The URL can be used to link to this page

Home My WebLink AboutCOUNCIL - AGENDA ITEM - 03/23/2010 - RESOURCING OUR FUTURE DATE: March 23, 2010 STAFF: Darin Atteberry WORK SESSION ITEM Mike Freeman FORT COLLINS CITY COUNCIL Pre-taped staff presentation: available at fcgov.com/clerWagendas.php SUBJECT FOR DISCUSSION Resourcing Our Future. EXECUTIVE SUMMARY The City of Fort Collins has pressing, immediate needs and a long-term vision for a stronger, sustainable community. Over the last five years,the City has eliminated lower-priority services and aggressively pursued ways to make our local government more efficient. We have cut nearly$24 million of planned and existing expenses, including eliminating more than 140 jobs. The City has implemented ongoing systems and tools to ensure that our local government is transparent and accountable to the taxpayers of Fort Collins for the long-term. The commitment to cost-effective government is a permanent way of doing business. We will systematically seek new and improved ways of delivering service with the least amount of resources. Despite these efforts,City revenues are not keeping pace with the demand for basic City operations and services. Fort Collins' current City sales tax rate is the second lowest among comparable Front Range cities and our base sales tax rate has not been changed for almost 30 years. Staff has identified$16.2 million in immediate needs to maintain services in Police,Fire,streets maintenance, parks maintenance, and recreation—basic services the City provides. The Fort Collins community has the choice of either supporting additional resources or continuing to face significant further reductions in services in light of stagnating City revenues. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does City Council have adequate information about the City's operating needs and the revenue options? 2. Does City Council want to proceed with the community dialogue about Resourcing Our Future? If yes, are there preferred alternatives Council wishes to explore during the dialogue? March 23, 2010 Page 2 BACKGROUND / DISCUSSION Staff has identified and thoroughly documented the immediate needs for additional resources in the following four key areas of the city government. Following is a summary of these needs. Police Services - additional 48 officers and civilians needed to provide the level of service expected by the community Cost: approximately $4.6 million per year ongoing costs; $5.5 million first year Impact to the community: • maintain minimum staffing levels for basic police protection and dispatch • more neighborhood patrolling • more party and noise enforcement • coverage at special events • larger police presence downtown • increased traffic patrol in neighborhoods • shorter response times • shorter investigation turnaround times Additional resources would be used for: • 20 Officers for Patrol • 13 Officers for Detectives • 15 Civilian positions, including 5 dispatchers • Upgrade 3 part-time positions to full-time Poudre Fire Authority-more firefighters and other resources needed to serve growing demands in south Fort Collins, as well as enhanced Emergency Management Cost: approximately $3.1 million per year Impact to the community: • Maintain minimum staffing • Improve firefighter safety through better safety oversight and emergency coordination • Improve emergency scene management to better protect citizens and their property and businesses • Provide increased ability to respond to simultaneous alarms • Reduce/improve response times • Keep fire companies in position for quicker response • Enhanced training and knowledge management • Increase the coordination, capability and quality of deliverable services by the City of Fort Collins to its citizens through preparedness,mitigation,response and recovery for threats and disasters that affect our community. March 23, 2010 Page 3 Additional resources would be used for: • Four Firefighters and Half-time Code Inspector • Maintenance at Stations 1 - 4 • South Battalion - 4 firefighter positions and promoting 3 captains to chiefs • Increase staff from three to four firefighters at four outlying stations - 15 positions • Training staff and Information Technology staff- 2 positions • Non-Personnel O&M Increase • Uniforms and bunker gear, firefighting tools, insurance, and Training Academy • Emergency Management Enhancement- 1 position Transportation - additional resources needed to improve the City's transportation system, maintain streets, fill potholes and make basic repairs. Cost: approximately$6.5 million annually for pavement maintenance,.in order to maintain current pavement quality standards. Impact to community: • Roads and bridges are deteriorating,making repairs more expensive later.Replacement costs that will result from delaying ongoing repairs will be an order of magnitude greater. • Overall pavement conditions are deteriorating;more potholes are prevalent. Current funding for pavement management has been reduced in recent years. • With the current funding available in transportation, there are severe limitations to meet citizens' desires for safer streets and neighborhoods. • Inability to replace capital equipment has meant fewer snow plow trucks on the road and more breakdowns, affecting ability to effectively clear major and secondary roads. This cost does not include resources to meet other pressing needs, such as: • Bridges (repair and replacement) • New roads, interchanges and other capital improvements • Improvements in safety at school zones and neighborhood traffic calming • New bike lanes and sidewalks • Transit service March 23, 2010 Page 4 Parks and Recreation—additional resources for parks maintenance and to preserve recreation services. Cost: approximately$2 million per year($1 million for parks maintenance and$1 million for recreation). Impact to community: • Overall parks are beginning to deteriorate; additional resources are needed to keep parks clean and well-maintained • If General Fund support for Recreation is not restored, service levels will be severely impacted. Either a major facility,like the Senior Center or the Northside Atzlan Center,will need to close entirely,or staffing and programming will need to be drastically cut and hours of operation at facilities dramatically reduced. Cuts would have to be made to programs for lower income residents because these programs receive the greatest General Fund support. Additional resources would be used for: • Restore the quality of parks maintenance to past levels • Fund infrastructure repair and replacement(i.e.,playground equipment,courts,parking lots, restrooms and shelters) • Increase sustainability (i.e., converting to raw water irrigation) • Fund maintenance of five new neighborhood parks and a new community park (cost: $560,000). • Preserve current Recreation service levels Proposed Community Dialogue Following is the proposed community dialogue process for gathering input from the community. PHASE 1: Information and Context—March/April 2010 • State of the City Address • Fcgov.com/resourcingourfuture • Columns in local newspapers • Speakers Bureau/community presentations • Cable 14 video re: data-driven organization PHASE 2: Community Conversation—April/May 2010 Key questions: • How do we as a community address the pressing needs in police, fire, transportation, parks and recreation? March 23, 2010 Page 5 • Do we cut more services? If so, where? • Do we pursue new resources? If so, which option? PHASE 3: Report Back to City Council Next Steps—June 2010 2010 Election Timeframe • July 20 Deadline for City Council to consider an ordinance calling a Special Election for November 2nd • August 17 Second Reading of the-ordinance calling the Special Election • August 17 Resolution referring measure to the ballot • November 2 Election Day ATTACHMENTS 1. Powerpoint presentation ATTACHMENT 1 Resourcing Our Future City Council Work Session March 23 , 2010 opt Collins 1 Questions for City Council • Does City Council have adequate information about the City ' s operating needs and the revenue options ? • Does City Council want to proceed with the community dialogue about Resourcing Our Future ? If yes , are there preferred alternatives you wish to explore during the dialogue ? Fort Collins 2 1 Presentation Agenda • Background — How we got here and what we've done • Overview of the needs — Police Services — Poudre Fire Authority — Transportation — Streets Maintenance — Parks and Recreation • Revenue options to consider • Community Dialogue Process • Election Timeline • Closing & Discussion City or Fort 3 How Did We Get Here ? What We ' ve Done `mt Collin 4 2 How Did We Get Here ? • Post 9 - 11 economic downturn — Significant primary employment reductions • Regional retail competition increases • Internet sales increase • Foothills Mall decline • 2008/2009 economic downturn — Retail closures/bankruptcies — Development activity slows • City seeks efficiencies and reduces spending Fort Collins 5 2009 Net Revenue — Governmental Funds ( Compared with 2008 Collections) • Down $ 13 Million — 8 % — Sales & Use Tax — Investment Earnings — Building Permits and Development Fees — Transportation revenue ory of Fort�lns 6 3 w $200 - Net Revenue mn Governmental Funds C O $180 $160 $140 $120 $100 $175 E174 $181 $80 $150 E162 $162 $150 E163 $168 $155 $60 $40 $20 $- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 'tollins 7 Does not include proceeds from debt financing (bonds, etc) Sales and Use Tax 2009 (Compared with 2008 Collections) • Combined down $4 . 8 million — 6 . 2 % — Sales tax down $ 2 . 5 million — 3 . 8 % — Use tax down $ 2 . 3 million — 20 . 3 % • Use tax the lowest since 1994 `mt Colllns 8 4 Sales & Use Taxes (all ) $90 0 $80 $70 $11 .5 - $13.2 _ $10.9 $14.3 $12.5 i $8.6 $60 $11.6 $11 .6 $11 .4 $50 - - - - $40 i i i $30 -$53.6 $56.9 - $56.6 - $56.3 - 558.2 - $59.6 - $63.4 - $64.4 $64.7 $62.2 $20 $10 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 In Sales Tax In Use Tax 9 Investment Earnings $25 c - 2009 Investment earnings down $6. 1 M (43%) compared to 2006 General Fund portion down $1 .7 million from 2007 to 2009 $20 $19.8 $16.9 $16.2 $16.6 $15 $14.2 $10 E10.1 $9.6 $8.1 $5.7 $5.1 $5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Ons 10 5 Building Permits and Development Review Fees m $2.5 c 5 0 $2 .0 $2 .0 $2.0 - $2.0 $2 .0 $ 1 .8 $1 .8 $1 .5 $1 .5 $1 .0 $0.8 $0.5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 c yof Fort Collins 11 Property Taxes (including URA, GID) -crease of 7.2 n $18 To f.0 e $16.7 s $16 E 574.5 14.9 $14 512.1 512.5 $12 $10.3 510.5 $10 fe $6 $4 $2 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 12 6 We Can ' t Retail Our Way Out of This . . . `mot C Uns 13 Sales Tax = Year to Date change from Prior Year ( % ) 2.0% 1.0% 0.0% JrFeb. March NI May June July Aug. Sept. Oct. Nov. Dec. -1.0% -2 0% Likely Scenario : decline continues at 4% through April collections, 1 % growth the remaining 8 months, 3.0% and result in a budget shorfall of $1 .2 million -4.0% -5.0% — -6.0% t2008 t2008 +2010 `mt Colllns 14 7 Foothills Mall Net Taxable Retail Sales w f180 The mall would have generated $2.6 million in additional o sales tax revenue if it had kept pace with Citywide growth 5160 $140 $120 $70.8 Million Lea $100 $so $60 $40 - $20 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 aiAnchor aaniaAll Other Food & Beverage tCitywide Growth Projection City of ,,,Wq21h,ns 15 Regional Retail Shift • Historic Average ( Early & Mid 1990s ) - Leakage - 5 % - Inflow - 40 % • Current Leakage and Inflow (2008 ) - Leakage = 16 % - Inflow = 25 % • Net Effect - Increase in leakage of � 11 % - Decrease in inflow of - 15 % - Represents $ 11 . 3 million in sales tax revenue `mt CoUins 16 8 Total Local Sales Tax 4.5% 4.15% 4.00% 3.85% 4.0% 3.62% 3.48% 3.41% 3.48% 3.5% 3.00% 3.00% 3.00% 3.0% 2.50% 2.5% 2.0% 1 .5% 1 .0% 0.5% 0.0% 4e� PJ`011,ro`c`oc Oece` aaOoJ\ae` G`ee\ZA ��\cay000a oe�z, ci off` o\;`a yQ``c�9 �a �o G0 Gty of F�t_otl�s 17 RTD & RTA Impacts What We 've Done rpp.� ppp� HOUSE IN APPROPRI!T11 !RESOURCMINIG; ' ORDER ROLE IN THE OURFUTURE ECONOMY L: Eliminated lower-priority Creating jobs in target Pressing needs : services industries through : - Police • Cut nearly $24 million • Supporting start-ups - Fire of planned and existing and entrepreneurs - Transportation expenses - Parks & Recreation • Eliminated more than ' Business retention/ . Second lowest sales 140 city jobs expansion/attraction tax rate among • Implemented long-term • Economic Action Plan comparable cities operating efficiencies Fo�t�ins 18 9 Overview of the Needs `mot Collins 19 Summary : Resourcing our Future Pressing Needs — Police : $4 . 6M annually ($ 5 . 5M needed year one ) — Poudre Fire Authority : $ 3 . 2M annually — Transportation/streets maintenance : $ 6 . 5M annually* — Parks and Recreation : $2M annually *Does not include transit, bridges & capital projects ForYt� has 20 10 Police Services Additional Need : approximately $4 . 6 million per year ( $ 5 . 5 million needed in year one ) or1 Collins 21 Police Services Snapshot • 2010 Budget : $29 . 1 million — 80 % of the budget is personnel — Relatively flat budget since 2003 • 2010 Authorized Staffing : 260 . 45 • 2010 Sworn Staffing : 172 • 2010 Civilian Staffing : 88 . 45 Fort Collins 22 11 Sworn Police Officers Per Capita Z a 2 AVERAGE 1 .48 J a FORT COLLINS 1 .22 1 . 5 1 . 6 0 1 . 53 1.39 1 .22 0 z 1 w m Z . 5 0 `fty of t Collins 23 Response Time to Priority Calls - Police s 1 AVERAGE 4.0 6 FORT COLLINS 4.07 5.01 1 . 36 5 4 . 07 4 142 3.24 3 2 1 0 f - 71 `mt Collins 24 12 Police Services Background Information 2007 2008 2009 Number of Overtime Hours Paid 32 , 330 35 ,284 34 , 377 Cost of Overtime Paid $ 1 ,4495704 $ 19651 , 996 $ 136779507 Reasons for overtime : — Maintain minimum staffing levels — Community events — Crime investigations — Court appearances Font tti`s 25 Police Services Staffing Study • Conducted in 2007 and updated in 2009 — Included focus groups and citizen input • Indicates that 48 additional officers and civilian personnel are needed to provide the services our community needs and expects • Recommendations tailored to Fort Collins ' unique policing needs For., Yt� ins 26 13 Police Services Staffing Study Patrol Time Recommendations 2005-2006 2007-2008 Recommended 71 officers 74 officers Staffing 94 officers Average Patrol Time 1 ,426 hours 1 ,493 hours 1 , 917 hours Available per Week Average percent of time consumed by calls for 72 % 69% 58 % service , investigations & dedicated patrols Average percent of time available for 28% 31 % 42 % community-oriented and routine patrol tottins 27 Police Services Priority Needs Patrol Officer (20 positions) 2 , 055 , 340 Detectives ( 13 positions ) 11335 , 971 Police Dispatcher (5 positions) 305 ,785 Investigative Aide (5 positions) 3649600 Graffiti Abatement Coordinator 1position ) 665710 Police Report Specialist ( 1 position ) 65 ,946 Police Services Technician (3 positions ) 2449158 Victims Services Advocate . 75 upgrade) 365133 Restorative Justice Program Coordinator ( . 75 upgrade) 63 , 154 Restorative Justice Advocate ( 1 . 0 upgrade ) 489178 One Time Charges 1 1 , 075 , 233 Total Police (with one time) $ 556615208 Total Police Ongoing $ 4,585,975 Fort Collins 28 14 Impact to Community • More neighborhood patrolling • More party and noise enforcement • Larger police presence downtown • Increased traffic patrol in neighborhoods • Shorter response times • Shorter investigation turnaround times • Less overtime cost to maintain minimum staffing • Adequate staffing for community events Fort Collins 29 Poudre Fire Authority ( PFA) Additional Need : approximately $ 3 . 2 million per year ory of Fort�lns 30 15 PFA Snapshot • 2010 Budget: $21 . 9 million * • City of Fort Collins & Fire Authority District Contribution — 80% City $ 17 . 5 million — 20 % District $ 4 . 1 million — Ratio reflects assessed value & percent of calls • 2010 Authorized Staffing : 166 . 5 • 2010 Sworn Staffing : 151 • 2010 Civilian Staffing : 15 . 5 *Includes Capital and Debt Financing as well as other miscellaneous revenues at or Fortins 31 PFA Snapshot • Services Provided : — Emergency Responses — fires , rescues , medical emergencies , hazardous materials — Public Education — station/apparatus tours , fire extinguisher demos , car seat checks , fire drills , neighborhood events — Fire Prevention — inspections , building and planning review , sprinkler review , investigations , hazardous materials regulations • Strategic management system is citizen -centric , data- driven , and outcome- based Foryf� o lins 32 16 PFA Ten Year Call Trend 16000 14000 12000 - 10000 5000 6000 4000 2000 0 1999 2001 2003 2005 2007 2009 `mot Collins 33 Uniformed Fire Personnel Per Capita z 1 '6 AVERAGE 1 .08 1 .4 1 .2 PFA 0.88 0 1 .0 a 0 0 .8 0 .6 W 0 .4 0 .2 �'�oo Cl ty of FOf t lins 34 17 Uniformed Personnel Per Capital 1 .80 1 .70 1 .60 1 .50 • 1 .40 • y 1 .30 c 1 .20 w 1 .10 w 1 .00 a 0.90 w 0.80 £ 0.70 0.60 j 0.50 0.40 0.30 0.20 0.10 0.00 2004 2005 2006 2007 2008 ■ PFA ■ ICMA-100,000 - 249,999 ■ ICMA - Mountain ❑ ICMA-Central 35 Average Response Time - Fire 8 7 AVERAGE 5: 21 6 PFA 4: 14 N 5 W Z 4 3 2 1 0 `m of t Colllns 36 18 South Battalion Battalion Chief 8 Minute Emergency Response Target Battalion 2008 # Incidents Response # Incidents Area Response 2008 Times Thru Thru June 109 Times June 2009 North of 7 minutes 8 minutes Drake Road 28 seconds 262 5seconds 149 South of 9 minutes 11 minutes Drake Road 40 seconds 81 14 seconds 40 G" tins 37 PFA Background Information • City contribution to PFA has remained stable • Inflation and emergency calls have increased requiring budget cuts/reductions in service . Reduced four firefighter positions and a half-time code inspector position . Refilling these positions ($445 , 000 per year) is PFA' s most pressing need . Deferred capital investment and replacement Fore, Yt�li`5 38 19 Summary of PFA Priority Needs Poudre Fire Authority: Four Firefighters and Half-time Code Inspector 4455000 Maintenance at Stations 1 -4 30,000 South Battalion — 4 firefighter positions & promote 3 captains to Battalion Chiefs 4945000 Increase Staff from three to four firefighters — 15 positions 155835000 Uniforms and Bunker Gear, Firefighting Tools, Insurance, and Training Academy 3885300 Training and Information Technology Staff — 2 positions 229,500 Non-Personnel O&M Increase 309,000 Total PFA $ 31478,800 Emergency Management Enhancement — 1 position (all Fort Collins) 3905000 Total City Share $ 3,173,040 City or Fore t�`ins 39 Funding to Address PFA Needs • Request from City - $3 . 2 M per year • Fire District expected to hold a concurrent special election to generate their share - $ 700 , 000 • Positive conversations with Town of Timnath about providing their pro- rata share for Fire and EMS expenses Fort Y� llins 40 20 Impact to Community • Quicker response to emergencies • Reduce dollar loss caused by fires and other emergencies • Reduced insurance costs for residents and businesses • Maximize citizen and firefighter safety • Improve emergency scene management • Maintain adequate staffing • Increase ability to respond to simultaneous calls and large crisis situations Fort Collins 41 Transportation Additional Need : approximately $ 6 . 5 million per year for street maintenance ( does not include bridges , transit, & other capital ) Fort Collins 42 21 Budget Challenges : Shrinking Revenues AUTO SALES GASOLINE SALES VEHICLE & PARTS DEALER SALES FORT COLLINS COLORADO wo ° 22 .4% ` `y �; F8 t�ns 43 Budget Challenges : Shrinking Revenues • Currently Good Service Levels , but . . . — Falling Behind in Key Areas — The Greater the Gap , the Higher the Cost `mt Collins 44 22 Street Maintenance Snapshot • 2010 Budget : $ 7 . 1 M ( reduced from $ 9M since 2008 ) • 2010 Authorized Staffing : 5 . 0 FTE • 2007 Independent Audit identified additional funding needed by 2010 in order to keep streets in " Good " condition (adjusted to $6 . 5M to reflect 2009 reductions ) I Coll , ns 45 Street Maintenance : Good Roads Cost Less to Maintain x W 0 100 z Z 860 Excellent LOS A $1 M for 0 Good LOS B renovation here 0 70 Z 0 Fair LOS C U 55 Z Poor LOS D 2 40 $4.5M for w IRM renovation > ' here a a 0 5 YEARS 10 YEARS 15 YEARS 20 YEARS 25 YEARS ory of FOrt�Ir15 46 23 Current Pavement Conditions rw 0'0 EXCELLENT 111 POOR 1 ' 1 1 1 1 1 0/0 / VERY POOR (LOS F) `mot Collins 47 Road System Growth Growth in Fort Collins Road Miles 2000-2010 550 540 500 502 500 485 492 463 4 2 476 450 437 415 421 400 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 *Note: 2010 reflects addition of road miles from SW annexation crcYof t Colllns 48 24 Street Maintenance : Road Conditions Condition Number 75 = LOS " B" Good Condition Number 100 . .. = LOS °A" Excellent ULr F:� I . . . _ . . - \ 1 Fort Collins 49 Street Maintenance : Road Conditions Condition Number 60 Condition Number 45 = LOS "C Fair = LOS " D" Poor ` L 50 25 Street Maintenance Funding $10M r9M $8.4M $8M $7 9M s8.5M $6M $4M $2M L$.76M $.63M $•$8M 5.8M $.9M $0 2006 2007 2008 2009 2010 ■ Pavement Management Program ■ Other Street Maintenance `mot C fins 51 Future Street Condition Scenarios Average Pavement Condition Over Time 80 —x Infusion of S6.5 Million Annually LOS B (Target LOS) t Infusion of $5.5 Million Annually 75 +Infusion of $4.5 Million Annually +Current Budget 70 38 miles s 65 LOS C 35 Nea 0 33 tulles 60 a 20 mNas LEVEL OF SERVICE malnfalneO annually a 55 LOSA 35400 LOSB 70 - 95 50 TARGETLOS LOSC 55 - To LOS D LOSD 40 - 65 45 LOSF 0 -40 40 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 `tut Colllns 52 26 2007 Audit Recommendations 1 B _ N �« — Q C .Y O eZ - O She � > C C 2008 2009 2010 2011 2012 2013 2014 2015 2016 ,1, 17 Fiscal Year M Funding Needed to Maintain LOS B ann E)Pec*d Furdirg �Conditionat Funding Needed to Maimain LOS B � Condition at Eryected Funding Source: Applied Pavement Technology, Inc. Audit of Fort Collins any Pavement Management system (2007) Uns 53 Impact to the Community if Funded Proactive street maintenance will save millions of dollars over time Overall pavement conditions more likely to be maintained at a good condition Potholes , crack sealing and other ongoing street maintenance will be maintained at current levels Ongoing systematic street maintenance results in safer travel for cars , buses , bikes and pedestrians `mt qo lns 54 27 $ 6 . 5 Million Cost Does Not Include : • Bridges ( repair and replacement ) • New roads , interchanges and other capital improvements such as sidewalks • Traffic signal repair and replacement • Transit service • Replacement of aging fleet (e . g . snow plows ) Fort Collins 55 Bridges • 274 total bridges on the city street system • 32 Bridges are currently substandard • 50 bridges will be past their design service life of 50 years by 2013 ( 18 % ) Bridge Maintenance Funding : • Current Funding = $ 300 , 000 per year • Needed = Additional $ 700 , 000 per year to repair and replace aging bridges & crossings CI of Fort�ins 56 28 Unmet Capital Project Needs • Interchanges (e . g . 1 -25 & SH -392 , Prospect , Mulberry) — Fort Collins' share of SH-392 could be as much as $8M - 14M of $28M project — Key regional gateways into Fort Collins • Existing Deficient Roads & Intersections — Old Standards and Design ; Worn Out — Primarily City Responsibility — e . g . Vine & Lemay overpass and realign (�$23M )* • Horsetooth & McLelland/Mason intersection (—$4M )* • Widen East Prospect to four lanes (�$4M )* (*2004 cost estimates) ForYt�ins 57 Transit • Current Transfort service level funding declining — Federal dollars shifting to capital and away from operating expenses • Transfort Strategic Operating Plan adopted 2009 • Phase 1 of the Transit Master Plan is estimated at $ 3 . 3 million above current service operating and maintenance costs . Phase I includes : Additional and Improved east/west service Extension of service hours on selected routes For, Yt��ins 58 29 Impact to the Community if Funded • Repair and replacement of aging and deteriorating bridge will be systematically addressed • Capital funds could address key road & intersection improvements ; leverage partnership opportunities • Transit Service could be maintained and possibly expanded • Better meet citizens ' desires for quality streets and well -functioning transportation system Fort Collins 59 Parks and Recreation Need : $2 million per year ory of Fort�ins 60 30 Parks Department Snapshot • 2010 Budget : $ 6 . 5 Million • 2010 Staffing : 35 full time , 44 hourly • 2010 Revenue : — General Fund $4 , 834 , 826 — Conservation Trust $ 730 , 146 — Work for Others $ 368 , 486 — Fees $ 573 , 775 CLt Fort Collins 61 Parks Services • Maintain 750 acres of parkland in 44 parks located in every square mile of the community • Maintain 25 miles of recreational trails • Maintain 62 acres of streetscapes and medians • The cost to maintain an acre of parkland ( $ 5 , 404 ) is well below the regional average • The last 100 acres of parkland added to our park system are being maintained without additional General Fund support CI of Fort�ins 62 31 Parks Priority Needs • $ 1 Million needed to : — restore the quality of parks maintenance to past levels — fund infrastructure repair and replacement — increase sustainability — fund maintenance of five new neighborhood parks and a new community park • Since 2006 , parks funding has been cut by $440 , 000 ForYt�ins 63 Impact to Community • Restore historic parks service levels expected by the community. — control weeds , open community park restrooms year round , better trash removal and recycling , renovate medians , plant flower and shrub beds — replace worn out playground equipment, seal and resurface courts and parking lots , repair shelters , replace restroom fixtures — convert remaining treated water irrigation systems to untreated water systems • Maintain five new neighborhood parks and one community park Fore, Yt�llns 64 32 Recreation Department Snapshot • 2010 Budget : $ 6 . 9 Million • 2010 Staffing : 38 full time , 100 hourly • 2010 Recreation Revenue : -- General Fund $ 1 , 543 , 346 -- Fees $4 , 598 , 793 -- Reserves $ 742 , 884 ( $ 900 , 000 in 2011 ) Fort Collins 65 Recreation Services • Operate ten recreation facilities : Edora Pool & Ice Center ( EPIC ) , Senior Center , Northside Aztlan Center , The Farm , Mulberry Pool , City Park Pool , Youth Activity Center , Club Tico , Pottery Studio and Rolland Moore Racquet Center • More than 65 % of revenues from fees • Program participation in 2009 — 1 . 4 Million — Participants receiving reduced fees - 31 , 870 ory of Fort�ins 66 33 Recreation Priority Needs • $ 1 Million needed to preserve current Recreation service levels • General Fund support for Recreation has been reduced by $ 1 . 1 million from 2008 levels . — Deficit being addressed by staff reductions , fee increases and use of $ 900 , 000 in Recreation reserves — Recreation reserves expected to be fully used by early 2013 Fort Collins 67 Impact to Community • Prevents the closing of a major recreation facility ( Senior Center or Northside Aztlan Center) and elimination of recreation services for people with disabilities • Or, prevents dramatic reductions to current Recreation programs and services ory of Fort�lns 68 34 Options to Consider `mot Collins 69 Options • Cut more services or add resources/revenue • Options to meet community needs : — Sales & Use Tax — Property Tax — User Fees (e . g . , Streets Maintenance Fee ) — Payment in Lieu of Taxes ( PILOTS ) • Or a combination of the above It is staff's understanding that if City Council chooses to pursue either a tax increase or new fees to fund City programs that an election would be held. of FortY� ins 70 35 Sales & Use Tax Increase Percent Revenue Monthly Impact * Annual Impact* Increase Generated 1 . 00 % $20 . 8 M $ 11 $ 132 . 75 % $ 15 . 6 M $8 . 25 $99 . 50 % $ 10 . 4 M $5 . 5 $66 . 25 % $5 . 2 M $2 . 75 $33 Note: 25% of all sales are from non-Fort Collins residents On a $ 10 purchase , buyer pays an additional 10 cents . *Monthly & annual impact estimated by Finance staff based on Clty of average household income . Fort Collins 71 2009 Property Tax Rates 2009 Property Tax Rates City Larimer Poudre Poudre N . CO Total County Schools Health Water 9 . 797 22 .435 51 . 723 2 . 167 1 . 0 87 . 122 Fort 72 36 Property Tax Estimated Property Tax Generated Including Change to City Mill Increase to Mill Levy as Levy- How much of Every Mill Levy Increase Overall Percentage Property Tax Dollar Is City Tax Generated 5 .705 6.50% 16.8 cents $ 10/000/000 8.557 9.80% 19.3 cents $ 15/000/000 11.410 13 . 10% 21. 6 cents $ 20/000/000 Prepared by the City of Fort Collins Finance Department 3/9/10 Based on 2009 Property Tax Certificate. Fort Collins 73 Current Distribution of Property Tax Dollar Distribution of Property Tax Dollar if City % increased to generate $20 M Others Health Dist Health Dist o 2% Others Library Dist 3% 2 /o City Library Dist � % 3% 11 % 3% City 22% County County 23% 26% 11 Poudre Poudre School Dist School Dist 55% 49% cm of t CoUlns 74 37 Impact of Property Tax Increase Property Value Annual Increase Residential $ 180 , 000 $ 163 Residential $2505000 $227 Residential $ 3505000 $318 Residential $ 500 , 000 $454 Business $2 M $6 , 618 Note : Based on $20M scenario `"ytColUns 75 Streets Maintenance Fee • To generate $6 . 5M in revenue for streets maintenance , total imposed fee would equal $ 7 . 8M . $ 1 . 3M in exemptions for public property , some non - profits . 65 % ($3 . 9M ) of the fee falls to commercial property . 45 % ($2 . 6M ) of the fee falls to residential property ory of Fort�ins 76 38 Impact of Streets Maintenance Fee Monthly Impact Annual Impact Residential $4 . 25 $51 Small Retail $41 $498 Large Retail $27667 $323000 Large Industrial $3 , 685 $445200 Note : These are general examples; actual impact depends on lot size and trip generation Fo�Yt�ins 77 Payment in Lieu of Taxes Additional Monthly Impact Annual Impact to PILOT Revenue to Average Average Increase Generated Household Household 1% 1/ 262/ 700 $ 1 . 57 $ 18 . 84 2% 2/ 525/400 $ 2 . 73 $ 32 . 76 3% 3/ 788/ 100 $ 3 . 90 $ 46 . 80 4% 5/ 050/ 800 $ 5 . 06 $ 60 . 72 Note current PILOT rate is 6%. Budgeted PILOTS = $7 . 58 M in 2010 . Based on 2010 utility rates . For, Ytoll s 78 39 Revenue Pros Cons Source Sales & Use •25% collected from outside * Regressive Tax City *More Volatile *Systems in place to collect Property Tax • Less volatile •Commercial property •Systems in place to collect impact due to Gallagher Amendment • Progressive Street • Less volatile • Regressive Maintenance -Links fee to service provided *Need to set up collection Fees system *Complex methodology to explain * Disproportionate impact to businesses aty oPA AllInq 79 Community Dialogue Process • Phase 1 : Information & Context — State of the City Address — Fcgov. com/resourcingourfuture — Columns in local newspapers — Speakers Bureau/community presentations — Cable 14 video re : data -driven organization Fort Y� llins 80 40 Community Dialogue Process • Phase 2 : Community Conversation • Key questions : — How do we as a community address the pressing needs in police , fire , transportation , parks and recreation ? — Do we cut more services ? If so , where ? — Do we pursue new resources ? If so , which option ? ForYt�tns 81 Community Dialogue Process • Tools for Community Conversation — Face-to-face • Council District Meetings • Community Forum (with clicker technology) • Speakers Bureau — Electronic communication tools • Interactive website • Social Media ( Facebook &Twitter) — Surveys • Statistically valid citizen survey • City News questionnaire • Maintain efforts to provide information & context Fort Collins 82 41 Community Dialogue Process • Phase I Report back to City Council • Anticipated time line : June , 2010 F�t�ins 83 2010 Election Timeframe Key Dates • July 20 - Deadline for City Council to consider an ordinance calling a special election for November 2 • August 17 - Second reading on the ordinance calling special election • August 17 — Council considers Resolution to refer measure to the ballot ; ballot language finalized • November 2 - Election Day CI of Fort�lns 84 42 Closing `�i Colons 85 43