HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/02/2005 - FIRST READING OF ORDINANCE NO. 132, 2005, RELATINGAGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL
ITEM NUMBER: 13
DATE: November 2, 2005
STAFF: Darin Atteberry
SUBJECT
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
This Ordinance represents the annual appropriation for fiscal year 2006, and adopts the total City
budget for fiscal year 2006 at $476,742,431 and for fiscal year 2007 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 a sound financial and service plan
to achieve those outcomes;
• Allocate dollars based on current priorities and results, 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 numbers are rounded):
The total City budget for 2006 is $476.7 million and for 2007 is $463.9 million. The Net Operating
Budget (the money necessary for operating day-to-day services, excluding 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 305.6 308.8 1.0% 322.6 4.5%
Debt 25.5 25.5 0.0% 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 Budgeting for Outcomes. The seven key outcomes and results upon
which the 2006-2007 City Budget is based are:
November 2, 2005 -3- Item No. 13
! Improve Economic Health
Fort Collins produces quality jobs, is economically diverse and builds on our
core community strengths such as higher education, downtown, natural
environment and arts and culture.
! Improve Environmental Health
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 Transportation
Fort Collins improves the safety and ease of traveling 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 projections remain conservative – sales and use tax is projected to
increase by 4% in 2006 and 4.5% in 2007.
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 Services
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 Development Review Center services
f. Consolidated Code Enforcement and Neighborhood Services
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
i. A wastewater system study to minimize the infiltration of ground water
k. Poudre Fire Authority services and resources to operate Station #14 and the South Ladder
Truck
l. 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 the City’s diesel fleet to clean burning bio-diesel
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 Radar ($177,000 in 2006 and $185,850 in 2007) – a second mobile
camera radar unit (van and civilian operator) will be added to address traffic enforcement
issues. The addition of a second camera radar unit will strengthen 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 the Humane Society for all animal control services
throughout the City. Larimer County Humane Society ("LCHS") provides trained personnel
and specialized equipment to enforce the City’s animal control ordinances, respond to calls,
provide shelter and emergency veterinary services, license pets and dispose 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.
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
November 2, 2005 -6- Item No. 13
maintained or adjusted. Planning for 2008 and 2009 will revisit service options and evaluate
the City’s animal control service needs in conjunction with the LCHS’s service targets and
achievements.
5. Bike Program ($16,000 in 2006 and $16,000 in 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
Justice Coordinator. In addition to the grant, an enhancement is included to increase the
staff time of the Coordinator by .25 FTE (the Coordinator would go from .50 FTE to .75
FTE) and increases program activities related to the Restorative Justice Youth Conferencing
by providing family/group conferencing for 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 #8 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 Building Services staff members) for the purpose of researching,
contacting and interacting on an ongoing basis with representatives of neighborhoods and
homeowners associations ("HOA"). The database is not intended to list and establish contact
with just HOA property managers, many of which would see the City's 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 ongoing monies ($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 are reprogrammed to be used for the Restorative Justice Enhancement (#7 above)
and Neighborhood/HOA data base.
November 2, 2005 -7- Item No. 13
9. Street Sweeping/Quarterly ($112,000 in 2006 and $115,940 in 2007) – this adds back
sweeping of residential streets on a quarterly basis and provides leaf pick-up in the first and
fourth quarters of a year. This is an ongoing expense. Because of the relationship between
residential street sweeping and minimizing the negative 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 including Cost of Living Adjustment ["COLA"]) for employees that qualify
(i.e., based on performance and/or skill achievement).
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
agreement for Police personnel that are part of the bargaining unit.
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 includes a recommendation to enact a Transportation Maintenance Fee
("TMF") 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 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 review system to achieve a greater emphasis on pay for 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 comparison and if jobs are more regional,
use broader or more regional comparisons). Discussion 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
The 2006-2007 Recommended Budget is a sound financial plan to deliver the services we believe
our citizens value most. The budgeting process has enabled us 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.
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-SIX MILLION SEVEN HUNDRED FORTY-TWO
THOUSAND FOUR HUNDRED THIRTY-ONE DOLLARS ($476,742,431) 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 $97,241,340
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 9,230,594
Transportation Services 27,891,460
TOTAL SPECIAL REVENUE & DEBT SERVICE FUNDS $158,093,456
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 $476,742,431
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 City purposes necessary to provide for payment 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 Larimer 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