HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/15/2005 - SECOND READING OF ORDINANCE NO. 132, 2005, RELATIN ITEM NUMBER: 34
AGENDA ITEM SUMMARY DATE: November 15, 2005
FORT COLLINS CITY COUNCIL STAFF: Darin Atteberry
SUBJECT
Second Reading of Ordinance No. 132, 2005,Being the Annual Appropriation Ordinance Relating
to the Annual Appropriations for the Fiscal Year 2006 and Adopting the Budget for the Fiscal Years
Beginning January 1, 2006 and Ending December 31, 2007, and Fixing the Mill Levy for Fiscal
Year 2007.
RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
FINANCIAL IMPACT
During First Reading of this Ordinance, Council approved two amendments to the 2006-2007
Biennial Budget.
(1) Add a 0.50 FIE Bicycle Coordinator position at a cost of$40,840 in 2006
and $42,840 in 2007, funded by one-time savings in the General Fund.
(2) Appropriate $256,041 in the General Fund from one-time savings, but not
earmarked for a specific use at this time.
The Ordinance has been amended to reflect the aforementioned changes. This Ordinance represents
the annual appropriation for fiscal year 2006, and adopts the total budget for fiscal year 2006 at
$477,048,152 and for fiscal year 2007 at$464,005,551. This Ordinance also sets the City mill levy
at 9.797 mills, unchanged since 1991, for fiscal year 2006.
EXECUTIVE SUMMARY
Ordinance No. 132, 2005 was adopted 5-2(Nays: Ohlson and Roy)on First Reading on November
2,2005. Council adopted the 2006-2007 City Biennial Budget and the corresponding appropriation
of monies for fiscal year 2006 expenditures.
BACKGROUND
The 2006-2007 Biennial Budget establishes the services and financial plan to achieve results that
support the seven key outcomes:
November 15, 2005 -2- Item No. 34
• Improve Economic Health
• Improve Environmental Health
• Improve Neighborhood Quality
• Safer Community
• Improve Cultural, Recreational And Educational Opportunities
• Improve Transportation
• A High Performing Government
For the General Fund, the sales tax rate remains unchanged at 2.25% and the property tax rate
remains unaltered since 1991 at 9.797 mills. The budget includes a number of fee adjustments and
increases—the most notable relating to a Transportation Development Review Fee to recover 80%
of development review costs;increases in Recreation Fees and in Water and Wastewater utility rates
(user fees); consideration of a Transportation Maintenance Fee(TMF)in 2007; and increased Plant
Investment Fees(development impact fees)related to Water,Wastewater,Stormwater,and Electric.
Final Budget Adjustments
Based on Council's review and discussion of the biennial budget at First Reading (November 2),
there were two amendments that are included in Second Reading of the 2006-2007 budget adoption
and 2006 appropriation ordinance.
1. Bike Coordinator — a half-time Bike Coordinator to plan and implement programs to
promote bicycling as an alternate form of transportation is included in the budget for 2006
and 2007. The Coordinator will conduct marketing, outreach activities, grant writing, and
coordinate events. Monies are also included for marketing and promotional activities. Costs
are divided as follows: $40,840 for the half-time Bike Coordinator and $16,173 for
marketing.
2006: $ 57,013 $16,173 CMAQ (Existing grant contract)
(One-time) $40,840 Medical Benefits One-time Savings
2007: $ 59,013 $16,173 CMAQ (Existing grant contract)
(One-time) $42,840 Medical Benefits One-time Savings
2. 2006-2007 Biennial Budget One-time Savings—based on updated projections,our estimated
costs for covering medical benefits for employees in 2006 have been reduced. In the
General Fund this amounts to$639,844;savings among other funds, apart from the General
Fund, amount to $844,291. Also, the Trash Districting Study, a one-time cost, was
eliminated from the recommended budget. Consequently,additional one-time resources that
amount to $670,389 are available to cover service needs in the General Fund. Based on
Council's direction,these one-time monies have been allocated for use in the 2006 and 2007
budget as follows:
November 15, 2005 -3- Item No. 34
Source:
One-time Medical Benefits Savings $639,844
One-time Trash District Study 30,545
TOTAL RESOURCES .................................................... $ 670,389
Use:
a. Dial-a-Ride 2006 $ 60,000
b. Dial-a-Ride 2007 80,000
c. Latimer Humane Society 2006 65,748
d. Latimer Humane Society 2007 124,920
e. Bike Coordinator/Marketing 40,840
f. Bike Coordinator/Marketing 42,840
TOTAL USES .............................................................. 414,348
NET AVAILABLE AFTER USES ...................................... $ 256,041
This "Net Available After Uses" of$256,041 will be appropriated in the General Fund, but
not earmarked for any particular use at this time. The amount will set aside as 2006-2007
Biennial Budget One-time Savings and available for Council to designate for a service use
at a later time.
Recap of Changes from the Recommended Budget
A recap of all the changes Council made to the City Manager's recommended budget that are
included in the budget adoption and appropriation ordinance follows:
• Dial-a-Ride ($60,000 in 2006 and$80,000 in 2007-General Fund One-time dollars)
• Enhance Camera Radar ($177,000 in 2006 and $185,850 in 2007-General Fund
Ongoing New Fee/Fine Revenue)
• Traffic Ticket $35 Surcharge/added Police Traffic Officers ($240,000 in 2006 and
$247,200 in 2007-General Fund Ongoing New Fee/Fine Revenue)
• Latimer County Humane Society ($65,748 in 2006 and $124,920 in 2007-General
Fund One-time dollars)
• Restorative Justice/Enhanced ($17,373 in 2006 and $18,508 in 2007-General Fund
Ongoing dollars). The Restorative Justice/Basic Service of$52,118 in 2006 and$55,525
in 2007 is anticipated to be funded by grants.
• Nei ghborhood/Homeowners Association Data Base ($15,000 in 2006 and $15,000 in
2007-General Fund Ongoing dollars)
• Street Sweeping/Ouarterly Service for Neighborhood Streeets ($112,000 in 2006 and
$115,940 in 2007-Stormwater Utility Fund-Ongoing dollars)
• Half-time Bike Coordinator and Marketine ($57,013 in 2006 and $59,103 in
2007--General Fund and CMAQ One-time dollars)
• 2006-2007 Biennial Budget One-time Savings ($256,041 in 2006-General Fund One-
time dollars)
• Trash DistrictingStudy tudv($30,545 in 2006-General Fund One-time dollars). The study
was eliminated and these one-time resources are credited to General Fund savings.
November 15, 2005 -4- Item No. 34
Future Budget Issues
While the Budgeting for Outcomes process was an effective tool for allocating the City's available
resources for services and actions directly related to the key outcomes, three key issues remain and
will be addressed in preparation for the 2007 Budget Exception Process.
1. Transportation Maintenance Fee (TMF)
The biennial budget includes a recommendation to enact a Transportation Maintenance Fee
in 2007. Over the next few months and prior to the 2007 Budget Exception Process
(adjustments to the 2007 budget and appropriation ordinance that occur in late 2006),
Council and staff will work with the community and carefully examine the Transportation
Maintenance Fee, as well as other options for addressing street maintenance and other
General Fund operational needs. Without an added revenue source in 2007, additional cuts
approximating $2.7 million must be made to the 2007 budget plan.
2. Employee Compensation and Benefits
In preparation for 2007 employee pay adjustments,the City Manager will work on refining
the City's performance review system to achieve a greater emphasis on pay based on
performance. This includes using pay as a performance incentive;refining the"market"for
City jobs(e.g.,if jobs are more locally benchmarked,use local comparisons;if jobs are more
regional, use broader or more regional comparisons). Discussion will focus on the
underlying principles of how employees' pay progress within their pay grades.
3. Police Staffing and Services
Ensuring a safe community is a key result and priority in our community. Before we
determine the specific, future staffing and resource needs related to Police services, a more
specific service plan and set of metrics that are pertinent and directly applicable to our
community profile and public safety needs must be developed. As a starting point,Council
supported the creation of a Council subcommittee to work closely with the City Manager and
staff to develop the service plan and metrics.
ORDINANCE NO. 132, 2005
OF THE COUNCIL OF THE CITY OF FORT COLLINS
BEING THE ANNUAL APPROPRIATION ORDINANCE
RELATING TO THE ANNUAL APPROPRIATIONS
FOR THE FISCAL YEAR 2006; ADOPTING THE BUDGET
FOR THE FISCAL YEARS BEGINNING JANUARY 1, 2006,
AND ENDING DECEMBER 31, 2007; AND FIXING THE MILL
LEVY FOR FISCAL YEAR 2006
WHEREAS,the City Manager has,prior to the first Monday in September,2005,submitted
to the Council a proposed budget for the next ensuing budget term, along with an explanatory and
complete financial plan for each fund of the City, pursuant to the provisions of Article V, Section
2, of the City Charter; and
WHEREAS, within ten (10) days after the filing of said budget estimate, the Council set
September 30 and October 4, 2005, as the dates for the public hearings thereon and caused notice
of such public hearings to be given by publication pursuant to Article V, Section 3, of the City
Charter; and
WHEREAS,the public hearings were held on said dates and all persons were then afforded
an opportunity to appear and object to any or all items and estimates in the proposed budget; and
WHEREAS, Article V, Section 4, of the City Charter requires that, before the last day of
November of each fiscal year, the Council by passage of the annual appropriation ordinance shall
adopt the budget for the ensuing term and appropriate such sums of money as the Council deems
necessary to defray all expenditures of the City during the ensuing fiscal year; and
WHEREAS,Article V, Section 5,of the City Charter provides that the annual appropriation
ordinance shall also fix the tax levy upon each dollar of the assessed valuation of all taxable property
within the City, such levy representing the amount of taxes for City purposes necessary to provide
for payment during the ensuing fiscal year for all properly authorized expenditures to be incurred by
the City; and
WHEREAS, Article XII, Section 6, of the City Charter permits the City Council to fix,
establish, maintain, and provide for the collection of such rates, fees, or charges for water and
electricity, and for other utility services furnished by the City as will produce revenues sufficient to
pay into the General Fund in lieu of taxes on account of the City-owned utilities such amount as may
be established by Council.
NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. Budget
a. That the City Council has reviewed the City Manager's 2006-2007
Recommended Budget, a copy of which is on file with the office of the City Clerk,
and has approved certain amendments thereto.
b. That the City Manager's 2006-2007 Recommended Budget, as
amended by the Council, is hereby adopted, in accordance with the provisions of
Article V, Section 4, of the City Charter and incorporated herein by reference;
provided,however,that the comparative figures contained in the adopted budget may
be subsequently revised as deemed necessary by the City Manager to reflect actual
revenues and expenditures for the fiscal year 2005.
C. That the adopted budget,as amended,shall be maintained in the office
of the City Clerk and identified as "The Budget for the City of Fort Collins for the
Fiscal Years Ending December 31,2006,and December 31,2007,as Adopted by the
City Council on November 15, 2005."
Section 2. Appropriations. That there is hereby appropriated out of the revenues of the
City of Fort Collins, for the fiscal year beginning January 1, 2006, and ending December 31, 2006,
the sum of FOUR HUNDRED SEVENTY-SEVEN MILLION FORTY-EIGHTY THOUSAND
ONE HUNDRED FIFTY-TWO DOLLARS ($477,048,152)to be raised by taxation and otherwise,
which sum is deemed by the City Council to be necessary to defray all expenditures of the City
during said budget year, to be divided and appropriated for the following purposes, to wit:
GENERAL FUND $97,522,221
ENTERPRISE FUNDS
Golf $2,489,469
Light & Power
Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,293,262
Capital:
Service Center Additions 254,000
Substation Improvements 267,000
Underground Conversion Program 2,368.210
Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,889,210
Total Light & Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,182,472
Storm Drainage
Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,233,393
Capital:
Basin Master Planning 50,000
Canal Importation Basin 1,200,000
Cooper Slough-Boxelder 500,000
Developer Repays 50,000
Drainage System Replacement 348,000
Dry Creek Basin 1,200,000
Fossil Creek Basin Improvements 2,100,000
Service Center Improvements 52,000
W. Vine Basin Improvement 500,000
Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000
Total Storm Drainage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,233,393
Wastewater
Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,857,643
Capital:
Collection System Replacement 850,000
Collection System Study 50,000
Harmony Lift Station/CR9 Relief S. 350,000
Locust St./Riverside 925,000
Service Center Improvements 55,000
Sludge Disposal Improvements 225,000
Treatment Plant Improvements 4,100,000
Water Reclamation Replacement Program 835.000
Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,390,000
Total Wastewater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,247,643
Water
Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,735,956
Capital:
Distribution System Replacement 715,000
Halligan Reservoir Expansion 5,130,000
Michigan Ditch Improvements 150,000
Service Center Improvements 139,000
Southwest System Improvements 800,000
Treatment Facility Improvements 180,000
Water Production Replacement Program 449,000
Water Supply Development 100.000
Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,663,000
Total Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,398,956
TOTAL ENTERPRISE FUNDS $ 158,551,933
INTERNAL SERVICE FUNDS
Benefits $23,193,190
Communications 1,529,491
Equipment 6,846,863
Self Insurance 3,143,487
Utility Customer Service &Administration 11,600,177
TOTAL INTERNAL SERVICE FUNDS $ 46,313,208
SPECIAL REVENUE FUNDS
Capital Improvement Expansion Fund $11,358,780
Capital Leasing Corporation Fund 4,721,041
Cemeteries 624,796
Cultural Services &Facilities 3,892,978
Debt Service 2,791,956
General Employees' Retirement 2,325,350
Natural Areas Fund 9,212,962
Perpetual Care 70,594
Recreation 7,777,665
Sales and Use Tax 73,579,211
Street Oversizing 4,616,069
Transit Services 9,255,434
Transportation Services 27,891,460
TOTAL SPECIAL REVENUE &DEBT SERVICE FUNDS $158,118,296
CAPITAL IMPROVEMENT FUNDS
General City Capital
City Bridge Program $ 300,000
Harmony Shields Intersection 1,758,886
Spring Canyon Community Park 11,402,169
TOTAL GENERAL CITY CAPITAL $13,461,055
1/4 Cent BCC - Community Enhancements
Administration 26,833
TOTAL 1/4 CENT COMMUNITY ENHANCEMENTS $ 26,833
1/4 Cent BCC -Natural Areas and Parks
Administration 435
TOTAL 1/4 CENT NATURAL AREAS AND PARKS $ 435
1/4 Cent BCC -Streets and Transportation
Administration $ 12,146
Mason Street Transportation Corridor 250,000
Transfer to Transportation Fund 400,000
TOTAL 1/4 CENT STREET AND TRANSPORTATION $ 662,146
Conservation Trust Fund
Administration $ 270,883
Fossil Creek Trail 100,000
Open Space Acquisition 10,000
Trail Acquisition, Development & Repair 415,500
Transfer to General Fund-Parks Maintenance 379,195
Tri-City Trails 30,000
TOTAL CONSERVATION TRUST FUND $1,205,578
Neighborhood Parkland Fund
Administration $ 346,447
Avery Park Improvements 50,000
Golden Meadows Park 75,000
Huidekoper Park 75,000
Lee Martinez Park Addition 75,000
New Park Site Acquisition 200,000
New Park Site Development 100,000
Old Fort Collins Heritage Park 50,000
Park Site Equipment 15,000
Provincetowne Park 100,000
Romeo Park (was Dry Creek Park) 50,000
Stewart Case Park 50,000
TOTAL NEIGHBORHOOD PARKLAND FUND $1,186,447
TOTAL CITY FUNDS $477,048,152
Section 3. Mill Levy
a. That the 2006 mill levy rate for the taxation upon each dollar of the
assessed valuation of all the taxable property within the City of Fort Collins as of
December 31,2005, shall be 9.797 mills,which levy represents the amount of taxes
for Citypurposes necessary to provide forpayment during the aforementioned budget
year of all properly authorized expenditures to be incurred by the City.
b. That the City Clerk shall certify this levy of 9.797 mills to the County
Assessor and the Board of Commissioners of Latimer County, Colorado, in
accordance with the applicable provisions of law, as required by Article V, Section
5, of the Charter of the City of Fort Collins.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
November, A.D. 2005, and to be presented for final passage on the 15th day of November, A.D.
2005.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 15th day of November, A.D. 2005.
Mayor
ATTEST:
City Clerk
ITEM NUMBER: 13
AGENDA ITEM SUMMARY DATE: November2, 2005
FORT COLLINS CITY COUNCIL STAFF: Darin Atteberry
SUBJECT
�i _.• ,�� 1 IIIfi��'`�f
First Reading of Ordinance No. 132,2005,Being the Annual Appropriation Ordinance Relating to
the Annual Appropriations for the Fiscal Year 2006 and Adopting the Budget for the Fiscal Years
Beginning January 1,2006 and Ending December 31,2007,and Fixing the Mill Levy for Fiscal Year
2006.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
�
(f � � Pr
This Ordinance represents the ual a ro ri i oi�f isca ij l ar 2006, and adopts the total City
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budget for fiscal year 2006 at$4 (�74 4 �ridr r f al year 2 7 at$463,935,698.This Ordinance
also sets the City mill levy at 9.797 mills, unchanged since 1991, for fiscal year 2006.
EXECUTIVE SUMMARY
Preparation of the 2006-2007 biennial budget has been a tremendous challenge due to: a new
approach to budgeting and service planning, an ongoing constraint on revenue growth, and rising
costs. By utilizing the Budgeting for Outcomes(`BFO')approach we are attempting to address the
fundamental question: How can citizens get the most value for the taxes and fees they pay?
The purpose of utilizing the BFO approach is to:
• Identify what's important to this community{{and develop ay sound financial and service plan
to achieve those outc0 s;
• Allocate dollars base n can prio ie��ai res 9, not simply increase last year's
spending; '
• Effectively deal with revenue limitations; and
• Emphasize accountability, efficiency, innovation and partnerships.
Using this approach, City Council and staff worked in close collaboration to build a financial plan,
based on revenue available,that will achieve service outcomes which matter most to our citizens and
community.
November 2, 2005 -2- Item No. 13
The Net City Budget,which excludes internal transfers between funds is$373,721,871 for 2006 and
$373,289,082 for 2007. The following table compares the 2005 budget with the 2006 and 2007
recommended budgets, including the net operating budgets, capital improvement budgets and debt
service (in millions and the n ers� a 11ndf t,,...
The total City budget for 2006 411�1,476 7 lhon d r 2007 is 463.9 million. The Net Operating
Budget(the money necessary fopefatin"day'-to= � services1excluding transfers between funds,
debt service and capital projects) for 2006 totals$308.8 million and for 2007 totals$322.6 million.
The Capital Improvement expenditures for 2006 total $39.4 million and for 2007 total $26.4
million.
Debt Service will be$25.5 million in 2006 and$24.3 million 2007. The debt service for both years
is within the Council's policy debt target of 15% of the combined general debt service and Special
District Funds' revenue.
In Millions (Numbers are Rounded)
2005 2006 Change 2007 Change
Net Operating 5.6 8. A° 322.6 4.5%
Debt 5.5 5.5 0 % 24.3 (4.7)%
Capital 31.9 39.4 23.5% 26.4 (33.0)%
Total City Net 363.0 373.7 2.9% 373.3 (0.1)%
Internal Transfers 102.1 103.0 0.9% 90.6 (12.0)%
Total City Budget 465.1 476.7 2.5% 463.9 (2.7)%
BACKGROUND
Council adopted outcomes form the foundation of the budget. This is the City's first budget using
the principles and processes of alfdg"t ;e6 0 c ' WSJ se Vr,key outcomes and results upon
which the 2006-2007 City Buffet is ba are: �i
November 2, 2005 -3- Item No. 13
0 Improve Economic Health
Fort Collins produces quality jobs,is economically diverse and builds on our
core community e th logo agi �g{ ri�ucap�on, downtown, natural
environment as anulturI d
0 Improve Env►roatne6ial Heal ~� ^ .
Fort Collins creates a clean and sustainable environment.
• Improve Neighborhood Quality
Fort Collins improves the safety, livability, choices, and affordability of
neighborhoods.
• Safer Community
People in Fort Collins are safer at home, work and play.
• Improve Cultural, Recreational, and Educational Opportunities
Fort Collins provides quality cultural,recreational, open space/natural areas
and educational opportunities to enrich lives.
• Improve Tran ortatio lti jEl 1� 141 li ,
Fort Collins im ves thefety d se'bftra ing to,from and throughout
the City.
• A High Performing Government
Fort Collins is a model for an entrepreneurial, high performing City
government.
Some key highlights of the City Budget include:
Resources
1. The total budget for all City funds for 2006 is$476,742,431 and for 2007 is$463,935,698.
That compares to the total budget for all City funds in 2005 at $465,122,888.
2. There are no tax increases in the budget.
3. The tax revenue prof; t►onsrnam n'' rjtivales and use tax is projected to
increase by 4% in 200 d 4.50 n 20
4. The budget assumes several fee adjustments and increases, e.g., a Transportation
Development Review Fee to recover 80% of development review; increases in Recreation
Fees and in water and wastewater utility rates (user fees); and implementation of a
Transportation Maintenance Fee in 2007. The TMF will be presented and deliberated in
2006.
November 2, 2005 -4- Item No. 13
5. There are a number of personnel cuts— some from vacant positions and others that require
a reduction-in-force. Staffing reductions total 107 positions across all funds which amounts
to a reduction of approximately$6.6 million in compensation (salary and benefits) costs.
Revamped and Enhanced Se ►ces } 0 r
While revenue limitations have resulted in service and staffing reductions,the City will continue to
deliver a wide array of quality services and programs and support several new facilities in 2006 and
2007. A sample of these includes:
a. Operation, maintenance and debt service of a new Police Services Building
b. Operation and maintenance of the new Northside Aztlan Community Center
C. Operation and maintenance of the new Spring Canyon Community Park
d. One-Stop Shop for Customer Service(Building&Zoning,Neighborhood Resources,Code
Compliance)
e. Improved Developmen evie me
f. Consolidated Code En pement ,a, �Pb ..rhood S ices
g. Increased partnership for the Climate Wise program between Natural Resources and Utilities
h. Work on a variety of key community planning projects, such as:
• Southeast Subarea Plan (Area of I-25/Hwy 392/Fossil Creek Reservoir)
• Northwest Neighborhoods Plan
• South College Corridor Plan
• North College Urban Renewal Plan
• CSU/Downtown Connections Plan
i. New emphasis on strategic and long-range planning efforts for redevelopment and sustaining
an economically and environmentally vibrant community
}l 1 " .... ! !. ,i..
11
i. A wastewater system shy to gym' mizel�e fi ati� ground water
+
k. Poudre Fire Authority services an ,rest M to opera Station#14 and the South Ladder
Truck
1. Maintenance for the Mason Bike/Pedestrian Trail
M. Citizen survey to measure the performance of City government related to the BFO Key
Results and Indicators
November 2, 2005 -5. Item No. 13
n. A Passport Application Acceptance Center
o. Management study to assess organizational effectiveness
p. 100% conversion of th rty'sIsel fl tcl�b ytig bio-diesel
"nttUinx ";irs , t�" i
FINAL BUDGET ADJUSTMENTS
In the course of the Council's budget review and discussions, some changes have been made to the
City Manager's recommended budget. The following changes are reflected in the proposed budget
adoption and appropriation ordinance.
1. Dial-a-Ride($60,000 in 2006 and$80,000 in 2007)—The City will contract with Shamrock
Taxi to provide Dial-a-Ride night service in 2006 and 2007. The offer is to provide Dial-a-
Ride evening service after 7:00 pm, Monday through Saturday nights, for both non-
ambulatory(wheel chair)and ambulatory passengers.The City will lease to Shamrock three
vehicles—vans large enough to accommodate wheel chairs—for this evening service.
Evening service will be supported with one-time General Fund dollars.
2. Enhanced Camera Ra "` " "( ($1 pOpzj�O � 5,�,�0 m 2007) — a second mobile
camera radar unit van d civil' o e to 11 be &d to address traffic enforcement
issues. The addition ofooxld c era d unit will engthen our ability to enforce local
traffic laws and promote safe travel in our community. Proposed funding for this service is
from the revenue generated from camera radar fines which are restricted revenues in the
General Fund.
3. Traffic Ticket Surcharge($240,000 in 2006 and$247,200 in 2007)—a$35 surcharge on all
one point or higher moving violation tickets is anticipated to generate revenues to fund two
additional Police traffic officers. Again, this will strengthen traffic enforcement and
community safety. Hiring for the first officer will occur in mid-2006; if revenues follow
projections a second officer will be hired in early 2007. The cost of the officers would be
supported by the projected revenue from the surcharge on traffic tickets which is
approximately$260,000 in 2006 and $262,000 in 2007.
4. Larimer County Humane Society(LCHS)(additional$65,748 in 2006 and$124,920 in 2007)
—the City contracts with(belH m el ciet l f all, im ;,control services throughout the
City. LarimerCounty 'mane '�ety(�' 'C Ste' rowje$'trainedpersonneland specialized
equipment to enforce City's malnt 1 ordinans,respond to calls,provide shelter
and emergency veterin service'i;,.lice se' ets and dpose of dead animals. The LCHS
submitted an offer for services in 2006 ($723,224) and 2007 ($795,546). In the course of
evaluating offers, it was reduced by staff to $657,476 in 2006 and $670,626 in 2007.
Conversations with LCHS indicates that in order to continue animal control services for the
City the full offer must be funded. Making up the gap with one-time General Fund dollars
is the only viable solution in this biennial budget.
November 2, 2005 -6- Item No. 13
Service effectiveness of LCHS will be assessed prior to the 2007 Budget Exception Process
and Council will determine whether or not the $124,920 allocation for 2007 will be
maintained or adjusted. Planning for 2008 and 2009 will revisit service options and evaluate
the City's animal contro e"ereds ' c tigwit�the LCHS's service targets and
achievements. ii
5. Bike Program ($16,000 i 40'6 a d$f ,00 t 2007) � the City will make available office
space, telephone, computer and office furniture for bicycle groups to use to educate and
promote bicycle use in the community. The resources will be used to support marketing and
outreach activities. For 2006 and 2007, the resources to support this program will be one-
time resources available from unspent 2005 monies. These resources represent General Fund
dollars used to support Transportation Demand Management programming in prior years.
6. Trash Districting Study ($30,545 in 2006) — the offer to update a 1997 study related to
creating trash"districts"has been eliminated. These are one-time General Fund dollars that
are available to be reprogrammed(used)for another purpose or retained in the General Fund
Reserve Designated for Contingencies to be used at another time.
7. Restorative Justice/Enhanced($17,373 in 2006 and$18,508 in 2007)—a grant supports the
basic program activities for 2006 and 2007 which covers a half-time(.50 FTE)Restorative
� �t x P. Iti Npi ..aN�h•
Justice Coordinator. In drtio t (he t, e ari• mit is included to increase the staff
time of the Coordinator, 25 F the o rn or w ,d go from.50 FTE to.75 FTE)and
increases program actiesY rel d t � h estorari Justice Youth Conferencing by
providing family/group comerencing or youth and young adults and the RESTORE Program
for merchants, community and shoplifters. The enhancement is a General Fund cost. The
original Drilling Platform included ongoing General Fund monies ($52,118 in 2006 and
$55,525 in 2007) for the Restorative Justice basic service; however, this is redundant with
the grant that supports the basic service. A portion of the original General Fund ongoing
monies will be allocated for the cost of the enhancement—$17,373 in 2006 and$18,508 in
2007. The remaining ongoing monies($34,745 in 2006 and$37,017 in 2007)are available
to be applied to another service need (see Item 98 below).
8. Neighborhood/Homeowners Association Data Base($15,000 in 2006 and 2007)— this offer
is to help people identify with their geographic area(neighborhood)and to be able to use data
to deliver many targeted City services to individual neighborhoods. With the exception of
the annual $5,000 postage line item, this offer funds roughly .15 FTE (fractions of three
Neighborhood and Buil�ling�n 111"M
ces, sta rrl rn� rs) for the purpose of researching,
contacting and interacf g ongoin b is ith sentatives of neighborhoods and
homeowners association("HO Th at ase is no tended to list and establish contact
with just HOA property 'rtran� a y o which w Id see the Citys communications
needs as an additional burden on their time. Rather, this is about Neighborhood Services
staff making direct connections with neighborhood and HOA board members and resident
representatives.
General Fund on,goingmonies ($15,000 per year)will be reprogrammed from the original
restorative Justice offer and applied to this service. (The original offer for Restorative Justice
basic service is covered by grant vs.General Fund resources. These General Fund resources
November 2, 2005 -7- Item No. 13
are reprogrammed to be used for the Restorative Justice Enhancement (#7 above) and
Neighborhood/HOA data base.
9. Street Swee in uarte °($ 12 00'3s' 2 '6 115 940 in 2007) — this adds back
sweeping of resident] streets o qu 1 aanvides leaf pick-up in the first and
fourth quarters of a ye This is ong xpense. ecause of the relationship between
residential street sweepiilian'i�mir imi mg a negati, ''impact on water quality as well as
the amount and types of debris infiltrating the City's stormwater conveyance and retention
system,the cost will be funded from resources within the City stormwater operational budget
(Stormwater Utility Fund).
Personnel Impacts
Our employees deliver the diverse services our community relies on, and are deeply committed to
providing quality at an affordable price.
The City's compensation policy sets the pay grade maximum for each job classification at the 70th
percentile of defined market pay scales. The 2006-2007 Recommended Budget includes resources
for employees' salaries to increase by a merit adjustment(up to 4%)or a skill ladder adjustment(not
to exceed 10%per year includi Cos stren �HC( A ])for employees that qualify
(i.e., based on performance am skill hieve]
Resources are also included to provide an annual COLA-1.9% for 2006 and 2.3% for 2007.
The budget also includes compensation (pay and benefits) increases per the collective bargaining
for Police personnel that are art of the bargainingunit.
agreement o o p p
Other Budget Issues
Several key issues were identified and will be addressed in 2006 in preparation for the 2007 Budget
Exception Process.
1. Transportation Maintenance Fee
The biennial budget in4W ,
Oeswa ec in n a o ct a• 6ransportation Maintenance Fee
("TMF")in 2007.Ovee nexf mo s o to 2007 Budget Exception process
(adjustments to the 2 budg and p nation dinance that occur in late 2006),
Council and staff will ,with t 6a ity and c fully examine the TMF as well as
other options to address street maintenance and other General Fund operational needs.
Without an added revenue source in 2007 additional cuts(approximately$2.6 million)will
need to be made to the 2007 budget plan.
November 2, 2005 -8- Item No. 13
2. Employee Compensation and Benefits
In preparation for 2007 employee pay adjustments,the City Manager will work on refining
the City's performance r 'eW,'ys * v ter, basis on pay for performance.
This includes using pa s a perf anc c t�;re g the"market"for City jobs(e.g.,
if jobs are more locall enchm red, 1 al comp son and if jobs are more regional,
use broader or more re iond( cothp son r Discu 'on will focus on the underlying
principles of how employees' pay progresses within their pay grades.
3. Police Staffing and Services
Ensuring a safe community is a key result and priority in our community. Before we
determine the specific, future staffing and resource needs related to Police services, a more
specific service plan and set of metrics that are pertinent and directly applicable to our
community profile and public safety needs must be developed. As a starting point,Council
supported the creation of a Council subcommittee to work closely with the City Manager and
staff to develop the service plan and metrics.
CONCLUSION n „
The 2006-2007 Recommende udget a so� aial ply °to deliver the services we believe
our citizens value most. The etjng ocet h .enabled s to focus and apply the resources
,
available to key community outcomes. This has not been without pain as we have had to trim
existing services, cut positions and forego planned staffing and service enhancements. However,
citizens will still receive excellent value for their tax dollars.
I am deeply appreciative of the extraordinary effort of and partnership by Council and staff over the
past eight months to prepare the financial plan that will guide service delivery over the next two
years.
First Reading of the budget ordinances will be considered at Council's November 2 meeting. Any
final amendments agreed to by Council will be included in the second (and final) reading of the
budget ordinances on November 15, 2005. By Charter, the budget must be adopted and
appropriations for the 2006 fiscal year must be approved by November 30.