HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/18/2001 - DISCUSSION OF WHETHER OR NOT TO MODIFY RESOLUTION AGENDA ITEM SUMMARY ITEM NUMBER: 26
DATE: September 18, 2001
op FORT COLLINS CITY COUNCIL FROM: John F. Fischbach
SUBJECT :
Discussion of Whether or Not to Modify Resolution 99-46 - Should Transit be Categorized as a
"Secondary" Services or a"Primary" Service?
RECOMMENDATION:
EXECUTIVE SUMMARY:
In April 1999, the City Council adopted Resolution 99-46 the outline several principles to follow
for budget planning including placing the City's services into one of three categories: Primary,
Secondary,and Support. The policies outlined in this resolution were subsequently adopted by City
10 Council as part of the City's Financial Management Policies.
Recently,Councilmembers expressed a desire to discuss whether or not transit services and facilities
should be moved from "Secondary Services" and placed within the "Primary Services" category.
This is an opportunity for Council to discuss and provide direction to the City Manager as to
whether or not the Financial Management Policies are to be modified.
BACKGROUND:
In 1999,the City Council adopted Resolution 99-46 to aid in planning for the allocation of resources
to meet the good of the whole community. Among the adopted principles,was one that categorized
the City's services into three categories:
• Primary Services—those services that are necessary for the good of the entire community. They
are basic to the safety, health and welfare of a community, and the allocation of all resources
necessary for the provision of primary services is the first priority in budget preparation.
Primary services are:
Police Water Wastewater
Fire Streets Stormwater
Building Inspection Electric Natural Resources
Development Review Engineering Affordable Housing
Facilities Maintenance
DATE: September 18, 2001 2 ITEM NUMBER: 26
(all public facilities
including parks)
Note: The services typically part of this category are those that most people consider essential
to a community's basic functioning. In other words, if a new community is created or a major
disaster devastated a community, these are the services and facilities that would be needed to
ensure the basic safety, health and welfare of citizens living in the community.
• Secondary Services—those services that enhance the quality of life and, to many, increase the
value of living and working in a community. While the value of secondary services is
recognized, the allocation of resources to those services shall be considered only after the
necessary allocation has been made to fund primary services. Secondary services are:
Recreation Transfort Neighborhood Resources
Perforating Arts Human Rights Library
Cemeteries Golf Human Services Contract
Airport Parks Natural Areas
Museum
Note: These services are very important. They give our community its "heart and soul."
However,by definition,these services are not essential to basic functioning of a community of
people. They do indeed enhance and certainly set apart our community from other communities.
• Supnort Services—those services that provide the management, guidelines and operational
assistance to carry out the provision of primary and secondary services. Resources should be
allocated to support services to support the level and quality of primary services expected and
desired by the community. Support services are:
General Administration Finance Legal
Budget Human Resources City Clerk
Clerical Support Fleet Management
Information Technology Geographic Information Systems
Note: For the most part,these services are provided to the various operating departments. For
some, information may be directly delivered to citizens—such as maps from the GIS service,
copies of ordinances and resolutions from the Clerk's Office—but this is not an essential nature
of their business. Primary and Secondary Services depend on these services to support and
supply necessary information and service for their operations.
The attached Resolution 99-46 includes a graphic that depicts the current array of City services and
into which category—primary, secondary and support—they are currently placed.
Councilmembers indicated a desire to discuss whether or not transit services and facilities should
be placed under the "Primary Service" category rather than the "Secondary Services" category.
Perhaps a series of questions may help guide the Council discussion and determination of this
question:
a. How does Council define "transit services"? What is and is not included in transit
services?
DATE: September 18, 2001 3 ITEM NUMBER: 26
b. In what ways are transit services and facilities essential to a community's safety,health
or welfare?
c. In what ways do transit services and facilities match, or not, the definition of primary
services? Secondary services?
*These notes are not a part of Resolution 99-46.
Council Action Requested
The action requested is for City Council to provide direction to the City Manager,by motion, as to
whether or not to prepare an amendment to the City's Financial Policies to modify and remove
transit services from the Secondary Services category and place it in the Primary Services category?
Attachments
A. Resolution 99-46 Setting Forth the Principles for Budget Planning
B. Financial Management Policies
Exerpt:Table of Contents
Section 1.6 Principles for Budget Planning
ATTACHMENT A
RESOLUTION 99-46
OF THE COUNCIL OF THE CITY OF FORT COLLINS
SETTING FORTH THE PRINCIPLES FOR BUDGET PLANNING
WHEREAS, the City of Fort Collins provides a wide variety of services to the residents of
the community; and
WHEREAS, it is the responsibility of City Council to adopt a budget and manage the
available resources during the fiscal year; and
WHEREAS, there are limited resources to meet the many needs of the community; and
WHEREAS, the allocation of limited resources and the prudent management of those
resources for the good of the whole community is a basic tenet for development of the City's budget;
and
WHEREAS, to aid in planning for the allocation of resources to meet the needs of the
community and to prudently manage those resources to meet the overall good of the community,
certain principles are needed to serve as a foundation for the development of the City's budget.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
0 COLLINS as follows:
Section 1. That the following principles are hereby adopted for budget planning:
a. The City should strive to attain the lowest possible interest rates on debt in order to
minimize the cost to taxpayers and users of City services.
b. The City should maintain adequate reserve levels to ensure minimal loss of service
to the community should there be unforeseen reductions in revenues or a catastrophic
occurrence.
C. Employees of the City are a valuable resource in providing services to the
community,and a compensation policy should be maintained for City employees that
reflects the value of attracting and retaining quality employees.
d. "Primary services," as described on Exhibit "A", attached hereto and incorporated
herein by this reference, are those services that are necessary for the good of the
entire community.They are basic to the safety,health,and welfare of the community,
and the allocation of all resources necessary for the provision of primary services is
the first priority in budget preparation.
e. "Secondary services," as described on Exhibit "A", are those services that enhance
the quality of life of the residents of the City and, to many, increase the value of
living and working in the community. While the value of those secondary services
is recognized, the allocation of resources to those services shall be considered only
after the necessary allocation has been made to fund primary services.
f. "Support services," as described on Exhibit "A", provide the management,
guidelines, and operational assistance to carry out the provision of primary and
secondary services. Resources should be allocated to these support services to
provide the level and quality of primary and secondary services expected and desired
by the community.
g. No new services, other than those identified as primary services on Exhibit A, shall
be undertaken by the City until all existing primary, secondary,and support services
have received a sufficient level of funding to meet the needs of the community.
h. Any adjustment to the existing budget shall take into account the effect that such
adjustment would have on future budget resources.
Section 2. That the City Manager is hereby directed to prepare a proposed amendment
to the City's Financial Management Policies which would incorporate the foregoing principles into
said policies, and to present to the same to the City Council for its consideration as part of the
upcoming budget process for fiscal years 2000 and 2001.
Passed and adopted at a regular meeting of the City Council held this 20th day of April,A.D.
1999. �
� 1 �
Mayor
ATTEST:
- I,'" .) .-,I —
City Clerk
s �
City Services
Primary Secondary
Police Water Recreation Transfort
Fire Wastewater Performing Arts Neighborhood Resources
Streets Stormwater Museum Human Rights
Building Inspection Electric Library Human Services Contract
Airport
Development Review Natural Resources Cemeteries
Facilities Maintenance Affordable Housing Golf
(all public facilities Parks
including parks)
Natural Areas
Pedestrian Access
Engineering
Those services that are basic to the safety, health and welfare of a
community. Typically, these are services that are supported by the
Those services that enhance the quality of life and to many increase
general tax payer or rate payer for economies of scale and for the
the value of living and working in a community
good of the entire community. .
Support Services
General Administration Finance
Legal Budget
Municipal Court Human Resources gy um/
Clerical Support City Clerk
Information Technology Fleet management
Geographic Information Systems
Services that provide the management, guidelines and operational assistance to carry out the primary
W
and secondary services.
D
ATTACHMENT B
FINANCIAL MANAGEMENT POLICIES
TABLE OF CONTENTS
The Financial Management Policies are a compendium of all City policies that
shape the Budget. They are intended to assist the Council and the City Manager
in preparing the Budget and help communicate to residents and customers how
the community goals are being addressed.
PAGE
BUDGET POLICY
1.1 Overview ..........................................................................45
1.2 Charter Process Requirements ........................................45
1.3 Changes to Adopted Budget ............................................46
1.4 Lapsed Appropriations...................................................... 47
1.5 Budget Philosophy and Preparation .................................47
1.6 Principles for Budget Planning ......................................... 49
REVENUE POLICIES
2.1 Revenue Limitation........................................................... 50
2.2 Revenue Review, Diversity, & Monitoring......................... 51
2.3 Fee Policy......................................................................... 52
2.4 Sales and Use Tax Distribution ........................................ 54
2.5 Private Contributions........................................................ 54
GENERAL POLICIES
3.1 Administrative Charges .................................................... 55
3.2 Payment in Lieu of Taxes (PILOT) ................................... 56
3.3 Lease-Purchase ............................................................... 56
3.4 Human Resource Management and Productivity ............. 57
3.5 Medical Insurance and Retirement Plan........................... 58
3.6 Facility Maintenance and Repairs .................................... 60
3.7 Poudre Fire Authority-Revenue Allocation Formula ......... 61
3.8 Rebate Programs .............................................................62
FUND POLICIES
4.1 General Fund ...................................................................62
4.2 Enterprise Funds.............................................................. 64
4.3 Internal Service Funds...................................................... 69
4.4 Special Revenue and Debt Service Funds....................... 70
43
RESERVE POLICIES
5.1 Policy Statement .............................................................. 74
5.2 Types of Reserves............................................................ 74
CAPITAL IMPROVEMENT FUNDS
6.1 Citizen Participation.......................................................... 77
6.2 Capital Improvement Policy.............................................. 78
6.3 Capital Improvement Program.......................................... 78
DEBT POLICIES
7.1 Policy Statement .............................................................. 80
7.2 Authorization for Municipal Borrowing .............................. 81
7.3 Conditions for Using Debt................................................. 81
7.4 Debt Indicators and Target Levels of Debt....................... 81
7.5 Sound Financing of Debt.................................................. 82
7.6 Financing Methods........................................................... 82
7.7 Bond Market Disclosure ................................................... 83
CASH MANAGEMENT AND INVESTMENT POLICY
8.1 Policy Statement .............................................................. 84
8.2 Scope .... .......................................................................... 84
8.3 Objectives......................................................................... 84
8.4 Delegation of Authority..................................................... 84
8.5 Prudence.......................................................................... 85
8.6 Eligible Investments.......................................................... 85
8.7 Reporting and Review...................................................... 85
8.8 Ethics and Conflicts of Interest......................................... 86
8.9 Policy Revisions ............................................................... 86
ECONOMIC DEVELOPMENT POLICY
9.1 Policy Statement .............................................................. 86
9.2 Role of the City of Fort Collins.......................................... 86
9.3 Role of the Private Sector................................................. 87
9.4 Role of Outside Entities.................................................... 88
44
Council study sessions are held in September and October. The budget for the
ensuing budget term is adopted in November.
1.6 PRINCIPLES FOR BUDGET PLANNING
The City provides a wide variety of services to the residents of the community. It is
the responsibility of City Council to adopt a budget and manage the available
resources to best meet the service needs for the overall good of the community.
To aid in planning for the allocation of resources to meet the good of the whole
community, Council adopted Resolution 99-46 that set forth the Principles for Budget
Planning. Those Principles as adopted by Council are as follows.
a. The City should strive to attain the lowest possible interest rates on debt in
order to minimize the cost to taxpayers and users of City services.
b. The City should maintain adequate reserve levels to ensure minimal loss of
service to the community should there be unforeseen reductions in revenues
or a catastrophic occurrence.
C. Employees of the City are a valuable resource in providing services to the
community, and a compensation policy should be maintained for City
employees that reflects the value of attracting and retaining quality
employees.
d. Primary services are those services that are necessary for the good of the
entire community. They are basic to the safety, health, and welfare of the
community, and the allocation of all resources necessary for the provision of
primary services is the first priority in budget preparation. Primary services are
Police Water Wastewater
Fire Streets Stormwater
Building Inspection Electric Natural Resources
Development Review Engineering Affordable Housing
Facilities Maintenance Pedestrian Access
(all public facilities
including parks)
e. Secondary services are those services that enhance the quality of life of the
residents and to many, increase the value of living and working in the
community. While the value of secondary services is recognized, the
allocation of resources to those services shall be considered only after the
necessary allocation has been made to fund primary services. Secondary
services are
Recreation Transfort Neighborhood Resources
Performing Arts Human Rights Library
Cemeteries Golf Human Services Contract
Airport Parks Natural Areas
Museum
49
f. Support services provide the management, guidelines, and operational
assistance to carry out the provision of primary and secondary services.
Resources should be allocated to support services to support the level and
quality of primary and secondary services expected and desired by the
community. Support services are
General Administration Finance Legal
Budget Human Resources City Clerk
Clerical Support Fleet Management
Information Technology Geographic Information Systems
g. No new services, other than those identified as primary services, shall be
undertaken by the City until all existing primary, secondary, and support
services have received a sufficient level of funding to meet the needs of the
community.
h. Any adjustment to the existing budget shall take into account the effect that
such adjustment would have on future budget resources.
REVENUE POLICIES
2.1. REVENUE LIMITATION
In 1992, voters approved an amendment to the Colorado Constitution that places
limits on revenue and expenditures of the State and all local governments. Even
though the limit is placed on both revenue and expenditures, the constitutional
amendment in reality applies to a limit on revenue collections. Growth in revenue is
limited to the increase in the Denver-Boulder Consumer Price Index plus local growth
(new construction and annexation). This percentage is added to the preceding year's
revenue base, giving the dollar limit allowed for revenue collection in the ensuing
year. Any revenue collected over the limit must be refunded to the citizens. The City
has the option of placing a ballot measure before the voters asking for approval on
retaining the revenue over the limit. Federal grants or gifts to the City are not
included in the revenue limit. City "enterprises" (electric, water, wastewater and
stormwater utilities) are exempt from the imposed limits.
In November 1997, Fort Collins' voters approved a ballot measure that allows the City
to retain revenues that exceed the growth limit imposed by Article X, Section 20. The
measure was effective for 1996 and ensuing years. The approved measure specified
that any retained revenues over the growth limit must be used for certain designated
purposes.
• Public health and safety (including, but not limited to, environmental monitoring
and mitigation)
• Transportation
50