Title
Ordinance No. 19-60 amending Ordinance No. 18-118 (2019 Appropriation Ordinance) for a supplemental appropriation to the Colorado Springs Airport Capital Improvement Program fund in the amount of $2,700,000 for Airport Land Development and the Airport Master Plan
Presenter:
Charae McDaniel, Chief Financial Officer
Troy Stover, Assistant Director of Aviation
Body
Summary:
The attached ordinance is a supplemental appropriation to the Airport Capital Improvement Program (CIP) Fund in the amount of $2,700,000 for two (2) projects. The additional costs associated with Airport Land Development include land sale demonstrable costs, site development, and infrastructure. The Airport Master Plan will begin development in 2019, ahead of its originally scheduled start date of 2022, and a draft scope of work is attached (Exhibit A). The following amounts are needed for each of the two projects:
Airport Land Development $2,500,000
Airport Master Plan $200,000
Total Projects $2,700,000
Background:
Colorado Springs is the second most populous city in the state and boasts a thriving community and extensive business reach. Residential and commercial development in and around the city has been growing rapidly. Business opportunities have been presenting themselves to the Airport at an unprecedented rate. While the Airport does its best to anticipate capital projects during the normal budget process, some development costs are completely unknown and unanticipated. In order to keep up with development opportunities and respond in a timely manner, it is necessary and prudent for the Airport to request additional spending authority when development expenses are known or anticipated, regardless of the budget cycle. The aforementioned costs were unknown at the time of the original 2019 budget development.
Previous Council Action:
On November 27, 2018, City Council approved the original 2019 budget per Ordinance No. 18-118 (2019 Appropriation Ordinance).
Financial Implications:
The supplemental appropriation increases the 2019 Airport CIP Fund expenditure budget by $2,700,000. The source of funds is available Airport CIP fund balance.
City Council Appointed Board/Commission Recommendation:
The Airport’s strategic initiatives are regularly presented to the Airport Advisory Commission for public input. The Airport Advisory Commission has been briefed on this strategy.
Stakeholder Process:
Along with the presentation to the AAC, the Airport routinely coordinates approval and funding of development projects with the FAA, the Metropolitan District, required City Agencies, and the public when permissible, some details may be reserved for a closed session when business agreements dictate. In fact, the scope of work outlined for the Master Plan development includes a task specific to educating the public on the Airport’s long-term vision.
This request was discussed with the City Council Budget Committee at the August 13, 2019 meeting.
Alternatives:
Without approval to expend development costs, projects would need to be halted and partnerships and agreements would be breached. This would have a negative impact on the existing projects that are already underway and on projects that are currently being negotiated, not to mention the impact to the community which stands to benefit immensely from the jobs creation, tax levies and ripple effects of the incoming businesses.
Recommended Action
Proposed Motion:
Move approval of a supplemental appropriation to the Colorado Springs Airport Capital Improvement Program fund in the amount of $2,700,000 for Airport Land Development and the Airport Master Plan
Summary of Ordinance Language
An ordinance amending Ordinance No. 18-118 (2019 Appropriation Ordinance) for a supplemental appropriation to the Colorado Springs Airport Capital Improvement Program fund in the amount of $2,700,000 for Airport Land Development and the Airport Master Plan