130 and 2015 by $158,550 due to lower projected impact fee revenues.
The 2015 proposed aerial truck purchase (city share of $475,000) is moved to 2014 due to the fire chief's recommendation that the purchase be expedited due to safety and incident coverage issues. The fire impact fees will not fund this purchase as originally proposed, based on further analysis by the city attorney's office. The fire department's share of quick car program purchases budgeted in 2015 for $54,000 (city share of $180,000 total purchase amount) is moved from the Capital Projects Fund to the Fire Impact Fee Fund, because the capital expenditures under the program are necessary to expand fire service to address demand attributable to new development. Total 2015 expenditure reduction is $421,000 and the total 2015 ending fund balance will be $282,360, which is $85,320 higher than the proposed budget.
Library Impact Fee Fund Expenditures:
Increase by $132,500 for library annex capital costs (moved from the Capital Projects Fund).
Capital Projects Fund Revenues:
Increase 2014 interfund revenues by $1,158,380 for the Fleet Maintenance Fund transfer, $475,000 for aerial truck fire district reimbursement, and $45,000 for additional interest earnings.
Increase 2015 interfund revenues by $385,000 for the General Fund transfer and remove $139,110 for the Fleet Maintenance transfer. Increase 2015 interest earnings by $50,000. Move $475,000 fire district vehicle reimbursement to 2014.
Capital Projects Fund Expenditures:
Reduce by $132,500 for library annex capital costs (moved to the Library Impact Fee Fund).
Add $865,000 for fleet vehicles and shop equipment due to elimination of the Fleet Maintenance Fund.
The 2015 proposed aerial truck purchase is moved to 2014 (pending a budget amending ordinance for council review in November/December 2014); the city share is $475,000 which is 50% of the $950,000 purchase price. Of the $180,000 quick car program purchases in 2015, the city's share or $54,000 is moved to the Fire Impact Fee Fund leaving $126,000 budgeted in this fund (70% or $126,000 reimbursed by the fire districts).
The 2015 Capital Projects Fund Ending Fund Balance increases by $345,770.
STAFF ANALYSIS:
A very thorough review process involved all members of the executive team to develop the 2015 budget.
FISCAL IMPACTS:
The policy questions and budget were reviewed by council and information is available at the Bemis Public Library, the City of Littleton website and the City Clerk's Office for public review.
STAFF RECOMMENDATION:
Staff recommends approving the 2015 annual appropriation ordinance on second reading.
PROPOSED MOTION:
Proposed Motion
Motion that the ordinance approving the 2015 annual appropriation be approved on second reading.