HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 04/25/2023 - WORK SESSIONNOTICE:
Work Sessions of the City Council are held on the 2nd and 4th Tuesdays of each month in
the Colorado Room of the 222 Building. Meetings are conducted in a hybrid format, however
there is no public participation permitted in a work session.
City Council members may participate in this meeting via electronic means pursuant to
their adopted policies and protocol.
Fort Collins City Council
Work Session Agenda
6:00 p.m. Tuesday, April 25, 2023
Colorado River Community Room, 222 Laporte Ave, Fort Collins, CO 80521
How to view this Meeting::
Meetings are open to the public
and can be attended in person
by anyone.
Meetings are televised live
on Channels 14 & 881 on cable
television.
Meetings are livestreamed on
the City's website, fcgov.com/fctv
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. 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.
Meeting agendas, minutes, and archived videos are available on the City's meeting portal at
https://fortcollins-co.municodemeetings.com/
While work sessions do not include public comment,
mail comments about any item on the agenda to
cityleaders@fcgov.com
City of Fort Collins Page 1 of 1
City Council
Work Session Agenda
April 25, 2023 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. Community Report with CSU President, Amy Parsons.
President Parsons will provide highlights and an update on CSU to Council.
2. Council Priorities Update.
The purpose of this item is to provide Council a 2-year mark update regarding Council Priorities
and other major initiatives. Goals are to confirm key milestones, review items that may need
additional action, and highlight upcoming focus areas.
3. Sustainable Funding Update.
The purpose of this item is to seek Council direction on timing and revenue options to consider for
referral to the November 2023 ballot.
Staff is also providing additional funding mechanism information as background.
Also of note, staff is currently focusing on a November 2024 election to bring forward the Street
Maintenance renewal and the Community Capital Renewal.
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.
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 1
April 25, 2023
WORK SESSION AGENDA
ITEM SUMMARY
City Council
PRESENTER
Amy Parsons, Colorado State University President
SUBJECT FOR DISCUSSION
Community Report with CSU President, Amy Parsons.
EXECUTIVE SUMMARY
President Parsons will provide highlights and an update on CSU to Council.
ATTACHMENTS
1. Colorado State University Presentation
Page 2
Item 1.
City Council Update
Colorado State University
April 25, 2023
Page 3
Item 1.
A few CSU Highlights
•CSU earned its fourth consecutive platinum rating in Sustainability
•Research expenditures continuing to climb, $457M in FY 2022
•85% of CSU graduates find employment or continue their education within
6 months of graduation
•80% of CSU students complete their degree in 4.5 years or less
•Top Online MBA in Colorado for 6 th year in a row
•CSU named top producer of prestigious Fulbright U.S. Scholars
Page 4
Item 1.
Stay up -to-date with
CSU’s SOURCE:
Page 5
Item 1.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 4
April 25, 2023
WORK SESSION AGENDA
ITEM SUMMARY
City Council
STAFF
Ginny Sawyer, Policy and Project Manager
SUBJECT FOR DISCUSSION
Council Priorities Update.
EXECUTIVE SUMMARY
The purpose of this item is to provide Council a 2-year mark update regarding Council Priorities and other major
initiatives. Goals are to confirm key milestones, review items that may need additional action, and highlight upcoming
focus areas.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. What questions or feedback does Council have on Priority progress?
2. What, if any, recommended adjustments do Council have for focus areas through the remainder of the year?
BACKGROUND / DISCUSSION
Every two years, following a Council election, the newly seated Council participates in a planning retreat to identify
priorities and confirm strategic direction. This process typically involves Councilmembers reflecting what they have
heard throughout their campaigns followed by general agreement on items to move forward. Typically, 3 buckets
emerge out of this work: Council Priorities, Existing Work, and items that would be New Initiatives.
Council identified 31 items as priorities for the 2021-2023 term and adopted these by Resolution in July 2021. Since
October 2021, bi-monthly updates have been provided and posted at https://www.fcgov.com/council/.
These reports represent efforts to provide transparency, efficiency in tracking, and accountability for a chieving
progress on the Priorities.
The following update provides status on not only the Priorities but also on items that were identified as Existing Work
and New Initiatives.
Page 6
Item 2.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 4
PRIORITIES
Complete/Substantially Complete
COUNCIL PRIORITY STATUS
Juvenile Diversion Program up and running with a 90% successful completion rate.
More Stringent Penalties for
Animal Cruelty and Neglect
New position statement added to the Legislative Policy Agenda: “Supports
efforts to ensure the health and safety of domestic animals and appropriate
penalties for cases of abuse, cruelty, and neglect.”
Improved Traffic Compliance Ongoing enforcement efforts in place.
Look into Changing the April
Election to November with
School Board Years to Have All
Local Elections at Once
Completed.
Advance Gender Equity in City
Sales Tax Code
Completed.
Adopt Graywater Statute to Allow
Graywater Systems in New
Buildings
Completed.
Effective Soil Amendment
Policies and Compliance
First Reading of Code Amendments scheduled for September 19, 2023.
Xeriscape-Increase Rebates and
Education, Less Green Lawns
with New Development
Programs continue. Code changes coming September 19, 2023.
Create a Targeted, Specific Plan
for Community Recovery
Complete. Plan developed and adopted; implementation woven into
2023-2024 BFO (Budgeting for Outcomes).
Tree Planting Subsidy Complete.
Improve Tree Policies Evaluation work complete, anticipate bringing code changes in Q3
2023.
Reduce Plastic Pollution Implementation of local disposable bag ordinance complete; education will
be ongoing. Implementation of statewide act underway in 2023 (expansion
to more stores) and in 2024 (banning plastic bags and Styrofoam).
Microplastics review complete.
Raise the Minimum Wage First reading of ordinance scheduled for May 16, 2023.
Districted System for Garbage,
Recycling, and Compost
Ordinance adopted and contract complete. Implementation efforts
underway. Contract begins in the fall of 2024.
Help Bird Species Recover Bird City designation achieved and will be maintained.
Page 7
Item 2.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 4
COUNCIL PRIORITY STATUS
Attract and Retain Competitive
and Diverse Talent to Meet the
Needs of the Community:
Provide Childcare Options for
City Employees
Ongoing efforts and partners identified. Evaluations, funding efforts,
and policy implementation will continue.
Implementation of 15-minute
Community Concept
Work completed and presented to Council. Implementations on-going.
Significant Progress by Term End (Implementation and Impacts Past Term)
COUNCIL PRIORITY STATUS
Advance Transit Initiatives that
Remove Barriers Identified Milestones completed. Funding and build efforts will continue.
Accelerate Composting (curbside
and business)
Residential waste contract offers opportunity for a 78-130% increase in yard
waste composting. Regional wasteshed partnership may deliver additional
composting opportunities, and if not, staff will seek other partnership
opportunities.
Enhanced Recycling Education Barriers and improvements identified. Implementation ongoing.
Explore Climate Emergency
Messaging and Action
Climate emergency language embedded into materials and outreach.
Interim greenhouse goals adopted for 2026. Development and
implementation of Next Moves plan continues.
Access Funding for Parks Possible ballot initiative in November 2023.
Develop a Circular Economy Plan Work underway and council work sessions scheduled in March and August.
Advance Regionalism-
Collaboration Regionally While
Maintaining the Unique Character
of Fort Collins
Efforts identified and tracking mechanism created.
Improved Air Quality
Grant and programming efforts achieved. Oil and Gas code efforts partially
complete. Regional and State collaborations continue. New workstream
identified to consider additional standards for existing oil and gas
operations; work session to be scheduled.
Improved and Accelerated
Stream Restoration
Projects underway. Stormwater Capital Plan to include accelerated rehab
program.
Protect and Enhance Instream
River Flows
Numerous initiatives underway including regional efforts, 1041 work, and
programs funded through budgeting process.
Make Real Progress on Road to
Zero Waste
100% compliance with multi-family and commercial properties on the
community recycling ordinance (expansion of recycling access). Additional
compliance staff hired. Pro-active enforcement in place.
Page 8
Item 2.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 4 of 4
COUNCIL PRIORITY STATUS
Affordable, Quality, and
Accessible Childcare
Infrastructure
City providing licensed childcare services to families, including sliding scale
spots, through the Recreation Department. Continue to work with partners
and update Council via memo.
Partner with PSD for Workforce
Development Staff and process in place to continue to partner and leverage opportunities.
Homelessness Initiatives Identified milestones completed. Multiple efforts continue.
In addition to progress made on the identified Priorities, work was also completed in the Existing Work and New
Initiative categories. Highlights include:
Addition of Juneteenth and Indigenous People’s Day holidays starting in 2022.
Fare Free bus service and evaluation.
Addition of Mental Health responders in Police Services.
Ranked Choice voting referred to ballot (passed).
Budget offer for Land Acknowledgement development.
Continued efforts towards Safe Routes programming, including adoption of the Active Modes Plan .
1041 efforts.
Continued Painted Streets program.
Small cell code adoption.
Land Use code work including conversations on Additional Dwelling Units, Occupancy, and rental
registration/licensing.
Oil & Gas code and policy work to address impacts.
Continued work and programming to protect and enhance mobile home park communities.
The remainder of 2023 will see heavy focus on land use efforts, sustainable funding options, ballot items for
November, and soil amendment work for ordinance consideration in September.
NEXT STEPS
Continue work to advance Priorities and other initiatives. An End of Term report will also be scheduled before the
end of the year.
ATTACHMENTS
1. Resolution 2021-077 Adopting Council Priorities
2. Priority Update Report, February 2023
3. Presentation
Page 9
Item 2.
Milestone Data Report
2021-23 Council Priorities
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
0. Key to Council Priorities Dashboard
1. Gray = Not Started 9/1/21 12/31/23 0 %
2. Green = On Target 9/1/21 12/31/23 0 %
3. Yellow = Caution 9/1/21 12/31/23 0 %
4. Red = Below Plan 9/1/21 12/31/23 0 %
5. Blue Star = Completed 9/1/21 12/31/23 0 %
1. More stringent penalties for animal cruelty and neglect
Provide memo to Council describing current state and issues
10/1/21 12/31/21 100 % Memo "Review of Animal Cruelty Penalty Provisions" was sent to City Council on
January 14th, 2022 and resent following May check-in. Decision was made to
pursue this Priority through the Legislative Policy Agenda. Previously scheduled
work session has been removed from calendar.
Council follow up questions/possible work session or other dialogue
1/1/22 10/31/22 0 % This Initiative is being marked complete as it will be pursued through the
Legislative Agenda process.
Public outreach 7/1/22 9/30/22 0 % This Initiative is being marked complete as it will be pursued through the
Legislative Agenda process.
Consideration of Code/policy/program changes
10/1/22 12/31/22 0 % This Initiative is being marked complete as it will be pursued through the
Legislative Agenda process.
Draft ordinance/policy/program changes
10/25/22 12/31/22 0 % This Initiative is being marked complete as it will be pursued through the
Legislative Agenda process.
2. Juvenile diversion Reallocate dollars to Launch program
1/1/22 3/30/22 100 % The Restorative Traffic Circle has been well received by participants and
community panel members. The program has a 90% successful completion rate.
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page1 of 18
Page 10
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
3. Advance transit initiatives that remove barriers
3a. Funding & Fare Study begins
10/1/21 12/31/21 95 %
On budget and schedule as planned, concluding in Q1 2023
3a. W. Eliz. BRT prelim design complete
10/1/21 12/31/21 100 % Concluded.
3a. North College Transit Oriented Development Plan complete
4/1/22 6/30/22 95 %
On budget and schedule as planned.
3b. Transfort & PSD Coordination Study begins
4/1/22 6/30/22 5 %
On budget and schedule as planned, contract signed for work to begin in Q2.
3a. Funding & Fare Study complete
10/1/22 12/31/22 95 %
On budget and schedule as planned, concluding in Q1 2023
3a. North Transit Facility Design and Study complete
10/1/22 12/31/22 5 %
Seeking funding for land acquisition & identifying potential sites. Design will follow.
3b. Transfort & PSD Coordination Study complete
1/1/23 3/31/23 5 %
On budget and schedule as planned, contract signed for work to begin in Q2.
4. Improved traffic compliance
Determine high-risk locations and formulate strategy
10/1/21 12/31/21 100 % The following intersections have been identified for increased enforcement:
College & Trilby
Shields & Horsetooth
College & Drake
Boardwalk & Harmony
Shields & Prospect
College & Mulberry
Lemay & Vine
Shields & Plum
Lemay & Drake
Timberline & Carpenter
Traffic Operations will kick off the Vision Zero action plan work in Q3. Council
Work Session scheduled on December 13.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page2 of 18
Page 11
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
Deploy strategy 1/1/22 6/30/22 95 % Fort Collins Police Services is moving forward to install red light cameras for the
following intersections. NB and SB Harmony and Shields. EB and NB Drake and
Lemay. FCPS is waiting for the notice to proceed with those approaches and the
two new photo radar vehicles from VERRA mobility. Once we get the notice to
proceed signed the process will continue to move forward.
The traffic calming BFO was approved by City Council in September. A job
description for a Professional Staff member to administer and monitor the
speed van and red-light camera contract with Verra Mobility was drafted and is
currently in the HR process.
5. Advance Regionalism - collaboration regionally while maintaining the unique character of Fort Collins
Create matrix of collaborative groups' meetings/purpose/goals
10/1/21 12/31/21 100 % Following May work session, regionalism focus areas have been narrowed and
will be highlighted in update cover memo.
6. Look into changing the April election to November with School Board years to have all local elections at once
Develop background information
10/1/21 12/31/21 0 %
Organize Election Code Committee
10/1/21 12/31/21 100 % Meetings started August , 2021, and the Committee meets every third Monday
monthly from 12:00-1:30.
Discussion begins.
Completion of tasks to allow
voter consideration
5/1/22 11/11/22 0 %
7. Advance gender equity in City Sales Tax Code
October adoption of Code Changes
9/1/21 12/31/21 100 % Ordinance passed on 2nd reading - October 19th
8. Attract and retain
competitive and diverse talent to meet the
needs of the community: provide child care options
for City employees.
EPIC to submit final
report with recommendations by the end of
December.
10/1/21 12/31/21 100 % EPIC/Human Resources to present to ELT in May/June with specific
recommendations.
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page3 of 18
Page 12
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
Consideration of recommendations with funding requirements. Deploy strategies where funding not a factor.
1/1/22 12/31/22 100 % Work to ensure the right strategies to attract and retain caregivers as talent in
our City will be an ongoing journey. To keep the momentum going into 2023, the
following is on our plans:
• We met with Christina Taylor, CEO of the Early Childhood Council of Larimer
County, to see about optimizing our partnership with them, particularly as
they have a database of providers for parents to find care. We have begun
communications of this invaluable resource and welcome further dialogue
with ECCLC in 2023.
• We have decided to keep the employee co-pay for emergency care through
Family Care Connection the same, even though our costs are increasing in
2023.
• Katherine Bailey, the chair of our employee resource group, Caregivers’
Alliance, will be a featured speaker at our spring 2023 All Managers Meeting
as we continue to promote ways to support caregivers at work.
9. Help bird species recover
Create inter-departmental team
1/1/22 3/30/22 100 % The team is established and meeting regularly. The Bird City USA application has
been submitted. The team is led by the Natural Areas Department and includes
the Gardens on Spring Creek, City of Fort Collins Parks Department, Audubon
Fort Collins, Audubon Rockies, and Bird Conservancy of the Rockies. All is on
track.
Develop education
program for Migratory Bird Day
1/1/22 3/30/22 100 % World Migratory Bird Day events were held on Saturday, May 14 in collaboration
with Bird Conservancy of the Rockies, Northern Colorado Wildlife Center, the
City’s night sky program, Fort Collins Audubon, and City of Fort Collins Utilities
and Natural Areas Departments. Activities included bird walks and migratory
bird banding, bird box building/decorating, and a night hike with information
about night sky-friendly lighting. One hundred and fifty seven community
members participated. This is complete.
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page4 of 18
Page 13
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
Resolution for World Migratory Bird Day
4/1/22 6/30/22 100 % The Bird City designation is a prestigious award given by Environment for the
Americas, a Boulder-based non-profit organization. The application consists of
64 questions/criteria, across six categories: Habitat Creation, Protection and
Monitoring, Community Forest or Grassland Management, Limiting or Removing
Threats to Birds, Public Education and Inclusion, Climate, Energy, and
Sustainability, and World Migratory Bird Day.
Application was submitted and a site visit with Environment for the Americas to
Fossil Creek Reservoir Natural Area was held August 19 hosted by staff from City
of Fort Collins Natural Areas and Audubon Rockies. The official designation letter
is expected in September.
Presentation of the Bird City award is scheduled as a Community Report at the
October 18 City Council meeting.
A memo outlining current efforts to help bird species recover and opportunities
for future work was submitted to City Council in their August 2 packet.
Bird City Award presented to City Council
10/1/22 10/31/22 100 % Bird City Award presented at October 18, 2022 Council Meeting.
Staff will continue to work with partner agencies to consider and address
awareness activities regarding outdoor cats.
10. Accelerate
composting - (Curbside and business)
Work toward compost
facility via Regional Wasteshed Project
10/1/21 4/30/23 20 % Infrastructure: Staff and Councilmembers Gutowsky and Ohlson continuing to
engage in Regional Wasteshed Coalition. Larimer County is reviewing responses
to their Request for Proposals seeking private partners to construct facilities
including the compost facility. More information about potential compost facility
timing may be clearer after the County's Request for Proposals (RFP) process
concludes, which is likely to occur in Q1 2023 but is further behind than
anticipated (hence the yellow status). A more detailed memo was provided in
January 2023.
Policy: The contracted residential solid waste collection program presents an
opportunity for a 78% - 130% increase in residential curbside yard trimmings
composted and is a more affordable way to add this compost service for
residents than the current system. City Council's First Reading of the contracted
hauling program will be on February 21, 2023.
Staff shared a roadmap for policy and infrastructure for compost at the Our
Climate Future topic at the October 11, 2022 Work Session. Feedback from that
Work Session will be incorporated in future work planning and Council
onboarding.
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page5 of 18
Page 14
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
11. Adopt graywater statute to allow graywater systems in new buildings
November Council Work Session
10/1/21 12/31/21 100 % • Council Work Session completed on Nov. 21, 2021, resulting in:
• Direction to staff to create a graywater ordinance that aligned with
Colorado law and water right limitations.
Ordinance Development 1/1/22 3/30/22 100 %
Stakeholder Outreach 4/1/22 6/30/22 100 %
Present Ordinance to Council
7/1/22 9/30/22 100 %
Implement Ordinance and revised building code
10/1/22 12/31/22 100 % Staff are completed final tasks to prepare for implementation on effective date
of ordinance - Nov. 1, 2022. These items, such as website updates, training,
design criteria document, and GIS map showing the graywater boundary are
complete. As of Jan. 2023, all water and wastewater providers in the City Limits
have agreed to allow graywater in thier service area.
12. Districted system for garbage, recycling and compost
Project scope and plan 10/1/21 12/31/21 100 % Memo of project outline and timing sent to Council on 12/28/21.
Research, modeling, metrics
1/1/22 3/30/22 100 % Complete
Hauler and resident engagement
4/1/22 9/30/22 100 % Staff has engaged extensively with haulers and the community throughout this
project. Active engagement was on pause during the competitive purchasing
process (Q3& Q4 2022) and restarted at the end of January 2023 when the
proposed contract was negotiated. The project website includes information
about the proposed program including an extensive FAQ and the proposed
contract. Engagement before First Reading (on February 21) includes two
community information sessions, social media engagement, meetings with
Boards and Commissions, and more.
Council review of engagement findings and RFP approach
10/1/22 12/31/22 100 % Complete
Determine next steps with Council
1/1/23 3/30/23 25 % First Reading of the proposed contracted residential solid waste collection
program is scheduled for February 21, 2023.
13. Explore climate emergency messaging and action
Begin update of OCF tactical plan
1/1/22 3/30/22 100 % Complete: Workplan created for '23-'24 Tactical / Next Moves update
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page6 of 18
Page 15
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
Continue update OCF tactical plan
4/1/22 9/30/22 100 % Complete: Next Moves Workplan being developed by staff and community
leaders that lays out strategies to be implemented over the next two years
supporting the Council OCF Action Roadmap and OCF outcomes (Big Moves)
overall
Test messaging with community; evaluate Climate goals; update Council
4/1/22 9/30/22 100 % Council received PRPA (Platte River Power Authority) overview of IRP to
reach ~90% RE by 2030; Council confirmed OCF Council Action Road Map
to reach 80% reduction in greenhouse gases below 2005 levels by 2030;
Council adopted an interim greenhouse gas reduction goal of 50% below
2005 levels by 2026.
Complete update of OCF tactical plan; recommendations for goals and messaging to Council
10/1/22 12/31/22 75 % Next Moves Plan for 2023-24 on track to be completed in Q1 of 2023; Council
updated GHG goals in Q4 of 2022
Implement recommendations
1/1/23 6/30/23 10 % Staff working to advance Big Move priorities within Council-confirmed OCF Road
Map (shared during Q4 2022 Work Session); OCF update memo/staff report to
Council in Q2
14. Effective soil amendment policies and compliance (water usage)
Research best practices and coordinate internally
10/1/21 10/1/22 100 % Deliverables:
• Third-party best practice report
• Initial set of proposals, developed with staff and external stakeholders
Initiate and complete outreach
6/17/22 6/1/23 66 % Two public engagement campaigns are planned for this project.
Following Council Work Session on Jan. 10, staff have drafted a revised set of
proposals for Round 2 engagement.
Current efforts:
• Promote, conduct Round 2 engagement events to further develop details
and considerations of proposed standards
Draft ordinance for consideration of adoption
7/1/22 9/19/23 50 % Current efforts:
• Ongoing rounds of revision in preparation of draft ordinance for first
reading on Sept. 19, 2023.
• Code audit to identify conflicts, misalignments of proposed standards
The original timeline was extended to accomodate a second round of
engagement.
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page7 of 18
Page 16
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
15. Protect and Enhance Instream River Flows
Discussions with Northern Water, 1041 Regulatory Development, & Regional Water Discussion
10/1/21 12/31/21 25 % • Utility and City staff continue to engage Northern Water on strategies to
collaborate as both entities plan for the challenges of the water future.
Discussions include leadership roles for Northern Colorado Water Regional
initiatives. Conversations also continue on working with Northern in
response to the NISP Project receiving the Record of Decision (ROD) and
opportunities the City has to be at the table as they progress with that
project.
• Utility staff provided many comments to Planning staff to help in the
development of 1041 version 3. Jason Graham met with Councilmember
Peel to answer questions and provided a memo as part of the read before
packet. The Water Utility will continue to be engaged and support both the
Planning Department's 1041 directive and represent the needs and concerns
of the Water Utility.
• Water Utility and City leadership continues to engage at the Northern
Colorado regional level through participation is Strat-Op workshops. The
workshops are intended to build alignment and partnership between all
water services providers in the South Platte River Basin.
Begin implementation of BFO Offers accepted
1/1/22 3/30/22 10 % This initiative is on-track given the early date in 2023. BFO offers that are in the
works to support this initiative include:
• Water Efficiency Plan Update
• Xeriscape Incentive Program for HOAs
• Environmental Learning Center Flow Restoration - (Lake Canal)
1041 Regulatory Development and Regional Water Discussion
4/1/22 9/30/22 90 % The Water Utility has been engaged with internal and external stakeholders to
support and fine tune the proposed 1041 regulations. Staff has met with other
Water Service providers as part of the Planning Departments outreach and
provided input at every opportunity. Leadership has provided comments during
work sessions and has provided read before memos to council to help inform
them of the potential impacts 1041 regulations may have on Water Utility
projects.
16. Reduce Plastic Pollution
Distribution of free reusable bags
10/1/21 12/31/21 100 %
Initial round of bag distribution was completed in December 2021. Staff
distributed an additional 5,500 free reusable bags in Q2 2022 to the general
public, low-to-moderate income households, and LatinX/Hispanic community
members.
Stakeholder engagement 10/1/21 12/31/21 100 %
Stakeholder engagement has taken place from 2021 to today and will continue
through the end of 2022 through the stages of preparing for and rolling out the
Disposable Bag Ordinance. (Stakeholders include grocers, community
organizations, and community members.)
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page8 of 18
Page 17
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
Council work session 1/1/22 3/30/22 100 % Completed on 3/1/2022
Ordinance implementation and outreach
4/1/22 6/30/22 100 %
Staff conducted 18 outreach events to distribute free reusable bags as well as
multiple grocers check-ins in Q2. Two community groups servicing historically
underrepresented community members distributed free reusable bags in Q2.
Additional Community engagement
7/1/22 12/31/22 100 % Engaged the community and businesses on the Plastic Pollution Reduction Act
that was effective on January 1, 2023.
Utilized postcards, newsletters, social media, our websites, Transfort Ads, and
interviews with news outlets.
Created tools to support businesses including timelines, checklists, a Business
Confirmation Form, template social media content, and printable signage
Engagement planning underway for 2024 Plastic Pollution Reduction Act changes
( 1. styrofoam ban on retail food establishments and 2. plastic bag ban on
retailers)
Possible Council work session to review policy options
1/1/23 3/30/23 0 % Given Council direction on May 10, 2022 to focus implementation of local and
state single-use plastics policies are implemented, staff does not recommend an
additional Work Session at this time
Review current microplastics reduction technology with consultant support
6/1/23 9/1/23 100 % Complete
17. Improved Air Quality Council work session on oil and gas regulations
10/1/21 12/31/21 100 % Complete
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page9 of 18
Page 18
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
EPA grant 10/1/21 12/31/21 70 % • The EPA awarded the Air Quality team a two-year environmental justice grant
that is focused on how best to align and integrate our indoor air quality program
with energy efficiency programs.
• Conducted the Healthy Homes training in both English and Spanish with
language justice
• 13 new Healthy Homes Educators completed the training
• Continuing to explore various partnerships with HVAC servicing companies and
others to provide resources
• 5 Neighborhood connectors have been identified to support promoting the
Healthy Homes program in the Neighborhoods assessments will be provided in
Spanish
Consider oil and gas code revisions
1/1/22 3/30/22 75 % •Passed first reading on December 20, 2022. Scheduled for second reading on
April 4, 2023.
•Panel discussion with City, County and State regarding implementation of
existing regulations TBA, tentatively scheduled for March 9, 2023.
Create interagency task force
1/1/22 3/30/22 25 % • County and City staff were notified of a $500K EPA grant award which will
support the task force. Award allocation has been delayed, so continues to be
deferred to align and use new grant resources. Anticipate award in place by Q2
2023.
Lawn and garden equipment rebate
program
4/1/22 9/30/22 0 % • Initial convesations have begun with the Regional Air Quality Council (RAQC)
regarding implementation of 2023 rebates. Program anticipated to begin in May
2023 (this program runs every year, and % complete was reset to 0% for 2023)
State
considers updated State Implementation Plan (SIP)
re: ozone non-attainment
10/1/22 12/31/22 75 % • Air Quality Control Commission approved portions of the State Implementation
Plan (SIP) in December 2022. Additonal planning efforts are underway to update
SIP sections with plans for ozone attainment, with rulemakings expected in Fall
2023
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page10 of 18
Page 19
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
18. Make real progress on the road to Zero Waste (with focus on multi-family and commercial recycling and construction and demolition recycling)
Multifamily and commercial Community Recycling Ordinance compliance sweep.
10/1/21 1/1/22 100 % The compliance sweep is complete. Staff is working with the hauler and
the national accounts team of the one remaining non-compliant business.
If there is not a concrete timeline to resolution within the next week staff
will issue a citation.
Complete. Successfully worked with haulers and businesses to add recyling
service. Achieved 100% compliance with multi-family housing
developments and commercial businesses.
Hire C&D staff (if funded), or continue C&D recycling
complaint response and compliance inspections as
time allows.
1/1/22 3/1/22 100 % Complete
Memo to
Council on compliance sweep.
1/1/22 3/1/22 100 % Update memo sent to Council on 4/7/22.
C&D staff (if funded) works to increase
proactive C&D recycling compliance.
3/1/22 4/30/23 80 % Staff member is distributing educational materials, conducting visits to C&D
sites, is implementing identified program improvements, and has begun issuing
warnings to sites out of compliance.
C&D staff (if funded) engages in
C&D market development projects at state &
regional level.
6/1/22 4/30/23 100 % C&D staff member is participating in state-level market development work
through Recycle Colorado C&D Council.
Assisting with policy brief to be distributed to state legislators. Assisting
with policy toolkit for local governments.
C&D staff (if
funded) provide update and impact memo
to Council on C&D recycling.
1/1/23 3/31/23 15 % Drafting memo to Council to be completed no later than 03/31/2023
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page11 of 18
Page 20
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
Compile research on deconstruction ordinance and determine next steps if applicable.
4/1/23 6/30/23 0 % Work to begin in Q2 2023
Share outcome of deconstruction ordinance and recommendations via memo to Council.
4/1/23 6/30/23 0 % Work to begin in Q2 2023
19. Xeriscape – Increase rebates and education, less green lawns with new development
Increase Xeriscape rebates and incentives
9/1/21 10/31/23 66 % The 2022 Xeriscape Incentive Program year ended with a record 94 residential
projects and 6 commercial projects completed.
The Xeriscape Incentive Program (XIP) application for commercial and
residential customers launched in September.
Current efforts:
• Appropriating grant funds for rebates
• Discussions with ELCO and FCLWD to explore opportunities to expand
xeriscape rebates to customers in those water districts
• Exploring options for how to use funding from State Turf Replacement
Program (CO House Bill 22-1151)
• Engaging with managers to apply for funding for turf replacement projects
on city-owned properties
Improve Xeriscape literacy and
increase education opportunities
10/1/21 10/31/23 66 % Staff continues to explore ways to educate customers about xeriscape.
Utilities has partnered with the Gardens on Spring Creek to offer subsidies for
adult education classes in 2023 that promote water conservation.
The 2023 Xeriscape Garden Party will take place in June. Over 700 people
attended the educational event in 2022.
Update Xeriscape regulations
10/1/21 5/31/23 66 % Current efforts:
• Promote, conduct Round 2 engagement events to further develop details and
considerations of proposed standards
• Ongoing rounds of revision in preparation of draft ordinance for first reading
on Sept. 19, 2023.
• Code audit to identify conflicts, misalignments of proposed standards
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page12 of 18
Page 21
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
Water Supply Requirement modification
10/1/21 12/31/21 100 % • On Oct. 5, 2021, Council adopted Ordinance No. 119, 2021 which brings
changes to Fort Collins Utilities Water Supply Requirements. These changes
will encourage efficient landscaping in new developments by linking cost to
water use (e.g., higher water use landscapes will pay more and lower water
use landscapes will pay less).
• Changes go into effect on Jan. 1 2022.
• Staff is actively finalizing the implementation plan and working with
developments that will take place in 2022.
20. Enhanced recycling education
Barriers to Recycling engagement and benchmarking
10/1/21 12/31/21 100 % Complete
Analyze engagement feedback
1/1/22 3/30/22 100 % Feedback from historically underrepresented groups compiled and analyzed.
Implement and track new education elements
4/1/22 12/31/22 60 % In the last part of 2022, staff continued implementing now standard practices
that address barriers:
- Consistently provided materials in Spanish.
- Leveraged community partners as trusted engagement partners.
- Employed more visual storytelling through educational videos.
Two communications barriers remain to be addressed through the 2023
workplan, including:
- Highlighting diverse stories of recycling leadership in the community. (All year)
- Partnering with CSU to strengthen existing recycling guideline alignment.
(Q1-Q2)
Beyond short-term approaches to removing barriers, staff will continue
integrating strategies into long-term planning efforts, such as through the
creation of a five-year plan for the TRC, and as new staff positions are filled, such
as the Recycling Partnerships and Volunteer Coordinator.
Memo to Council on engagement findings and recommendations
4/1/22 6/30/22 100 % June 2022
Memo sent to Council on May 4, 2022.
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page13 of 18
Page 22
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
Memo to Council summarizing changes made and next steps
1/1/23 3/30/23 0 % Staff will prepare a memo by the end of March describing the first year's efforts
on removing barriers to recycling and increasing equitable recycling education
and will also include plans for 2023.
21. Improved and accelerated stream (riparian) restoration
Review options for work acceleration with Council Finance
10/1/21 12/31/21 100 %
Stream (riparian) restoration Off-Cycle Budget Offer
1/1/22 12/31/22 0 % The Mail Creek off-cycle offer was not submitted.
The current Mail Creek at Two Creeks Natural Area is under construction and on-
schedule.
The Stormwater CIP will be updated to reflect an accelerated stream rehab
program.
Stream (riparian) restoration 2023-24 BFO
Offer
1/1/23 12/31/23 5 % A project charter has been developed with coordination from Natural Areas,
floodplain management, and the trails program. An RFP for design work is near
completion and should be posted in March.
Construction is planned for 2024/25.
22. Raise the minimum wage
Issue RFP and Select Consultant
10/1/21 12/31/21 100 % Completed
Complete Survey and Engagement
1/1/22 3/30/22 70 % At the November 15, 2022 Council Meeting direction was given to re-open
engagement. The interest is to connect more directly with low-wage earners and
impacted businesses.
Staff has engaged a number of partners in the community that work directly with
low wage earners, including the County Workforce Center and some non-profits.
Engagement is still on-going and will be included in the next work session on this
topic scheduled for April 11, 2023.
Present Findings to City Council
4/1/22 6/30/22 70 % On November 15, 2022, City Council voted to postpone consideration of a local
minimum wage ordinance until May of 2023. Based on feedback from Council
staff has conducted additional analysis on the potential impacts to low wage
earners and their social safety net benefits. This information as well as additional
information will be shared with Council on April 11, 2023 at a work session.
Council Consider local ordinance
7/1/22 9/30/22 50 % On November 15, 2022, City Council postponed consideration of a local
minimum wage ordinance to May 16, 2023 instructing staff to conduct additional
targeted outreach and analysis.
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page14 of 18
Page 23
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
Local minimum wage effective [Depending on Council Action]
1/1/23 3/30/23 0 % Council will reconsider a local minimum wage ordinance on May 16, 2023.
23. Develop a Circular Economy Plan (EHSP)
Issue RFP and select Consultant
1/1/22 3/30/22 100 %
Engage Community 4/1/22 9/30/22 70 % Business community engagement has been completed. Review of SWOT
(strength, weakness, opportunities and threats) Analysis is currently underway.
Circular economy business survey has been deployed.
Prepare Existing Conditions Analysis
4/1/22 6/30/22 20 % Work continues to be done in partnership with Environmental Services and our
consultants to map the existing conditions for analysis.
Present Big Moves and Strategy Update to Council
10/1/22 12/31/22 65 % 1st Council Work Session is scheduled for 3/14/2023; 2nd Work Session for 8/8/
2023.
Develop Implementation Plan
1/1/23 3/30/23 0 %
24. Partner with Poudre School District (PSD) for workforce development
On-going support of PSD for workforce development through partners, including assistance in siting the Future's Lab.
10/1/21 4/30/23 50 % Launch of NoCO Works, the regional workforce talent initiative (talent 3.0) was
released in January 2023, in partnership with PSD and other regional partners.
Apprenticeships, internships, sector partnerships are some proven models that
continue to be supported. Initiatives within the NoCO Works program (2-county
workforce initiative) include:
• Economic Inclusion
• External Barriers
• Business Resources
• Training and Development
• Talent Pipeline
• Work-Based Learning
Continue to explore opportunities and support PSD in the application of the
State's Opportunity Now grant application.
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page15 of 18
Page 24
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
25. Affordable, Quality and Accessible Childcare Infrastructure
Periodic memo updates to Council as appropriate and necessary
4/1/22 6/30/22 100 % Memo submitted to Council in May 2022 detailing activity, status and progress
occurring within the community and the City organization re: childcare
Periodic memo updates to Council as appropriate and necessary
10/1/22 12/31/22 100 % Memo submitted to Council in November 2022 detailing activity, status and
progress occurring within the community and the City organization re: childcare
26. Create a targeted, specific plan for community recovery
Draft Recovery Plan: Work session (Oct 26), and Council adoption (Dec 7)
10/1/21 12/31/21 100 % Completed and Council adopted.
Implementation 1/1/22 12/31/22 100 % Q4:
All $28.1M of federal ARPA funds awarded to the City of Fort Collins have been
appropriated to recovery programs, with 60+ programs expected to run and/or
launch in 2023.
27. Access funding for parks (maintenance and operations, refresh, and new parks)
Council Finance Committee
10/1/21 12/31/21 75 % Staff has met with the CFC 6 times to discuss and explore potential funding
options.
Meetings will continue on 2023 with the most recent meeting on February 6th.
Convene internal team. 1/1/22 3/30/22 100 % • The team has been formed and is made up with representatives of Budget,
Finance, CMO, City Gives, Parks, Park Planning and Community Services.
• Materials were prepared for the Jan, Mar, June and Sept CFC meetings.
• Materials were prepared for the June and Dec. Work Sessions.
Council work session. 1/1/22 3/30/22 25 % Council work sessions occured in April and December 2022.
Staff will schedule additional work sessions in 2023.
Develop & implement plan following direction clarification
4/1/22 6/30/22 10 % • A combination of resource options was presented to the CFC at the February
meeting.
• Staff recommendation was to seperate the P&R Infrastructure Program
funding gap from the other three priority areas.
• Feedback from Council was to keep the four priorities together and bring
solutions that address them as a package.
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page16 of 18
Page 25
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
28. Improve tree policies Complete evaluation of current pertinent code
10/1/21 12/31/22 100 % • Staff has evaluated current pertinant code and brought code update themes
to the January 24, 2023 council work session.
Present potential code updates at Council Work Session
12/1/22 3/31/23 100 % • Staff brought proposed tree-related land use code updates to the January
24, 2023 Council Work Session.
• Staff will continue internal and external stakeholder engagement to draft
new code and are planning to bring code changes forward in Q3 2023 for
adoption.
• In conjuction with other Land Use Code changes related to LUC
3.2.1 Landscape Standards (Xeriscape, soils, irrigation and trees).
Draft code updates 1/1/23 10/31/23 0 %
29. Tree planting subsidy
Implement offer and order trees if funded
1/1/22 3/30/22 100 % Offer was funded and 1000 trees have been ordered through Fort Collins
Wholesale Nursery for a September 2022 tree sale. Staff has begun planning on
how to prioritize underserved areas of the community and create better access
to all, to increase canopy equity through this program.
100% of trees sold to residents for planting
7/1/22 9/30/22 100 % The 2022 Community Canopy Program was a success in that all 1000 trees were
sold and picked up to be planted on private property within the GMA.
30. Implementation of 15-minute community concept
Develop a set of needs/strategies-funding dependent
4/1/22 12/31/22 100 %
Council Work Session 4/20/22 10/25/22 0 %
Create draft plan 7/1/22 9/30/22 0 %
Finalize plan for approval 10/1/22 12/31/22 100 % This effort has been completed. Staff presented a draft analysis to Council in
October, and has since then incorporated their feedback. Then final report has
been shared back to Council via a memo. The findings of the analysis will be
used to inform efforts throughout the City.
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page17 of 18
Page 26
Item 2.
Initiatives Milestones Milestone Start
Date
Milestone End
Date
Milestone Percent
Complete
Milestone Analysis
31. Homelessness Initiatives
Shelter "inform" campaign
11/1/21 12/31/21 100 % • Conducted Homelessness Awareness Month campaign in November via social
media.
• Collaborated with six partner agencies to share posts throughout the month.
• Proclamation at City Council on November 16 had over 50 representatives
from partner agencies!
• Staff spoke with the Coloradoan and KCSU-TV about current conditions and
future 24/7 shelter.
Community Engagement for future 24/7 shelter-funding dependent
1/1/22 3/30/22 100 % In preparation for their future 24/7 shelter facility, Fort Collins Rescue Mission
conducted engagement and information-finding by:
• Holding trauma-informed design interviews with diverse stakeholders
• Completing a geotechnical survey and report
• Completing a conceptual review
• Conducting a traffic study
This information has helped informed next step, which include a neighborhood
meeting and development review process, and ongoing refinement of shelter
services and design.
Outreach Fort Collins midtown planning.
1/1/22 3/30/22 100 % Outreach Fort Collins has completed their planning for the midtown expansion
and will officially begin serving this area on September 6.
Implementation of OFC midtown expansion.
7/1/22 9/30/22 100 % Outreach Fort Collins officially begin serving midtown Fort Collins on September
6, 2022. They are fully staffed and, after conducting much outreach to midtown
businesses and residents, have set their service area boundaries as the entire
College corridor from Mulberry to Trilby, and a couple blocks east and west.
City of Fort Collins, CO Feb-23 Report Generated 2/22/23 @ 3:25 PM, Page18 of 18
Page 27
Item 2.
COPYPage 28
Item 2.
1
CITY COUNCIL PRIORITIES
2021-2023
Strategic
Outcome
Priority Outcome Statement
Safe Community More stringent penalties for
animal cruelty and neglect
Evaluate existing penalties and policies to
ensure alignment with Council, then if needed
explore possible options with Legislative
Review Committee to influence state law, or
pursue policy changes within the City’s
purview.
Juvenile diversion Develop proposal for a pilot juvenile diversion
program based on evidence-based practices
to provide educational and restorative age-
appropriate interventions targeting top two or
three behaviors.
Transportation and
Mobility
Advance transit initiatives that
remove barriers
2021: Complete funding and fare study to
begin by the end of 2021 to assess cost
benefit analysis of fare collection and
alternatives. This study will inform future
action such as ballot initiatives.
2022 BFO Offer submitted with a focus on
collaboration with PSD.
2021: Complete Preliminary Design on W.
Elizabeth Bus Rapid Transit project and
continue to explore funding sources for
final design and construction.
2021: Complete North Transit Facility
Design and Study.
2021: Complete the North College Transit
Oriented Development Plan, which
considers an extension of Bus Rapid
Transit to North College area.
WS 2021: Report on progress on these
projects and to seek guidance on funding
and fare study.
2022: Budgeting For Outcomes Offer
submitted with a focus on collaboration
with Poudre School District.
Improved traffic compliance Police will evaluate methods for enhancing
traffic compliance, and continue/increase
traffic enforcement at locations where
concerns have been raised.
High Performing
Government
Advance Regionalism -
collaboration regionally while
maintaining the unique
character of Fort Collins
Establish a framework and relationships for
continued progress toward numerous issues
that have impacts and likely solutions at the
regional level, such as water, transportation,
housing, and air quality.
EXHIBIT A
COPYPage 29
Item 2.
2
Strategic
Outcome
Priority Outcome Statement
Look into changing the April
election to November with
School Board years to have
all local elections at once
Gather information and present findings at a
future work session to identify and evaluate
advantages and disadvantages, resource
needs, policy changes, and calendar
implications of moving to November elections.
If Council determines a change should move
forward, staff would prepare an
implementation plan to support the transition
and Charter amendment.
Advance gender equity in City
Sales Tax Code
Establish a Pink Tax or Menstrual Equity
Ordinance for the City of Fort Collins to
exempt certain products from sales tax. Input
will be sought from residents and businesses
to provide feedback to Council prior to
consideration on first reading.
Attract and retain competitive
and diverse talent to meet the
needs of the community
The first phase will be to determine current
and future childcare needs of our employees
and then recommend strategies and solutions
within a financial model that is sustainable.
Working very closely with the County as they
desire to have an onsite childcare facility and
welcome any possible alignment.
Environmental
Health
Help bird species recover Explore opportunities to become a certified
bird-friendly city through organizations such
as the Audubon Society.
Accelerate composting -
Curbside and business)
Work toward implementation of Our Climate
Future (OCF) Big Move 2: Zero Waste
Neighborhoods, specifically:
Collaborate through Regional Wasteshed
to identify opportunities to accelerate
development of yard trimmings and food
scraps composting facilities on Larimer
County property adjacent to the Larimer
County Landfill.
Commence policy development regarding
yard trimmings and food scraps per
Council direction.
Adopt grey water statute to
allow grey water systems in
new buildings
Explore and implement, if feasible, a
Graywater Ordinance for the City of Fort
Collins to promote the use of the "right water
for the right use". Staff will present policy
issues related to this priority in a work session
in late 2021 timeframe. An update to the
Plumbing Code would be needed in addition
to an implementing ordinance.
EXHIBIT A
COPYPage 30
Item 2.
3
Strategic
Outcome
Priority Outcome Statement
Districted system for garbage,
recycling and compost
Utilizing information from previous studies
about districting trash and recycling services
in Fort Collins and best practices from peer
communities, develop a strategy and timeline
to explore districting in Fort Collins.
Explore climate emergency
messaging and action
Work with the community to identify the most
effective messaging to intensify progress
towards goals and implement Our Climate
Future.
Effective soil amendment
policies and compliance
water usage),
Optimize staff resources to modernize the
current soil amendment code while evaluating
best practices in the industry. Coordination
with multiple City departments will be
necessary in addition to aligning the timing
appropriately with Land Use Code updates.
Protect and Enhance
Instream River Flows
Continue efforts currently underway,
including:
Developing and using regulatory and
infrastructure/resource mechanisms
Multiple BFO offers are included in the
2022 budget process.
Reduce Plastic Pollution Explore what technologies are available
for washing machine microfibers and if
there is enough evidence to warrant the
City endorsing and incentivizing them as a
whole.
Continue comprehensive plastic policy
development: Re-engage community to
understand what items and policy
interventions have support. Bring
engagement results and best practices to
Council for further consideration.
Implement disposable bag ordinance:
Work with historically underrepresented
groups and highly impacted community
members to identify potential equity
impacts of disposable bag ordinance and
work to alleviate them. Work with grocers
and community as a whole to implement
disposable bag ordinance in 2022.
EXHIBIT A
COPYPage 31
Item 2.
4
Strategic
Outcome
Priority Outcome Statement
Improved Air Quality Continue to implement a full spectrum of
options—including engagement, incentives
and regulation—that focus on prevention of
air pollution at the source, including:
Incentivizing and promoting use of electric
or low-emission alternatives to non-road
gas and diesel engines such as lawn and
garden maintenance equipment, for
residential, municipal and commercial
use.
Supporting reductions in oil and gas
production and development related
emissions, through regional collaboration
and updates to local regulations.
Continuing to support outreach and
enforcement related to local air quality
regulations, such as outdoor wood
burning and fugitive dust policies.
Electrification of buses in progress and
work toward reducing Single Occupancy
Vehicles.
Improved understanding of regional
impacts on local air quality through
enhanced monitoring.
Make real progress on the
road to Zero Waste (with
focus on multi-family and
commercial recycling and
construction and demolition
recycling)
Implement the Community Recycling
Ordinance, which brings recycling to multi-
family complexes and businesses in 2021.
Improve enforcement of recycling
requirements at construction and
demolition sites
Continue to work toward construction and
demolition sorting facility as part of
Regional Wasteshed Project
As part of regional and state efforts, work
to develop construction and demolition
materials recycling markets
Could consider the value of evolving our
demolition ordinance to deconstruction
ordinance.
Xeriscape – Increase rebates
and education, less green
lawns with new development
Optimize City resources, including funding
and staff, to promote and implement
xeriscape landscaping where appropriate.
Landscape code requirements will be
coordinated with the Land Use Code update
efforts.
EXHIBIT A
COPYPage 32
Item 2.
5
Strategic
Outcome
Priority Outcome Statement
Enhanced recycling
education
Implement OCF strategy to explore
barriers to recycling, reuse, and sharing
experienced by historically
underrepresented groups and the broader
community, including but not limited to
education.
Implement recommendations to remove
barriers where feasible, including those
related to how the City provides recycling
education.
Depending on input from the community,
possible actions could include enhanced
partnerships with community
organizations or more focus on language
justice.
Build trust and maintain more
relationships in the community to ensure
ongoing feedback instead of one-off
engagement.
Improved and accelerated
stream (riparian) restoration
Continue and enhance the Stream
Rehabilitation program in stormwater by
implementing stream rehabilitation projects
such as successful work on Spring Creek at
Edora Park and Mail Creek, including work
with Natural Areas on additional projects, with
the goal of optimizing the balance of
floodplain safety and rehabilitation work.
Economic Health Raise the minimum wage Evaluate and consider raising the minimum
wage locally as allowed under HB19-1210
within Fort Collins to address the rising cost of
living. Potential activities include:
Prepare and implement a public
engagement plan that meets the state
statute requirements.
Conduct an economic analysis of the
impacts of a local minimum wage on the
local economy.
Present the results to City Council, Boards
and Commissions, and other key
stakeholders.
Based on direction from Council prepare a
local ordinance establishing a local
minimum wage consistent with state law.
EXHIBIT A
COPYPage 33
Item 2.
6
Strategic
Outcome
Priority Outcome Statement
Develop a Circular Economy
Plan
Consider a circular economy plan and tech
incubator as part of a holistic update to the
City's Economic Health Strategic Plan and in
partnership with implementation of Our
Climate Future
Encourage innovation and the local use of
materials that are either the by-product or
waste of another industry.
Incorporate Austin Tech circular economy
incubator as a model.
Partner with Poudre School
District (PSD) for workforce
development
Engage with PSD to support identifying a site
for the Futures Lab and continue to consider
the role of the Urban Renewal Authority in
supporting Power House II. Partnership
opportunities include the development of
internships, fellows, and work/study or
mentoring programs.
Affordable, Quality and
Accessible Childcare
Infrastructure
With a focus on workforce
development/retention, expand the City's
support for system-level childcare projects;
capacity expansion for school-age summer
care spots; increase support for accessibility
resources for vulnerable populations; mental
health resources built into childcare programs.
Additional activities may include:
Provide direct care services (Recreation),
policies and partnership efforts that align
with the City’s role/scope.
Prioritize efforts to catalyze
entrepreneurial opportunities for home-
based providers.
Integrate childcare infrastructure into the
City Recovery Plan and Economic Health
Strategic Plan update.
Reduce development review barriers to
center-based childcare, particularly when
it involves reusing or expanding existing
buildings.
Create a targeted, specific
plan for community recovery
Adopt a City Recovery Plan in December
2021 to direct the administration of various
federal programming, including the American
Rescue Plan Act (ARPA) proceeds.
Culture and
Recreation
Access funding for parks
maintenance and operations,
refresh, and new parks)
Increase funding for parks refresh and asset
management;
2022 BFO offers have been submitted
Long-term funding strategy is an identified
priority for new Community Services
Director.
EXHIBIT A
COPYPage 34
Item 2.
7
Strategic
Outcome
Priority Outcome Statement
Improved tree policies Analyze opportunities for improved tree
policies in the Land Use Code. Work in
collaboration with Development Review to
include amendments focused on tree
protection guidelines and mitigation
requirements that highlight the sliding scale of
value of mature trees.
Tree planting subsidy Develop a 2022 BFO offer that increases the
size of the Community Canopy program that
provides a subsidy to private property owners
for tree planting.
Neighborhood
Livability and Social
Health
Implementation of 15-minute
community concept
2022: BFO offer submitted to analyze existing
citywide plans and metrics for alignment with
15-minute concept in coordination with the
update to our Active Modes Plan; identify
critical next steps and implementation
priorities.
Homelessness Initiatives: City will collaborate with partners on 24/7
shelter community engagement and planning
in addition to supporting Outreach Fort Collins
enabling expansion into mid-town and
continue in North Fort Collins to:
1. Increase service referrals for people
experiencing homelessness and respond
to reported disruptive behaviors.
2. Foster relationships among businesses,
service providers, and residents in mid-
town.
EXHIBIT A
COPYPage 35
Item 2.
Council Priorities
April 25, 2023
2-Year Check-in and Alignment
Ginny Sawyer, Project and Policy ManagerPage 36
Item 2.
2Council Questions
1.What questions or feedback does Council have on the Priority
progress?
2.What, if any, recommended adjustments does Council have for
focus areas through the remainder of the year?
Page 37
Item 2.
3Background
•Every 2 years, newly elected Council identifies Priorities.
•2021-2023 Priorities adopted on July 20, 2021.
•31 Priorities identified.
•Priorities support City’s Vision, Mission, Strategic Plan and ensure world class
service provision 24 hours a day, 365 days a year.
•Priority Update Report provided every-other month. Reports found at
www.fcgov.com/council.
Page 38
Item 2.
Complete/Substantially Complete 4
•More stringent penalties for
animal cruelty and neglect
•Improved traffic compliance
•Look into changing the April
election to November
•Advance gender equity in City
Sales Tax Code
•Adopt grey water statute to allow
grey water systems in new
buildings
•Xeriscape-increase rebates and
education, less green lawns with
new development
•Create a targeted, specific plan
for community recovery
•Tree planting subsidy
•Improve tree policies
•Juvenile Diversion
•Effective soil amendment policies
and compliance
•Attract & retain competitive &
diverse talent; provide childcare
options for City employees
•Reduce plastic pollution
•Districted system for garbage,
recycling, and compost
•Local minimum wage
•Help bird species recover.
Page 39
Item 2.
Significant Progress by Term End
•Advance transit initiatives that remove barriers
•Accelerate composting (curbside and business)
•Enhanced recycling education
•Explore climate emergency messaging and action
•Access funding for parks
•Develop circular economy program
•Advance regionalism-collaboration regionally while maintaining the
unique character of Fort Collins
•Improved air quality
•Improved/accelerated stream restoration
•Protect/enhance instream river flow
•Make real progress on Road to Zero Waste
•Affordable, quality, and accessible childcare infrastructure
•Partner with PSD for workforce development
•Homelessness initiatives
5
Page 40
Item 2.
Additional Highlights 6
Page 41
Item 2.
Focus Areas for 2023
Land use engagement
and completion
Sustainable funding
Soil Amendments
Ballot items
7
Page 42
Item 2.
8Council Questions
1.What questions or feedback does Council have on the Priority
progress?
2.What, if any, recommended adjustments does Council have for
focus areas through the remainder of the year?
Page 43
Item 2.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 6
April 25, 2023
WORK SESSION AGENDA
ITEM SUMMARY
City Council
STAFF
Travis Storin, Chief Financial Officer
Ginny Sawyer, Sr. Project Manager
SUBJECT FOR DISCUSSION
Sustainable Funding Update.
EXECUTIVE SUMMARY
The purpose of this item is to seek Council direction on timing and revenue options to consider for referral
to the November 2023 ballot.
Staff is also providing additional funding mechanism information as background.
Also of note, staff is currently focusing on a November 2024 election to bring forward the Street
Maintenance renewal and the Community Capital Renewal.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. What feedback do Councilmembers have on the revenue options presented?
2. What feedback do Councilmembers have regarding ballot measures in November 2023?
3. What additional information would Councilmembers like to see?
BACKGROUND / DISCUSSION
Over the past year, staff worked with Council Finance Committee (CFC) and the full Council to seek ways
to address identified 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.
Parks and Recreation - $8 to $12M annual shortfall (Parks & Recreation Master Plan)
Transit - $8M to $14.7M annual shortfall (Transit Master Plan)
Housing - $8M to $9.5M annual shortfall (Housing Strategic Plan)
Climate - $9.5M+ annual shortfall (Our Climate Future Plan)
Transit, Housing, and Climate are the initiatives targeted as “Climate Umbrella” based on efforts identified
in the Climate Action “Big Moves.”
Page 44
Item 3.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 6
CFC discussions to date have highlighted a desire to:
Clearly define and articulate revenue needs.
Thoroughly research funding options including impacts to residents.
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.
Develop clear understanding of how funds will be utilized.
These considerations have also been supported by the full Council.
Funding Options and Analysis
Through discussion and analysis at CFC and Council work sessions, sales tax, property tax and
excise/additional sales taxes have emerged as the most feasible mechanisms. Staff has also researched
and added an increase to the Xcel franchise fee and a utility occupation tax, commonly referred to as a
“climate tax” as well as a large emitter tax and the potential of a dedicated sales tax. The table below
demonstrates the potential revenue gain of these mechanisms along with estimated annual impact to
residents.
Page 45
Item 3.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 6
Franchise Fee
The maximum allowable Xcel franchise fee surcharge is 3%. The City currently assesses the fee at 1.07%
and could increase the fee to its maximum through an Ordinance approved by Council and with 60 days’
notice to Xcel.
Though the data may fluctuate year to year, staff predicts that increasing the natural gas f ranchise fee to
its maximum 3% would likely result in new revenue generation between $930,000 and $1.3M per year,
with average annual impacts to end consumers estimated to be ~$14 for residential customers and ~$80
for businesses. Any revenue generated by this approach is likely to be volatile from year to year given the
unpredictability of wholesale natural gas prices.
Additional Sales Tax
An additional sales tax is a sales tax on the purchase price to the end customer. For consideration in these
discussions, staff has estimated additional tax revenue using an additional 3% and 5% tax on marijuana,
alcohol and nicotine.
Numerous other municipalities across Colorado have an additional tax on marijuana. Requires voter
approval.
Tax Type Additional 3% Additional 5%
Alcohol* $2M+ $4M+
Marijuana $3M $5M
Nicotine** $1M+ $2M+
*Liquor store estimate only **Cigarette estimate only
Of note are the existing taxing levels on these products:
Marijuana Sales Tax Rate Comparison
Page 46
Item 3.
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 owner’s total annual property tax. Requires voter approval.
Poudre Fire Authority gets 67% of the City’s portion (approximately 6 of the City’s 9 mills) of property tax
amount through an intergovernmental agreement.
Property tax is collected in arrears. If additional mills were adopted in November 2023, the City would see
those collections in 2025.
Dedicated renewal Sales Tax
This would be an additional quarter (¼) cent sales tax dedicated to a particular use or uses. A ¼ cent sales
tax is estimated to generate $10 annually with an impact of ~$31 per person or $78 per household based
on average household size (assumes a household size of 2.5, American Community Survey 2021 1-year
estimates, table DP04). Groceries would not be taxed. Requires voter approval.
Utility Occupation Tax:
This mechanism taxes natural gas as a proxy for greenhouse gas emissions. Council may select the
amount of revenue they would like to generate per year and require the provider to adjust annual rates
accordingly to meet this revenue requirement. Annual cost increases are relatively high for natural gas
consumers. At a tax rate of 4.5% staff estimates new revenue of roughly $3.6M per year at a cost of ~$32
dollars per household annually.
Large Emitter Tax:
A large emitter tax has the potential to accelerate de-carbonizing two entities currently producing more
GHG emissions than the EPA reporting threshold. It would generate several million dollars a year in new
revenue in the short term, but its financial returns diminish steadily, with the last year of projected revenue
generation before 2030 after the two entities drop below the EPA’s reporting threshold.
At the current reporting requirement of 25,000 MT CO2e annually, only two entities (Broadcom and
Anheuser-Busch) would be subject to a large emitter tax. Should both organizations follow through with
their public statements regarding reductions, Broadcom would not be subject to the tax after 2027, and
Anheuser-Busch would not be subject after 2030.
Using forecasted levels of CO2e emitted from Anheuser-Busch and Broadcom, the following table shows
the annual revenue the City would expect to generate in 2024 utilizing the SC-CO2 as a baseline per metric
ton.
Facility Total Reported Emissions
(MT CO2e) 2024 Forecast
Revenue ($51/MT)
Broadcom 57,400 $2.9M
Anheuser-Busch 37,474 $1.9M
Total 94,874 $4.8M
Requires 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, two demonstration scenarios have been created.
Page 47
Item 3.
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. These scenarios do consider the number of initiatives on any one ballot, the timeline for generating
revenue, and the impacts to residents and businesses.
Staff has also developed a tool that can be used live to adjust mechanisms and scenarios.
Scenario A:
$11M in 2024 and the addition of $18M of property tax in 2025.
Scenario B:
$11M in 2024, and the addition of $10M in substance tax and $18M in property tax starting in 2025.
NEXT STEPS
Election Timeline Considerations
Per the recent ballot initiative, City elections will now be in November. Ballot referral would need to happen
in August.
TABOR initiatives cannot be considered during special elections.
Street Maintenance and Community Capital Taxes expire December 31, 2025. November 2024 and
November 2025 are two opportunities for renewal.
Page 48
Item 3.
City Council Work Session Agenda Item Summary – City of Fort Collins Page 6 of 6
ATTACHMENTS
1. Council Finance Committee Materials, April 6, 2023
2. Franchise Fee Information Sheet
3. Occupation Tax Information Sheet
4. Large Emitter Tax Information Sheet
5. Sustainable Funding Presentation
Page 49
Item 3.
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Ginny Sawyer, Sr. Project Manager
Travis Storin, Chief Financial Officer
Jennifer Poznanovic, Sr. Revenue Manager
Date: April 6, 2023
SUBJECT FOR DISCUSSION Sustainable Funding Update
EXECUTIVE SUMMARY
The purpose of this item is to seek Council Finance Committee (CFC) direction on timing and
revenue options to consider for referral to the November 2023 ballot.
Staff is also providing additional budget information as background.
Also of note, staff is currently focusing on a November 2024 election to bring forward the Street
Maintenance renewal and the Community Capital Renewal.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1.What is Council Finance feedback on revenue options and timelines presented?
2.What additional information would Council Finance like to see?
BACKGROUND/DISCUSSION
Over the past year, staff has been working with CFC and the full Council to seek ways to
address identified 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. Estimated annual shortfalls range from six to twelve million per
area.
•Parks & Recreation - $8 to $12M annual shortfall (Parks & Recreation Master Plan)
•Transit - $8M to $14.7M annual shortfall (Transit Master Plan)
•Housing - $8M to $9.5M annual shortfall (Housing Strategic Plan)
•Climate - $6M to $9.5M annual shortfall (Our Climate Future Plan)
Transit, Housing, and Climate are the initiatives targeted as “Climate Umbrella.”
CFC discussions to date have highlighted a desire to:
•Clearly define and articulate revenue needs.
•Thoroughly research funding options including impacts to residents.
•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 have also been supported by the full Council.
Funding Options and Analysis
Through discussion and analysis at CFC and Council work sessions, sales tax, property tax and
excise/additional sales taxes have emerged as the most feasible mechanisms. Staff has also
Page 50
Item 3.
researched and added an increase to the Xcel franchise fee and a Utility Occupation Tax,
commonly referred to as a “climate tax.” The table below demonstrates the potential revenue
gain of these mechanisms along with estimated annual impact to residents.
Category Funding
Mechanism Use
Annual
Revenue
Estimate
Stakeholder Impact
Franchise
Fee to 3% Natural Gas Bills “Core”
Climate $1M
•Council action only – does
not require voter approval
•2% increase. ~
$11/household annually
Substance
tax
1 to 5% on
Alcohol/MJ/Tobacco Parks & Rec $6 to
11M+
•$1 to 5 per $100 purchase
in Fort Collins
•Visitors also impacted
Utility
Occupation
Tax
8 to 9% on Natural
Gas Bills
Climate
Umbrella $3 to 4M
•8% residential increase per
household. ~$50 per
residential household
annually
Property
Tax 1 to 5 Mills Climate
Umbrella
$4 to
18M+
•Residential annual increase
of $21 to 107
•Commercial annual increase
of $87 to 435
Total $15 to
40M+
•$81 to $168 net annual
increase per household +
impact of excise tax
Franchise Fee:
The maximum allowable Xcel franchise fee surcharge is 3%. The City currently assesses the
fee at 1.07% and could increase the fee to its maximum through an Ordinance approved by City
Council and with 60 days’ notice to Xcel. Although this revenue source is designated as a “fee”
it is not subject to the restrictions of other types of fees that require any use of those funds
directly benefit the fee payer.
Additional Sales Tax:
An additional sales tax is a sales tax on the purchase price to the end customer. For
consideration in these discussions, staff has estimated additional tax revenue using an
additional 3% and 5% tax on marijuana, alcohol and tobacco.
Numerous other municipalities across Colorado have an additional tax on marijuana.
Tax Type Additional 3% Additional 5%
Alcohol* $2M+ $4M+
Marijuana $3M $5M
Page 51
Item 3.
Tobacco $1M $2M
An additional sales tax would require voter approval.
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.
Utility Occupation Tax:
This mechanism taxes natural gas as a proxy for greenhouse gas emissions. Council may
select an amount of revenue they would like to generate per year and require the provider to
adjust annual rates accordingly to meet this revenue requirement.
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, two demonstration
scenarios have been created.
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.
Scenario A:
$29M in 2024 with two ballot measures in November 2023
Category Funding Mechanism Timing Use Annual Revenue
Estimate Resident Impact
Franchise
Fee to 3% Natural Gas Bills 2023 “Core”
Climate $1M
2% increase. ~
$11/household
annually
Substance
tax
(?)% on
Alcohol/MJ/Tobacco 2023 Parks &
Rec $10M $1 to 5 per $100
purchase
Property
Tax 5 mills 2023 Climate
Umbrella $18M+
Residential annual
increase of $107
Commercial annual
increase of $87 to
435
Total $29M
$118 net annual
increase per
household + impact
of excise tax
Page 52
Item 3.
Scenario B:
$15-20M in 2024 and the addition of $18M in property tax starting in 2026. Option to sunset the
Utility Occupation tax upon approval of the property tax.
** A ¼ -cent tax increase is estimated to generate $9+M/annually and to cost a resident $31
per/year.
Election Timeline Considerations
Per the recent ballot initiative, City elections will now be in November. Ballot referral would
need to happen in August.
TABOR initiatives cannot be considered during special elections.
Street Maintenance and Community Capital Taxes expire December 31, 2025. November 2024
and November 2025 are two opportunities for renewal.
Community Messaging: City Budget and Revenue Context
Prior to putting tax measures on the ballot, the City typically works to provide residents with
information regarding financial stewardship practices and implementation. This goes beyond the
cyclical process of creating a transparent and balanced budget every 2 years and looks to
include revenue, staffing, inflation, and efficiencies over time.
Category Funding
Mechanism Timing Use
Annual
Revenue
Estimate
Stakeholder Impact
Franchise
Fee to 3% Natural Gas Bills 2023 “Core”
Climate $1M 2% increase. ~ $11/household
annually
Substance
tax
(?)% on
Alcohol/MJ/Tobacco 2023 Parks &
Rec $10M $1 to 5 per $100 purchase
Utility
Occupation
Tax
Natural Gas bills 2023 Climate
Umbrella $3-4M
8-9% residential increase per
household. ~$50 per
residential household
annually
Property
Tax 5 mills 2025 Climate
Umbrella $18M+
Residential annual increase of
$107
Commercial annual increase of
$87 to 435
Total $32M+
$168 net annual increase per
household + impact of excise
tax
Page 53
Item 3.
Staff has begun its outreach efforts with Boards and Commissions, with sessions completed or
to-be-completed with the Parks & Recreation Board, Natural Resources Board, Transportation
Board, Economic Advisory Board, Affordable Housing Board, and Super Issues Meeting.
Below are some high level points from recent analysis:
•The City’s annual operating budget grew from $307M in 2003 to $597M in 2023.
•The compound annual rate of increase for this 20-year period is 3.6%.
o High of 10% in 2008
o Low of -3% in 2007
•From 2006 through 2024 (projected), population has grown by an average of 1.6% per
year and inflation has averaged 2.4% per year
• Composite inflation and population amounting to 4% has outpaced growth in the City
budget of 3.6%
•For the same span of time, compensation dollars per capita has increased an average of
2.1% per year, which compares well with inflation.
•$6.2M of ongoing budgets were cut since 2020, net of any Restore offers.
•The City’s Charter ensures that deficit spending is never permitted, and that service
levels will always be matched to revenue
•The BFO process incorporates requirements to document and measure efficiencies and
cost savings, these can be viewed at:
• fcgov.com/budget (ongoing offer narratives)
• fcgov.com/kfcg (annual KFCG reporting)
•From 2000 to 2022, the City Net Taxable sales dropped from 80% to 50% of total
County sales (i.e. When Fort Collins was the “only” place to shop our sales tax revenues
were more heavily subsidized by non-residents. Today residents are taking more of the
burden to create revenue for the City.)
Climate Progress:
•Ongoing initiatives
•Energy Efficiency, Customer Renewable and Grid Flexibility programs
•$6.6M annually
•EPIC Loan program, up to $2.5M annually in available financing
•Streetlight LED conversion, $1Mk annually
•Efficiency Works programs (via Platte River budgeting)
•~$5M annually
•23/24 Enhancement Offers
•$1.7M over two years for grid flexibility software, hardware and programs
•$150k for mobile home efficiency demonstration
•Planned investments
•New tools for distribution system planning and operations
•Federal and State Grant Funding: active research and application processes
Staff estimates that community electricity utilization would be 20% higher without the Utilities
energy programs since 2005.
ATTACHMENTS (numbered Attachment 1, 2, 3,…)
1.Sustainable Funding Update PPT
Page 54
Item 3.
SUSTAINABLE FUNDING UPDATE
04-06-2023Page 55
Item 3.
2Council Finance Direction
QUESTIONS:
What is CFC’s feedback on revenue options and
timelines presented?
What additional information would Council Finance
like to see?
Page 56
Item 3.
3February CFC
FEBRUARY CFC
•Staff presented an option of additional sales tax dedicated to Parks &
Recreation in 2023, tax renewals in 2024 and potential housing, climate,
transit tax in 2025
•Council Finance requested exploring more than one tax measure in 2023
and more clarity in how funds would be dedicated
Page 57
Item 3.
4Agenda
•Refresher on timing and 4 priority areas
•Ballot Package Strategies
•Pros/cons on each ballot package:
•Community viability/landscape
•Equity impacts and mitigation techniques
•Risks
•Nexus: Mission/action/ask
•Community Messaging: City Budget Review
•Budget and service footprint
•Staffing levels
•Efficiencies gained
•Existing Climate BackdropPage 58
Item 3.
52023 Core Team Timeline
SUSTAINABLE FUNDING TIMELINE
April CFC April Council Work
Session
• Natural gas excise,
larger emitter tax,
franchise fees
•ECCLC Childcare
Ballot Measure
• Overall ballot referral
strategy
November
Elections
July CFC &
August Council
•Potential draft ballot
specifics
•Overall ballot referral
strategy
Page 59
Item 3.
Identified Funding Needs 6
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 60
Item 3.
7Agenda
•Refresher on timing and 4 priority areas
•Ballot Package Strategies
•Community Messaging: City Budget Review
•Budget and service footprint
•Staffing levels
•Efficiencies gained
•Existing Climate Backdrop
Page 61
Item 3.
8Options
Category Funding
Mechanism Timing Use Annual Revenue
Estimate Resident Impact
Franchise Fee
to 3%Natural Gas Bills “Core”
Climate $1M
•Council action only –does not require voter
approval
•2% increase. ~ $11/household annually
Substance tax 1 to 5% on
Alcohol/MJ/Tobacco Parks & Rec $6 to 11M+•$1 to 5 per $100 purchase in Fort Collins
•Visitors also impacted
Utility
Occupation Tax
8 to 9% on Natural
Gas Bills
Climate
Umbrella $3 to 4M • 8-9% residential increase per household. ~$50
per residential household annually
Property Tax 1 to 5 Mills Climate
Umbrella $4 to 18M+•Residential annual increase of $21 to 107
•Commercial annual increase of $87 to 435
Total $15 to 40M+•$81 to $168 net annual increase per
household + impact of excise tax
Page 62
Item 3.
9Scenario A
Category Funding
Mechanism Timing Use Annual Revenue
Estimate Stakeholder Impact
Franchise Fee
to 3%Natural Gas Bills 2023 “Core”
Climate $1M
•Council action only –does not require
voter approval
•2% increase. ~ $11/household annually
Substance tax (?)% on
Alcohol/MJ/Tobacco 2023 Parks & Rec $10M •$1 to 5 per $100 purchase in Fort Collins
•Visitors also impacted
Property Tax 5 mills 2023 Climate
Umbrella $18M+•Residential annual increase of $107
•Commercial annual increase of $435
Total $29M+•$118 net annual increase per household
+ impact of excise tax
Page 63
Item 3.
10Scenario B
Category Funding Mechanism Timing Use Annual Revenue
Estimate Stakeholder Impact
Franchise Fee
to 3%Natural Gas Bills 2023 “Core”
Climate $1M
•Council action only –does not require
voter approval
•2% increase. ~ $20/household annually
Substance tax (?)% on
Alcohol/MJ/Tobacco 2023 Parks &
Rec $10M •$1 to 5 per $100 purchase in Fort Collins
•Visitors also impacted
Utility
Occupation Tax
8 to 9% on Natural
Gas Bills 2023 Climate
Umbrella $3 to 4M • 8-9% residential increase per household.
~$50 per residential household annually
Property Tax 5 Mills 2025 Climate
Umbrella $18M+•Residential annual increase of $107
•Commercial annual increase of $435
Total $32M+•$177 net annual increase per household
+ impact of excise tax
•If successful, Utility Occupation Tax would naturally decline over time.
•Also an option to sunset this tax upon approval of Property Tax.
•For reference, a ¼-cent sales tax increase generates $9M+ annually with a
resident impact of $31/yr.Page 64
Item 3.
11Agenda
•Refresher on timing and 4 priority areas
•Ballot Package Strategies
•Community Messaging: City Budget Review
•Budget and service footprint
•Staffing levels
•Efficiencies gained
•Existing Climate Backdrop
Page 65
Item 3.
122023 Engagement Team Timeline
SUSTAINABLE FUNDING ENGAGEMENT TIMELINE
March April
• Parks & Recreation
(3/22)
•Natural Resources
(3/22)
May
•Affordable Housing (5/4)
• Super Issues (5/22)
•Natural Resources
•Transportation (4/19)
•Economic Advisory
(4/19)
Page 66
Item 3.
13Budget size over time
•The City’s annual budget grew from
$307M in 2003 to $597M in 2022
•The compound annual growth rate of City
Spend for this 20-year period is 3.6%
•The compound annual growth rate for
population + CPI is 4.0%
Four priority areas 2003-2023:
Environmental Svcs. (non-utility)* 8.9%
Parks and Recreation 3.1%
Social Sustainability 4.5%
Transit 3.9%
* Excludes disposable bag ordinance and landfill
remediation budgets0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
2006 2008 2010 2012 2014 2016 2018 2020 2022
City Budget Growth vs.
Population + CPI Growth
3-yr Budget Avg 3-yr Population + CPI Avg
Page 67
Item 3.
14Staffing Over Time
•City strives to parallel staffing growth with
population growth for existing services
•From 2006 through 2024 (projected), population
has grown by an average of 1.6% per year
•For the same span of time, compensation per
capita has increased an average of 2.1% per
year
•2006:
•Population: 135,034
• FTE:1,154.3
•FTE per 1,000: 8.5
•2024:
•Population: 180,191
• FTE:1,794.6
•FTE per 1,000: 10.0
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 City PopulationCompensation SpendMillionsCity Staffing Spend and Population
Total Comp PopulationPage 68
Item 3.
15Budget efficiencies over time
The City’s Charter holds two key requirements pertaining to budget:
•The City is not permitted to deficit spend –every appropriation must be matched to
a specific revenue or reserve source
•City Council adopts all appropriations via Ordinance
This budgetary environment of forced trade-offs and our Charter ensures that:
•Despite revenue challenges, service levels will always be right-sized to available
revenues.
•Staff are compelled to implement efficiencies and process improvements as a
matter of service continuity, and to document and measure these in their BFO
offers, KFCG annual reports, etc. (see backup slides)
•$6.2M of ongoing budget cuts have been made since 2020, net of restoration offers
Page 69
Item 3.
16Fort Collins Utilities Climate Funding
•Ongoing initiatives
•Energy Efficiency, Customer Renewable and Grid Flexibility programs
•$6.6M annually
•EPIC Loan program, up to $2.5M annually in available financing
•Streetlight LED conversion, $1Mk annually
•Efficiency Works programs (via Platte River budgeting)
•~$5M annually
•23/24 Enhancement Offers
•$1.7M over two years for grid flexibility software, hardware and programs
•$150k for mobile home efficiency demonstration
•Planned investments
•New tools for distribution system planning and operations
•Federal and State Grant Funding: active research and application processes
OUR IMPACT
Community-wide
total electricity use
would be over 20%
higher without
Utilities energy
programs since 2005
Page 70
Item 3.
17Council Finance Direction
QUESTIONS:
What is CFC’s feedback on revenue options and
timelines presented?
What additional information would Council Finance
like to see?
Page 71
Item 3.
Page 72
Item 3.
19
Backup
Page 73
Item 3.
20Fort 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
$4,500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Millions
City Net Taxble City % of County Sales City Pop % of County
(revenue trends and comparisons)
FORT COLLINS NET TAXABLE SALES
Page 74
Item 3.
21Property Tax
Category Funding Mechanism Annual Revenue
Estimate Household Impact
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
Page 75
Item 3.
22Substance Tax
Category Substance Funding Mechanism Annual Revenue
Estimate Household Impact
Additional (Excise)
Sales Tax Alcohol*1% Additional Tax $780K+•$1 per $100 purchase in Fort Collins
•Visitors also impacted
Alcohol*3% Additional Tax $2M+•$3 per $100 purchase in Fort Collins
•Visitors also impacted
Alcohol*5% Additional Tax $4M+•$5 per $100 purchase in Fort Collins
•Visitors also impacted
Marijuana 1% Additional Tax $900K+•$1 per $100 purchase in Fort Collins
•Visitors also impacted
Marijuana 3% Additional Tax $3M+•$3 per $100 purchase in Fort Collins
•Visitors also impacted
Marijuana 5% Additional Tax $5M+•$5 per $100 purchase in Fort Collins
•Visitors also impacted
Tobacco**1% Additional Tax $340K+•$1 per $100 purchase in Fort Collins
•Visitors also impacted
Tobacco**3% Additional Tax $1M+•$3 per $100 purchase in Fort Collins
•Visitors also impacted
Tobacco**5% Additional Tax $2M+•$5 per $100 purchase in Fort Collins
•Visitors also impacted
*Liquor store estimate only
**Cigarette estimate only
Page 76
Item 3.
Election Timeline Options:
23Election Timeline Options
2023 2024 2025 2026
November November NovemberNovember
•Street Maintenance and Community Capital Taxes expire Dec. 31, 2025
Parks & Rec.Renewals Climate Portfolio –
Climate, Housing, Transit
Page 77
Item 3.
24Budget efficiencies over time
Staff completed a review of adopted budgets, KFCG annual reports, FC Lean
Program Results, and department-provided “stop-doing” lists.
Sources Cited:
•Ongoing offer narratives –responses to “Improvements and Efficiencies” section
(fcgov.com/budget)
•KFCG Annual Reporting (fcgov.com/kfcg)
•Reduction Offers during current and previous BFO cycles (fcgov.com/budget)
In addition to these narrative examples, staff confirmed that $6.2M of ongoing budgets
were cut since 2020, net of any Restore offers.
Page 78
Item 3.
25
Budget efficiencies over time
Source: Ongoing Offer Narratives
2023-2024 BFO Cycle –Ongoing Offers
•Digital processing of dozens of city services and functions
•Reduction in total cost of ownership of City computer hardware
•Decrease in injuries leading to decreased cost of Workers’ Comp
•Fleet management improvements
•City budget application was brought in-house, saving $50,000+ per year
•Pricing discounts on telephony for circuit access and long-distance costs
•FCTV updated closed captioning cost lowered from $20/hr to $0.16/hr
•Re-assignment of certain police functions to non-sworn positions
•Reduction in 911 call times and costs through Colorado Regional Information Sharing Project
•Construction of Law Enforcement Training Center saves up to $90,000 per year
•East-side Park Maintenance Shop provides more efficient service with fewer cross-town tripsPage 79
Item 3.
26Budget efficiencies over time
Source: 2020 KFCG Annual Report
2020 KFCG Annual Report:
•Lower cost on building rentals and travel time by moving community meetings to virtual forums
•Lower costs for Parks and Utilities and leading to an early project completion of Horsetooth Outlet
•Elimination of superintendent position at City Park Nine golf course
•Reduced printing and mailing of the Recreator, saving nearly $100,000
•Cross-department collaboration on capital projects leading to significant cost savings
•CDNS electronic conversion for final approval and recording process, eliminating paper and mylar
•Online roofing permit processing saves staff from ~500 permits/month
•Smart Irrigation Controllers for 48 city sites plus 57 medians/streetscapes
•GIS mapping of Parks snow removal routes and irrigation systems drove fuel and labor savings
•GIS mapping of street sweeping operations improves air quality and saves cost
Page 80
Item 3.
272022 Long-term Financial Plan -Baseline
Page 81
Item 3.
28
2022 Long-term Financial Plan
Scenario: New Revenue Sources -Gap Closure
•Additional 0.25% Sales Tax
(~ $9M per year) starting in
2023.
•New Property Tax Mill
assessed (~ $4M per year)
starting in 2023.
•Implement New
Maintenance and
Improvement use fee to
support Lifecycle projects
(builds up to ~ $7M per year)
in 2026 to offset gap in
ongoing maintenance
needs.
Page 82
Item 3.
29Climate Core Investments Needed
•Improved energy performance in existing homes and commercial buildings
•Electrifying heating to reduce natural gas emissions and improve local air
quality
•Electrifying cars and fleets to reduce petroleum emissions and improve local air
quality
•Improved mobility choice through active modes and infrastructure
•Advancing a circular economy to reduce waste
•Higher recycling and diversion rates through education and removing barriers
•More robust community partnerships and leadership to implement OCF
initiatives
Page 83
Item 3.
30What Could Dedicated Our Climate Future Revenue Fund?
Big Move 6 –Efficient, Emissions Free Buildings; $2.65M annually
•Expand programs for electrification of space and water heating
•Explore adding performance standards to Building Energy and Water Scoring program
•Explore residential Home Energy Score point of listing requirement
•Support home electrical panel and service upgrades for electrification
Big Move 13 –Electric Cars and Fleets; $1.85M annually
•Support home electrical panel and service upgrades for EVs
•Public charging strategy, implementation and maintenance
Big Move 4 -Convenient Transportation Choices; $1.5M annually
•Rebates for E-bikes
•Install in-street protected bike lanes and bicycle and pedestrian crossing improvements
•Local match to leverage many state and federal grant opportunities available
Big Moves 2 & 10 –Zero Waste Neighborhoods and Economy; $2M annually
•Growing the circular/sharing/reuse economy
•Improving recycling education and removing barriers to reusing and recycling
•Increasing recycling services through local waste infrastructure and operational support Page 84
Item 3.
31What Could Dedicated Transit Revenue Fund?
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
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 servicePage 85
Item 3.
32What 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 86
Item 3.
Franchise Fee Information Sheet
The maximum allowable Xcel franchise fee under the Franchise Agreement between the City
and Xcel is 3% of Xcel’s gross revenues. However, the City currently only assesses the fee at
1.07%. Under the Franchise Agreement, the Council can decide by resolution to increase the
fee to the full 3.0% and that increase will go into effect 60 days after the City gives Xcel written
notice of the increase.
Though the data may fluctuate year to year, staff predicts that increasing the natural gas
franchise fee to its maximum 3% would likely result in new revenue generation between
$930,000 and $1.3M per year, with average annual impacts to end consumers between $11-$16
for residential customers and $56-$85 for businesses. Any revenue generated by this approach
is likely to be volatile from year to year given the unpredictability of wholesale natural gas prices.
Background
Since 1987 and until 2018, Xcel operated its natural gas system within the City using and
occupying City streets, alleys and public rights-of-way without a franchise agreement from the
City. In place of a franchise agreement, the City has imposed in Article VI of City Code Chapter
25 a “Gas Company Occupation Tax” (Occupation Tax) levied on Xcel. The Occupation Tax is a
flat amount of $445,000 per year payable quarterly by Xcel. The Occupation Tax is described in
the Code Section 25-343(5) as being imposed, in part, as consideration to the City for Xcel’s use
of the City’s streets, alleys and public rights-of-way.
Effective February 1, 2018, the City and Xcel agreed to enter into the Franchise Agreement, which
City Council approved in Ordinance No. 006, 2018. The Franchise Agreement is f or a term 20
years. Under it, Xcel has agreed to pay the City franchise fee of 1.07% of Xcel’s annual gross
revenues, but the City has also agreed that this franchise fee is to be applied as a credit against
the $445,000 Occupation Tax. In fact, the percentage of 1.07% was originally chosen to generate
an amount of franchise fee revenues that would approximate the $445,000 Occupation Tax.
However, the parties also agreed in the Franchise Agreement that the City could, upon giving 60-
days prior written notice to Xcel, increase the rate of the franchise fee up to no more than 3%,
with Xcel still being entitled to use the franchise fee it pays as a credit against the $445,000
Occupation Tax.
Fee Increase and Use of Funds
Therefore, with City Council direction in a resolution, the City could give Xcel the 60-day notice
to increase the franchise fee from 1.07% to 3.0% of Xcel’s annual gross revenues. Currently, the
franchise fee revenue is funneled directly to the general fund and allocated as part of the bi -
annual budget process. Council could choose to designate any or all the franchise fee revenues
specifically to climate investments. Staff recommends allocating the new portion of revenue
Page 87
Item 3.
generated from an increased franchise fee (~two thirds of total funds remitted) for climate work,
and the tables below reflect that assumption in revenue projections.
Important note: although this revenue source is designated as a “fee” it is not the type of fee that
is required to be used in manner that is reasonably likely to benefit the fee payer . It is instead
compensation to the City for Xcel’s use of the City’s rights-of-way.
New Revenue Potential
The revenue generated by increasing Xcel’s franchise fee from 1.07% to 3% would vary annually
based on Xcel’s revenue year to year, though data from previous years informs future estimates.
The table below displays Xcel’s annual remittances of the franchise fee for each of the years 2018
– 2022 as well as an average for the most recent four years:
2018 2019 2020 2021 2022 2019-2022 Average
$361,583 $461,431 $391,306 $483,249 $727,633 $515,905
City staff believe that 2020 revenues were unusually low due to the COVID -19 pandemic, and
2022 revenues were higher due to the increasing price of natural gas as a result of several factors:
the Ukraine-Russia war, inflation, colder winter temperatures, cost increases for coal, and a hike
in the base rate (which has tripled since 2020).
Using actual Xcel franchise fee payments from previous years, staff calculated several e stimates
for revenue generation from an increased franchise fee of 3%. The following table displays two
different revenue estimates: one using the average of actuals from the past four years and one
using 2022 actuals. Modeled scenarios result in estimated new revenue exceeding $900,000 per
year, though the rising price of natural gas indicates a likely scenario close to or exceeding $1
million per year.
Franchise Fee % 2019-2022 AVG Revenue
Baseline 2022 Revenue Baseline
1.07% (actual) $ 515,905 $ 727,633
3.00% (estimate) $ 1,446,462 $ 2,040,093
New revenue
for climate investments $ 930,557 $ 1,312,460
Page 88
Item 3.
Impact to Consumers
As a result of the unpredictability of revenue estimates for natural gas, the impact per resident
of an increase to the franchise fee is more volatile than a four-year average can perfectly predict.
Nonetheless, these numbers represent the best available estimates based on analysis of data
from previous years. The table below shows average monthly and annual estimated increases in
costs by customer type using data from Xcel’s 2021 Community Report because the 2022 report
has not yet been released. As a result of increasing Xcel and corresponding franchise fee revenues
in 2022, the use of 2021 data may be slightly underestimating actual average cost increases for
Xcel customers at a 3% franchise fee.
Monthly On-Bill Franchise Fee Cost
Net Annual
Franchise
Fee
Increase**
Customer
Type
2022
Average
Monthly
Bill
Current Avg.
Monthly
Franchise
Fee
1.07%
Total Avg.
Monthly
Franchise Fee
3.00%
Net Avg. Monthly
Franchise Fee
Increase
3.00%
Residential $ 58.19 $ 0.62 $ 1.75 $ 1.13 $ 13.56
Commercial/
Industrial* $ 344.02 $ 3.68 $ 10.32 $ 6.64 $ 79.69
*Impact on Contract accounts not evaluated
**These totals represent the net average monthly franchise fee increase times 12 months.
Using 2022 data as a baseline, increasing the franchise fee to 3% would result in an estimated
average annual cost increase of $113.56 for residential accounts and $79.69 for
commercial/industrial accounts. Staff anticipates that the City could adopt a rebate program to
provide relief to low-income customers.
Page 89
Item 3.
Utility Occupation Tax Information Sheet
This mechanism taxes natural gas as a proxy for greenhouse gas emissions. Council may select
an amount of revenue they would like to generate per year and require the provider to adjust
annual rates accordingly to meet this revenue requirement. Annual cost increases are relatively
high for natural gas consumers. At a tax rate of 4.5% staff estimates new revenue of roughly
$3.6M per year at a cost of ~$51 dollars per household annually.
Bottom Line
While this mechanism taxes natural gas as a proxy for greenhouse gas emissions and can
generate a steady revenue stream, annual cost increases are relatively high for natural gas
consumers (e.g., 5x higher than increasing the natural gas franchise fee). In terms of the
community’s appetite for this type of revenue mechanism, Fort Collins staff is encouraged that
Boulder’s version of this tax passed with over 70% approval. There is potential that a utility
occupation tax would be popular in our community as well given both municipalities’ aggressive
climate commitments and prior statistically valid surveys that found over 80% of Fort Collins’
residents support acting on the climate emergency. However, this new tax would compound with
an increase to Xcel’s franchise fee, leading to a considerable uptick in the cost of natural gas for
consumers if both mechanisms were enacted. Additionally, there is currently no clear way for
City Council to ensure the tax would not be regressive.
Background
City staff began investigating the utility occupation tax (UOT) model when voters in the City of
Boulder approved a Climate Tax in November 2022 which uses a similar mechanism. A UOT
essentially taxes a natural gas provider (or other utility provider) for the taxable privilege of
delivering natural gas to consumers within City limits.
Boulder’s Climate Tax sets an annual amount of revenue to be collected (passed at $6.5 million)
and adjusts rates each year to achieve that amount. Boulder imposes this tax on both electricity
and natural gas provided by Xcel since Boulder does not have a municipal electric utility. (The
$6.5 million annual revenue amount was proposed and adopted as a $2.5 million annual increase
from their previous approximate annual Climate Tax revenue with $1 million set aside for wildfire
recovery and resiliency efforts.) Their rates are variable by account type, with residential
accounts seeing a substantially lower increase and overall cost burden than commercial and
industrial.
City Councilmembers have clearly stated that equity and minimizing the regressive nature of
taxation must be prioritized for any new revenue mechanism alongside GHG emissions reduction
and climate-related behavior change. In the case of a UOT, the tax would be levied on the
provider and presumably passed on to consumers. While the taxing jurisdiction may set the rate
at which the tax is to be collected, it does not have direct control over how the provider passes
the cost on to customers through the utility billing process.
Page 90
Item 3.
Although public materials produced by Boulder indicate variable rate impacts by account type,
Fort Collins City staff have not identified a legal mechanism by which these variable increases are
being enforced. As a result, the proposal below explores cost scenarios that do not differentiate
cost increases by account type. Nonetheless, Fort Collins staff are still exploring this possibility
to limit the regressivity of the UOT mechanism and further Council’s goals of keeping residential
rate increases as low as possible for the end consumer.
New Revenue Potential
Given staff’s current understanding of this tax mechanism, Council may select an amount of
revenue it would like to generate per year and require the provider to adjust annual rates
accordingly to meet this revenue requirement. Or the Council could select a tax rate and the
annual revenue generated would come from that. The following scenario uses a tax rate of 4.5%
generating new revenue of roughly $3.6M per year. This example rate was chosen to illustrate
an amount at which bills for both residential and business accounts increased by roughly half of
the 8.73% percentage increase that Boulder voters approved in 2022. Importantly, the target
annual amount can be adjusted by City Council depending on its preferences.
Customer Type
Example
Rate
Increase
2022 Avg.
Monthly
Bill
Increase
in
Monthl
y Bill
Total
Annual
Cost
Increase
Active
Accounts Annual Revenue
Residential 4.5% $58.19 $2.62 $31.44 55,112 $1,731,906
Commercial/Industri
al 4.5% $344.02 $15.48 $185.76 4,239 $787,565
Contract (Transport) 4.5% $6,027.53 $271.24 $3,254.88 355 $1,153,969
Total annual new revenue: $3,673,440
Impact to Consumers
As mentioned above, Boulder has publicly stated that their UOT model for the Climate Tax
differentiates average bill impacts by account type, with commercial and industrial accounts
experiencing greater cost impacts than residential accounts. Fort Collins City staff have
investigated Boulder’s municipal code and spoken with their sustainability manager and
attorneys to clarify the exact legal mechanism which enforces this public commitment. At this
time, staff is unable to clearly articulate the way that Bo ulder is enforcing this cost
differentiation commitment in partnership with Xcel, so there is no way to guarantee that
residential accounts would see a proportionally lower increase and overall lower cost burden
than commercial and industrial.
Page 91
Item 3.
Staff is interested in learning more about Boulder’s rate increase differentiation mechanism
because ensuring lower impacts to residential accounts may be a way to avoid additional
regressivity for this tax mechanism. Commercial and industrial accounts may be more easily able
to address cost increases, so a legal mechanism to enforce higher rate impacts to these types of
customers may provide a more equitable context for this type of revenue generation.
Theoretically, if the City were able to enact a scenario with va riable rate impacts to different
types of customers, City Council would still select a target revenue amount. The cost of that target
revenue would be passed down to residential accounts at a lower proportion or percentage
increase than for commercial and industrial accounts, as Boulder has stated their mechanism will
operate. Staff will continue to learn from Boulder’s experience and commits to analyzing the
feasibility of instituting this type of scenario in Fort Collins as more information becomes
available.
Based on the Boulder example, a UOT could be structured to provide relief to low -income
customers.
Page 92
Item 3.
Large Emitter Tax Information Sheet
There are currently only two entities in Fort Collins that would be affected by a large emitter tax.
These two entities are producing enough GHG emissions that trigger the legal requirement that
they report these emissions to the EPA. The tax would be calculated based on these reported
emissions. It would generate several million dollars a year in new revenue in the short term, but
its financial returns diminish steadily, with the last year of projected revenue generation before
2030 after the two entities’ emissions will likely drop below the EPA’s reporting threshold.
Background
Councilmembers expressed interest in a large emitter fee or tax in response to community input
for ways to raise revenue for climate-related projects while also providing disincentives for the
emission of greenhouse gas (GHG). Because the uses for revenue from a fee would be more
limited than tax revenue, staff were directed to focus on a large emitter tax.
In this scenario, a “large emitter tax” would be imposed on those entities within the City’s
boundaries emitting more than 25,000 metric tons of carbon dioxide equivalent (MT CO2e)
annually, as reported to the U.S. Environmental Protection Agency (EPA). The tax in the following
projects is assumed to be the current “social cost of carbon” of $51 per MT CO2e emitted per
year.
Social Cost of Carbon Definition
To date, all revenue projections for this potential source have been calculated based on the Soci al
Cost of Carbon (SC-CO2). The SC-CO2 is defined by the EPA as “a measure, in dollars, of the long-
term damage done by a ton of carbon dioxide (CO2) emissions in a given year,” and it “also
represents the value of damages avoided for a small emission reduction (i.e., the benefit of a CO2
reduction).”1 Estimates of the SC-CO2 depend in large part on the anticipated monetary value of
today’s decisions on the conditions of the future.
The current SC-CO2 is set at $51 per ton of CO2e emitted, though this amount may dramatically
increase in the near term. The value of the SC-CO2 is determined through a political rather than
entirely scientific process, with the amount varying based on economic forecasting related to the
present value of future climate impacts (represented by the current federal administration's
selected discount rate). As a result, the Trump administration valued the SC-CO2 at between $1-
$7 per ton, while the Biden administration assumed an interim value of $51 while the EPA revised
its calculations with greater emphasis on future harms created by present GHG emissions. The
EPA has proposed an increase in the SC-CO2 value to around $190 per ton and is currently
soliciting comment on its analysis.
1 United States Environmental Protection Agency. (n.d.). The Social Cost of Carbon: Estimating the Benefits of Reducing
Greenhouse Gas Emissions. https://19january2017snapshot.epa.gov/climatechange/social-cost-carbon_.html
Page 93
Item 3.
New Revenue Potential
At the current reporting requirement of 25,000 MT CO2e annually, only three entities within city
limits would be subject to a large emitter tax. These include Broadcom, Anheuser-Busch, and
Colorado State University (CSU). The City Attorney’s Office review and analysis of case law
regarding a municipality’s ability to tax a university in its jurisdiction concluded it was unlikely the
City had the legal authority to do so.2 As a result, CSU has been excluded from this analysis,
leaving only two taxable entities in the “large emitter” category now operating within city limits.
Using forecasted levels of CO2e emitted from Anheuser-Busch and Broadcom, the following table
shows the annual revenue the City would expect to generate in 2024 utilizing the SC-CO2 as a
baseline per metric ton. This calculation assumes that all large emitters would be paying the
social cost of carbon on all emissions. The two current large emitters in the City have both asked
why the tax would be charged on the first 25,000 MT CO2e equivalent when all other entities in
the City get a free pass on emissions below this threshold. Therefore, it may be necessary to
consider adjusting the structure of the tax to focus on just the net emissions above the reporting
threshold (25K MT/year).
Facility Total Reported Emissions (MT
CO2e) 2024 Forecast
Revenue ($51/MT)
Broadcom 57,400 $2.9M
Anheuser-Busch 37,474 $1.9M
Total 94,874 $4.8M
To understand the ability of a large emitter tax on these two entities to generate sustainable
revenue, staff analyzed GHG emissions trends from each of the two entities to project the date
at which they would bring their emissions below the 25,000 MT CO2e threshold for EPA reporting
and thus no longer be subject to the local tax. Anheuser Bush has publicly committed to lower its
annual emissions below 25,000 MT CO2e before 2030; Broadcom has also publicly committed to
lower its annual emissions under the reporting threshold within the next five years.
The following graphs show each businesses’ progress toward lower emissions:
2 See Colorado Supreme Court decision, City of Boulder v. The Regents of the University of Colorado, in which the Court
concluded Boulder could not compel the University of Colorado to remit to Boulder an admissions tax for public
events on campus.
Page 94
Item 3.
The resulting revenue generation estimates for future years are tabulated below.
Page 95
Item 3.
Should both organizations follow through with their public statements about their reductions,
then Broadcom would not be subject to the tax after 2027, and Anheuser -Busch would not be
subject after 2030. If the tax were to be passed in the fall of 2023, revenue collection would begin
in 2024.
Page 96
Item 3.
Credibility of GHG Reporting
The EPA’s Greenhouse Gas Reporting Program (GHGRP)3 prescribes methodologies that must
be used to determine GHG emissions from each source category. All reports submitted to EPA
are evaluated by electronic validation and verification checks. The GHGRP ensures that data
submitted to EPA are accurate, complete, and consistent through a multi-step process. This
process begins when the reporter enters their data and must certify that the data and
information contained in the annual GHG report are true, accurate, and complete before the
report is submitted to EPA. Finally, after the report is submitted, it is evaluated against an
extensive array of electronic checks that will “flag” potential errors. If potential errors are
identified, EPA will notify the reporter, who can resolve the issue either by providing an
acceptable response describing why the flagged issue is not an error or by correcting the
flagged issue and resubmitting their annual GHG report.
Future State Regulation of GHGs
As part of it 2021 environmental justice bill (HB21 -1266), the Colorado Air Quality Control
Commission (AQCC) must create rules that include greenhouse gas in the list of air pollutants
that entities must include in their air pollutant emission notices (APENs). The portion of the bill
addressing the industrial and manufacturing sector requires a rulemaking at the AQCC to
reduce emissions at least 20% by 2030 and requires mean ingful reductions in pollution from
this sector no later than 2025. The rules must prioritize emission reductions that also reduce co -
pollutant emissions that adversely affect disproportionately impacted communities. The state
will regularly report emissions from this sector and, if the state is off-track from achieving the
standards established by law, will have a responsibility to promulgate additional regulations to
fill the gap.
Furthermore, AQCC must charge regulated air pollution sources a per-ton fee based on their
GHG emissions, though the fee amount has not yet been determined. For reference, regulated
sources currently pay $36/ton for criteria pollutants (nitrogen oxide, volatile organic
compounds, carbon monoxide, particulate matter, and sulfur dioxide) and $239/ton for
hazardous air pollutants.
Impact to Consumers
The effects of a local larger emitter tax would be directly borne by two impacted entities. It is
unknown precisely how they would absorb the added costs or how the additional taxation would
affect business investments in GHG-reduction measures. The tax would discourage large emitters
from locating to the Fort Collins community and significantly impacts those already operating in
City limits.
3 Source: https://www.epa.gov/ghgreporting/ghgrp-methodology-and-verification
Page 97
Item 3.
SUSTAINABLE FUNDING UPDATE
04-25-2023Page 98
Item 3.
2Council Direction
QUESTIONS:
What feedback do
Councilmembers have on
the revenue options
presented?
What feedback do
Councilmembers have
regarding ballot measures
in November 2023?
What additional
information would
Councilmembers like to
see?
Page 99
Item 3.
3Prior Work Session and Committee Meetings
December 2022 Council Work Session
•Support to continue the work
•Direction to continue analysis of natural gas taxes and fees as emission proxy
•Support to keep all four gap areas moving forward
•Staff presented an option of additional sales tax dedicated to Parks &
Recreation in 2023, tax renewals in 2024 and potential housing, climate, transit
tax in 2025
•Council Finance requested exploring more than one tax measure in 2023 and
more clarity in how funds would be dedicated
•Direction to continue consideration of Large Emitter Tax and ¼ Cent Sales Tax
February & April 2023 Committee Meetings
Page 100
Item 3.
42023 Core Team Timeline
SUSTAINABLE FUNDING TIMELINE
April CFC April Council Work
Session
•Natural gas excise,
larger emitter tax,
franchise fees
•ECCLC Childcare
Ballot Measure
•Overall ballot referral
strategy
November
Elections
June/July
Council Work
Sessions
•Potential draft ballot
specifics –Due by
August
•Overall ballot referral
strategy
Page 101
Item 3.
5Strategic Alignment
Council Priority 3
Advance transit initiatives that remove barriers
Council Priority 18
Make real progress on the road to Zero Waste
Council Priority 27
Access funding for parks (maintenance and
operations, refresh, and new parks)
Strategic Objective 1.1
Increase housing supply and choice
Strategic Objective 2.2
Infrastructure and amenity replacement and
maintenance needs of trails, parks, and
cultural and recreation facilities
Strategic Objective 4.1
Intensify efforts to meet 2030 climate, energy
and 100% renewable electricity goals
Strategic Objective 4.3
Accelerate efforts to achieve 2030 zero
waste goals.
Strategic Objective 6.3
Expansion of, all sustainable modes of travel
with emphasis on growing transit ridership.
Page 102
Item 3.
CITY PRIORITY AREAS
“USES”
Page 103
Item 3.
Identified Funding Needs 7
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 104
Item 3.
Parks and Recreation Infrastructure Replacement
8What Could Dedicated Parks and Recreation Revenue Fund?
Maintain appropriate levels of service
$11M funding represents 2.4% of value
•Replacement value of recreation facilities
$200M+
•Park infrastructure asset value $260M+
Examples:
•Repaving parking lots
•Roofing repairs/replacement, HVAC
replacements, electrical upgrades including LED
•Conversion of courts from asphalt to post-tension
concrete
•Irrigation system renovation, including
replacement of water management equipment
such as flow sensors & controllers
Provide equitable access to parks & recreation
experiences as identified in 2021 Parks and
Recreation master plan.
•Currently 51% of playgrounds are beyond
expected lifespan.
Examples:
•Replace play equipment, changing surfaces from sand to
ADA compliant material
•Repair sections of cracked walkways, bringing walkway
slopes up to ADA standards
•Locker room and restroom upgrades/replacement
•Pedestrian bridge replacements, fencing repairs, water
feature renovations, bike park renovations, pedestrian
lighting replacementPage 105
Item 3.
9Benesch Study: Parks Projected Asset Replacement Need
PARKS ASSET REPLACEMENT BUDGETARY GAP
Page 106
Item 3.
10RaftelisStudy: Recreation Projected Investment Need
RECREATION ASSET REPLACEMENT BUDGETARY GAP •Flooring
•HVAC
•Chillers
•Diving boards
•Plumbing
•Electrical
EPIC
$1.1M
•HVAC
•Interior
•Roof
Rolland Moore
Tennis
Complex
$300K
•Playground
•Slides
City Park Pool
$1.3M
•HVAC
•Roof
•Pool equipment
Mulberry Pool
$1M
Page 107
Item 3.
11Parks and Recreation Gap: $9M –12M
Value of Parks and Recreation
•Environmental –air quality, water, biodiversity
•Social –livability, connection, gathering, health and well-being
•Economic –property value, tourism, sales activity
•Fort Collins system includes over 50 parks, 45 miles of paved trails, and 10
recreation facilities
•Parks IRP is currently funded at $0.75M per year (originally $0.6M in 1993)
•Recreation IRP is currently funded at $0.2M per year
•Deferred needs have been growing
Infrastructure Replacement Plan (IRP) Current State
Page 108
Item 3.
12Sustainable Revenue Summary –Climate, Transit & Housing
Climate Umbrella
Big Move Focus Investment
Target
4 Transit $14.7M
4 Active Modes $1.5M
6 Building Efficiency & Electrification $2.85M
7 Housing Affordability $8-9.5M
13 Electric Vehicles $1.85M
2 & 10 Zero Waste $2M
Total Annual Investments:$31M+
Page 109
Item 3.
13
Sustainable Revenue: Current Climate, Housing & Transit Investments
Climate Umbrella
•Ongoing FC Utilities Climate Investments:
•Energy Efficiency, Customer Renewable and Grid Flexibility programs; $6.6M annually
•EPIC Loan program; up to $2.5M annually in available financing
•Streetlight LED conversion; $1M annually
•Efficiency Works programs (via Platte River budgeting); ~$5M annually
•Ongoing Housing Investments:
•Competitive Process for Affordable Housing Development; $1.5-$3M awarded annually
•From all sources –Federal, City General Fund & CCIP
•Ongoing Transit Investments:
•Building, Operating & Maintaining Routes; $22M annually
•Includes local, federal, grant, and partner funding
OUR IMPACT
Community-wide total
electricity use would be
over 20% higher without
Utilities energy programs
since 2005 Page 110
Item 3.
14Sustainable Revenue: Our Climate Future Investments
Climate Umbrella
Our Climate Future Big Moves
1 -Shared Leadership and Community Partnership
2 -Zero Waste Neighborhoods
3 -Climate Resilient Community
4 -Convenient Transportation Choices
5 -Live, Work and Play Nearby
6 -Efficient, Emissions Free Buildings
7 -Healthy Affordable Housing
8 -Local, Affordable and Healthy Food
9 -Healthy Local Economy and Jobs
10 -Zero Waste Economy
11 -Healthy Natural Spaces
12 -100% Renewable Electricity
13 -Electric Cars and Fleets
•"Allowable Uses" from existing,
community-driven planning
•Centering Equity
•Inclusive of Transit and Housing
funding priorities
Page 111
Item 3.
15
Sustainable Revenue Uses –Climate, Transit & Housing
Climate Umbrella
Improve route frequencies and service resiliency
Transit Master Plan initiatives to increase transit
ridership.
Bus operator resiliency
Remain fare-free
Procure additional buses and increase
operational frequencies
Add new route with 30-minute frequency on
Lemay/Trilby
New southeast micro-transit service
Local match for major capital projects
Unprecedented Federal dollars in grant funding
available to fund 60-80% of large transit projects.
West Elizabeth bus rapid transit
North transit maintenance facility (needed for further
expansion)
Electrification and ultimate zero-emission of fleet
Additional charging infrastructure
North College MAX extension
Mobility hubs
Scale / Accelerate Transform
Big Move 4 –Convenient Transportation Choices: Transit
Estimated investment needed: $14.7M annually Page 112
Item 3.
16
Sustainable Revenue Uses –Climate, Transit & Housing
Climate Umbrella
Big Move 7 –Healthy Affordable Housing
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.
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.
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.)
Scale / Accelerate Transform
Estimated investment needed: $8-$9.5M annually Page 113
Item 3.
Sustainable Revenue Uses –Climate, Transit & Housing
Proposition 123 Funding Breakdown
•Affordable home ownership program
•Programs addressing homelessness
•Local planning capacity program
•Land banking
•Equity financing
•Debt financing
Note: There is no estimate of the amount of local funds from Proposition 123. Funding for Proposition
123 is competitive and there is no guarantee of or entitlement to funding for municipalities.Page 114
Item 3.
18
Big Move 13 –Electric Cars and Fleets
•Support home electrical panel and service
upgrades for EVs
•Public charging strategy, implementation and
maintenance
•Engagement with local cars dealerships to
offer training to sales staff on education and
benefits of EVs
•Transition all Transfort buses to zero emission
vehicles by 2040
•Explore providing incentives for community
members for installation of charging
equipment in homes and businesses
•Explore expansion of level 3 public charging
opportunities for EVs
Scale / Accelerate Transform
Estimated investment needed: $1.85M annually
Sustainable Revenue Uses –Climate, Transit & Housing
Climate Umbrella
Page 115
Item 3.
19Sustainable Revenue Uses –Climate, Transit & Housing
Climate Umbrella
Big Move 6 –Efficient, Emissions Free Buildings
•Expand programs for electrification of space
and water heating
•Explore adding minimum building performance
standards (BPS) for commercial building stock
•Explore requirement for residential energy
disclosure at point of listing/sale
•Support home electrical panel and service
upgrades for electrification
•Explore proactive upgrades of infrastructure
and customer electric equipment to support
building and transportation electrification.
•Explore opportunities to expand grid flexibility
options in residential and commercial
buildings through battery storage and other
solutions
•Explore Utility scale distributed energy
resource solutions (solar and battery
installations)
Scale / Accelerate Transform
Estimated investment needed: $2.65M annually Page 116
Item 3.
20
Sustainable Revenue Uses –Climate, Transit & Housing
Climate Umbrella
Big Move 4 –Convenient Transportation Choices:Active Modes
•Rebates for E-bikes
•Install in-street protected bike lanes and
bicycle and pedestrian crossing
improvements
•Local match to leverage many state and
federal grant opportunities available
Scale / Accelerate Transform
Estimated investment needed: $1.5M annually
•Same strategies with much higher investments
•Grade-separated crossings
Page 117
Item 3.
21
Big Moves 2 & 10 –Zero Waste
•Improving recycling education and removing
barriers to reusing and recycling
•Growing the circular/sharing/reuse economy
•Increasing recycling services through local
waste infrastructure and operational support
•Local waste infrastructure investments
•e.g. potential organics transfer station, etc
Scale / Accelerate Transform
Estimated investment needed: $2M annually
Sustainable Revenue Uses –Climate, Transit & Housing
Climate Umbrella
Page 118
Item 3.
REVENUE MECHANISMS
“SOURCES”
Page 119
Item 3.
23Options
Category Funding
Mechanism Timing Potential Use Annual Revenue
Estimate Resident Annual Impact
Franchise Fee
to 3%Natural Gas Bills Climate $1M
•Council action only –does not require voter
approval
•2% increase. ~ $14/household
Substance Tax 1 to 5% on
Alcohol/MJ/Nicotine TBD $6 to 11M+•$1 to 5 per $100 purchase in Fort Collins
•Visitors also impacted
Utility
Occupation Tax
4.5% on Natural Gas
Bills
Climate
Umbrella $4M •4.5% residential increase per household
•~$32 per residential household
Property Tax 1 to 5 Mills Parks & Rec $4 to 18M+•Residential increase of $21 to $107
•Commercial increase of $87 to $435
Sales Tax Additional ¼ Cent
Dedicated Tax
Climate
Umbrella $10M
•$31 per resident/ $78* per household
•Sales tax on food would remain at 2.25%
•Visitors also impacted
Large Emitter
Tax $51/MT CO2e Climate
Umbrella $5M •N/A to residents
•Two applicable businesses
Total $30M to 49M+•$145 to $231 net annual increase per
household* + impact of substance tax
*Assumes a household size of 2.5 (American Community Survey 2021 1-year estimates, table DP04)
“Potential Use” is highly flexible –each of these revenue mechanisms can be attached to
any of the prioritiesPage 120
Item 3.
24Natural Gas Franchise Fee Increase
2019-2022 AVG
Revenue Baseline
2022 Revenue
Baseline
Current Fee Rate –1.07%$ 515,905 $ 727,633
Proposed Rate –3.00%$ 1,446,462 $ 2,040,093
Potential New Revenue for Climate Initiatives
(estimated)$ 930,557 $ 1,312,460
Considerations:
•Does not require voter approval
•Current franchise fee of 1.07% generates ~$445k/yr to General Fund
•New portion of revenue could be allocated for a variety of climate uses
•Peer communities charge a 3% Franchise Fee
•City’s legal agreement allows up to a 3% fee
Page 121
Item 3.
25Natural Gas Franchise Fee Increase
*Note: Impact on Contract accounts not evaluated
Considerations:
•Already appears as line item on customer bills
•City could adopt a rebate program to provide relief to low-income customers
MONTHLY ON-BILL FRANCHISE FEE COST
Customer Type
2022
Average
Monthly
Bill
Current Avg.
Monthly
Franchise Fee
1.07%
Total Avg.
Monthly
Franchise Fee
3.00%
Net Avg.
Monthly
Franchise Fee
Increase
3.00%
Net Annual
Franchise Fee
Cost Increase
Residential $ 58.19 $ 0.62 $ 1.75 $ 1.13 $ 13.56
Commercial/
Industrial $ 344.02 $ 3.68 $ 10.32 $ 6.64 $ 79.69
Page 122
Item 3.
26Substance Tax
Category Substance Funding Mechanism Annual Revenue
Estimate Household Impact
Additional (Excise)
Sales Tax Alcohol*1% Additional Tax $780K+•$1 per $100 purchase in Fort Collins
•Visitors also impacted
Alcohol*3% Additional Tax $2M+•$3 per $100 purchase in Fort Collins
•Visitors also impacted
Alcohol*5% Additional Tax $4M+•$5 per $100 purchase in Fort Collins
•Visitors also impacted
Marijuana 1% Additional Tax $900K •$1 per $100 purchase in Fort Collins
•Visitors also impacted
Marijuana 3% Additional Tax $3M •$3 per $100 purchase in Fort Collins
•Visitors also impacted
Marijuana 5% Additional Tax $5M •$5 per $100 purchase in Fort Collins
•Visitors also impacted
Nicotine**1% Additional Tax $340K+•$1 per $100 purchase in Fort Collins
•Visitors also impacted
Nicotine**3% Additional Tax $1M+•$3 per $100 purchase in Fort Collins
•Visitors also impacted
Nicotine**5% Additional Tax $2M+•$5 per $100 purchase in Fort Collins
•Visitors also impacted
*Liquor store estimate only
**Cigarette estimate only
Page 123
Item 3.
27Tax Comparisons
Taxing Authority Cigarettes Other Tobacco Alcohol Marijuana
State (Excise)$1.94 (per pack)---
State 2.90%2.90%2.90%15.00%
County 0.0%0.80%0.80%0.80%
City 3.85%3.85%3.85%3.85%
Total 6.75% + excise tax 7.55%7.55%19.65%
Taxing
Authority Fort Collins Boulder Thornton Aurora Denver Commerce
City Berthoud Englewood
State 15.00%15.00%15.00%15.00%15.00%15.00%15.00%15.00%
County 0.80%1.19%0.75%1.00%0.00%0.75%0.80%0.25%
City 3.85%3.86%3.75%3.75%4.81%4.50%4.90%3.80%
City Additional 0.00%3.50%5.00%5.00%5.50%7.00%7.00%10.30%
Total*19.65%23.55%24.50%24.75%25.31%27.25%27.70%29.35%
MARIJUANA SALES TAX RATE COMPARISON
*Does not include other taxes (RTD, cultural, etc.)
TOTAL SALES TAX RATES
Page 124
Item 3.
28Utility Occupation Tax
Considerations:
•Requires voter approval
•Scalable rate increase based on Council/voter preference
•Levied on a natural gas provider for the taxable privilege of delivering natural gas to
consumers within City limits
•Boulder voters passed similar with 70% approval
•Would compound with a franchise fee for consumers
•Billing structure can provide relief to low-income customers
Customer Type
Example
Rate
Increase
2022 AVG
Monthly Bill
Increase in
Monthly Bill
Active
Accounts
Annual
Revenue
Residential 4.5%$58.19 $2.62 55,112 $1,731,906
Commercial/Industrial 4.5%$344.02 $15.48 4,239 $787,565
Contract (Transport)4.5%$6,027.53 $271.24 355 $1,153,969
Total Annual New Revenue $3,673,440
Page 125
Item 3.
29Property Tax
Category Funding Mechanism Annual Revenue
Estimate Household Impact
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
Page 126
Item 3.
30Large Emitter Tax
Entity Total Reported Emissions (MT CO2e)
2024 Forecast
Potential Revenue
($51/MT)
Broadcom 57,400 MT $2.9M
Anheuser Busch 37,474 MT $1.9M
Total 94,874 MT $4.8M
Considerations:
•Requires voter approval
•Potential to accelerate de-carbonizing of two entities currently emitting more than the EPA
reporting threshold (25k MT CO2e/year)
•Revenue estimate uses current “Social Cost of Carbon” ($51/MT CO2e)
•Could change at federal level
•Diminishing returns –revenue declines as emissions decline
•Tax structure could be adjusted –apply only to net emissions above EPA reporting
threshold
Page 127
Item 3.
31Projected Emissions
60
57
54 53
50 51 49 48 48 47
42 44
40 38 37 35 33 32 30 28 27 25
-
10
20
30
40
50
60
70
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031ThousandsAnheuser Busch Annual CO2e Emissions
Metric Tons CO2e Projected Reductions Target
25K MTons CO2e
Page 128
Item 3.
32Projected Emissions
306
202
172 183
140
125
79 70 61 52 43 34 25
-
50
100
150
200
250
300
350
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028ThousandsBroadcom Annual CO2e Emissions
Metric Tons CO2e Projected Reductions Target
25K MTons CO2e
Page 129
Item 3.
33Projected Revenue
$4.98
$4.44
$3.89
$3.35
$1.53 $1.45 $1.36
$-
$1
$2
$3
$4
$5
$6
2024 2025 2026 2027 2028 2029 2030MillionsProjected Large Emitter Tax Revenue
Revenue anticipated to
decline under reporting
threshold after 2030
Page 130
Item 3.
34Options
Category Funding
Mechanism Timing Potential Use Annual Revenue
Estimate Resident Annual Impact
Franchise Fee
to 3%Natural Gas Bills Climate $1M
•Council action only –does not require voter
approval
•2% increase. ~ $14/household
Substance Tax 1 to 5% on
Alcohol/MJ/Nicotine TBD $6 to 11M+•$1 to 5 per $100 purchase in Fort Collins
•Visitors also impacted
Utility
Occupation Tax
4.5% on Natural Gas
Bills
Climate
Umbrella $4M •4.5% residential increase per household
•~$32 per residential household
Property Tax 1 to 5 Mills Parks & Rec $4 to 18M+•Residential increase of $21 to $107
•Commercial increase of $87 to $435
Sales Tax Additional ¼ Cent
Dedicated Tax
Climate
Umbrella $10M
•$31 per resident/ $78* per household
•Sales tax on food would remain at 2.25%
•Visitors also impacted
Large Emitter
Tax $51/MT CO2e Climate
Umbrella $5M •N/A to residents
•Two applicable businesses
Total $30M to 49M+•$145 to $231 net annual increase per
household* + impact of substance tax
*Assumes a household size of 2.5 (American Community Survey 2021 1-year estimates, table DP04)
“Potential Use” is highly flexible –each of these revenue mechanisms can be attached to
any of the prioritiesPage 131
Item 3.
35Scenario A
Category Funding
Mechanism Timing Potential Use Annual Revenue
Estimate Resident Annual Impact
Franchise Fee
to 3%Natural Gas Bills 2023 Climate $1M
•Council action only –does not require voter
approval
•2% increase. ~ $14/household
Substance Tax 1 to 5% on
Alcohol/MJ/Nicotine 2023 TBD $10M •$1 to 5 per $100 purchase in Fort Collins
•Visitors also impacted
Property Tax 5 Mills 2023 Parks & Rec $18M+•Residential increase of $107
•Commercial increase of $435
Total $29M+•$121 net annual increase per household* +
impact of substance tax
Page 132
Item 3.
36Scenario B
Category Funding
Mechanism Timing Potential Use Annual Revenue
Estimate Resident Annual Impact
Franchise Fee
to 3%Natural Gas Bills 2023 Climate $1M
•Council action only –does not require voter
approval
•2% increase. ~ $14/household
Substance Tax 1 to 5% on
Alcohol/MJ/Nicotine 2024 TBD $10M •$1 to 5 per $100 purchase in Fort Collins
•Visitors also impacted
Property Tax 1 to 5 Mills 2023 Parks & Rec $18M+•Residential increase of $107
•Commercial increase of $435
Sales Tax Additional ¼ Cent
Dedicated Tax 2023 Climate
Umbrella $10M
•$31 per resident/ $78* per household
•Sales tax on food would remain at 2.25%
•Visitors also impacted
Total $39M+•$199 net annual increase per household* +
impact of substance tax
*Assumes a household size of 2.5 (American Community Survey 2021 1-year estimates, table DP04)
Page 133
Item 3.
37
Scenario A
Page 134
Item 3.
38Council Direction
QUESTIONS:
What feedback do
Councilmembers have on
the revenue options
presented?
What feedback do
Councilmembers have
regarding ballot measures
in November 2023?
What additional
information would
Councilmembers like to
see?
Page 135
Item 3.
Page 136
Item 3.
40
Backup
Page 137
Item 3.
412023 Engagement Team Timeline
SUSTAINABLE FUNDING ENGAGEMENT TIMELINE
March April
•Parks & Recreation
(3/22)
•Natural Resources
(3/22)
May
•Affordable Housing (5/4)
•Super Issues (5/22)
•Transportation (4/19)
•Economic Advisory
(4/19)
•Natural Resources
Page 138
Item 3.
42Fort 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
$4,500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Millions
City Net Taxble City % of County Sales City Pop % of County
(revenue trends and comparisons)
FORT COLLINS NET TAXABLE SALES
Page 139
Item 3.
Election Timeline Options:
43Election Timeline Options
2023 2024 2025 2026
November November NovemberNovember
•Street Maintenance and Community Capital Taxes expire Dec. 31, 2025
Parks & Rec.Renewals Climate Portfolio –
Climate, Housing, Transit
Page 140
Item 3.
44
Budget efficiencies over time
Source: Ongoing Offer Narratives
2023-2024 BFO Cycle –Ongoing Offers
•Digital processing of dozens of city services and functions
•Reduction in total cost of ownership of City computer hardware
•Decrease in injuries leading to decreased cost of Workers’ Comp
•Fleet management improvements
•City budget application was brought in-house, saving $50,000+ per year
•Pricing discounts on telephony for circuit access and long-distance costs
•FCTV updated closed captioning cost lowered from $20/hr to $0.16/hr
•Re-assignment of certain police functions to non-sworn positions
•Reduction in 911 call times and costs through Colorado Regional Information Sharing Project
•Construction of Law Enforcement Training Center saves up to $90,000 per year
•East-side Park Maintenance Shop provides more efficient service with fewer cross -town tripsPage 141
Item 3.
45Budget efficiencies over time
Source: 2020 KFCG Annual Report
2020 KFCG Annual Report:
•Lower cost on building rentals and travel time by moving community meetings to virtual forums
•Lower costs for Parks and Utilities and leading to an early project completion of Horsetooth Outlet
•Elimination of superintendent position at City Park Nine golf course
•Reduced printing and mailing of the Recreator, saving nearly $100,000
•Cross-department collaboration on capital projects leading to significant cost savings
•CDNS electronic conversion for final approval and recording process, eliminating paper and mylar
•Online roofing permit processing saves staff from ~500 permits/month
•Smart Irrigation Controllers for 48 city sites plus 57 medians/streetscapes
•GIS mapping of Parks snow removal routes and irrigation systems drove fuel and labor savings
•GIS mapping of street sweeping operations improves air quality and saves cost
Page 142
Item 3.
462022 Long-term Financial Plan -Baseline
Page 143
Item 3.
47
2022 Long-term Financial Plan
Scenario: New Revenue Sources -Gap Closure
•Additional 0.25% Sales Tax
(~ $9M per year) starting in
2023.
•New Property Tax Mill
assessed (~ $4M per year)
starting in 2023.
•Implement New
Maintenance and
Improvement use fee to
support Lifecycle projects
(builds up to ~ $7M per year)
in 2026 to offset gap in
ongoing maintenance
needs.
Page 144
Item 3.
48Community Emissions Pathways to 2030 GHG Goal
Page 145
Item 3.