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Home My WebLink AboutMinutes - Finance Committee - 02/26/2009 -Finance Administrationit0215N.MasonFortColLins 970.221.6782 -fax fcgov corn Council Finance Committee Minutes 02/26/09 10:30 a.m.12:00 p.m. Council Attendees:Mayor Doug Hutchinson,Mayor Pro Tem KeLLy OhLson,CounciLmember Ben ManveL City Staff Attendees:Darin Atteberry,Mike Freeman,Chuck Seest, Heather Shepherd,John Voss,Jeremy Reese Others:Maury Dobbie,President,and Mike MascioLa,Vice President of NCEDC;John Knezovich,resident & Library District Board Member Approval of the Minutes from the January meeting. Ben Manvel moved to approve the January minutes with corrections to the numbers in RMI2 funding section,and Doug Hutchinson seconded the motion.The January minutes were approved as corrected. NCEDC (Northern Colorado Economic Development Corp.)Presentation Maury Dobbie,President of NCEDC,presented information on current trends in corporate business location. •Current trend for new company expansion is not to relocate current employees with the expansion to a new site.Only relocate a few key management personnel. •As a result,many jobs would be available to local citizens. Economic Impacts 9 companies creating 1,300 FCjobs 95%jobs are filled by local citizens $104.3 million in wages annually. Mike MascioLa,Vice President of NCEDC,told the Committee that the new business ‘prospect pipeline’is still busy with 20 active and 64 total companies considering Northern Colorado as a site for expansion. Kelly Ohlson asked if Fort Collins is open to the idea of locating environmentally friendly ‘big box stores here.Darin Atteberry stated the City would consider such projects,and Mike MascioLa stated that NCEDC would verify any plans of that type with the City. 0 4~gLL~s Local Trends Whats Hot: •Business Retention •Renewable Energy •Back Office Operations •Data Farms &Data Centers •Life Sciences/Healthcare Mike Mascio[a said there is a disadvantage in Fort Collins for any company requiring over 60,000 sq ft of space due to lack of large office parks,and some business prospects are lost because of this factor. Kelly Ohlson asked if locating a business in Fort Collins,Windsor,or Loveland is roughly equal as far as driving distance.Darin said the importance is due to the fact that the City of Fort Collins layout is based on driving distances,so it is advantageous for businesses to locate within the City and not in another town near by. NCEDC Focused Efforts •Continued Strong Emphasis on Business Retention —partnering with City and Chamber of Commerce •Stay Aggressive on Attraction Preparing for the Recovery..,not wasting a good crisis and having the region in a position to respond when the Economic Recovery occurs. Projects (market research,supply chain analysis) Continued Outbound Marketing Financial Services Summary 2009 Jeremy Reese reviewed end of year 2008 sales tax revenue: Sales Tax Revenue •Total sales tax collections ended 0.4%higher than 2007. •Factors contributing to the growth in 2008: Restaurant Sales (+5.5%) Food Stores (+3.9%) •Retail categories that will challenge growth in 2009: Auto Dealers &Service Stations were down 6.9%in 2008. Home Furnishings &Consumer Electronics ended 2008 with a decrease of 0.7%. Use Tax Revenue •Total use tax collections decreased 18.0%from 2007. •Use tax from building permits and auto registrations declined sharply in the fourth quarter of 2008. Building permit use tax ended down 30.5%for the year. Automobile use tax decreased 12.0%in 2008. r Fd?t CoLLins •Auto sales and construction activity are expected to continue to slow,impacting use tax collections in 2009. Sales Tax Projections •2009 sales tax collections are projected to increase 1.4%over collections in 2008. •The revenue forecast model will be updated with current data every quarter in 2009. Investment earnings are going to be considerably less this year due to low rate environment. Other Major Revenue Sources: Property Taxes: •Collected $16.1M in 2008.Represents 10.9%increase over 2007 collections which is consistent with the amount budgeted. •2007 was a reappraisal year;the assessed valuation increased by 9.0%.Then property tax levy is collected in 2008. Payments in Lieu of Taxes (PILOT): •Collected $6.8M in 2008. John Voss updated the Committee on the General Fund Expenses: •Expenses well under budget Department average 91%of budget spent Average in recent years 87% •Expenses increased 3.2%in 2008 Most significant increase was in Facility Operations,due to utility costs and major maintenance projects Mike Freeman explained that a better process for tracking and ensuring that encumbrances are spent (by various departments)is in place which has helped spending and budget come out more equally on BFO and Council approved projects. In reference to the chart showing General Fund expenditures,the Mayor asked if the correct amount spent on ‘people’is about 70%.Chuck Seest and John Voss both agreed that 70%would be a good estimate after taking into account that the payment to PFA combined with the transfers to other City funds (Recreation,Transportation & Transfort)also have a significant percentage of their budgets dedicated to personnel costs. Due to time constraints,Mike Freeman suggested that discussion on this topic be continued at the March meeting. The meeting was adjourned at 12:00PM.