Agenda Date: 07/16/2024
Subject:
Title
Ordinance 17-2024: An ordinance on first reading of the City of Littleton, Colorado as the governing body of the City of Littleton Sewer Utility Enterprise, amending the 2024 Sewer Utility Enterprise 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 2024 budget amendment for additional 2024 funding needs.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
This ordinance includes an amendment to the Sewer Utility Enterprise Fund 2024 Budget. The attached exhibit includes a detailed list of all purposes for which funds are being encumbered.
In 2023, South Platte Renew (SPR) began the Operations Complex and Admin Building Remodel project with an anticipated completion in 2024. As part of the Joint Use Agreement between the City of Littleton and the City of Englewood, all costs are distributed equally for the project. Due to unanticipated delays, SPR returned $1,795,579.07 of unspent funds to the City of Littleton and the City of Englewood. SPR is not authorized to carry over funds across fiscal years and must return all unspent funds by year end.
For 2024, South Platte Renew is requesting supplemental funding of $1,800,000 to complete the project. Of this amount, $900,000 will be from the City of Littleton and $900,000 will be from the City of Englewood. This request was presented and approved by the South Platte Renew Supervisory Committee on June 27, 2024. These funds will primarily be from budget savings from 2023.The City of Littleton’s Sewer Utility Enterprise fund ending cash was approx. $1.5M higher than budgeted in 2023.
The supplemental budget appropriation will be used for construction costs, equipment procurement, and contractor fees for the OCAR Project. This supplemental budget will ensure the timely and successful completion of the Project in August 2024
BACKGROUND:
As part of the Joint Use Agreement between the City of Littleton and the City of Englewood Funding for the Operations Complex and Admin Building Remodel project costs are distributed equally between the two cities.
Funding for the project is the Sewer Utility Enterprise Fund. This ordinance amends the 2024 Budget to appropriate $900,000 from the Sewer Utility Enterprise Fund.
Prior Actions or Discussions
N/A
FISCAL IMPACTS:
A supplemental budget appropriation for the 2024 budget for the Sewer Utility Enterprise Fund is requested in the amount of $900,000.
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:
Option 1: Approve the amendment to the 2024 Sewer Utility Enterprise Fund budget to complete the Operations Complex and Admin Building Remodel project.
Option 2: Do not approve the amendment. SPR will need to identify another funding source or not complete the project.
PROPOSED MOTION:
Proposed Motion
I move to approve Ordinance 17-2024 on first reading of the City of Littleton, Colorado as the governing body of the City of Littleton Sewer Utility Enterprise, amending the 2024 Sewer Utility Enterprise budget and to set the second reading and public hearing for August 6, 2024.