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HomeMy WebLinkAbout12aiv CB57 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Kevin Engels DEPARTMENT: Finance DATE: October 6, 2025 SUBJECT: 2026 Budget Ordinances First Reading (South Platte Renew 2026 Budget) DESCRIPTION: 2026 Budget Ordinances First Reading (4 of 5) RECOMMENDATION: Staff recommends City Council approve the fourth of five Ordinances for the South Platte Renew 2026 Budget PREVIOUS COUNCIL ACTION:  January 25, 2025 - City Council Vision and Goal Setting Workshop  April 7, 2025 - Preliminary Budget Assumptions discussed for the 2026-2030 (5-Year) Period  April 14, 2025 - Review Preliminary 2026-2030 Capital Projects List in a Joint Meeting with City Council, Planning and Zoning Commission and Budget Advisory Committee  June 23, 2025 - Staff discussed with Council the preliminary 2026 operational and capital budget priorities and initiatives.  July 28, 2025 - Staff Mid-Year Review of the 2025 Capital Items of the Capital Improvement Plan (CIP).  August 11, 2025 - Staff discussed with Council the draft proposed 2026 operational and capital budget.  September 15, 2025 - 2026 Budget Public Hearing - Staff presented changes to the proposed 2026 operational and capital budget since the August 11, 2025 Study Session with City Council. City Council supported the $200K funding request increase to the Public Improvement Fund Neighborhood Traffic Calming and Pedestrian Safety Program changing the funding estimate from $250K to $450K.  September 22, 2025 - Staff brought forward the list of capital items City Council had mentioned during the Budget Public Hearing that could be funded with the $400K made available with the Donors Fund contribution of $600K for the Little Dry Creek Plaza Improvement Project. o City Council supported the following additional projects for inclusion in the 2026 capital budget: Sidewalk Gap Construction Program ($200K), Walk and Wheel Implementation Program ($140K), Neighborhood Traffic Calming and Pedestrian Safety Improvements Program ($50K) and Emerald Ash Borer Grant Program ($10K). o Additionally, the replacement of the Englewood and Malley Senior Recreation Doors will also be included and funded at $60K each in the Capital Projects Fund Page 634 of 1257 and the Conservation Trust Fund, respectively. In the meantime, City Council has directed staff to request that the Malley Senior Recreation Door Replacement be funded through the Malley Senior Recreation Trust Fund with a 2026 budget supplemental. SUMMARY: The budget and appropriation ordinances are provided administratively as they are not required by the State of Colorado Budget Law. Definition of Reporting Entity The Cities of Littleton, Colorado (Littleton) and Englewood, Colorado (Englewood), participate in the South Platte Renew's Joint Venture (the Joint Venture) for the operation of a wastewater treatment facility. Control of the Joint Venture rests in a four-member committee, with two members appointed by each city. Littleton and Englewood each own a 50 percent interest in the Joint Venture. The Joint Venture has its own workforce for operating purposes. For payroll and pension participation, the joint venture’s workforce is considered to be City of Englewood employees. Englewood provides the Joint Venture with administrative services on a cost reimbursement basis. The accounting policies of the Joint Venture conform to generally accepted accounting principles as applicable to governmental units accounted for as a proprietary enterprise fund. The enterprise fund is used since the Joint Venture's powers are related to those operated in a manner similar to a private utility system where net income and capital maintenance are appropriate determinations of accountability. Budget The Joint Venture does not have nor is it anticipated to ever have the power to assess an ad valorem tax on the property of the participating cities. Accordingly, it is management's contention that this would remove it from the scope of the State of Colorado Budget Law. Each of the joint venture participants is a public entity and makes an appropriation of expenditures within their respective budget to cover their proportionate share of anticipated costs of construction and operations. Reimbursement of Operating Expenses Variable operating expenses are shared by the joint venture participants based on actual usage of the facility and fixed operating expenses, excluding depreciation, are shared equally. Additionally, in accordance with the Joint Venture Agreement, Littleton pays an administration fee to Englewood equal to 3% of operating expenses. Capital and Fixed Operation and Maintenance Costs Contributions The joint venture participants share equally capital and fixed operations and maintenance expenses. ANALYSIS: The South Platte Renew (SPR) 2026 Budget was developed over the past several months with significant collaboration between the Supervisory Committee, the Joint City Councils, and City staff. This year's budget process leveraged our collective capacity to deliver quality services, enhanced public safety, and improved infrastructure. The Sewer Funds of the cities of Littleton Page 635 of 1257 and Englewood respectively contain budgeted funds that provide the financial support for the SPR 2026 budget. COUNCIL ACTION REQUESTED: Staff supports the 2026 Budget and is looking forward to the direction of the Supervisory Committee and the Joint City Councils in developing future budgets. FINANCIAL IMPLICATIONS: Please review the South Platte Renew budget document using the following link: https://www.englewoodco.gov/government/city-departments/finance/budget-and-financial- reports/budget-reports. CONNECTION TO STRATEGIC PLAN: First reading of the 2026 budget ordinances supports the Strategic Plan Governance result/outcome  Governance - A city government that serves the community by being efficient, effective, accountable, and adaptable OUTREACH/COMMUNICATIONS: Staff presented the SPR's 2026 Budget to the the Supervisory Committee and the Joint City Councils and the input received helped shape the provided budget. The annual 2026 Budget Public Hearing held on September 15, 2025 provided an opportunity for public comment regarding the operational and capital budgets. ATTACHMENTS: CB # 57 - SPR 2026 Budget Page 636 of 1257 Page 1 of 2 ORDINANCE NO. ____ COUNCIL BILL NO. 57 SERIES OF 2025 INTRODUCED BY COUNCIL MEMBER _______________ A BILL FOR AN ORDINANCE ADOPTING THE BUDGET FOR THE SOUTH PLATTE RENEW FOR FISCAL YEAR 2026. WHEREAS, a public hearing on said budget was held by the City Council within three weeks after its submission on September 2, 2025. The hearing was held at the meeting of City Council on September 15, 2025, regular notice of the time and place of said hearing having been published within seven days after the submission of the budget in the manner provided in the Charter for the publication of an ordinance; and WHEREAS, pursuant to the provisions of an agreement between the City of Littleton, Colorado, and the City of Englewood, Colorado, a budget for fiscal year 2026 was provided to the South Platte Renew Supervisory Committee at their regular meeting of July 24, 2025; and WHEREAS, pursuant to the provisions of an agreement between the City of Littleton, Colorado, and the City of Englewood, Colorado, a budget for fiscal year 2026 was presented at a joint meeting of the City Councils of both Cities held on August 21, 2025; and WHEREAS, the City Council of the City of Englewood, as the administering authority for the South Platte Renew, has studied the budget on numerous occasions; and WHEREAS, it is the intent of the City Council to adopt the 2026 budget for the South Platte Renew as now submitted. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: Section 1. That the budget of the South Platte Renew for fiscal year 2026, as submitted by the South Platte Renew Supervisory Committee and duly considered by the City Council after public hearing, is hereby adopted as the budget for the South Platte Renew for the fiscal year 2026, as follows: South Platte Renew Fund Balance – January 1, 2026 $115,674 Revenues $40,988,565 Expenditures $40,988,565 Fund Balance – December 31, 2026 $115,674 Section 2. That the said budget as accepted shall be a public record in the Office of the City Clerk and shall be open to public inspection. Sufficient copies thereof shall be made Page 637 of 1257 Page 2 of 2 available for the use of the City Council and the public, the number of copies to be determined by the City Manager. Section 3. General Provisions Applicable to this Ordinance The following general provisions and findings are applicable to the interpretation and application of this Ordinance: A. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder of this Ordinance or its application to other persons or circumstances. B. Safety Clauses. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Englewood, that it is promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. This Safety Clause is not intended to affect a Citizen right to challenge this Ordinance through referendum pursuant to City of Englewood Charter 47. C. Publication. Publication of this Ordinance may be in the City’s official newspaper, the City’s official website, or both. Publication shall be effective upon the first publication by either authorized method. D. Actions Authorized to Effectuate this Ordinance. The Mayor is hereby authorized and directed to execute all documents necessary to effectuate the approval authorized by this Ordinance, and the City Clerk is hereby authorized and directed to attest to such execution by the Mayor where necessary. In the absence of the Mayor, the Mayor Pro Tem is hereby authorized to execute the above-referenced documents. The execution of any documents by said officials shall be conclusive evidence of the approval by the City of such documents in accordance with the terms thereof and this Ordinance. City staff is further authorized to take additional actions as may be necessary to implement the provisions of this Ordinance. Page 638 of 1257