Title
Ordinance No. 23-45 amending Ordinance No. 22-90 (2023 Budget Appropriation Ordinance) for a supplemental appropriation to the Public Safety Sales Tax (PSST) Fund in the amount of $2,000,000, and to the General Fund in the amount of $1,000,000, for additional capital costs for construction of Fire Station 24 and remodel of an existing fire station in Colorado Centre that will become Fire Station 25; and to the Capital Improvements Program (CIP) Fund in the amount of $1,000,000 for the transfer from the General Fund to the Fire Station 24 existing project account
Presenter:
Chris Fiandaca, City Budget Manager
Randy Royal, Fire Chief
Body
Summary:
The attached Ordinance is a supplemental appropriation to the Public Safety Sales Tax (PSST) Fund in the amount of $2,000,000 and to the General Fund in the amount of $1,000,000 for additional capital costs associated with the construction of Fire Station 24 and the remodel of an existing fire station in Colorado Centre, which will become the City of Colorado Springs’ (City) Fire Station 25. The General Fund amount of $1,000,000 will then be transferred to the CIP Fund and into the existing project for the construction of Fire Station 24, that was originally funded for $8.5 million in the 2022 budget.
Background:
Fire Station 24 will be located near the intersection of Highway 83 and Interquest Parkway on the Northeast side of the City. It was initially funded in the 2022 Budget for $8,500,000. Due to rising costs of construction, materials and equipment since the time this project was budgeted, additional funding in the amount of $2,550,000 is needed. The land has been purchased and planning/design is underway. The expected completion date is Q4 of 2024.
Fire Station 25 will be located in the Southeast part of the City, at an existing fire station in Colorado Centre. An IGA between the City and the Colorado Centre Metropolitan District was executed in March 2023, for the City to assume operation of that fire station in January 2024 and pay for most of the costs to remodel. The City’s share of the remodel is approximately $2.2 million and was budgeted in 2023, of which $800,000 was funded in PSST, $1 million in the General Fund, and the remaining $400,000 from the now inactive Banning Lewis Ranch fund, originating as developer fees collected for public safety infrastructure. Due to rising costs of construction, materials and equipment, an additional $820,000 is needed to complete this project, of which $370,000 will be covered by existing PSST budget, and $450,000 from this supplemental appropriation. The remodel is currently in the design and permitting phase, and the expected completion date is Q4 of 2024.
Previous Council Action:
On December 13, 2022, City Council approved the 2023 budget per Ordinance No. 22-90 (2023 Budget Appropriation Ordinance), which included the appropriation of funds for the PSST Fund and the General Fund, and included $2.2 million of funding for the remodel of Fire Station 25.
On December 14, 2021, City Council approved the original 2022 Budget per Ordinance No. 21-112, which included the funding of $8.5 million in the General Fund, transferred to the CIP fund, to construct Fire Station 24.
Financial Implications:
This supplemental appropriation increases the 2023 PSST expenditure budget by $2,000,000. The source of these funds is the PSST available fund balance, related to revenue that exceeded budget in 2021 and 2022. When fund balance accumulates in the PSST fund, a one-time draw is allowed for both the Police and Fire departments, which they share proportionally, and is typically budgeted during the annual budget process. In this case, we are requesting that the Fire Department take their one-time draw in 2023 that would have been available to them in the 2024 Budget. The proportional share of the PSST fund balance will still be available to the Police Department in 2024 and will be budgeted accordingly.
This supplemental appropriation also increases the 2023 General Fund expenditure budget by $1,000,000. The source of these funds is the General Fund available fund balance. After this supplemental appropriation, the General Fund available fund balance will be 20%.
This supplemental appropriation also increases the 2023 Capital Improvements Program (CIP) Fund in the amount of $1,000,000, for the increased funding in the existing Fire Station 24 construction project budget. The source of these funds is a transfer from the General Fund.
City Council Appointed Board/Commission/Committee Recommendation:
The City Council Budget Committee reviewed this supplemental appropriation request at the meeting on July 11, 2023. There were questions about the increased costs and whether this was the highest priority for utilizing funding from the reserves. Increased costs are related to inflation and these projects are a high priority, as they are under way, have already received funding in prior years, and are necessary because of growth and development in those areas. There was also a question about the PSST current fund balance which is currently 28.6%.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Approve the supplemental appropriation to the PSST Fund in the amount of $2,000,000, and to the General Fund in the amount of $1,000,000 for additional capital costs associated with the construction of Fire Station 24, and remodel of an existing fire station in Colorado Centre that will become Fire Station 25; and to the Capital Improvements Program (CIP) Fund in the amount of $1,000,000 for the transfer from the General Fund to the Fire Station 24 existing project account.
Summary of Ordinance Language
An ordinance amending Ordinance No. 22-90 (2023 Budget Appropriation Ordinance) for a supplemental appropriation to the Public Safety Sales Tax (PSST) Fund in the amount of $2,000,000, and to the General Fund in the amount of $1,000,000, for additional capital costs for construction of Fire Station 24 and remodel of an existing fire station in Colorado Centre that will become Fire Station 25; and to the Capital Improvements Program (CIP) Fund in the amount of $1,000,000 for the transfer from the General Fund to the Fire Station 24 existing project account