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Home My WebLink AboutWORK SESSION SUMMARY-10/09/2007-Work SessionCity of Fort Collins City Manager's Office MEMORANDUM TO: City Council Members FROM: Darin Atteberry, City Manager Mike Freeman, Interim Chief Financial Officer IY"' RE: Work Session Follow-up: October 9 Budget Work Session DATE: October 11. 2007 On October 9, City Council and staff met in work session to continue the review of the 2008-2009 City Manager's Recommended Budget. Discussion focused on two areas: Additional Revenue Sources 1. Vendor Fee Modification: The Council reviewed the proposal to change the Vendor Fee provided to merchants that collect sales and use taxes on behalf of the City. The modification would decrease the amount retained by the vendors, thus increasing the yield of sales tax revenues by approximately $390,000 per year (on -going.) Council directed staff to continue to develop this policy change. The ordinance to implement this change will be presented for First Reading on November 6, with Second Reading to coincide with the Second Reading of the Final Budget on November 20. 2. Additional Use of Reserves: Council reviewed the discussion that occurred on October 8 at the Council Finance Committee regarding targets for General Fund reserves. Conversation centered on establishing a minimum target of 60 days of General Fund expenditures held in reserve, with a maximum target of 90 days. Staff provided information that, given current reserve levels, Council could choose to appropriate an additional $400,000 for 2008/2009 expenditures without lowering reserves below the 60 day minimum target. The establishment of a formal General Fund reserves policy has been scheduled for the October 23 Work Session. Council Directed Additions to Budget At the September 25 Work Session, Council developed a list of budget offers which some members were interested in funding, if resources were available. This list of 22 offers totaled approximately $5 million in addition one-time or ongoing expenditures. At the Work SesnonslOelober 91ns followup memo oct 9 budPet.doc, Last 300 LaPorte Avenue • PO.Box 580 • Fort C011i ns, CC) 80522-0580 • (970)221-6505 • FAX(97MW)224-6001 www_fcgov.com October 9 Work Session, Council members trimmed this list to 11 offers with a total cost of $1,252,715 over two years. Both the original and the narrowed list are attached. In order to fund all of the items listed on the revised list, City Council would need to approve both the change to the Vendor Fee ($390,000 per year/$780,000 total) and the use of additional reserves in the amount of $412,715 (slightly more than the amount discussed on October 9.) Along with the savings realized by reducing the Trash Districting Offer from $135,000 to $75,000, a total of $1,252,715 would be available for these additional projects. Council sought additional information about several offers which had appeared on its list of programs to consider for additional funding. Network Technology —Voice over IP: What costs savings might be realized by funding this technology conversion in 2008 and 2009? The City currently is operating two different phone systems and is migrating its technology toward the Voice over LP technology. This offer would allow the City to complete this switch sooner creating both a more effective and efficient system and allowing the IT department to eliminate an existing contract Network Engineer position. By completing this change during 2008 and 2009, the existing contractual position can be eliminated in the 2010-11 Budget, saving approximately $85,000 per year. 2. eCommerce Implementation --Parking Service: What savings can we project if this offer were purchased? This offer will allow customers of Parking Services to pay parking citations or buy permits on-line. It also will allow existing customers to renew a parking permit on the web. This will benefit customers since they will not have to come in person to the Parking Services office. It will relieve the pressure on front -counter operations where it is becoming more and more difficult to serve the public with the limited number of staff that are available. This offer is expected to increase parking services revenue by 3-6% due to the added ease of convenient payment methods. This could result in a saving of $18,000 to $36,000 in the first year alone. The payback period is estimated to be 2 years. Ur� IVINWOIDaBudgeting for OatcomesIO8-09 Budget Planningl Work SessionslOciober 94s follouvp menu, oct 9 budget.doc. Last printed iaw12007 2-53 PM Offer # Result Area One Time Only 166.1 Environmental 127.3 Transportation 126.2 Transportation 138.1 Transportation 221.1 Neighborhood TBD Environmental TBD Econ. 30.4 High Perf. Govt. One Time Possible 203.3 Neighborhood 186.1 Safe Community 184.2 Transportation 88.16 Transportation 88.6 Transportation 203.2 Neighborhood 211.2 Neighborhood Ongoing 139.8 Safe Community TBD Environmental TBD Safe Community 167.1 High Perf. Govt. 213.1 High Perf. Govt. 211.3 Neighborhood 93.1 Neighborhood Offer Name Attachment 1 City Council Offers for Funding Consideration October 9, 2007 Work Session (Revised) 2008 Cost 2009 Cost Kequest Ongoing or One-time West Nile --fully fund $ 143156 ongoing Enhanced Travel Corridor --North College $ 20%000 one time Transfort Strategic Operating Plan Update $ 1003000 one time eCommerce Implementation --Parking Service $ 44,000 one time Eastside/Westside Neigh.Plan updates $ 1713000 one time Hazardous Waste Disposal Facility (Estimate ONLY) $ 200,000 ?? NCEDC Contribution $ 302000 $ 302000 Network Services --Network Equipment(Voice overIP) $ 881850 $ 83,000 one time $ 8481006 $ 1139000 Enhancement of Human Services Grant Prog. Traffic Calming (fund pilot?) Sign Replacement Program Street Design & Const. Stds Suppt. & Maint. Pedestrian Access --Enhancement Partial Restoration of Affordable Housing Fund Neighborhohood Sevices--Grant Enhancement $ 10000 $ 100,000 ongoing $ 550,000 $ 550,000 ongoing $ 38,000 ongoing $ 5,000 $ 5,000 ongoing $ 275,000 $ 3255000 ongoing $ 250,000 $ 2005000 ongoing $ 5,000 $ 5,000 ongoing $ 152235000 $ 151853000 PFA South Battalion $ 664,616 $ Air Quality Monitoring $ 30,000 $ Police staffing $ 230005000 $ Sustainable City Government $ 67,151 $ Development Review Center --Innovative Tech $ 1213600 $ Neighborhood Services --Code Enforcement $ 173500 $ Neighborhood Parking Pilot program $ 28,735 $ Grand Total $ 21929,602 $ 53000,608 partially funded in 2008 only; 2009 funded Either year, prior to Transportation Master Plan Staff does not have an estimate of either the one-time or ongoing cost 2 one-time offers, Possibly thru telecomm fund for portion? partial, total request = $210,000 year Fund a pilot project? Ongoing project, first year funding included in 2009 Rec.Budget 506,424 ongoing 180k one time capital, balance ongoing 20,000 one time plus ongoing 25000,000 ongoing 69,048 ongoing 12,600 ongoing 17,500 ongoing 21,205 ongoing $ 2,6461777 $ 3,944,777 City Council Possible Funding List October 9, 2007 Work Session ungoing 2008 2009 167.1 HPG Sustainable City Government $ 67,151 $ 693048 TBD Envir. Air Quality Monitoring $ 20,000 211.2 Neigh Neighborhohood Sevices--Grant Enhancement $ 5,000 $ 5,000 211.3 Neigh Neighborhood Services --Code Enforcement $ 17,500 $ 175500 213.1 HPG Development Review Center --Innovative Tech $ 12,600 Ongoing Total $ 89,651 $ 124,148 One time 30.4 HPG Network Services--Equipment(Voice overIP)** $ 393974 $ 37,342 213.1 HPG Development Review Center --Innovative Tech $ 1213600 203.3 Neigh. Enhancement of Human Services Grant Prog. $ 100)000 $ 100,000 TBD Envir. Air Quality Monitoring $ 30,000 126.2 Transp. Transfort Strategic Operating Plan Update $ 1003000 TBD Envir. Hazardous Waste Study $ 503000 TBD Econ. NCEDC Contribution $ 30,000 $ 303000 203.2 Neigh. Partial Restoration of Affordable Housing Fund $ 2001000 $ 20%000 One time total $ 671,574 $ 3673342 **Note, oJJer _ 0.4 partially horded through Telecommunications Fund Resources v. Possible Expenditures October 9, 2007 Council Work Session Resources 2008 2009 Total Reserves --One time $412,715 (use in either'08 or'09) $ 311,225 $ 101,490 $ 4125715 Vendor Fee (New On -going resource) $ 390,000 $ 390,000 $ 7803000 Reduced Trash District Offer (Misc. addl. Resource) $ 60,000 $ 761,225 $ 491,490 $ 13252,715 Expenditures One-time $ (671,574) $ (367,342) $ (1,0385916) Ongoing (Can be no more than $390k per year) $ (89,651) $ (1245148) $ (2131799) $ - $ - $ (1,2522715)