HomeMy WebLinkAboutresolution.council.106-02 RESOLUTION NO. 106
(SERIES OF 2002)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN,
COLORADO ADOPTING THE 2003 MUNICIPAL BUDGET AND
AUTHORIZING APPROPRIATIONS PURSUANT THERETO
WHEREAS, the City Manager, designated by Charter to prepare the budget, has
prepared and submitted to the MayOr and City Council the Annual Budget for the City of
Aspen, Colorado for the fiscal year beginning January 1, 2003 and ending December 31,
2003; and
WHEREAS, in accordance with Section 9.8 of the Home Rule Charter, the
Council shall adopt the budget by Resolution on or before the final day established by
law as December 15th for certification of the ensuing year's tax levy to the county; and
WHEREAS, Article 9 of the Aspen Home Rule Charter requires the adoption of
an annual budget with the opportunity for the public to part/c/pate at a public hearing at
least 15 days prior to the statutory deadline for certification of the ensuing year's tax levy
to the county, it is the intent of the CoUncil by adoption of this budget to follow the
requirements of City Charter; and
WHEREAS, the budget as submitted in Exhibit A and B sets for the estimated
fiscal data of appropriated expenditures and estimated revenues for the calendar year of
2003.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ASPEN~ COLORADO:
SECTION 1
That the budget for the City of Aspen, Colorado for the fiscal year 2003 as submitted in
attachment hereto as Exhibit "A" and "B' and incorporated herein by this reference, be
and is hereby adopted, which option all constituted appropriations of the amoUnts
specified therein as expenditures amounting to $72,516,400 from the funds indicated in
Exhibit A: and the estimated budget revenue requirements of $77,674,357 in Exhibit B, is
hereby declared to be the amount of revenue necessary to be raised by the tax levy and
income from all other sources including fund balance at the beginning of the year, to pay
the expenses and certain indebtedness, and provide a reasonable fund balance at the close
of the fiscal year beginning January 1, 2003 and endin, g December 31, 2003.
SECTION 2
That the City Council hereby authorizes and directs the City Manager to enter into such
contracts and execute such documents on behalf&the City as may be necessary and
customary to expend the funds appropriated for all capital acquisitions within its budget,
and that Council further directs the City Manager to inform it of such contracts and
documents promptly at its regularly scheduled Council meetings.
I, KATHRYN KOCH, duly appointed and acting City Clerk of the City of Aspen,
Colorado, do hereby certify that the foregoing is a tree and accurate copy of the
Resolution adopted by the City Council at its meeting held on the 9th day of December,
2002 which resolution was adopted sulisequent to and publication of public meetings on
such proposed budget held on November 25th, 200 . ·
Kathryn Koc~City Clerk
EXHIBIT A
CITY OF ASPEN, COLORADO
2002 AND 2003 BUDGET EXPENDITURE APPROPRIATIONS
2002 AMENDED
EXPENDITURE 2003 EXPENDITURE
,FUND, NAM~ & NUMBER, , APPROPRIATIONS APPROPRIATIONS'
GENERAL FUNDS
Asset Management Plan Fund - 000 6,281,12t 2,490,097
Generar Fund - 001 t5,412,663 13,051,987
TOTAL GENERAL FUND APPROPRIATIONS $21,693,784 $15,452,064
SPECIAL REVENUE FUNDS
Parks & Open Space Fund - 100 7,903,539 6,969,765
Wheeler Opera House Fund - 120 * 7,025,535 2,133,412
ACRA Marketing/Regionat Transportation Fund - 130 755,639 717,858
Parking Improvement / Garage Fund - 140 1.566,211 1,499,180
Affordable Housing Fund. 150.23 10,620,625 7,749,263
Day Care Fund - 160.24 1,052,398 979,688
TOTAL SPECIAL REVENUE FUND APPROPRIATIONS $28,923,947 $22,069,166
DEBT SERVICE FUNDS
1995 Garage COP - 220 687,633 689,338
1992 Ute / Cemetery Lane SID Bonds - 222 139,613 146,420
1992 Redbdck GO Bonds - 223 364,920 361,880
1993 City Shop GO Bends - 224 231,935 232,330
t995 Cozy Point COP - 225 362,810 359~560
1999 Parks Sales Tax Bonds - 226 1,043,627 1,047,866
2001 Housing 6ands - 227 863,407 Enterprised in 2003
2001 Parks & Open Space Sa~es Tax Bonds - 226 770,635 864,325
TOTAL DEBT SERVICE FUND APPROPRIATIONS $4.464,780 $3,70t,719
CAPITAL PROJECT FUNDS
Open Space Acquisition CapJtaJ Fund - 340 1,952,743 3,278,946
Parks Capital Faciltiies Fund - 363 '~ 14,001,105 2,657,000
Truacott Housing Capital Facilities Fund - 364 20,998,037 2,900,000
TOTAL CAPITAL PROJECTS FUND APPROPRIATIONS $36,981,885 $6,865,948
ENTERPRISE FUNDS
Water Fund - 421 7,514.694 4,622.433
EJectdc Fund - 431 4.637.226 4.327.478
Ruedi Hydroelectric Fund - 444 1.097.024 366.439
Transporta tion/ParkJng Fund - 450 3.483.114 - 2,389,653
Golf Course Fund - 471 3.252.372 1,251.453
Truscott Housing Fund - 491 t,667,860 4,923,452
Marolt HousJn,q Fund - 492 987,370 854,962
TOTAL ENTERPRISE FUND APPROPRIATIONS $22,639,660 $18,737,870
INTERNAL SERVICE FUNDS
.C!t,/-EmpIo~/ee Health Insurance - 501 2,000,000 1,995,636
TOTAL INTERNAL SERVICE FUND APPROPRIATIONS $2,000,000 $1.995,636
TRUST AND AGENCY FUNDS
Housing Authority Operating Fund - 620 494,646 676,913
Smuggler Mountain Housing Fund - 622 48,665 53,912
Truscott LLP / Tax Credit Fund - TBD 405,093 884,497
Aspen Country Inn Fund - 527 267,340 278,655
Woody Creek Trailer Park Fund - 631 189,025 0
W/J Ranch Fund - 660 20,500 0
TOTAL TRUST & AGENCY FUND APPROPRIATIONS $1,425,269 $1,693,977
TOTAL CIT'/WIDE APPROPRIATIONS WITH TRANSFERS TO OTHER CiTY FUNDS $118,129,325 $72,516,400
(MINUS TRANSFERS-OUT) ($25,893,877) ($18,926,212)
TOTAL CITYWIDE APPROPRIATIONS EXCLUDING TRANSFERS.OUT $92,235,448 $53,590,"188
EXHIBIT B
CITY OF ASPEN, COLORADO
2002 AND 2003 BUDGET REVENUE ESTIMATES
2002 AMENDED 2003 REVENUE
FUND NAME & NUMBER REVENUE EST. ESTIMATES"
GENERAL FUNDS
Asset Management Plan Fund ~ 000 4,560,124 2,780,090
Generat Fund - 001 13,261,937 12,767,604
TOTAL GENERAL FUND REVENUES $17,~2,06'~ $15,557,694
SPECIAL REVENUE FUNDS
Perks & Open Space Fund - 100 6,133,544 8,264,296
Wheeler Opera House Fund - 120 * 2,986,198 4,252,339
ACRA Marketing/Regional Transportation Fund - 130 756,097 7'~7,857
Parking Improvement / Garage Fund - 140 1,312,994 1,336,640
Affordable Housing Fund - 150,23 * 7,655,94'1 6,662,666
Day Car.e ~:und - t50,24 1,096,226 i,08&328
TOTAL SPECIAL REVENUE FUND REVENUES $19,9~;3,000 $24,319,326
DEBT SERVICE FUNDS
1995 Garage COP - 220 667,633 689,338
t 992 Ute / Cemetery Lane BID Bonds - 222 139,613 146,420
1992 Redbrick GO Bonds -223 364,920 361,680
1993 City Shop GO Bonds - 224 231,935 232,330
t 995 Cozy Point COP - 225 362,810 359,560
t999 Parks Sales Tax Bonds - 226 1,043,627 1,047,866
2001 Housing Bonds ~ 227 863,407 Enterprised in 2003
2001 Parks & Open Space Sales Tax Bonds - 223 770,835 864,325
TOTAL DEBT SERVICE FUND REVENUES $4,464,780 $3,701,719
CAPITAL PROJECT FUNDS
Open Space Acquisition Capital Fund - 340 1,931,243 2,410,759
Perks Capita~ FacJltiiea Fund - 363 * t2,424,333 5,640,636
Truscott Housing Capital Facilities Fund - 364 14,169,834 3,217 986
TOTAL CAPITAL PROJECTS FUND REVENUES $28,545,410 $11,469,381
ENTERPRISE FUNDS,
Water Fund - 421 4,556,844 4,282,998
Electric Fund - 431 4,491,087 4,440,335
Ruedi Hydroelectric Fund - 444 647,844 808,093
Transportation/Parking Fund - 450 2,645,470 2,265,663
Golf Course Fund - 471 3,138,492 1,287,905
Truscott Housing Fund - 491 1,492,387 4,923,452
Marolt Housing Fund- 492 906,966 ~ 872,~9
TOTAL ENTERPRISE FUND REVENUES ~17,879,090 $18,580,865
INTERNAL SERVICE FUNDS,
_City-Employee Health Insurance ~ 501 2,00¢,00,0 2,341,5.95
TOTAL INTERNAL SERVICE FUND REVENUES $2,00.0,000 $2,341,~95
TRUSTAND AGENCY FUNDS
Housing Authority Operating Fund - 620 494,646 676,913
Smuggler Mountain Housing Fund - 622 46,665 53,912
Trusco[t LLP / Tax Credit Fund - TBD 405,093 684,497
Aspen Country inn Fund - 627 267,340 278,655
Woody Creek Trailer ParkFund - 631 189,025 0
W/J Ranch Fund - 660 20,500 0
TOTAL TRUST & AGENCY FUND REVENUES $1,425.269 $1,693,g77
TOTAL CITYWIDE REVENUE ESTIMATES WITH TRANSFERS FROM OTHER CITY FUNDS $92,099,610 $77,674,3~57
(MINUS TRANSFERS-IN) ($25,893,677) ($t8,926,212)
TOTAL CITYWIDE REVENUE ESTIMATES EXCLUDING TRANSFERS-IN $66 265,733 $56 748,145
Displayed appropriation levels for Wheeler Opera House, Af~rdab~e Housing and the Parks Capital FaciAies Fund include the 2002 supplemental budget ~mer~mem related to
MEMORANDUM
TO: Mayor & City Council
THRU: Steve Barwick, City Manager
Paul Menter, Finance Director
FROM: Kathleen VonAchen, Budget Director
DATE: November 21, 2003
RE: Adoption of 2003 Budget Resolution and
Certification of Property Tax Mill Levy
Resolution No. 2002-'106 and No. 2002-107
SUMMARY: Tonight's agenda provides for the Public Heating for the 2003 Budget and the
2003 Mil( Levy Certiification as required by the City Charter. Since the Budget is adopted by
resolution, no vote is required tonight, our only business is to hold the Public Hearing. The
Budget Resolution and Mill Levy will be before the City Council for formal approval at the
December 9th Council Meeting.
Formula Based Budget: The 2003 budget has been prepared with departmental base
operating budget increases allowed only in salaries and wages, 3% over the current 2002 fiscal
year labor base budget. Services and supplies cost categories were held fiat at current year
appropriated levels.
Sales tax receipt downtums since 2000 have precipitated reductions in operating expenditures
in those funds reliant on sales tax revenue (General Fund, Parks Fund, Open Space Fund,
Parking Improvement Fund, and the Affordable Housing / Day Care Fund), Further, general
economic indicators supported aPPlying restrictions on budgeted expenditures to all the City's
funds, not just those funds receiving sales tax revenue. As a result, the 2003 budget request
parameters were applied to all the City funds,
Capital projects were held to only those projects in which it is necessary to proceed to meet
priority demands. The 2003 budget fulfills of the City's debt and fiduciary responsibilities and
allows for an appropriate level of operating reserves in each of the funds. The 2003 Budget
Resolution is attached.
Details of the 2003 Budget are contained in Exhibits A and B of the Budget Resolution.
The following are the main points to be covered at this public hearing;
I. BUDGET OVERVIEW
This table outlines the budget's general categories. Further detail is discussed in the section 2
through 8.
ESTIMATED BUDGET
2002 2003
Revenues
Revenues-General $66,205,733 $58,748,145 -11%
Transfers-In from City Funds $25,893,877 $18,926,212 -27%
Total Revenues $92,099,610 $77,674,357-15.7%
Operatin.q BudRet*
Net Operating Budget $39,886,709 $32,979,055 -17%
Debt 6,420,222 $5,842,413
Capita} (AMP) $45,928,517 $14,768,720 -68%
Transfers-Out to City Funds $25,893,877 $18,926,212 -27%
Total Expenditures $118,129,325 $72,516,400 -32%
*Net of County Payment
Revenues are estimated to exceed expenditures in 2003 from the budgeted 2002 level due
to reductions in capita{ spending and land acquisitions. The Affordable Housing/Daycare
and Parks funds constitute 62%, or $9.1 million, of the City's 2003 $14.8 million capital
projects budget, in 2002, the Aspen Recreation Center Pool/Ice Rink capital project drew
near completion, a new Golf Clubhouse was completed and opened, and the Truscott Place
Housing Expansion was occupied. These projects were budgeted at $35 million of the $46
million in citywide capital projects in 2002.
With revenues exceeding expenditures, the 2003 Budget provides for the preservation of
accumulated balances in a{I the City's funds. Each Fund exceeds target cash reserve levels.
2. REVENUES*
Sales Tax Revenue: $12,286,223 21% of net total City revenue.
2003 sales tax is budgeted at a 5% reduction from the 2002 revised estimate. The 2003
sales tax revenues are projected to be 9.75% under 2001 actual receipts, of $13,613,547.
Four different City funds have dedicated sales tax revenues - the General Fund which is
allocated the City's share of the county-wide 2% sales tax for general governmental
purposes; the Parks and Open Space Fund with a 1.5% sales tax for park
development/maintenance and the acquisition of open space; a 0.25% sales tax for the
· Parking Improvement (Garage) Fund for the purpose of paying down its bonded
indebtedness, and the Affordable Housing and Day Care Fund, of which these two functions
share a 0.45% sales tax to assist in funding their specific initiatives.
Property Tax Revenue: $4,299,994 7.3% of net total City revenue.
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The 2003 property tax is budgeted at 5,401 mills. Preliminary estimates are based on a 2%
increase from the 2002 budget estimate. More information of the City's property tax is
provided in section 7, This revenue source funds the general govemmerital functions of the
City with the operating General Fund budget receiving 23% of the total property tax revenues
and the City's Asset Management Plan receiving the remaining 77%.
General Fund Department Revenues: $4,497,855 7.7% of net total City revenue.
Sixteen separate departments within the City's General Fund collect revenues, such as fees
for services, fines, franchise fees, licenses, building and zoning impact fees, plan reviews, all
in the performance of the departments' specific mandates per Council approval. These
departments were encouraged to estimate revenues conservatively this year -- within a 3%
increase parameter unless a specific reason or expected event required a different
estimated value. Over $1.14 million in new revenues to the City are estimated in 2003
resulting from the opening of the new Aspen Recreation Center. While the Community
Development Department collected 30% of the city's general fund "departmental revenues"
in 2001, the Police Department only collected 4%.
Real Estate Transfer Tax Revenue: $5,460,481 9.3% of net total City revenue.
Two City funds have authority to assess this tax. The 2003 Wheeler Opera House real
estate transfer tax (RETT) was budgeted at a 1% increase from the 2002 revised estimate.
Affordable Housing Fund's RETT was estimated to be reduced from 2002 estimates by 8%.
Each of these respective taxes are separately authorized by voters to fund different functions
-- cultural and arts initiatives and affordable housing. The Affordable Housing RETT is an
assessment paid by the seller of 1.0% on the sale price of real estate transfers, while the
Wheeler RETT is a half-cent assessment.
Enterprise Fund Revenue: $14,372,729 24% of net total City revenue.
2003 is budgeted at a 3.9% increase over estimates for 2002. This increase is due to the
Truscott Place transfer required as part of the construction loan financing. All other
enterprise funds revenue estimates remain relatively flat or decrease for 2003.
Capital Projects Revenue: $5,132,900 8.7% of net total City revenues.
2003 is budgeted to receive revenues for the capital project financing of the Aspen
Recreation Center and open space land acquisition. Estimated Aspen Recreation Center
capital project private donations have been delayed from the odginal revenue estimate and
are expected to be received in 2003 and 2004..
All Other Revenues: $12,697,963 22% of net total City revenue.
These remaining revenues are found in the special revenue funds in parks and tree
mitigation / impact fees, intergovernmental grants and payments, reimbursements by private
third-parties for the cost of services rendered by the city, rental and lease revenues,
investment interest earnings of the City's idle cash funds, the lodging tax, parking garage
revenues, and revenues funneling into the City's self-funded employee health insurance
benefit fund made up of both payments from the City as an employer and the employees
subscribed under the health plan.
*"Net Total City Revenue" amounts to $58.7 million in 2003. All transfers-in from other City
funds amount to $18.9 million, bringing 2003 revenues to a total of $77.7 million.
3. OPERATING BUDGET EXPENDITURES
Formula based operating budget: 2002 operating expenditures were originally budgeted
at a 4% increase from the 2001 Budget, however with the decline in sales tax revenue in
2001, all departments were requested to determine what operating expenditures could be
reduced in mid-year and several positions were taken from the 2002 budget as positions
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were left vacant or eliminated. For the 2003 budget request, all City funds were required to
only increases their base budget for salaries and wages requests by 3% over the 2002 base
for labor and no increase for supplies and services appropriations. Current year department
efforts to "tighten the belt" resulted in 11 staff positions eliminated during 2002 and 2003.
Supplemental Requests: Supplemental requests above the base budget formula
increases were discouraged, resulting in only two one-time supplemental requests (both in
the general fund) of which were recommended by the City Manager. These two one-time
supplemental requests were discussed by Council in a budget work session, both one-time
adjustments:
General Fund:
Police: $16,000 De-Tox Per Diem Rate Charges
Planning $50,000 Economic Sustainability Consulting and Professional Fees to
continue the special project work accomplished in 2002.
Balanced General Fund Budget: In 2001 the General Fund had a healthy estimated cash
over reserves balance of $3.0 million. Debt service payments on the Cozy Point Certificates
of Participation, principal value due of $2,800,000, were moved per Council approval from
the General Fund to the Parks and Open Space Fund in 1999. A four-year repayment to the
General Fund by the Parks Fund of the Cozy land acquisition began in 2000. Also, revenue
proceeds from the finalization of the financial agreement with the Castle Ridge property in
2002, amounting to over $700,000, further improved the cash position of the General Fund in
these previous years; The result was the General Fund's enhanced ability to assist in the
funding of several significant capital improvement projects in 2001 and 2002. The most
important factor in maintaining the General Fund's health was the zero-based budget
instituted in 2000 and the conservative expenditure budget authority requested in this 2003
budget. Given Aspen's recent economic performance, a continued conservative fiscal
approach in the future is expected.
4. ASSET MANAGEMENT PLAN - CAPITAL PROGRAM
The total citywide asset management plan / capital projects budget for 2003 is down from
2002 and 2001. Compared with spending over the past decade, both 2001 and 2002 capital
expenditures were historically high.
Yea.r AMP / Capital Budget
1994 3,896,703
1995 5,058,582
1996 8,542,349
1997 17,377,906
1998 16,480,550
1999 25,443,943
2000 10,291,931
2001 42,257,089
2002 45,928,517
2003 14,768,7,2¢
10-Yr Total $190,046,290
Capital requirements for the future are detailed in the City Asset Management Plan (AMP),
which is developed each year under the guidance of a citizen advisory board, the Asset
Planning Committee. By the end of 2003, the City of Aspen will have completed a decade-
long program of refurbishment, replacement, and expansion of capital assets. Future year
capital budgets are likely to be significantly lower than in the past several years.
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The City has been able to fund a high level of needed capital improvements and acquisitions
through the use of accumulated cash balances over reserves and the issuance of debt in
both 1999 and 2001. The Parks and Open Space Fund's issuance of $12 mitlion in 1999 and
another $10.8 million in 2001 contributed to a substantial amount of capital improvement
activity in the City the past years. Over $13 million in debt was also issued in 2001 for
affordable housing construction, in 2003, the citywide AMP budget decreases by 68% to
$14,768,720. The following are some of the major 2003 City capital projects:
General Fund
· City Hall, 3rd Floor Remodel / HVAC: $250,000
· street Improvement and Pedestrian Enhancements: $184,543
Parks Fund
· Cemetery Lane / Trail Development - Phase I1:$1,400,000
· Tie-Hack Pedestrian Bridge Completion: $822,000
Affordable Housing
· Burlingame- Parcel D Property Housing Construction: $4,000,000
· Burlingame Village-Phase I Expanded Housing Construction: $2,042,000
Open Space Acquisition Fund
· Various Trail Development Projects: $550,000
Water Fund
· Treated Water Distribution & System Map: $298,000
Electric Fund
· Electric Citywide Undergrounding Project: $439,000
· Electric Distribution / Energy Conservation: $95,000
Street Lights; $90,000
Transportation Fund
· RFTA Vehicle Replacement: $153,000
Complete details of the City's 2003 Asset Management Plan are contained in the AMP
budget document, available from the City Manager's Office.
5. DEBT
The 2003 debt service payment appropriation of $5,842,413 is 9% lower than the estimated
2002 of $6,420,222. This is largely due to the Electdc and Ruedi funds' debt obligation
being paid off in 2002.
6. FUND CASH BALANCES
City funds are in excellent condition with estimated ending 2003 cash balances surpassing
targeted reserves. These target reserves, two months c~f operating expenses, are sufficient
to provide the City with a comfortable cushion against any possible shortfall in revenues for
the foreseeable future.
7. 2003 MILL LEVY AND PROPERTY TAX BUDGET
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The City of Aspen's TABOR instituted mill levy limit is 5.401 mills. By City Council policy,
4.151 mills (77%) are designated to the General Fund Asset Management Plan. The
preliminary 2003 assessed valuation of $786,791,340 is only a 1.2% increase over the 2001
of $777,223,990. Every other year the County Assessor's Office reappraises property
values. This 2002 valuation is the result of this year's completed reappraisal.
In November 2000 City voters authorized the TABOR property tax revenue excess to assist
in the funding of the Aspen Recreation Center construction project through 2005.
8. CONTRIBUTIONS
The total 2003 budget for City contributions to private non-profits and related to the arts,
human services and community service groups decreased over 2002's budget of $1,684,542
due to the suspension in 2003 of the special one-time awards totaling $100,0000 from the
Wheeler Opera House Fund.
PROPOSED MOTION: Adoption of Resolution #2002-106 and the #2002-107 will approve
the 2003 Budget Resolution and Certify the 2003 Mill Levy.
CITY MANAGER COMMENTS:
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