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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/02/1999 - FIRST READING OF ORDINANCE NO. 39, 1999, APPROPRIA AGENDA ITEM SUMMARY ITEM NUMBER: 23 � DATE: March 2, 1999 FORT COLLINS CITY COUNCIL STAFF: Michael W. Powers ] SUBJECT: First Reading of Ordinance No. 39, 1999, Appropriating Prior Year Reserves in the Sales and Use Tax Fund for Transfer to the Cultural Services and Facilities Fund Implementation of the Arts Alive Program. RECOMMENDATION: The Cultural Resources Board and members of the Arts Alive citizens group recommend adoption of the Ordinance on First Reading. FINANCIAL IMPACT: This Ordinance appropriates monies from the Use Tax Carryover Reserve in the Sales and Use Tax Fund to be transferred for use as the City's share of funding for the Arts Alive Program. The Use Tax Carryover Reserve is typically considered a resource for the funding of one-time needs during the City's budget preparation process.Any use from this reserve during 1999 will result in fewer resources available to meet service needs when planning for the 2000-2001 budget as well as future budget needs. The ten (10) year General Fund Budget Plan showing the needs identified thus far is attached. The unaudited 1998 year-end estimated balance in the Use Tax Carryover Reserve is $6,124,330. Appropriations from this reserve for the adopted 1999 budget of$1,421,026 plus$550,000 committed for the Manufacturer's Use Tax Rebate Program payment in early 1999 reduces the balance available for use future budget needs to$4,703,304. EXECUTIVE SUMMARY: The City's Cultural Resources Board is recommending funding of a new program entitled Arts Alive. This program is the result of the State of the Arts process instigated by Council members to facilitate a community driven effort to promote and unify the arts in Fort Collins. This proposal recommends start-up funding for the program. The proponents of the program have requested $100,000 from the City for each of the next three years. After various discussions in response to this initial request, the modified approach set out in the Ordinance, which requires matching of funds provided by the City, was developed. Under this approach, after an initial amount of$35,000 is provided by the City, an additional $35,000 would be provided contingent upon and after$35,000 in donations from other sources was received. Additional funds to complete the budget target would also be raised through donations. Subsequent City funding would be considered as part of the regular City budget process. The Arts Alive program is proposed to be carried out under contract by a private, non-profit organization designed to serve as a central arts agency for the Fort Collins community. Its functions would include promoting excellence in the arts;increasing awareness and visibility for the arts; broadening the base of financial support for the arts; insuring the financial 40 stability of local arts organizations; and maximizing economic benefits that the arts provide for the community. DATE: March 2, 1999 2 ITEM NUMBER: 23 i BACKGROUND: The Arts Alive: Fort Collins Partnership for the Arts proposal is the culmination of a year-long community cultural planning process called State of the Arts. Over 300 Fort Collins community members have contributed their time, energy, experience, and enthusiasm to the State of the Arts initiative. The endeavor began in November 1997, when Mayor Ann Azari and City Councilmembers Will Smith and Chris Kneeland charged the City's Cultural Resources Board with facilitating a community-driven effort that would serve to promote and unify the arts in Fort Collins. The Board subsequently formed a steering committee consisting of representatives of concerned constituencies including Colorado State University, Poudre School District, Larimer County Government, Front Range Community College, Fort Collins Area Arts Council members, business leaders, students, artists,arts administrators,and audience members. The committee worked to organize a March 30, 1998, event called State of the Arts. The mission of State of the Arts was as follows: A community driven effort that will promote the arts in the Fort Collins community (visual, performing, and literary arts) and will provide an opportunity for brainstorming future endeavors to elevate the community's sense of culture and the arts. The State of the Arts will evaluate the present state of the arts in the community and discuss how to bring all facets of the community together to create a common vision for the future. The desired outcome of the State of the Arts will be to establish specific action plans for improvements. The effort will include discussion about how local arts groups, City staff, Poudre School District, Colorado State University, area business leaders, and the general public can work together to promote Fort Collins as a leader in arts and culture. The State of the Arts event was an extraordinary success and served to create a great deal of momentum for energizing the arts in Fort Collins. Two hundred and fifty participants brainstormed strategies for promoting the arts and 125 people volunteered to help implement these strategies. Several themes emerged, including the need for a centralized umbrella arts entity for organizing, coordinating, funding, advocacy, and communication. Following the success of the initial State of the Arts event,the steering committee hosted State of the Arts II on June 29, 1998 to once again gather the community together to develop some of the themes and ideas that have come out of the first session. Approximately 60 participants divided into six groups to discuss funding, marketing, education,programming, facilities, and an umbrella arts entity creation. The smaller groups each developed goal statements and an action plan for strategies related to their particular area. Representatives from each of these groups were asked to join the steering committee. The expanded State of the Arts steering committee has been meeting regularly since July to coalesce the ideas gathered at the two community meetings into a single plan for a new arts system in Fort Collins. The committee has been chaired by Jennifer Sterling Beccard,also the Chair of the City's Cultural Resources Board. All committee decisions have been made democratically and reflect a great deal of research and discussion. The result of the entire community effort is the proposal for the creation of Arts Alive: Fort Collins Partnership for the arts. This proposed new private, non-profit organization will uniquely address DATE: March 2, 1999 3 ITEM NUMBER: 23 the community recommendation obtained through the State of Arts effort. Arts Alive will help Fort Collins develop a strong cultural image and become a regional leader in the arts. On November 10, 1998, the City Council discussed the Arts Alive proposal in a study session. Following that study session,the Arts Alive group revised its proposal for the Arts Alive program to reflect the Councilmembers' comments. The materials attached to this Agenda Item Summary were developed by the Arts Alive group. Since that study session,Councilmembers have requested that this item be returned for formal consideration by the Council. The item was discussed again at the Council's study session of February 23, 1999. This Ordinance reflects the Council's discussion on February 23, and has been revised to focus on start up activities and phase other goals that have been proposed for the program over time. The following outlines the funding structure set out in the Ordinance: 1. The Ordinance appropriates an initial amount of$35,000 for the implementation of the Arts Alive Program. 2. The Arts Alive Program funds will be paid to the private non-profit organization under the terms of a contract for services setting out the program implementation efforts to be accomplished. 3. The Ordinance appropriates an additional$35,000,contingent upon and available after the Arts Alive organization has raised an additional$35,000 from other sources. 4. The Arts Alive organization will be expected to raise additional money to complete its budget target. 5. The Arts Alive organization will present future requests for funding to the City Council during the regular budget process for the 2000/2001 budget,by submitting a specific request for funding and supporting information by May 3, 1999. i i ORDINANCE NO. 39, 1999 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE SALES AND USE TAX FUND FOR TRANSFER TO THE CULTURAL SERVICES AND FACILITIES FUND IMPLEMENTATION OF THE ARTS ALIVE PROGRAM WHEREAS the Council of the City of Fort Collins has always recognized the importance and value of arts to our community; and WHEREAS,prior City Councils have reinforced this support through funding the Lincoln Center and its programs,the establishment of Art In Public Places program,the establishment of the Fort Fund Program, and the support and promotion of a future new performing arts center; and WHEREAS, the City Council believes that the promotion of the arts in the City is vitally important to the residents of the City in order to enhance the overall quality of life in the community and to preserve and enhance the cultural amenities available to its citizens; and WHEREAS, the promotion of the arts is not only important for the general welfare of the residents of the City but also serves to promote tourism, conventions and other activities which utilize local businesses within the City; and WHEREAS,the City Council believes it to be in the best interests of the City to help foster promotional and fundraising activities in the community aimed at elevating the status and visibility of the arts in the City; and WHEREAS,the City's Cultural Resources Board has recommended to the City Council that the Council support, and identify ways of funding, programs and activities aimed at elevating the status and visibility of the arts in the City; and WHEREAS,members of the Cultural Resources Board were asked to develop and implement a citizen process to identify community needs for the arts in Fort Collins both now and in the future; and WHEREAS,the Cultural Resources Board entered into a series of dialogues with community groups in a program of forums known as State of the Arts; and WHEREAS,the group formed as an outcome of the State of the Arts,known as Arts Alive, presented a report and recommendation to the City Council in a study session in 1998,which was further discussed by the Council on several occasions,including its regular study session of February 23, 1999; and WHEREAS, it is the desire of the Council to appropriate up to $70,000 in 1999 which, together with private fundraising in the amount of $70,000, will fund the implementation of recommendations for an Arts Alive Program in 1999; and WHEREAS, Article V, Section 9 of the Charter of the City of Fort Collins, (the "Charter") permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years,notwithstanding that such reserves were not previously appropriated; and WHEREAS,Article V, Section 10, of the Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered amount or portion thereof from one fund or capital project to another fund or capital project, provided the purpose for which the transferred funds are to be expended remains unchanged; and WHEREAS,it is further the desire of the Council to consider providing funding for the Arts Alive Program in the City's budget for fiscal years 2000 and 2001; and WHEREAS, staff has recommended that the Arts Alive Program be implemented through a contract for services with an independent organization with the requisite qualifications to successfully carry out the Program. NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated from prior year reserves in the Sales and Use Tax Fund the sum of THIRTY-FIVE THOUSAND DOLLARS ($35,000), to be transferred to the Cultural Services and Facilities Fund and appropriated therein for implementation of recommendations for the Arts Alive Program in 1999. Section 2. That an additional THIRTY-FIVE THOUSAND DOLLARS ($35,000) is hereby appropriated from prior year reserves in the Sales and Use Tax Fund and transferred to the Cultural Services and Facilities Fund and appropriated therein for the Arts Alive Program in 1999, contingent upon and subsequent to the generation of at least THIRTY-FIVE THOUSAND DOLLARS ($35,000) in private donations to the Arts Alive Program. Section 3. That any additional funding for the Arts Alive Program for 1999 shall be the responsibility of the private sector,rather than the City. Section 4. That the City Manager is hereby directed to consider and make recommendations to the Council regarding future implementation of the Arts Alive Program as part of the regular 2000-2001 City budget process, provided that information in support of a specific request for funding is received by the City Manager from the Arts Alive citizens group by May 3, 1999. . Introduced, considered favorably on first reading, and ordered published this 2nd day of March, A.D. 1999, and to be presented for final passage on the 16th day of March, A.D. 1999. Mayor ATTEST: City Clerk Passed and adopted on final reading this 16th day of March,A.D. 1999. Mayor ATTEST: City Clerk • February 11, 1999 Mayor Ann Azari and City Council Members City of Fort Collins P.O. Box 580 Fort Collins, Colorado 80522 Dear Mayor Azari and Council Members: Enclosed please find a revised proposal for Arts Alive. This proposal is the result of sixteen months of work by over three hundred individuals who contributed their time, energy and expertise to the State of the Arts process, which was initiated by City Council members concerned with the future of the arts in Fort Collins. This endeavor is an excellent example of a community coming together to create a workable, dynamic plan for the future. It is important to note that Arts Alive, which evolved through the State of the Arts process, is not a product of City government, but rather a community-driven proposal. To ensure the success of this project, it is imperative that the City step forward now and invest in the future of the arts through Arts Alive. It is also vital that this support be viewed as an investment in the community, not as a Cultural, Library and Recreational Services program. • The current proposal represents the following revisions: • The budget has been revised primarily because it has not been possible to leverage large private donations without City support. Donors will be approached once organizational start- up funds have been secured from the City. • The request for City funding remains at$100,000 this year and$100,000 per year for the second and third years of operation. • The first year budget of approximately $130,000 includes the request to the City for $100,000 and $30,000 from fund-raising efforts and in-kind donations. • The Arts Alive goals have not changed. However, the timeline to accomplish these goals has. A solid foundation for a successful,visible organization will be laid in the first year, when the focus will be on establishing the United Arts Fund(UAF) and building the infrastructure required for the UAF. Once the UAF is well established, the focus of Arts Alive will be broadened to integrate the additional goals of the organization, such as marketing, advocacy, education, etc. - • Since the original timeline envisioned staff already in place,plans for the current year have been delayed by four to five months. • Objectives for the first year of operation include building a strong Board of Directors, hiring an Executive Director and part-time support staff person, educating the public and donor communities on Arts Alive, continuing to build strong relationships with the arts community and organizing one or two fund-raising events. • As a result of the revised budget, granting of funds to arts groups will not take place during the first year of operation. • The position of Marketing Director has been eliminated for the start-up period. • The software budget has been reduced by half. UAF software costs $20,000; only$10,000 has been allocated for the first year. A short-term software solution will be identified while the organization pursues funding and investigates purchase of a long-term solution. • The majority of costs in the initial budget have been reduced. The revised budget represents the minimum funding required for operation. City support for the first three years of Arts Alive is vital for a number of reasons. As charged by members of the City Council, the State of the Arts endeavor has created a dynamic, citizen- driven vision for the future of the arts in Fort Collins. In order for this community-created vision to become reality, it is vital that the City provide the requested funds. Arts Alive creates a new paradigm for funding and promoting the arts. The results will create benefits in multiple arenas: • The arts are a unifying force for Fort Collins' diverse population and can help the City define its identity. The arts are alive in the world's healthiest and most dynamic cities. • Through foresight and investment by the City, the project will get off the ground. Other donors will support Arts Alive only if the City shows a strong commitment to the project. • Arts Alive will help make the arts a part of everyday life for our citizens. As the public feels a sense of ownership and pride in the arts, a ballot initiative on the new Performing Arts Center gains strength. • The arts contribute dramatically to a healthy economy, as can be seen from the attached article on the economic impact of the arts in Colorado. • National studies demonstrate that students who are involved in the arts are more successful in all areas of their lives, from academics to interpersonal relationships. • arts Alive creates a new method for funding and sustaining local arts through the efficient organization of resources. • Three-year start-up funding by the City allows Arts Alive to develop optimal long-term funding sources. It is imperative to capitalize on the tremendous momentum created by the State of the Arts endeavor. The City of Fort Collins must take the next step. Roads can be built, but if they lead nowhere, there is no purpose for the journey. The 300-plus State of the Arts participants look forward to working with the City to pave a road to a vibrant future for all of us. Sincerely, The State of the Arts Steering Committee Contacts: Jennifer Beccard Corinne Govan Enclosures: Arts Alive Executive Summary Revised Arts Alive First Year Budget Colorado Council on the Arts: The Arts Industry in Colorado cc: John Fischbach ARTS ALIVE 0 Fort Collins Partnership For The Arts Executive Summary Imagine Fort Collins as a dynamic, creative destination for the arts. Envision: • The arts as a focal point for civic pride • Abundant performances to full audiences • Innovative artistic collaborations • Outdoor music festivals • Interactive children's programs • Theater and dance collaborations • Guest artists performing for well informed, appreciative audiences • Energetic events that are widely available and embraced by the community • The arts as a positive, unifying contribution to the life of the community. Arts Alive: Fort Collins Partnership For The Arts has this vision and can bring this vision to life. Arts Alive is a new private, non-profit organization that has as its mission to serve as the central arts agency for the Fort Collins community. Arts Alive seeks to: • Promote excellence in the arts • Increase awareness and visibility of the arts • Broaden the base of financial support for the arts • Ensure that local arts agencies are financially stable • Maximize the economic benefits the arts can provide for the community. Arts and culture are already a vital part of our community and the time for Fort Collins to take the next step in its artistic and cultural development has arrived. The next step will require artists to focus on producing high quality, and innovative programming which the community will embrace. It will require a new source of financial support that is sustainable into the future. A coordinated marketing and information effort will be a critical factor in elevating the status and visibility of the arts in Fort Collins. The next step requires partnerships between all facets of the community. Arts Alive will create vital partnerships between artists, business leaders, foundations, the Fort Collins Convention and Visitors Bureau, Colorado State University, Poudre School District, the City of Fort Collins, Larimer County government, the entertainment industry, audience members and the general Fort Collins community. Arts Alive, as Fort Collins Partnership For The Arts, is poised to take the next step and work to develop Fort Collins' cultural image and build an even greater community through the arts. The first priority of Arts Alive will be the creation of a United Arts Fund. Over the past 48 years, and in more than 90 communities nationwide, United Arts Funds have proven to be the best way to raise money to support local arts. United Arts Funds are loosely based on the United Way model and have been called"a cross between a United Way and a Chamber of Commerce for the arts." .The Washington Post has called United Arts Funds a"bright spot in the gray outlook for cultural funding." No two United Arts Funds are exactly the same as they must be tailored to the specific needs of an individual community. In Fort Collins, the Arts Alive United Arts Fund will centralize community fundraising efforts by creating a highly visible funding campaign. Funds raised will provide an ongoing stable base of support to diverse local arts organizations. The campaign will seek to raise awareness of the important role of the arts in the community and provide recognition for individual, corporate and institutional donors. The expectation is that the Arts Alive United Arts Fund campaign will attract many first time arts donors, and deliver well deserved recognition to those who help deliver the gift of the arts to our community. Arts organizations will be freed from the burden of continuous fundraising and be able to focus their energies on providing increasingly higher quality cultural offerings for the community. At the same time, businesses Will have an avenue to support the arts in Fort Collins through an accountable and cost effective program. The annual United Arts Fund public campaign is envisioned to run during the months of February and March. During the fall of the previous year, major donors (individuals, funding institutions, and businesses) will be solicited for pace setter donations. An important component of the campaign will be in the form of workplace giving programs. These programs are a growing segment of United Arts Funds nationwide and serve to increase funds available as well as build audiences. The funding campaign will play a major role in building the community's sense of ownership and pride in the artistic offerings available here. Once the annual funding campaign is successfully complete, the grant allocation process can proceed. The Arts Alive Allocations Committee will review applications for funding and will make grant recommendations to the Board of Directors for their final approval. Allocations will be divided between operational support for major artistic organizations and support for special projects and offerings in the community. The first granting category will recognize significant artistic contributions by well established arts organizations. The second granting category will encourage innovative and diverse offerings by small or emerging arts organizations. A portion of the funds raised during the campaign will be used to establish an endowment fund for the arts. The remainder of the campaign funds will be used for promotional and educational activities and for organizational expenses. The United Arts Fund will promote"one-stop giving", whereby businesses will be encouraged to "give one time in support of the arts"to the campaign. In return, the funded arts groups are ineligible to solicit operating funds directly from the businesses. The only type of additional local business financial assistance allowed is in the form of event sponsorships and program advertising, which are often looked at by the business as a marketing expense as opposed to a charitable donation. A"black-out period"will be in place during the February/March campaign, during which the arts groups are prohibited from pursuing even the limited business sponsorships and advertising that are allowed. Arts Alive will be governed by a community based board of directors. An extensive list of prospective board members has been developed and several of these individuals have expressed interest in participating. The board will represent all of the partnering constituencies including: • The City of Fort Collins • Colorado State University • Poudre School District • Fort Collins Convention and Visitors Bureau • Large and small businesses • Financial institutions • Foundations • Private donors • Arts community • Entertainment industry • Media • Audience members. •Maintaining a diverse board of between 15 and 25 directors: • 1\/Cinimizes undue influence of a single member or group • Encourages community acceptance • Provides for less burden on individual members • Represents all constituencies as well as the total community-at-large • Ensures organizational accountability to all constituencies. The Arts Alive board will be responsible for overseeing all of the activities of the organization including: • Fundraising and grant allocations • Marketing and communications • Special resource development • Education and awareness • Leadership and advocacy for the arts • Overall management of the organization. Also vitally important to the Arts Alive effort will be extensive community volunteerism. The board of directors as well as the standing and special committees will be lead by and filled with a broad and diverse base of volunteers. The advantage of such representation is community involvement, ownership, and pride in the arts. A special focus of the Arts Alive work will be to enhance the relationship between the artists and the community. The Fort Collins Area Arts Council has already indicated a desire to partner with Arts Alive to accomplish the two organizations' mutual goals. We are working together to create a unified effort to further promote the arts in Fort Collins. Travelers and local residents alike appreciate abundant and varied opportunities to enjoy artistic and cultural events. Through its promotional and fundraising activities, Arts Alive will lead efforts to connect people with the activities they want to enjoy. We anticipate a mutually beneficial relationship between Arts Alive and the Fort Collins Convention and Visitors Bureau as we work together to promote Fort Collins as a destination for art lovers throughout the region. Another early focus of Arts Alive will be researching and pursuing a permanent funding source, such as designated revenues through a Cultural Tax District, Seat Tax on entertainment, or other public funding options. Arts Alive will work closely with the City of Fort Collins and other interested institutions to ensure that the optimal funding source be pursued. Once the United Arts Fund is well established, Arts Alive will focus on marketing, education, and advocacy for the local arts. Arts Alive will strive to make the arts a part of everyday life for the citizens of Fort Collins and enhance the artistic opportunities available here. Arts Alive: Fort Collins Partnership for the Arts is not an end in itself but a means to realizing the vision of • Fort Collins as a community where the arts inspire and sustain the human spirit. It will be the mission of Arts Alive to champion the arts for the people of Fort Collins and to marshal the greatest possible support for the arts from the community. Through Arts Alive we can be a community where the arts celebrate cultural diversity and where participation and creativity flourish. Proposed Budget ARTS ALIVE: Fort Collins Partnership for the Arts 02/11/99 IpRWECT R.EXPENSES CASH WKIND DONATION (— 'Office Ex nses 1 ice Rental Gold Suite) $6,000.00 (Post Once Box $100.001 'Bulk Mailing Penn@ 1 $170.00 :Phone a lines plus fex/modem $2,500.001 Com uters $3,000.00 i iSoftware $10,000.001 MmImamet Service $350.001 S 1upplies, $1,500.00 (Insurance-Oranaational Liability i $1400001 (Insurance-Directors and Officers $2,000.001 Accountant $1,000.001 LetterheticklEnvelopas 1 $1,000.00 Publications/Memberships 1 $700.001 :Business Cards $200.00 IAttome Fees $1.000.001 :Bank Feas $72.001 �Commun Foundation Fee Fisea)S sot 1 $1.000.00 :Business Start-up Fees IRS,etc. $1,500.001 (Personnel I 'Sala -Executive Director $40,000.00 1 '.Benefits-Executive Director $10,000.001 'Salary/Benefits-1/2 time Admin.Support E20,OlX).00 Board/Organizational Development54,000.001 ,Meeting Cogs $500.001 'Job Search Cogs $2,500.00 I Marketing Brochure/Promo Packets Printing and Production 1 $3.000.001 $2.500.001 1 Photographic Services $2.000.001 Logo Design �00.001 iAdvertisin Colomdoan,other $2.000.001 $5,000.001 Donor UevelopmerauKocognition $2,600.001 '.Donor Recognition Event 1 $2,000.00' postage $2.000.001 Newsletters I $2,500.00i .Miscellaneous Marketing $1.000.001 I i I ;PnOgrannMingEvent one One Costs-Campaign Kickoff I $2 500.001 I I Other :Contingency Fund 5%United Way model I 5GM41.60 1 I TOTAL EXPENSES $130,296.601 $14,000.00: I (PROJECTED INCOME i � P, L ( S J L C Tble i A Vital Contributor to the Economic Prosperity of the state • Inaddicion:oworkerscmolovcd di:cerlyin Colorado's non-profit arts industr:the arcs industr:in our state includes a number or other workers: graphic artists, archirec:s,arc teachers, commer- vial photographers.as well as visual,performing and literary art. ism Collectively, these workers coral 1.590b of Colorado's %voricrorce—a rate slightly higher than the nauonai ratio!137Ro) Preliminary Findings of artiste in the workforce. A Summary by 't Two million persons paid to attend an arts event in Colorado last Fran Holden, - year, and.mother nearly two million persons, particularly stu. Executive Director dents and families.were served by non-profit arts organizations ® !ter It cn; ic'e. • Colorado artists spent more than s44 million in the scare m pur- chase art supplies and materials. With this special issue. the Council is pleased to provide pre- • Colorado benefctsgreadyrrom:ou.ists participating inzu;c:i,i- liminan•ir.Forma;ion on i[s third s;a;e•.cide stud:of the emnomie ties. Nor on!v do rourisrs who travel to Colorado to attend a:rs mpaet or the arts in Colorado. Last sprinv. the Council commis- r.cries burg clew dollars cc c4 hate,ere:also r.,akc sioned this stud•: from tat %Xescern Stares arts Fadera:ion. We and opporrunicies availabie to permanent residents :cat migh: wanted to caotu: the true nature of the arcs industry here: the not otherwise be mailable.The:do this be-c:ra:in_•a demand . non-prone sector as tveil ^e.arts wori<:orce of Me sate. including For arts prc_.amming and enec:ive!y subsidi:ine them for Pe.- individual arnsrs. manent resmcnrs hrough their financial succorr.As a;-suit of Pre!incinar findings of this stud.; cc which maav of you con- this acrivin: the scare enjoys more arts e•:c-ts of qu_,k,in its cribu;ed, conclude that the arcs industr: in Colorado is a vital resort communities than it could normally sustain rhrough the contributor to the economic prosperity- of our snm. Colorado's financial and volunteer supporr of oermanent residens alone. arts industry is broad and diverse and a vital source of employ- Rvovearsaeo,theNacionaiEndcwmencfcrcheArtstwassi,:n- ment revenue and murisc attractions for the scare. candvdow-nsized and res",czured.The Council,too,losrever-0°o During fiscal year 1993, the arts contributed to the emnorrle of its :federal hands.As a result. many Colorado arts organizations prosperity of Colorado in a number of important ways. suffered reductions in public funds and were forced cc reduce the • Direr,spending by non-profit arts organizations in Colorado ro- size and scope of their operations. Because of the important role caled sU 1 million.This represents a 54; million increase over the arts play in the economy of the state,the Colorado Council on 1990 and a 5100 million increase over 19U.The Colorado Coun- the Arts is committed to identifying the funding needed by arts ail on the Arts has played an important cote in stimulating the organizations and making it available to them to ensure their con- growth of this industn-through grants and ceehnicai assistance tinued growth. —parricularly n in non-merropoliran areas of the might Colorado on-profit arts organizations and individual artists ask, what would the stare of Colorado spend cc are.aa a 51 e 1 are working in a very different environment than they did cen years million industr:to the scare-Whar would the state do cc main- ago.The booming state economy and explosion in entertainment Cain chat industry-? options has presented the arcs hem with ma:;:new and dinculr Arts workers in Colorado's non-prot"rr arcs industry paid 31.7. mil- challenges.The Council has been called upon to hc!o arts orgari lion instate income ti<a.Thertore.the s 1.a4 the state appri:96- nations and artisrs survive and thrive in this tray environment for arts the Council can be vic,vcd as being parrially underwritten the benefit of all Coloradans.This study is a step -Mac ac dire-:fen. by the income rx revcnues chat Bow ro the stare treasury from The Council looks forward to Fearing from you about how workers emoloved in Colorado's non-profit arcs irduscn.. you will use this information. iI GENERAL FUND 10 YEAR BUDGET PLAN 02/23/99 REVISED REVISED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Revenue Sales &Use Taxes Transferred Sales Tax $34,005,454 $35,229,124 $37,543,859 $39,958,581 $42,494,080 $46,253,822 $49,241,156 $52,473,704 $55,710,710 $59,035,472 Use Tax Ceiling 5,200,000 5,800,000 6,100,000 6,225,000 6,500,000 6,900,000 7,150,000 7,500,000 7,800,000 8,100,000 Other Taxes 9,046,535 9,313,028 9,566,970 9,833,620 10,108,135 10,390,749 10,681,702 10,981,241 11,289,621 11,607,106 Licenses&Permits 1,444,781 1,446,876 1,442,107 1,468,701 1,556,169 1,422,379 1,454,301 1,588,783 1,476,407 1,509,636 Intergovernmental 820,049 845,072 867,023 889,640 912,946 936,966 961,722 987,242 1,013,561 1,040,677 Charges for Services 9,336,859 9,810,096 9,723,151 10,054,974 10,451,340 10,742,624 11,109,790 11,524,226 11,866,285 12,277,261 Fines&Forfeitures 516,585 561,164 500,116 515,119 530,573 546,490 562,885 579,772 597,165 615,080 Earnings on Investments 850,000 660,000 609,000 597,000 585,000 600,000 600,000 600,000 600,000 600,000 Miscellaneous Revenue 252,900 237,900 253,502 253,607 226,215 226,327 226,442 226,560 226,682 226,807 Total Revenue $61,473,163 $63,903,260 $66,605,727 $69,796,242 $73,364,459 $78,019,357 $81,987,998 $86,461,527 $90,579,420 $95,012,037 Use of Reserves-Budget 1,179,573 793,000 Use for One-Time Added Commitme 561,650 2,063,796 1,795,824 1,725,145 1,675,459 1,259,956 1,128,156 470,723 161,940 168,058 Total Revenue and Reserves $63,214,386 $66,760,056 $68,401,551 $71,521,387 $75,039,918 $79,279,313 $83,116,154 $86,932,250 $90,741,360 $95,180,095 Expenses Administrative 7,794,616 7,808,991 7,663,380 7,915,647 6,176,805 8,446,541 8,725,352 9,013,544 9,311,434 9,619,350 Community Planning&Environment 4,102,754 4,284,241 4,263,861 4,397,885 4,536,461 4,679,746 4,827,900 4,981,089 5,139,484 5,303,264 Cultural, Library&Recreational 8,568,325 8,474,433 8,646,939 8,928,451 9,219,266 9,519,694 9,830,056 10,150,679 10,481,907 10,824,092 Executive, Legislative&Judicial 4,186,465 4,079,692 4,019,045 4,311,721 4,290,867 4,602,171 4,581,170 4,912,296 4,891,218 5,243,436 Police 14,727,223 14,947,088 15,456,338 15,982,995 16,527,656 17,090,938 17,673,478 18,275,939 18,899,002 19,543,375 Transportation 1,903,618 1,824,222 1,887,114 1,952,178 2,019,490 2,089,127 2,161,171 2,235,703 2,312,811 2,392,584 Non-Departmental-Other 1,620,860 3,378,820 3,465,562 3,552,484 3,643,228 3,735,892 3,831,574 3,930,378 4,033,411 4,138,782 -Contributions to Poudre Fire Auth. 9,345,324 9,801,204 10,270,930 10,763,658 11,280,524 11,840,350 12,428,168 13,045,376 13,693,445 14,373,917 Transfers to Other Funds 10,112,227 10,200,070 10,415,211 10,794,535 11,188,615 11,560,656 11,945,247 12,342,813 12,753,794 13,178,644 Charges to Capital Funds (1,200,870 (1,222,412 (1,248,758) (1,275,895) (1,303,846) (1,332,635) (1,362,288) (1,392,831) (1,424,290) (1,456,693) Total Expenses $61,160,542 $63,576,349 $64,839,622 $67,323,859 $69,579,067 $72,232,481 $74,641,827 $77,494,986 $80,092,216_ $83,160,751 Commitments: Ongoing Horticulture Center 0&M --- --- 215,000 222,525 230,313 238,374 246,717 255,353 264,290 273,540 City Office Building 0&M --- --- 370,000 382,950 396,353 410,226 424,584 439,444 454,824 470,743 Parking Garage 0&M --- --- 120,000 124,200 128,547 133,046 137,703 142,522 147,511 152,674 Cottonwood Park 0 &M --- - 24,400 25,254 26,138 27,053 28,000 28,980 29,994 31,044 Stewart Case Park 0&M --- --- 52,200 - 54,027 55,918 57,875 59,901 61,997 64,167 66,413 Facilities M&R --- --- 200,000 407,000 621,245 842,989 872,493 903,030 934,637 967,349 Street Oversizing -- --- 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Court Administrator --- --- 35,000 36,225 37,493 38,805 40,163 41,569 43,024 44,530 Harmony Park 0&M --- --- --- 36,000 37,260 38,564 39,914 41,311 42,757 44,253 Hickory Park 0 &M --- -- --- -- 37,300 38,606 39,957 41,355 42,803 44,301 Ridgewood Hills Park 0 & M --- --- --- --- 22,400 23,184 23,995 24,835 25,705 26,604 Fossil Creek Park 0&M --- --- --- --- 506,900 524,642 543,004 562,009 581,679 602,038 GENERAL FUND 10 YEAR BUDGET PLAN 02/23199 REVISED REVISED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Regional Trails --- --- 14,408 22,368 30,868 39,936 49,600 59,892 70,845 82,490 Registry Ridge Park 0&M --- --- --- --- --- 19,300 19,976 20,675 21,398 22,147 Provincetown Park 0&M --- -- --- --- --- 19,300 19,976 20,675 21,398 22,147 EPIC Sheet of Ice 0 &M --- --- -- --- --- 198,790 205,748 212,949 220,402 228,116 Waterfield Park 0 &M --- --- --- --- --- --- 20,000 20,700 21,425 22,174 Northside Aztlan 0&M --- --- --- --- --- --- --- 595,000 615,825 637,379 Waterglen Park 0&M --- --- --- --- --- --- 39,910 41,307 42,753 44,249 Rich��arddss Lake Park 0&M _ --- --- -- --- --- --- 12,000 12,420 12,855 13,305 Erj�u141a1+9y(ytg¢tge(i a "' 38,813 40,171 41,577 43,032 44,538 46,097 47,710 49,380 IT Systems Analysts(3) --- --- 230,490 238,557 246,907 255,548 264,493 273,750 283,331 293,248 Harmony/1-25 Interw an a O&M --- 140,000 144,900 149,972 155,221 160,653 166,276 172,096 178,119 23,176 23,987 24,826 25,695 26,595 27,525 28,489 29,4860 ,As Ty SRO/Cops Ahead - --- --- --- 130,000 134,550 139,259 144,133 149,178 154,399 159,803 Transportation Maintenance --- -- --- --- --- 880,000 2,253,525 3,042,000 3,585,000 3,829,000 800 MHZ Radio System 262,000 262,000 262,000 262,000 262,000 262,000 262,000 262,000 Community Mediation Program 70,679 73,153 75,713 78,363 81,106 83,944 86,883 89,923 Bul ` it (1fl i-- 8 " 19,806 20,499 21,216 21,959 22,728 23,523 24,346 25,198 128,017 132,498 137,135 141,935 146,903 152,044 157,366 162,873 51,750 53,561 55,436 57,376 59,384 61,463 63,614 65,840 j Pay Plan 1,636,680 1,693,964 1,753,253 1,814,616 1,878,128 1,943,862 2,011,898 2,082,314 Police Staffing 587,586 1,228,054 1,924,976 2,682,134 3,503,537 4,445,732 5,410,980 6,511,207 - Median Maintenance 36,165 54,841 56,760 58,747 60,803 62,931 65,134 67,413 Affordable Housing Land Bank 500,000 600,000 500,OOO1 500,000 500,000 500,000 500,000 500,000 Affodable Housing Production 21,3901 201,3001 437,1411 728,2991 1,068,7541 1,465,8681 1,928,4401 2,466,176 Total Ongoing 0 252,716 5,077,559 6,408,034 6,252,197 10,794,873 13,600,918 16,532,217 18,739,974 20,867,478 One-Time Cottonwood Park --- --- 30,000 Stewart Case Park --- --- 65,126 Facilities M& R --- --- 400,000 200,000 Streets Storm Payback --- --- 110,000 150,000 Transp. Payback to Communicatio --- --- 40,000 Hickory Park -- -- 350,000 350,000 46,500 Harmony Park --- --- --- 45,000 Ridgewood Hills Park --- --- --- 27,900 Fossil Creek Park --- --- --- --- 465,100 Regional Trails --- --- 8,136 4,210 4,358 4,510 4,668 4,832 5,001 5,176 Registry Ridge Park --- --- --- --- --- 24,100 Provincetown Park --- --- --- --- --- 24,100 Waterfield Park --- -- --- --- --- --- 25,000 Waterglen Park --- --- --- --- --- --- 49,800 Richards Lake Park --- - --- --- --- --- --- 14,500 Temporary Parking GENERAL FUND 10 YEAR BUDGET PLAN 02/23/99 REVISED REVISED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 ` 0 Harmonyll-251ilerchange --- 100,000 100,000 Transit Center . 550,000 750,000 1,000,000 1,069,723 890,475 315,000 i Police Staffing --- --- 120,512 125,935 131,601 137,523 143,713 150,891 156,939 162,882 Median Maintenance -- --- 22,050 Total One-time 561,650 2,063,796 1,795,824 1,725,145 1,675,459 1,259,956 1,128,156 470,723 161,940 168,058 Total Commitments 561,650 2,316,512 6,873,383 8,133,179 9,927,656 12 054,829 14,729,074 17,002,940 18,901,914 21,235,536 Net Revenue&Expenses $1,492,194 $867,195 ($3,311,4541 ($3,935,6511 ($4,466,8051 ($5,007,997) ($6,254,747) ($7,565,6761, ($8,252,770) 1$9,016,192) BB innin Undesf hated 04,248,101 $7,285,271 $8,246,774 $4,230,561 ($309,347) ($5,289,888)($10,303,414)($16,333,713)($22,733 825)1$29,424,799) Net Revenue&Expense 1,492,194 867,195 13,311,454) (3,935,651) (4,466,805) (5,007,997) 16,254,747) (7,565,6761 (8,252,770) (9,016,192) Appropriations from Reserves (1,741,223 (2,856,796 (1,795,824) (1,725,145) (1,675,459) (1,259,956) (1,128,156) (470,7231 (161,940) (168,058) Transit Center Land&Improvement r`�kQe w Use Tax Excess 3,853,879 2,348,491 1,641,066 1,670,888 1,711,723 1,804,427 1,902,604 2,186,286 2,273,737 2,477,424 Reserved for Mfg. Use Tax Rebate (550,000 (550,000 (550,000) (550,000) (550,000) 1550,0001 (550,000) (550,000) (550,000) (550,000) Add to Lodging Tax Reserve (17,680 (15,387 0 0 0 0 0 0 0 0 Endlaq Undesl !rated $7 285 271 $8,246,7741 $4 230 567 ($309,3471 4$5.289.88811$10,303,414) $16 333 713 $22 733 825 $29 424 799 $36 681 625 Ending Undesignated As a %of Total Revenue &Reserves Use 11.52% 12.35% 6.18% -0.43% -7.05% -13.00% -19.65% -26.15% -32.43% -38.54% Cultural, Library and Recreational Services Lincoln Center City of Fort Collins MEMORANDUM To: City Council Thru: John Fischbach, City Manager Thru: Mike Powers, Director, Cultural, Library and Recreation Services From: David Siever, Director, Cultural Services and Mark Breimhorst, Associate Director, Cultural Services Date: February 25, 1999 Re: Seat Tax Analysis At the last meeting of the finance committee, Councilmember Mason asked us to provide City Council with additional information regarding the possible implementation of a "seat tax". A seat tax is an admissions tax that is imposed on entertainment and sporting events. Councilmember Mason's suggestion was that this might be considered as a possible revenue source for Arts Alive. Denver and Boulder were the only cities surveyed that had an admissions tax. The City of Boulder has 5% admissions tax that is imposed on "...every person who pays to gain admission to any place of event in the city that is open to the public". This includes events held at sports arenas, cultural and recreation facilities, movie theaters, and bars. Events sponsored by agencies of the federal, state (including the University of Colorado), school and city `When acting in their governmental functions" are exempt from this ordinance. Non-profit charitable and religious organizations must pay unless they can prove the activity they are charging admission for is directly related to their"regular functions and capacities". Charitable fundraisers held by non-profit groups are charged this tax. The non-profit groups need to obtain a special license to be exempt from the ordinance. Businesses and organizations that charge admissions for events are responsible for the collection, submittal and reporting required by the City. The City of Boulder received $375,883 from this tax in 1997 and $342,032 in 1998. The decline in revenue was attributed to movie theaters moving outside the city limits of Boulder. The tax money collected goes into their general fund and is not designated for a particular use. 417 West Magnolia • Fort Collins,CO 80521-2646 • (970)221-6735 • FAX(970)484-0424 What would be the pros and cons of a similar tax in Fort Collins? PROS • It would raise money for the general fund which might be used to fund Arts Alive • The tax would be relatively easy to collect coNS • Movie theaters, arts, religious and charitable organizations, and bar owners would be opposed to a tax on their admissions • Those same groups would not like to apply for licenses, collect the taxes and submit reports. • If a tax in Fort Collins were instituted like it exists in Boulder, arts organizations being charged the tax would probably dislike the fact that state (Colorado State University), school and city sponsored events would be exempt from paying the tax. Related Information The City of Fort Collins considered instituting a similar admissions tax approximately ten years ago and there was substantial resistance to the tax by the owners of the local movie theaters. The proposal at that time was that such a tax would be used to support the arts in Fort Collins. They were opposed because they would be helping to fund their competition by paying a tax that would support local arts organizations. Other cities that were surveyed did not have an admissions tax, but some had a "facility fee", or ticket surcharge (for example: $.25 per ticket sold). This fee is assessed on all tickets sold at a particular venue to be used for maintenance and upgrades at that facility. The Union Colony Civic Center in Greeley, the Pikes Peak Center In Colorado Springs, the Macky Auditorium in Boulder, and the Cheyenne Civic Center in Cheyenne all have this kind of surcharge. Arts organizations that use the Lincoln Center consider the Center's non- profit rental rates as part of the City's support of the arts. If their ticket prices were to increase, they would like the revenue to go to them, not for maintenance of the Lincoln Center. Cities surveyed it Name of tax/fee Amount Who Rays tax Where funds ao Pueblo None NA NA NA Greeley Facility fee .50 per tic Ticket buyers Union Colony Civic Center for Maintenance Cheyenne Facility fee .20 per tic Ticket buyers Cheyenne Civic Center for Maintenance Colo Springs Facility fee .50 per tic Ticket buyers Pikes Peak Center for Maintenance • Macky(CU) Facility fee 10 per tic Ticket buyers Macky Auditorium for Maintenance Boulder Admissions tax 5% All events City General held in city Fund Denver Seat tax 10% ticket buyers at Maintenance events held at at City facilities City facilities Notes: 1. The State of Wyoming currently has a 5% state sales tax which is collected for ticket sales at events. The State of Colorado's sales tax is not collected on ticket sales. 2. The above cities were selected because they have performing arts facilities.