Council Finance Committee & URA Finance Committee
Agenda Planning Calendar 2015
RVSD 08/18 mnb
Aug 24
CFC
TOPIC
TIME
WHO
2016 Budget Revisions
60 min
L. Pollack
Use Tax Utilization Policy - Discussion
30 min
T. Storin
Sales Tax on Cloud/Internet Products
20 min
P. Streeter
Woodward Rebate – Discussion to Submit to Council
5 min
M. Beckstead
URA
Sep 21
CFC
TOPIC
TIME
WHO
Annual Adjustment Ordinance (clean-up) Review
15 min
L. Pollack
Long Term Financial Planning - Update
30 min
A. Gavaldon
Natural Gas Franchise
15 min
A. Gavaldon
Policy Updates – Metro District & Pension Funding
30 min
J. Voss
Sales Tax Code Changes
15 min
M. Beckstead
URA
Oct 26
CFC
TOPIC
TIME
Downtown Parking Structure Financing
30 min
Sales Tax Recapture – review opportunities
30 min
WHO
M. Beckstead
J. Birks
M. Beckstead
J. Birks
URA
Nov 16
TOPIC
Strategic Risk Assessment
CFC
URA
Future Council Finance Committee Topics:
Revenue Diversification - Sales Tax on Services, Admissions Tax,
Future URA Committee Topics:
TIME
30 min
WHO
A. Gavaldon
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
AGENDA
Council Finance & Audit Committee
August 24, 2015
10:00 a.m. - Noon
CIC Room – City Hall
Approval of the Minutes from the July 20, 2015 meeting
1. 2016 Budget Revisions
60 minutes
L. Pollack
2. Use Tax Utilization Policy - Discussion
30 minutes
T. Storin
3. Sales Tax on Cloud/Internet Products
20 minutes
P. Streeter
4. Woodward Rebate – Discussion to Submit
to Council
5 minutes
M. Beckstead
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Council Audit & Finance Committee
Minutes
07/20/15
9:30 – 11:30 p.m.
CIC Room
Council Attendees:
Mayor Wade Troxell, Gerry Horack, Ross Cunniff
Staff:
Darin Atteberry, Jeff Mihelich, Mike Beckstead, John Duvall, John Voss, Josh Birks, Travis Storin,
Andres Gavaldon, Noelle Currell, Nancy James
Others:
Keith Smith – McGladrey, LLP
Matt Robenalt, Downtown Development Authority
Jennifer Hensley, Downtown Development Authority
APPROVAL OF MINUTES
Gerry Horack made a motion to approve the June 23, 2015 Council Finance Committee minutes. Wade Troxell
made a second to the motion. The minutes were approved unanimously.
Mike made a note about the calendar in relation to Council member Overbeck’s question about the taxes
related to Cloud services. Mike stated that this will be brought before Council in August.
AUDITOR’S REPORT
Travis presented the 2014 Comprehensive Annual Financial Report (CAFR) document. Mike stated that he
would like to see the CAFR completed by April 30th in future years. The City received an unqualified, or clean
opinion from McGladrey; however, there are a few internal control issues that will need to be addressed. These
control issues are of the lowest severity on the scale set by generally accepted auditing standards. Travis will
report back to CFC in October to share the corrective action plan for these items.
Kevin Smith from McGladrey presented the results from the 2014 audit. The report covers the audit of the basic
financial statements and compliance of the City of Fort Collins for year-end December 31, 2014.
Kevin stated that the findings related to the Financial Statement Audit are as required to be reported in
Accordance with Generally Accepted Government Auditing Standards. There were no findings identified related
to Federal grants in the Compliance Report. Financial misstatements identified by the auditors that were
deemed immaterial for adjustment, misstatements identified by the auditors that were corrected by the City,
and control deficiencies identified by the auditors can be found in the Report to the City Council, Exhibit A. Staff
will provide a written response to the audit findings and misstatements at the October Council Finance
Committee meeting.
Travis indicated he will be taking corrective action to the items that came across in the audit regarding year end
statements.
Wade asked Mike to respond to the items of deficiency identified in the audit. Mike stated that he would like to
put them into context first. There has been a complete turn-over in the accounting department within the last
year, with the exception of John Voss. Mike further stated that it has been a challenging year in Accounting, and
that they have learned a lot through the process. Overall he is pleased with the outcome of the audit, given the
knowledge loss that the department had. One of the things we learned from that turn-over is to do a better job
of having a job task sheet for each desk outlining all the specifics requirements and tasks of the job, to include
the close process. Travis stated that the list is a nice road-map where we want to be spending our time for the
remaining six months of the year.
DDA BOND INTEREST ADJUSTMENT
Matt Robenalt – Downtown Development Authority Executive Director and Jennifer Hensley, Downtown
Development Authority (DDA) Financial Coordinator presented a consideration of an amendment to the
Downtown Development Authority’s 2010 bond series reducing the spread on the rate adjustment date.
The DDA’s 2010 bond series is set for a rate adjustment at the 5-year mark in 2015. Great Western Bank, the
bond series purchaser, has offered a rate reduction resulting in an estimated savings of $143,000 in interest
expense over the remaining 5 year life of the bonds.
This adjustment would be executed through an amendatory ordinance, Series 2010A (Taxable Tax Increment
Revenue Bonds) and Series 2010B (Tax-Exempt Tax Increment Revenue Bonds). Currently these bonds are to
reset at 4.5% over the 5 year U.S. Treasuries, the amendments would reduce the spread on the two series to
3.5% over the 5 year U.S. Treasuries on Series 2010A and 4.25% on Series 2010B.
2010 Bond Series
Prior to Reset (First 5
years)
Without Amendatory
Ordinance
With Amendatory
Ordinance
Series 2010A: Taxable Bond
4.5% over 5-year US Treasuries
(6.08%)
4.5% over 5-year US Treasuries
3.5% over 5-year US Treasuries
2
Series 2010B: Tax Exempt Bond
4.5% over 5-year US Treasuries multiplied by
0.66 (4.01%)
4.5% over 5-year US Treasuries multiplied by
0.66
4.25% over 5-year US Treasuries multiplied by
0.66
Current Status: Issued September 21, 2010 for $12,500,000. Interest rate fixed for the first five years is 4.5%
over the 5 year U.S. Treasuries; Series 2010A – 6.08%, 2010B – 4.01%. Issued for various TIF investments,
culture and arts funding, grants and funding to the City, & DDA programs and projects. Current balance =
$9,140,000; final payment December 2020.
CFC approved the request; Mike will include this on the August 18th consent agenda for Council.
PENSION LIABILITY FUNDING
The GERP is a retirement program for employees hired before January 1, 1999. Less than 7% of active
employees continue to earn benefits under this program. Plan assets are held in trust and had a market value of
$45.7 million at 2014 year end. The pension liability was $57.8 million, leaving a Net Pension Liability (NPL) of
$12.1 million. Under current assumptions and funding commitments the plan is forecasted to be fully funded by
2028. Discussion revisited the current funding commitment and considered whether or not to accelerate closing
the gap.
Recent Major Assumption Changes:
• Investment Return
o 7.5% through 2010
o 6.8% 2011-2012 ($3.7M increase to UAL)
o 6.5% beginning 2013 ($1.6M increase to UAL)
• Mortality Tables
o In 2010 updated to most recent actuarial industry standard ($1.3M increase to UAL)
o In 2014 applied generational scaling ($830K increase in UAL)
• Increased Supplemental Contribution to $1.12M in 2013
Residual Pension Dollars:
• After all beneficiaries are paid, the remaining monies will be refunded to the City.
o Article XIV, Section 6 of the Plan
• Last Payment about 2065
o Youngest active member is between 35-39
The funding alternatives are:
• Fully fund over the next few years with available revenue
• Increase annual supplemental
o Develop policy parameters on when to change and how to set amount of supplement
• Stay the course of $1.12M supplemental contribution each year
Gerry asked where the number of $1.12M supplemental came from. Mike stated that it was partially driven by
affordability in what we could do inside of the budget. Some discussion took place regarding the
implementation of a set strategy/policy to relieve vulnerabilities for employees, citizens, and investors.
3
Staff will take the action to develop a policy consistent with current practice that presents a target level of
funding over a period of time, a threshold for when they may rethink what the supplemental income may be;
and in times of dramatic market downturn, will have a conversation about additional supplemental that is put
into a separate fund to be set aside.
Other Business
None
Meeting Adjourned at 10:24 a.m.
4
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Mike Beckstead, Chief Financial Officer
Lawrence Pollack, Budget and Performance Measurement Manager
SUBJECT FOR DISCUSSION
2016 Budget Revision Recommendations
EXECUTIVE SUMMARY
The purpose of this agenda item is to familiarize and seek feedback from the Council Finance
Committee with the City Manager’s recommended revisions to the 2016 Budget before the
recommendations are reviewed at the September 22 Council Work Session and then the
Appropriations Ordinance goes to first reading on November 3 and second reading on November 17.
Summary of Available Funding
Summary of Available Funding
$ in Millions
Sales & Use Tax
Property Tax
Street Maintenance 1/4 Cent
Utilities - Use of Reserves
Unassigned 2014
BCC Excess
Benefits Fund Revenue Depts
TOTAL
General General
Fund
Fund OneTransport
Ongoing
Time
KFCG
ation
$
3.3 $
7.2 $
3.5
0.7
1.0
7.8
Other
Utililities
$
9.1
1.3
$
4.0 $
9.5 $
6.8
7.5
10.3 $
8.2
1.6
2.7
15.3 $
12.5 $
9.1 $
Total
14.0
1.7
7.8
9.1
23.8
1.6
2.7
60.7
Recommended Revisions
$ in Millions
Self Funded Requests
Large Capital Projects
Climate Action Projects
Human Resoures / Benefits
Other Recommended Programs
TOTAL
General General
Fund
Fund OneTransport
Ongoing
Time
KFCG
ation
Other
Utililities
Total
$
0.5
$
0.1
$
0.6
0.8
7.8
2.7
5.0
16.3
0.1
0.2
3.6
3.9
1.1
0.3
0.2
3.7
0.5
5.8
0.1
1.6
0.8
0.1
2.6
$
1.3 $
2.9 $
1.3 $
8.0 $
6.6 $
9.1 $
29.2
Offers Needing Further Discussion
$ in Millions
General General
Fund
Fund OneOngoing
Time
KFCG
Community Recycle Center O&M
0.4
Regional Training Facility Design
0.8
TOTAL
$
0.4 $
0.8 $
-
Transport
ation
$
-
Other
$
-
Utililities
$
-
Total
0.4
0.8
$
1.2
Summary of 2016 Revisions
$ in Millions
General General
Fund
Fund OneTransport
Ongoing
Time
KFCG
ation
Other
Utililities
Total
$
4.0 $
9.5 $
10.3 $
15.3 $
12.5 $
9.1 $
60.7
Revenue Update
Recommended Budget Revisions
Net Impact
$
Discussion Offers
Total Net Impact Fund Balance
$
1.3
2.9
1.3
8.0
6.6
9.1
2.7 $
6.6 $
9.0 $
7.3 $
5.9 $
-
0.4
0.8
-
-
-
-
2.3 $
5.8 $
9.0 $
7.3 $
5.9 $
-
29.2
$
31.5
1.2
$
30.3
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
- Feedback on the City Manager’s Recommended Revisions to the 2016 Budget?
- Direction on the two offers reviewed for Council consideration?
BACKGROUND/DISCUSSION
City-wide, supplemental appropriations being recommended total $29.2 million. The General Fund
share is $4.2M, $1.3M is from the Keep Fort Collins Great Fund, $9.1M is from Utility funds,
$8.0M is from Transportation, and the remaining $6.6M is from other various funds. A complete
packet of requests is attached. Following are key objectives which the recommendations are
intended to address:
•
•
•
•
•
Council priorities
Projected revenue from the renewal of the ¼ cent street maintenance tax
Capital project and other needs not known at the time of the adoption of the 201516 Budget (e.g. Climate Action Plan)
Fiduciary responsibilities in the Self Insurance Fund and the Benefits Fund
Maintaining fund balances to support future needs and economic uncertainty
The recommended 2016 Budget Revisions meet these goals.
Sales and use tax, as well as property tax revenues are expected to be higher than originally
anticipated for 2015 and 2016. 2015 sales tax collections are now forecasted to be $5.0M higher
while use tax collections are anticipated to be $7.1M higher. Those amounts are then split into the
General Fund (approximately 60%), and the dedicated voter approved taxes (e.g. Keep Fort Collins
Great, OpenSpace Yes!, etc.). The City has been notified by Larimer County that property taxes are
anticipated to be nearly $1.0M higher in 2015.
Looking ahead to 2016, sales tax is forecasted to grow 3.5% over the new 2015 base and use tax is
being held flat to the $17.0M originally forecasted due to the significant volatility of that revenue
stream. 2016 property tax is forecasted to be 10% over the 2015 base, although 2/3s of that increase
will go to PFA in 2017 per our IGA.
For the 2016 Budget Revision Requests, staff recommends using approximately $15.0 million from
reserves and one-time revenue increases. The requests include $12.0M from the Capital Expansion
– Community Parks, Capital Projects, Light and Power, and General Funds for large capital projects.
$771K is from Keep Fort Collins Great reserves with the remainder primarily coming from the
General Fund for various one-time uses. Descriptions of the recommended requests are included in
the 2016 Budget Revision document.
For the Revision process only major revenue sources are updated. Any additional revenues that are
not used to fund budget offers will increase the various fund balances.
The mid-cycle revision process is slightly different from the biennial Budgeting for Outcomes
process. There was no review by BFO Results Teams or Boards and Commissions. However, the
Executive Leadership Team and City Manager conducted a comprehensive review to determine
which requests should be forwarded on for Council's consideration. Revised revenue projections
and anticipated fund reserves were carefully considered when making these recommendations.
2016 Budget Revisions
8-24-15
Mike Beckstead - CFO
2016 Budget Revision Objectives
The recommended 2016 Budget Revisions are
intended to address:
• Council priorities
• Projected revenue from the renewal of the ¼ cent street
maintenance tax
• Capital project and other needs not known at the time of the
adoption of the 2015-16 Budget (e.g. Climate Action Plan)
• Fiduciary responsibilities in the Self Insurance Fund and the
Benefits Fund
• Maintaining fund balances to support future needs and economic
uncertainty
2
2016 Available Funding
$ Millions
Sales & Use Tax
Property Tax
Street Maintenance 1/4 Cent
Utilities - Use of Reserves
Unassigned 2014
BCC Excess
Benefits Fund Revenue Depts
TOTAL
General General
Fund
Fund OneTransport
Ongoing
Time
KFCG
ation
$
3.3 $
7.2 $
3.5
0.7
1.0
7.8
1.3
$
4.0 $
9.5 $
6.8
10.3 $
7.5
15.3 $
Other
Utililities
8.2
1.6
2.7
12.5 $
Total
$
14.0
1.7
7.8
9.1
9.1
23.8
1.6
2.7
9.1 $
60.7
• Updated Major Revenue Elements Only:
• Sales Tax – 2015 updated to reflect 6% growth over 2014, 2016 growth of 3.5%
• Use Tax – 2015 updated to reflect additional $7.1M, no change to 2016
• No change to other revenue sources
• Unassigned 2014 Reflects year end available fund balances across multiple funds
• Utilities Reflects Only Fund Balance Used to fund Offers –
• L&P & Wastewater 2014 Unassigned is $18.4M & $20.4M Respectively
Slightly More Aggressive 2015 Forecast & Conservative 2016…..
Additional Revenue Will Flow to Fund Balance
3
Utility Rates
Original Revised
Light & Power
1.9%
3.0%
Water
0.0%
0.0%
Waste Water
3.0%
3.0%
Storm Water
0.0%
0.0%
PRPA Increasing Wholesale Rates Greater Then Anticipated
4
Offer Summary
General General
Fund Fund OneOngoing Time
KFCG
$ Millions
Self Funded Requests
Large Capital Projects
Climate Action Projects
Human Resoures / Benefits
Other Recommended Programs
TOTAL
$
$
Transport
ation
0.5
0.1
1.1
0.1
0.8
0.2
0.3
1.6
0.8
1.3 $
2.9 $
1.3 $
Other
$
7.8
Utililities
0.1
2.7
0.2
3.7
0.1
8.0 $
6.6 $
Total
$
5.0
3.6
0.5
0.6
16.3
3.9
5.8
2.6
9.1 $
29.2
Several Large Offers Associated with Capital,
Climate Action Plan and Benefits
5
Offer Summary
Strategic
Objective
Tran 6.6
Env 5.8
Safe 5.8
Safe 5.9
Budget Revision
FTE
Ongoing $
One-Time $
TOTAL $
Self Funded Offers and PFA KFCG
Harmony Park and Ride - Parking Enforcement Officer
0.75
Design Funds - Mail Creek Stream Restoration
Emergency Services Dispatcher
KFCG Reserve for PFA
Sub-Total
$60,000
$0
$60,000
-
-
-
1.00
70,475
-
70,475
1.75
$130,475
483,219
$483,219
483,219
$613,694
Large Capital Projects Funded by Reserves or Dedicated 1/4 Cent Tax
C&R 2.5
Econ 3.6
Southeast Community Park - Water Rights & Construction Costs
-
1,100,000
1,100,000
Major Duct Banks and Circuits Funding Increase
-
5,000,000
5,000,000
Tran 6.4
Tran 6.4
Prospect Road and College Avenue Intersection Improvements
-
2,400,000
2,400,000
Renewal of 1/4 cent Street Maintenance Tax
Sub-Total
7,786,500
0.00
$7,786,500
-
7,786,500
$8,500,000
$16,286,500
3,500,000
150,000
3,500,000
150,000
74,000
60,000
134,000
-
125,000
125,000
Climate Action Plan (CAP) Offers
Env 4.4
Env 4.4
Climate Action Plan - Water Reclamation Biogas to Co-Gen
Climate Action Plan Implementation - Program Business Planning
Env 4.4
Climate Action Plan - Energy Code Performance Program (contrcl)
Env 4.4
Climate Action Plan - Communication and Engagement Platform
Design & Implementation
Sub-Total
1.0
1.00
$74,000
$3,835,000
$3,909,000
6
Offer Summary
Strategic
Objective
HPG 7.2
HPG 7.3
Budget Revision
FTE
Ongoing $
One-Time $
TOTAL $
Human Resource Offers
Chief Human Resources Officer Position
Total Rewards Strategy: Career Architecture and Pay Structure
Cost Adjustments to the Benefits Fund (Benefits cost)
Cost Adjustments to the Benefits Fund (cost to Departments)
Sub-Total
1.0
1.00
121,276
2,700,000
21,000
275,000
-
142,276
275,000
2,700,000
2,720,789
$5,542,065
$296,000
2,720,789
$5,838,065
Other Recommended 2016 Budget Revision Offers
CNL 1.3
CNL 1.4
CNL 1.7
C&R 2.3
C&R 2.4
C&R 2.4
Econ 3.10
Neighborhood Srvcs Strategic Plan & Impl of Neighborhood Districts
Nature in the City Implementation (Contractual FTE)
HPG 7.12
HPG 7.9
Safe 5.2
Tran 6.1
IT: Open Data Portal - First Phase Implementation
1.0
Homelessness Initiatives - Street Outreach Pilot Program
Parks Division Competitive Hourly Wages
Spring Canyon Playground Surfacing Replacement
Golf Course Irrigation Improvements
78,089
67,000
-
67,000
78,089
-
80,000
80,000
208,000
30,000
110,000
208,000
30,000
-
900,000
600,000
900,000
600,000
60,000
40,000
100,000
110,000
-
Debt Payment on new Parking Structure
Increase Claims Settlement within the Self Insurance Fund
City Clerk Licensing Coordinator (Contractual FTE)
Police Property and Evidence Technician
1.0
1.0
68,917
73,726
5,700
-
74,617
73,726
Additional Bus Stop Improvements for ADA Accessibility (contractual
FTE)
Sub-Total
1.0
275,000
-
275,000
4.00
$665,732
Grand Total
7.75
$1,930,700
$2,596,432
$14,198,772 $15,044,919
$29,243,691
7
Offers Needing Further Discussion
General General
Fund Fund OneOngoing Time
KFCG
Community Recycle Center O&M
0.4
Regional Training Facility Design
0.8
$ Millions
TOTAL
$
0.4 $
0.8 $
-
Transport
ation
$
-
Other
$
-
Utililities
$
-
Total
0.4
0.8
$
1.2
8
Benefits Cost
• Benefits Cost Offer of $5.4M Includes:
• Department charges that generate revenue to the Benefits Fund - $2.7M
• Benefit cost payments from the benefits fund greater than budget - $2.7M
• Drivers of Benefit Cost Increases
1. 2014 claims greater than budget of $1.8M – required supplemental appropriation
• Claims cost in the 2015/16 budget does not reflect the higher base
2. Benefit Costs Increasing greater than anticipated
• Additional staff covered by the Affordable Health Care Act in 2015/16
• Claims costs growth at a greater rate than forecasted in 2015/16
3. Planned draw down of benefit fund reserves– faster than expected
• Department billings intentionally lower than needed in 2013-2015
• Expect benefits fund reserve will be at minimum level at the end of 2015
Claims Cost Increase Greater Than Anticipated….
Benefit Fund Subsidy Exhausted
9
Benefits Cost
Benefit Fund Expenses
$ Millions
28.0
26.3
23.7
21.9
$1.8
24.4
$1.9
25.3
$2.7
Increase Greater
Than Planned Budget
Increase:
2014 $1.8
2015 0.1
2016 0.8
Cumulative Impact - $2.7M
2016 Adjustment Driven by Cumulative $2.7M Impact of
Prior Year, Current Year & Expected 2016 Costs Above Budget
10
Benefits – Use of Reserves
Benefits Fund Balance
$ Millions
14
12
10
8
Planned
Actual/Forecast
6
4
2
0
2012
2013
2014
2015
2016
Increase Costs vs. Budget Reduced Reserves Faster Then Anticipated
11
Benefits – Cost Share Data
Premium Share Market Data (City/Staff)
Employee Only
Employee Plus
74% to 90% / 10% to 26%
63% to 75% / 25% to 33%
Premium Share Target – Advantage Plan:
Employee Only
Employee Plus
85% / 15%
70% / 30%
Budget Proposal Cost Share
Employee Only
Employee Plus
87% / 13%
71.5% / 28.5%
Staying on Track with Market Data…..
Phase in Catch-up to Target Over Two Years
12
Benefits – Premium Cost Increase
With 71.5% / 28.5% Premium Cost Share
Enrolled
Current
2015
Proposed Monthly
%
2016
Increase Increase
Core Plan
Employee
Employee + Spouse
Employee + Children
Employee + Family
154 $ 60.71 $ 77.81 $ 17.10
86
289.08
375.29
86.21
73
234.07
307.06
72.99
198
369.67
477.64
107.97
28%
30%
31%
29%
450 $ 77.47 $ 77.47 $
169
340.88
375.29
34.41
122
278.90
307.06
28.16
281
433.85
477.64
43.79
0%
10%
10%
10%
Advantage Plan
Employee
Employee + Spouse
Employee + Children
Employee + Family
City Department Charge
745.00
827.50
82.50
11%
Consolidation to One Plan to Manage Results in
Significant Increase to Staff in Core Plan
13
Benefits – Total Cost Share Data
With 71.5% / 28.5% Premium Cost Share
Rising Claims Cost Above Forecast Increase City Share….
Budget Proposal Begins to Rebalance Cost Sharing
14
2016 Budget Revision Summary
$ Millions
Revenue Update
General General
Transport
Fund Fund OneOngoing
Time
KFCG
ation
Other Utililities
Total
$
4.0 $
9.5 $ 10.3 $ 15.3 $ 12.5 $
9.1 $ 60.7
Recommended Budget Revisions
Net Impact
$
Discussion Offers
Total Net Impact Fund Balance $
1.3
2.9
1.3
8.0
6.6
9.1
2.7 $
6.6 $
9.0 $
7.3 $
5.9 $
-
0.4
0.8
-
-
-
-
2.3 $
5.8 $
9.0 $
7.3 $
5.9 $
-
29.2
$
31.5
1.2
$
30.3
City Manager’s Recommended Budget Maintains Healthy Fund Balance
15
2016 Budget Revision Summary
Guidance Requested:
1) CFC feedback on the City Manager’s Recommended
revisions to the 2016 Budget?
2) CFC direction on the two offers reviewed for Council
consideration?
16
Back-Up
17
Benefits – Premium Cost Increase
With 70% / 30% Premium Cost Share
Enrolled
Current
2015
Proposed Monthly
%
2016
Increase Increase
Core Plan
Employee
Employee + Spouse
Employee + Children
Employee + Family
154 $ 60.71 $ 89.78 $ 29.07
86
289.08
395.04
105.96
73
234.07
323.22
89.15
198
369.67
502.78
133.11
48%
37%
38%
36%
450 $ 77.47 $ 89.78 $ 12.31
169
340.88
395.04
54.16
122
278.90
323.22
44.32
281
433.85
502.78
68.93
16%
16%
16%
16%
Advantage Plan
Employee
Employee + Spouse
Employee + Children
Employee + Family
City Department Charge
745.00
827.50
82.50
11%
Consolidation to One Plan to Manage Results in
Significant Increase to Staff in Core Plan
18
Benefits – Total Cost Share Data
With 70% / 30% Premium Cost Share
Rising Claims Cost Above Forecast Increase City Share….
Budget Proposal Begins to Rebalance Cost Sharing
19
2016 Recommended
Budget Revisions
Council Finance Committee
August 24, 2015
2016 BUDGET REVISION REQUESTS
TABLE OF CONTENTS
SUMMARY OVERVIEWS
Revision Request Summary by BFO Outcome .................................................................... 1
Revision Request Summary by Funding Source ................................................................. 3
SELF FUNDED OFFERS AND PFA KFCG
Harmony Park and Ride - Parking Enforcement Officer ..................................................... 5
Design Funds - Mail Creek Stream Restoration ................................................................. 6
Emergency Services Dispatcher ......................................................................................... 7
KFCG - Fire Reserves for PFA ........................................................................................... 8
LARGE CAPITAL PROJECTS FUNDED BY RESERVES OR DEDICATED 1/4 CENT
TAX
Southeast Community Park - Water Rights & Construction Costs ..................................... 9
Major Duct Banks and Circuits Funding Increase ............................................................. 10
Prospect Road and College Avenue Intersection Improvements ..................................... 11
Renewal of 1/4 Cent Street Maintenance Tax .................................................................. 12
CLIMATE ACTION PLAN (CAP) OFFERS
Climate Action Plan: Water Reclamation Biogas to Co-Gen ............................................ 13
Climate Action Plan: Business Planning for Strategic Initiatives and
Public-Private Partnership................................................................................................. 14
Climate Action Plan: Energy Code Performance Program
(Including Contractual 1.0 FTE) ........................................................................................ 16
Climate Action Plan: Communication and Engagement Platform Design and
Implementation .................................................................................................................. 17
HUMAN RESOURCE OFFERS
Chief Human Resources Officer Position ......................................................................... 19
Total Rewards Strategy: Career Architecture and Pay Structure……… ......................... .20
Cost Adjustments to the Benefits Fund (Benefits cost) .................................................... 22
Cost Adjustments to the Benefits Fund (cost to Departments) ......................................... 25
OTHER RECOMMENDED 2016 BUDGET REVISION OFFERS
Neighborhood Services Strategic Plan and Implementation of Neighborhood
Districts………………………… ......................................................................................... 28
Nature in the City Implementation (Contractual FTE) ....................................................... 29
Homelessness Initiative - Street Outreach Pilot Program ................................................. 30
Parks Division Competitive Hourly Wages........................................................................ 32
Spring Canyon Playground Surfacing Replacement ........................................................ 33
Collindale Golf Course Irrigation Control Software Upgrade ............................................ 34
Downtown Parking Structure - Debt Service..................................................................... 35
Increase to Claims Settlement Account within the Self Insurance Fund .......................... 36
IT Open Data Portal - First Phase Implementation ........................................................... 37
City Clerk Licensing Coordinator (Contractual FTE) ......................................................... 38
Police Property and Evidence Technician ........................................................................ 39
Additional Bus Stop Improvements for ADA Accessibility (Contractual FTE) ................... 40
OTHER OFFERS FOR COUNCIL CONSIDERATION
Annual Operations for the Community Recycling Center (CRC) ...................................... 41
Design Funding for the Regional Training Campus .......................................................... 42
2016 Budget Revision Requests
Page
Proposed
Outcome Funding Source
Self Funded Offers and PFA KFCG
5
ECON
Parking
6
ENV
Not Applicable
7
SAFE
General Fund
8
SAFE
KFCG - Fire
Service Area
PDT
Utilities
Police Services
PFA
Related
Offer # Adjustment Requested
N/A
N/A
N/A
N/A
Harmony Park and Ride - Parking Enforcement Officer
Design Funds - Mail Creek Stream Restoration
Emergency Services Dispatcher
KFCG - Fire Reserves for PFA
Sub-Total
Large Capital Projects Funded by Reserves or Dedicated 1/4 Cent Tax
9
C&R
Capital Expansion Comm & Op Svcs
8.3
Southeast Community Park - Water Rights & Construction
Costs
10 ECON
Light & Power
Utilities
N/A Major Duct Banks and Circuits Funding Increase
11 TRAN
GF = $800K
PDT
N/A Prospect Road and College Avenue Intersection Improvements
BCC = $1.6M
12 TRAN
Transportation
PDT
25.15 Renewal of 1/4 Cent Street Maintenance Tax
Sub-Total
Climate Action Plan (CAP) Offers
13 ENV
Wastewater
14 ENV
General Fund,
L&P, Wastewater
16 ENV
General Fund
Light & Power
17 ENV
General Fund
Human Resource Offers
19 HPG
General Fund
Benefits Fund
20 HPG
General Fund
22
25
HPG
HPG
Benefits Fund
Multiple Funds
Utilities
Sustainability Svcs
Utilities
Sustainability Svcs
174.1 Climate Action Plan: Water Reclamation Biogas to Co-Gen
N/A Climate Action Plan: Business Planning for Strategic Initiatives
and Public-Private Partnership
N/A Climate Action Plan: Energy Code Performance Program
(including Contractual 1.0 FTE)
N/A Climate Action Plan: Communication and Engagement Platform
Design & Implementation
Sub-Total
Emp & Comm Svcs
N/A
Chief Human Resources Officer Position
Emp & Comm Svcs
N/A
Total Rewards Strategy: Career Architecture and Pay Structure
Emp & Comm Svcs
Emp & Comm Svcs
N/A
N/A
Cost Adjustments to the Benefits Fund (Benefits cost)
Cost Adjustments to the Benefits Fund (cost to Departments)
Sub-Total
Other Recommended 2016 Budget Revision Offers
28 CNL
General Fund
Comm & Op Svcs
29
30
CNL
CNL
General Fund
KFCG - Other
Comm. Priorities
PDT
Sustainability Svcs
77.1
N/A
48.7
Neighborhood Services Strategic Plan and Implementation of
Neighborhood Districts
Nature in the City Implementation (Contractual FTE)
Homelessness Initiative - Street Outreach Pilot Program
FTE
0.75
1.00
1.75
Ongoing $ One-Time $
TOTAL $
$60,000
0
70,475
0
$130,475
$0
0
0
483,219
$483,219
$60,000
0
70,475
483,219
$613,694
$0
$1,100,000
$1,100,000
0
0
5,000,000
2,400,000
5,000,000
2,400,000
7,786,500
0.00 $7,786,500
0
7,786,500
$8,500,000 $16,286,500
$0
0
$3,500,000
150,000
$3,500,000
150,000
74,000
60,000
134,000
0
125,000
125,000
1.00
$74,000
$3,835,000
$3,909,000
1.0
$121,276
$21,000
$142,276
0
275,000
275,000
2,700,000
2,720,789
0
0
2,700,000
2,720,789
1.00 $5,542,065
$296,000
$5,838,065
$0
$67,000
$67,000
78,089
0
0
80,000
78,089
80,000
1.0
1.0
1
2016 Budget Revision Requests
Proposed
Outcome Funding Source
Service Area
32
33
C&R
C&R
Comm & Op Svcs 98.1, 100.1Parks Division Competitive Hourly Wages
Comm & Op Svcs
98.1 Spring Canyon Playground Surfacing Replacement
34
35
C&R
ECON
General Fund
KFCG - Parks &
Rec
Golf
General Fund
Comm & Op Svcs
Financial Svcs
76.1
N/A
36
HPG
General Fund
Financial Svcs
N/A
37
38
39
40
HPG
HPG
SAFE
TRAN
Data & Comm
General Fund
KFCG - Police
KFCG - Other Tran
Comm & Op Svcs
ELJS
Police Services
PDT
Page
Related
Offer # Adjustment Requested
Increase to Claims Settlement Account within the Self
Insurance Fund
9.1
IT Open Data Portal - First Phase Implementation
116.3 City Clerk Licensing Coordinator (Contractual FTE)
56.4 Police Property and Evidence Technician
N/A Additional Bus Stop Improvements for ADA Accessibility
(Contractual FTE)
Sub-Total
47.5
TOTAL $
0
208,000
110,000
208,000
0
0
30,000
900,000
30,000
900,000
0
600,000
600,000
1.0
1.0
1.0
60,000
68,917
73,726
275,000
40,000
5,700
0
0
100,000
74,617
73,726
275,000
4.00
$665,732
$1,930,700
$2,596,432
7.75 $14,198,772 $15,044,919 $29,243,691
Annual Operations for the Community Recycling Center (CRC)
56.32 Design Funding for the Regional Training Campus
Sub-Total
Ongoing $ One-Time $
110,000
0
Collindale Golf Course Irrigation Control Software Upgrade
Downtown Parking Structure - Debt Service
Grand Total
Offers Needing Further Discussion
41 ENV
KFCG - Other
Sustainability Svcs
Comm. Priorities
42 SAFE
General Fund
Police Services
FTE
0.00
$380,000
$0
$380,000
$0
$810,000
$810,000
$380,000
$810,000
$1,190,000
2
2016 Budget Revision Requests - BY FUNDING SOURCE
Fund
General Fund
Outcome Service Area
CNL
Comm & Op Svcs
CNL
C&R
Econ
Env
Comm & Op Svcs
Comm & Op Svcs
Financial Svcs
Sustainability Svcs
Env
Sustainability Svcs
N/A
Safe
Tran
Police
PDT
N/A
N/A
HPG
Financial Svcs
N/A
HPG
HPG
ELJS
Emp & Comm Svcs
116.3
N/A
HPG
HPG
Emp & Comm Svcs
Emp & Comm Svcs
N/A
N/A
KFCG Fund
Fire & Emergency
Safe
Parks & Recreation
C&R
$0
One-Time $
$67,000
Total Fund
Ongoing &
One-Time
$67,000
$78,089
$110,000
$0
$37,000
$0
$0
$900,000
$30,000
$78,089
$110,000
$900,000
$67,000
$0
$75,000
$75,000
$70,475
$0
$0
$800,000
$70,475
$800,000
$0
$600,000
$600,000
1.0
$68,917
$0
$5,700
$275,000
$74,617
$275,000
1.0
$92,957
$1,033,806
$1,491,244
$21,000
$0
$2,773,700
$113,957
$1,033,806
$4,264,944
KFCG Reserves for PFA
Sub-Total Fire & Emergency
$0
$0
$483,219
$483,219
$483,219
$483,219
$0
$0
$208,000
$208,000
$208,000
$208,000
$73,726
$73,726
$0
$0
$73,726
$73,726
$0
$80,000
$80,000
$0
$125,000
$125,000
$0
$205,000
$205,000
1.0
$275,000
$0
$275,000
1.0
$275,000
$0
$275,000
2.0
$171,265
$171,265
$519,991
$0
$0
$896,219
$171,265
$171,265
$1,416,210
Related
Offer # Adjustment Requested
Neighborhood Services Strategic Plan and
77.1
Implementation of Neighborhood Districts
Nature in the City Implementation (contractual FTE)
N/A
98.1/100.1 Parks Division Competitive Hourly Wages
Downtown Parking Structure - Debt Service
N/A
Climate Action Plan - Energy Code Performance Program
N/A
PFA
Climate Action Plan Implementation - Program Business
Planning
Emergency Services Dispatcher
Prospect Road and College Avenue Intersection
Improvements
Increase to Claims Settlement Account within the Self
Insurance Fund
City Clerk Licensing Coordinator
Total Rewards Strategy: Career Architecture and Pay
Structure
Chief Human Resources Officer Position
Benefits Adjustments
Total General Fund
Comm & Op Svcs
98.1
Spring Canyon Playground Surfacing Replacement
Sub-Total Parks & Recreation
Police
56.4
Police Property and Evidence Technician
Sub-Total Police
48.7
Homelessness Initiatives - Street Outreach Pilot Program
and Car Camping Pilot Program
Climate Action Plan - Communication and Engagement
Platform Design & Implementation
Sub-Total Other Community Priorities
FTE
1.0
1.0
4.0
Ongoing $
Police
Safe
Other Community Priorities
CNL
Comm & Op Svcs
Env
Other Transportation
Tran
Sustainability Svcs
PDT
Other KFCG Designations
HPG
Emp & Comm Svcs
N/A
N/A
N/A
Additional Bus Stop Improvements for ADA Accessibility
(contractual FTE)
Sub-Total Police
Benefits Adjustments
Sub-Total Other KFCG Designations
Total KFCG Fund
1.0
1.0
3
2016 Budget Revision Requests - BY FUNDING SOURCE
Fund
Transportation
Outcome Service Area
Tran
PDT
HPG
Emp & Comm Svcs
Parking
Econ
HPG
PDT
Emp & Comm Svcs
Related
Offer # Adjustment Requested
25.15 Renewal of 1/4 cent Street Maintenance Tax
Benefits Adjustments
N/A
Total Transportation Services Fund
N/A
N/A
Harmony Park and Ride
Benefits Adjustments
Total Other Funds
Benefits
HPG
HPG
Emp & Comm Svcs
Emp & Comm Svcs
N/A
N/A
Chief Human Resources Officer Position
Benefits Adjustments
Total Benefits Funds
Light & Power
Econ
Env
Utilities
Utilities
N/A
N/A
Major Duct Banks and Circuits Funding Increase
Climate Action Plan - Energy Code Performance Program
Env
Utilities
N/A
HPG
Emp & Comm Svcs
N/A
Climate Action Plan Implementation - Program Business
Planning
Benefits Adjustments
Total Light & Power Fund
Water
HPG
Emp & Comm Svcs
Wastewater
Env
Utilities
174.1
Env
Utilities
N/A
HPG
Emp & Comm Svcs
N/A
Env
Utilities
HPG
Emp & Comm Svcs
N/A
Comm & Op Svcs
N/A
C&R
Tran
Comm & Op Svcs
PDT
N/A
N/A
HPG
HPG
Comm & Op Svcs
Emp & Comm Svcs
9.1
N/A
Stormwater
Other Funds
Capital Expansion C&R
Golf
Capital Projects
(BCC)
Data and Comm
Various
N/A
174.1
47.5
56.32
0.75
0.75
1.0
1.0
Benefits Adjustments
Total Stormwater Fund
Climate Action Plan - Water Reclamation Biogas to CoGen
Climate Action Plan Implementation - Program Business
Planning
Benefits Adjustments
Total Wastewater Fund
Design Funds - Mail Creek Stream Restoration (selffunded)
Benefits Adjustments
Total Stormwater Fund
Southeast Community Park - Water Rights &
Construction Costs
Golf Course Irrigation Improvements
Prospect Road and College Avenue Intersection
Improvements
IT: Open Data Portal - First Phase Implementation
Benefits Adjustments
Total Other Funds
Total All Funds
Offers Needing Further Discussion
KFCG ENV
Sustainability Svcs
OCP
Same
SAFE
Police Services
FTE
7.75
Annual Operations for the Community Recycling Center
(CRC)
Regional Training Facility Design Costs
Sub-Total
0.00
Ongoing $
$7,786,500
$208,117
$7,994,617
One-Time $
$0
$0
$0
Total Fund
Ongoing &
One-Time
$7,786,500
$208,117
$7,994,617
$60,000
$10,279
$70,279
$0
$0
$0
$60,000
$10,279
$70,279
$28,319
$2,700,000
$2,728,319
$0
$0
$0
$28,319
$2,700,000
$2,728,319
$0
$37,000
$5,000,000
$30,000
$5,000,000
$67,000
$0
$50,000
$50,000
$226,568
$263,568
$0
$5,080,000
$226,568
$5,343,568
$113,481
$113,481
$0
$0
$113,481
$113,481
$0
$3,500,000
$3,500,000
$0
$25,000
$25,000
$44,920
$44,920
$0
$3,525,000
$44,920
$3,569,920
$0
$0
$0
$64,597
$64,597
$0
$0
$64,597
$64,597
$0
$1,100,000
$1,100,000
$0
$0
$30,000
$1,600,000
$30,000
$1,600,000
$60,000
$847,756
$907,756
$40,000
$0
$2,770,000
$100,000
$847,756
$3,677,756
$14,198,772
$15,044,919
$29,243,691
$380,000
$0
$380,000
$0
$810,000
$810,000
$380,000
$810,000
$1,190,000
4
2016 BUDGET REVISION REQUEST
Revision Title:
Harmony Park and Ride - Parking Enforcement Officer
Outcome:
Economic Health
Contact:
Expense Fund:
294 - PARKING FUND
Package/Offer #:
Funding Source:
294 - Parking Fund (grant)
FTE Requested:
0.75 FTE - Parking Enforcement Officer
Ongoing:
One-time:
TOTAL Amount:
Mark Jackson
None
$60,000
$0
$60,000
Description:
The City of Fort Collins Parking Services Department is entering into a funding agreement with the
Colorado Department of Transportation (CDOT) to contract for daily parking enforcement at the
Harmony Transfer Center (Park and Ride). This provides parking enforcement for CDOT's new interregional bus service, "Bustang". All costs for parking enforcement are borne by CDOT. One .75
hourly parking enforcement position is included in this offer. The budget revision provides the
funds for 2016 enforcement activities.
5
2016 BUDGET REVISION REQUEST
Revision Title:
Design Funds - Mail Creek Stream Restoration
Outcome:
Environmental Health
Contact:
Expense Fund:
504 - STORMWATER FUND
Package/Offer #:
Funding Source: N/A - self funded
FTE Requested:
None
Jon Haukaas
None
Ongoing:
One-time:
TOTAL Amount:
$0
$0
$0
Description:
The Fossil Creek Meadows Home Owner's Association (FCMHOA) was annexed in 2009 as part of the
Southwest Annexation process. A section of Mail Creek is severely eroded through FCMHOA property
and is identified in the Mail Creek Basin Master Plan as being in need of repairs.
The prioritization of stormwater projects presented to City Council in 2012 identified this section of Mail
Creek as the third priority stream restoration project after Fossil Creek upstream of Lemay Ave
(completed in the spring of 2015) and Spring Creek through Edora Park (currently in final design).
It has been requested that the Stormwater Utility advance the design of the Mail Creek project to fully
understand the costs, impact, benefits, and layout of a solution to the erosion concerns on the FCMHOA
property.
This will be a complex project for a variety of reasons beyond the steep eroded banks. The site has
limited access and will require easements for access, construction, and maintenance from the FCMHOA.
The New Mercer Irrigation Company runs a significant amount of water through this section and will
need to be involved in the design to ensure the project continues to meet their water delivery needs.
The South Fort Collins Sanitation District has existing easements and infrastructure through this section
that will be impacted by a project. Finally, the environmental study and Corps of Engineers permitting
that has been initiated over the past year will need to be completed.
The impact of advancing this project is it removes construction funding of the Spring Creek project that
staff is coordinating with the replacement of the Riverside Ave bridge leading to EPIC. Final construction
funding will need to come from future appropriations.
The Stormwater Utility will be completing an update to our Master Plan Summary documents prior to the
beginning of next year's work on the 2017-2018 BFO process. Those documents will provide the Council
the information necessary to update the prioritization of future Stormwater projects as we move into
that next budgeting cycle.
6
2016 BUDGET REVISION REQUEST
Revision Title:
Emergency Services Dispatcher
Outcome:
Safe Community
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source:
100 - General Fund - grant
FTE Requested:
1.0 FTE - Emergency Services Dispatcher
Ongoing:
One-time:
TOTAL Amount:
Carol Workman
None
$70,475
$0
$70,475
Description:
Earlier this year Poudre Fire Authority completed contract negotiations with University
Health/Poudre Valley Hospital (PVH) for dedicated ambulance services for the City of Fort Collins and
the Poudre Fire Authority district. Within this agreement emergency dispatching services with Fort
Collins 911 was outlined and an additional agreement between The City of Fort Collins and PVH was
completed. Currently the agreement for dispatch services is being circulated for signatures.
In the agreement, PVH has agreed to fund a 1.0 FTE Emergency Services Dispatcher beginning in
2016. This agreement will automatically renew each succeeding year through December 31, 2021 or
until modified.
The 1.0 FTE is necessary for the dispatch center to continue to maintain service levels for PVH and
the community. The position of Emergency Services Dispatcher is critical to the organization as this
position is responsible for handling and triaging incoming 911 telephone calls, non-emergency
telephone calls as well as dispatching field units to calls for service. Additionally, the Emergency
Services Dispatcher is trained in CPR and can provide emergency medical instructions to citizens via
the Emergency Medical Dispatch (EMD) program and protocols. This provides additional medical
related information to responding EMS and Fire personnel based on the condition of the patient.
7
2016 BUDGET REVISION REQUEST
Revision Title:
KFCG - Fire Reserves for PFA
Outcome:
Safe Community
Contact:
Fund:
840 - POUDRE FIRE AUTHORITY
Package/Offer #:
Funding Source:
KFCG Emergency & Fire - Reserves
Ongoing:
One-time:
TOTAL Amount:
FTE Requested:
None
Kirsten Howard
None
0
$483,219
$483,219
Description:
PFA staff is requesting the KFCG Reserve for Fire held by the City of Fort Collins. Chief DeMint will
be discussing the budget priorities and targeted outcomes with his staff and the PFA Board of
Directors for allocation of these funds in the PFA 2016 budget. Examples of what these one-time
funds could be used for include a new station alerting system, fire apparatus, self-contained
breathing apparatus, and/or radios. Benefits of these items include response time improvements,
improved citizen and firefighter safety, and communications improvements.
8
2016 BUDGET REVISION REQUEST
Revision Title:
Southeast Community Park - Water Rights & Construction
Outcome:
Culture & Recreation
Contact:
Expense Fund:
400 - CAPITAL PROJECTS FUND
Package/Offer #:
Funding Source:
Capital Expansion Fund - Community
Parkland Reserve
Total Amount:
FTE Requested:
Kurt Friesen
8.3
$1,100,000
None
Description:
Southeast Community Park is a proposed 54 acre community park located at the intersection of
Ziegler and Kechter. The park is currently scheduled to be constructed in 2016 with an anticipated
opening in 2017. Construction costs remain very volatile, and have increased dramatically over the
last few years, resulting in the need for more funding for the project. This request is for an
appropriation of 1.1 million from the Capital Expansion Fund/ Community Parkland reserves to
provide the necessary funding for the park and additional irrigation water shares. There is
approximately 4.3 million currently in Community Parkland reserves.
9
2016 BUDGET REVISION REQUEST
Revision Title:
Major Duct Banks and Circuits Funding Increase
Outcome:
Economic Health
Contact:
Expense Fund:
501 - LIGHT & POWER FUND
Package/Offer #:
Funding Source:
501 - LIGHT & POWER FUND - Reserves
Ongoing:
One-time:
TOTAL Amount:
FTE Requested:
None
Travis Walker
None
$0
$5,000,000
$5,000,000
Description:
The backbone of the distribution infrastructure required to serve all commercial and residential
customers of the City is a system of primary circuits that are housed in duct banks. While new
developments must cover the costs of the infrastructure required to serve them through electric
development fees, it is necessary to install duct banks ahead of specific developments because the
duct banks serve both existing and new customers. Once a new development requests electric
service, the excess capacity of existing cables installed in the duct banks is assessed to determine if it
is necessary to add another primary cable to serve the new demand. Installing the duct banks
themselves ahead of other utilities being installed ensures adequate space is available in the right of
ways.
Recent assessments have determined the need to install several new duct banks so that there is
availability to add primary cables to serve anticipated new demands.* These conduit systems, or duct
banks, can cost $425,000 per mile in open or "greenfield" development, and can be close to $1M per
mile in established areas such as the Harmony corridor. Light and Power operations personnel have
identified the need for an additional $5M worth of duct banks to be installed in 2016.
* Focus areas for the new duct banks will include the downtown area and east Harmony Road from
Timberline to I-25.
10
2016 BUDGET REVISION REQUEST
Revision Title:
Prospect Road and College Avenue Intersection Improvements
Outcome:
Transportation
Contact:
Expense Fund:
292 - TRANSPORTATION SERVICES FUND
Package/Offer #:
Funding Source #1: Capital Project Fund (BCC) - Reserves
Funding Source #2: General Fund - Reserves
FTE Requested:
Dean Klingner
None
Funding Amount #1:
Funding Amount #2:
Total Amount:
$1,600,000
$800,000
$2,400,000
Ongoing:
One-time:
TOTAL Amount:
$0
$2,400,000
$2,400,000
None
Description:
This offer proposes to fund the design and construction of congestion-relief, operational-improvement,
and safety-improvement modifications to the College Avenue (State Highway 287) and Prospect Road
intersection.
• This project is proposed as a cooperative project with Colorado State University (CSU). As a part of the
Inter-Governmental Agreement (IGA) between CSU and the City, CSU has agreed to make improvements
to the Prospect and College intersection in proportion to the predicted increase in traffic related to
multiple on-campus infrastructure projects.
• This presents an opportunity for the City to collaborate to add additional improvements to the
intersection to address existing problems and increase the citywide benefits of the project.
The City has evaluated several concepts for expanding the CSU improvements to improve the operation
and safety of the intersection. Complete expansion and improvement of the intersection looks to have
significant property impacts to existing businesses located in the vicinity. This offer proposes to explore
design alternatives for improvements that:
• (1) work best with CSU’s proposed improvements
• (2) could be implemented in the short term along with CSU’s improvements, and
• (3) could be done in the future and/or phased in with redevelopment of the adjacent properties, if that
opportunity arises.
This offer is scalable as proposed:
‒ $300,000 – Design Only
‒ Total of $1.7M – Design and West leg improvements
‒ Total of $2.4M – Design and West and East leg improvements
11
2016 BUDGET REVISION REQUEST
Revision Title:
Renewal of 1/4 Cent Street Maintenance Tax
Outcome:
Transportation
Contact:
Expense Fund:
292 - TRANSPORTATION SERVICES FUND
Package/Offer #:
Funding Source: Transportation - Street Maintenance 1/4 Cent Tax Ongoing:
One-time:
TOTAL Amount:
FTE Requested:
None
Darren Moritz
25.15
$7,786,500
$0
$7,786,500
Description:
In 2005, Fort Collins voters approved a ¼ cent street maintenance tax to help maintain our overall street
network level of service “B” or “Good” rating. This tax was set to expire on 12/31/2015. The Keep Fort
Collins Great (KFCG) tax (dedicated 33% towards street maintenance & repair) doesn’t expire until
12/31/2020. With the combination of the ¼ cent street maintenance tax revenue and KFCG revenue,
the Street Maintenance Program (SMP) has been fully funded from 2011 through 2015.
In April of 2015, voters approved the continuation of the 1/4 cent street maintenance tax. The new tax
expiration date is now 12/31/2025. This dedicated tax revenue shall be used to pay the costs associated
with the repair and renovation of City Streets, including, but not limited to, curbs, gutters, bridges,
parkways, shoulders and medians. The use of these funds will allow for the resurfacing and
maintenance of approximately 65 additional lane miles per year.
This budget revision is an appropriation request for the amount of sales tax that will be collected in
2016.
12
2016 BUDGET REVISION REQUEST
Revision Title:
Climate Action Plan: Water Reclamation Biogas to Co-Gen
Outcome:
Environmental Health
Contact:
Expense Fund:
503 - WASTEWATER FUND
Package/Offer #:
Funding Source:
503 - Wastewater - Reserves
Ongoing:
One-time:
TOTAL Amount:
FTE Requested:
None
Jason Graham
174.1
$0
$3,500,000
$3,500,000
Description:
Description:
This budget revision request for 2016 is for the design/build of a cogeneration and gas conditioning
system at the Drake Water Reclamation Facility (DWRF).
Purpose of Offer and Why:
This request is one of four offers responding to City Council and City manager requests for Climate
Action Plan (CAP) implementation strategies. The purpose of these offers is to develop or expand
City programs that will aid in or directly affect the reduction of the community’s greenhouse gas
emissions. This project is scalable with future possible opportunities in community resource recover
initiatives and compressed natural gas for fleet use. This offer also provides an opportunity to pilot
the utilization of third party financing options.
How it Will Work:
Biogas generated from the wastewater treatment process through anaerobic digestion can be fed to
a cogeneration system to generate energy and waste heat. Generated electricity would be used onsite, potentially reducing the facility’s electrical consumption by approximately 22%. Waste heat
generated would be recovered from the system and could be used to offset fuel used for boilers and
process systems. In addition recovered heat could be chilled and used for facility cooling which
would further reduce our energy consumption and costs.
Expected Outcomes:
This project has been estimated by a third party consultant with a conservative 15 year payback
through reduced electrical and natural gas costs. According the the EPA GHG equivalence tables, the
estimated annual savings from this project of 2100 metric tons of carbon, is equivalent to offsetting
the GHG emissions of 300 City of Fort Collins households. An annual carbon savings of 2100 metric
tons moves the overall CAP needle for all City of Fort Collins facilities 6.4% closer to the achieving a
20% GHG reduction and 7.4% closer to achieving the 20% energy consumption reduction by 2020.
This project is aligned with 2014-2015 BFO Pkg. Offer 174.1 and could access funds from this to help
minimize financial impact.
13
2016 BUDGET REVISION REQUEST
Revision Title:
Climate Action Plan: Business Planning for Strategic Initiatives and PublicPrivate Partnership
Outcome:
Environmental Health
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source #1:
Funding Source #2:
Funding Source #3:
General Fund
Light & Power
Waste Water
Funding Amount #1:
Funding Amount #2:
Funding Amount #3:
Total Amount:
Ongoing:
One-time:
Total Amount:
FTE Requested:
None
Josh Birks
None
$75,000
$50,000
$25,000
$150,000
$0
$150,000
$150,000
Description:
This offer is among four offers responding to City Council and City Manager requests for Climate
Action Plan (CAP) implementation strategies. The purpose of these interdepartmental offers is to
develop or expand City programs and projects that will aid or directly affect the reduction of the
community’s greenhouse gas emissions.
Purpose of Offer & Why:
The primary focus of this offer is to engage external expertise on developing innovative mechanisms
for public and private programs and projects, including but not limited to, public private partnerships
(PPP) to achieve carbon reduction within Fort Collins.
A major aspect of achieving CAP objectives is developing effective programs to support the capital
investment required by the public and private sector. Many of these programs and the associated
funding sources will be consumer oriented and come from the private market. However, a number of
regulatory, policy, and market barriers exist to achieving the Climate Action Plan objectives. These
barriers must be eliminated and/or reduced to develop effective programs for the City, its residents
and its business. Of particular interest are PPPs, where both City and private sector resources can be
leveraged to varying degrees.
Staff will also be seeking outside funding sources and partners (e.g., Clinton Global Initiative, etc.) to
pair with these requested funds enabling additional work and thus a more detailed financing
framework.
14
How It Will Work:
• These funds will be used to obtain external expertise to aid in the evaluation, development and
implementation of innovative programs and the associated funding sources. It is anticipated that the
contractor(s) or consultant(s) will have experience developing similar programs elsewhere in the
Country.
• In addition, the funds will be used to support internal/external education and outreach regarding
potential programs, identifying and minimizing regulatory or policy barriers to carbon reduction,
facilitating connections with existing and/or new capital markets, attracting and fostering private
sector investment, optimizing the City’s role in PPPs, and consultation on any immediate
demonstration projects.
• The funds will be used to further expand the list of other programs and associated funding sources
that are either public or private only in nature.
• Finally, the funds will be used to seek external expertise in the development of business plans,
marketing plans, and operational plans for proposed projects funded with general fund or utility
dollars.
• The City’s Innovative Finance CAP Implementation Team (Team) will develop evaluation criteria and
processes for use of internal funding mechanisms (i.e., use of General Fund or Utilities dollars). The
outside expertise obtained by this budget request may provide input to those criteria and processes
at the discretion of the Team.
Expected Outcomes:
The anticipated outcome(s) of this offer include:
• Identification of, and if possible, solutions for any barriers to existing and new programs
• A report of the potential financing tools to leverage for both public sector and private sector
initiatives or projects
• A matrix comparing potential programs and tools to the four key CAP outcome areas (Buildings,
Transportation, Energy Supply and Waste Reduction)
• If possible an estimate of the funding capacity and approval criteria associated with the programs
and tools
• Assistance developing business plans, marketing plans, and operational plans for existing and
proposed City projects.
Together these deliverables will become an innovative program and funding framework to
accompany the CAP implementation framework.
15
2016 BUDGET REVISION REQUEST
Revision Title:
Climate Action Plan: Energy Code Performance Program
Outcome:
Environmental Health
Contacts:
Expense Fund:
100 - GENERAL FUND
501 - LIGHT & POWER FUND
Package/Offer #:
Funding Source #1:
Funding Source #2:
100 - GENERAL FUND
501 - LIGHT & POWER FUND
FTE Requested:
1.0 FTE - Contractual
Funding Amount #1:
Funding Amount #2:
Total Amount:
Ongoing:
One-time:
Total Amount:
John Phelan
Tom Leeson
Lucinda Smith
None
$67,000
$67,000
$134,000
$74,000
$60,000
$134,000
Description:
This offer is among four offers responding to City Council and City Manager requests for Climate Action Plan (CAP)
implementation strategies. The purpose of these interdepartmental offers is to develop or expand City programs and projects
that will aid or directly affect the reduction of the community’s greenhouse gas emissions.
Purpose of Offer and Why
Fort Collins has a strong history adopting current model building codes and has added local amendments specifically targeting
energy performance and green building. While the prescriptive requirements are appropriate, the expected performance is
not always achieved in practice, for a variety of reasons. Closing the gap between what the code requires and what is designed
and built is critically important for utility planning and attaining community goals.
The purpose of this offer is to provide resources to verify expected performance levels are achieved as the Fort Collins building
code is implemented. The offer will provide resources targeting energy code and related building performance compliance at
several stages:
• Education (web resources, education and training);
• Permit application review (plans and related submittals);
• Verification of field testing and inspection requirements prior to final approval.
How It Will Work
Building energy performance is critical to the goals of the Climate Action Plan Framework, Energy Policy and Green Built
Environment initiative. Recent editions of the model codes have increasingly incorporated building science principles; local
amendments have strengthened those changes. This is positive but – with increasingly technical requirements and advanced
technologies – the code has become more challenging to enforce.
This offer would help to plug the gap by providing additional expertise and related resources. Expert staff would be added and
given separate signoff authority for more technical energy- and building performance-related aspects of permit applications
and final approvals. This approach is analogous to existing development and building code processes for stormwater, fire
safety and water-conserving landscape requirements.
Expected Outcomes
• Verification of expected performance levels as the Fort Collins building code is implemented
• Updating of City information resources with current information regarding code requirements related to energy and building
performance;
• Education and training of internal and external stakeholders regarding energy and building performance aspects of the
codes;
• Maintaining and formalizing the credentialing program for residential mechanical systems design and testing.
16
2016 BUDGET REVISION REQUEST
Revision Title:
Climate Action Plan: Communication and Engagement Platform Design &
Implementation
Outcome:
Environmental Health
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source:
General Fund - Reserves
Ongoing:
One-time:
TOTAL Amount:
FTE Requested:
None
Contact:
Wendy Bricher,
Lucinda Smith
None
$0
$125,000
$125,000
Description:
This request is among four offers responding to City Council and City Manager requests for
Climate Action Plan (CAP) implementation strategies. The purpose of these offers is to develop
or expand City programs that will aid in or directly affect the reduction of the community’s
greenhouse gas emissions.
Purpose of Offer & Why:
• Successful community engagement and clear expansion of financing opportunities including
how they align with our community have long been recognized as keys to meeting the goals of
the 2015 CAP Framework.
• This offer will develop a Climate Action Engagement Plan, pilot test it, and begin full
implementation.
How it Will Work:
The offer will provide four elements of deliverables:
1) A one-stop, easily accessible web interface to:
• keep citizens, stakeholders, and City Council informed of CAP progress and ways to get
involved
• feature a progress-tracking dashboard
• feature the latest news on CAP implementation and engagement programs and strategies.
2) Community Engagement Plan will be developed through discussions with key segments of
the community to identify opportunities for engagement and address barriers to engagement,
including:
• City staff,
• the Fort Collins business community, with special emphasis on key accounts and those
already involved in City and Utility conservation programs, and
• those challenged by issues such as socioeconomic inequities, housing affordability,
disabilities and age.
17
3) Pilot test Plan with City employees as proxy for a broader community by:
• testing CAP messaging that addresses:
o What is the CAP
o Why Fort Collins is taking on these aspirational CAP goals
o Why Fort Collins is the best place to succeed
o What each individual can do at work and home to help achieve CAP goals?
• helping employees understand how to effectively articulate the CAP's ambitious goals to
others
• helping employees understand how their daily work tasks, projects and programs are
positioned to help succeed in reaching these goals;
• communicate what employees can expect as an employee and a resident as we move the
CAP goals forward;
• understand the interrelatedness of City’s programs, projects and policies with CAP goals.
4) Begin implementing the Plan in neighborhoods, with the business community, and with
Expected Outcomes:
• Easy to understand web platform for community and Council to keep track of progress and
link to opportunities to get involved in reducing emissions
• City staff can serve as informed ambassadors to advance CAP implementation
• Increased engagement in City programs that reduce GHG emissions through overcoming
misperceptions and addressing values barriers
• Improved equity in access to programs
• Reduction of barriers to engagement faced by underserved or disadvantages segments of
our community
• Increased awareness of and engagement in business opportunities that support GHG
reduction
• Reduction of misconceptions around costs for CAP implementation
• Increased understanding of need and political support for policy and regulatory actions
18
2016 BUDGET REVISION REQUEST
Revision Title:
Chief Human Resources Officer Position
Outcome:
High Performing Government
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source #1: General Fund
Funding Source #2: Benefits Fund
FTE Requested:
1.0 FTE -
Funding Amount #1:
Funding Amount #2:
Total Amount:
Ongoing:
One-time:
Total Amount:
Kelly DiMartino
None
$113,957
$28,319
$142,276
$121,276
$21,000
$142,276
Chief Human Resources Officer
Description:
The City is a service-delivery organization, and as such, managing our human capital is critical to our
overall success. Traditionally, Human Resource Directors have been responsible for the administration
of Human Resources (HR) functions. In recent years, organizations have found the need for HR leaders
to evolve into more of a strategic influencer role. The City of Fort Collins is no exception.
Currently one of the Assistant City Managers (ACM) is serving in a duel capacity as ACM and acting
Chief Human Resources Officer (CHRO). There is no HR Director. Rather, those responsibilities are
shared between the acting CHRO and an Assistant HR Director. This model does not provide adequate
resource and attention to carry out key HR leadership functions, including:
- Serving as strategic advisor that provides human capital information to help the City achieve its
strategic objectives and counsels executive leaders on talent management strategies
- Developing and executing strategic direction for succession planning, talent management, change
management, organizational and performance management, training and development, compensation
and benefits.
- Providing leadership to ensure that all major HR systems and programs are run efficiently and
effectively, and that plans and policies remain in compliance with ever-changing federal, state and local
laws.
This position has been identified as a high priority by the Executive Lead Team, as well as Human
Resources and City staff. This offer provides funding to hire this critical position, as well as one-time
resources for an executive recruiter to assist in finding a highly qualified candidate. This Offer assumes
a start date of April 1, 2016. Starting in 2017, ongoing costs for Salary and Benefits will start at
approximately $151,000 rather than $113,276.
19
2016 BUDGET REVISION REQUEST
Revision Title:
Total Rewards Strategy: Career Architecture and Pay Structure
Outcome:
High Performing Government
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source: General Fund - Reserves
FTE Requested:
None
Ongoing:
One-time:
TOTAL Amount:
Jamie Heckman
None
$0
$275,000
$275,000
Description:
Per Objective 7.2 of the City Strategic Plan, the City is working to improve core Human Resource
Systems and develop a total rewards system, which is an approach that clarifies both the value of
the total employment package at the City, as well as the expectations of employees working for the
City. The Total Rewards vision is that every employee perceive the City of Fort Collins as a great
place to work and to be known as the employer of choice to attract, retain, engage, develop and
reward employees. Employee attraction and retention is becoming increasingly important; in 2014,
the City’s turnover rate was 9.35%, an increase of approximately 50% over previous years, and
exceeding our target rate of 8%.
In 2014, the City completed a Compensation & Career Progression Study which identified a need to
make some significant adjustments to the City’s compensation system, job description and analysis
structure, and performance management process. This offer seeks to continue the multi-year
project in partnership with a consultant who will:
- Design Career Architecture
- Build Job Leveling Guides
- Market Analysis and Pricing
- Design Base Pay Program
- Design Incentive Pay Program
Performance Management Process - The City is transitioning to a quarterly performance
management process that provides timely and meaningful feedback while at the same time
decreases the overall amount of effort required on the part of employees and managers. This should
be completed in September 2015.
Career Architecture - This is well-defined and cross-organizationally related jobs with a set of
guidelines that show employees how they can move into and across jobs. The career framework is
highly responsive to an organization’s needs and supports overall employee career development
and progression readiness.
20
Compensation Target Market - Once the career architecture is in place, each role will be
benchmarked to a target market rate. Currently the organization has more than 400 individual job
descriptions. An assessment performed in 2014 indicated an extremely low benchmark match rate
to market surveys. An updated approach is required to ensure accountability and good stewardship
of community resources, and to restore organizational credibility regarding the market-based pay
system.
Career Management - Career Management is an important element of the Total Rewards Strategy.
Recognizing that traditional career “ladders” with step-by-step progression don’t work in most
organizations today, the City would like to create more dynamic career paths that allow flexibility for
employees to choose how they want to focus their career, while at the same time providing
concrete guidance for employees on how they can develop in a path. The career paths would align
to different types of future leadership roles within the City, and would also include a path for those
who want to increase their skills and contribution as an individual contributor.
Implementation Approach - The Career Architecture and Compensation Target Market sub-projects
are interrelated and therefore should be addressed concurrently. It is anticipated that these will
take two years to complete organization-wide; this Offer would fund the first half of those subprojects.
21
2016 BUDGET REVISION REQUEST
Revision Title:
Benefits Fund Unanticipated Expenditures
Outcome:
High Performing Government
Expense Fund:
Funding Source:
Contact:
Steve Engemoen &
Jamie Heckman
604 - BENEFITS FUND
Package/Offer #:
None
Various
Funding Amount:
Total Amount:
FTE Requested:
$2,700,000
None
Description:
Please see attached Memo
22
2016 Budget Revision Offer
Benefits Fund Unanticipated Expenditures
This Budget Revision Offer requires citywide adjustments to various funds in order to address a significant
shortfall in the City’s self-insured Benefits Fund. The shortfall has accumulated over the past few years due to a
number of factors:
• Medical claims have been increasingly higher than anticipated and budgeted for the past few years (see
Figure 1)
• The Affordable Care Act (“ACA”) has required that we bring approximately 240 additional employees
onto our Medical Plan
• The City made a strategic decision to subsidize a portion of expected medical claims with Benefits Fund
Reserves (see Figure 2)
Since 2013, the Benefits Fund Reserve has absorbed the additional costs for medical claims and the addition of
full-time hourly employees using reserves. As the Benefits Fund Reserve approaches its minimum-required fund
balance of $5 million, the reserve is not sufficient to further cover any additional shortfall, and a course
correction is required. This Offer proposes addressing the shortfall through an increase in both employer-paid
and employee premiums for 2016.
Figure 1
Benefits Fund Medical Claims - Expenditures vs Budget
2013-2016
20
Millions (millions)
18
16
14
12
10
Budget
8
Actual
6
Projected
4
2
0
2013
2014
2015
2016
Year
23
Figure 2
Proposed Use of Reserves
2013
(1,745)
2014
(1,577)
2015 Rev
(141)
2016 Rev
(169)
Total
(3,632)
Revenues vs Budget
Other Exp vs Budget
Medical Claims vs Budget
City Care
Subtotal
830
(569)
(566)
0
(305)
571
(417)
(1,020)
(332)
(1,198)
(28)
594
(1,728)
(750)
(1,912)
3,131
(78)
(2,580)
(3)
470
4,504
(470)
(5,894)
(1,085)
(2,945)
(2,050)
(2,775)
(2,053)
301
(6,577)
Actual Use of Reserves
Request for Appropriations to Cover Unanticipated Expenditures in the Benefits Fund = $2,700,000
The City’s Benefit Consultant (Hays Consulting) completed a Benefit Fund actuarial analysis for the first 6 months
of 2015. As a result of the analysis, additional appropriations, totaling $2.7 million, are projected as necessary to
cover 2016 expenditures in the Benefits Fund. The majority of the requested increase ($2.6 million) is needed to
cover the revised projection for medication claims, as explained below:
• Medical claims estimated in preparation of the 2015-2016 Budget, prepared in the spring of 2014, were
estimated at $17.3 million for 2016. The revised 2016 claims projection, based on the actuarial analysis,
is $19.9 million.
• 2014 claims increased 7.5% over 2013 and 2015 claims are projected to exceed 2014 by 10.9%. 2016
claims are projected to exceed the 2015 revised projection by 8.5%.
• Increases in the medical claim trend are due in part to a significant number of high dollar claims in 2014
and 2015, and the addition of over 100 new enrollees to the medical plans as a result of the Affordable
Care Act ("ACA").
The adjustments to the Benefits Fund appropriation will be covered through an increase in both employer-paid
and employee medical premiums for 2016. The corresponding Benefits Offer outlines the details of those
adjustments.
24
2016 BUDGET REVISION REQUEST
Revision Title:
Department Charges - Medical Premiums
Outcome:
High Performing Government
Fund:
604 - BENEFITS FUND
Funding Source: Various
FTE Requested:
Contact:
Package/Offer #:
Steve Engemoen & Jamie
Heckman
None
Funding Amount:
$2,720,789
Total Amount:
$2,720,789
None
Description:
Please see attached Memo
25
2016 Budget Revision Offer
Department Charges – Medical Premiums
As outlined, medical premium adjustments are needed to cover increasing Benefits costs.
Request for Appropriations in Various City Funds for Employer-Paid Premiums to Cover Unanticipated
Benefits Fund Costs = $2,720,789
The City is taking action to address increasing medical trends by consolidating to a single medical plan, and
adjusting both employer-paid and employee premiums.
This Budget Revision Request presumes the following plan changes:
- Consolidate to a single PPO plan
- Employer share of premiums increase by 8%
- Employee contributions increase between 0-31%, depending on the coverage elected
The budgeted annual employer-paid premium for full-time employees is $9,300. The recommended annual
employer-paid premium is $9,930. The cost associated with the recommended change for Classified and
Unclassified employees totals $862,949, and is spread across all City funds in which employees are budgeted.
See Fund Detail for the recommended appropriation by fund.
The addition of Hourly employees covered under the Affordable Care Act has resulted in a projected deficit of
$1.858 million. Accordingly, additional appropriations are requested in various City funds in which these Hourly
employees are budgeted. See Fund Detail for the recommended appropriation by fund.
26
Fund Detail
Fund
100 - GENERAL FUND
252 - GENERAL IMPROVEMENT DISTRICT 1
254 - KEEP FORT COLLINS GREAT FUND
270 - NEIGHBORHOOD PARKLAND FUND
271 - CONSERVATION TRUST FUND
272 - NATURAL AREAS FUND
273 - CULTURAL SERVICES & FACILITIES
274 - RECREATION FUND
275 - CEMETERIES FUND
277 - MUSEUM FUND
280 - COMMUNITY DEVELOPMENT BLOCK GR
290 - TRANSIT SERVICES FUND
291 - STREET OVERSIZING FUND
292 - TRANSPORTATION SERVICES FUND
294 - PARKING FUND
400 - CAPITAL PROJECTS FUND
500 - GOLF FUND
501 - LIGHT & POWER FUND
502 - WATER FUND
503 - WASTEWATER FUND
504 - STORMWATER FUND
601 - EQUIPMENT FUND
602 - SELF INSURANCE FUND
603 - DATA AND COMMUNICATIONS FUND
604 - BENEFITS FUND
605 - UTILITY CUSTOMER SRV & ADM
800 - URA - N. COLLEGE DISTRICT
Proposed Increase to
Employer-paid Premiums
to Cover Revised 2016
Expenses
(Classified/Unclassified)
$343,416
$95
$29,635
$2,331
$1,229
$21,408
$9,922
$22,862
$3,717
$5,096
$3,929
$41,804
$945
$64,027
$10,279
$315
$8,064
$65,198
$48,891
$39,940
$14,917
$20,538
$4,410
$28,444
$4,316
$66,122
$1,103
$862,949
PPACA Full-time
Hourly Employerpaid Premiums
Less Budgeted
Amounts
$690,390
$141,630
$158,910
$22,380
$59,610
$19,860
$7,470
$47,280
$144,090
$109,230
$161,370
$64,590
$4,980
$49,680
$12,450
$9,930
$79,440
$4,980
$69,570
$1,857,840
Total
Appropriation
by Fund
$1,033,806
$95
$171,265
$2,331
$1,229
$180,318
$32,302
$82,472
$23,577
$12,566
$3,929
$89,084
$945
$208,117
$10,279
$315
$117,294
$226,568
$113,481
$44,920
$64,597
$32,988
$14,340
$107,884
$9,296
$135,692
$1,103
$2,720,789
27
2016 BUDGET REVISION REQUEST
Revision Title:
Neighborhood Services Strategic Plan and Implementation of Neighborhood Districts
Outcome:
Community & Neighborhood Livability
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source:
General Fund - Reserves
FTE Requested:
None
Ongoing:
One-time:
TOTAL Amount:
Delynn Coldiron
77.1
$0
$67,000
$67,000
Description:
A person’s place of residence is a fundamental contributor to a person’s well-being. Communities that
work to create a unique sense of place, foster strong social relationships, care about and treat
residents fairly, and share decision-making and collaborate with residents on the items of importance
to them, are highly effective in creating cities that people love.
As our community transitions due to pace and density of development, growth in population, changing
demographics, increased student enrollment and campus growth, and social pressures, it is imperative
that the City find ways to successfully navigate related challenges.
In an effort to respond to direction given from the City Manager's office to implement a best-practice
neighborhood districts/associations model, as well as to support the City's Strategic Objectives related
to Community and Neighborhood Livability, this offer funds efforts that will result in a city-wide 5-year
Strategic Plan for city neighborhoods that will focus on fostering positive and respectful neighbor
relationships, open communication, conflict resolution, and on maintaining and enhancing attractive
neighborhoods through city services. Individual components of this effort will include:
1) A city-wide community engagement study to identify how community members currently engage
with the City and to define any gaps that exist in how citizens would prefer to engage or in underserved or under-represented populations that do not or minimally engage (best practice identified as
part of our travel and research done for the neighborhood districts project);
2) A review of the existing Neighborhood Services division to explore current programs and services
delivered and to identify areas of change and/or improvement needed;
3) Definition of and implementation strategies for a best-practice neighborhood districts model; and
4) A work plan and action steps for moving forward to accomplish the goals identified through these
efforts.
Our goal is to provide meaningful, relevant, and progressive programs and services that make a
difference in the lives of our residents and result in strong neighborhood ties and community support,
increased engagement and collaboration, increased access to the City, resolution of conflict and
repairing harms done, and in beautiful and attractive neighborhoods. The strategic plan requested, as
well as the resulting work plan, are an essential piece to this and will enhance the quality of life for
Fort Collins’ citizens.
28
2016 BUDGET REVISION REQUEST
Revision Title:
Nature in the City Implementation
Outcome:
Neighborhood Livability
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source:
General Fund
FTE Requested:
1.0 FTE -
Ongoing:
One-time:
TOTAL Amount:
Contractual Environmental Planner
Lindsay Ex
None
$78,089
$0
$78,089
Description:
To successfully implement the Nature in the City Strategic Plan, this offer requests a contractual
Environmental Planner position. In concert with the Planning Department’s Senior Environmental Planner,
this position will be responsible for leading the implementation of the 49 action items outlined in the Plan
and for developing a strategy and initial implementation of the $3 million approved by the voters in 2014
entitled “Nature in the City Implementation.”
Background: In 2015, Council adopted the Nature in the City Strategic Plan, which has a vision of a
connected open space network accessible to the entire community that provides a variety of experiences
and functional habitat for people, plants, and wildlife. The Plan contains 49 action items, all of which
require a collaborative, interdisciplinary coordination to implement. In addition, the voters approved $3
million in the 2014 ballot to implement Nature in the City over the next ten years, but this funding can not
be used for staff. An anticipated 1.0 FTE was identified in the Implementation section of the plan as
nessecary to implement many of the action items.
Currently, only one Environmental Planning position exists in the Planning Department. The majority of
this position’s workload is focused on development review, as these workloads are currently at
unprecedented levels. To successfully implement the vision and policies outlined in the Plan, additional
staffing is needed.
The contractual Environmental Planner position and the Senior Environmental Planner will achieve the
following outcomes:
• Initiating the implementation of the $3 million in capital funds to begin acquisition and restoration of
properties throughout the City;
• Furthering the public/private partnerships outlined in the Plan, e.g., Poudre and Thompson School
Districts, the business sector, Homeowner Associations, etc.
• Working with the interdisciplinary staff team and Colorado State University to begin implementation of
the 49 action items outlined in the Plan, including updates to the Land Use Code, installing pilot Nature in
the City demonstration projects, completing the connectivity analysis for people and wildlife, etc.
• With our partners within the City and at CSU, the Audubon Society, Rocky Mountain Bird Observatory,
and others, we will seek outside funding to leverage City dollars.
29
2016 BUDGET REVISION REQUEST
Revision Title:
Homelessness Initiative - Street Outreach Pilot Program
Outcome:
Community & Neighborhood Livability
Expense Fund: 254 - KEEP FORT COLLINS GREAT FUND
Contact:
Beth Sowder
Package/Offer #:
Funding Source: KFCG - Other Community Priorities Reserves Ongoing:
One-time:
FTE Requested:
None
TOTAL Amount:
48.7
$0
$80,000
$80,000
Description:
As we continue to work with Homeward 2020 and other community service agencies , we recognize the
need for collaborative and innovative programs to address ongoing homeless issues.
Purpose of Offer & Why:
• Pilot program for a collaborative Street Outreach Program.
• Specific partners include: Fort Collins Police Services and Social Sustainability Department, Downtown
Development Authority, Homeward 2020, Homeless Gear, Catholic Charities, and SummitStone Mental
Health Partners.
• Best practice model identified as a priority strategy by Homeward 2020.
• Part of a multi-pronged approach to provide services to those in need while effectively decreasing the
issues and concerns in downtown business areas.
How It Will Work:
• City funding would provide "seed money" to get the program up and running as a pilot. If successful,
the City would be a partner - not sole funder - of this program. Funding from the other partners,
through stakeholder contributions and fundraising, would be expected for ongoing operation.
• Homeward 2020 would conduct a selection process to identify the administrator of the program.
• Funding would cover two full-time administrators who would oversee volunteers and coordinate with
the partners (employed by administrator, not the City).
• The Outreach Team would be available 7 days per week, and would proactively go out to areas where
people experiencing homelessness spend time (especially downtown) and respond to calls from
businesses or citizens, saving Police resources for criminal issues.
• The Team would provide a range of services to people with a focus on assisting persons with
psychiatric disabilities, individuals dealing with substance abuse, homelessness, and other unmet social
service needs including assessment, support, and active referral.
30
Expected Outcomes:
• Staff and partners are planning to use the best practices from the Burlington, VT model and modify
them to meet the specific needs in Fort Collins.
• Specific data/outcomes seen in Burlington and expected in Fort Collins include:
o Decrease in calls for service to Police
o Decrease in call frequency for high-use individuals
o Decrease in new charges for top users
o "Cost-avoidance" benefits (less Police calls for services, emergency room visits, and jail visits)
o Positive impact on other systems like court and corrections
o Greater coordination and efficiency
Additionally, the program directly supports: reducing anxiety of merchants, increasing communication,
connecting people with services, building relationships, and monitoring status of services (how many
beds available at the shelters, etc.),
The ultimate vision of the Outreach Program is:
1. A proactive, solution-oriented and collaborative approach to reduce incidents in downtown by
referring people to available and appropriate services
2. A safe downtown for everyone
3. Health and welfare of individuals and community
31
2016 BUDGET REVISION REQUEST
Revision Title:
Parks Division Competitive Hourly Wages
Outcome:
Culture & Recreation
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source:
General Fund
Ongoing:
One-time:
TOTAL Amount:
FTE Requested:
Dawna Gorkowski
98.1 and 100.1
$110,000
$0
$110,000
None
Description:
The Parks Division hourly staff is a necessity for maintaining the City's parks, trails, facilities and
downtown core area. Hourly staff contributes approximately 110,000 hours per year in labor or 58%
of total hours worked for the Parks Division. The starting wage for a Parks hourly worker is $9.00 per
hour. During 2015 the number of applicants and quality workers applying for positions has
diminished significantly. There has been a 54% decrease in applicants, the number of failed drug tests
has increased from 5 failed tests so far in 2015 compared to 6 failures over the previous two years.
The number of hourly employees returning has decreased by 31% in 2015. Hourly employees are
leaving Parks for full time positions with other City departments, PSD, and private businesses. The
wage rate Parks is able to pay is not keeping up with other departments within the City or the
business community. Natural Areas Maintenance Worker has a starting wage of $11.00/hour and
Utility Grounds Worker has a starting wage of $9.50/ hour. Walmart's starting wage is now
$10.00/hour, McDonald's average wage is over $10.00/hour and Costco's average wage is
$20.00/hour. With all the new retail businesses and the new mall being completed later in 2015, the
competition for hourly employees will only increase. This offer requests additional funding to raise
the starting wage within the Parks Division to $10.00/hour in order to attract and retain quality hourly
staff.
32
2016 BUDGET REVISION REQUEST
Revision Title:
Spring Canyon Playground Surfacing Replacement
Outcome:
Culture & Recreation
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source:
KFCG - Parks and Recreation Reserves
Ongoing:
One-time:
TOTAL Amount:
FTE Requested:
Dawna Gorkowski
98.1
$0
$208,000
$208,000
None
Description:
Spring Canyon playground, Fort Collins' premier play space, was built in 2007. Part of what makes this
playground so unique is the accessible poured-in-place surfacing throughout the playground. In a
typical playground, poured-in-place surfacing has a life span of approximately 10 years. However, with
Spring Canyon being our most popular playground in the city, the surfacing is reaching the end of its life
span much earlier than expected. The high use has accelerated the wear of the surfacing causing cracks
and holes to form in the surfacing. The areas where the cracks and holes have formed are subject to an
increase in the amount of vandalism to the surfacing itself. This unforeseen wear and vandalism are
currently affecting proper and safe impact attenuation of the surfacing. Parks has patched the worn and
vandalized spots in many places, but this is causing inconsistencies in the surfacing which also
contributes to a decline in the impact attentuation. The wet weather this spring along with some
localized flooding in the area has also caused some of the subsurface to move and wash away
contributing to a decline in the impact attenuation in some areas. Proper impact attenuation is
important in preventing serious head injuries in playgrounds. This request is for funding to remove and
replace existing sub-base where necessary and complete removal and replacement of the poured-inplace surfacing in both play areas.
Funding for the Parks lifecycle program has not increased for new park development since Fossil Creek
Community Park was opened in 2003. The current lifecycle budget cannot absorb a project of this
magnitude because current funding is needed to address deficiencies in older parks.
33
2016 BUDGET REVISION REQUEST
Revision Title:
Collindale Golf Course Irrigation Control Software Upgrade
Outcome:
Culture & Recreation
Contact:
Expense Fund:
500 - GOLF FUND
Package/Offer #:
Funding Source:
Golf Fund Reserves
Ongoing:
One-time:
TOTAL Amount:
FTE Requested:
None
Dawna Gorkowski
76.1
$0
$30,000
$30,000
Description:
This offer requests the use of an unanticipated increase in reserves in the Golf Fund at the end of
2014 to be used to upgrade the Collindale irrigation control software system. The new system will
save 6 to 8 million gallons of water per year, save wear and tear on pumps, reduce electricity costs
and increase control over the irrigation system.
34
2016 BUDGET REVISION REQUEST
Revision Title:
Downtown Parking Structure - Debt Service
Outcome:
Economic Health
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source: General Fund - One Time
FTE Requested:
None
Ongoing:
One-time:
TOTAL Amount:
M Beckstead
None
$0
$900,000
$900,000
Description:
A Public/Private partnership with the Bohemian Foundation is planned to support a new parking
structure adjacent to the planned downtown hotel. The parking structure is anticipated to be three
stories in height and include approximately 320 parking spaces. The project will be reviewed with the
Council Finance Committee in September and the entire Council later this year after a full review by the
Planning and Zoning Board. It is anticipated the Bohemian Foundation will build the parking structure
in 2016 and after construction is complete, the City will purchase approximately 2/3 of the spaces for
public use while the hotel partners will own the remaining 1/3 of the spaces. A condo type ownership
structure is anticipated with shared costs based on ownership percentages for the operations and
maintenance of the garage. It is anticipated the City will need to borrow approximately $7.5M to
$8.0M for the property purchase of 2/3 of the parking spaces. Staff is evaluating the risks and tradeoffs
of borrowing in late 2015 to avoid a rise in interest rates anticipated in late 2015 and 2016 even though
the purchase is not anticipated until late 2016. In the event the bond is issued in 2015, staff requests
funding for the annual debt service on a 10 year bond of approximately $900k. Funding is considered
one-time because long term funding starting in 2019 is anticipated with 1) the payoff of current debt
for the Civic Center Parking garage in 2018 freeing up $1.1M of General Fund debt service capacity that
can be used to fund this debt in 2019. Staff is also working on an agreement with the DDA to provide
$275K a year in debt service support starting in 2019 that is also tied to the payoff of the Civic Center
Parking Structure debt.
35
2016 BUDGET REVISION REQUEST
Revision Title:
Increase to Claims Settlement Account within the Self Insurance Fund
Outcome:
Economic Health
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source:
General Fund - Reserves
FTE Requested:
None
Ongoing:
One-time:
TOTAL Amount:
Kelly Bernish
None
0
$600,000
$600,000
Description:
During 2015, we experienced higher than anticipated payouts on claims incurred over this and
previous years that resulted in payment of substantial legal fees and claims settlements. The
Colorado Oil & Gas (COGA) case at $184,000, ACLU Case at $134,000, a recent citizen settlement of
$113,000, the deductible on two trucks, and several high dollar workers compensation cases from
previous years paid in 2014 and 2015 are examples. The budgeted amount of $1,275,000 in 2016,
based upon our experience in 2015 and previous years, will not be adequate to cover 2016 losses
and all claim payments incurred in 2016 regardless of their year of occurrence. The projection is
based upon a review of 5 years plus current year to date claims information as well as external
actuarial reports. As an internal services department, revenue in the form of department
allocations, is not adequate to cover claim payments which will be addressed in the next budget
cycle. In 2014, a supplemental appropriation late in the year of $610,000 was required and it is
anticipated a similar supplemental appropriation may be required in 2015.
Historically, additional appropriations for claims has been supported by available fund balance within
the Self Insurance Fund. An increase in the actuarial liability performed by Milliman of $750,000
due to higher claims in previous years’ experience, the prior year supplemental appropriation and
the additional legal and claims settlements over the past several years has reduced the Risk fund to
the point that there is no longer available fund balance to support the higher claims we are
experiencing.
In the 2013 and 2014 budget, funding from the General Fund to the Self Insurance Fund was reduced
by $500,000 given the fund balance available within the Self Insurance Fund. Given the recent high
level of claims payments, the funding from the General Fund needs to be restored. It is anticipated
the inter-department rates will be adjusted to generate enough revenue to maintain the Self
Insurance Fund.
36
2016 BUDGET REVISION REQUEST
Revision Title:
IT Open Data Portal - First Phase Implementation
Outcome:
High Performing Government
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source:
Data and Communications
Ongoing:
One-time:
TOTAL Amount:
FTE Requested:
None
Dan Coldiron
9.1
$60,000
$40,000
$100,000
Description:
The expectations for expanded transparency and improved access to data for the public necessitates
that the City improve its online offerings. In addition, there has been significant maturation in the
technology available to meet the increasing demands for transparency and data access, which has
also resulted in growing expectations for the City's data to be available through a variety of means,
devices and formats, internally as well as externally.
This request would provide the City with the opportunity to implement the first phase of an Open
Data Portal that could be expanded to meet the full expectations and needs of the community. The
software subscription/licensing costs are estimated to be approximately $60,000 per year for an
Open Data Portal platform. An additional $40,000 is requested to facilitate the implementation of
the portal platform, which would include consulting services to train and assist staff in the process of
configuration of the portal and initial data preparation and loading.
The implementation of the first phase of an Open Data Portal platform is expected to be
accomplished with existing staff and would target data sets that have already been prepared and
developed for sharing with the public, such as the data used within the City's OpenBook
environment. Development of the platform to share a large number of data sets from across the
organization and to fully exploit the advanced features and modules available in robust open data
platforms will likely require further licensing and maintenance costs and possibly additional staff
resources.
37
2016 BUDGET REVISION REQUEST
Revision Title:
City Clerk Licensing Coordinator
Outcome:
High Performing Government
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source:
General Fund
FTE Requested:
1.0 FTE - Contractual Licensing Coordinator
Ongoing:
One-time:
TOTAL Amount:
Rita Knoll
116.3
$68,917
$5,700
$74,617
Description:
This position is requested to adequately resource medical/retail marijuana licensing functions, and to
supplement resources currently devoted to liquor licensing.
Medical marijuana licensing was added to the duties of the Chief Deputy City Clerk in 2010. Retail
marijuana licensing was added in 2014. Both are extremely time consuming, and have severely
impacted the essential duties of the Chief Deputy. This position would relieve the Chief Deputy of
the majority of the tasks associated with marijuana licensing, with oversight and review by the Chief
Deputy.
As workload allows, this position will also assist with liquor licensing functions and be fully trained to
handle liquor licensing in the absence of the Deputy City Clerk. Currently, there is no backup for the
Deputy City Clerk on liquor licensing processes. Liquor licensing tasks will be supervised by the
Deputy City Clerk.
Funding this position will improve service to marijuana business owners who are currently waiting as
much as nine months to have their applications processed and approved. It will provide applicants
and licensees with a staff person dedicated to their needs -- one that is more accessible than the Chief
Deputy. The new FTE will be able to focus on becoming familiar with the multitude of laws and
regulations, streamlining and documenting licensing processes, and participating in staff teams. The
new FTE will also be able to develop a strong relationship with the Police Services officer assigned to
marijuana, which will come on board in late 2015.
2014 revenue from marijuana application and licensing fees exceeded $84,000. Sales tax revenue
for medical marijuana was over $227,000 in 2014. Retail marijuana generated over $138,000 in sales
tax revenue in the last two quarters of 2014.
38
2016 BUDGET REVISION REQUEST
Revision Title:
Police Property and Evidence Technician
Outcome:
Safe Community
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source:
KFCG - Police
FTE Requested:
1.0 FTE - Property Evidence Technician
Ongoing:
One-time:
TOTAL Amount:
Greg Yeager
56.4
$73,726
$0
$73,726
Description:
The deployment of over 60 body-worn video recorders on police officers produces over 200
gigabytes of data per month with retained storage exceeding 2 terabytes. In line with a national
movement for safety and accountability, the agency plans to expand the camera program in 2016
and into 2017 with the eventual goal of outfitting every uniformed officer. However, that will cause
an immediate need for increased hardware/software support and evidence handling. Body-worn
video has an immediate positive impact on safety, accuracy of reporting, and accountability for
actions (both officers and citizens).
The Property & Evidence Unit has an immediate need to increase civilian staffing to address this
swell of digital evidence (body-worn video, audio, photographs) that must be taken in, labeled,
audited, copied, and transferred to other organizations such as the district attorney's office. Hiring
and training a technician can take up to one year. Currently, 15,275 of the 81,570 items of FCPS'
property/evidence are digital video and one P&E Technician is kept busy with that data. Without
this increase in staffing, the proposed expansion of the camera program will have no support.
The Police Property and Evidence Technician costs were obtained from Human Resources. A hiring
process for another vacancy will establish an eligibility list, so the position could be filled
immediately. This position was requested during the BFO process for the current budget, but fell
below the line.
39
2016 BUDGET REVISION REQUEST
Revision Title:
Additional Bus Stop Improvements for ADA Accessibility
Outcome:
Transportation
Contact:
Expense Fund:
290 - TRANSIT SERVICES FUND
Package/Offer #:
Funding Source:
KFCG - Other Transportation Reserves
FTE Requested:
1.0 FTE - Contractual
Ongoing:
One-time:
TOTAL Amount:
Emma Belmont
None
$275,000
$0
$275,000
Description:
This offer is being submitted to accelerate Transfort's planned implementation of ADA-accessible bus
stops under Building on Basics II from a combined 20 stops per year to 40 stops per year. Based on
Community and City Council feedback, implementation of ADA-accessible bus stops need to be
prioritized and this offer lays out the framework to accomplish this task.
Based on recent estimates, approximately 330 bus stops in Transfort’s service area are not compliant
with ADA standards and many of these are located in areas with limited neighborhood sidewalks. Bus
stop improvements alone range between $2,500 to $30,000 depending on the available public right-ofway (ROW) and other site specific characteristics (an average is estimated at $10,000 for each stop).
Stops on the low end are generally within public ROW and have adjacent neighborhood sidewalks to
connect with. Stops on the higher end are in areas with no neighborhood sidewalks and often require
negotiations with private property owners before any accessible infrastructure can be installed. The
current Capital Improvement Plan assumes the City/Transfort will upgrade 10 of the 20 bus stops
planned to be improved each year, which would cost approximately $100,000. The remaining 10
stops would be upgraded by either private development or by Lamar Advertising Company. The 10
City stop improvements can be accomplished through existing staffing levels for both Transfort Project
Management and Engineering’s Inspector Staff workloads.
This offer provides funding to increase the number of bus stop improvements to approximately 40
stops in 2016 - a 50% increase to the current Capital Improvement Plan. Funding would flow directly
to infrastructure improvements and to the hiring of a full-time contractual engineer to manage and
provide design & property acquisition planning support for the project as current resources are
limited.
This offer is scalable in both infrastructure and personnel expenditures. If funded, wholly or partially,
planned improvements will be somewhat dependant upon vendor scheduling.
40
2016 BUDGET REVISION REQUEST
Revision Title:
Annual Operations for the Community Recycling Center (CRC)
Outcome:
Environmental Health
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source:
KFCG - Other Community Priorities
Ongoing:
One-time:
TOTAL Amount:
FTE Requested:
Lucinda Smith
None
$380,000
$0
$380,000
None
Description:
A public collection site for a Community Recycling Center (CRC) for hard-to-recycle-materials is one of the
City's strategies for achieving its goal of Zero Waste. A “full-fledged” CRC would entail the following
elements:
• Develop CRC at Timberline site
• Move Rivendell Recycling Center to the new location
• Open full-fledged hard-to-recycle-materials collection area with on-site staffing
• Establish funding source for ongoing operations and maintenance expenses
Funding has already been identified and secured to construct the site, should City Council decide to move
forward with it.
This mid-cycle budget offer requests funding to support part of the operational costs of a full-fledged
Community Recycling Center. In 2015, staff and the potential site operator developed a Profit & Loss
(P&L) analysis that applies a set of key assumptions (e.g., number of visits, volume of material collected)
and forecasts costs to run the facility. Based on these assumptions, the net annual operating expenses
could be in the range of $200-$400K per year. It was originally envisioned that a private contractor would
be able to operate the site and cover operational expenses by charging a small gate fee. However, the
market for recyclable commodities has changed recently. It is likely that a small gate fee will not cover all
the operational expenses, and City support will be needed to provide this innovative service to the
community.
This offer requests $380,000 in 2016 to cover conservative estimates of net annual operational funding
support needed from the City to fund operation of the site.
Providing annual funding for operating the CRC will provide
• social benefits to the community,
• support the culture of recycling that is critical to achieving progress on zero waste goals and the Climate
Action Plan Framework,
• preserve the site for the unique opportunities it presents for future development of small scale waste-toenergy or expanded resource recovery, and
• avoid an estimated 2,350 metric tons GHG in the first year, above the current Rivendell GHG benefits.
41
2016 BUDGET REVISION REQUEST
Revision Title:
Design Funding for the Regional Training Campus
Outcome:
Safe Community
Contact:
Expense Fund:
100 - GENERAL FUND
Package/Offer #:
Funding Source:
General Fund - Reserves
Ongoing:
One-time:
TOTAL Amount:
FTE Requested:
None
Cory Christensen
None
$0
$810,000
$810,000
Description:
Fort Collins Police Services has been working in partnership with Loveland Police to bring a
Regional Training Campus (RTC) to Northern Colorado. This campus will provide a venue
necessary to handle a variety of training needs for both agencies. The campus will include a
venue for firearms and emergency driving training. The amount requested here will cover 50%
of the total desgin costs for the project. There is a possibility of adding Larimer County as a
third capital partner which would reduce the designs costs due to a 1/3rd split for the design
costs. The design portion of the project will take place in 2016 with construction of the facility
possibly happening in late 2016 to early 2017.
42
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Mike Beckstead, CFO
Travis Storin, Accounting Director
Date: August 24, 2015
SUBJECT FOR DISCUSSION Use Tax Utilization Policy
EXECUTIVE SUMMARY
The current trajectory for 2015 suggests that we will have $7.1M in net Use Tax receipts above
budget. Of this, $4.1M will go to the General Fund. Staff has included this as available revenue
in the 2016 Budget Revision Process. Past Councils have not adopted a formal policy on this
revenue, so the excess over budget defaults to one-time funding in the budget process.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Staff seeks either confirmation of current practices or input on policy considerations if a more
prescriptive policy is desired.
BACKGROUND/DISCUSSION
Use Tax receipts, net of rebates, have grown increasingly volatile in recent years, including an
unusually high growth year in 2014. City Staff budgets conservatively to minimize the risk of a
revenue shortfall.
ATTACHMENTS Use Tax Final.pptx
Use Tax Utilization Policy
8-17-15
Travis Storin, City Finance
Executive Summary
• Significant volatility driven by the underlying
purchase activity of the business community
• Conservative budget projections minimize the
risk of a revenue shortfall….
Budget Act/Est
2013
$14.4M $18.0M
2014
14.5
26.2
2015
18.7
25.8
2016
17.0
17.0
• 2014 – unprecedented growth in Use Tax
revenue compared with historical actuals
Historical Use Tax Revenue
(in millions)
$30.0
Budget
Actual
$25.0
$20.0
First Year
of KFCG
(2011)
$15.0
$10.0
$5.0
1997
2007
2015
2
Historical Revenues vs. Budget
• 2015-2016 Budget includes a “floor” of
$14.5M that is used for on-going activities
2015-2016 Use Tax Revenues Forecast
(in millions)
$30.0
$25.0
• Revenue above the floor supports one-time
activities
$20.0
$15.0
• Conservative 2015 projection is $25.8M, or
$7.1M above budget
$4.2
$10.0
$5.0
• Current 2016 projection conservatively held
at $17M
$7.1
$14.5
$2.5
Included
in Budget
$14.5
$0.0
2015
Revenue Budget Floor
2016
One Time Revenue Budget
Projected Excess over Budget
3
Background
Currently Enacted Rates
through 2025
0.25%
each
0.85%
• Enacted legislation routes 58% of all
Use Tax to the General Fund
• The remaining funds are restricted by
definition
2.25%
• The General Fund’s share of the
additional $7.1M of 2015 revenue is
$4.1M.
• Staff has included this as available onetime revenue in the 2016 Budget
Revision process
Base Rate (General Fund)
Capital Projects (BCC, BOB 1, BOB 2)
Natural Areas
KFCG
Street Maintenance
• Note – certain types of equipment
purchases exclude KFCG
4
Current Practice
• Staff conservatively forecasts Use Tax knowing revenue above budget
will flow to fund balance and be available to Council in the next budget
• While inflows of Use Tax are uniquely accounted for, additional
revenue above budget is mingled with other revenue sources in the
year end unassigned fund balance
• Staff includes all GF unassigned fund balance as available one-time
funding in the Budget process each year
• Council determines best use during competitive BFO process
5
Policy Considerations
Council currently has a great deal of flexibility to appropriate the
General Fund’s portion of Use Tax in excess of budget
Considerations:
• All budget requests compete equally for available additional funding
• Current practice provides current and future councils flexibility – A prescriptive
policy would narrow flexibility
• A prescriptive policy could prioritize focus on longer term financial needs
• Set asides for large capital projects – build up funding over time
• Accelerate debt payments or fund pension liability
• Add to current minimum fund balance for future revenue downturns
6
Policy Direction
Committee Discussion
7
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Mike Beckstead, Chief Financial Officer
Peggy L. Streeter, Interim Revenue Manager
Date: August 24, 2015
SUBJECT FOR DISCUSSION
Taxability of sales made over the internet and cloud based products.
EXECUTIVE SUMMARY
The presentation gives background information on the taxability of items sold over the internet
as well as cloud based products.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
n/a
BACKGROUND/DISCUSSION
Council requested clarification on the specifics of the City of Fort Collins’ ability to capture
sales tax on items purchased over the internet. If an organization is engaged in business in Fort
Collins they are required to collect the City of Fort Collins sales tax. In general, if a business has
a physical presence in the City of Fort Collins, they are engaged in business. The following are
examples of situations that meet these guidelines:
•
•
•
Brick and mortar
Rents or leases tangible personal property to customers in Fort Collins
Delivers items in own vehicle (not 3rd party carrier)
If a business does not meet these requirements, such as Amazon, they are not required to collect
City of Fort Collins sales tax.
A newer topic of discussion is the taxability of cloud services. The City of Fort Collins is
currently taxing electronically delivered products such as movie streaming, software, movies and
music.
Although a business may not be required to collect sales tax on the items purchased, the product
is still taxable. Therefore, use tax will be due on these products if sales tax is not paid.
Conclusion
The City of Fort Collins is currently taxing these items; however, the taxability of electronically
delivered movies to movie theatres is being reviewed in district court. In addition, the taxability
of software has been protested by an auditee and will be heard at a hearing in the near future.
ATTACHMENTS
1. PowerPoint Presentation
Internet Sales/Cloud Based Products
Council Finance Committee
August 24, 2015
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Taxable Transactions
Municipal Code
• Tangible personal property or taxable services
purchased, leased, rented, sold, used, or stored in the
City, including the license to use.
• Taxable services include telecommunication, gas
& electric, and lodging
Application of the Code
• Product purchased determines taxability not the
medium of delivery.
2
Sales Tax Collection Requirements
• As defined by Code, an organization engaged in
business is required to collect sales tax.
– Engaged in business in the City shall mean
performing or providing services or selling, leasing,
renting, delivering or installing tangible personal
property for storage, use or consumption within the
City.
• This applies to businesses located in Fort Collins or
other jurisdictions, as well as internet sales.
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Engaged in Business
• Brick & Mortar
– If a business has a physical location in Fort Collins,
they are required to collect Fort Collins sales tax on
sales made in the store as well as over the internet.
• Engaged in business
– Best Buy
– Macy’s
• Not engaged in business
– Amazon
– Dillards
4
Engaged in Business (cont)
• Delivers product sold to a customer in Fort Collins
in vendor owned vehicle
– If business does not have a physical location,
but delivers product in their vehicle they are
engaged in business
• Engaged in business
– Crate & Barrel
– American Furniture Warehouse
• Not engaged in business (3rd party delivery)
– Pottery Barn
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Engaged in Business (cont)
• Rents or leases tangible personal property to customers
in Fort Collins .
– Maintain ownership of products leased or rented to a
customer in Fort Collins.
• Netflix
• All American Rent to Own (furniture)
• Sunstate Equipment Rental
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Application of Code
• Products are taxable regardless of delivery method
– Software
• Prewritten canned software
– Initial license agreement
– Maintenance agreements that include software
updates
– Movies rented by movie theatres
– Downloaded movies/videos and music
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Summary
• Current state
– Taxability of movie rentals delivered electronically
currently in district court
– Taxability of electronically delivered software will be
going to a hearing in the near future
• S 698 (March 2015) - Marketplace Fairness Act of 2015
would “restore States’ sovereign rights to enforce State
and local sales and use tax laws.”
• HR 2775 (June 2015) – Remote Transaction Parity Act
(RTPA) would “grant State and local sales and use tax
laws on remote transactions.”
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