HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 12/13/2022 - WORK SESSIONNOTICE:
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Fort Collins City Council
Work Session Agenda
6:00 p.m. Tuesday, December 13, 2022
Colorado Room, 222 Laporte Ave, Fort Collins, CO 80521
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City of Fort Collins Page 1 of 1
City Council Work Session
Agenda
December 13, 2022 at 6:00 PM
Jeni Arndt, Mayor
Emily Francis, District 6, Mayor Pro Tem
Susan Gutowsky, District 1
Julie Pignataro, District 2
Tricia Canonico, District 3
Shirley Peel, District 4
Kelly Ohlson, District 5
Colorado River Community Room
222 Laporte Avenue, Fort Collins
Cablecast on FCTV
Channel 14 on Connexion
Channel 14 and 881 on Comcast
Carrie Daggett Kelly DiMartino Anissa Hollingshead
City Attorney City Manager City Clerk
CITY COUNCIL WORK SESSION
6:00 PM
A)CALL MEETING TO ORDER
B)ITEMS FOR DISCUSSION
1.East Mulberry Potential Annexation Approach.
The purpose of this item is to seek Council insight into the East Mulberry Plan update and potential
annexation considerations related to the plan update. Staff will share a potential approach to
annexation for Council to consider based on a concept referred to as ‘tipping points’. Staff will also
share and seek Council input on options pertaining to how staff should proceed with updating the
East Mulberry Plan.
2.Sustainable Funding Discussion.
The purpose of this work session is to discuss sustainable funding efforts to date and to seek
Council directions for next steps.
C)ANNOUNCEMENTS
D)ADJOURNMENT
Upon request, the City of Fort Collins will provide language access services for individuals who have limited
English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services,
programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance.
Please provide advance notice when possible. Requests for interpretation at a meeting should be made
by noon the day before.
A solicitud, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no
dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que
puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al
970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione aviso previo. Las
solicitudes de interpretación en una reunión deben realizarse antes del mediodía del día anterior.
Page 1
City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 6
December 13, 2022
WORK SESSION AGENDA
ITEM SUMMARY
City Council
STAFF
Caryn Champine, PDT Director
Rebecca Everette, Planning Director
Megan Keith, Senior Planner
SUBJECT FOR DISCUSSION
East Mulberry Plan Update and Potential Annexation Approach.
EXECUTIVE SUMMARY
The purpose of this item is to seek Council insight into the East Mulberry Plan update and potential
annexation considerations related to the plan update. Staff will share a potential approach to annexation
for Council to consider based on a concept referred to as ‘tipping points’. Staff will also share and seek
Council input on options pertaining to how staff should proceed with updating the East Mulberry Plan.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Does Council have feedback on a potential annexation approach based on tipping points?
2. Does Council prefer a more targeted update or a full update of the East Mulberry Plan?
BACKGROUND / DISCUSSION
Staff has been modeling financial scenarios related to potential future annexation of the East Mulberry
enclave with an outside consultant, Economic Planning Systems, since late 2020. Staff has also been
working towards an update to the East Mulberry Plan, including extensive community engagement, since
early 2021. Recent Council discussions on this topic include:
March 2021: Work session focused on the plan update, strategic approach to plan-making and
annexation evaluation.
April 2022: City Council and County Commissioner discussion of potential future annexation and the
existing Intergovernmental Agreement for Growth Management.
April 2022: Work session focused on overall community approach to annexation and growth
management, including implications for the East Mulberry Enclave area.
August 2022: Staff presented a financial analysis framework for five subarea designations within a 20-
year timeframe separated into 5-year increments.
October 2022: Staff presented Opportunities and Tradeoffs by Character Area and received feedback
to provide ranges of costs to inform future discussions at the November 8th full Council Work Session
Page 2
Item 1.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 6
Financial Summary
Several financial scenarios were presented at the August 1, 2022 Council Finance Committee meeting.
Five phased approaches were analyzed, looking at a twenty-year evaluation timeframe. Each of these
scenarios emphasized a different prioritization schema, resulting in alternative timing and ordering of the
full annexation area. However, the financial model can be modified to accommodate other assumptions
and priorities depending on future direction from Council. The financial impacts of these scenarios are
presented below, which includes both the ongoing operating revenues and expenses, as well as one-time
development/impact fees and capital expenditures:
Primary expenditure drivers are highlighted below:
Police Services: Analysis of existing activity in the annexation area suggests that up to 35 additional
FTE (23 sworn officers; 12 professional support) would be required at an annual cost of in excess of
$6 million.
Streets/Traffic: The annexation area encompasses nearly 46 miles of roadways, of which
approximately 30 miles would likely come under City maintenance and upkeep. Annual estimate of
maintaining is around $750,000. Potential additions of up to 14 miles of roadway w/ new developments
would increase this figure.
Light & Power: Capital expenditure estimate for connectivity and sub-station buildout requirements
is $90 - $100 million.
Stormwater: Capital improvements primarily related to the Cooper Slough and Dry Creek/Lincoln
channel areas is approximately $40 million.
Additionally, the scenarios above were also evaluated by accelerating or de-accelerating the potential
annexation timeframes. While the annual, average bottom line impacts are not much different than the
above estimates, accelerating the timeframes does increase risks by committing to larger expenditure
outlays upfront (police, street maintenance, L&P infrastructure) with revenues dependent on development
activity and increased revenue generation to come.
Page 3
Item 1.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 6
The governmental sector will require additional funding to pursue any potential annexation option. No
specific identified source of funding is currently available and council priorities and existing needs will help
inform the extent to which funding may become available. The recent Infrastructure Investment and Jobs
Act (IIJA) and Inflation Reduction Act (IRA) may provide some opportunity for federal funding assistance.
On the utility side, mechanisms are in place to pay for additional requirements brought on by potenti al
annexations, subject to impacts to existing projects and funding requirements, and the resulting impact to
ratepayers.
Opportunities and Trade-Offs: Character Area Analysis
During the October 20, 2022 Council Finance Committee, staff presented a series of opportunities and
trade-offs based on designated “character areas” within the East Mulberry Plan area. Slides and
supplemental content presented during that session are included as attachments. The opportunities and
trade-offs were developed through engagement efforts both with City staff and through community
conversations held with residents and business-owners within the East Mulberry Plan area over the past
two years. These opportunities and trade-offs will be used to create the basis for analysis and policy
recommendations within the East Mulberry Plan update.
East Mulberry Corridor Plan (2002)
The East Mulberry Corridor Plan was jointly adopted by the Fort Collins City Council and Larimer County
in 2002. One of the primary plan objectives was to implement the 1997 City Plan guidance to the East
Mulberry Corridor. Additional objectives included addressing key issues such as:
• Provision and maintenance of public facilities and services
• Annexation
• Costs of improvements
• Redevelopment
• Streetscape Design
In the 2002 East Mulberry Plan introduction, community members and residents expressed concerns about
traffic congestion, safety, and infrastructure decline. Continued growth and change without mechanisms
for addressing these issues may impact the quality of life in the area.
Fort Collins Subarea Plans: Position and Purpose
Subarea plans like the East Mulberry Plan are important tools for implementing geography-specific
implementation strategies of broader city policy and goals. Subarea plans can achieve the following:
Address important issues and opportunities unique to a given area
Offer context-sensitive implementation and funding strategies that are actionable
Provide land use guidance that supersedes the City Plan Structure Plan
Guide policy considerations related to large potential annexations
East Mulberry Plan Update: Why Update? Why Now?
Much has changed since the East Mulberry Corridor Plan was created in 2002. In the 20 years since the
plan was adopted, conditions have changed both in the East Mulberry Plan area and across the broader
Fort Collins community. A plan update should be pursued for the following reasons:
The East Mulberry Enclave was created in 2018 and became eligible for annexation in 2021. Since the
adoption of the 2002 plan predated these conditions, the East Mulberry Plan did not address this
specifically through policy recommendations or other elements of the plan.
Page 4
Item 1.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 4 of 6
Many comprehensive citywide documents have been updated since the East Mulberry Plan was
adopted. This includes City Plan, the City’s Land Development Code (formerly Land Use Code), key
outcome areas of the City’s Strategic Plan, amongst others. An East Mulberry Plan update could
ensure alignment with these documents.
Substantial development activity is occurring in the East Mulberry Plan area. Specifically, the Bloom
and Mosaic communities may be catalysts for additional development proposals in this area. A plan
update could address known future development and proactively address the remaining undeveloped
areas of the East Mulberry Plan area.
Market conditions have also changed, creating a need to analyze current zoning designations and
explore application of policies that could serve to protect and preserve existing land uses while creating
opportunity for new development.
Potential Plan Policy and Strategy
Throughout the past year, staff have shared a range of potential annexation approaches and their
associated advantages and tradeoffs for Council consideration. Two of these potential annexation
approaches include:
Voluntary annexation: annexing individual properties as they develop or redevelop. This option
represents the current status quo.
Annexing portions of the East Mulberry Enclave in phases, like the Southwest Enclave Annexation.
Staff has been exploring an additional potential approach for Council consideration. This approach is based
on “tipping points”. Tipping points could be defined as catalytic investments or changes in condition that
may prompt annexation into the city. When a tipping point is activated, strategic annexation of the area in
question and potentially the surrounding parcels could be initiated. Tipping points for consideration could
include a combination of predictable or anticipated events, opportunities, and other defined conditions.
Specifically, opportunities to achieve city priorities, major development/redevelopment activity, funding
opportunities, and infrastructure upgrades. Because tipping points would be initiated when future
conditions are met, tipping points and opportunities to consider annexation may be spread across a longer
time horizon. Some potential tipping points that staff have begun formulating for evaluation include:
Maintaining Logical Boundaries: Over time, voluntary annexation establishes a smaller island of
parcels or area that is essentially surrounded by City of Fort Collins. To create or maintain logical
boundaries for enforcement, provision of services (i.e., police services, roadway/sidewalk
improvements, and create areas of compatible land uses), annexation of the parcels to form more
logical or contiguous boundaries may be a tipping point.
Proactive Resource Protection: Imminent impact to a critical natural resource or buffer. To apply
natural resource protection under city codes, this may be considered a tipping point for considering
annexation.
Redevelopment Risk: Eventual property sales could pose a risk of redevelopment to existing mobile
home parks. Protection of this existing affordable housing stock may be a tipping point to consider
annexation.
External Funding: The city is awarded external funding to undertake a major infrastructure project.
Implementation of this major infrastructure project could reduce the cost burden of annexing certain
areas within the East Mulberry Enclave. Award of external funding opportunities may be tipping points.
Page 5
Item 1.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 5 of 6
The advantages and tradeoffs of the aforementioned annexation approaches are captured in the following
table:
Potential
Annexation
Approach
Advantages Tradeoffs
Annex individual
properties as they
develop (voluntary
annexation)
• The city’s cost burden is more
gradual.
• Could lead to a
checkerboard pattern of
city and county jurisdiction.
• Challenging for
implementing long-term,
large-scale vision.
• Regional infrastructure
improvements would be
difficult to implement.
• New development and
redevelopment hindered by
inadequate or non-existent
infrastructure.
Annex portions of
enclave in phases
(like the Southwest
Enclave Annexation)
• Costs can be anticipated by
annexation phase.
• Phases provide structure for an
implementation framework.
• Predictability for residents and
businesses.
• City would still incur
significant cost burden as
phases are brought into
the city.
Annex portions of
the enclave at
‘tipping point’
intervals
• Council and staff can frequently
revisit and consider tipping points.
• Proactively allows planning for and
accommodation of tipping points
without the need to take on a
specific potential annexation
strategy.
• The East Mulberry Plan document
can serve as an implementation
tool and resource rather than just
high-level guidance.
• Open-ended nature of
timing could be less
predictable for residents
and businesses.
• May require additional and
ongoing coordination with
Larimer County.
Options for Consideration: Plan Update
As described earlier in this document, the East Mulberry Plan requires an update for a variety of reasons.
The type of plan update that staff will take on is dependent on the potential annexation strategy Council
wishes to pursue. Staff have categorized these plan update options for Council consideration as a targeted
update or a full update. These options are described further below:
Targeted Update of the Existing East Mulberry Corridor Plan
o Assumes that voluntary annexation at a parcel-by-parcel level will continue over time.
o Out-of-date conditions would be updated.
o Framework Plan and other elements would be updated to align with recent citywide guidance
documents, such as City Plan and the most recent Strategic Plan.
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Item 1.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 6 of 6
o Requires fewer staff resources than anticipated.
o Resulting plan is a policy guidance document, similar to the 2002 East Mulberry Plan.
Full Update:
o Would provide a more specific annexation and land use strategy assuming potential annexations
under a tipping points-based framework.
o Out-of-date conditions would be updated.
o Current work plan and staffing resources anticipate a full update.
o Resulting plan is a tool to guide decision making and investment.
NEXT STEPS
Late Winter/Spring 2023:
1. Work Session to confirm direction and content of East Mulberry Plan update
2. Work Session focused on East Mulberry Plan Update (Draft Plan)
3. Consideration of adoption of the East Mulberry Plan Update
Note: There are currently no scheduled Council actions related to annexation timing or phasing.
ATTACHMENTS
1. East Mulberry Character Areas: Review of Opportunities and Tradeoffs
2. Presentation
Page 7
Item 1.
East Mulberry Plan Update – Character Area Opportunities & Tradeoffs |1
East Mulberry Residential Character Area
Contains most of the existing and planned
housing in the plan area, including existing
mobile home parks.
Key Opportunities:
• Mobile Home Park Preservation
• Application of other Affordable Housing
Preservation Tools
• Apply City development code and land
use priorities to future projects
• Address infrastructure deficiencies
Key Tradeoffs:
• Limited sales tax generation
• Existing stormwater and street
infrastructure to serve residential areas is
sub-standard.
Mobile Home Park Preservation
Within the East Mulberry area, there are multiple mobile home parks, one of which is currently for sale. These mobile
home parks are not currently zoned for preservation. The City of Fort Collins recently created a zone district specifically
for the purpose of mobile home park preservation.
Current number of residential units or mobile homes within each existing mobile home park:
• Collins Aire Park: 535 homes (currently for sale, as of 10/10/2022)
• The Villas: 48 homes
• Nueva Vida (formerly Parklane): 68 homes
Application of other Affordable Housing Preservation Tools
• Potential to utilize the City’s Land Bank program and to partner with a community land trust to preserve
affordable housing in the area
• Application of potential future resources for affordable housing as implementation of the Housing Strategic Plan
Address Infrastructure Deficiencies
• Stormwater infrastructure, pedestrian access and transit availability are very limited or absent in many areas
within the enclave.
• With over 2,500 units of housing planned or recently developed (Mosaic, Timbervine, and Bloom), multi-modal
connections and access will become increasingly necessary to accommodate existing and future residents.
Opportunity Council Priority Strategic Plan City Plan
Mobile Home Park Zoning 1.8: Preserve and Enhance
mobile home parks as a
source of affordable housing
Increase availability of
affordable housing
15-minute community concept #30: Implementation of 15-
minute community concept
6.5: Maintain existing and
aging transportation
infrastructure
Supporting a sustainable
pattern of development
Page 8
Item 1.
East Mulberry Plan Update – Character Area Opportunities & Tradeoffs |2
East Mulberry I-25 Gateway Area
The primary eastern gateway into Fort Collins
houses a variety of existing uses including unique
industrial uses.
Key Opportunities:
• Improve Mulberry as a regional connector
• Improve aesthetics and safety at eastern
gateway
• Enhance and preserve natural features
Key Tradeoffs:
• City assumes responsibility and cost
associated with higher police call volume
Improve Mulberry as a Regional Connector
The E Mulberry corridor and I-25 intersection is an important gateway into the northernmost portion of the Fort Collins
community. While CDOT maintains the I-25 and E Mulberry intersection, several changes could be made to improve the
interchange along with modifications to the entire corridor to better accommodate multi-modal transportation.
Improve Aesthetics and Safety at Eastern Gateway
• Upon annexation, Land Use Code standards would apply to new developments and businesses would need to
come into compliance with some City codes after an amortization period, including lighting and signage.
• While Land Use Code standards would apply upon annexation, City staff is focused on preservation of existing
businesses. Therefore, flexibility in standards and additions of uses in the Industrial zone district will be explored
in the update to the East Mulberry Plan.
• Upon annexation, the City of Fort Collins could begin to partner on the redesign of the E Mulberry interchange
• Upon annexation, Fort Collins Police Services would begin to service the area at a level more consistent with
urban level needs.
Address Infrastructure Deficiencies
• The I-25 and E Mulberry interchange should be upgraded to safely accommodate increased traffic, stormwater
run-off, and multi-modal transportation.
• The area lacks sufficient stormwater infrastructure, creating burdens on existing business owners. These
burdens include increased risk of flooding in a large weather event and expensive stormwater containment
requirements if a business owner wants to expand.
Opportunity Council Priority Strategic Plan City Plan
Improve Mulberry as a
regional connector
Advance regionalism by
supporting and investing in
regional transportation
connections
3.2: Work with key partners to
grow diverse employment
opportunities in the community
Support local, unique and
creative businesses
Enhance and preserve natural
features like the Cooper
Slough and Dry Creek
Protect and Enhance
Instream River Flows
4.6 Sustain and improve the health
of the Cache la Poudre River and all
watersheds within Fort Collins
Supporting a sustainable
pattern of development
Page 9
Item 1.
East Mulberry Plan Update – Character Area Opportunities & Tradeoffs |3
Frontage Character Area
Mulberry Street and parallel frontage road is a
key corridor for travel and business access.
Key Opportunities:
• Improve accessibility, safety, aesthetics,
environmental health, and water quality
along the Mulberry frontage. Improve
aesthetics and safety at eastern gateway
• Address infrastructure deficiencies
Key Tradeoffs:
• City assumes increased maintenance
responsibilities.
The East Mulberry corridor is a prominent gateway into the northernmost portion of the Fort Collins community and is a
major transportation spine for warehousing, manufacturing, fabrication, and maintenance businesses that serve the
Northern Colorado region and the State of Colorado. While CDOT maintains the East Mulberry roadway, several changes
could be made to improve truck access and better accommodate multi-modal transportation.
Improve accessibility, aesthetics, and water quality
• Upon annexation, the City of Fort Collins could begin to partner on the redesign of the E Mulberry corridor
• Improvements would include upgrades to stormwater infrastructure to protect the Cache la Poudre waterway
• Upon annexation, Land Use Code standards would apply to new developments and businesses would need to
come into compliance with some City codes after an amortization period, including lighting and signage.
• Improvements to access along the frontage roads could be achieved as future redevelopment occurs and the
Fort Collins Master Street Plan is applied to prominent intersections and frontage access points.
• Upon annexation, Fort Collins Police Services would begin to service the area at a level more consistent with
urban level needs.
Address Infrastructure Deficiencies
• Stormwater infrastructure is especially problematic along the E Mulberry corridor, affecting businesses and
residents to the north and existing residential neighborhoods to the south where flooding often occurs.
• Frontage road access is limited and dangerous along the E Mulberry corridor creating access issues for existing
businesses and creating significant barriers to pedestrian and bicycle access.
Opportunity Council Priority Strategic Plan City Plan
Improve accessibility, safety,
aesthetics, environmental
health, and water quality along
the E Mulberry frontage
Improve safety for all
modes and users of the
transportation system
6.5: Maintain existing and aging
transportation infrastructure
Supporting a sustainable
pattern of development
Enhance and preserve natural
features like the Poudre River
and Cooper Slough
Protect and Enhance
Instream River Flows
4.6 Sustain and improve the health
of the Cache la Poudre River and all
watersheds within Fort Collins
Supporting a sustainable
pattern of development
Page 10
Item 1.
East Mulberry Plan Update – Character Area Opportunities & Tradeoffs |4
Airpark Character Area
The Airpark includes a mix of industrial services,
housing, restaurants, breweries, and serves as a
new and small business incubator.
Key Opportunities:
• Ability to support establishment,
retention and expansion of existing small
businesses.
• Support new business incubation, start-
ups, and creative industries.
• Coordinated approach to stormwater
improvements.
Key Tradeoffs:
• Risk of displacement and gentrification of
existing businesses.
• City would inherit severely deficient or
non-existent stormwater and roadway
infrastructure, including frequent flooding
issues.
The Airpark is home to a high concentration of industrial businesses that serve Northern Colorado and beyond.
businesses are housed within warehouses and on large lots that provide easy truck access, outdoor storage, and access
to I-25. The Airpark area also has several infrastructure deficiency issues related to stormwater, pedestrian access,
deterioration of roadways, and aging overhead power lines.
Support Existing and New Businesses
• While Land Use Code standards would apply upon annexation, City staff is focused on preservation of existing
businesses. Therefore, flexibility in standards and additions of uses in the Industrial zone district will be explored
in the update to the East Mulberry Plan.
• Due to site constraints and infrastructure deficiencies, staff is focused on creating requirements that address
health and safety concerns in the case of business expansions, building upgrades and other minor improvements
that would trigger site upgrades.
• City of Fort Collins staff could work closely with businesses to create Improvement Districts for improvements to
local roads and help improve access to other City-led businesses support tools.
• Improvements could include upgrades to stormwater infrastructure to protect the Cache la Poudre waterway
Gentrification Risk
• City staff is sensitive to the risk of gentrification due to improvements within the area. While there are multiple
factors involved in gentrification, the City would focus on limiting barriers to business expansion and working
with business owners to identify and execute creative solutions that fit their needs while addressing citywide
standards and priorities.
Opportunity Council Priority Strategic Plan City Plan
Improve accessibility, safety,
aesthetics, environmental
health, and water quality along
the E Mulberry frontage
Improve safety for all
modes and users of the
transportation system
6.5: Maintain existing and aging
transportation infrastructure
Supporting a sustainable
pattern of development
Enhance and preserve natural
features like the Poudre River
and Cooper Slough
Protect and Enhance
Instream River Flows
4.6Sustain and improve the health
of the Cache la Poudre River and
all watersheds within Fort Collins
Supporting a sustainable
pattern of development
Page 11
Item 1.
East Mulberry Plan Update – Character Area Opportunities & Tradeoffs |5
Transitional Character Area
Transitional Areas are primarily undeveloped
areas that could help unify and connect land
uses in the Mulberry corridor.
Key Opportunities:
• Opportunity to address area-wide
stormwater issues with key interventions
in this area.
• Proactive zoning to meet current and
future land use demand.
• Strategic roadway connections built to
city standards.
Key Tradeoffs:
• Funding for investments such as new
roadways and other infrastructure may
be dependent on new development.
The Transitional area is important to stormwater infrastructure, especially for businesses and residents within the
Airpark area, and in relation to water quality and runoff to the Poudre River. International Boulevard is also planned for
extension from the Bloom neighborhood and through the existing airport airstrip, creating an additional access point for
residents of Timbervine and other surrounding neighborhoods to the rest of the community (including downtown area).
Address Stormwater Infrastructure and Land Use
• Improvements are planned within this area and master planning for stormwater upgrades would begin upon
annexation of the Airpark area and surrounding properties.
• Annexation of properties adjacent to the former airport area would provide an opportunity for rezoning
• Parcels that are still available for development could be rezoned to better match the industrial land uses within
the Airpark area.
Address Access Deficiencies
• As the area grows, requirements for access to new developments and existing neighborhoods will increase,
putting pressure on existing roadways.
• While these access points will only be created as new development occurs, annexation and rezoning can
encourage redevelopment and investment.
Opportunity Council Priority Strategic Plan City Plan
Analyze the area for
potential rezoning to better
fit the needs in the area
Advance regionalism –
collaboration regionally
while maintaining the
unique character of Fort
Collins
3.2 Work with key partners to
grow diverse employment
opportunities in the
community
Utilize tools and partnerships to
leverage infill and redevelopment
opportunities to achieve
development consistent with City
Plan and supporting the City’s
broader strategic objectives
Enhance and preserve
natural features like the
Poudre River and Cooper
Slough
Protect and Enhance
Instream River Flows
4.6 Sustain and improve the
health of the Cache la Poudre
River and all watersheds
within Fort Collins
Supporting a sustainable pattern
of development
Page 12
Item 1.
East Mulberry Plan & Potential Annexation
December 13, 2022
Council Work Session
Rebecca Everette | Megan Keith Page 13
Item 1.
2Questions
Questions:
•Does Council have feedback on a potential annexation approach based on tipping
points?
•Does Council prefer a more targeted update or a full update of the East Mulberry
Plan?
Page 14
Item 1.
3Mulberry Context
Cooper
Slough
Vine Dr.
Mulberry St.Link Ln.Lemay Ave.Timberline Rd.Prospect Rd.Timberline Rd.Mosaic
Bloom
Cloverleaf
Clydesdale
Park
Sunflower
Kingfisher Point
Natural Area
Collins
Aire
Timbervine
Dry Creek
Roselawn
Cemetery
Andersonville
Nueva
Vida
Countryside
Estates Pleasant
Acres
The Villas
Boxelder
Estates
Waterglen
Trailhead
Page 15
Item 1.
East Mulberry Plan –Where
We’ve Been
Page 16
Item 1.
5Timeline of Events
May July SeptemberAprilJune
May 10: Council Work Session
(Council Priorities Check-in)
August
August 1:Council
Finance Committee
Session
2022
April 26: Council
Work Session
April 13: Joint City
Council and County
Meeting
March 8: Council
Work Session
March October November
October 20: Council
Finance Committee
Session
November 8:
Council Work
Session
Page 17
Item 1.
6Summary of Recent Council Events
Council Session Synopsis of Council Feedback How Staff Applied Directives
March 8 Work Session
•Carefully consider a potential annexation
and explore other frameworks for a phased
approach.
•Continued refinement of potential
annexation phasing scenarios
•Temporarily paused the plan update effort
April 26 Work Session
•Study and prepare a summary of lessons
learned from the Southwest Enclave.
•Proceed cautiously with the potential
annexation analysis with clear decision
points for Council along the way.
•July 2022 memo focused on lessons learned
from the Southwest Enclave Annexation.
•Summary of financial analysis at 8/1 Council
Finance Session.
•Formulating strategies for plan update.
August 1 Council Finance
Committee
•Enhance the storytelling surrounding the
financial scenarios and illuminate how
opportunities and tradeoffs tie into Council
and community priorities.
•Presented opportunities and tradeoffs by
character area at 10/20 Council Finance
Committee.
October 20 Council Finance
Committee
•Provide ranges of costs to inform future
discussions.
•Cost ranges provided in AIS materials and
summarized on the following slides.
Page 18
Item 1.
7Financial Analysis –Bottom Line
August 1 Council Finance Committee Meeting:
•Staff modeled a financial analysis framework for five subarea designations within a 20-year
timeframe, separated into 5-year increments (immediate, short, medium, and long-term)
•Findings can be summarized as:
•Costs outweigh revenue in the short term for both governmental and utilities sectors
depending on upfront investment
•Governmental functions will always represent a net cost to the City
•Funding would come from a combination of ongoing revenue and new revenues from
within the subarea
•Federal funding such as IIJA or IRA represent an opportunity to cover some of the
potential cost
•The different sequencing options for annexation do not have a major impact on cost
•While annexation phase timing allows for manageable cost ramp-up over time, it also
exposes risk to higher costs long-term as infrastructure further degrades and inflation
occurs Page 19
Item 1.
8Fiscal Impacts: Modeling Estimates
Governmental and Utilities: Range of fiscal impacts from scenario modeling
Governmental: 20-year View
($M)Range Avg. / Yr.
Revenue $80 -$210 $4 -$10
Expense ($115) –($265)($6) –($13)
Margin ($35) –($55)($2) –($3)
Utilities: 20-year View
($M)Range Avg. / Yr.
Revenue*$75 -$240 $4 -$12
Expense ($200) –($325)($10) –($16)
Margin ($85) –($125)($4) –($6)
* Note: Utility Revenues reflect current rate structures and don’t include rate adjustments to cover added
costs of potential acquisition.
Page 20
Item 1.
East Mulberry Plan Character Areas
Dry Creek
&Timbervine Mosaic Bloom
Nueva Vida Mobile
Home Park
The Villas
Collins Aire Park
Vine Dr.Timberline Rd.Mulberry St.
Prospect Rd.Link Ln.Lemay Ave.Cooper
Slough
Character Areas
Residential Character Areas
(Estate and Mixed)
I-25 Gateway
Frontage
Airpark
Transitional
Page 21
Item 1.
10Opportunities & Tradeoffs
Opportunities and tradeoffs by Character Area were presented on October 20 at Council Finance
Committee:
A Few Key Opportunities and Tradeoffs by Character Area Included:
Character Area Opportunity Tradeoff
Residential Example: Preserve mobile home parks and
other affordable housing options.
Example: Existing stormwater and street
infrastructure to serve residential areas is
sub-standard.
I-25 Gateway
Example: Enhance and preserve natural
features like Cooper Slough, Dry Creek, and
their associated buffers.
Example: City assumes responsibility and
cost associated with higher police call
volume near interchange.
Airpark
Example: Ability to support establishment,
retention and expansion of existing small
businesses. Support new business
incubation, start-ups, and creative industries.
Example: City would inherit severely
deficient or non-existent stormwater and
roadway infrastructure, including frequent
flooding issues.
Please refer to AIS materials for additional opportunities and tradeoffs for all five East Mulberry Plan Character Areas. Page 22
Item 1.
2002 East Mulberry Plan 11
2002 East Mulberry Corridor Plan
•Jointly adopted by Fort Collins and Larimer County
•Primary plan objective was to implement the 1997 City
Plan for the East Mulberry Corridor. Also addressed key
issues such as:
•Provision and maintenance of public facilities
and services
•Annexation
•Costs of improvements
•Redevelopment
•Streetscape Design
•Plan acknowledges that continued growth and change
may impact quality of life in the area
•Community members shared concerns about traffic
congestion, safety, and infrastructure decline
Page 23
Item 1.
Policy Around Subarea Plans
Subarea Plans
•Provide geography-specific implementation strategies
of broader city policies and goals
•Offer context-sensitive implementation and funding
strategies that are more actionable and responsive to
the specific needs of that area
•Address important issues and opportunities unique to a
given area
•Land use guidance in subarea plans supersedes the
City Plan Structure Plan
12
Page 24
Item 1.
•Respond to changed conditions after 20 years
•Creation of the enclave and eligibility for annexation
occurred after the 2002 Plan was adopted (E. Mulberry
Enclave was created in 2018, became eligible for
annexation in 2021)
•Align with the 2019 City Plan update and other
comprehensive plan documents
•Major new and planned developments that may be
catalysts for other development in this area (Bloom and
Peakview)
•The plan area still has substantial portions of
undeveloped land or areas that are likely to redevelop
in the future
East Mulberry Plan Update 13
Why Update? Why Now?
Page 25
Item 1.
Potential Plan Policy and
Strategy
Page 26
Item 1.
15Advantages and Tradeoffs –Potential Annexation Approaches
Potential Annexation
Approach Advantages Tradeoffs
Annex individual properties as they develop
(voluntary annexation)
•The city’s cost burden is more gradual.
•Could lead to a checkerboard pattern of
city and county jurisdiction.
•Challenging for implementing long-term,
large-scale vision.
•Regional infrastructure improvements
would be difficult to implement.
•New development and redevelopment
hindered by inadequate or non-existent
infrastructure.
Annex portions of enclave in phases
•Costs can be anticipated by annexation
phase.
•Phases provide structure for an
implementation framework.
•Predictability for residents and businesses.
•City would still incur significant cost burden
as phases are brought into the city.
Annex portions of the enclave at ‘tipping point’
intervals
•Council and staff can frequently revisit and
consider tipping points.
•Proactively allows planning for and
accommodation of tipping points without
the need to take on a specific potential
annexation strategy.
•The EMP document can serve as an
implementation tool and resource rather
than just high-level guidance.
•Open-ended nature of timing could be less
predictable for businesses and residents.
•May require additional and ongoing
coordination with Larimer County.
Page 27
Item 1.
What are tipping points?
•Catalytic investments or changes in condition that may prompt annexation into the city.
16Tipping Points Approach
Annexation Approach Based on Tipping Points
Tipping point and
annexation
consideration
5+
years
Tipping point and
annexation
consideration
10+
years
15+
years
Tipping point and
annexation
consideration
Page 28
Item 1.
Tipping Points –Potential Scenarios
•Maintaining Logical Boundaries: Voluntary
annexation patterns establish islands of parcels
surrounded by City of Fort Collins.
•Goal: Create or maintain logical boundaries
for enforcement and provision of service.
•Proactive Resource Protection: Imminent
impact to a critical natural resource or buffer.
•Goal: Apply the city’s natural resource
protection standards.
•Redevelopment Risk: Eventual property sales
could pose risk to mobile home parks.
•Goal: Protect existing affordable housing
stock.
•External Funding: The city receives external
funding for a major infrastructure improvement
project.
•Goal: Lower the cost burden of annexation.
Page 29
Item 1.
Type of Plan
Update
Annexation
Strategy Work to be Performed Resource Needs Result
Targeted
update of the
existing EMP
•Assumes
voluntary
annexation at
a parcel level
over time
•Out-of-date conditions
addressed
•Update Framework Plan
and other elements to
align with City Plan
•Fewer staff
resources
required than
anticipated
•Plan is a
policy
guidance
document (like
2002 EMP)
Full update to
provide a more
specific
annexation and
land use
strategy
•Assumes
annexation
under a
‘tipping
points’
framework
•Out-of-date conditions
addressed
•Catalytic tipping points
identified for future
annexations
•New implementation
framework
•Current work
plan and staffing
resources
anticipate full
update
•Plan is a tool
to guide
decision-
making and
investment
18Plan Update Considerations
Options for Consideration: Plan Update
Page 30
Item 1.
19East Mulberry Plan Update -Anticipated Schedule
Sep Oct Nov Dec Jan Feb
Public Engagement
Council Interactions
Draft Plan
Final Plan
Mar Apr
Oct. 20
Council
Finance
Committee
Nov. 8 Council
Work Session
First Reading
of Draft Plan
Second Reading
of Plan
Feb. Council
Work Session
2022 2023
We are here
Page 31
Item 1.
Questions
•Does Council have feedback on a potential annexation approach based on tipping points?
•Would Council prefer a more targeted update or a full update of the East Mulberry Plan?
Page 32
Item 1.
Page 33
Item 1.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 6
December 13, 2022
WORK SESSION AGENDA
ITEM SUMMARY
City Council
STAFF
Ginny Sawyer, Project and Policy Manager
Jennifer Poznanovic, Sr. Manager, Sales Tax & Revenue
SUBJECT FOR DISCUSSION
Sustainable Funding Discussion.
EXECUTIVE SUMMARY
The purpose of this work session is to discuss sustainable funding efforts to date and to seek Council
directions for next steps.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. What questions does Council have regarding these efforts?
2. Does Council support continued efforts on funding for all four priority areas?
3. Is there any area Council would prioritize if there is a phased approach?
BACKGROUND / DISCUSSION
Over the past several years, masterplan developments and updates have identified clear funding needs
in the areas of parks and recreation, transit, and housing. Along with these needs the criticality of
advancing City climate action goals has also been identified as an area of need. Original estimated
annual shortfalls ranged from six to twelve million per area.
When conversations were first initiated, funding needs included:
Parks & Recreation - $8 to $12M annual shortfall (Parks & Recreation Master Plan)
Transit - $8M to $10M annual shortfall (Transit Master Plan)
Housing - $8M to $9.5M annual shortfall (Housing Strategic Plan)
Climate - $6M+ annual shortfall (Our Climate Future Plan)
Throughout 2022, staff has worked with the Council Finance Committee (CFC) to refine and better
articulate the needs and what additional funding would accomplish. CFC discussions have also focused
on potential funding mechanisms and the impacts and implications of various strategies.
Page 34
Item 2.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 6
Discussions and feedback to date have highlighted a desire to:
Clearly define and articulate revenue needs and level of service considerations.
Thoroughly research funding options including impacts and the context of existing and potential
new tax measures (local and regionally.)
Work to keep overall resident impact and tax burden as low as possible.
Consider existing dedicated tax renewals and associated election timelines in a strategic manner.
These considerations were also supported by the full Council at the April 12, 2022, work session.
Funding Gaps
Since April, staff has engaged with CFC in June, September, and November to clarify funding needs.
These efforts have resulted in updates to the funding gaps (see below) and more focused funding
strategies.
Transit from $8-$10 to $14.7M
Climate from $6M to $9.5M
With total annual shortfalls ranging from $30-$40 million discussions have focused on understanding
priorities in each area and how additional money would be spent.
Parks and Recreation needs are in operations and maintenance and infrastructure replacement.
Additional funding is needed to maintain existing assets and to stay current with community needs and
trends. (https://www.fcgov.com/parks/files/fort-collins-parks-infrastructure-replacement-program-
management-plan_compressed.pdf?1665426175)
Transit funding needs have been identified to build out the transit system to the 2040 vision. Shorter
term needs would focus on capital investments and increased frequencies. Longer term funding would
focus on local grant matches for larger projects. (Slide 13)
Fort Collins Housing goals call for increasing affordable housing stock to 10% total. Additional funding
could be utilized in a variety of ways including expanding the competitive funding process and/or
expanding and initiating City-led efforts. (Slide 14)
The Climate Action focus would be on reduction strategies identified in Our Climate Future Big Moves.
(Attachment 1 and slides 15 & 16)
Potential Funding Options
The City, and most Colorado local governments, rely mostly on sales tax for revenue. When initiating the
sustainable funding conversation all potential options were considered and discussed. Below is the full
Page 35
Item 2.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 6
list of potential funding options with revenue projections and anticipated impacted groups.
Through CFC discussion and analysis, sales tax, property tax and excise taxes emerged as the most
feasible mechanisms. The table below demonstrates the potential revenue gain along with estimated
annual impact to residents. Capital expansion fees are listed and is something staff will pursue during the
Fee Study in 2023.
Sales Tax: Sales tax has been the most traditional revenue source for the City. Our base rate is
currently 2.85%. There are four dedicated ¼ cent taxes. These taxes are paid on any purchase made
within the city. Requires voter approval. (Groceries taxed at 2.25%).
Page 36
Item 2.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 4 of 6
Property Tax: Since 1992, the City has collected 9.797 mils of property tax which equates to 10.5% of a
Fort Collins property owners total annual property tax. Below is the breakdown of what a Fort Collins
property owner pays in property tax.
Poudre Fire Authority gets 67% of the City’s portion (approx. 6 of the City’s 9 mills) of property tax
amount through an intergovernmental agreement. Requires voter approval.
Excise Tax: An excise tax is an additional tax on a specific product. Fort Collins does not currently have
any excise taxes. These taxes are typically seen on luxury goods, sugar sweetened beverages, or as
“sin” taxes on tobacco, marijuana, and alcohol.
For consideration in these discussions, staff has estimated excise tax revenue using a 5% tax on
marijuana. Numerous other municipalities across Colorado have an additional excise tax on marijuana
and have not experienced negative impacts. Police Services has found that “gray/black” market
marijuana activity in Fort Colins is focused on transport out of state, not on sales and availability to
residents or minors. Police Services is reporting an uptick in underage sales of tobacco.
Staff is also researching excise tax mechanisms to generate revenue and change behavior in natural gas
use. This includes options for implementing either a methane excise tax or a usage fee.
Any excise tax would require voter approval.
Funding Scenarios
Achieving additional funding will likely be a phased effort that lessens the funding gaps incrementally
over time. Knowing this, and through CFC conversations, demonstration scenarios target pursuing new
revenue in a $25M range.
Page 37
Item 2.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 5 of 6
The scenarios presented are not intended to be final or recommended options. They are intended to
demonstrate the flexibility and variable means and ways to add additional revenue to cover the identified
gaps.
The two scenarios include anticipated impacts to a household of three and range from $156 annually to
$107 annually. The models focus on property tax, sales tax and excise tax.
Staff has also calculated the impact to 3-person households at both 50 and 80% AMI and found the
lowest impact to be 0.14% of total annual income to 0.32% at the high end.
Scenario A:
4.1% sales tax/estimated $156 annual cost to a 3-person household.
*Assumes a family of three
Scenario B:
3.85% sales tax (no increase). Higher property tax and impact to homeowners.
Page 38
Item 2.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 6 of 6
Election Timeline Considerations
Per the recent ballot initiative, City elections will now be in November. Tabor initiatives cannot be
considered during special elections.
Street Maintenance and Community Capital Taxes expire December 31, 2025. November 2024 and April
2025 would have been traditional elections to target for renewal.
NEXT STEPS
Based on Council direction, staff will continue to work with Council Finance Committee to establish
preferred funding mechanisms and how to direct funding, election timelines, and an engagement plan.
ATTACHMENTS
1. Climate CFC Summary
2. Presentation
2023 2024 2025 2026
November November November November
Page 39
Item 2.
COUNCIL WORK SESSION
AGENDA ITEM SUMMARY ATTACHMENT 1
Staff: Honore Depew, John Phelan, Javier Echeverría Díaz, Megan Valliere
Date: December 13, 2022
SUBJECT FOR DISCUSSION Sustainable Funding – Climate
Climate Funding
Council Finance Committee Discussions Summary
Over the course of the last year, the Council Finance Committee (CFC) has expressed the need
to include climate-dedicated funding as the “fourth corner” of the sustainable funding discussion.
At the November CFC meeting staff presented five options for generating climate-focused
revenue. (Nov. 3, 2022 CFC AIS – pg. 84)
The options presented were based on initial research and case studies of peer municipalities.
The primary factors considered for each option were potential uses, revenue generation,
flexibility, and equity. CFC made the following recommendations:
Continue to consider climate funding needs as part of the overall new revenue
discussion. Examples include:
o Denver’s Climate Protection Fund
quarter cent sales tax dedicated to climate resilience
allowable uses include buildings, renewables, workforce, transportation,
environmental & climate justice, adaptation & resiliency, and
administration
o Portland Clean Energy Community Benefits Fund
1% surcharge on gross revenues from retail sales on all large retailers in
the city with over $1 billion in national sales and $500,000 in local sales
annually
allowable uses include renewable energy & energy efficiency, job
training/apprenticeships & contractor support, regenerative agriculture &
green infrastructure, and future innovations
Prioritize staff research in 2023 to define options for revenue generation and related
behavior change impacting methane gas (aka natural gas) usage. This research would
include options for implementing either a methane excise tax or a usage fee and
program design to compensate for inequitable impacts (e.g., automatic income-qualified
exemptions).
o A regional example is Boulder’s experience in environmental revenue generation
through similar utility-related taxes.
What Could Dedicated Climate Revenue Fund?
If a proposal for new sustainable climate funding is advanced, and especially if some portion
derives from a voter-approved tax, a clear description of allowable uses for those funds must be
developed. That process could rely on extensive community leadership to ensure funds were
used in equitable and impactful ways. It could also involve understanding voter preference using
focus groups and surveys to match allowable uses directly to community climate priorities.
Page 40
Item 2.
These approaches have helped peer communities successfully achieve their goals for climate
revenue generation.
Because the Our Climate Future (OCF) plan is a community vision for a sustainable future Fort
Collins, it provides a strategic foundation for establishing specific areas to focus needed
funding. As a starting place the Big Moves and the strategies (Next Moves) therein allow staff
to suggest what new sustainable funding might be used for. Many of the strategies below were
discussed by City Council during a Work Session earlier this fall as part of an OCF Council
Action Road Map and the 2030 OCF Pathways.
Shared Leadership and Community Partnership (Big Move 1)
Targeted climate justice initiatives to invest in community capacity to lead.
o Community-led action grants and precursor funding
(e.g., relationship building & grant readiness)
o Equity trainings for staff and partners
o Community consultant program
o Climate equity committee
Zero Waste Neighborhoods (Big Move 2) and Zero Waste Economy (Big Move 10)
Support neighborhoods and businesses as they transition to zero waste.
o Circular economy strategies
o Innovate Fort Collins Challenge on circular start-ups/initiatives
o Removing recycling barriers with equity focus
Climate Resilient Community (Big Move 3)
Enhance community systems for responding to extreme climate events and adapt to a
changing climate.
o Emergency weather event response plans and facilities
o Enhanced water efficiency strategies
o Neighborhood scale resilience
Efficient, Emissions Free Buildings (Big Move 6) and Electric Cars and Fleets (Big Move 13)
Expanded programs and services for transition of heating and vehicles to efficient
electric.
o Efficiency improvements
o Panel and service upgrades
o Workforce and supply chain support
o EV managed charging options
o EV charger installation support
o Electric grid flexibility systems
Next steps
Continue collaboration with the Finance team and other departments on potential joint
efforts to develop new revenue options for Council consideration.
Page 41
Item 2.
Research revenue options (both fees and taxes) related to methane gas use, including
legal, administrative, and equity requirements and considerations in the first half of 2023.
Determine timeline for Larimer County/State deadlines for ballot measure submission for
TABOR-related issues.
Page 42
Item 2.
Content from November CFC meeting below
EXECUTIVE SUMMARY
The purpose of this item is to respond to the requests at the September 1, 2022, Council
Finance Committee (CFC) meeting and provide several models for climate revenue generation
for consideration. Five options for generating climate-focused revenue are summarized, along
with the current revenue built into Utilities’ electricity rate structure that supports climate
initiatives.
The options presented include:
1) Sustainable Revenue – for parks, transit, housing and climate (in alignment with the
ongoing CFC discussions)
2) OPTION 1: Dedicated Sales Tax – specifically for climate initiatives
3) OPTION 2: Natural Gas – excise tax
4) OPTION 3: Natural Gas – as proxy fee for emissions
5) OPTION 4: Large Emitter Fee
These options are summarized based on initial research and case studies of peer
municipalities. If directed, extensive additional legal and policy analysis will be needed for those
options selected to be explored further in 2023. Given the additional time needed to conduct in-
depth analysis for further consideration of each option, staff is requesting to know which
approaches CFC members would like to remove from consideration at this time. Staff
recommends exploring Options 1 & 2 further. Greater detail on future revenue use will be part of
the December 13 Council Work Session.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
BACKGROUND/DISCUSSION
Over the last year, City staff have identified and presented to Council Finance Committee (CFC)
various revenue generation mechanisms to provide necessary resources for parks, housing,
and transit. Since the conversation began, CFC has indicated a desire to see climate funding
included as the “fourth corner” of the dedicated funding discussion. During the September 1,
2022, CFC meeting, staff presented a brief and general overview of potential revenue
generation mechanisms for ongoing climate funding. After the staff presentation, which included
only brief remarks on fees for large emitters, staff heard a clear request by committee members
to present additional research and data exploring ways to both generate climate revenue and
drive changes to systems and behaviors.
The analysis contained in this agenda item summary details the high-level, conceptual research
in this area for CFC review. Should CFC desire more information about any of these options, it
will require more in-depth policy and legal analysis in 2023 to determine how they would be
implemented in the context of the City of Fort Collins, our existing finance and revenue
generation tools, and the suite of options being presented to Council for sustainable revenue for
parks, housing, transit, and climate.
The options detailed below and included in an attached summary table (See Appendix 1) are
divided into two categories - Core, Ongoing Climate Funding and Acceleration Opportunities /
Enhancements to Core. Staff considers Core Funding to include funding from the existing
Utilities rate structure and possible new funding from the outcomes of the broader Sustainable
Page 43
Item 2.
Revenue project. Potential Acceleration Opportunities include options that would generate
dedicated climate revenue while also working toward Our Climate Future goals using financial
incentives and disincentives that encourage systems and behavior change within the
community. The options are summarized below with detailed discussion available in the
attached Appendix 2. The summaries include a brief overview of the funding mechanism (i.e.,
description, potential uses of funding, revenue potential (when available), flexibility of funds) and
key policy considerations (equity considerations and implementation notes).
Core, Ongoing Climate Funding
Core Funding includes revenue from the existing Utilities electricity rate structure and possible
new funding from the outcomes of the broader Sustainable Revenue project.
Existing Revenue (Utilities)
Overview
The existing electrical rate structure generates funds directly from customers to help manage
community electricity use and carbon emissions. Current electric use would be 21% higher
without this funding, which has been in place since 2005. A portfolio evaluation of Utility
programs confirmed that for every $1.00 invested, Utility efficiency programs recognized $1.80
in local community benefits.
Uses: Program resources are available for residential, commercial and industrial
customers and are closely coordinated with Platte River Power Authority. The funds are
used to support a range of climate initiatives, including energy efficiency, increased
renewables, and enhanced grid flexibility.
Revenue: Fort Collins Utilities generates more than $6 million annually from the existing
rate structure. City Council approves the Utility customer electric rate structure by
ordinance annually or when needed.
Flexibility: Funds are allocated through the Fort Collins Budgeting for Outcomes (BFO)
process. As a result, the funds can be used for a wide array of purposes that align with
the Fort Collins Utility charter.
Key Policy Considerations
Equity: The BFO process and staff program design can support equitable distribution of
the funds. Past examples include Epic Homes focus on rental properties, the Larimer
County Conservation Corp Energy and Water Program and targeted small business
lighting incentives.
Other Considerations: These ongoing and evolving programs have a proven track
record of positively impacting environmental, social, and economic conditions in Fort
Collins and contributing to the outcomes of the Our Climate Future plan.
Sustainable Revenue (Climate, Transit, Housing, Parks)
Overview
The New Revenue Core Team has presented and discussed the pursuit of sustainable revenue
via a repurposed sales tax, property tax, excise tax, user fee, or other mechanisms identified
and discussed in past CFC meetings. Splitting this revenue between parks, transit, housing, and
climate will provide ongoing funding for all four areas, enabling targeted spending on climate
Page 44
Item 2.
initiatives that will support the City and community in reaching our climate mitigation and
resilience goals.
Uses: A wide range depending on the structure of the revenue funding model which
could support residential, commercial, and industrial structures and users.
Revenue: Depends on the chosen structure.
Flexibility: Since any of the revenue generation mechanisms included in past
discussion can be written broadly to allow for a wide variety of investments and last for
as many years as the Council and community would like, this revenue will provide for
both flexibility and consistency in our approach.
Key Policy Considerations
Equity: These mechanisms affect a broad swath of the community and collect revenue
from most individuals in the city. Depending on structure, this approach will likely be
regressive (having a proportionally greater impact on low-income community members).
Equity considerations should be built in to these revenue options to reduce the impact on
specific community populations.
Implementation: These mechanisms, aside from user fees, require voter approval.
Acceleration Opportunities / Enhancements to Core
Potential Acceleration Opportunities include options that would generate dedicated climate
revenue while also working toward Our Climate Future goals using financial incentives and
disincentives that encourage systems and behavior change within the community.
OPTION 1: Dedicated Sales Tax for Climate Initiatives
Overview
This option could be considered separately from or as part of the new sustainable revenue
package being developed for parks, housing, transit, and climate funding. One possibility would
be to put forth a voter-approved tax for climate (inclusive of parks, housing, and/or transit) to
help accomplish Our Climate Future goals, or it could be an additional dedicated tax separate
from the package of new revenue tools discussed above. Examples include Denver’s Climate
Protection Fund and the Portland Clean Energy Community Benefits Fund (both are described
in detail in the attached Appendix 2).
Uses: Both Denver and Portland’s funds can be applied to a wide range of allowable
uses, including: buildings, renewables, workforce, transportation, environmental &
climate justice, regenerative agriculture, green infrastructure, adaptation & resiliency,
future innovations, and administration.
Revenue: Denver’s fund generates $40 million annually and Portland’s generates $30 to
$60 million depending on the source. Local revenue generation would depend on the
rate and applicability of the tax and should be expected to be significantly lower given
the population differential between Fort Collins and Denver/Portland.
Flexibility: A dedicated sales tax can be written to have a wide range of allowable uses,
as in the Denver and Portland case studies. Staff views this potential revenue source as
highly flexible as well. As in the case of core new revenue, this funding could last as long
as Council and the community would like, and it would impact the entire community as
well as visitors who enter the City and pay sales tax as part of their purchases while in
town.
Page 45
Item 2.
Key Policy Considerations
Equity: Sales taxes are inherently regressive, but Denver has found a way to distribute
resources generated from their tax equitably. Denver’s ordinance creating the Climate
Protection Fund (CPF) states that it “should, over the long term, endeavor to invest fifty
percent (50%) of the dedicated funds directly in the community with a strong lens toward
equity, race and social justice.” Portland only assesses a surcharge on gross revenues
from large retailers due to their outsized impact on climate change. Small retailers were
excluded to minimize impacts on small- and medium-sized businesses within the
community.
Implementation: A dedicated sales tax requires voter approval.
OPTION 2: Natural Gas Excise Tax
Overview
One policy option that could both raise revenue and disincentivize emissions is an excise tax on
natural gas use. A new tax could be assessed on the delivery of natural gas and charged
directly to the entities that deliver natural gas (e.g., Xcel Energy). The delivery entity would have
discretion on how to pass the cost along to customers. A local example is Boulder’s experience
in environmental revenue generation through a similar tax structure (for a detailed description of
the current and proposed Boulder approaches see the attached Appendix 2).
Uses: In Boulder, the revenue collected from their existing climate taxes has been put
toward rebates and incentives to help residents and businesses reduce energy usage
and implement solar solutions, piloting innovative technologies, implementing local
policies, lobbying and advocacy for regulatory changes at other levels of government,
and other initiatives related to reaching the City’s clean energy goals. Their proposed
natural gas excise tax includes allowable uses for revenue such as direct cash
assistance for energy efficiency, microgrid energy storage, building electrification,
transportation infrastructure electrification, natural climate solutions, and wildfire
resilience.
Revenue: Revenue generation locally will vary depending on how it is structured and
could be one of the higher-impact options to consider. Because staff expects the
community to slowly phase out its dependence upon natural gas, revenue generated
from an excise tax of this type will likely endure for greater than ten years and into the
foreseeable future. In Boulder, the combined total of average annual revenue for their
existing two taxes is roughly $3.9 million per year and could increase to $6.5 million per
year with their tax consolidation proposal this November.
Flexibility: The Council can structure allowable uses for the tax as broadly as it would
like in the ballot language, therefore, this revenue generation mechanism could be highly
flexible.
Key Policy Considerations
If Council is interested in pursuing this option, staff will need to conduct additional research and
analysis to determine estimates for implementation and administrative costs.
Equity: Staff would classify this mechanism as regressive since the City maintains little
control over how natural gas providers pass costs onto their customers and because an
excise tax on a utility will likely impact low-income customers to a greater degree than
middle- and high-income customers. Boulder is pursuing options to enhance the
equitable application of the tax.
Implementation: A new excise tax requires voter approval. There may be several legal
complexities with implementing a general tax on natural gas providers that is then
passed onto consumers, especially given the City’s current contract with Xcel Energy.
Page 46
Item 2.
The City currently maintains a franchise fee agreement with Xcel Energy which grants
them the nonexclusive right to use City streets, public utility easements, and other City
property for the purpose of providing natural gas service in exchange for a fee, which
they pass down to consumers. More information about the City’s franchise agreement
with Xcel Energy can be found below.
OPTION 3: Natural Gas as Proxy Fee
Overview
When considering potential revenue from medium-sized emitters (entities not required to report
to the EPA because they are under the 25k MT CO2e/year) natural gas consumption could be
used as a proxy for emissions, and a fee could be charged to medium-sized emitters. This
option is the least-well understood due to staff’s inability to find local, regional, or other peer
examples of this type of program.
Uses: The use of these funds would need to be tied to the actions or behavior of the
feepayer limiting the ability to achieve broader Our Climate Future goals and objectives.
Revenue: For the same reason as the previous option, staff believes that revenue
generated from this mechanism will endure for greater than ten years and into the
foreseeable future.
Flexibility: Fees must legally have a narrower use that applies these recovered dollars
to the cost of programs that address shortfalls imposed by feepayers. The use of
revenue generated via this mechanism would be restricted to a greater degree than a
voter-approved tax. Council and City Staff would need to brainstorm creative ways to
use revenue to target emissions in a way that ties the fee revenue to the costs incurred
due to activities related to GHG emissions by the City’s largest emitters.
Key Policy Considerations
Since the City does not supply natural gas, staff does not currently have access to consumption
levels by account within the community. Should Council be interested in pursuing this type of
revenue generation, staff will need to invest time and resources into understanding the legal and
policy-related complications that may arise from the use of a fee-based mechanism.
Researching how staff will collect data on the largest natural gas emitters in the community will
present an additional hurdle for this option.
Equity: Since the fee would directly target the community’s largest emitters, it would be
levied equitably. Nonetheless, Council and staff would still need to make intentional
investments of fee revenue in ways that are both legal and equitable to enhance the
community-wide impact of the revenue.
Implementation: A fee does not require voter approval. The largest barrier to this type
of program is determining exactly which consumers would be subject to the fee (i.e., the
top 50 or 100 consumers, consumers above a certain threshold, etc.) and how the City
would collect that information. At this time, staff does not have an estimate of the
implementation/administrative costs of a natural gas proxy fee, in part due to a lack of
peer examples in this space.
OPTION 4: Large Emitter Fee
Overview
A “large emitter” would be defined as those entities reporting more than 25,000MT CO2e
annually, as reported to the EPA. The recommended fee would be based on the Social Cost of
Carbon, which is priced at $51/MT of carbon emitted. At this level of carbon emissions, there
Page 47
Item 2.
are three facilities within City limits to which the fee would apply, Broadcom, Colorado State
University, and Anheuser Busch (details on emissions available in the attached Appendix 2).
Uses: Fees require the organization to use the recovered revenue in pursuit of programs
and policies that connect to the issue caused by the behavior or actions of the feepayer.
Consequently, the safest investment of fee revenue would result in the City providing
programs or rebates that earmark funding for these entities to address large sources of
emissions and their impact on climate and environment in our community.
Revenue: Assuming a fee of $51/MT of carbon emitted this revenue mechanism could
generate as much as $10.9 million annually (details of the revenue calculation available
in the attached Appendix 2). As with many behavior-based policy interventions, revenue
is expected to decrease over time as emitters align their behavior with the expectations
of the policy in an attempt to reduce their overall costs.
Flexibility: Fees must legally have a narrower use that applies these recovered dollars
to the cost of programs that address shortfalls imposed by feepayers, the use of revenue
generated via this mechanism would be restricted to a greater degree than a voter-
approved tax. Council and City Staff would need to brainstorm creative ways to use
revenue to target emissions in a way that ties the fee revenue to the costs incurred due
to activities related to GHG emissions by the City’s three largest emitters.
Key Policy Considerations
Further staff analysis is necessary to understand the resource-intensiveness of this approach in
terms of administrative costs as staff is unaware of other analogous programs for comparison.
In terms of equity, staff’s evaluation is that this mechanism is generally more progressive in
nature than other options since it targets the highest emitters in the community. Nonetheless, it
also creates an arbitrary line between emitters that are required to report to EPA and those just
under the threshold of 25MT, potentially creating equity issues between entities just above and
below the line.
Equity: Since the fee would directly target the community’s largest emitters, it would be
levied equitably. Nonetheless, Council and staff would still need to make intentional
investments of fee revenue in ways that are both legal and equitable to enhance the
community-wide impact of the revenue.
Implementation: Because this revenue generation strategy is not a traditional tax, it
does not require voter approval via ballot initiative. This may ultimately lessen the
procedural hurdles toward implementation. CSU is a separate governmental entity unlike
the other two private enterprises, the likelihood of legal complexity is relatively high
according to analysis by the City Attorney’s Office.
Additional Lever – Natural Gas Franchise Fee
The City assesses a tax called an occupational privilege gas service tax paid by Xcel Energy to
the City in exchange for the non-exclusive right of the company to use City streets, public utility
easements, and other City property for the purpose of providing utility service to the City and
residents. The franchise agreement specifies that Xcel must collect the fee via a surcharge
upon City residents who are customers of the company. The fee is then remitted to the City in
monthly installments.
Page 48
Item 2.
Allocation of Existing Franchise Fee Revenue
The revenue generated from this tax averages nearly half a million dollars per year (historical
detail available in the attached Appendix 2), all of which is then funneled directly into the
general fund.
The franchise fee was originally instated in 1987, and several updated agreements between the
City and Xcel have been executed in the decades since. The latest agreement was signed in
2018 and stipulates the terms of the franchise fee, including the maximum surcharge to be
collected from customers, which is set at 3%. The current franchise agreement is set to
terminate in 2038.
While franchise fees can provide reliable and sustainable revenue for the general fund which
can then be allocated flexibly based upon the needs of the greater organization (as is currently
the case in Fort Collins, Greeley, Thornton, Lakewood, and Frisco, CO) some municipalities
have leveraged these funds creatively in pursuit of climate and environmental health goals
(examples are available in the attached Appendix 2).
Importantly, redirecting the use of franchise fee revenue at its currently negotiated level of 3%
for climate-related goals, policies, and programs does not constitute new revenue generation in
the context of the present sustainable revenue conversation.
Renegotiation of Franchise Fee
While redirecting the use of current franchise fees solely to climate-related programs does not
create new revenue, Council could endeavor to reopen and renegotiate the terms of the current
agreement to raise the surcharge on customers. If, for example, the surcharge was doubled to
6%, the City could generate an additional $300k - $500k per year on average. This could raise
the annual revenue to a total yearly average of between $600k - $1M which could be leveraged
in pursuit of GHG reduction goals outlined in Our Climate Future plans.
Staff Recommendation and Next Steps
Staff recommends further legal and policy analysis of Options 1 & 2 as part of the broader
Sustainable Revenue conversation. These tax-based options for climate revenue generation are
anticipated to have longer timeframes, higher flexibility for use of funds, and fewer legal
complications compared with (fee-based) Options 3 & 4.
Next steps for this process will be:
Take CFC guidance on which options to investigate further
Provide a timeline to the full City Council at the December 13 Sustainable Funding Work
Session that includes future analysis of the selected revenue generation strategies
The December Work Session will also be an opportunity to go deeper into what new revenue
may be used for. As shared in the recent OCF Work Session, there will be many investments
needed to achieve adopted climate and waste goals, in alignment with the OCF Pathways and
the Council OCF Action Roadmap.
Page 49
Item 2.
ATTACHMENTS
1. PPT – Sustainable Funding: Climate Options
2. Appendix 1 – Climate Revenue Options Summary Table
3. Appendix 2 – Climate Revenue Options Research and Discussion
Page 50
Item 2.
Key
Considerations Core, Ongoing Climate Funding Acceleration Opportunities / Enhancements to Core
Existing revenue
(Utilities)
Sustainable
Revenue
(Climate,
Transit,
Housing, Parks)
OPTION 1: Dedicated
Sales Tax for Climate
Initiatives
OPTION 2:
Natural Gas
Excise Tax
OPTION 3:
Natural Gas as
Proxy Fee
OPTION 4: Large
Emitter Fee
Flexibility of
funds use
Med Highest Higher High Low/Med Low
Voter approval
required
N Y Y Y N N
Estimated
revenue
generated / yr*
$6.5M $$ $$ $$ / $$$ $$ $$ / $$$
Implementatio
n resources
needed
13 FTE
(embedded in
biannual budget)
TBD TBD
Denver admin costs
limited to 5% of
revenue; Portland
considering increase
for admin costs from 5
to 12%
TBD
Boulder FTE costs
up to 33% of
revenue (14-16
FTEs including
existing)
TBD TBD
Duration Ongoing Ten years +
unless permanent
adoption
Ten years + unless
permanent adoption
Ten years+ Ten years+ < 5 years
Number of
entities
affected
Community-wide
(all electric utility
customers)
Community-wide Community-wide Taxing natural gas
industry (passed
down community-
wide)
5-100 largest
emitters
3 entities
reporting to EPA
Equity
considerations
**
Balanced Regressive Regressive Regressive Progressive Progressive
Example
applications
from other
communities
Energy
Efficiency
Programs
Solar and
storage
customer
programs
Grid Flexibility
programs
N/A
(Tailored
discussion for
Fort Collins-
specific deficits)
Denver ($40-50M / yr);
Denver allowable uses:
Sustainable
Transportation
Workforce
Development
Resilience
Buildings
Renewables
Boulder ($6.5M /
yr)
Allowable uses:
Direct cash
assistance for
energy
efficiency
Microgrid,
energy
N/A
(Staff is not
aware of peer
communities
instituting a fee
of this type)
N/A
(Staff is not
aware of peer
communities
instituting a fee of
this type)
Page 51
Item 2.
Key
Considerations Core, Ongoing Climate Funding Acceleration Opportunities / Enhancements to Core
Existing revenue
(Utilities)
Sustainable
Revenue
(Climate,
Transit,
Housing, Parks)
OPTION 1: Dedicated
Sales Tax for Climate
Initiatives
OPTION 2:
Natural Gas
Excise Tax
OPTION 3:
Natural Gas as
Proxy Fee
OPTION 4: Large
Emitter Fee
Climate Justice
Portland (1% sales tax
on large retailers,
annual revenue of
about $30 $60M);
Portland allowable
uses (grant funding):
Renewable
energy & efficiency
Job training,
apprenticeships, &
contractor support
Regenerative
agriculture & green
infrastructure
Innovation
storage,
building
electrification
Transportat
ion
infrastructure
electrification
Natural
climate
solutions
Wildfire
resilience
Next Steps Ongoing budget
processes
(Existing revenue
source)
Work with CFC
and Council
during Dec. work
session to further
solidify desired
revenue
generation
approaches and
allocation of
dollars to climate
work
Further analysis of
implementation
strategies and
resources necessary to
administer this kind of
tax/program (FTEs,
administrative costs,
etc.)
Further analysis of
the legality of
maintaining a
franchise
agreement
alongside a
general
occupational
privilege tax that
acts as a natural
gas excise tax.
Further analysis of
resources
necessary to
administer the
program.
Extensive legal
and policy
analysis of the
practicality of
pursuing a fee-
based
mechanism, how
to obtain
information
about top 5-100
natural gas
users, how to
structure the fee,
and the
administrative
resources
necessary.
Extensive legal
analysis of fee to
program dollar
nexus, greater
understanding of
CSU/Broadcom/
Anheuser Busch
efforts to reduce
emissions below
EPA required
reporting level,
and further study
on administrative
resources
necessary.
Page 52
Item 2.
Key
Considerations Core, Ongoing Climate Funding Acceleration Opportunities / Enhancements to Core
Existing revenue
(Utilities)
Sustainable
Revenue
(Climate,
Transit,
Housing, Parks)
OPTION 1: Dedicated
Sales Tax for Climate
Initiatives
OPTION 2:
Natural Gas
Excise Tax
OPTION 3:
Natural Gas as
Proxy Fee
OPTION 4: Large
Emitter Fee
*For this conceptual analysis, potential revenue generated are rough estimates, corresponding to the following amounts:
$ = $1 – $5 million
$$ = $5 – $10 million
$$$ = greater than $10 million
**Equity considerations can be more nuanced than a simple categorization of “regressive” or “progressive” – we provided these simplified labels
to indicate the general slant of each mechanism. That said, there are several modifications that can be made to any of the options labelled as
“regressive” that address equity concerns. For example, a certain percentage of revenue generated from dedicated sales taxes can be
earmarked for investments in low-income communities or programs for income-qualified customers of City services. Similarly, a natural gas
excise tax could “kick in” only at a higher baseline level of consumption to mitigate impacts for low-income consumers. Even those mechanisms
that are generally labelled as “progressive” require intentional investments and program design elements that focus equity and environmental
justice. As a result, none of these revenue generation opportunities are regressive or progressive on their own; they each require deliberate
decisions that encourage equitable outcomes in terms of how taxes and fees are levied and how their revenues are invested.
Page 53
Item 2.
Page 54
Item 2.
SUSTAINABLE FUNDING UPDATE
12-13-2022
Council Work Session
Page 55
Item 2.
2City Council Direction
QUESTIONS:
What questions
does Council have
on these efforts?
Does City Council
support continued
efforts on funding for
all four priority areas?
Is there any area
Council would prioritize
if there is a phased
approach?
Page 56
Item 2.
3Work to Date
SUSTAINABLE FUNDING WORK-TO -DATE
Dec.
CFC
Jan.
CFC
Mar.
CFC
April
Council
Work
Session
Deep-Dive on Identified
Needs: Parks & Rec,
Transit & Housing
Dec.
Council
Work
Session
Funding Mechanisms
and Potential
Funding Levels
June
CFC
Sept.
CFC
Funding
Mechanisms & Early
Scenario Planning
Work Session
Direction and
Questions
Election options are
known for timeline
considerations
Nov.
CFC
Introduce Topic:
Sustainable
Revenue
Page 57
Item 2.
Identified Funding Needs 4
Masterplan Projects Masterplan to Build
Out Projects
To Achieve 10%
Affordable Housing Stock
Accelerate Electrification,
Increase Resilience and
Equity, Reduce Waste
ANNUAL REVENUE GAP = $30M TO $38M+
$6M+ Annual Gap$8-10M Annual Gap $8-9.5M+ Annual Gap$8-12M Annual Gap
Page 58
Item 2.
City Revenue 5
Sales Tax
Local Total: 3.85%
Base rate: 2.85%
Groceries: 2.25%
3 dedicated ¼-cent taxes:
Street Maintenance
Capital Improvement
Open Space
Keep Fort Collins Great
General ¼-cent
Property Tax
Fees, Fines, Grants
Page 59
Item 2.
6Tax Rate History
3.85%
Current City
Sales Tax rate
2.85%
•¼-cent Street Maintenance
•¼-cent CCIP
Expiring 12/31/2025:
Page 60
Item 2.
7Relative Price of Government
Price of Government examines how much residents pay for City
services compared to the estimated income in the community.
Downward trend over
the past 20 years
*Note: 2022 is estimated due to lag time in the availability of data from the U.S. Bureau of Economic Analysis; 2023-2024 are forecasts/projections
Page 61
Item 2.
8Governmental Revenue
Sales & Use Tax:
•Over 50% of the City’s
revenue without utilities
Property Tax:
•Current City mill levy of
9.797 has not increased
since 1992
•Poudre Fire Authority
receives 67% of the City’s
portion of property tax via
an IGA
Sales & use taxes,
53.22%
Charges for Services,
11.21%, 11.2%
Property taxes,
11.30%
Intergovernmental not
restricted to programs,
9.22%, 9.2%
Grants and
Contributions,
11.51%, 11.5%
Other, 3.56%, 3.6%
2021 REVENUE BY SOURCE –
GOVERNMENTAL ACTIVITIES $305.7 MILLION
Page 62
Item 2.
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 2021 2022
YTD*MillionsCity Net Taxble City % of County Sales City Pop % of County
FORT COLLINS NET TAXABLE SALES
(revenue trends and comparisons)
*YTD through August 2022
Page 63
Item 2.
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Boulder Denver Aurora*Grand
Junction
Brighton Colorado
Springs
Castle Rock Fort Collins Golden Littleton Greeley Loveland
State County Rate Other Taxes City Rate
10
Colorado City Full Stack
Sales Tax Rates
*Located in three counties
TOTAL TAX RATES
(revenue trends and comparisons)
Page 64
Item 2.
Identified Funding Needs 11
Masterplan to Build Out
Projects
To Achieve 10%
Affordable Housing Stock
To Accelerate Community
Transition From Fossil
Fuels
$9.5M+ Annual Gap$14.7M Annual Gap $8-9.5+ Annual Gap$8-12M Annual Gap
ANNUAL REVENUE GAP = $40M TO $46M+
Masterplan Projects
Page 65
Item 2.
12What Could Dedicated Parks & Rec. Revenue Fund?
Annual Gap ($M)Operations & Maintenance (Daily Tasks)Infrastructure Replacement
Parks $1.0 $8.2
Recreation $0.0 $2.3
Planting Refresh $0.6
Total $1.0 $11.1
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.
INFRASTRUCTURE REPLACEMENT (CAPITAL):Critical maintenance or repair of existing assets;can
also include strategic changes to existing parks or recreation facilities and design elements
•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 Page 66
Item 2.
Transit Master Plan Buildout
Local match for major capital projects
There are currently unprecedented Federal
dollars in grant funding available to fund
60-80% of large transit projects.
Short-& Mid-term Examples:
•West Elizabeth Bus Rapid Transit
•North transit maintenance facility
(needed for further expansion)
•Electrification and ultimate zero-emission
of bus fleet
•Additional charging infrastructure
•North College MAX extension
•Mobility hubs
13What Could Dedicated Transit Revenue Fund?
Improve route frequencies and add new service
The Transit Master Plan identified frequency
and service expansions that would greatly increase
transit ridership.
Short-term Examples:
•Procure additional buses and
increase operational frequencies
•Increase frequency on Drake from 30 to 15 minutes
•Increase frequency on North College from 30 to 15
minutes
•Increase off-peak frequency on Shields from 60 to 30
minutes
•Add new route with 30-minute frequency on Lemay/Trilby
•New southeast micro-transit service
•Page 67
Item 2.
14What Could Dedicated Housing Revenue Fund?
Expand the City’s competitive funding process
to better support projects seeking to: Acquire land,
develop new affordable housing, preserve existing
affordable housing, support residents.
Examples:
Housing acquisition (redevelopment/preservation)
Land acquisition
New construction costs
Affordable homeownership renovation
Renovate 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:
Acquire properties for Land Bank (expand)
Offset fees for affordable projects (expand)
Develop incentive programs (energy efficiency,
voluntary affordability restrictions, etc.)
Explore redevelopment partnerships
Other innovative approaches (middle income, mixed
income, etc.)
Accelerate Housing Strategic Plan Implementation
Page 68
Item 2.
15
Examples of Accelerated Implementation of Our Climate Future Big Moves
Targeted climate justice initiatives to invest in
community capacity to lead.
Community-led action grants and
precursor funding (e.g. trust building)
Equity trainings for staff and partners
Community consultant program
Climate equity committee
Shared Leadership
and Community
Partnership1BIG MOVE
Support neighborhoods and businesses as they transition to zero waste.
Zero Waste
Neighborhoods
Zero Waste
Economy2BIG MOVE 10BIG MOVE
Circular economy strategies
Innovate Fort Collins Challenge on circular start-ups/initiatives
Removing recycling barriers with equity focus
What Could Dedicated Climate Revenue Fund?
Page 69
Item 2.
16What Could Dedicated Climate Revenue Fund?
Examples of Accelerated Implementation of Our Climate Future Big Moves
Enhance community systems for
responding to extreme climate events
and adapt to a changing climate.
Emergency weather event response
plans and facilities
Enhanced water efficiency strategies
Neighborhood scale resilience
Climate Resilient
Community3BIG MOVE
Expanded programs and services for transition of heating
and vehicles to efficient electric.
Efficient,
Emissions
Free Buildings
Electric
Cars and
Fleets6BIG MOVE 13BIG MOVE
Efficiency improvements
Panel and service upgrades
Workforce and supply chain support
EV managed charging options
EV charger installation support
Electric grid flexibility systems
Page 70
Item 2.
17
Mechanism Annual Revenue
Projection
Impact to
Residents
1 Special districts (Library District Mill Levy 3.0)$11M+Business, Resident
2 Property tax (Library District Mill Levy 3.0)$11M+Business, Resident
3 Large emitters fee $11M+Business
4 ¼-cent sales tax base rate increase $9M+Resident, Visitor
5 ¼-cent additional dedicated sales tax $9M+Resident, Visitor
6 Repurpose ¼-cent dedicated tax $9M+Resident, Visitor
7 Excise tax on specific goods $5M Resident, Visitor
8 Business occupational privilege tax ($4 monthly/$48 annually)$4M+Business
9 Tax on services (i.e., haircuts, vet service, financial services, etc.)$4M+Business, Visitor
10 User Fees (parks, transit) ($5 monthly/$60 annually)$4M Resident
11 Reconfigure capital expansion fees (Affordable housing)$2M Business
12 Establish new capital expansion fees (Affordable housing)$2M Business
13 Carbon Tax $2M Business
FULL LIST
Potential Funding Options
Page 71
Item 2.
18Mechanics & Residential Impact
Category Funding Mechanism Annual Revenue
Estimate Household Impact
Sales Tax ¼-Cent Sales Tax
(dedicated, ongoing or repurpose)$9M+
•$30.67 average per year for a resident
•Sales tax on food would remain at 2.25%
•Visitors also impacted
Property Tax 1 Mill Property Tax $3.5M •Residential annual increase of $21.45
•Commercial annual increase of $87.00
2 Mill Property Tax $7M+•Residential annual increase of $42.90
•Commercial annual increase of $174.00
3 Mill Property Tax $11M+•Residential annual increase of $64.35
•Commercial annual increase of $261.00
4 Mill Property Tax $14.5M+•Residential annual increase of $85.80
•Commercial annual increase of $348.00
5 Mill Property Tax $18M+•Residential annual increase of $107.25
•Commercial annual increase of $435.00
Excise Tax 5% Tax on Specific Goods $5M •$5 per $100 purchase in Fort Collins
•Visitors also impacted
Capital
Expansion Fee Reconfigure/Broaden Application $2M •Net neutral for residential and commercial
permit fees
Page 72
Item 2.
19Scenario A: $25M+
Category Funding Mechanism Annual Revenue
Estimate Stakeholder Impact
Sales Tax New ¼-Cent Sales Tax $9M+•$30.67 average per year for a resident
•Sales tax on food would remain at 2.25%
Property Tax 3 Mill Property Tax $11M+•Residential annual increase of $64.35
•Commercial annual increase of $261.00
Excise Tax 5% Tax on Retail Marijuana $5M •$5 per $100 purchase in Fort Collins
•Visitors also impacted
Total Sales Tax 4.1%$25M+•$156 net annual increase per household* +
impact of excise tax
*Assumes a household of three
IMPACT FOR A HOUSEHOLD OF THREE:
•0.32%increase at 50% Area Median Income
•0.20%increase at 80% Area Median Income
Page 73
Item 2.
20Scenario B: $23M+
Category Funding Mechanism Annual Revenue
Estimate Stakeholder Impact
Property Tax 5 Mill Property Tax $18M+•Residential annual increase of $107.25
•Commercial annual increase of $435.00
Excise Tax 5% Tax on Retail Marijuana $5M •$5 per $100 purchase in Fort Collins
•Visitors also impacted
Total Sales Tax 3.85%$23M+•$107.25 net annual increase per household
+ impact of excise tax
IMPACT FOR A HOUSEHOLD OF THREE:
•0.22% increase at 50% Area Median Income
•0.14% increase at 80% Area Median Income
Page 74
Item 2.
21Excise Tax on Specific Goods
*Retail only
City Marijuana
Excise Tax
Pueblo 8%
Berthoud 7%
Grand Junction 6%
Denver 5.5%
Aurora 5%
Boulder 5%
Breckenridge 5%
Broomfield 5%
Carbondale 5%
Commerce City 5%
DeBeque 5%
Dillon 5%
Eagle 5%
Florence 5%
Frisco 5%
Glenwood
Springs 5%
Gunnison 5%
Lyons 5%
Palisade 5%
Thornton 5%
Walsenburg 5%
Northglenn 4%
Silverthorne 3%
Others
•Natural gas
•Staff research priority for early 2023
•Sugar sweetened beverages
•Beverages in plastic containers
•Alcohol
•5% Alcohol estimate of $5M+
Marijuana Excise Tax:
•Precedent across Colorado at approx. 5%
•5% estimate of $5M* annually for the City
•Current revenue at 3.85% reflected below:
Type 2020 2021
Retail $3.6M $3.9M
Medical $172k $192k
Page 75
Item 2.
Election Timeline Options:
22Election Timeline Options
2023 2024 2025 2026
November November NovemberNovember
•Street Maintenance and Community Capital Taxes expire Dec. 31, 2025.
•November 2024 and April 2025 would have been traditional elections to target for renewal.
ANTICIPATED NEXT STEPS:
•Based on Council direction: Continue to work with Council Finance Committee to
establish preferred funding mechanisms and election timelines
Page 76
Item 2.
23City Council Direction
QUESTIONS:
What questions
does Council have
on these efforts?
Does City Council
support continued
efforts on funding for
all four priority areas?
Is there any area
Council would prioritize
if there is a phased
approach?
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Item 2.
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Item 2.