HomeMy WebLinkAboutAgenda - Full - Finance Committee - 09/04/2025 -Agenda
Council Finance Committee
September 4, 2025 4:00 - 6:30 pm
City Hall - CIC Conf. Room
In person with Remote Participation Available via Teams Join the meeting now
Meeting ID: 247 116 340 034
Upon request, the City of Fort Collins will provide language access services for individuals who have limited English
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A)Call Meeting to Order
B)Roll Call
C)Approval of Minutes from the August 7th Meeting
D)Audit Update Trevor Nash
15 minutes
E)2026 Budget Revisions Caleb Weitz
45 minutes Lawrence Pollack
Jen Poznanovic
F)Transfort Budget Monica Martinez
30 minutes Kaley Zeisel
G)Grocery Tax Rebate Program Adam Molzer
30 minutes Jacob Castillo
Jeff Rochford
H)2025 Annual Adjustment Ordinances Lawrence Pollack
15 minutes
I)DOLA Passenger Rail Grant and Local Match Funding Monica Martinez
Note: Materials for this topic will be distributed on Tuesday, September 2nd
J)Other Business
K)Adjournment
Next Scheduled Committee Meeting: October 2, 2025
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Council Finance Committee
2025 Agenda Planning Calendar
Revised 08/28/25 ck
Sept. 4th 2025
Audit Update
Representatives from the audit team from Plante Moran
will present the results of the FY24 Audit and Single Audit.
The audit team and City Accounting team will be present
to answer any questions or concerns Council may have
about the FY24 Audit
15 mins Trevor Nash
2026 Budget Revisions
This process enables the City Manager and City Council
to make necessary adjustments to year 2 of the adopted
biennial budget based on financial conditions and/or other
organizational needs. This aligns with the Charter
requirement that although a biennial budget may be
adopted, each fiscal year requires adoption of a separate
annual appropriation ordinance.
45 mins
Lawrence
Pollack
Caleb Weitz
Jen Poznanovic
Transfort Budget
Updating council on Transfort’s projected budget
overspend this year and the identified need for additional
funding in 2026. Guidance will be sought on the
recommendation to use 2050 Tax. A 2025 appropriation
will occur during the cleanup appropriation in November,
and the additional amount required for 2026 is being
requested through the budget revision process.
30 mins
Monica
Martinez
Kaley Ziesel
Grocery Tax Rebate Program
Updating Council Finance on the projected budget
overspend for 2025 Grocery Tax Rebates, and options to
constrain spending in 2026. Guidance will be sought on
the recommendation to use Digital Inclusion reserve
balance for 2025 during the cleanup appropriation in
November. Guidance will also be sought on modifying the
program to bring 2026 rebate expenses within the
approved $450k budget.
30 mins
Adam Molzer
Jacob Castillo
Jeff Rochford
2025 Annual Adjustment Ordinance
This annual supplemental appropriation ordinance is
intended as an efficient way to bundle numerous
items for Council approval, rather than submitting
them with individual AIS’s and Ordinances. This is
primarily used for unanticipated revenue, and those
items should be routine and non-controversial.
15 mins Lawrence
Pollack
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Oct. 2nd 2025
SE Community Center Update
Updating Council Finance on the framework and cost
share that will come forward with an IGA to the full
council. It will include the funding stack we have
presented and range for the facility we have
presented in the past. We will probably show the
funding stack we have presented in the past too.
15 mins
LeAnn Williams
Appropriation Request – Equipment Fund
Appropriation of $1M of Equipment Fund to purchase
replacement vehicles. This will also kick-off a
transitional purchase strategy to move out of Lease
Purchase and more into cash purchase.
30 mins Chris Martinez
Affordable Housing CCIP Request
Proposed Amendment to the Montava Metro District Josh Birks
Nov. 6th 2025
Parks and Recreation 2050 Tax Update Jill Wuertz
Dec. 4th 2025
E. Mulberry Threshold Analysis
Fleet Management Policies & Practices
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Finance Administration
215 N. Mason
nd Floor
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Council Finance Committee Hybrid Meeting
CIC Room / Teams
August 7, 2025
4:00 - 6:00 pm
Council Attendees: Mayor Arndt, Emily Francis, Kelly Ohlson
Staff: Kelly DiMartino, Tyler Marr, Caleb Weitz, Teresa Roche,
Carrie Daggett, Dianne Criswell, Terri Runyan, Taryn Moran,
Delynn Coldiron, Victoria Shaw, Jordan Granath, Wendy Bricher,
Phil Ladd, Carissa Clinton, LeAnn Williams, Carisa Clinton, Joe Wimmer,
Jeremy Woolf, Nicole Poncelet-Johnson, Mandy Rasmussen,
Monica Martinez, Jeff Rochford, Gerry Paul, Trevor Nash,
Adam Halvorson, Lawrence Pollack, Carolyn Koontz
Others: Halee Wahl - Chamber
Meeting called to order at 4:00 pm
Approval of minutes from July 3, 2025, Council Finance Committee meeting.
Motion made to approve by Kelly Ohlson and seconded by Emily Francis.
Approved via roll call
A) Fund Balance Update
Trevor Nash, Senior Accounting Manager
SUBJECT
Status of Fund Balances and Working Capital
EXECUTIVE SUMMARY
-time offers during the Budgeting for
are also used to fund supplemental
STAFF RECOMMENDATION
Council Finance can use the information presented to make informed decisions about planned reserve
spending and budget issues in the coming year.
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BACKGROUND / DISCUSSION
The City’s overall finances are divided by purpose into separate funds (i.e. Natural Areas, Recreation,
Wastewater, etc.). Every year each fund’s revenues and expenses are netted against each other and
applied against the existing fund balance to calculate the updated fund balance. In this way each fund
has a separate reserve balance which can be used, with review and approval from Council through the
budget process, on projects and operations that benefit the City.
It should be noted, however, that fund balances often have restrictions on their use. The calculation of
fund balances occurs once per year, however after that time reserve balances may be appropriated
through the supplemental, reappropriation, or standard budgeting process. Furthermore, reserve
balances may be obligated for the funding of multi-year capital projects, or may be restricted by State
law, granting agencies, voters, or other parties outside the City government.
Funds are presented individually on their own slide, with fund balances shown vertically by accounting
classifications. The amounts are then additionally categorized based on their restrictions as either
Appropriated, Available with Constraints, or Available for Nearly Any Purpose.
Appropriated, Minimum Policy or Scheduled is comprised of minimum fund balances established by
policy, funds from the 2024 balance that have been appropriated in 2025, 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.
As a result, it is important to examine both the total amount of reserves as well as potential restrictions
on use of reserves to derive actionable data from the fund balance report.
CITY FINANCIAL IMPACTS
Total Fund Balances and working capital at the City have generally increased over the past 10 years,
however the amount of these funds that are considered ‘available for any use’ has declined. In
particular, the General Fund has no funds that are considered unassigned as of year-end 2024. Since
budgeting has become more accurate, this means that now there are no reserve funds in the General
Fund to pay for new initiatives and will impact future budget processes, as General Fund reserves have
been an important funding source for items like asset management. This is particularly important to
note during this period of weakening sales tax revenues and steady expenses, which was discussed
with the Council in June 2025. Additional information on budgetary impacts will be provided in the 2026
revision process.
PUBLIC OUTREACH
Fund balances are made available in the ACFR which is posted to the City’s website each year.
Public input on use of reserves is included as part of the budget process.
DISCUSSION / NEXT STEPS
Caleb Weitz; this is a look at the end of fiscal year 2024 – this is in exact alignment with what you saw
before - planned uses for SE Community Center being the largest then Affordable Housing
Self-insurance fund
Technically has a negative balance – this was the case last year as well
We have to book a liability and an expense for claims that will be filed in the future
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No concerns about meeting future obligations
FY2024 closed – audited / signed / sealed & delivered
Audit team will present at September Council Finance
Mayor Arndt; extremely well presented – thank you
Kelly Ohlson; I am good
Emily Francis; I am good as well
B) Utilities Emergency Capital Replacements Appropriation
Jeremy Woolf, Senior Director, Water Operations
Joe Wimmer, Utilities Finance Director
Two emergency capital repairs requested to move forward in 2025 that will require additional
appropriation;
• Lemay Waterline Replacement ($3.4M)
• Drake Wastewater Treatment Plant NPT Blower Replacement ($1.7M)
SUBJECT FOR DISCUSSION
Supplemental Appropriation Request for (1) Blower Replacement at the Drake Water Reclamation
Facility and (2) Lemay Water Line Replacement Project
EXECUTIVE SUMMARY
The Blower Replacement Project at the Drake Water Reclamation Facility (DWRF) has undergone
design, up to sixty percent, for replacing two blowers. Staff has identified the need for an additional
$1,700,000 from Wastewater Utility Fund reserves to supplement the existing appropriated budget for
preliminary design. The additional appropriation will fund final design and installation of both blowers,
having a minor contingency to fund unanticipated costs for the blowers to be placed into service.
The Lemay Water Line Replacement Project is the result of unanticipated and continuous water leaks
occurring since spring 2025. Based on the number and frequency of leaks, approximately $200,000 has
been spent to date on responding to leaks. Considering the condition of the water line and risk to City
staff and the public, the water line needs to be replaced. Staff has identified the need for a $3,400,000
appropriation from Water Utility Fund reserves to (1) supplement the water main repairs operating
budget by $200,000 for unanticipated costs incurred to respond to numerous leaks and (2) fund
$3,200,000 for design and construction of a new water line, as well as removal of the existing water
line.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does the Council Finance Committee support an off-cycle appropriation of:
• $1,700,00 from Wastewater Utility Fund reserves to complete the Blower Replacement Project
and
• $3,400,000 from the Water Utility Reserve Fund reserves to supplement the $200,000 in
operational costs incurred on responding to water line leaks and $3,200,000 to complete the
Lemay Water Line Replacement Project
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BACKGROUND/DISCUSSION
The Blower Replacement Project arises from unexpected operational failure this year combined with
the high potential for the DWRF to be in noncompliance with state regulations. The DWRF has two
secondary process treatment trains (North and South). Each treatment train has a total of six aeration
basin zones, which is supported by four (4) blowers. Absent operation of all four blowers, capacity to
the aeration basin zones is reduced, thereby impacting the efficiency of plant operations. DWRF’s
North Process Train is currently operating with only three (3) blowers. One of the two (2) high speed
turbo compressor style (Turbo) blowers stopped working. Based on the Turbo blowers no longer being
supported by the manufacturer and being at the end of their useful life, both Turbo blowers require
replacement to ensure compliance with permit requirements, as well as to ensure efficient operations.
North Process Train aeration projects, while included in DWRF capital improvement plans, were not
scheduled for funding in the 2025/26 budget. After failure of the blower, $650,000 was allocated from
existing Water Reclamation & Biosolids Replacement Program capital funds for design of the blowers,
funding the project through sixty percent design document completion. Staff estimates $2,350,000 in
total project costs for design and construction of the two new blowers. Final design and construction,
with appropriate contingency, estimated at $1,700,000 will undergo a formal request for proposal
proposed in August.
Figure 1 – Blower Replacement Budget Summary
$1,700,000
Total Project
Staff requests a $1,700,000 supplemental appropriation from Wastewater Utility Fund reserves based
on the budget analysis summarized in Figure 1. The $1,700,000 supplemental appropriation provides
funding for final design and construction of two new blowers at DWRF’s North Process Train, with
appropriate contingency to undergo a formal request for proposal proposed for August.
The Lemay Water Line Replacement project arises from the condition of the water line resulting in an
unprecedented number of water main leaks since spring 2025. Based on the condition of the water line
staff recommends replacing the water line. The 20-inch water line along Lemay Avenue, between
Harmony Road and Harbor Walk has suffered seven (7) leaks from April through mid-June 2025. Each
leak resulted in closure of Lemay Ave for eighteen to twenty-four hours, thereby impacting those living
and/or traveling this arterial roadway. Each leak has required approximately $25,000 for repairs, greatly
impacting the water main repairs operating budget.
The water line, constructed in 1977, is a 20” ductile iron pipe. Prior specifications did not require the
water line to be wrapped in plastic, with native soil used as backfill on top of the pipe. The 2025 leaks
have all been on top of the water line, which is consistent with native backfill material directly in contact
with ductile iron pipe. Continuous leak repair creates isolated system vulnerability. Staff recommends
replacing the entire 2,800 linear feet of 20” ductile iron pipe along Leamy Ave, from Harbor Walk to
Harmony Road, with new polyvinyl chloride (PVC) pipe. Design will determine exact sizing and location
along Lemay Ace, with the potential for lower total project costs.
Figure 2 – Lemay Water Line Replacement Budget Summary
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Project Item Appropriations
Design $250,000
Construction $2,500,000
Contingency $450,000
Total Project Appropriations Request $3,200,000
Appropriation Request to Supplement
2025 Water Main Operating Budget $200,000
TOTAL Appropriations $3,400,000
Staff requests a $3,400,000 supplemental appropriation from Water Utility Fund reserves based on the
budget analysis summarized in Figure 2. The $3,400,000 supplemental appropriation provides funding
(1) for design and construction of the new PVC water line along Lemay, which is anticipated to be
completed by summer 2026 and (2) to supplement the water main operating budget based on the
unprecedented costs for repairs.
FINANCIAL IMPACT
The requested $1,700,000 supplemental appropriation for the Blower Replacement project would be
funded from Wastewater Utility Fund reserves. Based on approximately $13.1 million of available
unencumbered reserves, this fund can cover this appropriation.
The requested $3,400,000 supplemental appropriation for the Lemay Water Line Replacement project
and to supplement the 2025 water main operating budget would be funded from Water Utility Fund
reserves. Based on approximately $26.1 million of available unencumbered reserves, this fund can cover
this appropriation.
DISCUSSION / NEXT STEPS
Two emergency capital repairs requested to move forward in 2025 that will require additional
appropriation;
1)Drake Wastewater Treatment Plant NPT Blower Replacement ($1.7M) from Wastewater
Utility Fund reserves to complete the Blower Replacement Project
Mayor Arndt; how long should they last? Are they failing more quickly?
Jeremy Woolf; these blowers were first generation - technology was not at maturity
Mandy Rasmussen; they stopped supporting the vintage blowers – have been in use for 30 years +
Jeremy Woolf; the newer blowers seem to be more dependable – the old ones are energy hogs - 30-40%
more energy than turbo energy
Kelly Ohlson; the slide says - you were able to get it going again but
Mandy Rasmussen; we had to physically rotate the motor to get it to restart back in October but that didn’t
work in April when they needed to restart it again.
Kelly Ohlson; Art in Public Places (APP) - why do we add this on projects like this? 1% of cost
Will there actually be art there (by the blowers)?
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Tyler Marr; staff sees it as something we need to look at and are in the early stages of that right now –
most goes into a fund which has a decent size reserve balance. I expect the next Council will see
proposals on how to tweak that and modernize it.
Kelly Ohlson; the intent is to not have things that make no sense
Kelly DiMartino; there will be some policy considerations coming forward – we think there are some
opportunities to tweak how they are applied to make it more beneficial to public use
Kelly Ohlson; I hope they also look at whether they should even be charged out of those funds.
Kelly DiMartino; I think a full review of what the balance is and how the money is being spent will also be
part of that conversation – options moving forward will be addressed.
2) Lemay Water Line Replacement Project – ($3.4M) from the Water Utility Reserve Fund reserves
to supplement the $200,000 in operational costs incurred on responding to water line leaks and
$3,200,000 to complete the Lemay Water Line Replacement Project
Mayor Arndt; yes and yes
Kelly Ohlson; yes and yes, but I have questions
Replaced the water line going down College in 1977 – 48 years ago – was a city failure
Was it a contractor hired by the city? Why did we do this type of pipe?
Jeremy Woolf; we would have a contractor install a main -
Kelly Ohlson; City responsibility and I don’t want us to repeat the same mistakes
Pipe wasn’t wrapped and native soil was used as backfill
Is PVC (polyvinyl chloride) state of the art? Confirming there won’t be any leaching which is not good for
public health long term?
Mandy Rasmussen; PVC pipe is kind of the standard now – back in the 70’s it could have been an industry
standard issue at the time to not wrap the pipes- that may have come later
Kelly Ohlson; there was also the native soil on top – lack of city oversight on projects back then – whether
a contractor or not – we are a bit more sophisticated now
Kelly DiMartino; I think it is worth noting that even though we have had 7 breaks, there we no customers
who were ever without water. I wanted to highlight that, and the credit goes to our engineers.
RESULT
Both approved to go forward to Council.
OTHER BUSINESS:
Two items
Caleb Weitz; At the August 19th Council Meeting there will be proposed updates to various code
sections re: Sales Tax Policy.
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Summary:
• The sales tax and revenue department recommends amending various Code sections across the
sections of Code the department manages:
o Liquor occupation tax, door-to-door solicitation, outdoor vendors, sales, use and lodging tax
(Chapter 3, Chapter 15 and Chapter 25)
• Proposed changes include:
o The door-to-door solicitation section of Code to better align the administration of solicitor
permits with other permitting processes used citywide
o Regarding liens and distraints, providing clarity on the City’s existing authority to collect
unpaid taxes and updating outdated language and practices
o Various minor changes that align with current practice or date updates such as:
Street maintenance ¼ cent renewal until 2045
Streamlining Outdoor Vendor licenses to expire annually instead of a rolling basis
• If there are any questions or clarifications, staff is happy to provide more details ahead of the 19th
Additional detail:
Door-to-door solicitation program administration:
Staff recommends amending the Door-to-Door Solicitation section of code to better align the
administration of solicitor permits with other permitting processes used citywide. Under the proposed
changes, businesses engaged in door-to-door solicitation would be required to obtain a company-wide
permit and assume full responsibility for the actions of their individual solicitors. Currently, the city code
mandates that each solicitor must obtain a city-issued badge in addition to any company licensing
requirements. The proposed amendments would streamline this by shifting more accountability to the
business, fostering a more regulated and compliant program. Notably, under the revised structure, a
complaint against a single solicitor could result in the revocation of the entire company’s permit.
Change to expressly include items that may have a lien in the lien and distraint sections of code:
Staff recommends adding specific language to clarify that a tax lien shall be a first and prior lien
superior to all other liens or claims. Staff also recommends including language to specify what qualifies
as items that a lien or warrant can be placed upon. City Code currently says that liens may only be
placed upon goods, stock-in trade, and business fixtures, and this creates an unclear interpretation of
what collection efforts may be taken to collect unpaid tax. This change to the Code creates a fair and
equitable approach to the collection of unpaid tax.
2) The September 4th Council Finance Committee meeting agenda will require a longer meeting time. Is
the committee in favor of extending the meeting later or starting earlier?
Committee members prefer to extend the meeting later to 6:30 pm.
Meeting Adjourned
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City of Fort Collins
December 31, 2024
Audit Presentation to City Council
1Page 14 of 116
Agenda
Financial Statement Audit
Required Post-Audit Communications
Federal Single Audit
2Page 15 of 116
Financial Statement Audit
•Unmodified opinion
•New accounting standard implemented –
GASB 101: Compensated Absences
•Audit results
3Page 16 of 116
Required Post-Audit Communications
•Significant Audit Findings
•No transactions entered into by the City lacking
authoritative guidance
•No significant transactions that have been recognized
in a different period than when the transaction
occurred
•No difficulties encountered in performing the audit
•No disagreements with management
•Summary of Unrecorded Possible Adjustments
includes adjustments related to the Sales and Use Tax
Fund
4Page 17 of 116
Federal Single Audit
5
•Federal expenditures of $35.3 million
•Four major programs tested in 2024
o ALN 14.239 – Home Investment Partnerships Program
o ALN 20.205 – Highway Planning and Construction
o ALNs 20.507, 20.526 – Federal Transit Cluster
o ALN 21.027 – Coronavirus State and Local Fiscal Recovery Funds
•Unmodified opinions
•Federal award findings – material weakness on compliance: Timing of expenditures on the SEFA
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Thank you
Timothy.StAndrew@plantemoran.com - 313.496.8542
Josh.Yde@plantemoran.com - 734.302.6921
6Page 19 of 116
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Council Committee Agenda Item Summary – City of Fort Collins Page 1 of 4
September 4, 2025
Finance Committee
STAFF
Caleb Weitz, Chief Financial Officer
Sales Tax and Revenue Director
The purpose of this agenda item is to familiarize and seek feedback from the Council Finance Committee
on the City Manager’s recommended revisions to the 2026 Budget before the recommendations are
3. Based on direction
6 Budget Revisions will be combined with the previously adopted 2025-26 Biennial
6 Annual Budget Appropriation Ordinance is scheduled for 1st Reading on November 3,
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
- Are there additional considerations Council Finance Committee would like to see prior to presenting the
2026 budget revisions recommendations to the Council on September 23?
- What specific data will be most helpful to present to Council on September 23?
BACKGROUND / DISCUSSION
OVERVIEW: The mid-cycle Revision Process is different from the biennial budgeting process in that
there is no broad request for new budget offers. This is because the City is operating within the approved
2025-26 Biennial Budget, and these revisions should be exceptions based on information not known at
the time the budget was adopted in November 2024. The City Manager and the executive team
conducted a comprehensive review to determine which changes should be forwarded for Council's
consideration. Revised revenue projections and available fund reserves were carefully considered when
making these recommendations.
The 2026 Budget Revisions include both 1) reductions to 2026 ongoing expenses to align them with a
decreased 2026 Sales Tax forecast and unexpectedly low turnover; and 2) additional offers for
consideration. The following are key objectives which the 2026 Budget Revision recommendations are
intended to address:
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Council Committee Agenda Item Summary – City of Fort Collins Page 2 of 4
- Matching appropriations for ongoing expenditures to current ongoing revenue estimates, if
declining
- Council priorities, high-priority projects, and other needs not known at the time of the adoption of
the 2025-26 Budget
- Fiduciary responsibilities & fund balance requirements
ECONOMIC CONSIDERATIONS: Through most of 2025 there has been significant economic
uncertainty, which continues today. At the national level, impacts from the tariffs will not be known for
many months, while unemployment continues to climb. Inflationary rate increases have slowed to only
2.7% as of July, but the increased costs experienced in many commodities over the past few years has
not subsided. However, consumer confidence has rebounded from earlier this year and there is
anticipation of potential federal reserve rate cuts.
At the state level, unemployment also continues to rise as the State faces at least a $750M budget
shortfall that is being addressed, with local implications. Coloradoans also continue to hold some of the
highest amounts of debt of any state in the nation.
These economic conditions and uncertainty have resulted in lower than forecasted growth in ongoing
Sales Tax collections. Although there are some more recent positive indicators, at this point in time the
City will need to use the 2026 Revision process to right-size the budget from both revenue and expense
adjustments.
REVENUE: Overall, most significant City revenue sources are coming in at, or above, the 2025 budget.
Based on year-to-date actual collections and other information, however, there are 4 areas of revenue
concern: Ongoing Sales Tax (not 1-Time sources like audits), Camera Radar Red Light revenue, Interest
on Investments in the General Fund and the State’s marijuana share back. All of these revenue sources
are recommended to be decreased for 2026.
Sales Tax: Overall, staff anticipates sales tax collections to be under budget and use tax collections to
be over budget, with combined sales and use tax collections to end the year at or near the 2025 budget.
Cumulatively, sales and use tax collections through July are 2.3% over budget driven by strong use tax
collections in the first half of the year. Sales tax is $1.3M under budget and use tax is $4.1M over budget.
Sales and use tax combined is $2.8M over budget. The favorability is largely driven by volatile one-time
revenue for audits, voluntary disclosure agreements and building permit use tax.
For 2026, staff is currently forecasting 2% sales tax growth on 2025 sales tax collections (adjusted for
one-time revenue) or a 4% reduction ($7.1M) from the current 2026 budget. For use tax, staff is
forecasting flat growth from the 2025 budget and recommends keeping the current 2026 budget for use
tax.
Camera Radar Red Light: Delay were experienced with the deployment of the newly, State allowed
transportable speed cameras intended to support Net Vision Zero. This delay along with potentially
higher than expected modifications to driving behavior is anticipated to have up to a $1.5M shortfall
compared to 2026 collections.
Interest on Investments in the General Fund: Due to increased use of reserves over the past few years
and the lack of reserve generation to backfill those reserves, forecasted interest is estimated to be $800k
less than the $2.8M included in the 2026 Budget.
State of Colorado Marijuana Share Back: The State of Colorado is reducing the forecasted share back
by 50%, which is a revenue reduction of $450k.
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Council Committee Agenda Item Summary – City of Fort Collins Page 3 of 4
EXPENSES: Increased budget accuracy since COVID, along with inflationary pressures, has
significantly reduced the amount of unspent budget each year. Although this is good at not letting City
funds sit idle, it does directly impact the availability of reserves. As such, an increased focus on financial
monitoring is necessary.
Since personnel costs are a large portion of the City’s budget, total compensation costs are budgeted at
less than 100% so as to not lock up budget that will go unused, like for position vacancies. So far this
year the City has experienced a sharp decrease in turnover, driven by the City’s employee engagement
strategies, as well as economic concerns and uncertainty. These realities are the main drivers of the
personnel overspend being experienced so far this year, and thus, it is financially prudent to adjust the
2026 Budget to assume a lower level of turnover.
There are also additional budgetary pressures being experienced within Police Services. The most
recent collective bargaining agreement (CBA) increased personnel expenses by nearly $1.0M for sworn
positions. Those increased costs were addressed in 2025 via the use of General Fund reserves, but no
such reserves are anticipated to be available for 2026. Beyond those increased expenses, it has also
been determined that some personnel cost line items were not budgeted correctly and are coming in over
budget. These unavoidable expenses also need to be adjusted in the 2026 Budget.
Financial analysis has also identified other areas of expense pressures, where budgets are expected to
experience overages. For example, there will likely be a need for a supplemental appropriation for Snow
Removal. In a warmer year, with lower snowfalls, such a contingency may not be necessary. Historically,
when increased snow removal costs are necessary, those were covered with General Fund reserves.
However, given the lack of General Fund reserves available for nearly any purpose, it would also be
financially prudent to make an adjustment in the 2026 Budget with anticipated contingency needs.
~~~~~~~~~~~
In addition to the recommended budget revisions, there are a few other administrative changes for the
2026 Budget, as follows:
1) Modification to 2025-26 Offer 40.7 - Timberline Recycling Center (TRC): With the move of
TRC operations from the Environmental Services Department to the Streets Department now
complete, this revision authorizes transfer of the $1.0M budget in the General Fund to be
expended in the Transportation Fund. There is no change in expenses for the Timberline
Recycling Center or the City
2) As with all other dedicated ¼ cent Sales and Use Taxes, the Open Space Yes! tax will now be
received directly into the Natural Areas Fund, where that revenue is spent. This change
eliminates the need for the transfer from the Sales Tax Fund to the Natural Areas Fund.
Although the total appropriation goes down, there is no actual change in City expenses.
CITY FINANCIAL IMPACTS
Adjustments to the 2026 Budget are needed due to both revenue and expense pressures being
experienced in 2025 and expected to continue into the following year. Revenue shortfalls are anticipated
at about $8.7M, the bulk of which are being driven by lower than anticipated ongoing growth in Sales
Tax. On the expense side, 2026 is currently expected to be about $6.7M over budget. Most of this is
being driven by personnel expenses, with the remainder coming from contingent expenses, for which
General Fund reserves are not available to be authorized to cover those expenses.
PUBLIC OUTREACH, as des
Not applicable
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Council Committee Agenda Item Summary – City of Fort Collins Page 4 of 4
ATTACHMENTS
1. Presentation of the 2026 Budget Revisions – CFC Sept 4
Page 24 of 116
Headline Copy Goes Here
Caleb Weitz
Jen Poznanovic
Lawrence Pollack
Council Finance
Committee
2026 Budget
Revisions
09-04-2025
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2
Agenda
•Overview
•Revenue and Expense Update
•2025 Actions Implemented & Next Steps
•2026 Budget Revisions
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Headline Copy Goes HereSignificant Budgetary Challenges
3
•One-time reserves have been key budgetary
funding sources
•No General Fund reserves generated in 2024
•Inflationary Pressures
•Inflationary rate increases have slowed to
2.7%, but the increased costs over the past
few years has not subsided.
•Talent Costs
•Higher than budgeted due to strong rates of
employee retention
•Higher Program Costs
•Continued Economic Uncertainty
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Headline Copy Goes HereGeneral Fund Reserves by Year
General Fund Reserve
Investment Examples
2023-2024
•1.6M - Fleet Vehicle And New
Equipment Replacement
•500k - Immigration Legal Fund
•580k - ELC Flow Restoration
•1M - Aging Facility Maintenance
2025-2026
•880k - Immigration and Eviction
Funds
•1M - Parks Infrastructure
Replacement Program
•1.3M - IT infrastructure
Replacement Program
•2.5M - Police HVAC
•0.75M – Police CBA
4Page 28 of 116
Headline Copy Goes HereTalent Trends
*Data through Q2 2025 5Page 29 of 116
Headline Copy Goes HereYTD July 2025 Results
6
Budget to Actual
Sales Tax $1.3M under budget
($2.8M under without one-time revenue)
Use Tax $4.1M over budget
($1.1M over without one-time revenue)
Combined $2.8M over budget
($1.7M under without one-time revenue)
•Strong year for audits, voluntary disclosure agreements
(VDAs) and building permit use tax
•Volatile revenue streams
•Taxable sales are up 1.2%. Growth of 4.2% needed to hit
2025 budget
•Softening across majority of sales tax categories except
for online retailers
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$0
$20
$40
$60
$80
$100
$120
$140
Budget Actual Actual w/o One-Time
Mi
l
l
i
o
n
s
July YTD Budget to Actual
Sales Tax Use Tax
YTD July 2025 Results
2%-1%
29%8%
-1%-3%
Sales Tax
•YTD July sales tax
budget is down 1%.
•Excluding one-time
revenue, the sales tax
budget would be down
3%.
Use Tax
•YTD July use tax budget
is up 29%.
•Excluding one-time
revenue, the use tax
budget would be up 8%.
7Page 31 of 116
Headline Copy Goes HereTrends & Projections: Front Range Cities Sales Tax Growth
•Most Front Range cities are realizing budget
shortfalls
•Some cities like Windsor, Westminster and
Aurora are seeing growth
•Some cities have one-time revenue affecting
YTD growth
•Denver’s 2025 revised forecast is 0.3%
revenue growth and 0.0% in 2026
* Fort Collins budgeted growth was 3.0%. Due to 2024 sales tax shortfall, 4.2%
growth is needed to hit budget
** 2025 budget figure is for both sales and use tax
*** 2025 July YTD or most recent data available 8
City 2025
Budget
2025
YTD***
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Headline Copy Goes Here2025 and 2026 Forecasts
2025
•To hit the 2025 budget 4.2% sales tax
growth needed.
•Combined flat growth anticipated for
sales & use tax in 2025.
•2025 Forecast driven by significant
YTD one-time revenue in 2025.
2026
•2% growth forecast for sales tax
(adjusted for one-time revenue) and flat
growth for use tax.
•Anticipated $7.1M shortfall for 2026
revised budget.
2025 Budget & Forecast
2025
Budget
2025
Forecast % Δ $
Difference
Total 208,392,523 207,724,673 0% (667,850)
2026 Budget & Forecast
2026
Budget
2026
Revision % Δ $
Difference
Total 213,894,296 206,789,166 -3% (7,105,130)
9Page 33 of 116
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$0
$50
$100
$150
$200
$250
2025 Budget 2025 Forecast 2026 Budget 2026 Revision
(2% Growth)
Mi
l
l
i
o
n
s
Sales Tax Use Tax
2025 and 2026 Forecasts
•Combined flat growth
anticipated for sales & use tax
in 2025.
•2025 Forecast driven by
significant YTD one-time
revenue in 2025.
•2026 Revision is a $7.1M
shortfall (-3%) compared with
the 2026 Budget.
0%3%-3%
-2%3%-4%
0%0%12%
2025 & 2026 Forecasts
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Revenue – Other Areas of Concern
Photo Traffic Enforcement
•Transportable units to support Vision Zero
goals were delayed in deployment – Total
budget of $2 million.
•$1.5 million revenue shortfall expected in
2025; potentially a similar amount in 2026.
•Only $200k of offsetting expenditure
savings
Other Revenues
•Less investment revenue due to lower fund
balance
•Reduction in the state’s Marijuana tax share
back
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Headline Copy Goes Here2025 Actions Implemented & Next Steps
•Projected current year General Fund deficit without corrective action
•Reacted quickly to evolving economic conditions and expenditure patterns
with corrective action:
•Governmental fund one-time expenditure reductions
•Hiring ‘pause’ shifted to ‘freeze’ as of Aug. 4 to help address budgeted personnel
costs
•Tighter management of expenditures
•Known additional needs to address:
•Transfort – recommend 2050 tax appropriation
•Grocery Tax Rebate – recommend digital inclusion reserve funding
•Continuing budget monitoring
•Potential additional for additional actions based on forecast year-end
position 13Page 37 of 116
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Headline Copy Goes HereObjectives of the 2026 Budget Revision Process - Right-sizing
The recommended Budget Revisions are intended to address:
Reduction of expenditures to match current revenue forecast
Fiduciary responsibilities & fund balance
High-priority projects and needs not known during last budget cycle
15Page 39 of 116
Headline Copy Goes Here2026 Budget Picture
•Approximately $15.4 million (6.1%) General Fund budget deficit*
•$8.7 million lower revenue projections
•Lower sales/use tax forecast
•Photo traffic enforcement trend uncertainty
•Other areas
•$6.7 million in higher expense projections
•Adjusting personnel budgets and assumed vacancy factor
•Contingency due to lack of available reserves
*Does not include Transfort or Grocery Tax rebate
16Page 40 of 116
Headline Copy Goes Here2026 Budget Revision Recommendations
2026 Budget Recommended Budget Revision Highlights:
Avoids involuntary separations for classified and unclassified
management positions
Preserves a 2% pay increase pool
Key strategies to address the 2026 budget gap:
•Leveraging strong benefits fund performance
•Strategic use of fund balances
•One-time savings opportunities
•Shifting funding sources where possible
•Department reduction recommendations, including:
•Eliminating vacant positions
•Efficiency savings
•Service level adjustments
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Headline Copy Goes Here2026 City Manager Proposed Reductions by Category
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Headline Copy Goes HereHighlights of Proposed Reduction Categories
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Headline Copy Goes HereBalancing 2026 General Fund
20
The following $15.4M of reductions is comprised of $10.9M of ongoing
reductions and $4.5M of 1-time savings
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Headline Copy Goes Here2026 City Manager Proposed Reductions by Service Area
21
* These amounts are the total 2026 Budgets by Service Area after subtracting restricted funding. For
example, the Community Capital Improvement Program (CCIP) 1/4 cent tax is backed out because
delaying those projects does not help address budgetary challenges in the Governmental FundsPage 45 of 116
Headline Copy Goes HereReduced Vacant Positions
Department
Parks
City Manager's Office
Strategic Finance
IT
City Attorney's Office
Community Dev
Streets
Traffic
Transfort
Police various
SSA wide
Police various
HR
Transfort
City Manager's Office
Police various
Transfort
Community Dev
Community Dev
Name
2.0 FTE - Parks 2.0 FTE Reducing Staffing and Services
1.0 FTE - Administrative
1.0 FTE: FP&A Director & Sales Tax Auditor
1.0 FTE - Administrator I, Analyst II, Engineer I
Defer hiring Office Management Supervisor
1.0 FTE - Business Support & Code Compliance
2.0 FTE - Asphalt Patching & Reduce Redeployment from 4.0 FTE to 2.0 FTE - No Added Traffic Control Technicians
2.0 FTE - Vision Zero
1.0 FTE -Transfort IT Analyst & Transit Service Planner
1.0 FTE - Hiring pause for (1) Records & BWC release Supervisor funded in 2026, criminalist, and property analysis technician
2.0 FTE - Various within SSA and Reduced Hourly Support
1.0 FTE - Continue hiring pause for (1) Criminalist
1.0 FTE - Talent Acquisition Advertising and Program
1.0 FTE -Transfort IT Analyst
1.0 FTE - Administrative
1.0 FTE - Continue hiring pause for (1) Property and Evidence Technician
1.0 FTE - Transit Service Planner
1.0 FTE - Code Compliance
1.0 FTE - Business Support Page 46 of 116
Headline Copy Goes Here2026 Budget Revisions – Enhancements / Administrative Changes
Enhancements
•2024 voter-approved renewal of the
¼-cent tax for the Street Maintenance
Program (SMP) beginning in 2026
–$11.3M in the Transportation Fund
•Utility Customer Info System (CIS)
Operational Costs
–$700k across the L&P Fund and the
three OneWater Funds
•Additional staffing for a Sales Tax Auditor
–$120k in the General Fund
•Transfort Operations and Capital funded
by 2050 Tax & new grants
–$5.2M in the Transit Fund
Administrative Change Example
•Shifting Timberline Recycling Center
(TRC) expenses from General Fund to
Transportation Fund
–No increase in appropriations
–Aligning expenses with org change to
move TRC from Enviro Services to
Streets
23Page 47 of 116
Headline Copy Goes Here2026 Budget Revision Process - Timeline
Date Process
Sept. 4 Council Finance Committee meeting
Sept. 23 Council Work Session #1
Oct. 14 Council Work Session #2 (if needed)
Nov. 3 1st Reading of the 2026 Annual Appropriation
Nov. 18 2nd Reading
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Headline Copy Goes HereWrap-Up
•Are there additional considerations Council Finance Committee would like to
see prior to presenting the 2026 budget revisions recommendations to the
Council on September 23?
•What specific data will be most helpful to present to Council on September
23?
25Page 49 of 116
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Council Committee Agenda Item Summary – City of Fort Collins Page 1 of 4
Month DD, 202Y
STAFF
Monica Martinez – PDT Finance Manager
– Director, Transfort
The post-pandemic Transit industry has experienced unprecedented levels of cost increases resulting in
g cost increases of 50%-70% across the industry for 2025. Transfort is experiencing
pense overruns are citywide fiscal pressures that require a reduction in the
eviously allocated General Fund support of the Transit Fund. As a result, Transfort is now seeking
8M for 2025 and an additional budget
STAFF RECOMMENDATION
Staff recommends use of 2025 Tax to meet identified Transit needs for 2025 & 2026
BACKGROUND / DISCUSSION
The post-pandemic transit industry has experienced ongoing and significant cost pressures that have
resulted in an estimated increase of 50% - 70% in 2025 operating expenses across the industry. In some
cases, transit agencies have chosen to decrease service areas while simultaneously experiencing
continued increases to both operational costs and per/passenger costs. The table below, which uses
2023 data, is illustrative of these trends that have continued through 2025. The peer cities selected for
this comparison represent a select group that demonstrated strong ridership and post-pandemic
recovery.
Page 51 of 116
Council Committee Agenda Item Summary – City of Fort Collins Page 2 of 4
Transfort is facing similar cost pressures and has identified the need for additional funding at current
service levels. Currently, Transfort is not running at full-service levels as defined by pre-pandemic
expectations. While the original intent was to return to 2019 service levels, Transfort has proactively
paused returns to service in reaction to both internal and external financial pressures. Transfort
anticipates maintaining current service levels for the short-term with the only planned addition being a
return to Sunday & Holiday service. This is planned for 2026 and is in response to strong community
support for this specific service return. Due to the City’s current fiscal position, the 2050 Tax Transit has
been identified as the available funding source to meet Transfort’s financial needs.
2050 Tax Transit
Staff recognizes the importance of ensuring that all 2050 Tax Transit is expended per ballot language for
infrastructure improvements, equipment purchases & upgraded and expanded services. An additional
concern is the use of 2050 Tax Transit to supplement and not supplant prior General Fund support. To
that end, the General Fund level of support in 2023 of $11.5M to the Transit Fund has been established
as the base level at which General Fund must continue in order to be in compliance with 2050 Tax
Transit. Staff recommends use of the 2050 Tax Transit for those items outlined in ballot language with the
outcome of short-term maintenance of current service levels. This is a short-term fix awaiting further
discussion and decision guided by Transfort’s Optimization Study. The table in the “City Financial
Impacts “ section outlines the recommendation of staff for the 2025 and 2026 years and highlights the
anticipated remaining amount balance of the 2050 Transit Tax at the end of 2026.
Transfort Revenue & Expense Context
At current 2025 service levels, Transfort’s revenue budget is projected to $22.2M while its expense
budget is projected to $25M. This represents a $2.2M dollar shortfall in terms of revenue vs expense.
This shortfall is compounded by the unavailability of $.6M in General Fund dollars. The expense overruns
will be individually discussed in the subsequent section.
Since 2019, Transfort has seen a 27% increase in its revenue sources. Most of this increase has come
from the General Fund which has grown its support by 33%. Notably, during the same period, federal
operational grant amounts increased by only 19%. Contractual funding sources have seen increases,
however, they are overall a smaller percentage of the budget. Thus, support of the transit system has
shifted away from federal funds and onto local sources.
On the expense side, the budget is projected to end 2025 with a growth of approximately 44% while
maintaining reduced service levels. At full service, it is estimated that total expenses would demonstrate
a growth rate of around 46%. While there have been increased costs in all areas, the key areas of
Page 52 of 116
Council Committee Agenda Item Summary – City of Fort Collins Page 3 of 4
unprecedented increases for Transfort are personnel, vehicle repair services, & contracted services with
growth ranging from 33% - 94% over the period.
2025 Transfort Projected Overspend
The anticipated overspend for Transfort is driven by four main factors: personnel, vehicle repair services,
contracted transportation services, & a reduction in General Fund support. The reduction in General
Fund support is Transfort’s contribution to 2025 citywide reductions of 5% as a result of unavailable
General Fund allocations.
As compared to the original budget of $13.5M and at current service levels, Transfort personnel is
projecting to an overspend of approximately $700k. This overspend is largely due to an unrealized
assumed vacancy factor. The 2025 assumed vacancy factor for Transfort has proven to be both overly
aggressive in current conditions and potentially misaligned with the operational demands of a transit
service. Overall growth in personnel costs is due to industry dictated increases in wages and is also a
product of the City’s merit increases. A personnel budget of roughly $13.5M that is assigned a merit
increase of 4% will result in over $500k in increases per year.
Overspend in vehicle repair services is projected to an overspend of just over $400k. Analysis of
Transfort’s actual vs projected spend identified that the service levels being used for cost calculations
were being partially driven by a post pandemic low in 2022. This has been addressed for future cost
estimates. Overall growth in vehicle repair services is due to a 33% increase in the hourly cost of a
technician and an average cost increase of 34% form the most commonly used parts.
Contracted Transportation Services includes Dial-A-Ride, bus-stop-to-bus-stop, and some fixed route
services. At current service levels, an overspend of $1.1M is projected. Approximately, $300k of the
overspend is driven by the ongoing use of bus-stop-to-bus-stop services employed to mitigate continued
pandemic era route stoppages. As of 2025 budget reduction conversations, these services are being
reduced by 50%. Additional cost pressures include a substantial increase in ridership for Dial-A-Ride and
a one-time contractual increase of 15%. Yearly contracted increases of 3% are anticipated going forward.
Notably, Transfort is unable to dictate Dial-A-Ride ridership as it is a federally mandated service
contingent on a ¾ mile radius of the current service area. A small portion of 2025’s large overspend is
due to recently identified year end accounting timing.
As previously noted, Transfort is also requesting $.6M in 2050 Tax Transit to replace unavailable General
Fund support. The total request for 2025 is $2.8M.
2026 Transfort Projected Overspend
For 2026, Transfort is requesting an additional amount of $3.2M from the 2050 Tax Transit via the budget
revision process. This request is driven by an anticipated overspend of $.9M in personnel, $.64 in vehicle
repair services, $.97M in contracted transportation services, and a backfill of $.77 due to the unavailability
of previously allocated General Fund amounts.
CITY FINANCIAL IMPACTS
Staff recommends additional appropriations of $2.8M in 2025 & $3.2M in 2026 to meet identified
Transfort needs.
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Council Committee Agenda Item Summary – City of Fort Collins Page 4 of 4
PUBLIC OUTREACH
Click or tap here to enter text.
ATTACHMENTS
1. Click or tap here to enter text.
Page 54 of 116
Monica Martinez -PDT FP&A Manager
Kaley Zeisel –Transfort Director
Transfort Budget
Update
09/04/2025
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2
CFC Question
Are there other considerations Council
Finance Committee would like to see
prior to using the 2050 Transit Tax to fill
identified needs for 2025 and 2026?
Page 56 of 116
3
Transit Context
Ridership Context:
Page 57 of 116
4
Transit Industry Context
Themes:
•Reduction in service area
•Increased operating costs despite reductions in service areas (maintaining service areas would have
increased costs more)
•Per passenger cost has increased significantly for transit agenciesPage 58 of 116
5
2050 Tax Transit:
2050 Tax Transit will be used per the voter-approved sales tax initiative.
•Infrastructure improvements, equipment purchases and upgraded and expanded services.
• General Fund amounts will be maintained at or above 2023 levels ($11.5M).
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2019 2020 2021 2022 2023 2024 2025 2026
General Fund Support to Transit Fund
General Fund 2023 General Fund Level
Page 59 of 116
6
2050 Tax Transit:
2050 Tax Transit will be used per the voter-approved sales tax initiative.
•Infrastructure improvements, equipment purchases, and upgraded and expanded services.
• General Fund amounts will be maintained at or above 2023 levels ($11.5M).
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2019 2025 2025 Proposed
Transit Revenue
General Fund General Fund Above 2023 Federal Transit Administration Grant Funds
CSU 2050 Tax Transit COLT & FLEX
Advertising FASTER State Funds Fees
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Transfort Budget Summary: 2025
2025 Projected
Revenue
2025 Projected
Expense
Anticipated Difference
Transfort Budget $22.8M $25M $2.2M
General Fund Reduction -$.6M $0 Return to service paused to reduce overspend
2050 Tax Request $22.2M $25M $2.8M
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8
Operational Revenue Context: 2025
Revenue Source 2019 Actuals 2025 Budgeted Budget Growth
General Fund $9.6M $12.5M 30%
Federal Transit Administration Grant Funds $3.4M $4.05M 19%
CSU $2.2M $2.59M 18%
2050 Tax Transit $1.8M New source
COLT & FLEX $1.2M $1.3M 8%
Advertising $.314M $.3M -5%
FASTER State Funds $200k $.3M*50%
Fees $468k**$0
Total $17.4 $22.8 31%
*2025 is the last year for FASTER State Funds due to funding decisions at the state level.
**Per the Fort Collins Fare Free & Funding Study, the cost of collections was estimated at $480k. Therefore, this revenue source
was offset by costs leading to the decision to remain fare free. Page 62 of 116
9
Operational Expense Budget Context: 2025
Expenses 2019
Actuals
2025 Projected
Actuals
2025 Projected
Actuals (full service)
Actual Percent
Growth
Full Service
Projected Growth
Personnel $9.7M $14.15M $14.5M 45%49%
Vehicle Repair Srvcs $2.6M $3.45M $3.8M 33%46%
Contracted Srvcs $1.7M $3.3M $3M 94%76%
Fuel $1.2M $1.5M $1.7M 25%42%
Snow Removal $95k $300k $300k New service New service
Additional
Contracted Security
$0 $146k $0k Due to TSO
staffing
shortage
Due to TSO staffing
shortage
Other Expenses $2.1M $2.07M $2.07M -1.5%-1.5%
Total $17.4M ~$25M ~$25.4 44%46%
Page 63 of 116
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Summary
Expense
Type
Original Budget Actuals (through July)Forecasted Spend Forecasted Balance
All $22,845,421 $13,248,073 $11.6M ~($2M)
Budget Overspend:
•At current service levels, actual are projected to an overspend of ~($2M)
Main Factors
•Personnel, contracted transportation srvcs., vehicle repair srvcs, & fuel.
Takeaway:
•Long term, significant adjustments are needed.
•Staff is anticipating results from the optimization study to drive this conversation.
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11
Personnel
Expense Type Original Budget Actuals (through July)Forecasted Spend Forecasted Balance
Personnel $13,481,014 $7,775,716 $6.4M ~($700k)
Budget Overspend:
•At current service levels, actuals are projected to an overspend of ~($700k)
Main Factors
•Merit & industry dictated wage increases
•Aggressive assumed vacancy factor
•Operational demands that restrict realization of the assumed vacancy factor
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Vehicle Repair Services
Expense Type Original Budget Actuals (through July)Forecasted Spend Forecasted Balance
Vehicle Repair Svcs $3,036,273 $1,850,443 $1.6M ~($414k)
Full-Service Level Estimate: estimated $400k of additional expense
Budget Overspend:
•At current service levels, actuals are projected to an overspend of ~($414k)
Main Factors:
•Low estimate of service levels after post pandemic low in 2022
•Increase in hourly cost of a technician of approximately 33%
•Increase in average cost of most commonly used parts of approximately 34%
Takeaway:
•Projected spend per budget manual too low
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13
Contracted Transportation Services
Expense Type Original Budget Actuals (through July)Forecasted Spend Forecasted Balance
Contracted Svcs $2,205,749 $1,581,511 $1.7M ~($1.1M)
Budget Overspend:
•At current service levels, actuals are projected to an overspend of ~($1.1M)
Main Factors:
•Continued use of bus-stop-to-bus-stop to mitigate ongoing pandemic era route stoppages
•Increase in contracted prices (15% one-time increase, additional 3% yearly increases)
•Increase in ridership for Dial-A-Ride
•Recently identified discrepancies in accounting processes
Takeaway:
•Increases in contracted services may be partially controllable, however, Dial-A-Ride expenses are
federally mandated based upon Transfort’s service area footprint.
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14
Supplemental Appropriation Request: 2025
Expenses 2025 Projected Actuals
Total Anticipated Original Budget Overspend $2.2M
General Fund Subsidy Reduction $.6M
Total 2050 Transit Tax Request $2.8M
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Revenue Context: 2026
Revenue Source 2025 Budget 2026 Budget Budget Growth
Governmental Funds*$11.9M $12M .08%
Federal Transit Administration Grant Funds $4.05M $4.05M 0%
CSU $2.59M $2.67M 3%
2050 Transit Tax**$1.8M $2.7M 50%
COLT & FLEX**$1.3M $.9M -25%
Advertising $.3M $.3M 0%
FASTER State Funds $.3M $0 Funding loss due to program
changes at the state
Total $22.24 $22.62 1.7%
*Includes loss of unavailable General Fund
**Increased 2026 revenue due to increased service expectations such as Sunday & Holiday Service & additional Transit
Security Officers
***Loss of FLEX funding due to Loveland withdrawal from the service. Staff has already addressed loss through reduction of
FLEX offerings.Page 69 of 116
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Expense Budget Growth: 2026
Expenses 2026 Supplemental Ask Relation to 2025
Personnel $909k This covers the assumed vacancy factor for 2026
Vehicle Repair Srvcs $639k Based on higher service levels
Contracted Srvcs $968k Based on current year expenses
General Fund Backfill $768 Amount offered in 2026 reductions
Total $3.2M
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2050 Transit Tax Balance
2050 Transit Tax Amounts
Revenue
2024 Reserve Balance $1.4M
2025 Estimated Revenue $5.5M
2026 Estimated Revenue $5.6M
Total Revenue Available $12.5M
Expense
2025 BFO $2.8M
2026 BFO $2.5M
2025 Prior Supplemental Appropriations (grant local matches)$.875M
2025 Supplemental Appropriation Request $2.8M
2026 Supplemental Appropriation Request $3.2M
Total Expense Requested $12.2M
Estimated Balance End of Year 2026 ~($.3M)
Page 71 of 116
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2050 Tax Transit:
Staff recommends use of the 2050 Tax for infrastructure improvements, equipment purchases,
and upgraded and expanded services. The use of these funds for the purposes set forth in ballot
language will result in maintenance of current service levels in 2025 and 2026.
Main Factors:
•Transfort is experiencing cost pressures from increases in personnel, contracted transportation
services, vehicle repair services, and fuel.
•In response to the City’s overall budgetary position, Transfort paused service returns estimated to
minimize overspend by $602k.
•Transfort will still be overspent and is including a request of $602k from the 2050 Transit Tax to offset
the amount of General Fund that will not be received.
Page 72 of 116
19
CFC Question
Are there other considerations Council
Finance Committee would like to see prior to
using the 2050 Transit Tax to fill identified
needs for 2025 and 2026?
Page 73 of 116
20
Forecasting Personnel Assumptions: How Budgets Are Built
Revenue Source 2019 Budgeted 2019 Actuals 2025 Budgeted Budget
Growth
5307 Grant Funds $4.9M $4.2M $4.5M -8%
CSU $2.05M $2.2M $2.7M 32%
Intergovernmental Funds $901k $1.2M $1.3M 44%
Advertising $285k $314k $300k 5%
Fees $621k $468k $0
Governmental Funds $10.2M $9.6M $12.8M 33%
Miscellaneous Other $277k
2050 Transit Tax $1.2M
Total $18.96 $23.1
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Expense Budget Growth
Expenses 2019 Budgeted 2025 Budgeted Budget Growth
Personnel $10M $13.5M 35%
Contracted Srvcs $2.2M $2.2M 0%
Vehicle Repair Srvcs $2.9M $3.04M 5%
Fuel $1.5M $1.6M
Snow Removal $0 $300k New expense due to advertising contract change
Total $18.96
Page 75 of 116
Page 76 of 116
23
Personnel
$12,000,000
$12,500,000
$13,000,000
$13,500,000
$14,000,000
$14,500,000
$15,000,000
1 2 3 4 5
Personnel Growth at 3%
Transfort’s personnel budget is large at around
$13M.
Over a 5-year period that includes yearly 3%
increases, Transfort’s personnel budget alone
would increase by over $1.5M.
This highlights the difficulty of consistently
funding Transfort’s budget.
Page 77 of 116
24
Fuel
Expense Type Original Budget Actuals (through June)Forecasted Spend Forecasted Balance
Fuel $1,191,138 $636,041 $636k ~($158k)
Full-Service Level Estimate: additional $400k of expense
Budget Reduction Amount: $77k
Budget Manual:
•At current service levels, budget is projected to an overspend of $158k
Main Factors:
•Low estimate of service levels after post pandemic low in 2022
Page 78 of 116
25
Operator Staffing Trend with Hiring Freeze
2025 Service Level
2024 Service Level
Reduced MAX Frequency
Remove Night MAX
2023 Service Level
Reduced Frequency and
Evening on Routes
6, 7, 19
In May of 2025 we paused hiring which resulted
in a net loss of one hiring class and our current
declined operator level
As of August 1, Current Operator count is
101 down from 109 on April 1
This Increase is an assumed Sept 2nd hiring
class
Available
Service Hours Operator
Count
Page 79 of 116
Attrition Rates
•2024: 22%
•2025: YTD 19%
•Projected
2025: 29%
•Industry
average:30%
96
Page 80 of 116
2025 Attrition Reasons
Page 81 of 116
Page 82 of 116
Council Committee Agenda Item Summary – City of Fort Collins Page 1 of 4
September 4, 2025
Finance Committee
STAFF
Adam Molzer - Manager, Sustainability Services Area
- CSO, Sustainability Services Area
– Manager, FP&A, Connexion
The Grocery Tax Rebate program’s 2025 budget affords $450,000 for rebates to qualified residents. Due
to increased participation in the program, the total rebate payouts in 2025 are anticipated to be near
$770,000. An appropriation of general fund dollars of $320,000, sourced from the Digital Inclusion
has been requested through Clean-Up and would fulfill the budget necessary to meet
modifying the program to constrain spending in 2026 and beyond will be
STAFF RECOMMENDATION
1. Are there other considerations Council Finance Committee would like to see prior to using the Digital
Inclusion reserve balance to make the Grocery Tax Rebate program budget whole in 2025?
2. Does the Council Finance Committee have feedback or considerations for modifying the Grocery Tax
Rebate program design in 2026 to remain in budget?
BACKGROUND / DISCUSSION
Program Details:
Established in 1984, the Grocery Tax Rebate is intended to provide financially insecure residents relief
from City sales tax charged on purchased food. The rebate amount is currently $80 per person, annually.
Grocery Tax Rebate qualifications include:
• Resident inside the Fort Collins Growth Management Area (GMA).
• Household income between 0-60% of Area Median Income (AMI).
• Must have a document that aligns the applicant’s identity with a Fort Collins address.
Page 83 of 116
Council Committee Agenda Item Summary – City of Fort Collins Page 2 of 4
Applications are submitted via the Get FoCo online platform, where staff manually review each
application and the uploaded documentation (EBT card copy, Medicaid card, LEAP letter, Free/Reduced
Lunch letter) to verify income and residency eligibility. This is the fourth year partnering with Get FoCo
and 100% of applications are now received via the web platform.
One 0.75-FTE staff member assists residents with the application process, manually uploads payment
data, and supports a variety of other program functions to ensure a positive customer experience.
Program Growth:
Between 2020-2024, the number of applications received increased over 213%, and rebates issued grew
by 368%.
In 2024, the City processed 3,150 applications. The total amount issued in 2024 for the grocery rebate
program was $578,240. The FY2024 budget afforded $165,000 for rebates, and a one-time
appropriation from the general fund in September 2024 made the budget whole for the year.
From January to July 2025, the City has processed 2,160 applications. The total amount issued year-to-
date (end of July) in 2025 is $439,000. The FY2025 budget affords $450,000 for rebates.
Using the year-over-year growth rate of 33% currently realized in the first 7-months of 2025, then applied
to the actual rebate payments realized for August-December 2024 ($250,000), an anticipated $331,000
is necessary for August-December 2025. With approximately $11,000 remaining in the budget, an
appropriation of $320,000 is necessary to meet the 2025 rebate obligations.
Actual & Anticipated Obligation & Budget
Estimated Funding Needed $320,000
To meet this funding need in 2025, utilizing the Digital Inclusion reserve is the preferred option due to
scope alignment, immediate availability of funds and limited impacts to residents receiving grocery tax
rebates. Other options considered were to modify or suspend the rebate program mid-year, or to secure
other General Fund dollars.
Since inception, the balance of the Digital Inclusion reserve has grown over time due to the rapid growth
of Connexion’s Internet revenue. This revenue funds the reserve through a 6% payment-in-lieu-of-taxes
or PILOT, and at year-end 2024 the reserve reached a balance of $1.017M. The PILOT funds Digital
Inclusion activites including staff salaries, grants to local schools for hardware and education to improve
digital literacy, as well as funding the Get FoCo app’s software maintenance and support costs.
Additionally, the PILOT funds a reimbursement back to Connexion to offset a discount to qualified
Year Applications Household
Members
Grocery
Rebate
Budget
Allowance Repeat %65+%Single
HH %GetFoco %
2020 1006 1890 $123,435 $138,000 886 88%509 51%641 64%N/A N/A
2021 948 1758 $117,987 $138,000 844 89%446 47%588 62%N/A N/A
2022 1281 2626 $181,186 $138,000 857 67%486 38%686 54%614 48%
2023 1966 4654 $354,121 $150,000 866 44%453 23%911 46%1572 80%
2024 3150 7227 $578,240 $165,000 1351 43%597 19%713 23%3093 98%
YTD 2025 - July 2160 5489 $439,000 $450,000 1357 63%288 13%906 42%2160 100%
* Rebate amounts above are tabulated by application receipt date, resulting in slight variations from the City's fiscal year due to timing.
Page 84 of 116
Council Committee Agenda Item Summary – City of Fort Collins Page 3 of 4
customers who receive a $50 reduction in the price of their internet service (1GB, normally $70/month,
for $20/month).
While there exists a postive and expanding balance in the reserve, current projections show, due to the
relatively rapid growth in Connexion’s Digital Equity customers, an expected decline in reserves
sometime in 2027 or 2028 with an expection of depletion sometime in 2030 or 2031 at which point
Connexion was expecting to self-fund new Digital Equity discounts.The consquence of utilizing Digital
Inclusion reserve balance in 2025 will be to advance those timelines.
Program Scaling for 2026:
To achieve a balanced budget in 2026, a combination of program modifications will be necessary to scale
rebate obligations downward to remain within the existing budget of $450,000. Each option provides
variable budget savings based on the number of eligible applicants that may apply and the size of
households.
At the current rebate amount of $80 per person, the rebate program can support 5,625 eligible Fort
Collins residents. In 2024 and 2025, this number was eclipsed each year in August or September,
requiring the need for additional funding appropriations.
To remain within the 2026 budget of $450,000 and support the heightened number of households
applying for a grocery tax rebate, the following options could be implemented:
Modification A – Reduced Per Person Rebate Amount
Current State: Rebate amount is $80 per person, annually.
Recalculated annually using Consumer Price Index growth over 2019 baseline ($65).
Modified State: Reset the rebate amount to the 2019 baseline of $65 (or lower).
Trade-Offs: $15 per person reduction.
In Q1 + Q2 (2025), this modification alone would have reduced rebates by $73,100.
Equity considerations for disproportionately impacted communities.
Code change required.
Modification B – Reduced Household Member Maximum
Current State: Households with up to 8 eligible members may receive the $80 rebate per person.
This may provide a household up to $640 in rebate.
In 2005, the number of eligible household members increased from 4 to 8.
Modified State: Lower the maximum household rebate ceiling to 3 members.
The average household size in Fort Collins is 2.27 people.
The average household size of rebate applicants in Q1 + Q2 (2025) was 2.5.
Trade-Offs: Households with 4+ members would only receive the 3 member maximum rebate.
In Q1 + Q2 (2025), this modification alone would have reduced rebates by $81,000.
Equity considerations for disproportionately impacted communities.
Code change required.
Page 85 of 116
Council Committee Agenda Item Summary – City of Fort Collins Page 4 of 4
Modification C – Remove Growth Management Area (GMA) from Eligibility
Current State: Eligible applicants with proof of address within the GMA qualify for a rebate.
In 2017, a Code change expanded rebates eligibility to residents in the GMA.
Modified State: Reverse 2017 Code change and disallow GMA residents from rebate eligibility.
Trade-Offs: Further analysis is needed to determine estimated rebate savings.
Equity considerations for mobile home park residents in the GMA.
Code change required.
Modification D – Suspend Program When Budget is Exhausted
Current State: Get FoCo allows unlimited number of eligible households to apply throughout the year.
Rebates are provided to all eligible residents that apply.
Rebates began exceeding budget in 2022.
Modified State: Suspend Grocery Tax Rebate option in Get FoCo when $450,000 budget is met.
Trade-Offs: May create an application surge if the community believes there is a scarcity of funding.
Administrative staff would be reassigned new work during suspended period.
Residents lose access to this financial assistance at an undetermined date each year.
CITY FINANCIAL IMPACTS
$320,000 appropriation from the Digital Inclusion reserve balance for the Grocery Tax Rebate program
(November 2025 Clean-Up Ordinance).
Funding from the Digital Inclusion reserve will reduce the balance of the reserve by approximately 30%.
Consequentially the ability of the reserve to fund ongoing Digital Inclusion efforts and reimbursement to
Connexion of Digital Equity customer discounts will be reduced, advancing the timeline of when the
reserve was projected to be depleted naturally through the continued growth in Connexion Digital Equity
customers.
Scaling the program design in 2026 to remain within the approved $450,000 budget will remove the need
for additional appropriation requests of new funding.
PUBLIC OUTREACH
Public outreach has not been conducted for the budget appropriation, nor the potential program
modifications needed to scale expenses to remain in budget.
ATTACHMENTS
1. Click or tap here to enter text.
Page 86 of 116
Headline Copy Goes Here
Sustainability Services
Jeff Rochford
Grocery Tax Rebate
Program
09-04-2025
Adam Molzer & Jacob Castillo
Connexion Page 87 of 116
Headline Copy Goes Here
1.Are there other considerations Council Finance Committee would
like to see prior to using the Digital Inclusion reserve balance to
make the Grocery Tax Rebate program budget whole in 2025?
2.Does the Council Finance Committee have feedback or
considerations for modifying the Grocery Tax Rebate program
design in 2026 to remain in budget?
2
Direction Needed from the Council Finance Committee
Page 88 of 116
Headline Copy Goes Here
3
Program Description
Grocery Tax Rebate Program
•Established in 1984
•Relief from City sales tax charged on food purchased by low-income City residents
•$80 per person in eligible household, annual (2025)
•Calculated with year-over-year Consumer Price Index growth (food) against 2019 baseline
Qualifications
•Resident in Fort Collins Growth Management Area (GMA)
•Household income between 0-60% Area Median Income (AMI)
Page 89 of 116
Headline Copy Goes Here
4
Trends
Applicants are increasingly:
•Younger
•Families and Couples
213% Increase in Number of Applications
Received Between 2020 - 2024
Page 90 of 116
Headline Copy Goes Here
5
Rebate Budget Shortfall
2025 Rebate Obligation
Exceeding Budget
January – July $439,000
August – December $331,000
Anticipated
________________________________________________
Rebate Funding $770,000
Needed
2025 Budget - $450,000
__________________________________________________________
Total Appropriation $320,000
General Fund reserves have historically covered budget overspend
Page 91 of 116
Headline Copy Goes Here
6
Resolving 2025
Options Explored for 2025
•General Fund Reserves
•Suspend program when $450k budget exhausted (August)
•Modify program design mid-year
•Digital Inclusion Reserves
Why Digital Inclusion Reserves?
•Alignment
•Funds are Available
•Mitigates Impacts to Residents Heightens Impacts to Connexion
Page 92 of 116
Headline Copy Goes Here
7
Connexion PILOT and Digital Inclusion
Payment in Lieu Of Taxes
•6% of Internet Revenue to General Fund
•Funds Digital Inclusion business unit AND
•Reimbursement to Connexion for $50 Digital Equity Discount
•2025 Budget:Revenue
(PILOT)
Expenses
Personnel
Professional & Technical
Grants and Donations
Other
Reimbursement
Surplus 98,603
Page 93 of 116
Headline Copy Goes Here
8
Digital Inclusion Reserve Balance
•Originally projecting
decline in 2026, depletion
in 2030 or 2031
•Funding Grocery Tax
Rebate will advance
decline by 1 year and
depletion by possibly 2
years.
Page 94 of 116
Headline Copy Goes Here
Current Max. up to 8 household members
Modified Max. up to 3 household members
Average rebate household is 2.5 members
Would have reduced rebates by $81,000 (2025 Q1+Q2)
Program Scaling for 2026
9
Modification A
Reduced Per Person Rebate
Amount
Modification B
Reduced Household Member
Maximum
Current Amount $80
Modified Amount $65 or lower
Resets rebate to the 2019 baseline
Would have reduced rebates by $73,100 (2025 Q1+Q2)
Page 95 of 116
Headline Copy Goes Here
Current Process Unlimited Applications
Modified Process Stop at $450,000
Program Scaling for 2026
10
Modification C
Remove Growth Management
Area from Eligibility
Modification D
Suspend Program when
Budget is Exhausted
Current Eligibility City Limits + GMA
Modified Eligibility City Limits Only
Resets Code to the 2017 residency terms
Page 96 of 116
Headline Copy Goes Here
11
Direction Needed from the Council Finance Committee
1.Are there other considerations Council Finance Committee would
like to see prior to using the Digital Inclusion reserve balance to
make the Grocery Tax Rebate program budget whole in 2025?
2.Does the Council Finance Committee have feedback or
considerations for modifying the Grocery Tax Rebate program
design in 2026 to remain in budget?
Page 97 of 116
Headline Copy Goes Here
12
Questions?
Page 98 of 116
Page 99 of 116
Council Committee Agenda Item Summary – City of Fort Collins Page 1 of 10
September 4, 2025
Finance Committee
STAFF
Caleb Weitz, Chief Financial Officer
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 2025 annual budget appropriation.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
• What questions or feedback does the Council Finance Committee have on the 2025 Annual
Adjustment Ordinances?
• Does the Council Finance Committee support moving forward with bringing the 2025 Annual
Adjustment Ordinances to the full City Council on the Consent Agenda?
BACKGROUND / DISCUSSION
These Ordinances appropriate 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
Page 100 of 116
Council Committee Agenda Item Summary – City of Fort Collins Page 2 of 10
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 $811,080 $370,329 $0 $1,181,409
Cultural Services Fund 711,000 0 0 711,000
Recreation Fund 450,000 0 0 450,000
Transportation Services Fund 140,000 0 115,000 255,000
Self-Insurance Fund 653,461 0 0 653,461
Utility CS&A Fund 0 543,582 0 543,582
Light & Power Fund 2,009,443 0 0 2,009,443
Water Fund 352,958 0 0 352,958
Wastewater Fund 106,479 0 0 106,479
Stormwater Fund 51,479 0 0 51,479
Golf Fund 550,000 374,600 0 924,600
GRAND TOTAL $5,835,900 $1,288,511 $115,000 $7,239,411
A. GENERAL FUND
1. Fort Collins Police Services (FCPS) has received revenue from various sources. A listing of
these items follows:
a. $7,590 – Police Northern Colorado Drug Taskforce: As a part of the City of Fort Collins
contribution to the Northern Colorado Drug Taskforce, any Drug Offender Surcharge or
Court Ordered Restitution that is remitted from Larimer County Court to Fort Collins Police,
is then passed along to the NCDTF. Any additional restitution that is collected by FCPS is
additionally passed along to the NCDTF.
b. $3,000 – Police 2024/2025 HVE Grant: Police Services was awarded a grant from Law
Enforcement Assistance Fund to pay for overtime for DUI enforcement. There was a
$3,000 amendment to the original grant.
c. $95,443 – 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.
d. $468,863 – 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 organization who requested officer presence
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Council Committee Agenda Item Summary – City of Fort Collins Page 3 of 10
is then billed for the costs of the officers' overtime. For example, FCPS partners with
Larimer County to staff events at The Ranch. Police receive reimbursement from Larimer
County for officers’ hours worked at Ranch events.
e. $120,498 – Police School Resource Officers: Police Services has 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.
f. $4,978 – Police DUI Enforcement: Proceeds that have been received for DUI enforcement.
TOTAL: $700,372
2. Forestry Payment In Lieu
The Forestry Division receives Payment in Lieu (PIL) revenue when a developer cannot plant
enough trees on a development site to meet City requirements. These funds are used to support
planting trees elsewhere in the City.
FROM: Unanticipated PIL Revenue $21,750
FOR: Citywide Tree Planting $21,750
3. Parks- Overland Park Unanticipated Revenue
The Parks Department collected higher than anticipated revenues from rental facilities at the
Overland Park complex. The funds are used to support general operations in the Overland Park.
FROM: Unanticipated rental revenue $10,575
FOR: Overland Park $10,575
4. Manufacturing Equipment Use Tax
Finance requests the appropriation of $28,329 to cover the amount due for the 2024 Manufacturing
Equipment Use Tax Rebate program as established in Chapter 25, Article II, Division 5, of the
Municipal Code. The rebate program was established to encourage investment in new
manufacturing equipment by local manufacturing firms. This item appropriates the use tax funds to
cover the payment of the rebates.
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Council Committee Agenda Item Summary – City of Fort Collins Page 4 of 10
FROM: Prior Year Reserves (Manufacturing Rebate reserve $28,329
within the General Fund)
FOR: Manufacturing Equipment Use Tax $28,329
5. Fort Collins Retail Strategy funded by PRPA
Platte River Power Authority (PRPA) annually contributes to the economic health of the Fort
Collins community. In the past, the City has utilized these funds to support local, small businesses
and continue to utilize these funds in this manner. This year, the funds were utilized to support a
citywide retail study to understand the changing landscape of retail, implications to our sales tax
base, and development of Council Priority #4 - Advance a 15-Min City by Igniting Neighborhood
Centers.
FROM: Unanticipated Revenue (PRPA) $52,500
FOR: Citywide retail study $52,500
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.
FROM: Unanticipated Revenue (radon kit sales) $1,403
FOR: Purchase of radon kits to sell $1,403
7. Conflict Transformation Works Program - Revenue Recovery
Conflict Transformation Works (CTW), which includes restorative justice and community mediation
programs, receives payment for work it does for other City departments through its workplace
mediation program and also has program fees for parts of its programming. In addition, this year
CTW contracted with another community in Washington to train on the Restore model, a
restorative justice model for shoplifting offenses which was designed and implemented here in Fort
Collins. CTW would like to appropriate these funds to use for expenses related to volunteer
training, support and appreciation. Also, a small portion of the funding will be used to pay victim
restitution for victims of restorative justice cases in the CTW programs. Youth in the program do
volunteer work to earn the victim restitution. This is provided for families unable to pay the
restitution their youth owes and for youth too young or otherwise unable to do paid work for the
restitution. This assures the victim receives restitution despite a family's inability to pay. Program
staff cannot predict how many youths will request this support and who will qualify.
FROM: Unanticipated Revenue (CTW) $16,680
FOR: Conflict Transformations Works Program $16,680
8. Grocery Rebate Program Participation
The Grocery Tax Rebate is intended to provide financially insecure residents relief from City sales
tax charged on purchased food. The rebate amount is currently $80 per person. From January to
July 2025, the City processed 2,160 applications. The total amount issued during this period is
$439,000; a 33% increase year-over-year from 2024. The FY2025 budget affords $450,000 for
rebates, leaving $11,000 for the remainder of 2025.
A monthly average of $66,200 for August-December 2025 is anticipated, bringing the total rebate
obligation for 2025 to $770,000. Additional appropriation to cover the gap of $320,000 will come
from General Fund sub-reserves from Payments in Lieu of Taxes (PILOTs) and will meet the
anticipated 2025 grocery rebate obligations.
FROM: Prior Year Reserves (PILOT) $320,000
Page 103 of 116
Council Committee Agenda Item Summary – City of Fort Collins Page 5 of 10
FOR: Grocery rebates for financially insecure residents $320,000
9. Land Bank Operating Expenses
This request is intended to cover expenses related to the land bank property operation costs for
2025. Since expenses vary from year to year, funding is requested annually through the Annual
Adjustment process to cover these costs. Expenses in 2025 include general maintenance of
properties, raw water and sewer expenses, electricity, repairs, pest control, and other as
applicable.
FROM: Prior Year Reserves (Land Bank) $22,000
FOR: Land Bank Operational Expenses $22,000
10. Volunteer Services Hourly Personnel Support
This is a request to appropriate $7,800 in unanticipated revenue collected from NextGenServe
Volunteer services to fund hourly employees that support the Volunteer Services programs.
NextGenServe is the City’s teen volunteer service club run out of HR and funded from the
Volunteer Service Program budget. NextGen is in its fifth year and has been grant-supported thus
far. To move to a more sustainable funding model, Volunteer Services launched a fee-based
program in 2025. Each participant was required to pay $200 unless they accessed our scholarship
program through GetFoCo. With 43 participants, the program generated $7,800 in unanticipated
revenue to help support Volunteer services hourly personnel.
FROM: Unanticipated Revenue from NextGenServe $7,800
FOR: Fund hourly employees that support Volunteer Services $7,800
B. CULTURAL SERVICES FUND
1. Lincoln Center Artists & Musicians Fees
The Lincoln Center is requesting additional budget for the expenses related to LC live show
promoters and artists to accommodate higher than expected revenues and expenditures for
additional productions, as well as national and international tour shows presented or produced by
the City. This appropriation has no net impact on the Cultural Services and Facilities Fund and
requires no subsidy from the General Fund.
In 2025, the Lincoln Center brought major touring shows to Fort Collins, including Dear Evan
Hansen, Mean Girls, and Ain’t Too Proud. In addition, since the adoption of the 2025 budget, we
added additional shows for the Live at The Gardens concert series that the LC manages, including
well-known artists Mary Chapin Carpenter/Brandy Clark, The Music of Billy Joel with the Fort
Collins Symphony, and The Commodores. The existing budget for Artist Fees paid for shows is not
sufficient to cover the expenses related to the shows in 2025. The additional cost will be covered
by revenue by a margin of at least 100% for at least a net zero impact to the Lincoln Center
budget.
FROM: Unanticipated Revenue $711,000
FOR: Lincoln Center live show promoters and artists $711,000
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Council Committee Agenda Item Summary – City of Fort Collins Page 6 of 10
C. RECREATION FUND
1. Excess Revenue from Higher Participation
The purpose of this item is to consider an appropriation of $450,000 of unanticipated 2025 revenue
in the Recreation Fund to support expenses related to higher participation rates than anticipated
during the 2025-2026 Budgeting for Outcomes cycle. Recreation is currently forecasted to finish
2025 with surplus revenue of about $700,000 and needs to appropriate a portion of these funds to
cover the expenses related to increased participation compared to budget (driven primarily by
increased hourly support).
FROM: Unanticipated Revenue $450,000
FOR: Expenses related to higher participate rate $450,000
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 streets 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.
This request includes $1,400 in fees that have been collected to date in 2025, and a projection of
another $3,600 we expect to collect for the remainder of 2025. 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.
FROM: Unanticipated Revenue (Vendor Fees) $5,000
FOR: Open Streets Program $5,000
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
2025, 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.
FROM: Unanticipated Revenue (Spin annual payment) $10,000
FOR: Installation of bike and scooter boxes for parking $10,000
3. Crushing Facility 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. Customers are charged for the products
they purchase from the Hoffman Mill Crushing Facility. Due to unanticipated projects and
equipment/parts needs, additional funding of $125,000 is requested to cover expenses through the
end of 2025. Revenue generated at the facility will offset the expense (expense will not be incurred
if revenue is not received).
FROM: Unanticipated Revenue (Work for Others) $125,000
FOR: Work for Others program within the Streets Department $125,000
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Council Committee Agenda Item Summary – City of Fort Collins Page 7 of 10
4. Transfer of Appropriations for Concrete Work
The Laporte Avenue Bridges capital project (400902140) was completed in 2023.There was an
issue with the concrete used on the side path. The City and the contractor agreed that $115,000
would be withheld by the City for the deficient work. This withheld funding is proposed to be
transferred to the Streets Department operating fund. This funding will be utilized for concrete work
within the Streets program in 2025.
FROM: Previous Unexpended Appropriation $115,000
FOR: Concrete work $115,000
E. SELF-INSURANCE FUND
1. Self Insurance Fund Revenue
City insurance premiums and claim settlements are projected to exceed the 2025 budget within the
Self Insurance Fund. 2025 Fund revenues in the amount of $653,461 are available for
appropriation to cover excess insurance expenditures.
FROM: Unanticipated Revenue $653,461
FOR: City insurance premiums and claim settlements $653,461
F. UTILITY CS&A FUND
1. Banking & Credit Card Fee Appropriation
Appropriate additional banking and credit card fees based on an increased number of customers
utilizing online banking services to pay utility bills via eCheck or credit card. Utilities absorbs
transaction fees for online payments (1) $0.50 per eCheck and (2) Debit/Credit Cards are 1.15%
up to $1,500, increasing to 2.75% for transactions over $1,500. Additional fee budget is offset by
the increase in fund revenues attributed to customer transaction growth and utility rate increases.
FROM: Unanticipated Revenue from customer growth/rate increases $506,778
FOR: Utilities Banking & Credit Card Fees $506,778
2. Utilities Legal Expenses Appropriation - Part 1 of 5
This request will appropriate revenue received from the Open International judgement to cover the
related unplanned legal expenses incurred in 2025. Legal expenses will exceed currently budgeted
amounts in Light & Power, Water, Wastewater, Stormwater, and Customer Service &
Administration (CS&A) Funds.
FROM: Unanticipated Revenue from Open Intl judgement $36,804
FOR: Unplanned legal expenses $36,804
G. LIGHT & POWER FUND
1. Light & Power System Additions for Development Revenue
This request will appropriate additional Light & Power development fee revenue to cover the
related electric infrastructure costs to serve new and/or upgraded residential and commercial
developments.
Expenses for electric system additions are development-dependent and are anticipated to end the
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Council Committee Agenda Item Summary – City of Fort Collins Page 8 of 10
year over the original budgeted amounts. Through July 2025, revenues generated from
development are over budget by $1,504,528.
FROM: Unanticipated Revenue Light & Power Development Fees $1,504,528
FOR: Electric Infrastructure Costs $1,504,528
2. Utilities Payment in Lieu of Taxes (PILOT) - Part 1 of 3
This request will appropriate additional PILOT revenue to cover associated PILOT expenses for
Utilities funds. PILOT revenues (6% of electric, water, and wastewater charges) collected by
Utilities are a direct pass-through expense to the City's General Fund. Fund PILOT revenues and
expenses are exceeding budgeted 2025 amounts.
FROM: Unanticipated Revenue PILOT $299,000
FOR: PILOT Expenses $299,000
3. Utilities Legal Expenses Appropriation - Part 2 of 5
This request will appropriate revenue received from the Open International judgement to cover the
related unplanned legal expenses incurred in 2025. Legal expenses will exceed currently budgeted
amounts in Light & Power, Water, Wastewater, Stormwater, and Customer Service &
Administration (CS&A) Funds.
FROM: Unanticipated Revenue from Open Intl judgement $205,915
FOR: Unplanned legal expenses $205,915
H. WATER FUND
1. Utilities Payment in Lieu of Taxes (PILOT) - Part 2 of 3
This request will appropriate additional PILOT revenue to cover associated PILOT expenses for
Utilities funds. PILOT revenues (6% of electric, water, and wastewater charges) collected by
Utilities are a direct pass-through expense to the City's General Fund. Fund PILOT revenues and
expenses are exceeding budgeted 2025 amounts.
FROM: Unanticipated Revenue PILOT $250,000
FOR: PILOT Expenses $250,000
2. Utilities Legal Expenses Appropriation - Part 3 of 5
This request will appropriate revenue received from the Open International judgement to cover the
related unplanned legal expenses incurred in 2025. Legal expenses will exceed currently budgeted
amounts in Light & Power, Water, Wastewater, Stormwater, and Customer Service &
Administration (CS&A) Funds.
FROM: Unanticipated Revenue from Open Intl judgement $102,958
FOR: Unplanned legal expenses $102,958
I. WASTEWATER FUND
1. Utilities Payment in Lieu of Taxes (PILOT) - Part 3 of 3
This request will appropriate additional PILOT revenue to cover associated PILOT expenses for
Utilities funds. PILOT revenues (6% of electric, water, and wastewater charges) collected by
Utilities are a direct pass-through expense to the City's General Fund. Fund PILOT revenues and
expenses are exceeding budgeted 2025 amounts.
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Council Committee Agenda Item Summary – City of Fort Collins Page 9 of 10
FROM: Unanticipated Revenue PILOT $55,000
FOR: PILOT Expenses $55,000
2. Utilities Legal Expenses Appropriation - Part 4 of 5
This request will appropriate revenue received from the Open International judgement to cover the
related unplanned legal expenses incurred in 2025. Legal expenses will exceed currently budgeted
amounts in Light & Power, Water, Wastewater, Stormwater, and Customer Service &
Administration (CS&A) Funds.
FROM: Unanticipated Revenue from Open Intl judgement $51,479
FOR: Unplanned legal expenses $51,479
J. STORMWATER FUND
1. Utilities Legal Expenses Appropriation - Part 5 of 5
This request will appropriate revenue received from the Open International judgement to cover the
related unplanned legal expenses incurred in 2025. Legal expenses will exceed currently budgeted
amounts in Light & Power, Water, Wastewater, Stormwater, and Customer Service &
Administration (CS&A) Funds.
FROM: Unanticipated Revenue from Open Intl judgement $51,479
FOR: Unplanned legal expenses $51,479
K. GOLF FUND
1. Banking & Contract Labor Expenses
Golf has seen record revenue and rounds over the past couple of years which has resulted in
higher banking fees and contract labor expenses. The requested annual adjustment is to account
for this increased revenue ($550,000) and related increased expenses ($50,000 for banking fees
and $500,000 for contract labor).
FROM: Unanticipated Revenue $550,000
FOR: Contract Labor and Banking Fees $550,000
2. Capital Projects and City Park 9 Fairway Damages
Golf is experiencing unforeseen increases in expenses related to minor capital projects and City
Park 9 fairway damages. This requested adjustment is to cover these additional costs ($362,600
for minor capital expenses and $12,000 for City Park 9 fairway damages). This request would be
paid for by Golf Fund reserves.
FROM: Gold Fund Reserves $374,600
FOR: Minor capital projects and City Park 9 Fairway Damages $374,600
CITY FINANCIAL IMPACTS
This Ordinance increases total City 2025 appropriations by $7,239,411. Of that amount, this Ordinance
increases General Fund 2025 appropriations by $1,181,409, including use of $370,329 in prior year
reserves. Funding for the total increase to City appropriations is $5,835,900 from unanticipated revenue,
$1,288,511 from prior year reserves, and $115,000 from transfers from reserves or previously
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Council Committee Agenda Item Summary – City of Fort Collins Page 10 of 10
appropriated funds.
The following is a summary of the items requesting prior-year reserves:
Item
# Fund Use Amount
A4 General Fund Manufacturing Equipment Use Tax $28,329
A8 General Fund Grocery Rebate Program participation
A9 General Fund Land Bank Operating Expenses
F1 Utility CS&A Fund Banking & Credit Card Fee Appropriation
F2 Utility CS&A Fund Utilities Legal Expenses Appropriation
K2 Golf Fund Capital Projects and City Park 9 Fairway Damages
Total Use of Prior Year Reserves: $1,288,511
PUBLIC OUTREACH
Not applicable
ATTACHMENTS
1. Attachment #1 – Presentation to Council Finance Committee
Page 109 of 116
Headline Copy Goes Here
•September 4, 2025Caleb Weitz, Chief Financial Officer and Lawrence Pollack, Budget Director
Council Finance Committee
2025 Annual Adjustment Ordinances
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Page 111 of 116
Headline Copy Goes Here2025 Annual Adjustment Ordinances
2
The recommended 2025 Annual Adjustment
Ordinances are intended to address:
•2025 unanticipated revenues (e.g., grants & reimbursements)
•Appropriation of unassigned reserves to fund unanticipated
expenditures associated with approved 2025 appropriations
•Should be routine and non-controversial
•Items approved by the ordinance need to be spent within fiscal /
calendar year 2025, unless non-lapsing in nature
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Headline Copy Goes Here2025 Annual Adjustment Ordinances
3
•City-wide Ordinances No. , 2025 increase total City 2025
appropriations by $7,239k
•These Ordinances increase General Fund 2025 appropriations by
$1,181k, including the use of $370k in prior year reserves. Those
reserves and their uses are:
o $22k for Land Bank Operating Expenses
o $28k for Manufacturing Equipment Use Tax Rebate
o $320k for Grocery Rebate Program
•Funding for the total City appropriation of $7,239k is:
o $5,836k from Unanticipated Revenue
o $1,289k from Prior Year Reserves
o $115k from Transfers from Reserves or previously
appropriated funds
Page 113 of 116
Headline Copy Goes Here
4
Summary of 2025 Adjustments by Fund
General Fund $811 $370 $0 $1,181
Cultural Services Fund 711 0 0 711
Recreation Fund 450 0 0 450
Transportation Services Fund 140 0 115 255
Self-Insurance Fund 653 0 0 653
Utility CS&A Fund 0 544 0 544
Light & Power Fund 2,009 0 0 2,009
Water Fund 353 0 0 353
Wastewater Fund 106 0 0 106
Stormwater Fund 51 0 0 51
Golf Fund 550 375 0 925
Page 114 of 116
Headline Copy Goes Here
5
Larger Adjustments
Police - Reimbursable Overtime $468.9 $468.9
Grocery Rebate Program participation $320.0 $320.0
Lincoln Center Artists & Musicians Fees $711.0 $711.0
Excess Revenue from Higher Participation $450.0 $450.0
Self Insurance Fund Revenue $653.5 $653.5
Banking & Credit Card Fee Appropriation $506.8 $506.8
Light & Power System Additions for Development Revenue $1,504.5 $1,504.5
Utilities Payment in Lieu of Taxes (PILOT)$299.0 $250.0 $55.0 $604.0
Utilities Legal Expenses Appropriation $36.8 $205.9 $103.0 $103.0 $448.6
Banking & Contract Labor Expenses $550.0 $550.0
Capital Projects and City Park 9 Fairway Damages $374.6 $374.6
Sub-Total $788.9 $711.0 $450.0 $653.5 $543.6 $2,009.4 $353.0 $924.6 $158.0 $6,591.9
All Other Recommended Items $392.5 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $255.0 $647.5
TOTAL $1,181 $711 $450 $653 $544 $2,009 $353 $925 $413 $7,239
Page 115 of 116
Headline Copy Goes HereGuidance Requested
6
•What questions or feedback does the Council Finance Committee
have on the 2025 Annual Adjustment Ordinances?
•Does the Council Finance Committee support moving forward with
bringing the 2025 Annual Adjustment Ordinances to the full City
Council on the Consent Agenda?
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