HomeMy WebLinkAboutMinutes - Finance Committee - 09/05/2024 -
Finance Administration
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Council Finance Committee Hybrid Meeting
CIC Room / Zoom
September 5, 2024
4:00 - 6:00 pm
Council Attendees: Kelly Ohlson, Emily Francis, Tricia Canonico
Staff: Kelly DiMartino, Tyler Marr, Travis Storin, Ginny Sawyer, Jenny Lopez Filkins,
Travis Walker, Cory Snowdon, Lawrence Pollack, Joe Wimmer, Dave Lenz,
Brad Buckman, Peggy Streeter, Mallory Gallegos, Monica Martinex, Jo Cech,
Josh Birks, LeAnn Williams, Jeff Rochford, Adam Halvorson, Rachel Rogers,
Randy Bailey, Nina Bodenhamer, Wendy Bricher, Zack Mozer, Max Valdez,
Carolyn Koontz
Other: Kevin Jones, Chamber
Meeting called to order at 4:00 pm
Approval of minutes from July 3, 2024, and the August. 1, 2024 Council Finance Committee Meetings.
Tricia Canonico made a motion to approve the minutes as presented. Kelly Ohlson seconded the motion.
Approved via roll call
A. Status of Fund Balances
Travis Storin, CFO
EXECUTIVE SUMMARY:
The attached presentation gives a status of fund balances and working capital. Fund balances are primarily
considered for funding one-time offers during the Budgeting for Outcomes process. To a lesser extent, available
monies are also used to fund supplemental appropriations between BFO cycles.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
General update to Council Finance Committee
BACKGROUND/DISCUSSION
To aid in answering the question of what funding is available to support emerging issues and initiatives in the
next budget cycle. In each fund the balances are shown vertically by the accounting classifications. The
amounts are then additionally categorized into Appropriated, Available with Constraints, and Available for
Nearly Any Purpose.
Appropriated, Minimum Policy or Scheduled is comprised of minimum fund balances established by policy, funds
from the 2023 balance that have been appropriated in 2024, and amounts for projects specifically identified by
voters. An example of the latter is Community Capital Improvements Plan.
Available with Constraints are those balances available for appropriation but within defined constraints. An
example are donations received through City Give. They are restricted for the purpose of the donation, but still
available for appropriation.
Available for Nearly Any Purpose are balances that are available for appropriation at the discretion of the City
Council.
DISCUSSION / NEXT STEPS
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
General update to Council Finance Committee
Kelly Ohlson; Benefits Fund - pretend that is called for a 7% increase in employee contributions, but we are able
to do 5.5% by gradually buying down the amount in reserves (which I support doing). We can use our reserves
to offer a 5.5% increase instead of 7% increase. Do we let employees know we are doing this?
Kelly DiMartino; We do communicate to employees about their role in keeping those investments and costs
lower both for the organization and for employees.
Kelly Ohlson; and that we are using reserves slowly and appropriately in a prudent manner so that their rate
increases are as high.
Kelly DiMartino; and that we are doing that in a gradual and methodical way. There are always variables that
comes into play.
Emily Francis; No questions
Tricia Canonica; No questions
B. 2024 Annual Adjustment Ordinances
Lawrence Pollack, Budget Director
SUBJECT FOR DISCUSSION
First Reading of Ordinance No., 2024, Making Supplemental Appropriations in Various City Funds.
First Reading of Ordinance No., 2024, Appropriating Prior Year Reserves and Authorizing Transfers in Various
City Funds.
EXECUTIVE SUMMARY
The purpose of these Annual Adjustment Ordinances is to combine dedicated and unanticipated revenues or
reserves that need to be appropriated before the end of the year to cover the related expenses that were not
anticipated and therefore, not included in the 2024 annual budget appropriation. The unanticipated revenue is
primarily from fees, charges, rents, contributions and grants that have been paid to City departments to offset
specific expenses.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
• What questions or feedback does the Council Finance Committee have on the 2024 Annual Adjustment
Ordinances?
• Does the Council Finance Committee support moving forward with bringing the 2024 Annual Adjustment
Ordinances to the full City Council on the Consent Agenda?
BACKGROUND/DISCUSSION
These Ordinances appropriates unanticipated revenue and prior year reserves in various City funds and
authorizes the transfer of appropriated amounts between funds and/or projects. The City Charter permits the
City Council to appropriate unanticipated revenue received as a result of rate or fee increases or new revenue
sources, such as grants and reimbursements. The City Charter also permits the City Council to provide, by
ordinance, for payment of any expense from prior year reserves. Additionally, it authorizes the City Council to
transfer any unexpended appropriated amounts from one fund to another upon recommendation of the City
Manager, provided that the purpose for which the transferred funds are to be expended remains unchanged;
the purpose for which they were initially appropriated no longer exists; or the proposed transfer is from a fund
or capital project account in which the amount appropriated exceeds the amount needed to accomplish the
purpose specified in the appropriation ordinance.
If these appropriations are not approved, the City will have to reduce expenditures even though revenue and
reimbursements have been received to cover those expenditures.
The table below is a summary of the expenses in each fund that make up the increase in requested
appropriations. Also included are transfers between funds and/or projects which do not increase net
appropriations, but per the City Charter, require City Council approval to make the transfer. A table with the
specific use of prior year reserves appears at the end of the AIS.
Funding Additional
Revenue
Prior Year
Reserves Transfers TOTAL
General Fund $801,293 $292,582 $0 $1,093,875
Cultural Services Fund 7,400 291,064 5,630 304,094
Capital Projects Fund 243,300 0 21,300 264,600
Transportation Services Fund 1,429,500 1,200 0 1,430,700
Self-Insurance Fund 970,239 0 0 970,239
Golf Fund 1,500 25,130 0 26,630
Cemeteries Fund 0 207,870 0 207,870
801-URA - Prospect South TIF District Fund 0 1,873,927 0 1,873,927
803-URA - Mall Fund 0 17,804 0 17,804
Transportation CEF Fund 0 21,300 0 21,300
GRAND TOTAL $3,453,232 $2,730,877 $26,930 $6,211,039
A. GENERAL FUND
1. EPS - Weld County Reimbursement for CERT Purchase
City's EPS applied to a FEMA funded program ran through the State's Northeast All Hazard Region. Weld
County serves as the fiscal agency for the State's Northeast All Hazard Region, reporting all FEMA funds
used for selected projects on its financials (Weld County = grant recipient). The workings of the program
provide Weld reimbursing the City in upwards of $4,998 for emergency related equipment/supplies. Based
on the City not deemed as a grant recipient of FEMA funds, the $4,998 in funds to be reimbursed by Weld
are not grant funds. City's EPS will spend the $4,998 in 2024.
Unanticipated $4,998
2. Municipal Court - Constitutional Requirements
This request is to add additional funding for Court Appointed Defense Counsel attorneys and interpreters
to the Municipal Court's 2024 budget. The Municipal Court's enforcement caseload has increased 21% in
2024 over 2023 case filings, and 33% over case filings in 2022. The number of scheduled interpreter
hearings has doubled in 2024 as compared to 2023 (90 in 2023, 201 in 2024 through July 31st of each
year). Because of these caseload and hearing increases, the Court needs additional funds to continue to
provide these constitutionally required services to Court defendants.
3. Municipal Court - Contractual Obligations
This request is to add funding to the Municipal Court's 2024 budget to pay for Jail Services. Larimer County
and the City of Fort Collins annually review the intergovernmental agreement (IGA) relating to the City's
use of the Larimer County Jail for municipal defendants and bonding services. The agreement includes the
costs for bed spaces, bonding services, and in-custody video hearings held three (3) a week to meet new
State Law requirements. All of the costs associated with these services and this contract have increased.
The Court and the City Attorney's Office work closely with the Larimer County Jail to review and update
procedures and apply efficiencies where possible.
4. Fort Collins Police Services (FCPS) has received revenue from various sources. A listing of these items
follows:
a. $140,691 – Police Miscellaneous Revenue: Police Services receives revenue from the sale of
Police reports along with other miscellaneous revenue, like restitution payments, evidence
revenue and SWAT training.
b. $34,800 – 2023/2024 BATTLE Grant Supplemental (Beat Auto Theft Through Law Enforcement): 'The
Property Crimes division of Police Services has been awarded an additional $34,000 on top of the
original $18,000 grant to fund additional overtime to help investigate auto theft in Northern
Colorado.
c. $29,387 - 2024 CRISP Server Storage Upgrade: Police Services needed more server space to allow
the CRISP system to function properly. This clean up appropriation is equal to Larimer County's
contribution to the server upgrade.
d. $29,517 - 2020 JAG Grant Supplemental Award: Larimer County is the Recipient of the JAG grant
and at the end of the 3-year grant period in 2023, the county had excess grant funds to award
and instead of sending them back to DOJ, the city accepted the funds to offset overtime expenses
in 2023 for the Drug Task Force for drug investigations
e. $43,750 - 2024 Police Radio Used Radio Sale: Police Services sold off old radios that are no
longer being used and the revenue will be used to purchase new radios.
f. $265,534 - Police Reimbursable Overtime: Police Services help schedule security and traffic
control for large events. Since these events are staffed by officers outside of their normal duties,
officers are paid overtime. The organizational who requested officer presence and then billed for
the costs of the officers' overtime. FCPS partners with Larimer County to staff events at The
Ranch. Police receives reimbursement from Larimer County for officers’ hours worked at Ranch
events.
g. $69,684 – 2024 Police School Resource Officers Overtime: Police Services have a contract with Poudre
School District to provide Officers on location at a majority of the schools for safety and support.
The school district pays Police Services based on a predetermined contract amount and also
partially reimbursing for overtime incurred. This request is for the previously billed overtime and
anticipated overtime for the remaining year.
h. $8,912 - 2024 DUI Enforcement: Proceeds that have been received for DUI enforcement.
i. $1,847 - ICAC SFY 2023-24 Grant: Cyber Crimes received a supplemental award of 1,847 to help
fund additional travel for training purposes.
j. $19,000 - 2024-2025 HVE Grant: The Pollice Traffic Unit was awarded $19,000 to help fund Police
overtime expenses in order to monitor DUI compliance on targeted enforcement days.
TOTAL APPROPRIATION
FROM: Unanticipated Revenue (ICAC SFY 2023-24 Grant) $1,847
FROM: Unanticipated Revenue (2024-2025 HVE Grant) $19,000
Total: $643,122
FOR: Police Miscellaneous Revenue $140,691
FOR: Help prevent auto theft $34,800
FOR: CRISP server upgrades $29,387
FOR: Investigate illegal drug use and sales $29,517
FOR: Purchase of communication equipment $43,750
FOR: Police Reimbursable Overtime for events $265,534
FOR: Overtime for School Resource Officers $69,684
FOR: DUI enforcement $8,912
FOR: Help prevent Internet Crimes Against Children $1,847
FOR: Monitor DUI compliance $19,000
Total: $643,122
5. Digital Inclusion - Connexion Discount Program
Dedicated revenue from Fort Collins Connexion's PILOT (Payment in Lieu of Taxes) are paid to the General Fund
to support the City's Digital Inclusion Program. The Digital Inclusion Program reimburses Connexion for
customers enrolled in the income-qualified digital inclusion discount program. Increased enrollment in the
program will result in the discount reimbursement to exceed budget at year-end. PILOT revenues to the General
Fund are projected to cover the increase in discounted customers and is requested to be appropriated in 2024.
6. Radon Kits
Environmental Services sells radon test kits at cost as part of its program to reduce lung-cancer risk from
in-home radon exposure. This appropriation recovers kit sales revenue for the purpose of restocking
radon test kits annually.
7. Work for Others and Program Fees for Conflict Transformation Works
The Conflict Transformation Works (CTW) program earns revenue from 2 main sources: providing
workplace mediation for other City Departments and charging fees to the youth who are involved in the
conflict programming and resolution. These revenue dollars primarily support the programming costs. We
are requesting appropriation of Mediation revenue of $3,000 ($1,462.50 has been received in 2024 and
the remaining $1,527.50 is projected to be earned in 2024) and fee revenue of $2,600 ($1,620 has been
received in 2024 and the remaining $980 is projected to be earned in 2024).
8. Restorative Justice Grant Award
A grant in the amount of $40,428 was awarded from the Colorado Division of Criminal Justice Juvenile Diversion
fund for the continued operations of Restorative Justice Services programs that provide a community alternative
to the justice system for youth who commit crimes in Fort Collins. No match is required, and it is a reimbursable
grant. Grant period is July 1, 2024 - June 30, 2024. This grant helps fund youth referred from the 8th Judicial
District Attorney's Office or referred in lieu of a summons to that office. Since 2004, the City has received grant
funding for Restorative Justice Services from this grant funding agency.
9. Land Bank Operational Expenses
This request is intended to cover expenses related to the land bank property maintenance needs for 2023. Since
expenses vary from year to year, funding is requested annually mid-year to cover these costs. Expenses in 2023
include general maintenance of properties, raw water and sewer expenses, electricity, repairs, and other as
applicable.
10. Manufacturing Equipment Use Tax Rebate
Finance requests the appropriation of $97,918 to cover the amount due for the 2023 Manufacturing
Equipment Use Tax Rebate program as established in Chapter 25, Article II, Division 5, of the Municipal Code.
B. CULTURAL SERVICES & FACILITIES FUND
1. Pianos About Town Grants
The purpose of this item is to appropriate prior year grant funds from the Bohemian Foundation to Art in Public
Places for the Pianos About Town program. Cultural Services received grants in 2017, 2018 and 2020 totaling
$128,414 and those funds were never appropriated. This item seeks to ensure that the funding is correctly and
legally budgeted and accounted for.
2. Creative District Grant Funding
The purpose of this item is to appropriate current and prior year grant and miscellaneous funds for the activities
of the Downtown Fort Collins Creative District in the amount of $170,050. Of $185,905 in total funding awarded
to the Creative District since it started in 2014, $15,855 has been appropriated. This activity will have a net
neutral impact on the City's bottom line and is required by City Charter and will ensure that the funding is
correctly and legally budgeted and accounted for.
3. Southridge Golf Irrigation Project APP contribution (refer to item G3)
Ordinance numbers 100 & 101, to be reviewed and passed by Council on August 20, 2024, should have included
a contribution to Art in Public Places in the amount of $5,630. This is based on the amount of $563,000 for the
irrigation system replacement at Southridge Golf Course.
C. CAPITAL PROJECTS FUND
1. King Soopers 146 -- Midtown Gardens Marketplace Payment-In-Lieu (Drake and College
Intersection)
As part of the development agreement for King Soopers 146 -- Midtown Gardens Marketplace at the northwest
corner of Drake and College, the developer's traffic study shows an impact to the College Avenue and Drake
Road intersection that would have required the construction of an eastbound to southbound right turn lane
from Drake Road to College Avenue. In-lieu of the developer constructing this right turn lane, the development
agreement required the payment of $243,300 to the City as part of the College and Drake Capital Project. The
Engineering Department is currently designing the Drake and College intersection improvement.
2. Union on Elizabeth Payment-In-Lieu (W. Elizabeth St.; refer to item K1)
The City received a payment in lieu of construction from the Developer of the Union on Elizabeth project. The
payment was for required roadway frontage improvements of W. Elizabeth St., per their development
agreement. This payment was collected in 2018 and deposited into the Transportation Capital Expansion Fee
Fund.
D. TRANSPORTATION SERVICES FUND
1. Open Streets Vendor Fees
Open Streets is an annual FC Moves event that promotes active modes of transportation and invites folks to
experience a street without cars. At Open Streets, participants can expect 1-2 miles of car-free, family-friendly
streets. Participants are encouraged to Ride the Route and explore areas called “Activity Hubs”- temporary
clusters of activity provided by local businesses and organizations. Vendors for Open Streets are charged $50 if
they are a non-profit, $100 if they are a private business. For our Fall 2024 event, we have 38 private
businesses and 10 non-profits already signed up as vendors, in addition to 10 food
trucks.
Our request includes $1,200 in vendor fees from 2023 that were not appropriated (so this would be coming
from Transportation Reserves), $4,000 in fees that have been collected to date in 2024, and a projection of
another $500 we expect to collect for the remainder of 2024. It is important that we are able to offset our
costs with these fees, since our operating budget is not large enough to support this event without incoming
revenue.
2. Spin Annual Payment
Per the contract between the City and Spin, Spin pays an annual fee of $10,000. These funds can be used at the
City's discretion, and typically are used for projects related to the Spin program. In 2024, funds were used to
install bike/scooter boxes for better parking options, and to support the Which Wheels Go Where project to
update City code regulating what types of micromobility can be used on what facilities.
3. Streets Department Work for Other Program
The Planning, Development and Transportation Work for Others program is a self-supported program for all
“Work for Others” activities within Streets. Expenses are tracked and billed out to other City departments,
Poudre School District, CSU, CDOT, Larimer County, developers and other public agencies. The original budget of
$3.2M was an estimate based on prior years budget with allowed growth rate. Due to unanticipated projects
and equipment/parts needs, and higher cost of materials, additional funding of $715K is requested to cover
projects through the end of 2024. Revenue for performing the work will offset the expense (expense will not be
incurred if revenue is not received).
4. Traffic Department Work for Other Program
The Planning, Development and Transportation Work for Others program is a self-supported program for all
“Work for Others” activities within Traffic. Expenses are tracked and billed out to other City departments,
developers and other public agencies. The original budget of $752K was an estimate based on prior years budget
with allowed growth rate. Due to unanticipated projects and equipment/parts needs, and higher cost of
materials, additional funding of $700K is requested to cover projects through the end of 2024. Revenue for
performing the work will offset the expense (expense will not be incurred if revenue is not received).
E. SELF INSURANCE FUND
1. Self-Insurance Fund Insurance expenditures
City insurance premiums and claim settlements are projecting to exceed the 2024 budget within the Self
Insurance Fund. 2024 Fund revenues in the amount of $970,239 are available for appropriation to cover excess
insurance expenditures. Self-Insurance Fund reserves exceed the City's target reserve level and surplus revenues
are not needed to contribute to fund balance at year end.
F. CONSERVATION TRUST FUND
1. Correct lapsing to non-lapsing ORD 33 Fossil Creek Trail Spur Project
Ordinance #33, adopted by Council on March 19, 2024, should have been non-lapsing. This was not clearly
indicated in the AIS, so the amount needs to be moved from a lapsing to a non-lapsing business unit since this
is for the Fossil Creek Trail Spur Project.
G. GOLF FUND
1. Golf Course Superintendent Association of America (GCSAA) Grants
First Green GCSAA Grants (Golf Course Superintendent Association of America) were awarded in early 2024 to
all three golf courses for Poudre School District community outreach. With these grants, we engaged with STEM
(Science, Technology, Engineering and Mathematics) students and taught them about how it applies to a golf
course. We've received $1,500 for these grants.
2. City Park 9 Pump station repairs
The City Park 9 Pump Station is showing signs of imminent failure and will need to be replaced prior to the 2025
season in order to maintain the current level of service provided to its patrons. Without this station, irrigation
of the course is not possible. In 2024, repairs were made in order to get the station through the end of the
season, but if the pump were to fail in 2025, it would lead to subpar course conditions and reductions in rounds
revenue. These repairs take around 8-12 weeks and need to be completed prior to the start of the 2025
irrigation season in early March. Total cost of these repairs are estimated at $25,130.
3. Southridge Golf Irrigation Project APP contribution (refer to item B3)
Ordinance numbers 100 & 101, to be reviewed and passed by Council on August 20, 2024, should have included
a contribution to Art in Public Places in the amount of $5,630. This is based on the amount of $563,000 for the
irrigation system replacement at Southridge Golf Course.
H. CEMETERIES FUND
1. 149 Grandview repairs
The Parks Cemeteries division manages a rental house at 149 Grandview that is in desperate need of repairs due
to missed inspections. These repairs include gutter cleaning/repairs, deck repairs/painting, roof repairs, window
sealing, and more are estimated at $50,000.
2. Grandview pump station electrical repairs/upgrades
In April Cemeteries made necessary electrical repairs/upgrades to the Grandview pump station due to an
outdated source that was not up to code and unsafe. The total cost of these repairs is $34,720.
3. Purchase of Backhoe in 2023 invoiced in 2024
Cemeteries was approved for the purchase of a Backhoe during the 23-24 budget cycle (Offer 57.2). PO
9240355 was issued for this purchase 2/23/2023; however, it was not delivered until February 2024. This PO
was missed during the PO Carryforward exercise. We are asking for $123,150 to cover these expenses that
should have hit in 2023.
I. URA PROSPECT SOUTH FUND #801
1. Transfer of Urban Renewal Authority (URA) Fund Equity 801 to Fund 800
The URA districts were consolidated into one fund in 2024, Fund 800. This transfers the residual assigned fund
balance in Fund 801 (Prospect South) & Fund 803 (Foothills Mall) to Fund 800. Subsidiaries have been assigned
in the new fund structure and funds will be transferred accordingly.
J. URA MALL FUND #803
1. Transfer of Urban Renewal Authority (URA) Fund Equity 803 to Fund 800
The URA districts were consolidated into one fund in 2024, Fund 800. This transfers the residual assigned fund
balance in 801 (Prospect South) & 803 (Foothills Mall) to fund 800. Subsidiaries have been assigned in the new
fund structure and funds will be transferred accordingly.
K. TRANSPORTATION CEF FUND
1. Transfer to the Capital Projects Fund for the Union on Elizabeth Payment-In-Lieu (W. Elizabeth St.;
refer to item C2)
The City received a payment in lieu of construction from the Developer of the Union on Elizabeth project. The
payment was for required roadway frontage improvements of W. Elizabeth St., per their development
agreement. This payment was collected in 2018 and deposited into the Transportation Capital Expansion Fee
Fund.
FINANCIAL / ECONOMIC IMPACTS
This Ordinance increases total City 2024 appropriations by $6,211,039. Of that amount, this Ordinance
increases General Fund 2024 appropriations by $1,093,875, including use of $292,582 in prior year reserves.
Funding for the total increase to City appropriations is $3,453,232 from unanticipated revenue, $2,730,877
from prior year reserves and $26,930 from transfers from reserves or previously appropriated funds.
The following is a summary of the items requesting prior year reserves:
DISCUSSION / NEXT STEPS
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
• What questions or feedback does the Council Finance Committee have on the 2024 Annual Adjustment
Ordinances?
• Does the Council Finance Committee support moving forward with bringing the 2024 Annual Adjustment
Ordinances to the full City Council on the Consent Agenda?
Item #Fund Use Amount
A2 General Fund Muni Ct - Constitutional Requirements $47,288
A3 General Fund Muni Ct - Contractual Obligations 46,059
A4d General Fund Police - 2020 JAG Grant Supplemental Award 29,517
A9 General Fund Land Bank Operational Expenses 71,800
A10 General Fund Manufacturing Equipment Use Tax Rebate 97,918
B1 Cultural Services Fund Pianos About Town Grants 128,414
B2 Cultural Services Fund Creative District Grant Funding 162,650
D1 Transportation Services Fund Open Streets Vendor Fees 1,200
G2 Golf Fund Golf - City Park 9 Pump station repairs 25,130
H1 Cemeteries Fund Cemeteries- 149 Grandview repairs 50,000
H2 Cemeteries Fund Cemeteries - Grandview pump station electrical
repairs/upgrades 34,720
H3 Cemeteries Fund Cemeteries - Purchase of Backhoe in 2023 invoiced in
2024 123,150
I1 801-URA - Prospect South TIF
District Fund Transfer of URA Fund Equity 801 to Fund 800 1,873,927
J1 803-URA - Mall Fund Transfer of URA Fund Equity 803 to Fund 800 17,804
K1 Transportation CEF Fund Engineering - Union on Elizabeth Payment-In-Lieu (W.
Elizabeth St.)21,300
Total Use of Prior Year Reserves:$2,730,877
Kelly Ohlson; King Soopers – page 93 (see above) in lieu of the developer constructing the right turn lane
College & Drake - They are only required to pay $243K for a right turn lane – what does that cost?
Brad Buckman; that is not the total cost, but it is a proportional impact of the development. They don’t bear the
entire cost – we look at proportional impact from a traffic analysis study and that is what we deem to be a fair
and reasonable amount for the developer as payment in lieu.
Tyler Marr; if they had constructed the right turn lane – they would be eligible for some level of reimbursement
for the opposite - proportionality of that.
Emily Francis; Municipal Court - #3 page 89 (see above) to pay for the jail services.
Lawrence Pollack; I am not aware of any additional money we have paid in 2024. They are not known until later
in the year.
Emily Francis; didn’t we just have an appropriation to pay for extra beds? How are those things different?
Lawrence Pollack; reappropriation – we had the expenses, but we didn’t utilize all of the budget / approved
spending in 2023. So, the reappropriation is asking, can we have that budget back and then we can finish that
intended purpose? This is proactive, looking at what our use is YTD and what our contractual obligations are for
the year. Let’s do this now.
Emily Francis; so, we are not paying more and more money for the jail services.
Emily Francis; #7 (see above) Work for Others and Program Fees for Conflict Transformation Works
I am curious as it says that we charge youth who are involved in conflict program, I am wondering why and how
much we charge them to patriciate.
Lawrence Pollack; that is determined within Municipal Court. There may be costs associated with that
but we are not forcing individuals to pay to be part of the mandated program.
Emily Francis; it does say we charge fees for those involved.
Travis Storin; If acceptable, we will expand on that and include the response in the AIS that comes to the full
Council, so it is very clear.
C. Electric System Appropriations
Travis Walker, Interim Light & Power Director
Cody Snowdon, Electric Engineering Director
SUBJECT FOR DISCUSSION: Light & Power Bond Issuance and Capital Planning
EXECUTIVE SUMMARY L&P Management wishes to inform the Council Finance Committee on the use of funding
to date and future use of the issuance.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
- Inform Council Finance on use of funds and future capital plans.
BACKGROUND/DISCUSSION (details of item – History, current policy, previous Council actions, alternatives or
options, costs or benefits, considerations leading to staff conclusions, data and statistics, next steps, etc.)
Current and future use of bond issuance:
- Transformer purchases for development and supply chain issues- catch up from pandemic
- Cable and Transformer Replacements- replacing aging infrastructure to maintain reliability and facilitate
electrification
- Back-to-front yard conversions to facilitate Beneficial Electrification- enables larger service capacity for heat
pumps, electric vehicles
- Technology that supports the electric system and the Virtual Power Plant- Advanced Distribution
Management System
- Limited Equipment Purchases to facilitate cable replacement projects
- Substation Planning/system studies to support electrification
DISCUSSION / NEXT STEPS
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
- Inform Council Finance on use of funds and future capital plans.
We have used $11M of the issuance – transformers – our inventory greatly reduced during Covid –
build stock backup and supply current development projects that are under way Equipment to enable
the cable pulling to happen – truck and cable puller
Kelly Ohlson; Back lot conversion - $23M for 1000 lots. How does this shake out in relation to all of the
projects you could be doing for reliability and safety?
Travis Walker; it is super expensive - it comes out to approximately $23K per lot, so it takes a bit to
recover. That is why we are doing this pilot, to see exactly what it will be per lot and to see
-how many of those we can and want to do. We run into the expense versus return on annexations
also. It is a bit of an experiment right now. Back to front would not be our #1 priority to spend the
entire $23M on.
Kelly Ohlson; what is beneficial electrification?
Travis Walker; it is the effort that all of us have brought into the city where more electrification is
better because renewal power will allow us to move away from natural gas. It could be a heat pump at
your house, solar panels, batteries, getting rid of your gas-powered car and moving to an EV, getting an
electric water heater versus natural gas. The hope is to move away from natural gas and to be as
carbon free as possible.
Cody Snowdon; with these back lot to front lot conversions (see above), not only safety, it is beneficial
electrification, Because a lot of these panels only allow a small service size until they get maxed out.
When people are looking at even solar panels, they are needing a larger service size to adequately
handle energy coming back onto the system. In most of these areas, it will exclude them helping us
head toward achieving our 2030 goals.
Kelly Ohlson; I am glad you guys are studying this. I am just hung up on what we are not doing for $24K
per unit that we could be doing for beneficial electrification. Is that still a work in progress?
Travis Walker; It is still a work in progress. We don’t have the exact amount we will spend on back lot
to front lot versus transformers versus cable. It will be a bit of everything while we get grounded and
figure things out. We want to revamp our CIP to be better able to dictate what rates might be versus
future bond issuances. This is a significant expense.
Emily Francis; I understand that back to front is convenient, but what else does it do?
Travis Walker, four houses worth of main breakers in one box and the wires that go from the back yard
to the house are too small to handle loads for EVs, heat pumps, solar coming back onto the system.
In addition to the convenience and safety of front yard access, it is giving those residents the capacity
to electrify.
Emily Francis; they want to be able to upgrade
Travis Walker, correct, there is no infrastructure – when this was put in during the 1950’ and 1960’s
that wasn’t a thing. We can’t just put a bigger wire into that. When their power goes out, it could be
those breakers and could take out all four homes. We will help them any way we can, but technically,
that is their service. It also takes a lot of that knowledge and understanding where their service is out
of date. That one box of breakers services up to four homes.
Emily Francis; my friends have one in their back yard – for four houses
Travis Walker; they call them widow makers for a reason– boxes with multiple breakers
Emily Francis; I understand what Kelly Ohlson is saying that this is a really nice thing to have, but for
over half of the bond issuance
Travis Walker; we would not spend the whole thing. We are trying to future out what it does costs.
Kelly, to your other question, we kind of see this like a little bit like the overhead to underground
conversation projects back in the day - piecemealing it out over time.
Cody Snowdon. A lot of these estimates are just the overall, to see what it would be
throughout the city and not what we are planning to spend right away. We have $400K in BFO slated
for the start of this program. We are not looking to spend $23M.
Tricia Canonico; what period of time are you looking at to do this project?
Cody Snowdon; we are researching that – these estimates are overall– understanding the 2030 goals –
things we need to evaluate and getting a new CIP.
Tricia Canonico; decarbonization grant $139M – is that something we might be grant programs for?
Tyler Marr; this is fairly recent announcement - the Colorado Energy Office - it is my sense that, yes
either at the generation level or the distribution level there will be some pass through on that, we will
need to dig into that and get back with Tricia on how the state is going to structure some of that
awarding.
Travis Walker; if I had to look into a crystal ball, I would say that we would keep the back to front lot at
the $400K per year level that we have in the budget and ride it out because cable replacement and
transformers are going to be part of this. We will see what the demand is for folks to electrify.
Emily Francis; I appreciate the slow approach and trying it out.
Travis Wallker; it is definitely good to understand it first. Every project is different and will have
different obstacles but having a good pilot project base that we can move forward with is critical.
Travis Storin; as a staff, we aren’t used to getting a $40M appropriation that is generalized
for Light & Power projects. We usually operate with more granularity and specificity when bringing an
appropriation to the Council. So, part of this is seeking, is the level of detail that just shared, is that
something the Council would wish to get in writing or was this a sufficient preview that we could defer
it to the CIP process on a go forward basis which is shared with the Council in two years intervals.
We want to open up a dialog on what the forum and delivery for updates on the use of these funds.
Kelly Ohlson; a lot of great information. This a whole lot of exciting stuff – some very basic, but
incredibly important. Delivery and reliability and moving more in the sustainability direction – but isn’t
this a lot of stuff that we should have been doing over the past 10-15 years?
Travis Walker; there are certain pieces that could have been. We have been replacing cable – maybe
we could have accelerated that a little bit, so we didn’t find ourselves with 24% over 45 years old
because that is going to be a big expense. As far as electrification, I think we could have done better
with load diversification. We could have optimized things better in that way. To your point,
it is super exciting stuff, and we are excited to be involved with it, and it is going to be an ongoing
process as we start working through updating our CIP.
Kelly Ohlson; I think you should come to us from time to time and we need to get it to the
Full Council in a timely manner. It is absolutely important to go deep for Council Finance but maybe
here are the 8-10 categories we are using the bond money and the duration - over the next how many
years and what the progress is - maybe a one or two pager to update the full Council. They voted for
the bond issuance. I would say a yearly basis at the outside to update us in a complete, simple and
understandable manner.
Tricia Canonico; I agree with what Kelly Ohlson said. This was a great presentation. You are making
this accessible to folks who don’t know a lot about this.
Emily Francis; I think after having more information on the transformer replacements, being able to
present maybe at a Work Session back to the community -there is a lot of disconnect between folks
wanting to electrify. It would be good to update the community on what that requires.
Tyler Marr; it flags for me the dual cost pressures we are facing right now; one, to green the portfolio
mix on the generation side (PRPA), which is a significant portion of our own rate pressure, and then the
pressure to not only keep up with asset management to expand capacity in the system to allow for
electrification to take advantage of the diversified IRP so right now, it is an area of high cost
OTHER BUSINESS
Travis Storin; we are seeking an appropriation out of the 2050 Climate funds.
The Inflation Reduction Act (IRA) of 2022 included a tax credit program (see above).
This is a series of programs that we have not had access to until now. IRA basically
turns this into a grant type function and we can apply for these tax credits that were previously
inaccessible. The request would be for up to $100k from the 2050 money would be to hire
a third-party consultant service to evaluate all of the city’s projects to determine if the City has sufficient
eligible projects to justify pursing these tax credits.
Fleet Management with electric vehicles.
Facilities with actual building electrification.
Light & Power and our Energy Services on community facing measures like chargers and batteries
We have several areas in the city who might be eligible, but we don’t want folks to apply all at once.
We would like to run this as a portfolio – this program will last for eight years. We want to make sure
that our highest and best use projects are getting the allocation.
The idea behind the firm would be to take all of our projects from those areas above and evaluate
them for eligibility as well as how ideal and attractive they might be for the tax credit programing.
We would emerge with a roadmap for the eight-year life of the tax credits on which projects we would
be applying for and when, how much local seed money would we need in that grant type function.
Basically, stand up a program for us for IRA money. We think there is a nexus for us with the Climate
money in the 2050 tax and there is a reserve there.
Emily Francis; I am fine with it - we are good with this coming to the full Council
Kelly Ohlson; I am good with it coming forward.
Tricia Canonico; some additional context, I along with others met with the federal grant concierge
earlier in the week and she was talking about this. Colorado is standing up an enterprise for this as
Dale Blaney is the person who is going to be running this. They are holding a webinar on September
26th around this. It is 30-70% back on projects based on if you have a coal plant closing, labor
standards. Exciting.
Travis Storin; we very much appreciate the support, and we will prepare this for two readings for the
full Council as soon as practical. We have a selection of qualitied vendors we can choose from.
This appropriation will run in parallel, and we will get this work stood up quickly.
Kelly Ohlson; thank you to Lawernce for his normal excellent work of laying out the supplemental
appropriations better than anyone has in the last several years.
Meeting Adjourned