HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/12/2022 - SUSTAINABLE FUNDING PLANDATE:
STAFF:
April 12, 2022
Jennifer Poznanovic, Project and Revenue Manager
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
Sustainable Funding Plan.
EXECUTIVE SUMMARY
The purpose of this work session is to discuss specific identified funding needs as a first step in determining
potential revenue sources.
Four specific funding needs have been identified through masterplans and Council and commun ity priorities.
These include parks and recreation, transit, housing and climate plans. Identified annual shortfalls range from six
to ten million per need.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. What questions does Council have on the identified funding needs?
2. What questions does Council have on process?
3. Does Council agree with proposed next steps?
BACKGROUND / DISCUSSION
Over the past 2-3 years, masterplan developments and updates have identified clear funding need s in the areas
of parks and recreation, transit, and housing. Along with these needs and knowing the criticality of the City climate
action goals, Council Finance Committee has asked for climate revenue needs to be included in revenue
conversations as well. Annual shortfalls range from six to twelve million dollars per area.
The Parks and Recreation area and the Transit area have long -term plans that highlight specific operational goals
and a focus on asset management.
New parks have dedicated funding through capital expansion fees to be designed and built, however the
maintenance and future updates are currently reliant on general fund dollars which are unable to meet the needs.
This has resulted in much deferred maintenance and a lack of infrastructure updates to keep pace with
community desires and trends.
Currently, 25 percent of transit dollars come from the general fund. While transit is an area that is by nature
subsidized, continuing this model locally creates limitations on transit and a constrai nt to general fund dollars.
Affordable and attainable housing is a Council and a community priority. The City has a goal of reaching 10%
housing stock as affordable by 2040 (currently at 5%). It is recognized that working towards, or achieving, this
goal will require multiple funding strategies both local, private, non-profit, and federal and that the City piece of
this funding is limited without additional or dedicated revenue.
The Our Climate Future comprehensive plan and identified “Big Moves” have ou tlined tactics to help achieve the
2030 climate action goals. Implementing and accelerating these actions would require approximately six million
dollars annually.
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Staff is working to develop workplan and process to discuss and address revenue needs. Thi s plan will include
on-going Council Finance meetings, work sessions with the full Council, community engagement, and ultimate
implementation.
The following bullets highlight workplan considerations:
• Clearly define and articulate revenue needs and leve l of service considerations
• Thoroughly research funding options including impacts and the context of existing and potential new tax
measures (local and regionally)
• Recognize and work within the desire to keep overall tax burden as low as possible
• Consideration of existing dedicated tax renewals and associated election timelines
PARKS AND RECREATION
The Parks and Recreation Master Plan was adopted on January 19, 2021, and incorporated a year of extensive
staff, community, and stakeholder participation. The funding section of the plan features a primary goal to
enhance the financial sustainability of Parks and Recreation. While existing operations and maintenance budgets
are close to what is needed, there are no dedicated funding sources for capital in vestment. The funding gap
identified by the consultant is captured in the table below:
Existing Funding ($M) Operations & Maintenance Infrastructure Replacement
Parks (Majority General Fund) $12.3 $0.5
Recreation (Program Revenue &
General Fund)
$11.3
Total $23.6 $0.5
Needed Funding ($M) Operations & Maintenance Infrastructure Replacement
Parks $13.3 $8.7
Mini Parks $0.2
Plazas $0.1
Urban Parks
Neighborhood Parks $2.5
Schoolside Parks $1.5
Community Parks $3.9
Special Use Parks $0.5
Recreation $11.3 $2.3
Planting Refresh $0.6
Total $24.6 $11.6
Funding Gap ($M) Operations & Maintenance Infrastructure Replacement
Parks $1.0 $8.2
Recreation $0.0 $2.3
Planting Refresh $0.6
Total $1.0 $11.1
• Operations and Maintenance (O&M) - the daily tasks needed to keep parks and recreation facilities running
and minor repairs to capital assets to keep them in a good state of repair. This includes regular care like water
management/repair, turf care, trash and litter, playground inspections and minor upkeep. Currently, funding
for these types of activities is close to the full need, with just $1M of annual gap identified in the recent master
plan.
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o O&M for parks is currently funded by the general fund as part of ongoing park maintena nce offers
submitted through the Budgeting for Outcomes process .
o O&M for recreation is funded through program revenues and some general fund contributions. Fort
Collins recreation department has a higher than typical cost recovery rate.
• Infrastructure Replacement - includes critical maintenance projects or repair of existing assets -when regular
maintenance can no longer keep them in a good state of repair-safety and ADA (Americans with Disabilities
Act) improvements, and existing debt service obligations. Many of these types of improvements typically
require one-time funding and are not likely to increase annual operations and maintenance costs. In many
cases, these types of projects may reduce annual operations and maintenance costs. It may also inclu de
strategic changes to existing parks or recreation facilities to address the unmet needs of the community,
including adding features such as play fields, shade structures, adult fitness equipment, covered picnic
shelters, and trail loops to extend recreation opportunities. These types of improvements typically require one-
time funding and may trigger slight increases in annual operations and maintenance costs, depending on the
nature of the improvements. Funding for these activities has a significant gap.
The Parks and Recreation master plan identified primary goals of providing equitable access to parks and
recreational experiences. By investing in ongoing infrastructure replacements, community members will
experience a more consistent level of service across existing amenities, while the City minimizes costs associated
with the need for a major refresh.
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TRANSIT
Transit Budget - Current State
Amount: The 2019 operational budget for Transit was approx. $17.5M.
Operational Budget Funding Sources Est. Amount
Federal ~ $4.3M
State ~ $200K
CSU Contract ~ $2.1M
Local Funding ~ $10.9M
Total $17.5M
• Local match funding sources include fares/fees, investment earnings, other intergovernmental
reimbursements and other smaller miscellaneous revenue sources.
• Estimates for future operation needs assume a 25% federal match.
Capital Projects
• Amounts for capital projects vary widely year over year.
• The minimum federal match is 80/20 (grant/local).
• Recent federal communication has indicated that future successful grant applicants will have higher local
match amounts.
• Estimates for future capital needs assume a 50% federal match.
• Total anticipated expenditure for the Transit Master Plan (TMP) is $270M - $308M. At 50% grant match, this
results in an additional local match need of $135M - $154M or $7.7M annually over twenty years.
Estimation of Funding Need - What is the gap?
Staff estimates the gap between current funding levels and the annual funding need to average $7.7M annually in
capital project needs over the next twenty years. At the conclusion of twenty years, an additional annual need of
$9.8M for operations and maintenance is anticipated. Assuming an average need of approximately $9.8M over
the next twenty years, allows for the anticipated total capital expenditure of approximately $154M in local funds
and a corresponding incremental increase to the additional operational need of $9.8M annually.
Type Assumed federal
support
Timeline Est. local new
funding need
Type
Capital 50% Over 20 years $7.7 million annually One-time
Investment
Operational 25% Slow build to 20-year
total
$9.8 million annually in
20 years
Ongoing
investment
What would the revenue be used for?
Capital Projects & Fleet Improvements to construct 3-4 Bus Rapid Transit (BRT) routes, build electrification
charging infrastructure, purchase electric busses, and build mobility hubs.
Operations & Maintenance Expansion to provide double the annual service hours, operate high frequency
routes, and operate new routes such as the 3-4 additional BRT routes.
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HOUSING
Affordable Housing Funding - Current State
Source Est. Amount
Affordable Housing Fund (AHF) $1,000,000
HOME (Federal) $725,000
CDBG (Federal) $750,000
Affordable Housing Capital Fund (AHCF/CCIP) $500,000
Total $2,975,000
Amount: $1.5-3 million in funding annually; recommendations from Housing and Human Services Funding Board
with approval by Council. 2022 Revenue sources and amounts:
• Funding history for AHF, CDBG and HOME: <https://www.fcgov.com/socialsustainability/funding>
Funding guidelines:
• Leverage funding alongside resources from tax credits, private investment, etc. at 1:10 or better.
• Focus direct investment on the lowest income levels, higher priority to projects serving lower AMI (for
example, permanent supportive housing for residents making 0-30% AMI)
Estimation of Funding Need - What is the gap?
The overall community funding need for affordable housing is far larger than the City could satisfy on its own;
however, the City’s contribution plays a critical role. One unit of housing costs about $330,000 to build, and one
typical affordable housing project of 80-100 units can cost $25-30 million or more. To build 282 units per year (the
City’s production target), the total cost is over $93 million each year.
Historically, the City’s role has been to fill funding gaps and leverage other funding sources to help projects “cross
the finish line.” The City’s current ability to support projects is limited by the small amount of funding allocate d to
affordable housing. In addition, the City currently has very small dedicated funding source (CCIP allocation,
expiring in 2025) for other important housing initiatives like the Land Bank and fee credit programs.
From 2015-2020, the average City subsidy for affordable housing projects was $39,000 per unit. This is a helpful
metric for estimating the gap between current funding levels and funding need, assuming that $39,000 in City
investment will continue to yield one unit of affordable housing. Using this assumption, staff estimates the City
funding gap to be $8-9.5 million annually. Accounting for the expiration of the CCIP tax in 2025 ($500k) increases
this gap to $8.5-10 million annually in additional revenue needed, or $10-11.5 million total annual funding.
Current City
funding levels
(low/high)
Expected affordable production
with current City funding (current
funding/$39,000)
Gap (282 units per
year - expected
production)
Est. funding need from
City (gap x $39,000)
$1.5 million 38 units 244 $9.5 million
$3 million 77 units 205 $8 million
The City is also about 700 units behind in affordable housing production from 2015 -2020. This calculates to
approximately $27 million in deferred funding .
What would the revenue be used for?
• Expanding the current Competitive Process to better support projects seeking to: acquire land, develop
housing, preserve existing housing, and support residents.
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• Expanding or initiating additional City-led efforts such as: acquiring land bank properties, extending
affordability restrictions, expanding eligibility for fee credits, developing incentive programs (energy efficiency,
affordable housing preservation, etc.), and other innovative approaches (middle income, mixed income, etc.).
CLIMATE
The Fort Collins community and its elected leaders have long put a high priority on being a regional, national, and
global leader in fighting climate change. From the City's first Climate Action Plan through to the adoption of the
Our Climate Future (OCF) plan last year, Fort Collins continues to be a municipality on the leading edge of local
climate action.
Our Climate Future implementation intensifies our community efforts to achieve three primary environmental
goals:
• Reduce 2030 greenhouse gas emissions by 80% below 2005 baseline levels;
• Provide 100% renewable electricity by 2030 with grid and local sources; and
• Achieve zero waste, or 100% landfill diversion, by 2030.
To reach and exceed the 2020 greenhouse gas (GHG) emissions goal, the focus was primarily on accel erating
and scaling up ongoing efforts. To achieve the 2030 goals for GHG reductions, renewable electricity, and zero
waste fundamental transformation must be undertaken to engage new partners and resources. In short, we
cannot achieve these goals with only the City as the primary driver of initiatives. OCF is a framework that
envisions new models of community partnership and leadership to help scale action and resources so all can
benefit from the vision of a sustainable Fort Collins.
Historical analysis of investment needs for climate efforts have focused primarily on mitigation, or the reduction in
emissions that are included in the annual community carbon inventory. Moving forward, Fort Collins is evolving to
expand this focus to include resilience (aka climate adaptation) and equity (aka environmental justice), which are
more difficult to quantify yet equally as important for the long-term success of our efforts.
Our Climate Future recognizes the nexus between these intersecting parts of the system. H ousing is a good
example of the mitigation-resilience-equity nexus between:
• Climate mitigation (high housing costs increase commuting and transportation emissions);
• Climate equity (BIPOC and low-income communities are disproportionately impacted by rising housing costs);
and
• Climate resilience (stable, efficient housing positively contributes to one’s ability to respond and recover from
a disruptive event).
To meaningfully address one element of this nexus, all must be considered. Thus, the OCF path ways and funding
needs described below are inclusive of all three.
Defined Pathways to Fort Collins Our Climate Future Goals
The commitment of the community in achieving climate goals has resulted in effective ongoing programs, services
and initiatives by City departments and partner agencies reflected in a 2020 emissions reductions goal showing a
24.5% reduction compared to 2005 levels.
Positive results can be traced to dedicated resources and defined pathways:
• Platte River Power Authority has added significant wind and solar resources to the electricity portfolio to reach
an over 50% non-fossil electricity mix and a plan showing a pathway to 90% non-carbon by 2030.
• Utilities Energy Services customer facing programs are resourced at over $4.5M an nually. Another over $2M
provides for solar energy purchased from local systems. In addition, Platte River’s budget provides funding for
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efficiency programs. Together these funds put Fort Collins at the leading edge of resources for supporting
customers to manage their electricity use.
• The Community Recycling Ordinance, effective since June 30 2021, significantly increases waste diversion by
including required recycling service for all multi-family and businesses, seasonal yard trimmings collection,
and grocer composting.
Continued funding and implementation of existing and emerging efforts through the City’s Budgeting For
Outcomes (BFO) process are considered an essential baseline for the following discussion of potential new
funding mechanisms.
Undefined Pathways to Accelerate Our Climate Future Progress
To identify gaps in resources and funding that will be needed to continue significant and lasting progress, staff
considered the following:
• Much of the incremental changes needed can be addressed through BFO. Substantial new funding will be
needed to jump start strategies for medium to long-term infrastructure changes and large-scale investments.
• Though climate action can be viewed separately from Housing Affordability, Parks & Recreation, and Transit,
each of these areas work in concert with climate action and are reflected in the Our Climate Future plan.
• Our Climate Future articulates commitments across climate resilience, equity, and emissions reduction, the
nexus of which requires substantial funding and new partnerships and shared leadership.
A forecast of the community climate inventory in 2030 identified natural gas use, petroleum for vehicles and
organic waste as the three areas where new pathways and funding will be needed to rapid ly advance towards the
2030 milestone year.
Based on these factors, staff recommends that any new climate revenue discussions focus on the following
specific areas (see Table below):
• Community-scale solid waste infrastructure (e.g., regional compost facility.) is needed to make real progress
on the road to our zero-waste goal. Although there are strong partnerships and agreements in this area,
infrastructure has been slow to break ground and new funding sources could help.
• Natural gas use reductions and the long-term initiative to electrify building space and water heating is key.
Annualized funding values in the table below are based upon costs from the OCF analysis (March 2021) and
rough estimates for infrastructure needs and the portion covered by an incentive model.
o Requirements-based initiatives such as building performance standards, rental licensing and real estate
listing requirements are relatively low-cost to the City and can provide significant emission reductions.
o Initiatives to electrify building space and water heating will require very significant investment. While
traditional utility incentives can play a small role, there are not sufficient system benefits to pay for the
necessary investment. Tens of thousands of homes will r equire upgrades to electrical panels and utility
service wires.
• Ground travel emissions reductions will require reduced driving of gasoline and diesel vehicles through
transit, land use and transition of the community fleet of vehicles to electric. Ann ualized funding values in the
table below are based upon costs from the OCF analysis (March 2021) and rough estimates for infrastructure
needs and the portion covered by an incentive model.
o The transition to electric vehicles will require efforts to expand charging infrastructure.
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o Reduction of ground travel emissions can also be achieved through expansion of the city’s bicycle and
pedestrian network, in conjunction with increased and expanded transit services.
• Climate resilience initiatives seek to respond to the way climate change is already being experienced in Fort
Collins. Adapting to these environmental changes will be an important and necessary part of climate action.
Local investments can range from updated preparedness plans to building com munity resilience hubs to
strengthening personal, community, and regional networks.
Climate equity work and community partnerships are critical to successfully transform our systems to be carbon
neutral, renewable, and zero waste. One example of an investment that could be made with new climate revenue
is to subsidize residential energy efficiency programs for low-to-moderate-income residents.
Our Climate Future Outcome Defined pathway Annualized long-term
need
MITIGATION
Universal composting Larimer County+ (Regional Wasteshed) TBD
Natural gas (buildings) City supported infrastructure to electrify
homes
$3.5M
Ground travel (petroleum) City supported infrastructure for EV
charging
$2.6M
RESILIENCE
Climate resilience initiatives City and local partners TBD
Example: Community Resilience
Hubs
City and local partners $0.5M ea.
EQUITY
Climate equity work and
partnerships
City and local partners TBD
Example: residential efficiency for
LMI homeowners and renters
City and local partners $0.5M
Proposed Next Steps
The project team will meet on a regular schedule throughout 2022. Council touchpoints include regular updates at
Council Finance and work sessions in 2022. A future work Session will be scheduled to discuss funding
mechanisms.
ATTACHMENTS
1. Park Operation & Maintenance Costs and Design Guidelines (PDF)
2. Powerpoint Presentation (PDF)
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Parks Department
413 South Bryan Avenue
PO Box 580
Fort Collins, CO 80522
970.221.6660
970.221.6849 - fax
fcgov.com/parks
MEMORANDUM
Date: March 30, 2022
To: Mayor and City Council
From: Mike Calhoon, Director of Parks
Kurt Friesen, Director of Park Planning and Development
Thru: Kelly DiMartino, Interim City Manager
Kyle Stannert, Deputy City Manager
Seve Ghose, Community Services Director
Re: Park Operation & Maintenance Costs and Design Guidelines
The purpose of this memorandum is to prepare Council for the conversation about ongoing
funding needs for various priorities, including parks and recreation funding, at the April 12 work
session.
Bottom Line
Park operation & maintenance costs have increased over time due to several factors including
price escalation/inflation, increased park usage, added amenities, and more inclusive design.
Background
The park system in Fort Collins is highly valued and heavily utilized as shown in results of the
annual city survey- with 94% of respondents rating the quality of parks as very good or good and
97% indicating that they should be supported at the same or more effort as a budget priority. The
system is comprised of over 50 parks and 45 miles of paved trails. Guided by the Parks &
Recreation Plan, a distributed and interconnected system of parks has been realized throughout
the city. In 2021, the Parks & Recreation Master Plan was updated with additional park
classifications, design guidelines, level of service recommendations and goals, providing a road
map for completion of the park system. The requests for amenities in parks are ever evolving and
presents great opportunities as well as challenges.
As park infrastructure has aged, there is an urgent need to address deficiencies throughout the
park system. As part of this effort, it is important to realize the differences between Infrastructure
Replacement and Operations & Maintenance.
Operations & Maintenance
Operations & Maintenance (O&M) includes year-round activities associated with keeping a site
or amenity clean, safe, and functional for day-to-day use.
ATTACHMENT 1 B.2.1
Packet Pg. 51 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan)
• Parks annual O&M costs are currently funded at ~$12M annually,
this funding is largely sufficient to meet O&M needs, with an annual gap of $1.0M
identified in the recent master plan. This gap could grow as new parks are built or if there
is further price escalation/inflation.
• Examples of activities associated with O&M include:
o Water Management/Repair such as activating/winterizing systems, program
controllers, manage water, repair pipes/heads/valves
o Turf Care including mowing, prepping lines for play, dragging fields for even
playability, inspect lighting, aeration, fertilization, equipment maintenance
o General upkeep, such as graffiti removal, vandalism repair, litter removal,
inspecting sites for damage, maintain signs, equipment maintenance, training staff
o Snow removal from paved walkways and trails
Park maintenance is conducted via a system of satellite maintenance shops in defined park
districts. Efficiencies gained by this approach include reduced carbon footprint, faster delivery of
services, staff empowerment and growth, and higher level of O&M services. O&M is currently
funded through the general fund as part of ongoing park maintenance offers submitted through
the Budgeting for Outcomes (BFO) process.
Infrastructure Replacement
Infrastructure Replacement is the removal and replacement of amenities in the parks system and
bringing them up to today’s standards, i.e. playgrounds, irrigation systems, tennis courts, etc.
when regular maintenance can no longer keep them in a state of good repair..
• Currently there are over 1,200 items valued at over $200 million in the inventory. Each
item has a life span and when the time comes, it must be replaced.
• Potential new funding mechanisms for the Infrastructure Replacement Program are
currently being considered alongside other City funding needs. A sustainable funding
source is required to address the equity issues that are seen throughout the system
pertaining to old vs. new parks.
• Examples of recent and ongoing Infrastructure Replacement projects include:
o Playground replacement at Golden Meadows Park
o Fossil Creek tennis court replacement
o Addition of pickleball lines to Sugar Beet basketball court and Warren and Edora
practice courts
o Replacement of Library Park irrigation system
B.2.1
Packet Pg. 52 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan)
The below table shows differences between O&M vs. Infrastructure Replacement activities:
IRP Components
(1,000+ assets)
Operations & Maintenance Examples Infrastructure Repair & Replacement
Examples (generally over $5k)
Hardscapes Snow removal, power washing plazas,
sweeping debris
Repair sections of cracked walkways, bringing
walkway slopes up to ADA standards,
repaving parking lots
Playgrounds Raking wood mulch (EWF) so that its even,
picking up trash, safety inspections and
minor repairs for normal wear and tear
Replacing equipment, changing surfacing
from sand to ADA compliant material (EWF
or PIP)
Fields Mowing, prepping lines for play, dragging
fields for even playability, inspect lighting,
aeration, fertilization, equipment
maintenance
Replacing fencing, lighting, scoreboards, full
field renovations
Courts Hanging wind screens, sweeping/power
washing courts to remove debris, replacing
nets
Conversion of courts from asphalt to post-
tension concrete, new striping on courts,
surfacing repairs, new posts, new LED
lighting
Buildings Clean and stock buildings/restrooms, trash
removal, picnic table maintenance, power
washing shelters, activating/winterizing
drinking fountains
Minor renovations like roofing repairs and
painting, major renovations like conversion of
concession areas to satellite maintenance
facility, full building replacements
Structures Cleaning and stocking dog parks,
activate/winterize/test interactive water
features, weeding bike parks, replacing
boards on pedestrian bridges,
Pedestrian bridge replacements, fencing
repairs, water feature renovations, bike park
renovations, pedestrian lighting replacement
Irrigation Activate/winterize systems, program
controllers, manage water, repair
pipes/heads/valves
Full irrigation system renovation, replacement
of water management equipment such as flow
sensors, replacement of irrigation controllers
Water Monitoring water deliveries, clearing ditches,
weed and algae management, minor piping
repairs, aeration equipment management
Dredging, headgate replacements, large piping
replacements,
Trails Snow removal, sweeping/cleaning trails,
repairs to fencing
Replace sections of trails, replacement of
fencing
General Graffiti removal, vandalism repair, litter
removal, inspecting sites for damage,
Inspect asset inventory, prioritize repairs and
replacements, project management work,
B.2.1
Packet Pg. 53 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan)
maintain signs, equipment maintenance,
training staff
training and compliance with current
standards, coordination preventative
maintenance activities with Operations &
Maintenance staff, handoff for long term
maintenance
Typically, park maintenance costs are characterized in cost/per acre. The size of a park has a
direct impact on the cost per acre. The larger the park, the less it costs per acre to maintain, as
most parks contain equitable amenities regardless of size. On average a community park costs
approximately $9,000/acre to maintain annually, and a neighborhood park approximately
$7,500/acre to maintain. The major drivers of the cost are:
• Acreage- which drives costs of water management & repairs, turf care, and trash &
recycling. Over ¾ of O&M costs scale with the size of a park.
• Major Amenities- including whether or not the park has a playground or a bathroom.
Maintenance of these features drives 15% of costs in a neighborhood park.
• Quantity of Minor Amenities- such as sports fields, shelters, and botanical features.
Maintenance of these features drives the remaining 10% of O&M costs.
A summary of per acre Neighborhood Park O&M costs by year of park construction:
Although the two most recent parks are significantly higher than most parks, their per acre cost is
also influenced by their smaller acreage. A summary of per acre Neighborhood Park O&M costs
by size of park highlights these two most recent parks as the two smallest:
B.2.1
Packet Pg. 54 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan)
While direct comparisons of park maintenance costs are challenging due to varying definitions,
overall when compared to other regional municipalities, the maintenance costs for the Fort
Collins system appear to be in line with other park systems in the region.
Design Guidelines
Approved in 2021, the Parks and Recreation Plan provides a comprehensive vision for Fort
Collins parks and is the primary guiding tool for determining new park locations and amenities.
Key elements of the plan include:
• 7 park classifications- formerly there were only 2 (p.115)
• Design guidelines and typical amenities for each park classification (p.105)
• Population and access-based standards (10-minute walk and 5-minute drive) for major
park amenities (p.161)
• 10 overarching goals that prioritize equity and inclusion, access to nature, and financial
sustainability. (p.213) Linkage to Council priorities are highlighted in bold:
1. Provide equitable access to parks.
2. Provide equitable access to recreational experiences.
3. Expand the active transportation network to support access to parks and
recreation.
4. Protect and enhance natural, historic and cultural resources in parks and
increase related activities.
5. Enhance the financial sustainability of parks and recreation.
6. Strengthen partnerships to leverage resources for mutual benefit.
7. Ensure parks, paved trails and recreation facilities are operated and maintained
efficiently and to defined standards.
8. Promote synergy between parks, recreation and economic health.
9. Improve marketing and communication to enhance operations and user
satisfaction.
10. Elevate the design and connection to nature in parks and recreation facilities.
B.2.1
Packet Pg. 55 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan)
Both the executive summary and the full master plan can be accessed
online at: https://www.fcgov.com/parksandrecplan/
Design Strategies to Reduce Maintenance Costs
New parks constructed over the last few years have incorporated many strategies to help reduce
maintenance costs. These strategies include:
• More advanced, higher efficiency irrigation systems, resulting in decreased water usage
• Post-tensioned concrete slabs for courts, significantly increasing court lifespan
• Large native seeded areas in parks, resulting in reduced irrigation demand after
establishment
• Wider walks for convenient parks maintenance vehicle access and snow removal
• 2-year maintenance and establishment conducted by contractor, ensuring park is in good
working order when Parks maintenance staff takes over.
• Raw water usage significantly reduces irrigation costs over the life of the park
• Crime Prevention through environmental design (CPTED) principles to allow for
seamless access and safety
• The following chart illustrates the composition of costs associated with Neighborhood
Park maintenance over the last 4 years:
The addition of native seeded areas in parks significantly reduces irrigation demand but does
require more maintenance than turf grass during the establishment period (approximately 5
years), then maintenance efforts subside after the seed is established. A key recommendation of
the Parks and Recreation Plan is to revisit many of the older parks and increase the native
vegetation is those parks, resulting in increased biodiversity, wildlife habitat, pollinator value
and an improved natural experience for park users.
Park Benefits
The benefits of parks are varied and difficult to measure but were obvious during the recent
pandemic, as visitor usage increased significantly. Parks play an integral role in the health and
well-being of the entire community offering a dose of “Vitamin N”- nature, as part of a holistic
B.2.1
Packet Pg. 56 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan)
system of public spaces. Parks provide essential benefits, not just to
residents, but also to the city’s environmental and economic well-being. Parks and Recreation
contribute significantly to all of Fort Collins community priorities and all 7 outcome areas.
Traditionally, parks have focused on children and sports users primarily, as evidenced by the
design of many of the older parks in the city. Today, parks are designed to provide benefit to all,
including those who regularly walk a loop trail, sit and quietly reflect, enjoy a family gathering,
or connect with nature. In addition, parks must evolve to meet the changing needs of users.
Hammocking, slacklining, pump tracks and pickleball are all examples of new and emerging
uses in parks that were uncommon only a few years ago, but now are mainstream activities.
Multiple studies reveal the importance of play in children’s lives, particularly in our media
saturated society. Parks and playgrounds provide opportunities for children to safely take risks,
expand their abilities and interact with other children from different backgrounds and cultures.
Providing playgrounds that are challenging, unique and engaging is key to driving up park and
playground participation and help keep children outside. The addition of natural play features
also provides a wide variety of benefits.
Fort Collins’ heritage is rich with many traditions. Parks provide a unique platform to celebrate
and remember this legacy, such as the sugar beet workers (Sugar Beet Park) and the apple
farmers (Twin Silo Park). Parks should be respites for escape and rejuvenation, but also
respectfully acknowledge and remember those who have come before us to shape and build our
community.
In summary, parks contribute significantly to create a more resilient Fort Collins in many ways,
including:
• Reducing resource demands though decreased irrigation use
• Improving safety through stormwater detention and flood mitigation strategies
• Advancing environmental stewardship through enhanced wildlife habitat and improved
water quality
• Contributing to economic health by promoting a high quality of life for residents
• Improving social equity by providing equal access to parks city wide
Next Steps
City staff will bring a conversation about ongoing funding needs for various priorities, including
parks and recreation funding, for Council consideration at the April 12 work session.
B.2.1
Packet Pg. 57 Attachment: Park Operation & Maintenance Costs and Design Guidelines (11415 : Sustainable Funding Plan)
Sustainable Funding Plan
04-12-2022
Council Work Session
ATTACHMENT 2 B.2.2
Packet Pg. 58 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
2Purpose
Discuss specific identified funding needs
1.What questions does Council have on the identified funding needs?
2.What questions does Council have on process?
3.Does Council agree with proposed next steps?
B.2.2
Packet Pg. 59 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
3Timeline
December CFC January
CFC March CFC April Council
Work Session
•Introduction to
sustainable
revenue topic
•Deep-dive on
staff identified
needs (Parks &
Rec, Transit &
Housing)
•First Work
Session with
the full
Council
•Funding
mechanisms &
early scenario
planning
Sustainable Revenue Conversations
B.2.2
Packet Pg. 60 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
City Revenue
§Sales Tax
§Local Total: 3.85%
§3 dedicated ¼-cent taxes:
§Street Maintenance
§Capital Improvement
§Open Space
§Keep Fort Collins Great
§General ¼-cent
§Property Ta x
§Fees, Fines, Grants
4
B.2.2
Packet Pg. 61 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
5Governmental Revenue
B.2.2
Packet Pg. 62 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
6Price of Government
B.2.2
Packet Pg. 63 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
7Tax Rate History
Expiring 12/31/2025:
•¼ cent Street Maintenance
•¼ cent CCIP
3.85%
Current City
Sales Tax rate
2.85%
B.2.2
Packet Pg. 64 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
8
Colorado City Full Stack
Sales Tax Rates
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Boulder Denver Grand
Junction
Brighton Colorado
Springs
Castle Rock Fort Collins Golden Littleton Greeley
To tal Tax Rates
State County Rate Other Taxes City Rate
B.2.2
Packet Pg. 65 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
9Fort Collins Net Taxable Sales
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Millions
City Net Taxble City % of County Sales
B.2.2
Packet Pg. 66 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
Identified Funding Needs 10
•Parks built with
Capital Expansion
Fees
•Updates and
maintenance are
where funding is
needed
•Masterplan estimates
$8-12M gap
•25% of transit dollars
come from the
general fund
•Masterplan to build
out estimates $8-10M
gap
•Affordable and
attainable housing is
community priority
•Goal is 10% of
housing stock as
affordable by 2040
(Currently at 5%)
•$8-9.5M gap
PA RKS TRANSIT HOUSING CLIMATE
·Our Climate Future
(OCF) plan intensifies
community efforts to
achieve climate, energy,
waste goals
·OCF current
commitments on track to
reach halfway to 2030
carbon goal
·$6M+ annual gap to
accelerate community
transition from fossil fuels
B.2.2
Packet Pg. 67 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
•System includes over 50 parks, 45 miles of paved trails, and 10 recreation facilities
•Ongoing Park costs are funded by General Fund; Recreation from GF & program revenues
•15-18 parks and the SE Community Center remain to be built
11Parks and Recreation: $9M –$12M
Parks and Recreation System Background
•2008 Policy Plan goal was to maintain appropriate
level of service as the community grows
•2021 Master Plan built upon that to also include
vision of providing equitable access to parks and
recreation experiences, while enhancing financial
sustainability of Parks and Recreation
•Funding gap of $9-12M identified in master plan to
achieve vision
B.2.2
Packet Pg. 68 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
12
An nual Gap ($M)Operations & Maintenance
(Daily Ta sks)Infrastructure Replacement
Parks $1.0 $8.2
Recreation $0.0 $2.3
Planting Refresh $0.6
To tal $1.0 $11.1
Parks and Recreation: $9M –$12M
Operations and Maintenance -the daily tasks needed to keep parks and recreation facilities running and
minor repairs to capital assets to keep them in a good state of repair, such as water management, turf care,
trash & recycling in parks.
B.2.2
Packet Pg. 69 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
13Parks and Recreation: $9M –$12M
Infrastructure Replacement (Capital)-Critical maintenance or repair of existing assets, can also include
strategic changes to existing parks or recreation facilities and design elements
•Smaller replacements, like replacements of courts or playgrounds, typically require one-time funding
and are not likely to increase annual operations and maintenance costs.
•Can also include strategic changes to existing parks or recreation facilities and design elements that
may trigger slight increases in annual operations and maintenance costs.
•$11M annual gap include recreation needs
B.2.2
Packet Pg. 70 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
14TransitMasterPlanBuild-Out
B.2.2
Packet Pg. 71 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
15TransitFundingStudy
Tr ansit Funding Study
•Update capital and O&M cost projections
•Analysis of possible funding sources
•Analysis of potential for a fare-free system
•Complete Q4 of 2022
B.2.2
Packet Pg. 72 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
Tr ansit
Current Anticipated Funding Need 16
Capital Investments:
-Amounts for capital projects vary widely year over year
-The minimum federal match is 80/20 (grant/local)
-Recent federal communication has indicated that future
successful grant applicants will have higher local match
amounts
Operational Expansion:
-Based on the 2019 operational budget
of approximately $17.5M
-Local match funding sources include:
the fares/fees, investment earnings,
other intergovernmental
reimbursements & other smaller
miscellaneous revenue sources.
B.2.2
Packet Pg. 73 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
17Transit Funding Need $8M -$10M
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Base Funding Operations - Local Match Capital Project - Local Match
Additional Anticipated Federal Funds Current Level of Funding New Level of Funding
~$17.5M
(2019 operating
budget)
~$8M -$10M
•The area between the lines represents new funds needed to build & operate the TMP
•A s ignificant amount of federal grant funding is anticipated: current assumed matches range from 80/20 to
50/50 (grant/local)
•Capital projects will be the initial focus with service levels increasing as capital projects are completed
•Some service level increase is anticipated due to population growth, higher frequency routes, and route
extension
B.2.2
Packet Pg. 74 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
Housing
Affordable Housing Funding 18
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
2015 2016 2017 2018 2019 2020 2021 2022
To tal City Affordable Housing Funding, 2015-2022
Competitive Process CCIP (2016-2025)
Average:
~$2.7 million
§~$22 million allocated to affordable housing over the last 8 years
§Ty pical annual funding amount: $2-3 million
§Av erage City subsidy for funded projects: ~$39,000 per unit (new construction)
B.2.2
Packet Pg. 75 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
§Since 2000, the community has produced or preserved about 120 affordable units per year on average.
§Our community is about 850 units behind in affordable housing production from 2015-2021
§To achieve the 10% affordability goal by 2040, our community needs to more than double the annual
production and/or preservation of affordable housing to 282 or more units per year.
19
Housing
Affordable Housing Production
Current status: 5% of all housing
Goal: 10% of all housing by 2040
B.2.2
Packet Pg. 76 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
20
§To tal City funding need: ~$27 million deferred + $10-11 .5 million annually
§Estimated annual ongoing need: $10-11 .5 million (additional $8-9.5 million)
§Deferred funding: ~$27 million through 2020 (700 units behind 2020 goal)
§As sumptions
§City investment of ~$39,000 per unit will continue to yield 1 affordable unit
§The current annual production goal (282 or more units per year) will result in
10% of all housing being affordable by 2040
§Other important funding resources (Private Activity Bonds, Low-Income
Housing Tax Credits, fee relief, development incentives, private equity) will be
available and sufficient to support investments in affordable housing.
Housing Funding Needs $8M -$9.5M
B.2.2
Packet Pg. 77 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
21What Could Dedicated Housing Revenue Fund?
Expand the City’s competitive process to better
support projects seeking to: Acquire land, develop
housing, preserve existing housing, support
residents.
Examples:
·Housing acquisition
(redevelopment/preservation)
·Land acquisition
·New construction costs
·Affordable homeownership renovation
·Renovation of affordable rental housing
·Homeownership assistance
Expand or initiate City-led efforts as identified in
adopted policies including the Housing Strategic
Plan, City Strategic Plan, and HUD Consolidated
Plan.
Examples:
·Land Bank acquisition (expand)
·Extend affordability restrictions
·Fee credits for qualifying projects (expand)
·Develop incentive programs (energy efficiency,
voluntary affordability restrictions, etc.)
·Explore redevelopment partnerships
·Other innovative approaches (middle income,
mixed income, etc.)
Accelerate Implementation of the Housing Strategic Plan
B.2.2
Packet Pg. 78 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
2022 Housing Funding 22
Source*Est. Amount
Affordable Housing Fund (General Fund)$1,000,000
HOME (Federal)$725,000
CDBG (Federal)$750,000
Affordable Housing Capital Fund (CCIP)$500,000
TOTAL $2,975,000
•2022 Competitive Process
•$4,780,000 in requests
•274 affordable homes (179 new construction and 95 renovated/preserved)
•Requested City investment ranges from $17,188 -$80,000 per unit
* Includes ~$300,000 in unallocated funds from 2021
B.2.2
Packet Pg. 79 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
23Climate
Adopted Goals & Strategy
•Reduce greenhouse gas emissions (GHGs) 80% below 2005 levels
•Provide 100% renewable electricity with grid and local sources
•Achieve zero waste, or 100% landfill diversion
Intensify efforts to meet 2030 climate, energy and 100% renewable electricity goals
that are centered in equity and improve community resilience
•2030 Our Climate Future (OCF) Goals
•Strategic Objective 4.1
B.2.2
Packet Pg. 80 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
24Climate
2030 Projection –Community Carbon Inventory
•Key Pathways
•Platte River committed to 100%
renewable electricity by 2030
•Re duced petroleum use (vehicles)
•Diversion of organic waste
(universal composting)
•Re duced natural gas use (buildings)
Natural gas
Petroleum
Organic
waste
B.2.2
Packet Pg. 81 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
25Our Climate Future Pathways & Funding Needs
Our Climate Future Outcome OCF
Big Move
Defined Pathway Funding Pathway
Identified
Mitigation
Universal composting 2 & 10 Larimer County+ (Regional Wasteshed)Partial
Natural gas (buildings)6 City, residents, and business No
Ground travel (petroleum)4 & 13 City and residents No
100 percent renewable electricity 12 Platte River Power Authority and local solar Ye s
Tr ansit 4 Under Discussion
Resilience
Climate resilience initiatives e.g.,
preparedness, extreme events response
3 City and local partners No
Wa ter:source, quality, efficiency, stormwater Utilities capital and efficiency plans Ye s
Pa rks & Recreation 11 Under Discussion
Equity
Climate equity work/partnerships e.g., low-to-
moderate income (LMI) residential efficiency
1 City and local partners No
Housing 7 Under Discussion
B.2.2
Packet Pg. 82 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
26Potential Our Climate Future Funding Needs
Our Climate Future Outcome Defined pathway Annualized long-term need
Mitigation
Universal composting Larimer County+ (Regional Wasteshed)TBD
Natural gas (buildings)City supported infrastructure to electrify homes $3.5M
Ground travel (petroleum)City supported infrastructure for EV charging $2.6M
Resilience
Climate resilience initiatives City and local partners TBD
Example: Community Resilience Hubs City and local partners $0.5M ea.
Equity
Climate equity work/partnerships City and local partners TBD
Example: residential efficiency for
LMI homeowners and renters
City and local partners $0.5M
B.2.2
Packet Pg. 83 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
27Next Steps
Continue project team meetings on regular basis
•Develop project and engagement plan
•Analyze and articulate efficiencies, savings, financial stewardship
•Further research into impacts, timing, and questions
Standing item on Council Finance Agenda
•Review project work and findings
•Bi-monthly agenda item
Future Council Work Session Q3/Q4
•Discuss funding mechanisms
B.2.2
Packet Pg. 84 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
28Purpose
Discuss specific identified funding needs
1.What questions does Council have on the identified funding needs?
2.What questions does Council have on process?
3.Does Council agree with proposed next steps?
B.2.2
Packet Pg. 85 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)
B.2.2
Packet Pg. 86 Attachment: Powerpoint Presentation (11415 : Sustainable Funding Plan)