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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/26/2006 - CITY MANAGER'S RECOMMENDED 2007 GENERAL FUND BUDGE DATE: September 26, 2006 WORK SESSION ITEM STAFF: Darin Atteberry FORT COLLINS CITY COUNCIL Diane Jones Ann Turnquist SUBJECT FOR DISCUSSION City Manager's Recommended 2007 General Fund Budget. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does City Council concur with the recommended list of service and expenditure reductions? 2. Does Council concur with the recommendation for significant program changes to the Fixed Transit Route/Dial-a-Ride program? 3. Does Council concur with the recommended new revenue sources? 4. Does Council have any additional budget issues which need to be addressed? BACKGROUND On August 22, 2006, City Council and staff met in work session to discuss the 2007 General Fund Budget Gap. Staff reviewed various strategies for addressing the budget shortfall and the City Manager's preliminary service and expenditure reductions. The purpose of this work session will be to present the City Manager's recommended Amended 2007 Budget in preparation for the Council's consideration of the 2007 Appropriations Ordinance on October 17. Though the City Council adopted a biennial budget in November 2005, the impending revenue shortfall makes it necessary to develop a revised budget for the second year of the 2006-07 Budget. This revised budget will guide the adoption of the 2007 appropriations ordinance. Key dates in this 2007 Budget process will include the following: • September 26 City Manager's Recommended Budget presented • October 10 Final Review of City Council's preferred method for closing 2007 General Fund Budget Gap; recommended 2007 exceptions in other funds • October 17 First Reading of 2007 Appropriations Ordinance • October 24 Tentative Budget work session (if needed) • November 21 Second Reading of 2007 Appropriations Ordinance September 26, 2006 Page 2 Strategies to Address Funding Gap: There are three basic strategies we have employed to address the 2007 Budget shortfall - seek operational efficiencies throughout the City, reduce expenditures and related services, or increase resources to cover expenditures. Discussion among Council during the previous work sessions (February 14, May 9, July 25, and August 22) have indicated a preference for a"combination" strategy. For this work session, staff has developed a recommended strategy which includes service and expenditure cuts,organizational efficiencies and new revenues to address the projected $5.8 million 2007 General Fund shortfall. The following table(Table 1)describes the current funding gap,the recommended reductions,other General Fund budget issues which staffbelieves should be addressed in 2007,and the recommended new revenue package. This work sheet will likely be the focus of the discussion at this work session, and will be available to Council on the night of the work session as an interactive worksheet for illustrating various alternatives under consideration. Recommendation Summary: The City Manager's recommended budget amendments include the following key items: Table 1 Recom- Running mendation Total Revenue Shortfall $ (5,800,000) $ (5,800,000) Cost Reductions: Reduce Employee Compensation $ 1,000,000 Information Technology Efficiencies/Consolidation $ 250,000 City Manager's Recommended Reductions $ 3,116,848 $ 4,366,848 $ (1,433,152) Additional 2007 Budget Expenses $ (2,107,122) $ (3,540,274) New Revenue - Transportation Maintenance Fee $ 2,277,710 New Revenue- Parks Maintenance Fee $ 879,864 New Revenue- SW Annexation Taxes and Fees $ 437,122 $ 3,594,696 $ 54,422 September 26, 2006 Page 3 Overview of Service and Expenditure Reductions The City Manager's recommended General Fund budget for 2007 includes approximately $4.4 million in reductions to services and expenditures. These reductions represent significant changes in several services and significant cost cutting efforts to many other continuing services. These are: <$1,000,000> Projected Employee Compensation Increases The 2007 Budget included projected increases to employee compensation for both cost of living increases and for merit and skill-based increases. This recommended reduction would limit salary increases for merit employees to cost of living adjustments(COLAs)and some skill-based adjustments. The available funds are projected to provide 2.3% cost of living increases for employees in 2007. <$250,000> Information Technology Organizational Efficiencies The City is undertaking a consolidation of Information Technology Services to improve efficiency and the effectiveness of the City's technology resources. <$3,116,848> Recommended Service and Expenditure Reductions In June, Service Areas were asked to propose approximately$8 million in service and expenditure reductions in the 2007 General Fund Budget. The full list of these proposed cuts is included in the agenda materials in Section 2. A summary of recommended service and expenditure reductions is included below, and a detailed description of all reductions (recommended and not recommended) are included in Section 2. At the August 22 work session, Councilmembers asked for additional information about a number of service and expenditure reduction proposals. Though some of that information has been provided to Council in recent Thursday packets, a response to all of these follow-up items is included in Section 6. September 26, 2006 Page 4 2007 General Fund Recommended Budget--September 26 2006 Recommended Service and Expenditure Reductions Recommended Page Reduction Offer Reduction # City-Wide Reductions educe Employee Compensation Adjustments $1,000,000 Organizational Efficiencies Information Technology Target $1,250,000 Service Area/Offer Reductions Description 1 Reduce Funding for Pavement Management $700,000 $700,000 2-13 2 ransfort/Dial-A-RideDial-A-Ride reduction to FTA and DA mandates $600,000 $600,000 2-12 3 _Essential Library Services Reduce Library Hours&Services $363,780 $176,149 2-6 4 Building Systems and Energy Reduced Utilities and Repair and Management Maintenance of General Fund Facilities $274,310 $161,476 22-14 5 olice 800 MHz Radio educe radio replacement funds $15Q,000 $150,000 4 6 Maintenance of City Owned Hard Trail Maintenance Surface Trails $125,000 $125,000 2-8 7 Enterprise Resource Planning ERP educe Equipment Replacement $131,686 $100,000 2-17 8 Zommunity Parks Maintenance Community Parks--Gateway Park $206,000 $96,000 2-9 9 enior/Adult Programs-"Ageless and Eliminate Senior/Adult Trips wesome" $77,900 $77,900 2-7 10 inance Administration Reduce 1 FTE&telephone $77,149 $77,149 2-19 11 ustomer Services--One Stop Shop Eliminate 1 Admin Assistant $69,643 $69,643 2-3 12 Jrban Renewal Authority Fund with Designated Revenues $62,741 $62,741 2-2 13 3ayroll Processing Delay PC replacement&reduce other expenses $52,000 $52,000 2-17 14 nnovative Neighborhood Code educe Code Compliance funds Enforcement $50,000 $50,000 2-3 15 _Neighborhood Parks Maintenance ei hborhood Parks $65,000 $50,000 16 Northside Aztlan Community Center orthside Aztlan Community ente $49,000 $49,000 2-5 17 LincolnCenter incolnCenter $102,351 $46,115 2-11 18 Rebate Programs leduce contractual assistance& )rogram funds $86,550 $43,275 2-18 19 Community Parks Maintenance ommunity Parks--Park aintenance $40,000 2-9 20 Traffic Operations E,electric,and traffic control ui mentreductions $81,921 $39,921 2-12 21 ecial Event Support tth of July/Other Activities $37,000 $37,000 2-8 22 CLRS Administration harge CLRS Staff to Other ands $33,252 $33,252 2-8 23 100%Use of Clean Burning Bio-Diesel Eliminate Bio-Diesel Subsidy $30,842 $30,842 2-2 24 on-Camera Radar/Red Light Cases keduce.55 FTE $29,600 $29,600 2-13 25 erating and Maintaining City Owned emetery Miscellaneous Memorial Parks Reductions $19,516 $19,516 2-8 26 Regional Planning Organization Reduced MPO contribution Contributions $19,500 $19,500 2-11 27Recreation-at-Your-Door(RAD)Van ecreation-at-Your-Door(RAD) Program an Program $19,100 $19,100 2-6 28 EPIC: "Liquid and Frozen Assets" educe EPIC staff $63,000 $17,000 2-6 29 ales&Use Tax Reduce travel audits,delay PC e lacement $16 200 $16 200 2-17 September 26, 2006 Page 5 2007 General Fund Recommended Budget—September 26 2006 Recommended Service and Expenditure Reductions Recommended Page Reduction Offer Reduction # 30 Accounts Payable Processing Delay PC replacement&reduce other expenses $15,500 $15,500 2-16 31 Human Relations Business Partners Reduce 1.0 FTE $88,670 $I5,270 2-19 32 Economic Vitality&Sustainability: Reduce Landmark Rehab Loan Financial Tools Program&Design Assistance ro am $15,000 $15,000 2-2 33 The YAC-Safe Place for Kids outh Activity Center $15,000 $15,000 2-5 34 Core Street Maintenance 1educe Streets front desk overa a $10,856 $1Q856 2-11 35 Accounting and Intemal/Extemal Zeduce contractual assistance& inancial Reporting Services ele hones $10,400 $10,400 2-18 36 3rocurement Process Zeduce operating expenses $10,000 $10 000 2-17 37 _.Iarmony Transfer Center vlaintenance reductions $9,500 $9,500 2-11 38 i uor Licensing Authorit educe.05Judge $7,125 $7,125 2-13 39 epartment of Transportation(DOT) educe FTE .I 1 -transfer DOT to om liance Program isk M mt $5,630 $5,630 2-18 40 qatural Resources Administration- ncrease Director Charged to nvironmental Planning atural Areas to 75% $5,282 $5,282 2-2 41 Gardens on Spring Creek and Horticulture Center Community Horticulture Program $5,000 $5,000 2-10 42 Air Quality Improvement Increase Director Charged to Natural Areas to 75% $2,366 $2 366 2-2 43 Waste Reduction&Recycling educe.52 FTE and Programs $68,111 $1,540 2-3 44 Camera Radar/Red Light Cases Reduce.10 Jude $ $ 2-13 45 Building Inspection Eliminate I Building Inspector $89,210 see note 2-4 Recommended Service Area/Offer Reductions: $3 116 848 Grand Total All Recommended Reductions $4 366 848 September 26, 2006 Page 6 Additional 2007 Budget Issues In developing the 2007 General Fund Budget Recommendation and the 2007 Appropriations Ordinance, we recommend that several emerging issues be addressed and adjustments made to the previously adopted 2007 Budget. These issues were not anticipated when the 2006-07 Budget was adopted. In previous years,revenues that exceeded projections would likely have been available to address these issues in the second year exceptions budget process. With the projected revenue shortfall for 2007,these additional budget issues add to the expected budget shortfall and should be addressed in the context of the overall General Fund Budget. Staff recommends funding the following items in the 2007 General Fund Budget. <$1,100,000> Additional Transfort Fixed Routes/Dial a Ride The rapidly rising cost of providing Dial-a-Ride services throughout the Growth Management Area have created an increasingly unsustainable program. Staff has recommended a reduction of$600,000 in current Dial-a- Ride services,while also recommending an increase in fixed route services. These two actions, in combination, will result in a significant change in the community's public transportation system and improve the long-term financial viability of the program. A complete description of the proposed changes to the Dial-a-Ride and Transfort program are included in the work session materials under the DAR tab, Section 4. <$250 000> ManufacturingEquipment Use Tax Re ment q p bate The Manufacturing Equipment Use Tax Rebate (MUTR) program was initiated in 1996. Its intent is to encourage the reinvestment made by local manufacturing firms in new manufacturing equipment. The goal of the program is to maintain the local economic base by providing modest tax relief to manufacturers currently located in Fort Collins. The Council's Finance and Audit Committee recently reviewed some proposed modifications to the program which will be presented to and considered by Council in October. In terms of funding, in past years these rebates were funded by surplus Use Tax revenues. However, Use Tax revenue collections in 2006 are significantly below projections and there will not be a surplus. It should be noted that 2006 is likely to be the first year that the City has not achieved the projected (budgeted) use tax collections for General Fund operations. The Finance and Audit Committee reviewed options for funding the program. There are basically two: (a) fund when and if there is a Use Tax surplus, or (2) fund as an ongoing program in the General Fund. The Committee supports the option that the MUTR program be considered and funded as an September 26, 2006 Page 7 ongoing program and not dependent on whether or not surplus Use Tax revenues are available. For the 2007 Amended Budget,the recommendation is to earmark$250,000 for Use Tax rebates for eligible local manufacturers. The rationale underscores the importance of ensuring resources are available on a consistent basis to operate the rebate program. The City wants to send a message that we are actively trying to improve the economic health and sustainability of our community, we are open to business, especially manufacturers, and the City is a desirable place to grow and locate such businesses. <$150,000> Natural Gas Cost Increase Growing costs for Natural Gas will not be accommodated under the 2007 Budget funding levels and additional funds will be needed to cover these costs. This volatile cost was recently reevaluated and an additional$150,000 in fuel costs is projected for next year. <$170,000> Employee Compensation Corrections Several adjustments to employee compensation are necessary in 2007 to correct pay inequities that resulted from freezing the City Pay Plan in 2002. Issues include compression between some supervisors and their subordinate employees, new hire employees who are paid at a higher rate than frozen longer term employees,merit increases for some employees to bring them to at least 4%over the pay range minimum,and skill based pay adjustments for some employees. <$437,122> Southwest Annexation An enclave area of approximately 2.7 square miles was recently annexed into the City. Because the resources needed to serve the entire enclave are limited at this point in time, the annexation is to take effect over a period of several years. Pending Council approval,the Phase One portion of the Enclave will be recorded and take effect in November 2006. The City will be providing services to the Phase One area. While services, such as Golf,Electric and Stormwater,are directly funded by user fees,other services are funded by a combination of property taxes,sales taxes,and fees. Many of the City's services are currently used by Enclave residents and do not trigger additional expenditures. However, the area including Phase 1, will require expanded Police service capability from the City. Staff is recommending that all of the new revenue generated from the Phase One Southwest Annexation be allocated toward increasing Police Services. September 26, 2006 Page 8 New Revenue Recommendation: Staff recommends that the 2007 General Fund Budget be balanced by implementing two new special services fees - Parks Maintenance Fee and Transportation Maintenance Fee and by allocating new revenue from the Southwest Annexation toward Police Services. $ 2,277,710 Transportation Maintenance Fee Staff recommends that a Transportation Maintenance Fee(TMF)be implemented at the full amount possible with exemptions provided for all Government and Public School parcels. The exemptions would eliminate approximately $300,000 in potential revenue. The proposal would also cover the projected $130,000 in administrative costs. The full fee proposal is included in the agenda materials in Section 3. These revenues will free-up an equal amount of General Fund revenues which can be reallocated to other uses. $ 879,864 Park Maintenance Fee Staff recommends that the Park Maintenance Fee (PMF)be implemented at a level of$1 Million per year. After administrative costs ($60,000) and proposed rebates ($21,000), the yield to the Parks Maintenance Program will equal approximately $880,000. These revenues will free up an equal amount of General Fund revenues which can be reallocated to other uses. $ 437,122 Southwest Annexation The largest General Fund impact of the Phase One annexation is the need to extend Police service to this area. General Fund revenues from the Phase One area are estimated to be$437,122 in 2007. The City Manager recommends committing this new revenue from the Phase One area to go toward adding Police personnel for this new service area in Fort Collins. Price of Government: Council requested that staff provide some analysis of the Cit 's "Price of Government," 9 P Y Y ent, including comparative data for other relevant Colorado cities. Staff has developed a preliminary analysis of this issue, and has collected a variety of data related to the City's comparative tax and fee rates. This information is included for Council's information in Section 5. City Manager ' s Recommended Strategy -- 2007 General Fund Shortfall 2007 Summary Running Total Shortfall Summary Anticipated Funding Gap (TMF Assumption) $ (2 ,3005000) Revised Revenue Shortfall (May, 2006) $ (495009000) " Worst Case " Revenue Shortfall (5/9/06) $ (6,8005000) Revenue Forecast Adjustment (7- 19-06) $ 150009000 Revised Revenue Shortfall $ (5 , 80000) S (5 , 800 ,000) Cost Reductions : Reduce Employee Compensation Adjustments $ 1 ,000,000 Organizational Efficiencies Information Technology Target $ 250,000 City Manager's Recommended Reductions $ 3 , 1165848 Total Cost Reductions $ 41366, 848 $ ( 1 ,433 , 152) Additional 2007 Budget Issues to Address : Fixed Route Transit/Dial-a-Ride $ ( 151005000) Manufacturers Use Tax $ (2505000) Natural Gas Cost increase $ ( 150,000) Southwest Annexation Police Services $ (4375122) Compensation Corrections $ ( 170,000) Total Cost Increases : $ (251079122) $ (3 ,540,274) Recommended New Revenue : Transportation Maintenance Fee $ 2,2775710 Parks Maintenance Fee $ 8793864 Southwest Annexation Property and Sales Taxes, other revenue $ 4371122 Total New Revenue $ 315945696 NET 2007 BUDGET IMPACT , $ 54,422 -- Section 2 - - Service and Expenditure Reductions Recommendations Reductions and Reductions Not Recommended 2007 General Fund Budget Revised September 26 , 2006 Executive Summary : Service and Expenditure Reductions In June, 2006 Service Areas developed a list of $7 . 7 Million in potential General Fund Budget service and expenditure reductions . The list crossed all Service Areas and BFO Results Areas . The City Manager' s Office Budget Team reviewed the potential cuts and prioritized each one . The reductions include $3 . 1 Million in recommended reductions for 2007 . These reductions, along with the recommended efficiency improvements in the Information Technology area and the $ 1 Million reduction in employee compensation increases result in a total reduction recommendation of $4.4 Million. Attached Council will find detailed descriptions of each of the service and expenditure reductions . The list includes the same reductions as were provided at the August 22 Work Session, plus some additional information requested at that Council meeting. The descriptions are divided into two sections—Recommended Reductions and Reductions NOT Recommended. The cuts which were not recommended are included for Council ' s reference. City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 2 -2 Detailed Descriptions Recommended Service and Expenditure Reductions September 26, 2006 Economic Health Offer 287 : Economic Vitality and Sustainability : Financial Tools $159000 Reduction Description : This service reduction includes a reduction of $ 10,000 from the Landmark Rehab Loan Program, leaving $ 15 ,000 for 2007 . The Design Assistance Program is also eliminated, resulting in a savings of $ 5 ,000 . Offer 4099 Urban Renewal Authority $629741 Reduction Description : This expenditure reduction changes the funding source for the Urban Renewal Authority from on-going General Fund to one-time Economic Health Vendor Fee Reserves . This funding source could continue to fund this offer in 2008 and 2009, and/or funding could come from Urban Renewal Authority Tax Increment provided sufficient funds are available. Environmental Health : Offer 237 : 100 % Use of Clean Burning Bio-Diesel $30,842 Reduction Description : This expenditure reduction will account for anticipated lower Bio-Diesel costs in 2007 . The need for the general fund subsidy will not be necessary for 2007 . This represents a $30, 842 general fund cost reduction. Offer 272 : Natural Resources Department Administration — Environmental Planning $59282 Reduction Description : Ten percent of the Natural Resources Director's salary will be shifted from the General Fund to the Natural Areas dedicated fund. The ratio of General Fund to dedicated fund will be 25/75 . This change will reflect the Director's 2007 time allocations based on proposed reductions to General Fund Natural Resource Department projects . Offer 286 : Air Quality Improvement $29366 Reduction Description : This expenditure reduction is a minor adjustment (less than $2 ,500) to move a portion of the Natural Resources Director salary to the Natural Areas program. The change will result in no impact to services provided. City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 2 -3 Offer 370 : Waste Reduction & Recycling Original Cut: $68, 111 Reduction Description : Recommended Cut : $ 1 ,500 This service reduction moves an Environmental Planner position to a . 50 FTE and eliminates $30,000 in program funds . The program will no longer provide services to the Resource Recovery Farm project. Services provided to Climate Wise will be reduced or eliminated. The Christmas tree recycling program will be eliminated. Education and outreach will be substantially reduced. This program provides services to help the community attain a 50% solid waste diversion rate. It manages the Resource Recovery Farm business plan; the Pay — as-You-Throw ordinance ; provides education/outreach; and develops news programs and policies . Only the portion of the offer which transfers $1, 500 of the Natural Resources Director 's salary to non- General Fund sources is recommended for reduction. Neighborhood Quality Offer 230 : Innovative Neighborhood Code Enforcement $509000 Reduction Description : This service reduction eliminates a portion of Code Compliance contractual funds used for abatements . To offset the proposed decrease in these funds, staff has made efficiency and effectiveness improvements to mitigate nuisances such as overgrown weeds, rubbish piles, or un-shoveled sidewalks with a new on-site violation posting process, as well as an increase in abatement fees that passes all associated costs on to the violator, resulting in significantly reduced numbers of City-contracted abatements performed. Staff anticipates the overall impact on City nuisance code services by this cut will be minimal, barring unforeseen circumstances such as an extremely high number of snowstorms, etc . August 22 Follow-up: These reductions do not impact Nuisance Enforcement, only those funds which are available for the abatement of nuisances which are not completed by a cited property owner. Examples of these types of abatements include snow removal at properties which are not shoveled by the property owner or cutting weeds at a property that is cited for a violation but the weeds are not cut by the owner within the time allowed under the citation. Offer 361 : Customer Services — One-Stop Shop $699643 Reduction Description : These service reductions will be accomplished by eliminating one Administrative Assistant position and reclassifying another Administrative Assistant position to a lower classification. The direct support provided to Neighborhood Services and Code Compliance staff will be reduced by approximately 20 hours per week. Support for the Zoning Board of Appeals will be eliminated from this offer and be assigned to other staff within CPES . Financial activities such as accounts City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 2 -4 receivable/accounts payable, vendor invoice processing, travel requests and other similar activities will experience delays as these duties will have to be absorbed by other administrative employees and prioritized in with other current duties and responsibilities . A further significant impact on this offer is the potential for a dramatic influx of complaint intake and processing associated with the new occupancy limit regulations when these become effective beginning in 2007 ; along with entirely new property and building maintenance regulations, now under development for discussion at the Sept. 12 , 2006 Council Work Session. The reclassification of an Administrative Assistant position to a CSR II is not expected to result in any service reductions. August 22 Follow-up: Staff believes that the consolidation of three service windows into one window will allow service to be provided with one fewer staff members. Safer Community Offer 394 : Building Inspection Original Cut, $899210 Reduction Description : Recommended Cut : Transfer funds Funding for City Council Policy Agenda work is reduced by $ 10 ,000 in each of three offers (226, 394, and 408) for a total reduction of $30,000 . This will cut by 50% the Service Area' s ability to engage independent contractors to assist with analysis and timely response to emerging Council policy issues . In the past, these funds have been used on projects such as the Impact Fee Analysis, Timnath Community Separators, Natural Area Buffer Standards, Regional Retail Analysis, Poudre River Contamination, and the City Plan Survey. This expenditure reduction would also eliminate a Building Inspector position. It reduces on-site building code and contractor licensing enforcement by 40 hours per week. The approximate 30% decrease in plan review and building permit demand over the last two years and resulting corresponding decrease in building inspections and related field activity should allow additional inspection/investigation duties to be spread among the remaining Building Inspection and Code Compliance personnel, while maintaining acceptable service levels most of the time in terms of response time and adequate compliance- verification time on site provided building permit demand does not surge upward for any sustained period. Staff recommends not accepting this cut offer, but rather transfer funding offered in this reduction to fund the Housing Inspector position in 2007. Therefore, this offer yields no net cut to the General Fund Budget. Offer 566 : Police 800 MHz Radio Original Cut: $ 58,241 Reduction Description : Recommended Cut : $150,000 This expenditure reduction would extend the replacement schedule for 800 MHz Radios for Police Service. These funds will diminish the equipment replacement City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 2 - 5 fund for the department, and require the lease purchase of future replacement radios with additional cost for interest. Additional reductions can be made to this offer totaling $100, 000 in 2007. The result will be to delay equipment replacement somewhat, but the department can use lease purchase agreements in 2009 or 2010 with limited financial impact for future years. Cultural, Library and Educational Offer 95 : The YAC — Safe Place for Kids $ 159000 Reduction Description : This reduction will reduce hourly clerical staff at the YAC . At the beginning of 2007 , the hourly clerical position at 214 N. Howes will be transferred to the YAC to provide coverage. This will provide a seasoned staff member to help with the YAC closure and transition to the new Northside Aztlan facility. This will result in a probable closure of 214 North Howes as a central registration site. Because a primary registration site would be eliminated, this would result in increased lines at other Recreation registration sites, increased phone traffic and possible busy signals at Recreation facilities, and reduced customer service . Offer 101 : Northside Aztlan Community Center $499000 Reduction Description : This reduction will eliminate a portion of the funding for hourly clerical staff for the new Northside Azdan facility. Clerical staff from the YAC and a classified clerical employee from 214 N. Howes will be transferred to the new recreation center to provide coverage. This will result in a probable closure of 214 North Howes as a central registration site. Because a primary registration site would be eliminated, this would result in increased lines at other Recreation registration sites, increased phone traffic and possible busy signals at Recreation facilities, and reduced customer service. August 22 Work Session Follow-up: What impact will reducing clerical staff have on the new facility ? The short answer is that we are not recommending reducing clerical staff at the new NACC When the new Northside Aztlan Community Center opens in mid- 2007, the primary registration site for the Recreation Division will shift from 214 N. Howes to this new facility. When the primary registration function shifts to the new facility from 214 N. Howes in mid-2007, one clerical position currently at 214 N. Howes is scheduled to shift to the new Northside facility. The current Northside facility has only email via modem and basically no other external technology functions because of lack of fiber hook-up, and therefore cannot currently handle any computerized registration. The new facility will have fiber access and all technology functions available to facilitate moving the primary registration site to this location. City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 2 - 6 Given the budget situation for 2007, we would shift responsibilities of one clerical from 214 N. Howes at the beginning of 2007 to the current Northside facility instead of mid-year. This clerical person would spend a portion of her time organizing and auditing the clerical functions at the current Northside facility so that when the move does take place and technology is available at the new facility, the other hourly clerical staff at NA CC will be trained and ready to take on additional functions related to computerized registration. In addition, the clerical staff member from 214 N. Howes would also help out with major registration periods at 214 N. Howes in the first half of 2007 as well as learn the front desk operation at Northside. And finally, this person would also assist with moving the registration function to the new NACC facility when it opens in mid-year 2007. Offer 102 : Recreation-At-Your-Door (RAD) Van Program $ 19j00 Reduction Description : This service reduction will reduce funding for hourly staff for this program. Staff will focus on soliciting donations, sponsors, and volunteers to continue the program at the same service level. Impact to participants should be minimal if staff is successful with fund-raising. Offer 106 : EPIC : "Liquid and Frozen Assets" Original Cut : $ 63,000 Reduction Description : Recommended Cut : $ 17,000 This expenditure reduction will decrease staffing at EPIC . Staff reductions will include a . 75 FTE clerical position that is currently vacant (coverage will be provided with hourly clerical staff) and a 1 . 0 FTE facility maintenance technician (coverage will be provided with hourly facility attendants) . Both of these positions are currently scheduled evenings/weekends for broader coverage by full-time classified staff during these times . The maintenance, cleanliness, general upkeep, and front desk customer service of EPIC will be compromised, potentially impacting customers ' perception and rating of EPIC as a high quality City of Fort Collins facility. Offer 131 : Essential Library Services Original Cut: $3639780 Reduction Description : Recommended Cut: $ 1769149 This service reduction will reduce the library hours of operation by 8 hours at each facility for a total of 16 hours per week. Staff will eliminate the programs that fall outside the core services that public libraries must provide . This will include eliminating services that affect the fewest people including Bilingual Outreach Services programs to Spanish speaking families, Homebound Outreach for disabled patrons without transportation, elimination of the Homebound and Volunteer Coordinator (affects the use of 7 . 5 FTE volunteers in the library.) The IGA with FRCC calls for the library to be open at least 55 hours each week. With this reduction the Harmony Library will be open less than 55 hours . The IGA allows for this deviation only due to non-appropriation of funds . The priority list includes reducing Library funding by $176, 149, rather than the full $363, 780 in this offer. The impacts of the $176, 149 in proposed cuts at the library would include reducing City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 2 -7 hours of public service at each building (Main and Harmony) an additional 4 hours per week; the elimination of the vacant business librarian position; the elimination of external Outreach Services (including those for homebound, elderly, and bilingual); and a cut in notifications resulting in only one set of overdue notices being mailed before a collection agency takes the account. Please note that bilingual services would not be eliminated at the libraries. Bilingual customers would still be efficiently served on-site. Offer 179 : Senior/Adult Programs —"Ageless and Awesome" $779900 Reduction Description : Three service and expenditure reductions are offered from the Senior Center programs : • Eliminate the 20% discount on activities for adults age 60 and older based only on age . This would result in increased revenue ($24k). • Eliminate the trips program for adults/seniors, including eliminating a 1 . 0 FTE classified Recreation Coordinator. This will eliminate trips for older citizens who like to travel but no longer drive or choose not to drive long distances, as well as short day trips offered through this program. 139 trips involving 2,535 participants were held in 2005 ($38 . 9k) . • Cut miscellaneous expenses from this Offer, including supplies, food, and other commodities ($ 15k) . This would "tighten the purse strings " on spending. August 22 Work Session Follow-up: Can we keep some or all of the program if we were more efficient? Are there options for eliminating some discounts based on ability to pay ? Could a fee change make the trips program self supporting. Of the $ 77, 900 identified in this item, The Senior Trips program accounts for $38, 900. (Additionally, $15, 000 is cuts in various Senior Center line items, and $24, 000 is additional revenue generated by eliminating discounts for seniors age 60 and older based only on age). The expenses in the trips program are two fold.• 1) transportation and ticket/meal/lodging expenses ( estimated at $104, 800 in 2007); and 2) the expense of the classified Recreation Coordinator to plan and implement the program ($ 74, 100) *. All of the trips, with the exception of bus charters, are driven by either volunteers or the classified employee who sets up the trips, which means that there are no additional staff expenses. In 2007, the total expense requested for this activity is $178, 900. This program includes almost 150 trips/year (2. 8 trips average /week) for over 2, 600 participants. The 2007 revenue is projected at $140, 000, creating a General Fund support need of $38, 900. * In addition to planning all the trips, the Recreation Coordinator also provides facility and program support at the Senior Center for special events. This person also assists with the publication of Pathways, the quarterly program publicity brochure for adults and seniors. City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 2 - 8 Since expenses in item 1) above are fixed costs, and the program would not exist without a staff member organizing it, the only option to reduce impact on the General Fund is to raise fees, and thus increase revenue. Staff believes that a reasonable fee increase for most trips in 2007 could generate an additional $8, 900, reducing the General Fund impact to $30, 000. Offer 199 : Operating and Maintaining City Owned Memorial Parks $19,516 Reduction Description : The Cemetery Fund will reduce services in 2007 by reducing its seasonal workforce and delaying capital improvements . Maintenance will be deferred and trimming, mowing and weed control will be delayed. Capital improvements needed to increase revenue options will be delayed. i .e. an improved cremation garden venue. Savings from these cuts will be $ 19, 516 . August 22 Work Session Follow-up: Does the cut to this program effect family burial service hours (e.g. Saturday burials) ? Cuts recommended in the Cemetery Fund will not reduce burial services. The cuts will reduce the seasonal workforce and delay capital improvements to Grandview Cemetery. Improvements to the irrigation system at Roselawn Cemetery in 2006 will reduce the manual labor needed to operate the system in the future. Improvements to the cremation garden at Grandview Cemetery will be delayed. Offer 328 : Special Event Support $ 379000 Reduction Description : This expenditure reduction will affect special events sponsored by the Parks department, such as the 4th of July celebration. 4th of July fireworks will be reduced by $37 ,000 . Fundraising will be done in 2007 to help support the event and fund a portion of this reduction. If fundraising efforts are not successful, City Park preparation for the event will be significantly reduced. It will be a fireworks event only with no entertainment, no additional park preparation and next day cleanup only. This offer does not include Police, Fire or Transportation costs for this event. Offer 345 : Cultural, Library, Recreation Services Administration $ 339252 Reduction Description : This offer will reduce contractual and commodity expenses in the CLRS Administration budget and reallocate personal services to other divisions. Park Planning will fund 15 % of the CLRS Director' s position through impact fees, and Golf will fund 1 /4 of an Administrative Aide position previously paid for by the General Fund. Offer 369 : Maintenance of City Owned Hard Surface Trails $1259000 Reduction Description : This expenditure reduction will be made by using an additional $ 125 ,000 of Conservation Trust lottery money for trail maintenance . This will reduce the City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 2 -9 General Fund contribution to this service. There will be no impact on current service levels . August 22 Work Session Follow-up: What were the conservation trust fund revenues being spent on in previous years, and how will those programs be effected by shifting these revenues to trail maintenance ? Conservation Trust Funds are used primarily to build our trail system. To help balance the 2006-2007 budget, the trail construction budget was reduced by $90, 000 which is 8% of the $1, 100, 000 trail construction budget. The reduction would have been much greater without the significant increase in trail construction funding provided by Natural Resources. A reduction in the trail construction budget of an additional $125, 000 for 2007 represents a 12 % decrease and a 20% decrease over two years. Conservation Trust funding for trail construction would be approximately $885, 000 in 2007. A mile section of concrete trail costs about $350, 000 and trail underpasses cost about $400, 000. The $215, 000 annual reduction in trail construction could delay the build-out of our trail system by as long as five years. Offer 414 : Neighborhood Park Maintenance Original Cut: $ 65,000 Reduction Description : Recommended Cut: $ 40,000 Several service reductions will be made in the maintenance of Neighborhood Parks : • Trimming along fence lines , buildings, trees, etc . will be eliminated. • Trash collection will be reduced from 6 days a week to 2 or 3 days a week depending on the park site. • Equipment replacement budget will be reduced by $25 ,000. August 22 Work Session Follow-up: What is the City 's total expenditure for Neighborhood Park Maintenance and what percentage of reduction does $40, 000 represent? The City spends $1, 600, 000 for neighborhood park maintenance. Cuts recommended include $10, 000 for trimming around fences and structures in the park system and $30, 000 for reducing trash collection from 6 days a week to 2 or 3 days a week. Offer 415 : Community Parks Maintenance Original Cut : $2069000 Reduction Description : Recommended Cut : $146,000 Several service reductions will be made in the maintenance of Community Parks : • Trimming around fence lines, buildings, trees etc. will be eliminated in the park system. • Gateway Mountain Park will be taken over by Natural Areas or closed permanently. If Natural Areas is unable to take over the park, the City will be required to refund $ 100,000 to GOCO for funds that were used to create Gateway Park. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 - 10 • The City will no longer maintain the Picnic Rock area along Highway 14, unless Natural Areas staff can assume responsibility for maintenance. Picnic Rock is currently supported by one-time funding in 2007 of $ 18 , 500, Offer 433 . If Natural Areas assumes responsibility for Gateway in 2007 any funding for Picnic Rock should also be given to Natural Areas . If Gateway is closed there will be no park maintenance personnel in the Poudre Canyon and it will not be economically feasible to keep Picnic Rock open. • Lifecycle maintenance in the community park system will be reduced by $20,000 . This reduction will delay improvements and replacement of aging park infrastructure . • Equipment replacement will be reduced by $25 ,000 . • Spring Canyon Community Park maintenance will be reduced by one Park Technician position. Funding for this position in 2007 was to be used for equipment purchases and start up costs and the position was to be hired in 2008 . Equipment purchases will be delayed and Park Technician duties will be reorganized in order to meet the needs at Spring Canyon Community Park. Lights for basketball courts and tennis courts will not be turned on until on-going funding can be obtained in the future . Savings from this cut will be $55 ,000 , Total savings from cuts to this offer in 2007 are $206,000 General Fund. Staff recommends the Gateway Park portion of this offer. This $96, 000 General Fund expense would be shifted to the Natural Resources Department for future operation of the park. CLRS staff also recommends that the one-time funds allocated in 2006-07 for the maintenance of the Picnic Rock recreation area along the Poudre Rive be transferred to the Natural Resources Department. This area is owned by the Division of Wildlife and City Utilities, but is currently maintained by the same staff which maintains Gateway Park. Other minor reductions in equipment replacement ($50, 000), Park Lifecycle ($20, 000) and Trimming ($20, 000) are also included in the prioritization. These costs are split between offers 414 and 41 S) August 22 Work Session Follow-up: Picnic Rock: How can maintenance of this site be accommodated? Will it be picked up by Natural area? What other alternatives are possible ? If the currently budgeted, one-time funds for the maintenance of Picnic Rock are available to Natural Areas staff in 2007, the resident manager will be able to continue City maintenance of the area. Offer 423 : Gardens on Spring Creek / Community Horticulture Program $5,000 Reduction Description : Expenditure reductions will be made for the operations of the Gardens on Spring Creek. Commodities and contractual budgets will be reduced by $5 ,000, from the City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 - 11 previously proposed $60,300 to $55 ,300. We will accomplish this by cutting everything but the most essential needs, and applying more of our earned revenue to offset this cut. Offer 610 : Lincoln Center Offer Original Cut: $ 1029351 Reduction Description : Recommended Cut : $ 46, 115 This service reduction eliminates General Fund revenues totaling $ 102 ,351 . One Facility Assistant position ( 1 . 0 FTE) will be eliminated, saving $46,115 in General Fund expenditures . Lincoln Center advertising, marketing, meeting room and technical supplies and hourly personal services will be reduced by $35 ,640 , The Lincoln Center will also increase revenue to replace a portion of General Fund support in the amount of $20,600. Performance Hall rents will increase by 7% and users will be billed for previously unbilled technical services . The result of these reductions will be to limit rental of conference rooms on Mondays, reduce promotional efforts by 35 %, reduce maintenance and replacement of equipment and supplies, and place more of financial burden on Lincoln Center customers . This may result in out-pricing some customers . Transportation Services Offer 217 : Harmony Transfer Center $99500 Reduction Description : This expenditure reduction would defer maintenance at the Harmony Transfer Center. The reduction will create minimal service impact. The aesthetic appearance of the facility may suffer; there may be pavement cracks or low spots in the asphalt where water collects . Over time, deferred pavement and concrete maintenance will accelerate the deterioration of the facility and be more costly to repair later. Offer 219 : Regional Planning Organization Contributions $ 19,500 Reduction Description : This expenditure reduction eliminates the 20% contingency from the amount budgeted for the North Front Range Metropolitan Planning Organization (MPO) Fort Collins contribution. Fort Collins would not be able to meet its obligation if the MPO received unanticipated additional funding that would require any part of the 20% contingency. Offer 636 : Core Street Maintenance $ 10,856 Reduction Description : This service reduction will cut administrative support for the Streets Maintenance department by .25 FTE. The reduction will result in reduced levels of customer service to citizens, other service areas and staff including contacts in person, by telephone or by e-mail . City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 - 12 Offer 644 : Traffic Operations Original Cut: $819921 Reduction Description : Recommended Cut: $39,921 Three expenditure reductions are offered in the Traffic Operations Division budget. An efficiency improvement will be made by replacing Walk, Don 't Walk indicators, from incandescent to LED ' s. ($20,000 savings) An Equipment Operator II position will be eliminated, with other classified and hourly employees performing these duties ($20,000) . Neither of these reductions will result in noticeable impact to citizens . The final reduction in Traffic Operations is a $42 ,000 reduction in the budget for traffic signal materials and equipment will result in fewer signal improvements throughout the community. Intersections that meet warrants and have no other funding sources will not be built in 2007 and staff will not be able to respond to citizen requests for pedestrian crossings and signal upgrades . Additional funding for this program has been included in the Building on Basics capital program beginning in 2008 . This offer may have a significant impact on citizens . The CMO Budget Team recommends accepting only a portion of this cut offer. By accepting only $39, 921 of the offer, staff recommends retaining the Traffic Control Equipment portion of the offer. Two other portions of the offer would be accepted.- Eliminate $20, 000 by changing indicators to LED; eliminate current . 33 FTE Traffic Equipment Operator 11 position ($19, 921). Offer 674 : Transfort/Dial-A-Ride $6009000 Reduction Description , This service reduction would limit Dial-A-Ride para-transit services to the minimum level required under the Americans with Disabilities Act. The effect of these service reductions will include : • Elimination of paratransit service that is not within 3/4 mile of a fixed route. Impacted destinations include Foothills Gateway and Poudre Valley Hospital ' s Harmony Campus . • Elimination of service hours beyond the fixed route hours of operations . • Elimination of reduced fares for low-income passengers. All passengers would be charged $2 . 50 per one-way fare. • Elimination of service to non-disabled passengers . • Elimination of service to disabled passengers who are able to utilize fixed route service. All active clients would undergo re-certification to verify capabilities. High demand for Dial-a-Ride services has led to significant cost over-runs in this program in 2006. By continuing to offer the current level of service which is well beyond the minimum level required under the ADA, costs will continue to increase beyond the funds budgeted for the service. Transportation Services staff is working to develop alternatives which would allow the City to reduce the current service area for DAR (the GMA boundary) back down to the minimum required service level (314 of a mile from any fixed route service.) By reducing the DAR service area, the City may be able to use City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 - 13 the same amount of money to add to the fixed route system, allowing more passengers to use the fixed route rather than the more expensive DAR. By spending between $460, 000 and $1 . 2 Million, the fixed route system could be significantly expanded. Areas for possible expansion could include East Harmony Road to Ziegler Road, Timberline Road, and East Prospect Road. Staff will continue to work to develop alternatives for the DAR program which will contain program costs. August 22 Work Session Follow-up: See Section 4, Dial a Ride Proposal CMO Offer Suggestion : Pavement Management Program $700,000 Reduction Description . The City Manager 's Office Budget Team has added a reduction suggestion to the list of cut offers provided by the Service Directors. The Pavement Management Program was not fully funded in 2006, receiving $ 700, 000 less than the full funding level requested for the program. This reduction would continue to under- fund the Pavement Management Program by $ 700, 000 in 2007. During the next few months, the PMP will also be reviewed to evaluate the best practices for the street maintenance program to seek efficiencies or process improvement opportunities. High Performing Government Offer 47 : Municipal Court Services - Non- Camera Radar/Red Light Cases $29,600 Reduction Description . The Municipal Court has offered several expenditure reductions that are a result of efficiencies and changes in case load. These reductions can be made without significantly impacting services to the community. Included are a reduction of the Deputy Court Clerk' s FTEs from 3 . 5 to 3 . 0 and reduction of the Judge's FTE from 0 . 75 FTE to 0. 70 FTE. This will eliminate a . 5 FTE position that is currently vacant. Judge Lane believes that these efficiencies can be made without affecting service levels. Offer 84 : Municipal Court Services Camera Radar/Red Light Cases $14,250* Reduction Description : This expenditure reduction in the Municipal Court ' s Camera Radar/Red Light program will reduce the Judge's position from 0 . 15 FTE to 0 . 05 FTE. The reduced FTE more accurately represents the amount of judicial time currently needed for this area. ($ 14,250 is restricted revenue for camera radar uses only) Offer 85 : Municipal Court Services Liquor Licensing Authority $79125 Reduction Description . This expenditure reduction would change the Judge ' s FTE allocated to Liquor Licensing Authority duties from 0 . 10 to 0 . 05 FTE . The reduced FTE more accurately represents the amount of judicial time currently needed for this area. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 - 14 Offer 214 : Building Systems and Energy Original Cut. $2749310 Reduction Description : Recommended Cut: $1619476 These service reductions in the Building Systems and Energy area will total $274,310 . Reductions will include : • Elimination of the on-going funding for a portion of a buyer position. Purchasing will resume funding this portion using one-time funding. • Savings in utilities (Natural Gas, Water, Electricity) and maintenance/repair costs through the proposed closures of the following buildings : o Downtown Restrooms (in Remington St. Parking area) o 321 Maple (2 staff will relocate to 215 N. Mason office bldg.) o 110- 114 N. Howes (Police staff will relocate temp . to 215 N. Mason, Friends of the Library will need to relocate.) o 300 N Howes (Cramers) (Vacant) o 304 N Howes (Vacant) o 304 1 /2 N Howes (Vacant) o 214 N Howes (Recreation Administration) . (Staff will relocate to 215 N. Mason office bldg.) • Savings in utilities (Natural Gas, Water, Electricity) and maintenance/repair costs through the proposed ap rtial closures of the following buildings : • Partial closures ( 1 /2 year) of: Youth Activity Center (YAC), and 228 LaPorte (Police Annex) • Leasing of 212 LaPorte (Abraxis) • Eliminate funding for maintenance and repair of Fire Stations 1 -4 by Operations Services . A review of the inter-governmental agreement between the City and PFA indicates that PFA receives an annual allocation for the maintenance of the Fire Stations from the City. Thus PFA will need to fund future expenses . • Reduction of non-specific maintenance and repair funding ($ 85 ,563 ) of facilities . The City's financial policy has a stated goal of providing an on- going funding level of 4% of the Current Replacement Value (CRV) of maintained general fund buildings . With this reduction, the funding for maintenance and repair of general fund buildings will be : 1 . 19% on-going and . 95 % one-time for a total of 2 . 1 % CRV. Some unforeseen repairs may have to be deferred unless life-health-safety related. Staff believes that $161, 000 of this cut offer can be secured without substantially impacting service levels. August 22 Work Session Follow-up: Provide a detailed list of what cuts would be made and which would be avoided with the $195, 000 estimate. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 - 15 1. Would public restrooms be closed? No, the downtown restrooms would not be closed in 2007. This facility is located in the north-west section of the Remington Street Parking Lot. It contains a small (99 sf. woman 's & 106 sf. men 's) restroom facility. Although it is inadequate for today 's needs it will remain open pending its replacement or the proposed hotel development at this site. It was recommended to be closed due to its inadequacy, upkeep costs, and public safety / security concerns. The building is used by the homeless as a shelter and possible other dealings. If it was closed, we propose to install portable restrooms in the parking structures. The 2007 budget savings would be $ 7, 270 if closed. 2. Other Buildings proposed for closure? (See photos, Section 6, Attachment 2) a. Police Annex This 4, 550 s f. facility would remain open for % year pending the fitness center 's relocation to the new police services building in 2007. Currently, there is no proposed use of this building. Budget savings: $13, 740. b. 110 —114 N. Howes building Modules of this 2, 210 sf. building are used by both the police school resources officers (SROs) and the Friends of the Library. The SROs would temporarily relocate to 215 N. Mason pending the opening of the new police services building in 2007. It is likely that the Friends of the Library will pay to lease the 860 sf. module they are in. Budget savings: $9, 400. c. Youth Activity Center This leased 28, 720 sf. recreation center is proposed to be closed once the new Northside center is opened. % year budget savings: $15, 500. d. 214 N. Howes This 6, 900 sf building is currently being used by Recreation Administration staff. There is adequate space within the 215 CLRS portion of 215 N. Mason to relocate these personnel to that building thus freeing up the building for possible leasing or be "mothballed " pending a future use. Budget savings: $24, 478. e. 321 W. Maple — This 1, 950 s.f building is currently being use by the Budget Office. There is adequate space with the Financial Services portion of 215 N. Mason to relocate the budget staff to that location. The building may be leased or "mothballed " pending a future use. Budget savings: $8, 100. f. 212 W. LaPorte This 6, 380 sf building is being leased to Abraxis Glass pending the construction of their new facility. It is anticipated that they will remain here through 2007 if not the building will be "Mothballed " pending a future use. Budget savings: $19, 500. g. 300, 304, and 304112 N. Howes These three buildings include the old "Cramer 's and "CV Axel "facilities and a small house all located on block 33. The major portion of block 33 is under contract to be sold for residential development. Since these buildings are included in this contract there is no need for the City to maintain them. Budget savings: $10, 486. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 - 16 3. What other cuts are proposed in this offer? a) A portion of a purchasing FIE ( 05) who directly supports Operations Services. Purchasing will fund this cut with one-time funding in 2007. Budget savings: $4, 312. b) A portion of the maintenance dollars budgeted for fire stations I thru 4. Based on the average maintenance expenses over the past 3 years for these buildings, the actual budget should be less. Item 4b is refers. Budget savings: $55, 600 4. What will be retained? a) General building maintenance funding for non planned / unforeseen repairs which may occur during 2007 in the amount of$85, 564. b) Funding for general maintenance of fire stations I thru 4 in the amount of$20, 000. This is the 3 year average yearly routine maintenance costs for the 4 facilities. c) As noted in 1, the Downtown Restrooms will be retained. Budget: $ 7, 270. 5. How will we save fuel? Operations Services has hired Johnson Controls as an ESCO (Energy Services Company) to audit 28 of the city 's major buildings for energy saving opportunities. The goal is to enact these projects/upgrades with the hopes of saving up to 15 % of the combined energy costs of these targeted buildings. Part of the savings attained will fund the ESCO projects (HVAC upgrades, lighting change outs, building envelope alterations) with paybacks between 10 and 15 years. Offer 238 Accounts Payable processing $ 15,500 Reduction Description . Delay in replacement of PC's, get rid of old check printer, remove privacy phones, may result in reduction in customer service . August 22 Work Session Follow-up: Why was this $15, 500 offer not included in the Level 3 cuts ? What is a privacy phone ? This reduction is included in the City Manager 's Recommended Budget. Several privacy phones are provided in the 215 Mason Administrative Building. These phones are available to employees for use during the work day when a phone call needs to be completed in private. Since most employees in this building are in cubicles which offer little privacy for confidential or possibly personal phone calls, these phones provide alternative phones—essentially a phone booth. The department will cut a small amount of cost by disconnecting its privacy phone. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 - 17 Offer 355 : Payroll Processing $525000 Reduction Description : This expenditure reduction is made possible through efficiency improvements such as saving on paper forms by converting to electronic timesheets, delaying the replacement of PCs for staff and discontinuing the maintenance contract for the payroll system. The reduction will not result in any significant impact to citizen services. August 22 Work Session Follow-up: Why was this $52, 000 offer not included in the Level 3 cuts ? This reduction is included in the City Manager 's Recommended Budget. Offer 359 : Procurement Process $109000 Reduction Description : This service reduction would include a reduction in advertising for the purchasing division, elimination of departmental maintenance contracts and reductions in phone usage . The cost of copier rental for the Purchasing Division will be transferred to Risk Management. This will result in delays in responses to vendors and departments . Offer 442 : Sales & Use Tax $ 16,200 Reduction Description : This service reduction will include reducing travel by Sales Tax auditors by 42%. This will result in fewer out-of-town audits for auditors . Some revenue may be lost if audits do not occur. The Sales and Use Tax division will also delay the replacement of some computers, extending the division' s replacement schedule . Offer 460 Enterprise Resource Planning (ERP) Base Services original: $131 ,686 Reduction Description : Recommended Cut : $100,000 These expenditure reductions will not directly affect services to citizens . The following reductions were made : Reduce Equipment Replacement by $ 100,000 ; Reduce Other Commodities by $30,000 ; Reduce Other Contractual by $ 1 ,686 . Because of changes in technology, existing equipment replacement funds are sufficient for the next hardware replacement. However, future equipment and/or application replacement will depend on requests for one-time funds , as no reserve will be available . The reduction in commodities will affect ability to purchase auxiliary computer equipment such as additional disk space, hardware for testing and prototyping, etc . The ERP Equipment Replacement budget of$100, 000 can be eliminated, but the CMO Budget Team does not recommend accepting the balance of this cut offer. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 - 18 Offer 470 : Department of Transportation (DOT) Compliance Program $5,630 Reduction Description : This service reduction would be accomplished by transferring DOT responsibilities to Risk Management from the Human Resources Department. The position is a . I I FTE . Responsibility for other DOT related activities currently fall under Risk Management. They interact with, support and provide direction to the person in this position, therefore this move will create a need for additional coordination between Risk Management and HR related to drug test results and will have some impact on HR administrative support staff. This position administers the contract employee process and provides back-up to HR secretaries. This work will have to be absorbed by current staff. Offer 510 : Rebate Programs $86,550 Reduction Description : This service reduction will include hiring fewer contractual staff to administer the City ' s Rebate Programs . This staff reduction will delay the processing of rebates . A reduced and more accurate funding level for rebates (based upon the 2005 experience which provided funding to nearly twice as many households as a result of higher household income limits) will also be budgeted in 2007 . Finally, advertising for the program will be cut in half ($2 ,000) . These changes will result in minor impacts to the overall program. Staff has concerns about the cost of checking citizenship status of all applicants. This may affect the cost of administering the program. Therefore, staff has recommended only accepting half of this cut offer. August 22 Work Session Follow-up: Does this decrease funding for actual rebates or is it solely for the program publicity ? What are the program cuts ? This service reduction will include hiring fewer contractual staff to administer the City 's Rebate Programs. This staff reduction will delay the processing of rebates. A reduced and more accurate funding level for rebates (based upon the 2005 experience which provided funding to nearly twice as many households as a result of higher household income limits) will also be budgeted in 2007. This more accurate projection of program costs should result in no financial impact to those applying for the rebates. Offer 560 : Accounting and Internal/External Financial Reporting $ 10,400 Reduction Description : This reduction will eliminate the use of contractual assistance for the annual audit process, which will result in a delay in completion of CAFR. However, the CAFR will still be produced in compliance with the Charter deadline of May 31st City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 - 19 Offer 582 : High Performing Hiring Original Cut: $-26,570 Offer 583 : Performance Excellence $449340 Offer 584 : Human Relations Business Partners $889670 Reduction Description : Recommended Cut: $15,270 This service reduction eliminates and reduces staffing levels in the Human Resources Department. These positions were previously in three Human Resources offers, 582, 583 , and 584 . A 1 . 0 FTE Senior Human Resource Representative position would be reclassified to a lower level Staffing Representative position and the Assistant Human Resources Director position would be eliminated. The elimination of two key positions within the HR department will significantly impact the department ' s ability to transform the HR department to more fully meet the needs of the organization. The Assistant Director position cut will impact the ability to deliver service improvements; will reduce oversight for legal issues related to recruitment and selection; ADA compliance; and background and drug testing. The department will also be less able to create business partner relationships with all City departments. All three HR offers are combined and the Assistant HR Director position would be retained. Offer 626 : Finance Administration and Financial Advisory Role $779149 Reduction Description : These expenditure reductions include a delay in ordering office supplies for the Finance department and elimination of privacy phones in the department. These actions will result in minor impact. The department will also eliminate a vacant 1 . 0 FTE position which was included in the 2007 Budget due to prior year budget duplication. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 -20 Services and Expenditure Reductions NOT Recommended September 26, 2006 Economic Health Offer 226 : Economic Vitality and Sustainability : Long Range Planning $10,000 Reduction Description : Funding for City Council Policy Agenda work is reduced by $ 10,000 in each of three offers (#226, #394, and #408) for a total reduction of $30,000. This will cut by 50% the Service Area' s ability to engage independent contractors to assist with analysis and timely response to emerging Council policy issues . In the past, these funds have been used on projects such as the Impact Fee Analysis, Timnath Community Separators, Natural Area Buffer Standards, Regional Retail Analysis, Poudre River Contamination, and the City Plan Survey. Offer 408 : Development Review Center $669173 Reduction Description : Funding for City Council Policy Agenda work is reduced by $ 10,000 in each of three offers (#226, #394, and #408) for a total reduction of $30,000. This will cut by 50% the Service Area' s ability to engage independent contractors to assist with analysis and timely response to emerging Council policy issues . In the past, these funds have been used on projects such as the Impact Fee Analysis, Timnath Community Separators, Natural Area Buffer Standards, Regional Retail Analysis, Poudre River Contamination, and the City Plan Survey. This service reduction offer also reduces a Planning Technician position from 1 .0 FTE to . 5 FTE, an Environmental Planner Position from 1 . 0 FTE to . 75 FTE and a reduction in funding for Outside Reproduction Costs by $ 12 ,000 . Offer 411 : Downtown District Maintenance $ 539500 Reduction Description : This service reduction will eliminate annual flowers planted at any City facility in the downtown area that Parks maintains . This cut does not include Old Town Square which has a separate funding source for its flower program, medians and parkways along College Avenue or the flower garden in Civic Center Park. City facilities that will be affected include Library, Museum Courtyard, City Hall, Police Building, Avery House, Lincoln Center, Mulberry Pool, City Office Building, Transit Center, and flower beds on Block 31 . Offer 428 : Police - Patrol - District One Substation — Basic $495,595 Reduction Description : This service reduction would eliminate the District One Police Substation. Four sworn officer positions and one sergeant position would be eliminated. (The liquor officer would be maintained) . Not recommended; portions of costs for non personal services are included in other offers in the Safer Community Result area. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 -21 Offer 490 : Economic Program Leadership $209705 Reduction Description : This service and expenditure reduction reduces support staff for the Economic program by eliminating a .25 FTE Executive Administrative Assistant and a . 05 FTE Policy and Project Manager. Suggest not cutting Policy Manager position; may be possible to move Admin. Aide portion to be funded through Vendor Fee revenue. Offer 537 : Economic Marketing and Strategic Public Relations $ 15,000 Reduction Description This service reduction would eliminate the City ' s financial participation in the Downtown holiday lights display. This program is currently a cooperative effort between the City, the Downtown Business Association and the Downtown Development Authority. Lack of City funding will reduce the scale of the holiday display which will in turn impact the ambiance of the downtown. The holiday light display is undertaken to attract people to Old Town for holiday shopping, dining and recreation. Cutting holiday lighting contribution may conflict with the City 's commitment to take over this function in the future. Environmental Health Offer 311 : Climate Wise $29500 Reduction Description : This service reduction eliminates $2,500 in program funds for the Climate Wise program. These funds would have provided partner support. These funds are already limited and the program is growing. Any reduction in the budget will limit services available . Offer 370 : Waste Reduction & Recycling Original Cut: $689111 Reduction Description : Recommended Cut : $ 1 ,500 This service reduction moves an Environmental Planner position to a . 50 FTE and eliminates $30,000 in program funds . The program will no longer provide services to the Resource Recovery Farm project. Services provided to Climate Wise will be reduced or eliminated. The Christmas tree recycling program will be eliminated. Education and outreach will be substantially reduced. This program provides services to help the community attain a 50% solid waste diversion rate. It manages the Resource Recovery Farm business plan; the Pay — as-You-Throw ordinance ; provides education/outreach; and develops news programs and policies . Only the portion of the offer which transfers $1500 of the Natural Resources Director 's salary to non- General Fund sources is recommended for reduction. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 -22 Neighborhood Quality Offer 91 : Housing & Community Development (H&CD) Offer $839750 Reduction Description : This service reduction would eliminate 25 % of the Human Services Program funds allocated to agencies serving households below 80% of Adjusted Median Income. The City currently oversees the City' s portion of Community Partnership Program funds . Those assets have traditionally been managed by the Larimer County Health and Human Services Division through coordination with the City. Safer Community Offer 69 : Police - Information Services Basic $86,538 Reduction Description : This service reduction would eliminate a Police Report Specialist and a portion of the Police Training Officer which are included in this offer. The Report Specialist will likely be eliminated from the District One substation. The balance of the Training Officer position is eliminated in Offers 332 and 438 . Offer 321 : Police Investigation - Criminal Impact Unit . CIU $509,409 Reduction Description : This service reduction would eliminate Police Services ' Criminal Impact Unit (CIU) . The CIU exists for the purpose of identifying patterns of serious criminal activity in the community and developing proactive, preventative strategies to reduce these risks and provide a flexible response to these crime patterns . The CIU investigates and tracks gang members, gang activity, and identifies patterns of serious criminal activity. The elimination of the (CIU) would eliminate these gang and career criminal response services and it would become increasingly difficult to identify patterns of serious criminal activity and to develop problem solving strategies to reduce these risks and prevent criminal activity. It would also prevent the tracking and targeting of criminal activity by career criminals, and limit the department' s ability to arrest wanted fugitives . Four Detectives and one Police Sergeant position will be eliminated through this service reduction. Offer 332 : General Investigations Property/Major Crimes $1309591 Reduction Description : This expenditure reduction is tied to the elimination of offer 321 (Criminal Impact Unit) and the reduction of Offer 341 (School Resource Officer Program) . All vehicle lease purchase expenses and operating/maintenance costs along with some other divisional associated costs were included in this offer when the original offers were written. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 -23 This revised offer also includes the elimination of Investigations contribution to one training officer position. Each major service area will be reducing its original offer by their corresponding contribution percentage to reflect a total reduction of 1 FTE , Offer 341 : Police Investigations - School Resource Officers $2699697 Reduction Description , This service reduction would reduce the scope of the School Resource Officer program. Under this revised offer, School Resource Officers (SROs) would be removed from elementary and Junior High feeder schools but remain in place at the four traditional Fort Collins high schools . This reduction would eliminate 6 SRO positions, leaving four SROs and one sergeant in the program. This reduction would also result in the loss of funding provided by Poudre School District (PSD) for a portion of this program. The revenue loss will equal $2621074 , Offer 354 : Police - Information Services Equip./Computer Replacement $3 ,600 Reduction Description . This expenditure reduction would reduce Equipment Replacement funds for Police Services by $3600 . Offer 371 : Police Investigations - Restorative Justice $ 18,284 Reduction Description : This service reduction would eliminate the .25 FTE Restorative Justice Coordinator position. Offer 438 : Police -Patrol — Basic $280,640 Reduction Description . This service reduction will eliminate the Patrol Division ' s contribution to one training officer position and one ( 1 . 0 FTE) Crime Prevention Officer. Each major service area will be reducing its original offer by their corresponding contribution percentage to reflect a total reduction of 1 . 0 FTE . The elimination of the Crime Prevention Officer will directly impact the community, as the preventative services this position provides will be eliminated. $121, 000 of this cut package provides the non personal services portion of other cut offers such as District One, SRO, and Traffic Enforcement. Offer 646 : PFA Service $193309147 Reduction Description . The Poudre Fire Authority service reduction offers impact three areas of the department' s services . Since 86 . 7% of PFA's operating budget consists of personnel, a cut of $ 1 ,330, 147 would heavily impact staffing and service levels . The service reduction packages that would have the least impact on emergency response and overall organizational support include : City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 -24 1 . Elimination of engine company # 10 $ 8401000 2 . Reduce south ladder truck from 4 to 3 $2739000 personnel per shift, reducing 3 positions 3 . Reduce the Fire Prevention Bureau by one $971387 position 4. Various line item reductions including $581541 overtime conferences & training $471988 and tuition reimbursement $ 131231 August 22 Work Session Follow-up: Poudre Fire Authority has addressed these follow-up questions in a memorandum provided to Council on September 7, 2006. See Section 6, Attachment 1 . Cultural, Library and Educational Offer 159 : Museum Program $ 27,006 Reduction Description : Several expenditure and service reductions will be made by the Museum. • Reduce Museum advertising budget by 50% • Reduce Museum programs and exhibits budget by 30% • Add an admissions charge for Museum visitors, thus reducing General Fund support of the facility. Offer 344 : Urban Forest Management $ 65,028 Reduction Description : This service reduction will eliminate one full time classified Forestry Technician position. The Forestry Division has 6 classified Forestry Technicians that are involved in maintaining 40,000 trees on city property. By cutting one Forestry Technician ($65 ,028) the pruning rotation for trees on city property will be extended from 9 to 11 years . Customer requests and complaints will increase due to reduced tree pruning, removal and planting. Hazard tree work will remain a priority but an increased risk of an accident will occur from falling trees or limbs . Tree replacement will be reduced from 50 percent of removed trees being replaced to only 40 percent. The condition of the cities urban forest will decline due to reduced maintenance . The cities ability to deal with the storm clean up of down trees and limbs will be reduced. Offer 610 : Lincoln Center Offer Original Cut: $ 1029351 Reduction Description : Recommended Cut : $ 46, 115 This service reduction eliminates General Fund revenues totaling $ 102 ,3511 One Facility Assistant position ( 1 . 0 FTE) will be eliminated, saving $46, 115 in General Fund expenditures . Lincoln Center advertising, marketing, meeting room and technical supplies and hourly personal services will be reduced by $35 ,640 . The Lincoln Center will also increase revenue to replace a portion of General Fund support in the amount of $20,600 . Performance Hall rents will increase by 7% and users will be billed for previously unbilled technical services . City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 -25 The result of these reductions will be to limit rental of conference rooms on Mondays, reduce promotional efforts by 35 %, reduce maintenance and replacement of equipment and supplies, and place more of financial burden on Lincoln Center customers . This may result in out-pricing some customers . Improve Transportation Offer 340 : Maintenance of City Owned Medians $ 30,000 Reduction Description : This service reduction will reduce the median maintenance contract from an 8 month contract to a 7 month contract. Median maintenance will therefore end one month earlier in the fall . Some plant loss may occur if there is a hot dry fall, weeds may develop in the fall before a hard freeze occurs, and grass may continue to grow after contract period has ended and will not be mowed until spring. Budget will be reduced by $30 ,000 . Offer 434 : Police - Patrol - Traffic Unit — Basic $3639310 Reduction Description : This reduction would eliminate the Police Traffic Unit, including three sworn officers and one sergeant. This will eliminate the team of officers and supervisor whose primary assignment is to enforce the city and state traffic code . Traffic ticket surcharge revenue will be lost as a result of this reduction. Offer 644 : Traffic Operations Original Cut: $819921 Reduction Description : Recommended Cut: $39,921 Three expenditure reductions are offered in the Traffic Operations Division budget. An efficiency improvement will be made by replacing Walk, Don 't Walk indicators, from incandescent to LED ' s. ($20,000 savings) An Equipment Operator II position will be eliminated, with other classified and hourly employees performing these duties ($20,000) . Neither of these reductions will result in noticeable impact to citizens. The final reduction in Traffic Operations is a $42 ,000 reduction in the budget for traffic signal materials and equipment will result in fewer signal improvements throughout the community. Intersections that meet warrants and have no other funding sources will not be built in 2007 and staff will not be able to respond to citizen requests for pedestrian crossings and signal upgrades . Additional funding for this program has been included in the Building on Basics capital program beginning in 2008 . This offer may have a significant impact on citizens . The CMO Budget Team recommends accepting only a portion of this cut offer. By accepting only $39, 921 of the offer, staff recommends retaining the Traffic Control Equipment portion of the offer. Two other portions of the offer would be accepted: Eliminate $20, 000 by changing indicators to LED; eliminate current . 33 FTE Traffic Equipment Operator 11 position ($19, 921). City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 -26 High Performing Government Offer 181 : City Clerk Administrative Clerk $ 509189 Reduction Description : This service and expenditure reduction eliminates an Administrative Clerk I position ($47 , 694) in the City Clerk' s Office . Elimination of this position, which serves as the front desk receptionist, will have a negative impact on customer service, including leaving the office front desk unattended and possibly leading to the elimination of the new passport application service. In addition the cost of April elections will increase due to the need to hire temporary employees to assist during the election and in increased overtime for existing employees . The service reduction will also eliminate the annual appreciation event for board and commission members ($2 ,495 ) . Offer 193 : Elections $79125 Reduction Description : This offer reduces the funding for the November 2007 special election by $7, 125 , It is possible that this reduction is not practical to make, since the cost of elections is set by Larimer County and will be based upon their cost for running the coordinated election. Offer 211 : Custodial Services $789290 Reduction Description : A number of service and expenditure reductions are offered by Operations Services in the area of custodial service in a variety of City facilities, with a total cost reduction of $78 ,290. • Eliminate Senior Center custodial services in the administration offices, mail room, office conference room, studio, wet crafts room, tech office and break room. Senior Center staff will need to clean these areas . • Reduce EPIC carpet vacuuming to every other day instead of daily. In addition, bleachers will be cleaned twice a week instead of daily. • Eliminate two days of custodial services, including trash removal, at Lee Martinez Farm (from 7 days to 5 days) . • Reduce hallway carpet cleaning at 215 N Mason, 281 N College, and the cleaning of Library low traffic carpeted areas from twice a year to once a year. • Reduce exterior window cleaning at 35 general fund buildings to once a year instead of twice a year. • Eliminate half year of custodial services at YAC, and all custodial services at: 321 Maple, Downtown Restrooms, 110- 114 Howes, Police Annex and 214 N Howes if these facilities are closed as denoted in Offer 214 (below) . • Reduce office cleaning and trash removal in 26 general fund buildings with offices to once every other week instead of weekly. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 -27 • Elimination of on-going funding for a portion of a Buyer FTE ($4,313 salary & benefits) . Purchasing will resume funding this position using one-time funding. Offer 445 : Treasury Services $ 12 ,207 Reduction Description : Expenditure reductions in the Treasury Services Division will include discontinuing the City' s lease of a monitor from Bloomberg for real time delivery of Financial Information System (no impact to service since existing equipment could be used) and reduction from a full 1 . 00 FTE to a . 85 FTE for the Financial Analyst position. The result of the reduction will be a delay in processing cash flow projections on major capital projects such as the Police Bldg & Northside Aztlan Center. Offer 458 : Cable/Media $ 10,000 Reduction Description : This expenditure reduction would delay Equipment Replacement for City Channel 14 and remote cameras in Council Chambers, DVD duplication equipment, studio sets, editing systems, etc . This cut would delay equipment replacement cycle with the risk of not meeting the 2009 deadline for conversion to digital format. Offer 460 Enterprise Resource Planning (ERP) Base Services $1319686 Reduction Description : Recommended Cut : $100,000 These expenditure reductions will not directly affect services to citizens . The following reductions were made : Reduce Equipment Replacement by $ 100,000 ; Reduce Other Commodities by $30,000 ; Reduce Other Contractual by $ 1 ,686 . Because of changes in technology, existing equipment replacement funds are sufficient for the next hardware replacement. However, future equipment and/or application replacement will depend on requests for one-time funds, as no reserve will be available . The reduction in commodities will affect ability to purchase auxiliary computer equipment such as additional disk space, hardware for testing and prototyping, etc . The ERP Equipment Replacement budget of$100, 000 can be eliminated, but the CMO Budget Team does not recommend accepting the balance of this cut offer. Offer 471 : City Council Core Services $ 12 ,000 Reduction Description : This expenditure reduction reduces the amount of funds available in 2007 for City Council to travel for City business. The Council travel budget for 2007 would be reduced to $ 18 ,000 , City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 -28 Offer 477 and 480 : City Manager' s Office - City Council Policy Development and Management; Organizational Leadership & Implementation $639270 $499153 Reduction Description : These service reductions in the City Manager' s Office would result in the elimination of one Executive Administrative Assistant position in the City Manager's Office for . 75 FTE (the balance of this position would be eliminated in Offer 490 as it provides support to the Economic Advisor.) An additional service reduction in the City Manager' s Office would include the elimination of a . 5 FTE Policy and Project Manager (with a small portion of the FTE included in the Economic Program Leadership Offer) This position provides policy development and implementation for special projects, such as the Southwest Annexation, Nuisance Ordinance, etc . Expenditure reductions in the City Manager's Office would be made in line items for office supplies and equipment, for professional development of staff, and other unexpected expenses that occur during the year. Portions of the Intergovernmental Affairs program are included in this offer. This program would be eliminated in another service reduction offer. Staff would recommend cutting only the vacant Administrative Assistant position, possibly transferring a portion of the cost to Vendor Fee revenue. Retain Policy and Project Manager position. Offer 482 : Basic Enterprise GIS Software & Support $359000 Reduction Description : This expenditure reduction would diminish equipment replacement funding for Basic GIS systems by $30,000 . With this reduction, the existing system will not be upgraded or replaced until after the normal replacement cycle, which will increase risk of equipment failure and reduce the ability to meet City department' s increasing need for geographic based data. Data conversion funds were eliminated, further reducing the budget by $ 5 ,000 . The total reduction for this offer is $35 ,000 . Offer 483 : Information Technology Application Development and Support $49,052 Reduction Description : This service reduction will eliminate a . 5 FTE position which supports critical applications such as Ballot Tracking for Elections, Petitions, Liquor Licenses, and the City' s check writing application. (Accounts payable, payroll, etc), database administration and support for fcgov. com web applications. By eliminating this . 5 FTE, MIS ' ability to assist City departments with application development in support of their business needs is severely hampered. This type of support is also needed to reach citizens through the City' s website and get information back from the citizens by survey or other electronic form using a database application City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 -29 (such as "Ask the City Manager"). Reducing staffing in this area will limit the City ' s ability to develop similar new applications. Offer 484 : Professional Enterprise GIS Hardware/Software & Support $ 10,000 Reduction Description . This expenditure reduction would diminish equipment replacement funding for Enterprise GIS systems by an additional $ 10,000 . With this reduction, the existing system will not be upgraded or replaced until well after the normal replacement cycle, with the same impacts as stated above. Offer 509 : Business Outcome Support/Budget Office $49250 Reduction Description : This expenditure reduction reduces the Budget Office ' s funding available for office commodities and equipment. Offer 529 : City Attorney' s Office--Legal Services $ 105,972 Reduction Description . The City Attorney' s Office has offered three service and expenditure reductions . The first reduction would reduce non-personal services including conference and training and other minor line items . The second reduction would be to reduce the projected Assistant City Attorney salary adjustments . The adjustments were budgeted to realign these salaries more appropriately in the local market. The final reduction offer would be to eliminate a . 5 FTE Assistant City Attorney. Offer 538 : Bridging the Community & City through Communication $30,800 Reduction Description This service reduction would eliminate the publication of City News & reduce other contractual expenses within the Communications and Public Information Program. The contractual expenses will include eliminating funding for part-time hourly staff support. City News is used by nearly every city department to share information with residents . Offer 539 : Intergovernmental Relations $789135 Reduction Description This service reduction would eliminate the Intergovernmental Relations program, including the Legislative Affairs Coordinator. In addition to managing the City' s legislative lobbying efforts through the Legislative Review Committee, this individual also provides broad support services in the City Manger' s Office. Additional services include providing internal communications including legislative updates, issue analysis, response to Council queries ; External communications including City Manager' s Update, City Manager' s newspaper column, position papers, public speaking, and response to citizen queries . Offer 558 : Network file and printer server operations $22 ,350 Reduction Description : The Systems Group of the IT Department currently maintains and support several file servers that use Novell NetWare, Microsoft Windows, Linux, HP-UX City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2-30 operating systems . This expenditure reduction reduces equipment replacement funding by $ 12 ,350 and reduces JDE System support by $ 10,000 . The ERP budget will absorb the JDE System support reduction. Server replacement will depend on one-time funding requests rather than establishing an equipment reserve for the timely replacement of enterprise critical servers. Offer 582 : High Performing Hiring $-269570 Offer 583 : Performance Excellence $449340 Offer 584 : Human Relations Business Partners $889670 Reduction Description : Recommended Cut : $ 15,270 This service reduction eliminates and reduces staffing levels in the Human Resources Department. These positions were previously in three Human Resources offers, 582, 583 , and 584 . A 1 . 0 FTE Senior Human Resource Representative position would be reclassified to a lower level Staffing Representative position and the Assistant Human Resources Director position would be eliminated. The elimination of two key positions within the HR department will significantly impact the department ' s ability to transform the HR department to more fully meet the needs of the organization. The Assistant Director position cut will impact the ability to deliver service improvements; will reduce oversight for legal issues related to recruitment and selection; ADA compliance; and background and drug testing. The department will also be less able to create business partner relationships with all City departments. All three HR offers are combined and the Assistant HR Director position would be retained. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 2 -31 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CMO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers Economic Health 2007 Expenditure and Service Reductions Offer # Offer Title Reduction/Impact Cuts 226 Economic Vitality & Reduce City Council Reduce City Council Policy Agenda work by $10,000. (See offer 394 and 408 for total Sustainabiliry: Long Policy Agenda work reduction of $30,000) Will reduce ability to engage independent contractors to assist with Range Planning analysis and timely response to emerging Council policy issues. Examples of past projects are the Impact Fee Analysis, Natural Area Buffer Standards, Regional Retail Analysis, and City Plan Survey. (10,000) (103000) 287 Economic Vitality & Reduce Landmark Reduce Landmark Rehab Loan Program by $1 OK, leaving $15K. Eliminate the Design Sustainabiliry: Financial Rehab Loan Assistance Program of $51K. Tools Program & Design Assistance Program (159000) ( 15,000) 408 Development Review Various Reductions FTE reduction of 0.75 (.5 Planning Technician and .25 Environmental Planner. Reduce Center outside reproduction costs by $12,000. Reduce City Council Policy Agenda work by $10,000. (See offer 394 and 226 for total reduction of $30,000) Will reduce ability to engage independent contractors to assist with analysis and timely response to emerging Council policy issues. Examples of past projects are the Impact Fee Analysis, Natural Area Buffer Standards, Regional Retail Analysis, and City Plan Survey. (66, 173) (66, 173) 409 Urban Renewal Authority Fund with Restri nges the funding source from ongoing General Fund to one-time Economic Health Revenues Vendor Fee reserves. (62,741 ) (62,741 ) (62,741 ) 411 Downtown District Downtown Core Area Cut downtown core area horticulture program . Annual flowers will not be planted at any City Maintenance Horticulture facility in the downtown area including: Library, Museum Courtyard , City Hall, Police Building, Avery House, Lincoln Center, Mulberry Pool, City Office Building, Transit Center, and flower beds on Block 31 . The effect of the cut will be a lack of color at downtown facilities during the summer months. Areas where flowers were planted will have a weedy appearance, making City facilities less attractive. (539500) (53,500) 428 Patrol District One Eliminate District FTE reduction of 5 (4 Police Officers and 1 Sergeant). Will maintain the liquor officer. Substation One Substation Eliminates the District One substation and building rental expenses. Dramatic reduction in community oriented policing efforts. (4952595) (495,595) 490 Economic Program Reduce .3 FTE FTE reduction of 0.3 (0.25 Exec Admin Assist, and 0.05 Policy & Project Mgr). Leadership (207705) (42705) (163000) 537 Economic Marketing & Reduce Holiday City partners with the Downtown Business Association and the Downtown Development Strategic Public Lights Authority to provide holiday lights in downtown. Without City funding, the light display will be Relations significantly scaled back, or the other entities will need to provide additional monies. Reduction will impact the ambience of the downtown. (15,000) (15,000) TOTAL ECONOMIC HEALTH (738,714) (634,973) (26,000) (775741 ) C:\DOCUME-1\SAGONZ-1 \LOCALS-1 \Temp\2007 CMO Budget Priorities Final for Sept 26 work session 09/25/20069:24 AM Highlighted cells are "Given" Cuts 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CIAO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers Environmental Health 2007 Expenditure and Service Reductions Offer # Offer Title Reduction/Impact Cuts 237 100% Use of Clean Eliminate Bio-Diesel Due to anticipated reductions in Bio-Diesel casts, there is no longer a need for the planned Burning Bio-Diesel Subsidy $30,842 subsidy from the General Fund in 2007. (305842) (30,842) (302842) 272 Natural Resources Increase Director Increase the Director's time charged to Natural Areas to 75%. This offer reduces the General Administration - Charged to Natural Fund by 0.05 FTE. This change will reflect the Director's 2007 time allocations based on Environmental Planning Areas to 75% proposed reductions to General Fund Natural Resource projects. (See offer #286.) (5,282) (51282) (5,282) 286 Air Quality Improvement Increase Director Increase the Director's time charged to Natural Areas to 75%. This offer reduces the General Charged to Natural Fund by 0.03 FTE. This change will reflect the Director's 2007 time allocations based on Areas to 75% proposed reductions to General Fund Natural Resource projects. (See offer #272.) (21366) (23366) (2,366) 311 Climate Wise Climate Wise Reduce Climate Wise funding by $2,500. This reduction will have a significant impact on funds available for Climate Wise partners (program customers). Since funds available for partner support are limited and the program is growing, any reduction in the budget will limit services available. (2,500) (2,500) 370 Waste Reduction & Reduce .52 FTE and FTE reduction of 0.52 (.5 Environmental Planner and .02 Director. Reduce program funds by Recycling Programs $30,000. Will eliminate services to the Resource Recovery Farm and Christmas tree recycling program. Will reduce education and outreach and services to Climate Wise. Also 2% of Directors Salary shifted ($1 ,540) (689111 ) (66,571 ) (19540) TOTAL ENVIRONMENTAL HEALTH (10%101 ) (2,500) (66,571 ) (401030) C:\DOCUME-1\SAGONZ-1 \LOCALS-1 \Temp\2007 CMO Budget Priorities Final for Sept 26 work session 09/25/20069:24 AM Highlighted cells are "Given" Cuts 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CMO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers Neighborhood Quality 2007 Expenditure and Service Reductions Offer # Offer Title Reduction/Impact Cuts 91 Housing & Community Reduce Human Reduces the Human Services Program by about 25%. Funds are allocated to agencies Development Services Program serving households below 80%AMI. 25% (835750) (83,750) 230 Innovative Neighborhood Reduce Code Reduce Code Compliance funds used for abatements. Staff anticipates impact on City Code Enforcement Compliance funds Nuisance code services will be minimal, barring unforeseen circumstances such as high number of snow storms. ME (50,000) (50,000) (50,000) 361 Customer Services--One Eliminate 1 Admin FTE reduction of 1 .0 Admin Assistant ($64,788). Reclass 1 .0 FTE Admin. Assistant to Stop Shop Assistant Customer Service Rep. II ($4,855). There would be no service impact due to the reclassification. Elimination of the Admin. Assist. would result in a longer wait for customers at the counter and longer service response time, likely compounded with new regulations in early 2007. (69,643) (69,643) TOTAL NEIGHBORHOOD QUALITY (203,393) (830750) 0 1 (119,643) C:\DOCUME-1\SAGONZ-1 \LOCALS-1 \Temp\2007 CMO Budget Priorities Final for Sept 26 work session 09/25/20069:24 AM Highlighted cells are "Given" Cuts 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CIAO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers Safer Community 2007 Expenditure and Service Reductions Offer # Offer Reduction/Impact Cuts 69 Information Services - Eliminate 1 Police FTE reduction of 1 .22 (1 -Police Report Specialist, and .22 Training Officer). This reduction Basic Report Specialist & also includes the expenses related to these positions, such as training, overtime, meals, partial Training supplies, and equipment. Will make staffing the District One substation with a Police Report Officer Specialist virtually impossible. This will effect the quantity and quality of information provided by this department. (869538) (869538) 321 Investigation - Criminal Eliminate Criminal Eliminate the Criminal Impact Unit (CIU) of 4 Detectives and 1 Police Sergeant. Without the Impact Unit Impact Unit CIU, Police Services would no longer be able to investigate, educate, and suppress gang related crimes or focus investigative efforts on apprehending and arresting fugitives. (5099409) (5099409) 332 General Investigations Reduce .24 Training Reduce support costs for the Criminal Impact Unit and School Resource Officers that would Property/Major Crimes Officer and support be eliminated. These costs include equipment, tuition reimbursement, laundry, training, and costs for offer #321 supplies. FTE reduction of .24 Training Officer. Will result in lack of coordination of all hiring and #341 processes within the agency, placing a heavier burden on HR. Will reduce the amount of training provided and increase the cost as training is provided by officers using overtime. The background investigation processes will become more expensive as overtime will be paid to officers and civilians to investigate applicants. Will cause a degradation or elimination of the current recruiting effort. (1309591 ) (1309591 ) 341 School Resource Officers Eliminate 6 School FTE reduction of 6 School Resource Officers (SRO). Will reduce staffing of SRO unit to 1 Resource Officers sergeant and 4 SRO's assigned to traditional high schools. Will significantly alter current contract agreement with Poudre School District. Reduces amount received from PSD by $262,074. (2692697) (269,697) 354 Information Services - Reduce Equipment Reduces equipment replacement funds associated with eliminated FTE. (See offer #69) Equipment/Computer Replacement Replacement (3,600) (3,600) 371 Restorative Justice Eliminate .25 FTE reduction of 0.25 Restorative Justice Coordinator. Will dramatically limit number of Restorative Justice referrals that could be accommodated. Coordinator (182284) (182284) 394 Building Inspection Eliminate 1 Building FTE reduction of 1 .0 Building Inspector and reduce City Council Policy Agenda work by Inspector $10,000. (See offer 394 and 226 for total reduction of $30,000) With reduction in plan review and building permit demand should be able to maintain acceptable service levels most of the time. (897210) (8%210) 438 Patrol - Basic Eliminate Crime FTE reduction of 1 .54 (1 Crime Prevention Officer & .54 Training Officer) Combined with Prevention Officer, .5 reductions in offers #69 & #332 the full training officer has been eliminated. Support costs Training Officer are also reduced for vehicles, equipment, training, and supplies. The elimination of the Crime Prevention Officer will impact the community as the preventative talks and services provided by this position will be eliminated. (280,640) (280,640) 566 Police 800 MHz Radio Reduce radio Reduced savings for future radio and packset replacement. Currently replace in 7 to 10 replacement funds years. Will reduce ability to pay for future replacement. A portion will need to be financed with the additional cost of interest. (orginally $58,000, increased 8-14-06) (150,000) (1501000) emp Budget riori ies Final for Sept 26 work session 09/25/20069:24 AM Highlighted cells are "Given" Cuts 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CMO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers 646 PFA Service Station 10 closure Eliminate engine company 10 (2067 Vermont Drive), eliminating nine positions. Station 10 has the fewest calls in the system (654 calls annually), and fewer second-in, backup responsibilities. Closing Station 10 will increase response time into it's area by approximately two minutes per call. (8409000) (8409000) 646 PFA Service 25% staff reduction - Reduce the south truck from four to three personnel per shift (25% reduction). The reduction South Truck would decrease the speed and efficiency of the company. Truck operational procedures would have to be modified to accommodate the reduction in personnel resources. (2732000) (273,000) 646 PFA Service Fire Prevention Reduce Fire Prevention Bureau personnel by 1 .0 FTE. Since all duties of Fire Prevention Bureau FTE Bureau personnel are legally mandated or necessary for basic customer service, reduction responsibilities will need to be prioritized and "piece-meal" job duty performance with personnel from Admin., Operations, and the Bureau. (977387) (972387) 646 PFA Service Overtime, Reduce expenses for overtime ($58,541 ), conferences and training ($47,988), and tuition conferences, tuition reimbursement ($13,231 ). reimb. reductions 1 (119,760) (119,760) TOTAL SAFER COMMUNITY (2,868,116) (2,511 ,818) (206,298) (1509000) C:\DOCUME-1\SAGONZ-1 \LOCALS-1 \Temp\2007 CMO Budget Priorities Final for Sept 26 work session 09/25/20069:24 AM Highlighted cells are "Given" Cuts 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CIAO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers Cultural, Recreation and Education 2007 Expenditure and Service Reductions Offer # Offer Title Reduction/Impact Cuts 95 The YAC-Safe Place for Youth Activity Center Reduced hourly clerical staff, funded by the General Fund, providing reception and Kids registration support. Use hourly clerical support from Recreation Administration, not supported by the General Fund, to fill the void. This action will provide a seasoned staff member to help with the YAC closure and transition of processes and programming to the new NACC. Will result in probable closure of 214 N. Howes as central registration site. Result in increased lines at other registration sites, increased phone traffic, and reduced customer service. (15,000) (15,000) 101 Northside Aztlan Northside Aztlan Reduce clerical staffing at the Northside Aztlan Community Center, funded by the General Community Center Community Center Fund, and replace that staffing with existing clerical support from Recreation Administration, not funded by the General Fund. Will result in probable closure of 214 N. Howes as central registration site. Result in increased lines at other registration sites, increased phone traffic, and reduced customer service. (49,000) (49,000) 102 Recreation-at-Your-Door Recreation-at-Your- Reduce General Fund supported hourly staff for this program. Staff will focus on soliciting (RAD) Van Program Door (RAD) Van donations, sponsors, and volunteers to continue the program at the same service level. Program Minimal impact to program participants if fund-raising is successful. (197100) (193100) 106 EPIC: "Liquid and Frozen Reduce EPIC staff Reduce classified personnel by 1 .75 FTE, (0.75 FTE clerical position, currently vacant, and Assets" 1 .00 FTE facility maintenance technician). Both positions currently work evenings and weekends providing broader coverage by full-time classified staff. Hourly facility attendants will be used to provide coverage for the facility maint. tech. Maintenance, cleanliness, and front desk customer service will be lost with the use of hourly staff. (632000) (46,000) (17,000) 112 RAFT (Registration and Reduce Recreation Reduce expenses for technology upgrades and repairs ($22,000) for the Recreation Division. Financial Technology) Technology Interest income in the Recreation Fund is ahead of projections which will allow them to cover "we Keep Recreation Upgrades $10,000 of the reduction, lessening the net reduction to Recreation to $12,000. Afloat" (22,000) (22,000) 131 Essential Library Reduce Library Reduce hours of operation at the Library by 8 hours at each facility (16 hrs./week). Services Hours & Services Elimination of "non-core" services. Eliminate services affecting the fewest people such as the Bilingual Outreach Services, Business Librarian Services, and Homebound Outreach for disabled patrons. 90% of the total dollar reduction is in personal services - a reduction of 5.0 classified/unclassified FTE's. The IGA with FRCC calls for the library to be open at least 55 hours each week. The IGA allows for this deviation only due to non-appropriation of funds. Circulation and use will decline. Customer satisfaction will be significantly impacted. (3637780) (187,631 ) (1765149) 159 Museum Reduce Museum Reductions of 50% and 30% respectively in the Museum's advertising and exhibits budgets. Expenses Advertising will be reduced $5,000 and exhibits expense reduced by $4,438. Programming will also be reduced by $4,438 (43%). In addition the Museum staff proposes reducing General Fund support of the Museum by $13, 130. The reduced General Fund support will be made up by charging an admission charge to visitors at the Museum. Reducing exhibits, advertising and program may lead to reduced public participation by the public. Charging C:\DOCUME-1\SAGONZ-1 \LOCikLS-1 \Temp\2007Crv9cgMgW 1%eum, especially those who may be 09/25/2 069:24 AM economically disadvantaged. (275006) (272006) 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CMO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers 179 Senior/Adult Programs - Eliminate Eliminate the trips program for adults/seniors, including a 1 .00 FTE classified Recreation "Ageless and Awesome" Senior/Adult Trips Coordinator ($38,900). This reduction will impact older citizens who like to travel but no longer drive or choose not to drive long distances and those who enjoy short day trips. In addition, the 20% discounts on activities for adults age 60 and over will eliminated ($24K). This fee increase may deter some from participating. Finally, miscellaneous adult programming expenses will be eliminated ($15K). (77,900) (77,900) 199 Operating and Cemetery Cemeteries will reduce its seasonal workforce and delaying certain improvements. Delayed Maintaining City Owned Miscellaneous maintenance will result from this cut. Trimming, mowing and weed control will be delayed, as Memorial Parks Reductions will capital improvements which are used to increase revenue options (i.e. improved cremation garden venue). (19,516) (19,516) 328 Special Event Support 4th of July $37,000 will be eliminated from the budget for the 4th of July celebration at City Park. Fundraising would be needed in 2007 to support the reduced portion of 4th of July programming. If fundraising is not successful, City Park preparation for the event will be significantly reduced. The event would be a fireworks only event with no entertainment, no additional park preparation, and next day cleanup only. This reduction does not include Police, Fire or Transportation costs for this event. (379000) (37,000) 344 Urban Forest Eliminate 1 Forestry Eliminate a Forestry Technician position (1 .0 FTE) at a cost of $65,028. Pruning rotation for Management Technician trees on City-owned property will be extended from 9 yrs. to 11 yrs. Customer requests and complaints will increase and an increased risk of accident could occur from falling trees or limbs, tree replacement will be reduced from 50% of removed trees being replaced to 40%. The condition of the City's urban forest will decline and the City's ability to deal with the storm cleanup of down trees will be reduced. (655028) (65,028) 345 CLRS Administration Charge CLRS Staff Reduce General Fund support equal to 0.278 FTE. 0. 15 of the CLRS Director's position will to Other Funds be charged to the City's Park Planning Division ($22,208), funded by Neighborhood Parkland fees. 0. 128 of an Administrative Aide's position will be charged to the Golf Fund ($8,056). An additional $2,988 is reduced from non-personal services expenditures (33,252) (33,252) (33,252) 369 Maintenance of City Trail Maintenance Conservation Trust Fund lottery proceeds, totaling $125,000, will be used to fund trail Owned Hard Surface maintenance in lieu of using General Fund support. This adjustment will not impact the Trails current level of services provided. ME (125,000) (125,000) (1255000) 414 Neighborhood Parks Neighborhood Parks Trimming along fence lines, buildings, trees, etc. will be eliminated resulting in a less Maintenance manicured look in the parks ($10,000). Trash collection will be reduced from 6 days a week to 3 days a week, depending on the park, this will result in more loose trash in the parks and increased complaints from citizens ($30,000). Equipment replacement will be reduced by $25,000, delaying the replacement of worn out equipment and increasing repair costs to existing equipment. May increase the workload of Fleet Services and productivity will lessen due to increased down-time because of repairs. (659000) (159000) (501000) C:\DOCUME-1\SAGONZ-1 \LOCALS-1 \Temp\2007 CMO Budget Priorities Final for Sept 26 work session 09/25/20069:24 AM Highlighted cells are "Given" Cuts 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CIAO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers 415 Community Parks Community Parks Trimming along fence lines, buildings, trees, etc. will be eliminated resulting in a less Maintenance manicured look in the parks ($10,000). Gateway Park to be taken over by Natural Areas or closed permanently. Closure of Gateway would affect rafting companies use as a launch site; the Water Utility would need to assume responsibility for protecting their infrastructure; and $100,000 in GOCO funds, used to construct the park, would need to be refunded to GOCO. Savings from the closure would be $96,000, however, one-time funds, totaling $100,000, would be needed to repay GOCO. Picnic Rock maintenace should no longer be a Parks Department responsibility if Gateway is closed ($18,500 one-time dollars in 2007). Life cycle in the community park system will be reduced by $20,000 delaying improvements and replacement of aging equipment. Equipment replacement will be reduced by $25,000, delaying the replacement of worn out equipment and increasing repair costs to existing equipment. Spring Canyon Park maintenance will be reduced by one Park Technician position. Funding for this position in 2007 was to be (206,000) (709000) j (ss,000) (ss,000) used for equipment purchases and start up costs. Equipment purchases will be delayed and Park Tech. duties will be reorganized. Lights for basketball and tennis courts will not be turned on until ongoing funding can be obtained in the future. Savings associated with Spring Canyon reductions total $55,000.May increase the workload of Fleet Services and productivity will lessen due to increased down-time because of repairs. (40,000) 423 Gardens on Spring Creek Horticulture Center Reduction in non-fixed cost line items, totaling $5,000. Earned revenues will be used to offset and Associated the expenditure reductions. Community Horticulture Program (51000) (53000) 610 Lincoln Center Lincoln Center Eliminate a Facility Assistant position (1 .0 FTE) at the Lincoln Center at a cost of $46,115. Reduce hourly personnel expense and non personal service expenditures including advertising, marketing, meeting room and technical supplies, a reduction of $35,640. Reductions will limit the rental of conference rooms on Mondays, reduce promotional efforts by 35%, reduce maint. and replacement of equipment and supplies, place more or a financial burden on Lincoln Center customers. In addition, the Lincoln Center will eliminate the General Fund support of 1 .0 FTE by $20,596. Lincoln Center will pay for the reduction through an increase in Performance Hall rentals and user charges for technical services. (1029351 ) (569236) (46, 115) TOTAL CULTURAL, RECREATION, AND EDUCATIOP (1 ,294,933) (177,034) (311 ,867) (8069032) C:\DOCUME-1\SAGONZ-1 \LOCALS-1 \Temp\2007 CMO Budget Priorities Final for Sept 26 work session 09/25/20069:24 AM Highlighted cells are "Given" Cuts 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CMO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers Improve Transportation 2007 Expenditure and Service Reductions Offer # Offer Reduction/Impact Cuts 217 Harmony Transfer Center Maintenance Reduce maintenance expenditures by $9,500. Will create a minimal service impact, reductions however, aesthetic appearance may suffer, pavement cracks or low spots may appear where water collects. Deferred maintenance could lead to more costly repairs later. (91500) (9,500) 219 Regional Planning Reduced MPO Reduction eliminates the 20% contingency from the amount budgeted for the North Front Organization contribution Range Metropolitan Planning Organization. Fort Collins would not be able to meet its Contributions obligation if the MPO received unanticipated additional funding that would require any part of the 20% contingency. Other impacts could include: funded projects not proceeding, return of funds to CDOT, and a delay year-end payment to 2008. (197500) ( 197500) 340 Maintenance of City Reduce Median Reduce medians maintenance contract from an 8 mo. contract to a 7 mo. Contract, resulting Owned Medians Maintenance in a savings of $30,000. Effect is that median maint. will end one month earlier in the fall. Some plant loss may occur, weeds may develop, and grass could grow after final fall cutting until the spring. (309000) (30,000) 434 Patrol Traffic Unit - Basic Eliminate Traffic Unit FTE reduction of 4 (3 Police Officers and 1 Sergeant). Eliminates Traffic Unit whose primary assignment is to enforce the city an state traffic code. Will have a significant impact on offer #534 as the traffic ticket surcharge revenue will decline. (363,310) (363,310) 636 Core Street Maintenance Reduce Streets front Reduce contractual FTE (Admin. Clerk 1) position by 0.25. Front desk hours will be reduced desk coverage as will the ability to provide customer service to citizens, other areas, and employees in person, by telephone, or by e-mail. Add'I workload will be distributed among two administrative staff members. (109856) (10,856) Reduce Funding for CMO Team added option: Do not fully fund the Pavement Management Program in 2007 by Pavement Management eliminating $700,000 in General Fund contribution. (7007000) (700,000) 644 Traffic Operations FTE, electric, and (1 ) Reduced Electric expenses will result from replacing Walk, Don't Walk indicators from traffic control incandescent to LED's (svg. $20,000). No impact to the citizens of Fort Collins. (2) Eliminate equipment a currently vacant 0.33 FTE (Traffic Equip. Operator II) (svg. $19,921 ). No noticeable impact reductions to the public. Responsibilities will be distributed to the Signal Technicians and experienced hourly employees, and reprioritizing signal maintenance priorities. (3) Reduce Traffic Control Equipment expense by $42,000. Intersections that meet warrants and have no other funding sources will not be built. Will impact Traffic Op's. ability to respond to citizen requests for pedestrian crossings and signal upgrades. (817921 ) (42,000) (393921 ) 674 Transfort/Dial-A-Ride Dial-A-Ride Reduce Dial-A-Ride (DAR) services to areas mandated by FTA and Americans with reduction to FTA and Disabilities Act mandates. Specific impacts include: elimination of paratransit service not ADA mandates within 3/4 mile of a fixed route (would eliminate service to Foothills Gateway and PVH's Harmony Campus); elimination of service hours beyond the fixed route hours of operation; elimination of reduced fares for low-income passengers (all passenger would be charged $2.50 per one-way fare); elimination of service to non-disabled passengers; elimination of service to disabled passengers who are able to utilize fixed route service (active clients would undergo re-certification to verify capabilities). This reduction will eliminate 5.5 FTE C:\DO UME-1\SAGONZ-1 \LOC LS-1 \Temp\2007 C ($1�7@ WV.riorities Final for Sept 26 work session (600,000) (600,000) TOTAL IMPROVE TRANSPORTATION (1 ,815,087) (435,310) 0 (1 ,379,777) 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CMO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers [NOTE : Transportation Services prepared an additional add-back requesting $500,000 needed to meet the projected Dial-A-Ride expenses based on an reasing demand for service. DAR has experienced steady annual growth for the past few years. As Fort Collins ages, and more retirees move into the mmunity, and as outlying development grow, the demand for paratransit service is expected to increase substantially. C:\DOCUME-1 \SAG0NZ-1 \LOCALS-1 \Temp\2007 CMO Budget Priorities Final for Sept 26 work session 09/25/20069:24 AM Highlighted cells are "Given" Cuts 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CMO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers High Performance 2007 Expenditure and Service Reductions Offer # Offer Title Reduction/Impact Cuts 47 Non-Camera Radar/Red Reduce .55 FTE FTE reduction of .55 (.5 Deputy Court Clerk and .05 Judge). If the case load does not Light Cases increase there will be no negative impact at this time. (29,600) (29,600) (292600) 84 Camera Radar/Red Light Reduce . 10 Judge FTE reduction of .10 Judge. No negative impact at this time. The reduced FTE more Cases accurately represents the amount of judicial time currently needed. This is funded by camera radar funds, $14,250 of the restricted revenue would be available for specific camera radar uses. 0 0 0 85 Liquor Licensing Reduce .05 Judge FTE reduction of .05 Judge. No negative impact at this time. The reduced FTE more Authority accurately represents the amount of judicial time currently needed. (71125) (71125) (7,125) 181 City Clerk Administration Eliminate 1 .0 Admin FTE reduction of 1 .0 - Admin Clerk I. Customers will need to ring bell for service, need to hire Clerk I temporary staff during election, more overtime of existing staff during election. Passport application service may be discontinued. Eliminate annual appreciation event for board and commission members. (507189) (502189) 193 Elections Reduce November Reduce funding for November special elections. Allocation of the total cost is determined by special election formula. If the cost is higher more funds would need to be found. funding (71125) (79125) 211 Custodial Services Reduced Custodial Eliminate funding of $4,313 representing a portion of a Buyer (0.05 FTE) position funded by Services Op. Svcs. The portion will be picked up Purchasing, using one-time funds. Reduce "Custodial Services" by $78,290. Facilities impacted will include Senior Center, EPIC, Lee Martinez Farm, 215 Mason, 281 N. College, and the Library. In addition, exterior window cleaning will be reduced to once a year. Custodial svcs. at the YAC (1 /2 yr), 321 Maple, Downtown Restrooms, 110-114 Howes, Police Annex and 214 Howes will be eliminated. Reduce office cleaning and trash removal in General Fund bldgs. to once every other week (except for City Hall or the offices of the Mayor, City Manager, and Council). (78,290) (78,290) 214 Building Systems and Reduced Utilities and Eliminate funding of $4,313 representing a portion of a Buyer (0.05 FTE) position funded by Energy Management Repair and Op. Svcs. This portion will be picked up Purchasing, using one-time funds. Reduce utility Maintenance of (natural gas, water, and electricity) maintenance and repair costs through: 1 ) closing of the General Fund Downtown Restrooms, 321 Maple, 110-114 N. Howes, 300 N. Howes (Cramers), 304 1 /2 N. Facilities Howes and 214 N. Howes (Rec. Adm.); 2) partial closures (1/2 yr.) of the Youth Activity Ctr., and 228 LaPorte Ave (Police Annex); and 3) leasing of 212 LaPorte (Abraxis Glass). Additionally, Ops. Svcs. will no longer fund maintenance of Fire Stations 1 -4 ($75,600). According to the IGA, the City contributes through an RAF, dollars for PFA to use for O&M. Finally, a reduction of non-specific maintenance and repair, totaling $85,563, will reduce funding in terms of the Current Replacement Value (CRV) of General Fund bldgs. for repair and maintenance. (2747310) (1122834) $ (161 ,476) -161476 238 Accounts Payable Delay PC Delay rplmt. of PC's, reduce exp. for maintenance contracts and telephone. May reduce the Processing replacement & level of customer service. reduce other (15,500) (15,500) 09/25/20069:24 AM Highlighted cells are "Given" Cuts 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CMO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers 355 Payroll Processing Delay PC Delay rplmt. of PC's, reduce maint. contract for payroll module, and records and forms replacement & (convert to electronic timesheets. Minor impact to customer service. reduce other expenses (527000) (52,000) 359 Procurement Process Reduce various Reduce advertising, maintenance and phone usage, and move copier rental to Risk expenses Management. Will result in some delay in response to vendors and departments. (102000) (10,000) 442 Sales & Use Tax Reduce travel audits, Reduce travel for sales tax audits by 42%, delay replmt of PC's. Reduced travel takes delay PC flexibility away from audit scheduling. Minor impact in delaying replmt. of PC's. replacement (162200) (16,200) 445 Treasury Services Reduce . 15 Financial Reduce Financial Analyst FTE by 0.15, and drop Bloomberg System lease. No impact from Analyst dropping Bloomberg equipment lease. Delay in processing cash flows will result from the FTE reduction. (127207) (122207) 458 Cable/Media Reduce Equipment Reduce Equipment Replacement which includes equipment for City Channel 14 and remote Replacement cameras in Council Chambers, DVD duplication equipment, studio sets, editing systems, etc. Will delay equipment replacement cycle with the risk of not meeting the 2009 deadline for conversion to digital format. (105000) (10,000) 460 Enterprise Resource Reduce ERP Reduce equipment replacement ($1 o0K), other commodities ($30K), and other contractual Planning (ERP) Base Equipment ($1 ,686). The ERP program has adequate funds for upcoming hardware replacement in Services Replacement 2007. MIS is analyzing options for system upgrades and replacement and will make in recommendations and funding requests in 2008/2009 if needed. (131 ,686) (31 ,686) (100,000) (1009000) 470 Department of Reduce FTE .11 - FTE reduction of 0. 11 ($5,630) - transfer DOT responsibilities to Risk Mgmt. Other HR duties Transportation (DOT) transfer DOT to Risk associated with this FTE reduction will have to be absorbed by existing personnel resulting in Compliance Program Mgmt reduced services and added delays. (51630) (51630) 471 City Council Core Reduce conference Reduce conferences and other contractual expenses. Council conference funds were Services and other contractual $28,000 and are now $18,000. Will limit City Council networking, educational opportunities, and the ability of the City to lobby legislators on issues of concern to Fort Collins. (12,000) (12,000) 477 CMO-City Council Policy Reduce .75 FTE and FTE reduction of 0.75 (0.25 Exec Admin Assist, 0.4 Policy & Project Mgr, and 0.1 Legislative Development & other expenses Affairs Coordinator). Reduce other contractual expenses $5,000. Reduces CMO ability to Management fund unexpected expenses during the year. (635270) (462144) (17, 126) 480 CMO - Organizational Reduce .75 FTE and FTE reduction of 0.7 (0.5 Exec Admin Assist, 0. 1 Policy & Project Mgr, and 0.1 Legislative Leadership & other expenses Affairs Coordinator). Reduce other expenses $7,000. Reduces CMO ability to fund Implementation unexpected expenses during the year. (49,153) (17,901 ) (31 ,252) 482 Basic Enterprise GIS Delay equipment Eliminate data conversion costs ($51K) and reduce equipment replacement ($30K). The Software & Support existing system will not be upgraded or replaced until well after the normal replacement cycle. (359000) (35,000) 483 Application Development Reduce .5 Systems Reduction of 0.5 FTE (Systems Analyst). This position provides database support, develops & Support Analyst new products to assist departments, and generates Crystal reports. This position is vital to the continued function of the City. (497052) (493052) 484 Professional Enterprise Reduce GIS Equipment replacement by $1 OK. Impact, unable to upgrade the system after normal life GIS Hardware/Software Equipment cycle. (107000) (102000) 5(6b/25/2 rVpAlqutcome Reduce various Reduce contractual expenses, primarily outside reproduction. Able to print about 75 budgets Support/Budget Office ex enses at similar qua to 2006-2007 Budget. Highlighted cells are "Given" Cuts (41250) (4,250) 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CMO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers 510 Rebate Programs Reduce contractual Reduce contractual assistance in processing rebates ($44.5K), advertising ($2K), and assistance & program dollars for sales tax rebates ($40K). Reduction in contractual help will delay program funds processing rebates. Minor impact expected from reducing the program amount for sales tax rebates. (86,550) (43,275) (43,275) 529 City Attorney's Office Reduction in Cut $18,203 in conference and training, outside legal services, computer replacement, etc. Personal Services Would be manageable on a one-time basis. Reduce 2007 salary increases for deputy and and Non-personal assistant attorneys by $43,683. Would leave the attorneys at a below-average wage. Could services. result in the loss of experienced attorneys, with significant reduction in level of service. Cut $44,086 by eliminating .5 FTE assistant attorney. Will reduce level of service. (105,972) (105,972) 538 Bridging the Community Eliminate City News Eliminate City News and reduce other contractual expenses for part-time hourly support. City & City through & reduce other News is used by nearly every city department to share information with residents. Other Communication contractual contractual will effect the all of the members of the CPIO and reduce efficiency. (307800) (302800) 539 Intergovernmental Eliminate FTE reduction of 0.8 Legislative Affairs Coordinator and all associated costs. This eliminates Relations Intergovernmental the Intergovernmental Affairs program. Affairs program (789135) (78, 135) 558 Network File & Printer Eliminate File/Print Eliminate file/print servers equipment replacement funding ($12,350) and reduce JDE support Server Operations Servers Equipment ($10K). Will require extending the life the existing systems which increases the risk of Replacement Funds computer failure, and subsequently reduces the City's ability to perform day to day functions. (222350) (22,350) 560 Accounting and Reduce contractual Reduce contractual assistance, contractual labor ($8,500) and telephone exp. ($1 ,900), Internal/External assistance & during the year-end audit. May cause delay in completion of the Comprehensive Annual Financial Reporting telephones Financial Report (CAFR). Services (10,400) (10,400) 582 High Performing Hiring Trade higher paying FTE reduction of 0.50 (0.25 Asst. HR Dir, and 0.25 Sr. HR Rep.). With reductions here and in positions for lower offers 583 and 584, an HR Staffing Rep. position will be created. Impact: offloads some paying position admin. tasks to a more appropriate clerical level; reduces the HR Business Partners (formerly Sr. HR Reps) interaction with departments on recruitments. 26,570 26,570 583 Performance Excellence Reduce .5 FTE FTE reduction of 0.50 (0.25 Asst. HR Dir, and 0.25 Sr. HR Rep.). Eliminating these positions will negatively impact HR's ability to implement of the pay for performance system, create add'I workload for the HR Dir., and reduce the resources (HR Business Partners/Reps) available for projects. (447340) (44,340) 584 Human Relations Reduce 1 .0 FTE FTE reduction of 1 .0 (0.5 Asst. HR Dir, and 0.5 Sr. HR Rep.). Eliminating these positions will: Business Partners create add'I workload for the HR Dir.; negatively impact the ability of HR to focus on leading- edge, innovative HR strategies, and lessen the coverage by HR Business Partners. (885670) (73,400) (15,270) 626 Finance Administration Reduce 1 FTE & Reduction of 1 FTE ($68,049) due to a duplication in the '07 budget. Delay ordering supplies and Financial Advisory telephone and reduce telephone expense by eliminating private lines will result in minimal service Role for the City impacts. (77, 149) (77, 149) (775149) TOTAL HIGH PERFORMANCE (1 ,440,383) (7179728) (1791030) (5439625) C:\DOCUME-1\SAGONZ-1 \LOCALS-1 \Temp\2007 CMO Budget Priorities Final for Sept 26 work session 09/25/20069:24AM HighligPf ML i sON JY1vJe*08M2s $ (8,469,727) (Includes $700,000 PMP reduction) 2007 Budget Reductions Draft, CMO Team --as of August 15 , 2006 CIAO Team Priorities 2 1 Moderate High Priority to Priority to 3 Lower "Given" COPY Retain Retain Priority to Retain Reductions Reduction Offers Totals by Priority Level : $ (4563113) $ (7899766) $ (391169848) C:\DOCUME-1 \SAG0NZ-1 \LOCALS-1 \Temp\2007 CM Budget Priorities Final for Sept 26 work session 09/25/20069:24 AM Highlighted cells are "Given" Cuts - - Section 3 - - New Fee Revenue Recommendations 2007 General Fund Budget Work Session Revised September 26 , 2006 City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 3 - 1 Executive Summary : New Revenue Recommendation The City Manager' s Recommended 2007 Budget includes the adoption of two new revenue sources—a Transportation Maintenance Fee and a Park Maintenance Fee . In addition, new property and sales tax revenues from the Southwest Annexation Phase One will need to be allocated in the 2007 Exception Budget Process . Total Recommended New Revenue Sources Southwest Total new Annexation, 12% revenue under the recommendation will be $3 . 6 Million, with $3 .2 Residential, 47% Million of the new revenue Non-Residential, coming from the 41 % implementation of two new fees . The adoption of the two fees together result in the new FEE revenue being received 54% from Residential properties and 46% from Non-residential properties . All New Fee Revenue By Source Non-residential, $ 1 ,4571734.40 , 46% Residential, $ 15699,839.60 , 54% Park Maintenance Fee : Staff recommends that Council implement a Community Park Maintenance Fee, effective January 1 , 2007 . The fee would provide a permanent partial funding source to pay for maintenance of the developed parks, as well as new parks scheduled to be built over the City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 3 -3 next 20 years . The fee could reduce the current and (with appropriate fee increases) the future General Fund financial burden associated with maintenance of City parks . The $ 1 .44 per month fee would be assessed on City utility bills, and would apply to residential dwelling units only. Non-residential properties would be exempt from the fee . Transportation Maintenance Fee : Staff is recommending the establishment of a Transportation Maintenance Fee (TMF) to be charged on City utility bills for maintaining City streets, bike lanes, medians (excluding landscaping) , and city maintained sidewalks . Maintenance includes such work as keeping pavement surfaces in good condition, performing seal coats as needed, repairing potholes and cracks, repaving and other work to keep our transportation system safe . The fee would be Transportation Maintenance Fee Revenue Source applied to all properties within the City limits, including - residential properties and non-residential Residential properties. The fee 36% would be a flat dollar amount for each residential dwelling Non_ unit. Non-residential Residential properties would be 64% assessed the fee based on various categories of use, and the trip generation characteristics of those categories. Staff s recommendation is to assess a fee of $ 1 .47 per dwelling unit, per month, and fees for non-residential uses based on the following schedule : Recommended Transportation Maintenance Fee September 26 , 2006 Institutional $22 . 88 Per Acre Industrial $ 18 .22 Per Acre High Traffic Retail $ 174 . 13 Per Acre Retail $71 . 89 Per Acre Commercial $22 . 88 Per Acre Residential $ 1 .47 Per Unit The recommended fee will generate $2 ,277,710. This revenue estimate assumes the exemption of all government properties and public school properties . City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 3 -4 Option 1 : Community Park Maintenance Fee Recommended Community Park Fee Applies to : All residential properties Total Current Cost to $2 . 6 Million Annually General Fund Tax/Fee Amount $ 1 .44 per household per month Annual Administrative $69 ,000 Costs Plus $20-25 K start-up costs Approval City Council approval required Annual Cost to Average $ 17 .28/ year Household Annual Cost to Average Not Applicable Business Staff recommends that Council implement a Community Park Maintenance Fee, effective January 1 , 2007 . The fee would provide a permanent partial funding source to pay for maintenance of the developed parks, as well as new parks scheduled to be built over the next 20 years . The fee could reduce the current and (with appropriate fee increases) the future General Fund financial burden associated with maintenance of City parks . The $ 1 .44 per month fee would be assessed on City utility bills, and would apply to residential dwelling units only. Non-residential properties would be exempt from the fee . Staff recommends that a rebate program be established for low-income residents . The program can be modeled after other City rebate programs . Community Recommended Fee Park Maintenance Fee 2007 General Fund Program Cost: $2,731 , 890 Recommended Fee Total $ 1 ,000,000 Administrative Cost <$ 699383 > Unrecoverable costs to General Fund in 2007 : Rebate Program ( 1 ,200 refunds, assuming 100% fee rebate) <$209755> Unrecoverable (Delinquencies) 3 % of accounts <$3000> Total Fee Revenue-- Savings to the General Fund in 2007 $ 8799864 City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 3 - 5 How does the Fee Work? The City currently charges an impact fee on new residential dwelling units to fund construction of new parks . This means the City has funding to build new parks but funding to maintain them comes out of the General Fund. This recommendation will create a flat fee charged to all residential dwelling units for maintenance of City community parks. The fee would provide a permanent funding source to pay for a portion of maintenance of the developed parks, as well as new parks scheduled to be built over the next 20 years . Who pays? The fee is calculated using the number of active residential electric accounts as of December 31 , 2005 and estimated residential dwelling units within the City without separate electric meters . Residential dwelling units are defined in the City Code (Sec . 7 . 5 - 17). Denver —Boulder CPI inflation rates will be used to calculate the annual fee increases. An administrative fee has been included to cover the cost to the Utility Services for administration of the fee. Annual administration would total approximately $69,000 per year, plus one-time expenses. This fee is an estimate by the Utility Services and may need to be adjusted in the future . The initial monthly fee per household for maintenance of community parks would be $ 1 .44 or $ 17 .28 annually per dwelling unit, providing $879, 864 in 2007 . Council may also wish to consider implementation of a rebate program for low income households, based on income levels already established by the current sales tax rebate program. The General Fund would need to subsidize the rebate program and the amount of the rebate needs to be determined. The estimated cost of the rebate program (based on rebating 100% of the fee to approximately 1 ,200 dwelling units) is $20,755 . History of Revenue Source in Fort Collins This fee has not previously been used in Fort Collins . Pros : Cons : • Provides a stable and predictable funding • May be perceived as a tax increase source for parks maintenance needs • Frees up funds to balance the 2007 General • Increases utility bills Fund • Doesn't require voter approval so could be • A partial fee for both community and neighborhood implemented in timely manner for 2007 parks does not fully resolve the problem of increased Budget year. General Fund expense to maintain new community and neighborhood parks • Option available to partially allocate costs to residential properties while continuing to support the balance of the program through the General Fund City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 3 - 6 • Parks Maintenance costs would be allocated to residential properties only, not to businesses. • Relatively easy to implement via existing utility bills Implementation Issues : To implement the recommended Park Maintenance Fee (PMF) various issues will need to be resolved before implementation on January 1 , 2007 . 1 . The utility billing system will need to be modified to add this fee to electric utility bills . 2 . For billing purposes, an analysis will need to be done to accurately capture dwelling units within the City' s electric utility boundaries that do not currently have separate electric meters. 3 . The type and amount of community outreach needs to be determined. PARK CONSTRUCTION SCHEDULE THRU 2022 Parks Classification Year(1) Acres Provincetown Park Neighborhood 2007 6.5 Spring Canyon Community Park Community 2008 88 Registry Ridge Neighborhood 2009 5 Richards Lake Neighborhood 2010 6 Trailhead Neighborhood 2010 4 Staley Neighborhood 2011 10 Community-Southeast Community 2012 53 .4 Maple Hill Neighborhood 2013 7 Fossil Lake Neighborhood 2014 7 Iron Horse Neighborhood 2014 6.5 Elm. School Neighborhood 2015 7 East Community Park Community 2016 50 Lind Neighborhood 2017 4 SideHill Neighborhood 2018 10 Eastrid e Neighborhood 2019 7 Community-North Community 2020 98 Lake Canal Neighborhood 2022 7 (1) The construction schedule dates are subject to change based on collection of im act ees. City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 3 -7 Option 2 : Transportation Maintenance Fee Recommended Transportation Maintenance Fee Applies to . All residential and commercial properties, based on trip generation data Total Current Cost to $3 . 56 Million Annually General Fund Tax/Fee Amount $1 .47 per month, per residential unit Non-residential fee by category (see table below Annual Administrative Costs $ 1001000 Plus $30,000 in one-time, start-up costs Recommended Exemptions . All Governments $ 1089538 Public Schools $ 1831752 Approval City Council approval required Annual Cost to Average $ 17 . 64/ year Household Annual Cost to Average See Table Below Business Staff is recommending the establishment of a Transportation Maintenance Fee (TMF) to be charged on City utility bills for maintaining City streets, bike lanes, medians (excluding landscaping) , and city maintained sidewalks. Maintenance includes such work as keeping pavement surfaces in good condition, performing seal coats as needed, repairing potholes and cracks, repaving and other work to keep our transportation system safe . The fee would be Transportation Maintenance Fee Revenue Source applied to all properties within the City limits, including - residential properties and non-residential Residential 36% properties . The fee would be a flat dollar amount for each residential dwelling Non- unit. Non-residential Residential properties would be 64% assessed the fee based on various categories of use, and the trip generation characteristics of those categories . City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 3 - 8 Staff s recommendation is to assess a fee of $ 1 .47 per dwelling unit, per month, and fees for non-residential uses based on the following schedule : Recommended Transportation Maintenance Fee September 26, 2006 Institutional $22 . 88 Per Acre Industrial $ 18 .22 Per Acre High Traffic Retail $ 174 . 13 Per Acre Retail $71 . 89 Per Acre Commercial $22 . 88 Per Acre Residential $ 1 .47 Per Unit The recommended fee will generate $2,277 ,710 in 2007 . This revenue estimate assumes the exemption of all government properties and public school properties. Exemptions Staff recommends that the TMF exempt all government and public school properties . Staff believes that, though both land uses generate a significant number of trips per day, charging a fee to these entities would only serve to shift public money from one level of government to another. No new net increase in funds available for community services would be achieved. This public purpose is a necessary component of an exception provided for any category of uses . Staff has also reviewed the option of providing exemptions for other types of land uses . Categories of businesses could be exempt from the TMF if the contribution that would have been paid by those businesses is provided by other general revenues, and the City could identify a compelling public purpose for such an exemption. The total cost of the program must be allocated based on trip generation data, and costs allocated accordingly. If a discount is provided to one group of fee payers, their contribution may not be allocated to other fee payers . Staff does not recommend providing exemptions from the fee for any categories of businesses such as manufacturers . The City does not currently have a clearly defined list of businesses which it would choose to exempt for economic development purposes . No specific list of businesses has been identified by the City as "primary employers" or businesses for which the City has a compelling public purpose for providing financial incentives. Staff also does not recommend providing an exemption for churches or church property. Given the relatively low fee for institutional uses, staff does not believe that the fees will prove an undue burden on these properties . Staff has also not identified a compelling public purpose for making such an exemption. City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 3 -9 How does the Fee Work? The recommended Transportation Maintenance Fee (TMF) would be a charge on City utility bills for maintaining City streets, bike lanes, medians (excluding landscaping), and city maintained sidewalks . Maintenance includes such work as keeping pavement surfaces in good condition, performing seal coats as needed, repairing potholes and cracks, repaving and other work to keep our transportation system safe . This work is done to maintain the community' s investment in transportation infrastructure. The revenue from the fee could not be used for anything except street maintenance . Other city resources provide the majority of funds for this program. Other funding sources include revenue from the Street Maintenance quarter-cent sales tax approved by voters in 2005 , and General Fund on-going funding. Each residential unit would be charged a flat dollar amount ($ 1 .47 per month) for the fee. Commercial, industrial and institutional properties are assessed a fee based on trip generation data—land uses which generate more trips are charged a higher fee than those which generate fewer trips on the transportation system. Trip generation data then drives the cost per acre data (see below for calculation detail) . This relationship between the fee and the amount that a user utilizes the service is a key aspect of developing the fee . This fee is calculated based on the assumptions that the City of Loveland used in developing its Street Maintenance Fee. Who pays? The basis of this fee is to charge users of the City ' s transportation system for a portion of its maintenance. By charging a fee for the cost of maintenance, a portion of the system would be funded by the parties most frequently using the streets and most directly benefiting from its maintenance . The fee would be based on the actual cost of maintaining the system, including City streets, bike lanes, medians (excluding landscaping), and city maintained sidewalks . The fee would be allocated to different users based on the average number of trips each type of user generates in a day. This results in a fee structure in which users pay in rough proportion to the extent they use the system. For example, users who add 10 trips per day to the transportation system pay a fee much lower than those user types (i .e. high traffic businesses) that average 300 trips per day. This trip generation theory is similar to the method used to calculate street oversizing fees, and has also been recognized by courts as a fair and legally appropriate way of apportioning costs. Proposed Fee Structure : By using the same fee methodology as was adopted by the City of Loveland, the TMF in Fort Collins would equal $ 1 .47 per residential unit and would generate $2 . 77 million per year for Transportation Maintenance. Fees for each use category would be as follows : City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 3 - 10 Transportation Maintenance Fee Schedule Institutional $22 . 88 Per Acre Industrial $ 18 .22 Per Acre High Traffic Retail $ 174 . 13 Per Acre Retail $71 . 89 Per Acre Commercial $22 . 88 Per Acre Residential $ 1 .47 Per Unit Proposed Transportation Maintenance Fee Parcel Use Category Definitions Residential: Any single family, two family, or multi-family dwelling premises. Includes single family detached housing units, townhouses/patio homes and condominium units, mobile home trailers and multifamily units, including apartments and duplexes. Commercial: Any premises not devoted to Residential, Retail, High-Traffic Retail, Industrial or Institutional purposes. High-Traffic Retail: Any retail establishment which has automobile volumes greater than 1 ,000 trips per day/per acre. These retail purposes often have gas pumps or drive-through windows (but are not a necessary criteria). Retail: (as opposed to High-Traffic Retail) Any establishment engaged in the sale or rental of goods or services related to the sale or rental of goods to the public. Industrial: Any business devoted primarily to manufacturing, processing or assembly or storage of tangible personal property, research facilities, experimental or testing laboratories, warehouses, distribution or wholesale uses, utility service facilities, aircraft hangars and repair facilities for aircraft, and caretaker' s quarters and other accessory buildings reasonably required for maintenance or security of the uses set out in this section. (City of Loveland definition) Includes all manufacturing, construction contracting, transportation, utilities, wholesaling, warehousing and mineral extraction uses. Institutional: Any unit devoted primarily to schools, hospitals, churches, libraries, and similar public and quasi-public uses. Includes churches, cemeteries, hospitals, and other charitable, civic or religious uses. Trip generation data serves as the basis for developing the proposed fee structure . Truck trips and other vehicle trips are estimated for each land use based on generally accepted trip generation data provided by Institute of Transportation Engineers (ITE) Manuals . The general formula for allocating costs by traffic data includes the following data: City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 3 - 11 For Each category : Average Daily Trips D.U. Total Daily 365 Total Per D .U. or x or Acres = Trips x days = Annual Acre by Category Trips Target Annual Trips per Cost Per Total Annual Annual Revenue — Year = Trip x Trips per D .U. = Fee or Acre D. U. = Dwelling Unit Acres = Parcel acreage for each non-residential utility billing customer This method of fee calculation closely ties the number of trips generated by a type of business with the cost of maintaining roads . Imbedded in this calculation is the assumption that some types of businesses generate greater volumes of truck traffic (which cause more significant road damage) and that some businesses generate greater volumes of other vehicle traffic such as passenger vehicle passing through fast-food restaurants . High volumes or high truck traffic lead to greater costs per acre of development thus resulting in higher fees in some categories such as "High Traffic Retail" and "Industrial. " In addition to allocating costs to non-residential uses, the proposed fee structure acknowledges that a share of the fees should be allocated to businesses which attract traffic from residents outside the City. These trips cannot be allocated to Fort Collins residential uses, and should be attributed to the businesses or institutions which generate the traffic . The effect of this assumption is to allocate the cost of maintenance 36% to residential and 64% to non-residential uses. The Pavement Management Program is funded through a variety of sources . In 2007 , if the TMF provides $2 . 3 Million, 61 % of the program would be funded through the Building on Basics Pavement Management Sales Tax (one-quarter cent), 24% through TMF revenue, and 15% by other sources such as the General Fund and Fort Collins ' share of State and County transportation taxes . Though the TMF portion of the program is allocated 64% to business uses, the funding of the entire program is more heavily weighted to the individual residential fee payer. Some examples of the impact of the proposed fee on various non-residential uses are provided below to illustrate the relative impact of the fees on various businesses in Fort Collins . City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 3 - 12 Sample Transportation Maintenance Fees Use Mont Feehly YFeely Lot Size in Acres Industrial Manufacturing $98 . 41 $ L 180 . 96 5 . 4 Manufacturing $ 15275 , 73 $ 15 , 308 . 77 70 Retail Drug Store $ 150 . 96 $ 19811 . 56 2 . 1 Old Town Restaurant $ 14. 38 $ 172 . 53 0 . 2 Old Town Shop $ 8 . 63 $ 103 , 52 0 . 12 Large Retail $711 , 68 $ 81540 ,22 9 . 9 Institutional Church (large lot) $ 114. 38 $ 11372 . 51 5 Church (small lot) $ 11 .44 $ 137 ,25 0 . 5 Elementary School $ 123 . 53 $ 11482 , 31 5 . 4 High School $274 . 50 $39294 . 03 12 High Traffic Retail Fast Food $313 ,43 $31761 , 16 L8 Bank $208 , 95 $29507 ,44 1 .2 Convenience Store $ 139 , 30 $ 11671 , 63 0 . 8 Grocery Store $ 1 ,027 . 35 $ 129328 .24 5 . 9 Commercial Law Office $5 . 72 $68 . 63 0 . 25 Motel $32 . 03 $384 , 30 1 . 4 Daycare Center $ 17 . 61 $211 . 37 0 . 77 History of Revenue Source in Fort Collins The Transportation Maintenance or Transportation Utility Fee has a long history in Fort Collins, dating back to its adoption by City Council in 1988 , and a subsequent review of the fee by the Colorado Supreme Court. A court challenge regarding the ability of the City to levy such a fee was made and the case was argued at the Colorado State Supreme Court. In the case, the court found that the fee was not a property tax, excise tax or special assessment, but rather a special service fee. Though the fee was upheld, the fee was discontinued. More recently, other cities have used a Special Services Fee and those fees have been found to be appropriate despite challenges regarding the application of the TABOR amendment requirements on the imposition of a fee. A recent Court of Appeals decision reaffirms a home rule city ' s ability to impose a special service fee and to do so without a TABOR vote as long as : ( 1 ) the fee is imposed on persons or property to defray the costs City of Fort Collins-Financial Stability Work Session, September 26, 2006Page 3 - 13 of a particular government service, and not the general expenses of government; (2) the amount generated by the fee must be reasonably related to the overall cost of the service; (3 ) the methodology used to determine the amount paid by individual fee payers has a rational basis ; and (4) revenues generated by the fee are segregated and used only for the purpose for which the fee was imposed. An additional concern has been raised that the City is transferring the "tax" liability for services to fee payers . Adopting the TMF would, in fact, shift part of the cost of street maintenance from the general citizenry to those who use the streets most often and most heavily. Several discussions were held during the budget process suggesting that citizens are already burdened with too many fees that support general government services . If Council adopts the TMF, it would be the City' s only special service fee that is imposed on a City-wide basis for a general government service. The other fees are either impact fees paid by developers to offset the impacts of their developments, or user fees paid by individuals who use City facilities (such as EPIC or the Lincoln Center) , or who use services such as those involved in processing permit and license applications . Pros : Cons : • Provides a stable and predictable funding • May be perceived as a tax increase source for a basic City service • Shift part of the cost of street maintenance • Costs are distributed more heavily to certain from the general citizenry to those who use businesses, especially those which generate the streets most often and most heavily. high traffic volumes • Ensures that both the portion of the program • Voters approved a 1/4 cent sales and use tax funded by the Street Maintenance sales tax extension for pavement management in April and the general fund portion of the program 2005 . This may appear to be "double-dipping" have adequate funding levels • Doesn't require voter approval so could be • Some businesses may perceive that they pay a implemented in timely manner for 2007 disproportionate share of the cost Budget year. • Relatively easy to implement via existing • Increases utility bills utility bills TMF Implementation : Implementation Costs : Regardless of the amount of the TMF assessed, the on-going cost of collecting the fee is estimated at $ 130,000 per year. The cost of billing for the fee is a flat rate of $0 . 10 per utility bill, plus the cost of a part-time clerical staff member in the Engineering Department to administer the fee. Implementation Issues : To implement a Transportation Maintenance Fee by January 1 , 2007, several issues must be resolved and further data must be collected to finalize the fee calculations . Remaining issues to be addressed include : • Final Database development: For the purposes of Council ' s discussions, staff has created a database of non-residential properties . A number of property owners will need to be contacted individually and properties reviewed to ensure City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 3 - 14 that they are placed in the appropriate category. This work will finalize the fee calculations and is underway now. • Community outreach and information sharing : Staff has not yet worked with potentially affected interests to develop awareness of either the problem being addressed by the proposed fee or the impact of the proposal on individuals and businesses . Staff has begun planning these efforts which will be conducted in November and December. • Implementation costs : Finalize an agreement with Utility Services for the cost of billing the fee on existing utility bills . Currently, a rate of $ . 10 per utility bill, per month is being discussed. If this billing cost is finalized, the total billing cost will be approximately $ 130,000 per year including the cost of staff to maintain the database and address customer service questions . This is significantly less than the original projection of $ 300,000 per year. • Collection of delinquencies : The City must determine how delinquencies will be handled. • Exceptions : Data must be reviewed to determine if there should be some adjustments to fees for special circumstances . Examples that may require review may include examining large parcels with small portions developed (i . e. less trip generation because a significant portion of the parcel is not yet developed), and multi-use sites (i . e. mixed housing and commercial properties . Transportation Board Recommendation : On Wednesday, September 20, the Transportation Board reviewed the City Manager' s recommended budget, including the proposal to create a Transportation Maintenance Fee and re-configure the Transfort Fixed Route/Dial-a-Ride programs . The Board ' s recommendation is attached below. City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 3 - 15 Pavement Management Funding General Fund One *General New BCC Sales Pavement * Transportation Under Funded Year Fund On - Fees 410 On - Maintenance Total Time Tax Management Going Fee Amount (Tabor) Going Sales Tax 2004 $2 , 2897649 . 00 $ 1 ,404 , 601 . 00 $3 , 7055891 . 00 $ 128 , 750 . 00 $75528 , 891 . 00 ($3005000 . 00 ) 2005 $2 , 1527949 . 00 $ 15604 , 601 . 00 $3 , 8545127 . 00 $ 132 , 613 . 00 $75744 , 290 . 00 ($3005000 . 00 ) 2006 $8003000 . 00 $7775175 . 00 $400 , 000 . 00 $555915935 . 00 $ 130 , 000 . 00 $5083288 . 00 $852073398 . 00 ($7223586 . 00 ) 2007 $0 . 00 $7795549 . 00 $558455445 . 00 $ 130 , 000 . 00 $ 4525967 . 00 $2 , 300 , 000 . 00 $95507 , 961 . 00 $0 . 00 Includes Transp Admin & Engineering Overhead City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 3 - 16 2006 =2007 Pavement Management Program 1 -May-06 BFO BFO Increase % Inc. Funding Source 2006 2007 Decrease Dec. Transportation Fund - ongoing 1 /4 cent sales & use tax 535917935 57845 ,445 2533510 4 . 5% Other revenue (410 Fund ) 6381288 5827967 (55 ) 321 ) -8 . 7 % TMF - Proposed 0 273007000 2 , 3003000 100 . 0% Transportation Fund - one-time 114 Cent BCC - Streets & Transportation Package - Savings 4007000 0 (4003000 ) 100 . 0 % General Fund - ongoing 777 , 175 779 , 549 21374 0 . 3% General Fund - one-time TABOR - 2004 overage 8007000 0 (8005000 ) 100 . 0 % Total Funding Sources 872071398 915077961 17300 , 563 15 . 8 % 2006 PMP Shortfall 7227586 0 (722 ) 586) 100 . 0% Desired Funding Level 839291984 97507 , 961 5773977 6 . 5% BFO BFO Increase % Inc. Expenditures by Funding Source 2006 2007 Decrease Dec. Transportation Fund - ongoing Transportation Administration 241 , 778 262 ,486 20 , 708 8 . 6% PMP - Program Costs 51988 , 445 61165 , 926 177 ,481 3 . 0% PMP - Program Costs (TMF ) 0 273007000 27300 , 000 100 . 0% Transportation Fund - one-time PMP - Program Costs 172001000 0 ( 1 , 200 , 000 ) 100 . 0 % General Fund - ongoing PMP - Program Costs 6601285 6557549 (4 ) 736 ) -0 . 7% Administration Support Service ( Engr. ) 913521 977594 6 , 073 6 . 6% Technology & Equipment ( Engr. ) 253369 267406 17037 4 . 1 % Total Exp, By Funding Source 852077398 91507 , 961 11300 , 563 15 . 8 % 2006 PMP Shortfall 7227586 0 (7225586) 100 . 0% Desired Exp, By Funding Level 879291984 97507 , 961 577 , 977 6 . 5% City of Fort Collins—Financial Stability Work Session, September 26, 2006Page 3- 17 -- Section 4 -- Dial-A-Ride Program Changes 2007 General Fund Budget Work Session September 26 , 2006 City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 4- 1 DIAL-A-RIDE SERVICE For communities, like Fort Collins, that provide fixed route bus service, the Americans with Disabilities Act (ADA) of 1990 (federal) requires para-transit service that is complementary to the fixed route bus service. The service must be provided for people who have a disability that prevents them from using the fixed route (bus) service . Since 1997, the City has provided para-transit service that exceeds the ADA minimum requirements . Transfort has provided door-to-door specialized transportation for all senior citizens (ages 60+) and people with disabilities regardless of their ability to use a fixed route bus. We have also provided service in a larger service area and for more service hours than required by the federal mandate . ADA Requirement Dial-A-Ride Service Eligibility Disabled Disabled 60 years or older Service Area 3/4 mile of fixed routes Growth Management Area Fares Fares cannot exceed two Based on Income : times the fare of the fixed ■ $2 . 50 route ■ $ 1 .25 ■ $0. 50 ■ Free (The actual cost of a Dial-a- Ride trip is $21 . 97) Days/Hours of Service Comparable days & hours Monday-Thursday 6 : 00 a.m. — 7 : 00 p.m. ■ Extended to 12 : 30 a.m. Friday & Saturday ■ Extended to 2 : 30 a.m. City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 4-2 4 n 0la - A - Ride - -' Service Area ( Fort Collins Urban Growth - Boundary ) rY ) Mandated Service Area ( 3 / 4 Mile beyond Fixed Route Service ) The Problem Unfortunately, the service demand is exceeding our financial ability to continue providing service that exceeds the federal requirements . Citizen demand for the City' s Dial-a-Ride service continues to increase (see Ridership Projections below) and expenditures are significantly outstripping resources to operate the service (see Budget Shortfall below) . City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 4-3 Ridership Projections 130 , 000 125 ,00-43 1207000 111 , 00 1107000 105900 1007000 93 , 00 007000 82 ,278 807000 7 39GO 70,000 60,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 Budget Shortfall $3.5 U) $3.0 "' N M O $2.5 1 % 7% 15% 22% N N $2.0 CO cv O $1 .5 to CO n to rn $1 .0 $0.5 $0.0 2003 2004 2006 2006 2007 2008 2009 2010 2011 kk ❑ DAR Operating Budget ❑ DAR Operating Expenditures Options Among the proposed cost/service reductions to address the 2007 General Fund shortfall, is to reduce Dial-a-Ride service to the minimum level required under the Americans with City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 4-4 Disabilities Act. The reduction amounts to $ 600 ,000 perms. Dial-a-Ride service that remains intact includes : • Service within 3/4-mile on either side of a fixed route . • Service only to persons who have a disability that prevents them from using fixed route service . • Reduced fares based on income changes to $2 . 50 (twice the fixed route regular fare ) . • Days and Hours of Service — the same service hours as fixed route which is 6 : 00 AM - 7 : 00 PM . To counter the effects of reducing Dial-a-Ride there are several fixed route options : A. 60 minute service on Harmony to Ziegler (Monday — Saturday). Total Net Cost of $448,000 • $230K for fixed route • $250K for DAR 3/4 mile on either side of Harmony • Less $32K in additional revenues from fares, bus pass sales and advertising revenue . B. 30 minute service on Harmony to Ziegler (Monday - Friday) & 60 minute service on Saturday. Total Net Cost of $635K • $425K for fixed route • $250K for DAR 3/4 mile on either side of Harmony (service does not increase with increased fixed route frequencies) • Less $40K in revenues . C . 60 minute service on Timberline (Monday through Saturday) Total Net Cost of $303K • $230K fixed route • $ 105K DAR, as this extends the DAR service area 3/4 mile east of Timberline • Less $32K in revenue D. 60 minute service on East Prospect (Monday through Saturday) Total Net Cost of $ 198K • $230K fixed route • $0 DAR • Less $32K in revenue Cumulative Total $ 1 . 136m • $885K fixed route • $355K DAR • Less $ 104K revenue City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 4-5 Recommendation a. Reduce Dial-a-Ride service to ADA minimum requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ($600,000) cost reduction b. Add fixed route and related Dial-a-Ride services (within 3/4-mile of any new fixed routes) : ( 1 ) 30-Minute service on Harmony to Ziegler . . . . . . . . . . . . $635 ,000 cost increase (2) 60-Minute service on Timberline 1 . . . . . . . . . . . . . . . . . . . . . $303 ,000 cost increase (3 ) 60-Minute service on East Prospect . . . . . . . . . . . . . . . . . . . $ 198 ,000 cost increase Total Increased Costs for 2007 . . . . . . . . . . . . . . . . . . . . . . . . .. $ 19136,000 It' s difficult to recommend cutting Dial-a-Ride service, particularly when people depend on the services for their transportation to work, for appointments, and to socialize in the community. But at a cost of approximately $22 per trip (versus the cost of a fixed route bus trip at $2 . 00), with costs as well as demand for service increasing at a rapid pace, and the rate of growth of the City' s General Fund resources unable to keep pace with costs, it is imperative that costs be reduced. To minimize the impacts on citizens as much as possible, new fixed routes are recommended. These are in corridors linked to employment and medical facilities to help citizens get to jobs and to community medical facilities . New Dial-a-Ride service will be provided within 3/4-mile of these new fixed routes. The added fixed routes will also serve the general citizenry, providing new transit opportunities to employment and medical centers . City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 4-6 -- Section 5 -- Preliminary Price of Government Comparative Data September 26 , 2006 City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 5- 1 COMPARING TO OTHER COMMUNITIES Citizens and leaders frequently ask about and debate the relationship between the value and the price of local gov- ernment services . It is common to want to compare the value and price of one local government to another. How does Fort Collins compare to other Colorado communities? What measures are the best to use for such compari - sons : Taxes paid per capita? The aggregate of taxes and fees paid in a community? Total governmental revenues collected ? Total expenditures per capita for government programs? For the Budgeting for Outcomes approach , the price of government meant the amount of purchasing power a com- munity is willing to commit to its government. There is no " right ' price of government any more than there is a right price for hot dogs. The acceptable price varies from city to city depending on its wealth , history, culture, values, and the services its citizens want. Still , the question remains : How does Fort Collins compare to other cities? To attempt to answer this question , a number of different measures were used for comparison . A. COMPARATIVE SALES TAX RATES Colorado Front Range Cities, 2006 Tota I Cultural/ Sales and Municipal Local RTD/RTA Stadium County State Use Tax Property Tax Property Sales Tax Tax Tax Sales Tax Sales Tax Rate Mill levy Tax Rank Northglenn 4 .00% 1 . 00% 0 . 20% 0 . 70% 2 . 90% 8 . 80% 11 .59700 6 Westminster 3.85% 1 .00% 0 . 20% 0 . 70% 2 . 90% 8 .65% 3 .65000 19 Thornton 3.75% 1 .00% 0 . 20% 0 . 70% 2 . 90% 8 . 55% 10 .21000 8 Aurora 3 .75% 1 .00% 0 . 20% 0 . 70% 2 . 90% 8 . 55% 8 .60500 13 Commerce City 3 .50% 1 .00% 0 . 20% 0 . 70% 2 . 90% 8 . 30% 3 .28000 20 Arvada 3.46% 1 .00% 0 . 20% 0 . 70% 2 . 90% 8 .26% 4 . 13000 18 Broomfield 4 . 15% 1 .00% 0 . 20% 2 . 90% 8 .25% 11 .45570 7 Boulder 3 .41 % 1 .00% 0 . 20% 0 . 65% 2 . 90% 8 . 16% 9 . 99000 9 Englewood 3 .50% 1 .00% 0 . 20% 0 .25% 2 . 90% 7 . 85% 8 . 32000 14 Longmont 2 .95% 1 .00% 0 . 20% 0 . 65% 2 . 90% 7 . 70% 13 .42000 3 Denver 3 .50% 1 .00% 0 . 20% 2 . 90% 7 .60% 25.47000 1 Golden 3 .00% 1 .00% 0 . 20% 0 . 50% 2 . 90% 7 .60% 12 .34000 4 Lakewood 3 .00% 1 .00% 0 . 20% 0 . 50% 2 . 90% 7 .60% 4 . 71100 17 Wheatridge 3.00% 1 .00% 0 . 20% 0 . 50% 2 . 90% 7 .60% 1 . 83000 21 Pueblo 3 .50% 1 . 00% 2 . 90% 7 .40% 15.63000 2 Colorado Springs 2 .50% 1 .00% 1 . 00% 2 . 90% 7 .40% 4 . 94400 16 Littleton 3 .00% 1 .00% 0 . 20% 0 .25% 2 . 90% 7 . 35% 6 .66300 15 Windsor 3.20% 0 . 80% 2 . 90% 6 .90% 12 .03000 5 Fort Collins 3 .00% 0 . 80% 2 . 90% 6 . 70% 9 . 79700 10 Loveland 3.00% 0 . 80% 2 . 90% 6 . 70% 9 . 56400 12 Greeley 3.46% 2 . 90% 6 . 36% 9 . 74000 11 • For total Sales and Use Tax rates, Fort Collins and Loveland have the second lowest rate of 21 communities at 6 . 70 % (local , county, state, and special sales taxes) out of twenty one cities . Northglenn has the highest sales and use tax rate at 8 . 8 % . • For Property Tax Mill rates , Fort Collins ranks 10th out of twenty one cities with a 9 . 797 mill rate. The highest is Denver at 25 . 47 mills and the lowest is Wheatridge at 1 . 83 mills . B. UTILITY RATES Comparative data was collected for electric, water, wastewater, and stormwater service rates. In terms of utility rates and among the eight Colorado cities evaluated , Fort Collins stacks up as follows (#1 is highest rate to #8 is lowest rate) : • one of the lowest (#6) electric rates • about mid-point (#5) for water rates at 5,000 gallons and in the upper third (#3) for water rates at 21 ,000 gallons • one of the lowest (#7) for wastewater rates • the highest (#1 ) for stormwater rates Overall , Fort Collins ' utility rates when compared with eight other Colorado cities and viewed in the aggregate, are about mid - point (#5--this includes the comparisons for the water use at 5 , 000 gallons) and in the upper third (#3-- when taking into account water use at 21 , 000 gallons) . Electric Rate Comparison - 700 kWh per Month $80 $70 $60.90 $62. 12 Q) " $60 $55.76 -0 L 3: $47.41 $48.43 Y $50 � o $42.82 0 $40 $30 v ° $20 ro v $ 10 v Q $- Longmont Loveland Ft. Collins Co . Sprs P.V. REA Xcel Water Rate Comparison $ 105 Average Residential Use January & July _ o C? i U� O N (6 co 00 EA E o LO � $70 00 o6 U V LD VD ES W r L0 It Cl? 00 EF) � o6 Ln $35 0 41 n N N (O pp N C Lq o M E E9 EA � EA cO G $0 S °o\o� o, C�c CPO Avg Jan . 5,000 Gal. ■ Avg July 21 ,000 Gal. Wastewater Rate Comparisons WQU 5,200 gallons $30 Y a0 $22.60 $20.00 o0c $20 $ 16 .86 $ 17.43 $ 17. 67 $17.79 $ 18.26 o E 0 $10. 14 0 v $10 v rn a`, $- > Denver Ft. Collins Greeley Longmont Boulder Loveland Windsor Co.Sprs Stormwater Rate Comparison $ 14 8600 Sq Ft, Light Run Off or 40% Impervious $14.26 $ 12 $10.39 v $10 E $8 $7.40 o $6.42 $6.55 $6 t V $4.30 1$4.89A[J�j o $4 E $2 $0.00 Co.Sprs Greeley Windsor Longmont Boulder Denver Loveland Fort Collins Residential Utilities 2006 Rate Comparison July Water Use 21 ,000 Gallons $180 $160 $140 $120 $100 $80 $60 $40 $20 $ Longmont Loveland Denver (Xcel) Co.Sprs Ft. Collins Greeley Boulder Windsor (Xcel) (Xcel) (PVREA) GStormwater $6.42 $10.39 $7.40 $- $14.26 $4.30 $6.55 $4.89 GWastewater $17.67 $18.26 $10.14 $22.60 $16.86 $17.43 $17.79 $20.00 G Water $60.11 $38.39 $47.81 $58.57 $76.51 $51 .48 $80.59 $81 .30 ■ Electric $42.82 $47.41 $62.12 $55.76 $48.43 $62.12 $62.12 $60.90 C. OVERALL COMPARISONS Obtaining a quality " apples to apples" comparison on what it costs to provide municipal services among cities in a region or the state is not as clear-cut and precise as some would like . For instance, staff has gathered data from eleven (11 ) Colorado cities to compare the price of government among these communities . • Loveland • Thorton • Colorado Springs • Pueblo • Greeley • Aurora • Westminister • Arvada • Longmont • Lakewood • Boulder While we have the numbers and can draw some comparisons , the numbers alone do not tell the story. For example, not all of the cities have the same services . Colorado Springs has the most services—providing 11 of 13 services . However, Colorado Springs is the only City that provides natural gas to its citizens but does not provide Library Service . At the other end of the spectrum , the City of Lakewood provides only 5 of the 13 services—Police , Water, Wastewater, Stormwater, and Open Space. Other types of traditional municipal services , such as Fire, Library, Parks and Recreation , while available to the citizens of Lakewood , are provided by separate districts or the county. Another factor that makes an "apples to apples" comparison challenging is that while the types of services among cities may be the same (Police , Recreation , Library) , the levels of service and specific programs within the service vary a great deal . For example , Fort Collins ' standard is to provide a neighborhood park in every square mile of the City. Another City may have as its standard to provide a neighborhood park in each quadrant (northeast ; northwest ; southeast ; southwest) or perhaps to only provide one large, community park. When a comparison of park mainte- nance costs is made among cities , much of the cost relates to the community's values and standards , translated into how many parks, how large of parks , and the facilities that are included in the parks . It 's requires a much more rigorous analysis to get a true comparative picture than merely asserting "community A spends less money than community B on parks maintenance ; therefore community A is much more efficient . " Attempting to make as close a comparison as possible , information which is uniform to all of the eleven cities was used to determine each one 's price of government . The financial information is common to all of the cities and is from their 2005 Comprehensive Annual Financial Reports (CAFR or the annual audit) . For each city, the total of their governmental revenues (taxes , fees , investment earnings , etc .) that support their general municipal services—similar to our General Fund supported services-- is divided by their per capita per- sonal income' to obtain their Price of General Government. A similar calculation was also done to obtain each city's price of All Government (which includes their general gov- ernment revenues plus their enterprise revenues . The total of all source revenues divided by per capita personal income equals the price of the bulk of services provided by each city government . For Fort Collins, the price of general government services in 2005 was approximately 3 . 5 cents out of every dollar of personal income. The combined price (general government revenues plus enterprise revenues) for Fort Collins in 2005 is 6 .4 cents out of every dollar of personal income . As cited in the Price of Government by David Osborne and Peter Hutchinson , the average price of local governments throughout the nation has remained fairly stable at 6 to 6 . 6 cents per dollar since 1972 . SUMMARY In recent weeks , several assumptions and exclamations have been made by community members regarding the size of our City government—that citizens pay a premium for city services . Some of the assertions were based on incomplete and outdated information . However, it is important to ask questions and seek information comparing the price of government . Much data and information exists to use for such comparisons. But if the analysis is not rigorous and disciplined , the conclusions can be very misleading . With the data points used in this section , which are based on 2005 financial audits and 2006 information , the fol - lowing conclusions can be made : • Fort Collins (and Loveland) have the second lowest sales tax rate among 21 Colorado cities • Fort Collins property tax rate is mid - point among the 21 cities • Fort Collins has one of the lowest electric rates among eight purveyors • Fort Collins has the highest stormwater rate among eight purveyors • Fort Collins ' water and wastewater rates range among the lowest (wastewater) to the upper third (water) • the overall price of government in Fort Collins 6 . 4 cents per dollar of personal income of citizens in the City • Fort Collins is a full -service city providing 11 of 13 services surveyed , therefore its price of government is higher than many other Colorado cities • Fort Collins ' price of government is comparable to the average throughout the nation (6 to 6 . 4 cents) The numbers do not speak to the quality of service nor to the similarities or differences as to the levels of service . For a more rigorous comparison and to get closer to an "apples to apples" comparison , a more precise analysis would need to be done to determine the breadth and the extent of those services in each community. Personal income is the sum of all income that individuals in the community derive from work, dividends, interests, rent, and transfer payments such as Social Security. It is a measure used to approximate a community's "purchasing power. " Because the available data is reported in relation to a county or an SMSA area, such as Loveland-Fort Collins, the Per Capital Personal Income figures shown in the chart are an estimate and an extrapolation . More analysis needs to be done to ensure a more precise number. 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The following information addresses these questions . Neighborhood Quality 230 Nuisance abatements What is the nature of the cuts and the impact on Nuisance Enforcement? These reductions do not impact Nuisance Enforcement, only those funds which are available for the abatement of nuisances which are not completed by a cited property owner. Examples of these types of abatements include snow removal at properties which are not shoveled by the property owner or cutting weeds at a property that is cited for a violation but the weeds are not cut by the owner within the time allowed under the citation. This cut will not diminish staff s abatement ability — staff has found better ways to achieve voluntary compliance, including increased abatement fees that now pass on ALL associated costs of abatements to the violator, posting properties to improve notification, an improved billing system, and assessment of liens, all of which in combination have proven to be an effective incentive to correct violations without the City getting involved in contracting abatements . The bottom line is that the code compliance program now requires far less "Contractual Services" out of the "pocket" of the General Fund to achieve compliance . The $ 50K reduction in this line item still leaves about $ 83K ongoing annually for such services, which is projected to be sufficient in this budget cycle. City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 6- 1 City Council Members August 22 Work Session Follow-up September 21 , 2006 361 One-Stop Shop What is the impact of these reductions on the ability of the One-,Vtop ,Shop to succeed in improving customer service ? Staff believes that the consolidation of three service windows into one window will allow service to be provided with one fewer staff member while maintaining quality customer service levels. Safer Community 341 School Resource Officers program How much does the school district contribute to this program ? How would the reduction of this program change the PSD 's matching funds ? Poudre School Districts contributes funds to support the School Resource Officers program. If the proposed reductions in the service were made, the school district would reduce its contribution by $262 ,000 the amount provided for SROs in the elementary and junior high schools . 394 Building Inspection What is the rationale for the "trade off' in adding the housing occupancy inspector position ? It' s a matter of statistical data. Since our all-time peaks occurred in 2002 for various annual activity/demand indicators such as total yearly inspections, plan reviews, permits for new housing starts , total permit/plan review fees collected, and total annual construction value of permits issued, the numbers have continually fallen. Unlike nearly most other City services, the Building Permit-Building Codes Compliance programs have for many years paid for themselves; and without a fee increase since 1984 . However, in the past couple of years, the cost of providing those services has finally begun to overtake the revenues generated by these services . Coupled with the fact that our building-permit related demand indicators (inspections and plans reviewed) have dropped by approximately 25 %, our Inspection staff collectively is producing comparably less output per person, in particular, below national optimum rates for number of inspections per FTE. It ' s clearly evident in our daily assignments . The last thing anyone wants to do is cut staff, especially when it required so much effort and badgering to build up the staff in the 90s, growing from 4 up to 8 inspectors , in the intervening time by the year 2000, to keep up with the massive service demands . We lost an inspector by attrition a year ago. Even so, unfortunately, the projected long-term decreased demand in this service clearly indicates the need to eliminate an additional Building Inspector position. As the City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 6- 2 City Council Members August 22 Work Session Follow-up September 21 , 2006 NBS department manager, I have the difficult but necessary task of making responsible decisions with our citizens ' "business". On the plus side, Council has indicated the desire to fund the previously unfunded and vacant, new "Housing-Occupancy Inspector" position, also located within our department. 646 PFA Reductions Provide additional information including pro%on statements about the suggested PFA cut package. Why are they, or why are they not possible cuts ? Poudre Fire Authority has addressed these follow-up questions in a memorandum provided to Council on September 7 , 2006 . See Attachment 1 . Cultural, Recreational and Education 101 Northside Aztlan Center What impact will reducing clerical staff have on the new facility? The short answer is that we are not recommending reducing clerical staff at the new NACC . When the new Northside Aztlan Community Center opens in mid- 20071 the primary registration site for the Recreation Division will shift from 214 N. Howes to this new facility. When the primary registration function shifts to the new facility from 214 N. Howes in mid-2007 , one clerical position currently at 214 N. Howes is scheduled to shift to the new Northside facility. The current Northside facility has only email via modem and basically no other external technology functions because of lack of fiber hook-up, and therefore cannot currently handle any computerized registration. The new facility will have fiber access and all technology functions available to facilitate moving the primary registration site to thtis location. Given the budget situation for 2007, we would shift responsibilities of one clerical from 214 N. Howes at the beginning of 2007 to the current Northside facility instead of mid-year. This clerical person would spend a portion of her time organizing and auditing the clerical functions at the current Northside facility so that when the move does take place and technology is available at the new facility, the other hourly clerical staff at NACC will be trained and ready to take on additional functions related to computerized registration. In addition, the clerical staff member from 214 N. Howes would also help out with major registration periods at 214 N. Howes in the first half of 2007 as well as learn the front desk operation at Northside . And finally, this person would also assist with moving the registration function to the new NACC facility when it opens in mid-year 2007 . City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 6- 3 City Council Members August 22 Work Session Follow-up September 21 , 2006 179 Senior Center Trips Program Can we keep some or all of the program if we were more efficient? Are there options for eliminating some discounts based on ability to pay? Could a fee change make the trips program self supporting. Of the $77,900 identified in this item, The Senior Trips program accounts for $38 ,900 , (Additionally, $ 15 ,000 is cuts in various Senior Center line items , and $24,000 is additional revenue generated by eliminating discounts for seniors age 60 and older based only on age) . The expenses in the trips program are two-fold: 1 ) transportation and ticket/meal/lodging expenses (estimated at $ 104, 800 in 2007) ; and 2) the expense of the classified Recreation Coordinator to plan and implement the program ($ 74, 100) * . All of the trips, with the exception of bus charters, are driven by either volunteers or the classified employee who sets up the trips, which means that there are no additional staff expenses. In 2007, the total expense requested for this activity is $ 178 ,900 . This program includes almost 150 trips/year (2 . 8 trips average /week) for over 2,600 participants . The 2007 revenue is projected at $ 140 ,000, creating a General Fund support need of $38 ,900. * In addition to planning all the trips, the Recreation Coordinator also provides facility and program support at the Senior Center for special events . This person also assists with the publication of Pathways, the quarterly program publicity brochure for adults and seniors . Since expenses in item 1 ) above are fixed costs, and the program would not exist without a staff member organizing it, the only option to reduce impact on the General Fund is to raise fees, and thus increase revenue. Staff believes that a reasonable fee increase for most trips in 2007 could generate an additional $ 8 ,900, reducing the General Fund impact to $30,000 . 199 Cemetery Maintenance Does the cut to this program effect family burial service hours (e.g. Saturday burials) ? Cuts recommended in the Cemetery Fund will not reduce burial services . The cuts will reduce the seasonal workforce and delay capital improvements to Grandview Cemetery. Improvements to the irrigation system at Roselawn Cemetery in 2006 will reduce the manual labor needed to operate the system in the future. Improvements to the cremation garden at Grandview Cemetery will be delayed. 369 Trail Maintenance What were the conservation trust fund revenues being spent on in previous years, and how will those programs be effected by shifting these revenues to trail maintenance? City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 6- 4 City Council Members August 22 Work Session Follow-up September 21 , 2006 Conservation Trust Funds are used primarily to build our trail system. To help balance the 2006-2007 budget, the trail construction budget was reduced by $90 ,000 which is 8% of the $ 1 , 100,000 trail construction budget. The reduction would have been much greater without the significant increase in trail construction funding provided by Natural Resources . A reduction in the trail construction budget of an additional $ 125 ,000 for 2007 represents a 12% decrease and a 20% decrease over two years . Conservation Trust funding for trail construction would be approximately $ 885 ,000 in 2007 . A mile section of concrete trail costs about $350,000 and trail underpasses cost about $400,000. The $215 ,000 annual reduction in trail construction could delay the build-out of our trail system by as long as five years. 414 Neighborhood Park maintenance What is the City 's total expenditure for Neighborhood Park Maintenance and whatpercentage of reduction does $40, 000 represent? The City spends $ 1 ,600,000 for neighborhood park maintenance . Cuts recommended include $ 10,000 for trimming around fences and structures in the park system and $30,000 for reducing trash collection from 6 days a week to 2 or 3 days a week. 415 Picnic Rock How can maintenance of this site be accommodated? Will it be picked up by Natural area ? What other alternatives are possible ? If the currently budgeted, one-time funds for the maintenance of Picnic Rock are available to Natural Areas staff in 2007, the resident manager will be able to continue City maintenance of the area. Transportation 674 Dial-A-Ride : 1) How many people are really dependent on DAR service ? DAR presently serves 2,300 active clients with more than 40 applications submitted per week. It is unknown how many of these customers have access to other alternatives such as SAINT; Shamrock taxi service ; and transportation provided by friends, family, and care providers . Because it is immaterial information under ADA, it is not collected from the applicants. 2) How many clients pay full DAR fare ? How many clients receive a subsidize ride? Of the 2,300 active DAR passengers, over 1 ,600 people pay the full fare of $2 . 50, which is 70% . Of the remaining passengers, 144 (6 . 3 %) qualify for a reduced fare of $ 1 .25 ; 378 ( 16%) qualify for a special low-income fare of $0 . 50 ; and the remaining 155 (6 . 7%) are over the age of 90 and qualify for free service. City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 6- 5 City Council Members August 22 Work Session Follow-up September 21 , 2006 3) Provide some information if we cut back DAR, but still supplement or use DAR for some of the special needs "routes " or destinations. The difficulty of providing special needs routes, or targeting popular destinations that might be outside the service area is the potential for public backlash and discrimination claims . If, for example, service exceptions were provided to Foothills Gateway or PVH Harmony campus, a person with disabilities who lives near either facility may have a valid discrimination claim against the City for serving only select groups . One option would be for an organization or facility to contract with the City for service at a full-cost rate . This would maintain reliable transportation while removing the public interest from the service. Another option could be adding fixed route transit service to these destinations . 4) What about the option of limiting service to the entire City, i. e., the city limits (not GMA but beyond the ADA limits). Would like some data about this option. Compared to ADA daytime service only, potentially an additional 16,000 trips would be added if DAR service was extended from the 3/4 mile buffer to the current city limits, costing an additional $335 ,000 annually. Regardless of the level the City chooses to exceed ADA mandates, the implications are still same . Once the service exceeds ADA mandates, DAR loses the ability to deny trips when demands for service exceed capacity. If the service area is extended to the city limits, significant destinations remain outside the city limits, including Foothills Gateway. 5 Council wants a chart that compares DAR service to other Cities. Service Exceeds ADA Requirement Fort Loveland Greeley Denver/ Boulder Grand pueblo Colorado Collins Junction Springs Yes -City Service Yes- Yes - City Limits + Area GMA Limits Evans No No No No Yes - Eligibility 60+ Yes - 60+ Yes - 60+ No No No No Yes - Yes - Reduced Reduced Fares Fares Fares No No No No No Service Days/Hours Yes No No No No No No City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 6- 6 City Council Members August 22 Work Session Follow-up September 21 , 2006 Additionally, Transfort staff gathered this data on 65 other cities across the nation and found that none of these systems were providing the level of service provided in Fort Collins . Some systems did not charge the highest fare allowed, they did serve beyond 3/4 mile of a fixed route or service hours beyond fixed route service hours. But none of these systems exceeded the ADA requirement in service area, eligibility, fares, and service hours as we do in Fort Collins . High Performing Government 214 Building Systems and Energy Management Provide a detailed list of what cuts would be made and which would be avoided with the $195, 000 estimate. 1. Would public restrooms be closed? No, the downtown restrooms would not be closed in 2007 . This facility is located in the north-west section of the Remington Street Parking Lot. It contains a small (99 s . £ woman ' s & 106 s . f. men' s) restroom facility. Although it is inadequate for today ' s needs it will remain open pending its replacement or the proposed hotel development at this site. It was recommended to be closed due to its inadequacy, upkeep costs, and public safety / security concerns . The building is used by the homeless as a shelter and possible other dealings . If it was closed, we propose to install portable restrooms in the parking structures . The 2007 budget savings would be $ 7,270 if closed. 2. Other Buildings proposed for closure ? (See photos, Attachment 2) a. Police Annex — This 4,550 s . f. facility would remain open for 1/z year pending the fitness center' s relocation to the new police services building in 2007 . Currently, there is no proposed use of this building. Budget savings : $ 13 ,740 . b. 110 —114 N. Howes building — Modules of this 2,210 s . f. building are used by both the police school resources officers (SROs) and the Friends of the Library. The SROs would temporarily relocate to 215 N. Mason pending the opening of the new police services building in 2007 . It is likely that the Friends of the Library will pay to lease the 860 s . f. module they are in. Budget savings : $9 ,400 . c . Youth Activity Center — This leased 28 ,720 s . f. recreation center is proposed to be closed once the new Northside center is opened. 1/2 year budget savings : $ 15 , 500 . d. 214 N. Howes — This 6,900 s. f. building is currently being used by Recreation Administration staff. There is adequate space within the 215 CLRS portion of 215 N. Mason to relocate these personnel to that building thus freeing up the building for possible leasing or be "mothballed" pending a future use . Budget savings : $24,478 . e . 321 W. Maple — This 1 ,950 s . f. building is currently being use by the Budget Office. There is adequate space with the Financial Services portion of 215 N. Mason to relocate the budget staff to that location. The building City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 6- 7 City Council Members August 22 Work Session Follow-up September 21 , 2006 may be leased or "mothballed" pending a future use . Budget savings : $ 81100 . f. 212 W. LaPorte — This 6 ,380 s . f. building is being leased to Abraxis Glass pending the construction of their new facility. It is anticipated that they will remain here through 2007 if not the building will be "Mothballed" pending a future use . Budget savings : $ 19, 500 . g. 300, 304, and 304 1/2 N. Howes — These three buildings include the old "Cramer' s and "CV Axel" facilities and a small house all located on block 33 . The major portion of block 33 is under contract to be sold for residential development. Since these buildings are included in this contract there is no need for the City to maintain them. Budget savings : $ 10,486 . 3. What other cuts are proposed in this offer? a) A portion of a purchasing FTE (.05) who directly supports Operations Services . Purchasing will fund this cut with one-time funding in 2007 . Budget savings : $4,312 . b) A portion of the maintenance dollars budgeted for fire stations 1 thru 4. Based on the average maintenance expenses over the past 3 years for these buildings, the actual budget should be less. Item 4b is refers. Budget savings : $55 ,600 4. What will be retained? a) General building maintenance funding for non-planned / unforeseen repairs which may occur during 2007 in the amount of $ 85 ,564 . b) Funding for general maintenance of fire stations 1 thru 4 in the amount of $20,000 . This is the 3 year average yearly routine maintenance costs for the 4 facilities . c) As noted in 1 , the Downtown Restrooms will be retained. Budget: $71270 , 5. How will we save fuel? Operations Services has hired Johnson Controls as an ESCO (Energy Services Company) to audit 28 of the city ' s major buildings for energy saving opportunities. The goal is to enact these projects/upgrades with the hopes of saving up to 15 % of the combined energy costs of these targeted buildings . Part of the savings attained will fund the ESCO projects (HVAC upgrades, lighting change outs, building envelope alterations) with paybacks between 10 and 15 years . 238 Accounts Payable Why was this $15, 500 offer not included in the Level 3 cuts ? What is a privacy phone? This reduction is included in the City Manager' s Recommended Budget. Several privacy phones are provided in the 215 Mason Administrative Building. These phones are available to employees for use during the work day when a phone call needs to be completed in private. Since most employees in this building are in cubicles which offer little privacy for confidential or possibly City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 6- 8 City Council Members August 22 Work Session Follow-up September 21 , 2006 personal phone calls, these phones provide alternative phones—essentially a phone booth. The department will cut a small amount of costs by disconnecting its privacy phone. 355 Payroll Processing Why was this $52, 000 offer not included in the Level 3 cuts ? This reduction is included in the City Manager' s Recommended Budget. 510 Rebate programs Does this decrease funding for actual rebates or is it solely for the program publicity ? What are the program cuts ? This service reduction will include hiring fewer contractual staff to administer the City ' s Rebate Programs . This staff reduction will delay the processing of rebates . A reduced and more accurate funding level for rebates (based upon the 2005 experience which provided funding to nearly twice as many households as a result of higher household income limits) will also be budgeted in 2007 . This more accurate projection of program costs should result in no financial impact to those applying for the rebates . Other Issues . 1. Can the Manufacturers Use Tax Rebate be funded through reserves instead of the typical Use Tax Cap excess ? If the City has adequate unrestricted reserves, this approach could be considered, however, the Finance and Audit Committee recommended that funding for the program be included in the General Fund on-going budget. 2. Personal Services (Salary Issues) . • What are the projected costs for Cost of Living At in the General Fund under the current proposal? Cost of Living Adjustments (COLAs) for employees in the General Fund are budgeted for $ 546,000 in 2007 . This 2 . 3 % increase does not include Merit pay increases. Funding for Merit increases is eliminated in the City Manager' s recommended budget. Those increases had been projected to equal approximately $ 1 Million. • What is the timetable and work plan for examining overtime policies, leave policies, employee pension programs, and health program (co pays, prescriptions, premiums) ? City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 6- 9 City Council Members August 22 Work Session Follow-up September 21 , 2006 Personnel Policy and Procedures Human Resources Department Work Plan—Review Schedule Employment Categories (Classified, Unclassified, 2007 Contractual definition review Recruitment & Selection (Process 2006 and 2007 improvements, Advertising costs / effectiveness review ) Training & Conference, Travel (Training tracking 2007 system development) Overtime, Compensatory Time (Manager review Ongoing possible with new online time sheets stem) Employee Pay Increases - (Create pay for performance 2007 & 2008 system) - Benefits --Medical, Dental, Vision Annual review of market and plan design Benefits--Pension / Retirement Annual review Employee Leave Policies 2006 review and proposed change Employee Wellness Program review Annual 3. Council Member Kastein asked for a detailed analysis of the City 's "cost of government. " He is seeking data and comparisons including fees and taxes. See the Work Session materials, Section 5 . 4. What analysis can be provide regarding the economic impact of parks on the community ? See the attached memorandum from Marty Heffernan, Director of Cultural, Library and Recreation Service re : Economic Impact of Parks, Attachment 3 . City of Fort Collins—Financial Stability Work Session, September 26, 2006 Page 6- 10 Attachement 1 e irePhone:970-221-6570 e ::'r. }�' 102 Remington Street Fax:970-221-6635 L , j�,.lV Fort Cotlirm,CO 80524 Internet.www-poudre-Fve.org DATE: September 7, 2006 TO: Council Member Ohlson y FROM: John Mulligan, Fire Chief py THRU: Darin Atteberry, City Manager RE: Response to Questions from August 22, 2006 Council Work Session Executive Summary Questions concerning the service level reductions caused by reducing truck staffing from four to three and the impact of reducing one FTE in the Fire Prevention Bureau were raised by Councilman Ohlson on August 22, 2006, • A reduction to a three-person truck eliminates our ability to break into two, two-person teams to execute various firefighting, and search and rescue functions. While this service reduction cannot be quantified, operational functions will be delayed and will be felt on an emergency scene. A reduction in the Fire Prevention Bureau will exacerbate service shortfalls already caused by understaffing. For example, the Fire Prevention Bureau is responsible for the same number of inspections and plan reviews as the City's Planning and Building Department. However, for the period 1995 to 2005, PFA's Bureau has only increased staffing by 11% while the City's Building Department has increased by 127% (the latter includes recent reductions). As discussed below, services impacted will include field inspections, plan reviews, and fire investigations. Truck Company Operations Introduction Questions naconcerning Truck Companies were raised by Fort Collins City Council at their August 22 session. Poudre Fire Authority staff has provided the following background information on the functions of Truck Company operations and service level differences when staffing is reduced from four firefighters to three. •Information Today's Truck companies have evolved into a specialized fire company that provides support for engine companies at building fires, extrication and special rescue. Response • to all emergency situations requires a well choreographed operation by all responding emergency services personnel to best protect life and minimize property loss; the Truck Company provides expertise, effectiveness and efficiency in these emergency situations. The truck company performs tasks that fall into three primary categories as described below: • Building Fires o Forcible entry — provide entry through locked doors, windows and other openings o Ventilation — remove heat, and smoke using fans, natural openings, or holes that are typically cut in roofs o Search and rescue —find and remove citizens, and/or firefighters that have been incapacitated or trapped inside burning buildings o Salvage and overhaul — protect furnishings and personal items from water damage do to fire extinguishing efforts, and to ensure that there are no hidden pockets of fire still burning o Elevated, and large volume fire streams —deliver water to large fires in buildings where entry by firefighters is impossible. This water can be applied through collapsed roofs by elevated streams up to 100 feet in the air, and at volumes of 500 to 2,000 gallons a minute • Extrication • o Vehicle— remove citizens trapped in cars, and trucks due to vehicle accidents o Industrial machinery— remove individuals who have become trapped in machines and/or farm equipment, usually hands, arms, or legs • Specialized Rescue o Below ground — most commonly involves workers trapped in trenches whose walls have collapsed and buried them o Above ground — removal of citizens trapped above ground requiring use of ropes and technical climbing equipment. Common rescues would involve window washers working at multi-story buildings, construction workers injured on upper floors of a building, or utility workers working on electric or telephone pole o Building collapse — provide shoring, and stability to buildings collapsed due to natural or propane gas explosions, collapse due to vehicles running into buildings, collapse of buildings under construction as a result of high winds, design or construction errors All of the tasks listed above must be accomplished as quickly as possible. The sooner they are done, the less chance of injuries to occupants, and firefighters as well as damage to property. The goal of the firefighters is to accomplish these tasks in the first ten to fifteen minutes from arrival of the first fire engine. • Truck Company firefighters receive advanced level training in specialized techniques and the use of complex and potentially dangerous equipment. The skills and use of the specialized equipment requires frequent practice in order to maintain proficiency and safety. The tasks must be done quickly, and with great skill, or the ability to do such • things as put out a fire and rescue people, or remove people trapped in vehicles in a timely manner will be greatly compromised. The Truck Company is the most economically efficient method for providing the above listed services which protect life and minimize Property loss. Staffing a Truck with Four Firefighters A fundamental rule of firefighting is to always have a buddy with you. Almost every task that firefighters do, particularly in hazardous conditions, is based on a crew of at least two firefighters. This fundamental concept is what drives the need to maintain staffing on PFA truck companies at a minimum of four firefighters. Four firefighters allow the use of two teams at a fire scene. The inside crew (two truck firefighters)will conduct a primary search for any occupants still in the building. The outside crew (two truck firefighters) will begin ventilation by raising ladders, assembling equipment such as saws for cutting holes in the roof, and ventilation of the roof to remove smoke and heat from inside the building. The truck personnel on the roof will coordinate their ventilation with firefighting crews inside the building. Search & rescue and ventilation are most effective when done simultaneously; expeditious ventilation allows for reduction of heat, smoke and steam. This provides a safer environment for a more thorough search & rescue and provides citizens a greater chance of surviving because of a less volatile environment. When properly executed, the venting of the roof will stop the spread of fire and allow smoke, heat and steam to escape. The steam is caused by applying water to the fire and can reach scalding temperatures. The arrival of the second truck company provides additional personnel to supplement the ,The & rescue efforts inside the fire building, augment ventilation and salvage operations which helps to minimize property damage. Staff a Truck with Three Firefighters When a crew is limited to three firefighters, they can only form one team. Difficult decisions need to be made on how best to utilize resources; if the building is tenable the truck crew will search for any individuals in the structure, but if untenable the crew will proceed to ventilate the building to remove superheated gasses, smoke and steam allowing for search & rescue to be conducted. Although both tasks will be completed, significant delays can result when switching tasks from ventilation to search & rescue. These delays can significantly impact the survivability of those trapped inside and the safety of firefighters. Reducing Truck crews to three firefighters would also have a significant negative impact on vehicle extrication times when faced with serious traffic accidents. The ability to safely and efficiently work on both sides of the vehicle simultaneously is severely impacted, resulting in longer extrication times. The "Golden Hour" standard is defined as delivering critically injured patients to an acute care facility within one hour to increase chances of survivability is heavily dependant on the rapid extrication of entrapped individuals. OThe above illustrations are just two examples of the numerous operations Truck ompanies perform and are intended to inform Council of the importance of their unctions. The PFA believes maintaining Truck Company staffing at four firefighters is crucial to the life/safety of citizens and firefighters and the minimization of property loss. • Fire Prevention Bureau A question has been raised regarding the reduction of Fire Prevention staffing by one position based on possible budget reductions. In response, it is important to first illustrate the already strained nature of the overall staffing picture in fire prevention and then to examine the significance of the roles performed by these positions. Both of these points illustrate the significant impact of staffing cuts on the public safety and customer service provided to the community. The reduction of Fire Prevention staff will further increase our customer service challenges due to understaffing conditions already present in Fire Prevention. From 1995-2005 Fire Prevention service demands have increased by double digits in two of the customer service seven areas indicated below; with the remaining areas having triple digit increases. These increases are representative of what other departments are experiencing; however PFA has not been able to increase fire prevention staffing to meet this demand. While fire prevention has not seen an increase in overall staffing, the City has increased 127% (11 to 25, which reflects recent cuts)and the County has increased 131% (16 to 37) for the same time period. Responsiveness to customer needs is of paramount importance when dealing with our customers. As with all departments, fire prevention demands continue to increase and are more complex as we work more closely with our planning partners who depend on our on-time service. The important thing to remember is that PFA Fire Prevention participates in the full • planning process with the City of Fort Collins and Larimer County. The second issue is one of staffing depth. Currently, there are no positions in the bureau that in their primary job p ry� function, are duplicated by another position. Therefore a cut of any one position would essentially eliminate the only position covering that subject area. This would mean that the services provided by that position would not be reduced or shifted. These cuts would result in a complete elimination of those services to the entire PFA district due to the previously illustrated limited resource margins. Services that clearly would be impacted by a reduction in staffing would be our ability to perform arson investigations, which is critical to the prevention of future fires by elimination of hazards or the apprehension of an arsonist (12% of all fires are arson related). Other impacts would be seen in the business safety inspection program (typically 2,500 per year), the Hazardous Materials Management Program (HMMP), design and inspection of in-place fire protection systems through the plan review process as well as reduction in our ability to focus on the complex planning review process. This would include site review, development review, building review, systems review and final inspections to ensure compliance with code. These technical services saw an increase ranging from 10% to 18% last year alone. Of important note is that the services currently provided by the fire prevention bureau are those that have been identified by the community as key functions through the strategic planning process. • Due to limited resources and lack of staffing depth, any reductions would therefore have significant impact on the Poudre Fire Authority's and the City Council's dedication and commitment to provide for basic services and ensure public safety. Fire Prevention Bureau PFA Fire Prevention Planning & Building Bureau Workload Dept Staffing 1995-2005 1995-2005 %Change Plan Reviews +94% City of Ft.Collins 11 - 25 +127% Construction Field Inspections +221% Commercial Sprinkler Systems +83% Ladner County 16 - 32 +131% Commercial Businesses +101% Fire System Inspections +136% PFA Fire Prevent. Education Occupancies +128% Bureau 9 - 10 11% Board d Care +182% Increased staffing within the City and County departments have a direct impact upon Bureau workload and rate at which work must be processed. • • Attachment 2 Select City Owned Facilities , September 21 , 2006 Y. '1 I ■ - I 300 N. Howes, Cramers 304 �/z S . Howes Attachment 2 304 N. Howes, House 4' rJ J A � 30: lob I r R f 1 ' 212 W Laporte Ave, Abraxis Glass a i is � ♦ a �Y, v � 1 - \� � � E r 321 Maple—Budget Office l Attachment 2 Ir 1 �• a 1 J N. Howes p r 1 . A ' 4 • � • e••� • • .•� • tea. �. •,�iii3, 1�E iiiiifl i� • • d1111t1 ' T - - - - DowntownRestrooms NRPkNCYBRARY Parks and D evelop merit Why Public Parrs, open Space and Green`vays Are Wise Investments [ 4 vs gg jjjyy - i � 'IM5N �Vt4 F q e r \aI ~ `°q� ® tip:_ b � �i".l` a vk, l} ..1 • [. �'� & rjx - i lutional Recreation and Park A,aociation Parks and Economic Development Why Public Parks, Open Space and Greenways Are Wise Investments Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ii A thriving system of public parks, trails and open space can bring unimaginable economic benefit to a community. The bottom line is that parks pay. -John Thorner,CAE - Executive Director, National Recreation and Park Association Part Economic Development and Revitalization 7 Cities and towns grow stronger—and smarter—when parks and open space are a vital component of the overall vision_ • Part 11 Regional Tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6reenways,open space and trail networks present visitors with natural places to play— while stimulating small business and enhancing tourism for communities. Endnotes • r MISSIOrl Researchers, park and recreation professionals and citizen advocates are well aware of the integral role that public parks, open space and trails can play in advancing a town's economic vitality.This publication explores the relationship between investment in public parks and recreation and financial vivacity, and states the case for municipalities to consider providing adequate funding for parks as an essential community service. • For more information This publication was produced by NRPA. For more information on the role that public parks and recreation plays in economic development and revitalization, please e-mail cybrary@nrpa.org. • The story is all too familiar.A city budget is slashed, and parks and recreation is the first to suffer. It's something that each of us—in one way or another—has experienced. But it raises a crucial question:Why is parks and recreation regarded as such an acceptable casualty? Our contributions to society are no less important than those of other municipal services:education, transportation,fire and rescue.Yet our power to shape Americans'quality of life,to foster community purpose and sense of place is so much greater. For decades,parks and recreation has been viewed as a liability,the costs to cities and towns in terms of planning, development and maintenance deemed overwhelming and often difficult to justify. But the truth is that parks pay. For not only do parks and open space contribute to economic development and revitalization, regional tourism, and landscape aesthetic, they also help to define the unique char- acteristics and sense of place of many of our nation's most celebrated spaces. The primary focus of this publication is not the contribution of parks to lowering levels of obesity and • providing opportunities for active play—although the importance of those health-related outcomes certainly cannot be overlooked. Instead, the case studies featured throughout these pages examine what a vastly different place our country would be without its parks, open spaces,and public greens, its places of social congregation,community distinctiveness and neighborhood expression. This land is our land. What we choose to do with it is up to us. John Thorner, CAE Executive Director National Recreation and Park Association • if Econorric Development and RevitalIzatioll Cities and towns grow stronger—and smarter—when parks and open space are a vital component of the I I i overall vision. Coined the Garage Mahal by the Wall Street Journar, Boston's Norman B-Leventhal Park at Post Office Square is a tribute to urban design simplicity and the positive effect that parkland can have on downtown economic viability Privately owned and operat- ed by the Friends of Post Office Square Trust, the 17-acre park sits atop a 1,400-car parking garage that previously served as the main focal point along Congress and Pearl streets in Boston's financial district. Once an eyesore, the garage is now buried underground, the result of a $50 million loan from the Bank of New England and the sale of parking rights in the garage.The garage generates some$12 million a year,and the tax windfall for the city, in return, is $1.5 million annually. Boston Parks Commissioner Antonia M. Pollak calls the park "a shining example of how municipalities can work with the private sector to create successful new parks in y a congested environment." The park has turned what was once a gritty aboveground parking garage, she continues, "into a graceful swath of green that attracts a thriving lunchtime crowd—as well as scores of couples who use the beauty of the park as a backdrop for their wedding photos." The greenery of the park proves a striking contrast to its surrounding urban landscape. Filled with a sculpture garden,more than 125 varieties of plants and trees,and a cafe-- and flanked by the tour-star Langham Hotel—the setting is an oasis for harried com- muters,shoppers grabbing a quick lunch and exhausted tourists searching for a place to Plop up their feet.The design of the underground garage is such that it necessitates car Boston's Park at Post Office Square hansfurmed an owners to pass through the park, thus creating nearly constant foot traffic and activity unsightly ahovegrourid parking garage into a 1.7-acre Park teeming with acttviry, "This park has not only won numerous planning and architecture awards,"Pollak con- tinues, "it has won over legions of city shoppers, workers, residents, businesspeople and visitors who enjoy it throughout the seasons_From its graceful trellis and lush plantings to its cafe and free wireless Internet service, Post Office Square stands as a model for urban planners everywhere." Boston real-estate agents contend that lease rates for office space facing the park command a 10 percent premium over offices in the same building without a park view-And while buildings located a few blocks from the park attracted the high- st lease rates before the park's arrival, today that distinction goes to those buildings directly adjacent to Post Office Square. oes the Langham charge more for its rooms that front the park? No, but employees maintain that those rooms enjoy a greater occupancy rate. i Instead of starting from scratch, more and - • The votes have been counted,and citizens have expressed their opin- more cities are revitalizing brownfields,aban- ions that the preservation of open space and the creation of new parks make doned parcels of land that were previously sense for revitalizing towns, supporting local economies and growing real- used for industry, into showcase parks and trails.By reinvesting in these properties,cities estate values. In 2002, a study of registered Illinois voters by the Rockford are able to mitigate the effects of pursuing Park District revealed that 75 percent of the slate's residents believe that and purchasing new land farther outside their parks and open space help to improve property values'_ urban boundaries, thereby lessening the dam- age perpetrated by suburban sprawl. • Also that year, in New Hampshire, 29 communities considered pro- Thanks to the help of a number of posed bond issues that would fund land-conservation projects- Most national and local partners, the Woonasttuatucket River Greenway project of the communities voted in favor of the proposals, many passing by in Providence, R.I., is transforming a large majorities', former railyard into afour-mile series of linear parks and:a six-mile-bike trail. • According to the Trust for Public Land, in November 2004, American In Denver,city residents bike, walk and voters approved nearly 80 percent of the conservation-finance meal- skate to 20=acre.Commons Park,wtlfib;its tires placed before them. In 1 i 1 communities, voters passed ballot on land that was once-an industrial waste area. Part measures that would create S 11 billion in public funding, :of former Denver Mayors 82.4 billion WetiingtonWebb's vision for a revitalized -- Of which was earmarked for preserving parks and open space'. Central:Platte Valley, the park isnawahe centerpiece of one of the city'snewest • A May 2000 "Californians and the Environment" survey, conducted mixed-use neighborhoods. by the Public Policy Institute of California and the David and Lucile Officials have proclaimed Olympic Packard Foundation, revealed that 57 percent of the slate's residents Sculpture Park,:just north of Seattle's renowned Pike Place,supported using public funding to buy undeveloped land to protect it new green heart!The etight eight-acre eity's from development'. waterfront sculpture garden,which will occupy a.former petroleum-refinement A new park project in Chicago,the 24.5-acre Millennium Park,is helpingsite,will allow residents to experience art •: to revitalize the city's lakefront in much the same way the Park at Post Off ice - outdoors while providing much-needed Parkland for downtown Square helped to change Boston.Mayor Richard Daley relied heavily upon area >Seaftle. business leaders and philanthropists to fund Michigan Avenue's new green digs, ultimately raising S205 million from private and corporate donors to complete the project - - --- Opened in July 2004,the park,which occupies land that previously housed an unsightly rail yard, fea- tures a sunken theatre, outdoor sculpture, parking to accommodate 300 bicycles, a skating rink and a Frank Gehry-designed concert pavilion, where clas- sical-music aficionados can listen free of charge. "It's a wonderful project," says Mary Eysenbach, director of the City Parks Forum at the American Planning Association, whose offices sit a block from the park. "What 1 enjoy most is that it raises the bar for parks in the publics eye. I love to see visitors go back to their hometowns and ask, 'Hey, why don't we have better parks?'Millennium Park is truly an extension of Mayor Daley's program of creating a people-friendly city—and a declaration that parks matter" Chi go's MiAennium Park,with its Frank Gehry desigried pavilion.relkctive scUpture and abundant bicycle Proves the Windy City can still"tNnk big.' 2 C. a , ..,.," r:. Economic Development and Revitalization If there existed any doubt, Millennium Park rightly seats Daley among 4t 371r, rve4 jr�i #t� the nation's exemplary "green" mayors,including Boston's Tom Menino and Pittsburgh's Tom Murphy, who has realigned his city's riverfront from a choking eyesore of dilapidated industrial sites into a linear recre- ational nirvana for cyclists and joggers. In contrast to Chicago's nearly 12,000 acres of municipal,national,state and county parkland, tiny Millennium Park is a drop in the bucket. But the effort—and resulting costs—involved in pulling off the park,which was initially to be finished four years earlier, was monumental. Still, most agree that converting this highly visible and accessible location into a green urban oasis was a move that will greatly benefit the city and its residents. - "It provides a big ego boost to Chicago in that it shows the city can still 'think big,"' says Brent Ryan, of the University of Illinois at Chicago's City Design Center. "Chicagoans have a lot of civic pride,and no one is unhappy about seeing a big,new civic monument open up—even if the cost was high. Positioning the city at the forefront of 'green thinking' totally reshapes Chicago's old industrial image and recasts the city in the eyes of the nation_" Milemium Park provides a striking contrast to its urban surroundings. - - - - Few Chicagoans--even groups "Chicagoans have a rot such as the local Neighborhood Capital Budget Group,which argued the project was too v . expensive-can deny the positive impact that the undertaking has had on the city.For Mayor Civic p;"ide, and n0 one Daley,who understands the connection between parks and economic development,defend- Is unhappy about SPPIn^ ing green projects of such scope is elementary.The investment in bringing Millennium Park a bi, new cAllic to fruition will inspire millions of dollars in private investment to advance Chicago's down- monUtprent over) UP-' town revitalization. Fb'en If tr"e cn5t bVas h!uiI, 'Just like Central Park defines an area of Manhattan," says Eysenbach, "Millennium Park is Pvs!tioniny Y')e a yi-at tote creating an identity for its downtown area The park has already stimulated residential devel- opment around its boundaries, and property values in that area are higher than they are in i0(P,lr)/I` p/ ,`-vr P`"l' blocks removed from the park." ',.. think;ng,totail'l f2Sh,3peS ClltcaQ:.0 , All across America, cities and towns have woken up to the fact that making healthy - _- O c � O'JStTlai allowances for parks and open space pays handsome dividends: in citizen access to recre- ation,in preservation of regional character and in economic development.In San Francisco, ciii,in the gve,5 ,of the a study by the East Bay Regional Park District, the agency responsible for maintaining more nation. than 95,000 acres of green space on the eastern side of San Francisco Bay, revealed that park users spend approximately $250 million annually at area retail operations on goods ^r a_ r ::+U such as bikes,clothing, food, lodging, and equipment rentals'_ a «_.,. Parks and open space are essential components for communities looking to revitalize down- town districts and strengthen local economies. According to William Poole, editor of the Trust for Public Lands Land&.People magazine, "Nationwide,easy access to parks and open space has become a new measure Of community wealth—an important way to attract businesses and residents." Indeed, in today's knowledge economy, quality of life—including ample recreational and cultural opportunities and abundant •parks,trails and open space—is a crucial part of the equation that influences businesses' relocation decisions and retains a tal- ented workforce. r"., ... .tea ... ` The town of Boulder, Colo., was X, one of the first in the nation to realize the necessity to plan for `` - future preservation of open space { because of what it would mean to sustained regional character and a high quality of life.In 1967, the res- idents of this outdoorsy college town (home to the 29,000-student University of Colorado),which sits at the base of the Rocky Mountains, passed a 0.4 percent sales tax increase that would be used to acquire and maintain a greenbelt of open space surrounding the city. Today,thanks to their proactive fore- bears,the residents of Boulder—and visitors from around the world-- enjoy some 40,000 acres of pristine Residents m Boulder.Colo.,approved a Saks tax to preserve a generous swath of parkland and open space and a Men space surrounding the town, Paved pathway that snakes through the heart of downtown-. • - But Boulder's bullishness on preserving open space took shape long before the mid-'60s. "At the turn of the century,"says Mark Gershman, an environmental planner with the city's department of Open Space and Mountain Parks, "Frederick Law Olmsted Jr was touring the country in the City Beautiful days, and he made some recommendations about the protection of Boulder's backdrop, so the town had a kind of template for scenic protection. The commitment to preserving the striking aesthetic beau- ty of Boulder has been a very long-term effort." This determination to maintain parks and open space has made Boulder a mecca for outdoor-s itsenthusiasts recreationalists alike,and attracts nearly 4 million visitors eve for eatsay and passive every year.It's also aquality-oi-life issue for residents,says Gershman, when they can spend their lunch hour rock-climbing or running. In the past few years alone, Men's/oumal has recognized Boulder as one of its "Best Overall Places to Live,"and USA Today gave it top billing on its list of the nation's "50 Healthiest Places to Live "A lot of people want to live in Boulder," says Gershman, "because of the open space and parks, and the opportunities for getting out of a congested urban environment." And,he adds, "it's far less expensive to maintain open space than it is to pave and plow -$I!/[?;Pc IP'-Pdr'','7dt f7rr�pP/PIPS streets and provide schools and other municipal services.By design,we don't have those J!tj"C'Eni tJ%^Pc!!�DPr;_cF%gCP infrastructure costs." JrPd� -ri Boiikk-' _re In.'p;fit 32 Boulder is not alone in turning to parks, recreation and open space as a way to �P!((I ,, rni,rr f"„ 'rl9SP d simultaneously emphasize livability and stimulate economic activity-It's a lesson that the ,^01P "200 f0 ` !A,dy, city of Indianapolis followed when announcing plans for its proposed Cultural Trail,a six- mile linear park that will run through the heart of the city,commandeering existing traffic lanes to connect its five cultural dis- tricts_" Public art and interpretive signage will pepper the trail. Officials are hoping that it will go a long way in helping Indianapolis to distinguish itself from other metropolitan areas, and make the city a draw for tourists and new residents and businesses alike. 4 Economic Development and Revitalization • Brian Payne,president of the Indianapolis Foundation, a leading partner on the project,says the trail is the element that could finally put his city on the map. "It's the tipping point," says Payne. "It's why people will extend their conventions for a few days or take a three-day trip tO Indianapolis.We think the Cultural Trail will be the closer, the piece that will connect everything." The concept of connectivity,says Payne, is what makes the Cultural Trail such a unique concept- "Cities that are still concerned with simply laying down a number of miles are missing the point," says Payne. "It's the interesting and useful things you con- nect to that make a huge difference in a community. It's what makes a city an exciting place to live in or visit, and what differ- entiates it from other cities." When completed (in fall 2008, if all goes as planned), the Cultural Trail will become the downtown hub for the city's entire greenway master plan, a network that will not only allow visitors access to the vibrant Indianapolis arts and cultural s(ene, but that will also become an integral part of the city's appeal to business and the nation's mobile workforce. 3`eCret that homes located-near traits••andparks command higher selling.prfces than thoselarther-'away,For fristdj*between 1996 and 2000,single-family homes in the vicinity of Brooklyrrs prospect Park werefetching+prices 3 *41!ef)t to 600 percent higher than comparable homes farther from the park,"`Real=estate-agents ctmstantly find tlt$tvluality-of Iffe amenities,such as trails and greenways, located near properties they are selling make their jobs mugh.easier. • )kitud'y-.of Denver-area real-estate agents revealed that 73 percent of the agents queried believed.that'properties adjacent to or within one block of a trail would sell faster and fetch higher prices than equWaI It roper ties f�Fiher--,away from the trail,' • A'Kcrinflilg to a 199E study.by.American Lives,a.research firm that studies developments Ili real-estate industry, YVatfllu�andbiking,paths" ranked tfiird,followmy"tow traffic andquiet streets and"lots of natural open ' F ',ampng features that Nome buyer identdied as;crueial in influencing their home-purchasfeg:decisions." c. Ahn k Ctogfpion reports that, campared`with properties some distanceawa from a= .u'tto areas of*passive recreationarelikely to command a 20percent premium.'• -Park,properties - • A'studyby.the Seattle Engineering Department, Office for Planning round thatproperTy near the popular Burke Oilman Ttailis significantlyeaster to sell and sells for an average of 6 percent more.^ I IS • "Quality of life is not only important in relocation, expansion, or initiation decisions, it is also important in empldyete retention and has an economic bottom line.Clearly, the elements that'differentlate one jurisdiction from another are increasingly related to what a.community can offer in quality of life:If a community commits to a longternt comprehensive plan to enhance the factors that it can control that positively influence the quality of life,it is likely to have an advantage over other places when recruiting and retaining business.", John L. Crompton Parks.and Economic Development • Quality of life for employees was the third most important factor in locating a business,according to an annual survey of chief executives conducted by Cushman and Wakefield in 1989." • Greenways, open space and trail networks present visitors with natural places to play—while stimulating small business and enhancing tourism Opportunities for communities. "Loudoun County has already gained national recog- nition for the W&OD trail and its beautiful rolling hills, horse-farm country, and historic towns and villages. Bicycle tourism is part of the county economy and should become a focus of the county's tourism strat- egy. Bicycle and pedestrian access to local markets is good for business, particularly in Loudoun County's historic towns and villages-" The previous passage is from the 2003 "Loudoun County Bicycle and Pedestrian Mobility Master Plan,"S0 an 11-page -}. document detailing the economic, health and tourism bene- fits of Virginia's W&OD Trail, or Washington and Old Dominion Railroad Regional Park, a 45-mile rail-trail project that connects rural northern Virginia with downtown Millions N Alexandria,just outside of Washington, D.C. peaple waEc,bike and inline skate—and pavauze bailside businesses--along Virginia's popular w&o6 Trait. On any given Saturday from March to October, the trail buzzes with thousands of Lycra-clad cyclists, moms and dads with baby joggers, runners and inline skaters. Its path takes enthusiasts from the idyllic horse country of Purcellville to the urban waterfront of Alexandria,winding through historical towns,office parks and pastoral settings along the way.Annually, some 3 million people bike, skate and walk the trail-31 Outside of Leesburg, along the pathway's western-most stops, a slew of trail-dependent businesses now dots the W&OD, including restaurants, antiques shops, biking and running stores, and cafes. The trail was one of the primary reasons that Mike Pomata decided to take his full-service cycling store, PedalShop,from a solely Web-based e-commerce operation to a bricks-and-mortar retail business, and open up within 100 yards of the trail. "I get a lot of traffic from the W&OD," says Pomata, indicative of other small-business owners in the vicinity. "I won't say it completely made my decision, but you can't beat the location. I get customers from all over the region." As the headlines highlighting Americans' ever-widening waistlines, the disadvantages of suburban sprawl, and our dependence on the automobile continue to permeate the national news media, park commissioners and city planners are realizing that to combat such issues, it makes sense to begin working physical activity seamlessly into citizens' daily rituals. In other words, make parks and trails support the way we live. From this perspective,biking and walking paths and linear parks are no longer seen simply as asphalt ribbons edging the outskirts • of a housing development or urban center. Instead, trails are now being considered—and implemented—for their functional value, their ability to get citizens from the front door to the bookstore to the farmers market and back home again. Not only do these trails make recreation more accessible,thus contributing to participants'shrinking dress sizes,they're also a potential wind- fall for business owners—and a draw for visitors. Regional Tourism The case studies illustrating the positive impact that a popular trail can have on a region are abundant: • • More than 70 percent of the 400,000 visitors who used Ontario's popular Bruce Trail between July 1994 and July 1995 reported that the trail was their primary reason for visiting the area. Of those respondents, more than one-quarter com- bined their trail visit with at least one night's stay away from home. • A study of Pennsylvania's Oil Creek State Park Trail revealed that trail users contribute nearly$Z million a year to the local economy" The Virginia Creeper National Recreation Trail is a,.34,mile rail-trail that winds through southwestern Virginia, from Abingdon to the slate's border with neighboring North Carolina. When lagging profits forced the abandonment of the local railway operation in the 1970s,the towns of Abingdon and Damascus purchased the railroad right of way to develop the walk- ing and biking trail. Today, according to a recent study by the USDA Forest Service, some 150,000 visitors use the Virginia Creeper Trail annually, more than half of them from outside the local region" "A lot of people use this trail as a vacation destination," says Ursula Lemanski, project manager at the National Park Service's Rivers &Trails program, which consulted on the trail survey. "People come from all over the country, and they're staying at local bed and breakfasts, buying food and gasoline, maybe even renting a bike. And that's all money that's coming into the local economy from outside the region." Steve Galyean,director of tourism for the town of Abingdon, acknowledges the benefit the trail provides to the local econo- my. "Before the Creeper Trail," says Galyean, "the Barter Theater was the only reason people came to Abingdon," referring to Virginia's state theater,a local cultural institution. "Now,people come for a three-day weekend,and combine using the trail for a hike or bike ride with a show at the theater. It's given the area an enormous additional component of attraction." • The trail has also contributed keenly to new business growth in Abingdon and other trail side towns. "Over the past five years," says Galyean, "thanks to the trail,Abingdon has _oqy C0n_,idei00 "'e anchor" seen about six new bed and breakfasts and a new bike and shuttle-service shop open. And Damascus, 14 miles down the trail, has seen a dramatic increase in the growth of ' 56' Anton`J'5 outfitter businesses over the past few years." act ., l; rr, ,^,f1;,P jf;, ;. 7i;Cjf�, And while not everyone took immediately to the idea of the rail-trail, residents now con- Cr �r'C' j7i{r�%'4VtiiK sider the Creeper Trail a source of local pride— cane that makes good economic sense for the _%—and;7105i - ^brf371: the region.Because the trail passes through one of Abingdon's most prestigious neighbor- hoods, Galyean says there was some trepidation from residents about their proximity to (uttr'�` `"f`r"`t'"ri "' "'`'`f``, the trail. But now, he claims, because of the positive effect it's had on real-estate values, Tph- "people clamor to get lots near the Creeper Trail.It's been a 180-degree turnaround." In 1969.Chattanooga,Tenn.,received a dubious distinction.A Department of Health,Education,and Welfare air-quality sur- vey designated the city as having the most polluted air in the nation. "It was so bad," says one Chattanooga native, "soot would puff from beneath your shoes when you walked down the street." But air quality was far from Chattanooga's only problem.The city's heavy manufacturing sector bled thousands of jobs as fac- tories were forced to shut down. Citizens fled to the suburbs to escape the deterioration,leaving downtown in a state of ter- rific decline. "We were," says Ann Coulter,executive vice president of the nonprofit RiverCity Company, a major player in the city's ultimate revitalization, "a community that had begun to lose faith and interest in itself." In retrospect, the air-quality report may have been the best thing to happen to this town of 150,000 that sits hard along the Tennessee River, sidled up against the Great Smoky Mountains. That study, Coulter recalls, "helped people to realize I hat you could actually make a place unlivable.Our downtown was in decline,our school system was nothing to brag about nd our economic forecast was not especially positive. But unlivable is not something that most communities are forced to Irve with." Regional Tourism The bad news was a wake-up call for the city. Representatives from all sec- tors of life in Chattanooga—business leaders, nonprofit organizations, municipal government and citizens—came together to turn their city around. In the late 1970s and early'80s, people began asking hard ques- tions and exploring the answers: How do we determine our own future? And where do we want to go? From this public-private exploration came the Tennessee Riverpark Masterplan, a long-term strategy that would focus on the Tennessee river- front as the source of revitalization for Chattanooga's ailing downtown. The plan called for housing and mixed-use development along the river,but a green renaissance was central to the design, placing great emphasis on the Tennessee Riverpark,a 12-mile-long linear park accentuated by walking and biking traits,open space, pavilions, fishing piers,and playgrounds. That parks and green space were fundamental to Chattanooga's down- town revitalization efforts is no surprise to Jim Wigley,facilities superintend- ent for the Riverpark.In fact,says Wigley,who witnesses thousands of peo- ple enjoying the trails and parks daily,the praise that the first phase of the Riverpark generated from citizens and visitors is one of the primary factors in maintaining interest in continued revitalization. "It's like the ball is rolling so fast now,it's hard to keep up with it.A lot of people knew the river was there, but the only time they would see it was when they were crossing it The hall-mile-fong Walnut Street Bridge,flue wodd's longest pedestrian on one of the bridges. The Riverpark really has been a tremendous source offers walkers slreetacular views of Coolidge Park arid the Riverpark of community pride for Chattanooga." Chattanooga City Council Chairman Jack Benson believes the Riverpark has not yet reached its full potential in Chattanooga. "It's an incredible investment,"says Benson. "It's going to bring in much more than it cost to create it We are truly going through a renaissance-" In addition to the network of trails and parks that winds along the river,crossing the pedestrian-only Walnut Street Bridge,other amenities, such as the Tennessee Aquarium, IMAX theater and children's Creative Discovery Museum, located in the heart of downtown, are enormous tourist draws that also hold great appeal for city residents. The aquarium alone attracts 1 million vis- itors every year. Annually, 4 million visitors come to enjoy Chattanooga's revitalized green downtown, pumping $545 million into the city's tourism coffers,a booming year-round industry that employs 7.320 people.From 1993 to 2002,overall downtown employment rates rose 38 percent, an increase of 12.807. During that same period, property appraisal values in downtown Chattanooga increased by 31 percent.'• "We first wanted to make Chattanooga a great place for ourselves,"says Coulter, "and when you do that,you also make your- self a great place for people to come visit. Now we've got both-The impact we've seen from tourism is almost immeasurable-" Wigley agrees, adding that the Riverpark and the city's overall revitalization have tied together the entire community—not just Chattanooga, but the surrounding tri-state area as well. "We have people here every day from Alabama and Georgia," says Wigley. "The whole region has benefited from what we've done." • Endnotes ' William M. Bulkeley, "Call It Garage Mahal: Lowly Parking Area Becomes Attraction," The Wall Street Journal, July 18, 1994_ ' Richard Day and Associates, survey performed for Illinois Association of Park Districts Research Advisory Council, 2002. ' University of New Hampshire Cooperative Extension, "Citizen Attitudes about Preserving Open Space: Results from Surveys in Twelve New Hampshire Towns," 2003, ' Trust for Public Land, "Voters Approve $3.25 Billion in Open Space Funding," Nov 4, 2004. ' Public Policy Institute of California, "State's Environmental Problems Pose Serious Personal Threat, Residents Say," June 21, 2000. ' East Bay Regional Park District, 'Regional Economic Analysis(Trends, Year 2000&Beyond),'"Nov. 1, 20oo. ' Steve Lerner and William Poole, "The Economic Benefits of Parks and Open Space," The Trust for Public Land, 1999. City of Boulder Open Space&Mountain Parks. ' Men's Journal, "Best Overall Places to Live," May 2003. '°USA Today, "America's 5o Healthiest Places to Live," 2002. "National Park Service, "Economic Impacts of Protecting Rivers,Trails,and Greenway Corridors:A Resource Book," Rivers and Trails Conservation Assistance,4th Ed., 1995. "Ross Atkin, "Happy Trails," Christian Science Monitor,Nov. 19, 2003. "Anne Schwartz, "How Park Improvements Affect Community Real Estate Values," Gotham Gazette,July 2003. The Conservation Fund and Colorado State Parks, State Trails Program, "The Effect of Greenways on Property Values and Public Safety," 1995. "Alexander Garvin and Gayle Berens, Urban Parks and Open Space, Urban Land Institute, 1997, "John L.Crompton, "The Impact of Parks on Property Values:A Review of the Empirical Evidence,"Journal of Leisure Research, Vol. 33, No 1,2001. "lames G.Carlson, "Utilizing Irrigation Canals in Northern Utah for Recreational Trail Use:An Evaluation of Issues and Concerns," American Trails,2000. "John L. Crompton, from the foreword, Parks and Economic Development,American Planning Association, 2001. "National Park Service, 1995, Loudoun County Bicycle and Pedestrian Mobility Master Plan, Loudoun County, Va_, Oct. 20, 2003. "Friends of the Washington and Old Dominion Trail. • "Bruce Trail Association, "30 Years in the Making:A Comprehensive Economic Impact and User Study of the Bruce Trail, Ontario, Canada," 1997. 10 1`.Al- 3 .i i..;-.„ Endnotes "B.F. Lord and C. H. Strauss, "The Economic Significance of Bicyclists in Oil Creek State Park Within Crawford and Venango • Counties," Pennsylvania State University, 1992, "USDA Forest Service and University of Georgia, "The Virginia Creeper Trail:An Assessment of User Demographics, Preferences,and Economics," Dec.8,2004. "National Park Service, 1995, "Community Research Council(produced for RiverCity Company), "Chattanooga Annual Downtown Report," Jan. 2003, • e.; r A" At, About NRPA The National Recreation and Park Association is a national nonprofit organization dedicated to advancing park, recreation and conservation s� efforts that enhance quality of life for all people. Through its network of nearly 19,000 recreation and park professionals and citizens; NRPA encourages the promotion of healthy lifestyles, recreation initiatives, and r*?; conservation of natural and cultural resources. MW 4 Tye; Headquartered in Ashburn, Va., NRPA works closely with local, state and '�A national recreation and park agencies, citizen groups and corporations to �r ', E� carry out its objectives.Priorities include advocating favorable legislation and public policy;continuing education for park and recreation ' professionals and citizens; providing professional certification, university accreditation, research and technical assistance; and increasing public awareness of the importance of parks and recreation. For more ff information,visit www.nrpa.orq. 0 National Recreation and Park Association 22477 3c1mnn; pir'gc. Rc,,' Asbb:;rn, Vt 2U128-4''01 701858.0784 r,:"- 70s 81A.0794 .::ww.rtrpa.¢inr