HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/20/2009 - FIRST READING OF ORDINANCE NO. 112, 2009, BEING TH ITEM NUMBER: 27
AGENDA ITEM SUMMARY DATE: October 20, 2009
FORT COLLINS CITY COUNCIL STAFF Darin Atteberry
Mike Freeman
SUBJECT
First Reading of Ordinance No.112, 2009, Being the Annual Appropriation Ordinance Relating to
the Annual Appropriations for the Fiscal Year 2010; Adopting the Budget for the Fiscal Years
Beginning January 1, 2010, and Ending December 31, 2011; and Fixing the Mill Levy for Fiscal
Year 2010.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
This Ordinance represents the annual appropriation for fiscal year 2010, and adopts the total City
budget for fiscal year 2010 at $508.6 million and for fiscal year 2011 at $507.3 million. This
Ordinance also sets the City mill levy at 9.797 mills, unchanged since 1991, for fiscal year 2010.
EXECUTIVE SUMMARY
The Annual Appropriation Ordinance is presented for First Reading. This Ordinance sets the City
Budget for the two-year period of 2010-2011. The approved budget becomes the City's Council
financial plan for the next two fiscal years.
BACKGROUND
This biennial budget represents the work of many dedicated individuals who came together to
participate in the budget process. Since 2005,the City has used the Budgeting for Outcomes(BFO)
process. BFO has a number of advantages over traditional budgeting approaches;the BFO process
helps the City meet several important goals, including:
• Create clarity about the overall budget process for the community;
• Allocate revenues to the highest priorities and outcomes citizens want and need;
• Understand the choices for funding programs and services; and
• Emphasize staff accountability, efficiency, innovation and partnership.
October 20, 2009 -2- Item No. 27
Using this approach, City Council and staff worked in close collaboration over the past two months
to build a financial plan, based on revenue available, that will achieve service outcomes which
matter most to our citizens and community. This work has resulted in the development of the Final
2010-2011 Budget. The approval of the Appropriation Ordinance on First Reading represents a
major milestone in this process.
As the budget development process began in April 2009, City Council and staff met on several
occasions to outline goals and assumptions for developing the recommended budget. Council was
actively engaged in the development and approval of the seven Key Outcomes that have shaped this
budget.
Fort Collins has a healthy,sustainable economy
Economic Health reflecting the values of our unique community
in a changing world.
Environmental Health Fort Collins promotes,protects and enhances a
healthy and sustainable environment.
Safe Community Fort Collins provides a safe place to live, work,
learn and play.
Neighborhood Livability Fort Collins fosters and supports a variety of
quality neighborhoods.
Cultural and Recreational Opportunities Fort Collins encourages and provides diverse
cultural and recreational opportunities.
Transportation Fort Collins provides for safe and reliable
multi-modal travel to,from,and throughout the
City.
High Performing Government Fort Collins exemplifies an efficient,
innovative, transparent, effective and
collaborative city government.
Budget Highlights
The 2010-11 Final Budget is a financial and service plan linked to the seven key outcomes and
results that matter most to Fort Collins citizens. Some key highlights of the City Budget include:
1. The total budget for all City funds for 2010 is $508.6 million and $507.3 million for 2009.
2. The budget includes no tax increase.
3. Sales and Use tax revenue accounts for approximately 55 percent of the General Fund
revenue collected annually. This tax revenue is projected to increase by 1% in 2010 with
a slightly larger increase in 2011 of 2%.
October 20, 2009 -3- Item No. 27
4. The projected Utility rate increases for 2010 to fund operations and maintain minimum
reserves are Wastewater a 10%increase;Electric a 9.5%increase;Water a 3%increase;and,
Stormwater no increase.
5. The budget will reduce classified,unclassified,and contractual City staff by a total of 10.20
full time equivalent positions. The estimated reduction in hourly staff is 12.45 full time
equivalent positions.
Budget Assumptions
eFv }F3 { Total Budget ;.
'Y N]Yr Yy
i
(in Millions)
[, r-!
»t R 2009 : ' :2010:. % Chan a 2011 F '-" %-Chan J'e
Operating $460.3 $429.9 -6.6% $442.3 2.90/(0
Debt $27.4 $21.0 -23.4% $20.3 -3.3°/
Capital $84.8 $57.7 -32.0% 44.7 -22.5°/
otaU Ci A' ro riatioris' 57.2.5 508.E ' -1 T:2% '. '' 507:3 -0.30/
Less Internal Service
Funds -$62.6 -$58.1 -7.2% -$58.9 1.40/
Less Transfers to Other
Funds - 114.6 - 99.4 -13.3% - 99.2 -0.20/
° °
Some of the key assumptions used in developing the Final Budget include:
1. Limited revenue growth for 2010 and 2011
Despite the collective signs of impending recovery, the turbulent economic conditions of
2009 will likely persist into 2010. Most experts agree that the recovery will occur gradually
with sectors of the economy enduring a lasting reduction in output and employment. The
2010-2011 Budget, therefore, employs conservative assumptions of growth that reflect a
cautiously-optimistic outlook for the next two years.
2. Use of reserves
Approximately$2.5 million in General Fund reserves was used to balance the 2010 budget
and $1.0 million in the 2011 Budget. Reserves are used primarily for one-time projects.
At its October 13 Work Session,Council gave staff direction to include an additional amount
of resources from General Fund reserves in the Appropriation Ordinance being considered
October 20, 2009 -4- Item No. 27
on First Reading. By using approximately $200,000 in additional reserves, the balance in
the General Fund reserve accounts would remain above the recommended level of 60 days
Reserve (16.67% of General Fund expenditures).
3. Public Safety needs, Economic Health and Environmental Health issues are funding
priorities
This budget focuses on the City Council and community priorities. In spite of limited
revenue,this budget maintains funding levels for Police and Fire Services: It also maintains
funding and provides additional staff resources (through the partnership between Natural
Areas and Utilities) for key environmental programs such as the Climate Action Plan
implementation,ClimateWise,and Utilities of the 21 st Century. Economic Health programs
are also maintained including support for economic clusters,support of the Rocky Mountain
Innovation Initiative, and the next phase of the "one-stop shop" for Community
Development and Neighborhood Services.
4. Employee salary adjustments
No merit-based pay increases are budgeted for City employees in 2010.
Adjustments to the City Manager's Recommended Budget
City Council held its last budget work session on October 13, 2009. At the work session, Council
provided input and direction on budget items that fell into three categories:
1. Items now included in the budget
2. An item included in the budget needing further discussion
3. Items discussed but are not in the budget
October 20, 2009 -5- Item No. 27
ITEMS INCLUDED IN THE BUDGET
RESULT , , OFFER TITLE AMOUNTil
ENVIRONMENTAL HEALTH 179.4 SOLID WASTE REDUCTION AND RECYCLING: $55,000
WASTE STREAM SYSTEM STUDY
(funded through General Fund landfill tipping fees
one time)
ENVIRONMENTAL HEALTH RESTORATION &REDUCTION $13,000
Soap IN AIR QUALITY PROGRAM*
Doing (funded 'by savings from Quiet Zone study
List _onetime)
r
NEIGHBORHOOD LIVABILITY 115.1 REINSTATE CODE ENFORCEMENT POSITION* $67,000
(funded by savings from Quiet Zane study—one time)
NEIGHBORHOOD LIVABILITY 115.6 HOURLY CODE ENFORCEMENT $14,000
SAFE COMMUNITY 196.1 NEIGHBORHOOD TRAFFIC MITIGATION $100,000
(funded.through General Fund—one time)
TRANSPORTATION 24.2 LIQUID DE-ICER** $25,000
(fund through General Fund reserves—one time)
TRANSPORTATION 156.2 DIAL-A-RIDE PARATRANSIT ENHANCEMENT $112,019
(funded through General Fund reserves—one time)
GENERAL i TOTAL $372,019
ENVIRONMENTAL HEALTH 179.6 PILOT HOUSEHOLD HAZARDOUS WASTE ROUNDUP $60,000
-2 Times Per Year
(funded through Stormwater—one time)
TRANSPORTATION 24.4 NEIGHBORHOOD STREET SWEEPING $100,000
-4 Times Per Year
(funded through Stormwater—ongoing)
STORMWATER FUND TOTAL $160,000
TRANSPORTATION 156.3 DIAL-A-RIDE PARATRANSIT NIGHT SERVICE $43,751
(funded through Transfort technology deferral
—one time)
TRANSPORTATION l TOTAL
*The quiet zone rail study offer was originally funded in the City Manager's recommended budget. Staff is
recommending that those funds be used instead to reinstate the Code Enforcement positions and restore cuts from the
air quality program.
**The liquid de-icer offer is fully funded. The budget includes the incremental $25,000 that will be combined with
$80,000 already budgeted for ice control materials for a total of$105,000.
October 20, 2009 -6- Item No. 27
Staff is seeking confirmation that City Council wishes to fund these items.
ITEM INCLUDED IN THE BUDGET NEEDING FURTHER DISCUSSION
RESULT AREA INUMBERI I OFFER TITLE AMOUNT
SAFE COMMUNITY 39.1 ADVANCED METERING INFRASTRUCTURE $10,739,500
Throughout the budget deliberation process, there have been concerns expressed about the timing
of funding the Advanced Metering Infrastructure(AMI)project,given the rate impact of 2%needed
to fund it. While there have been concerns expressed about the AMI program,there have also been
discussions about how this effort is linked with the Climate Action Plan and is a significant strategy
for assisting in carbon reduction. Staff is prepared to discuss this program in more detail during the
City Council deliberation on the budget. Ultimately, staff is seeking direction on whether or not
City Council supports funding the AMI program in 2010.
Other Items Considered by City Council at its October 13, 2009 Work Session
Additionally,several Councilmembers expressed a desire for further discussion about the following
items:
1. Historic Preservation Planner Position
In order to minimize the impact of reducing one Historic Preservation planner, staff has identified
the following methods to help backfill the loss:
• Train existing staff planners on the more routine questions
• Devote .2fte of a planning tech to perform research and administrative functions
• Look at reducing the LPC meetings from 2 per month to 1 per month
Additionally, staff is concluding a Historic Preservation Process Improvement Study that is
scheduled for the October 27, 2009 City Council Work Session. Some of the recommendations in
this study include process improvements that will produce efficiencies and assist in freeing up time.
2. Crossroads Safehouse
City Council provided direction to the City Manager to continue to seek funding alternatives for this
critical community service in lieu of including funds within the budget.
3. Affordable Housing Program
At an average subsidy of between $7,500 and $10,000 per unit, the loss of$200,000 in the City's
Affordable Housing Fund means a loss of the ability to help build/rehab between 20 to 27 affordable
October 20, 2009 -7- Item No. 27
housing units. Affordable Housing Fund dollars also help leverage additional financial resources
at ratios that range from 8:1 to 76:1, depending upon the type of project.
4. Railroad Quiet Zone Study
The City Manager's recommended budget included $100,000 to conduct a quiet zone study from
Laurel Street to the southernmost boundary of the City. This offer was subsequently not funded so
that Code enforcement positions could reinstated and funds reduced for the air quality program
could be reinstated.
Conclusion
The 2010-2011 Final Budget is a sound financial plan to deliver the services we believe our citizens
value most. Due to limited resources, it does not,however, fully meet the demand for services that
citizens need and expect. However, the Budgeting for Outcomes process has enabled us to focus
and apply the resources available to key community outcomes. Citizens will receive excellent value
for their tax dollars.
Any final amendments agreed to by Council will be included in the second (and final) reading of
the budget ordinance on November 3, 2009. By Charter, the Budget must be adopted and
appropriations for the 2010 fiscal year must be approved by November 30.
ORDINANCE NO. 112, 2009
OF THE COUNCIL OF THE CITY OF FORT COLLINS
BEING THE ANNUAL APPROPRIATION ORDINANCE
RELATING TO THE ANNUAL APPROPRIATIONS
FOR THE FISCAL YEAR 2010; ADOPTING THE BUDGET
FOR THE FISCAL YEARS BEGINNING JANUARY 1, 2010,
AND ENDING DECEMBER 31, 201 l; AND FIXING THE MILL
LEVY FOR FISCAL YEAR 2010
WHEREAS,the City Manager has,prior to the first Monday in September,2009,submitted
to the Council a proposed budget for the next ensuing budget term, along with an explanatory and
complete financial plan for each fund of the City, pursuant to the provisions of Article V, Section
2, of the City Charter; and
WHEREAS, within ten days after the filing of said budget estimate, the Council set
September 15 and October 6, 2009, as the dates for the public hearings thereon and caused notice
of such public hearings to be given by publication pursuant to Article V, Section 3, of the City
Charter; and
WHEREAS, the public hearings were held on those dates and persons were given the
opportunity to appear and object to any or all items and estimates in the proposed budget; and
WHEREAS, Article V, Section 4, of the City Charter requires that, before the last day of
November of each fiscal year, the Council adopt the budget for the ensuing term by ordinance and
appropriate such sums of money as the Council deems necessary to defray all expenditures of the
City during the ensuing fiscal year; and
WHEREAS,Article V, Section 5,of the City Charter provides that the annual appropriation
ordinance shall also fix the tax levy upon each dollar of the assessed valuation of all taxable property
within the City, such levy representing the amount of taxes for City purposes necessary to provide
for payment during the ensuing fiscal year for all properly authorized expenditures to be incurred by
the City; and
WHEREAS, Article XII, Section 6, of the City Charter permits the City Council to fix,
establish, maintain, and provide for the collection of such rates, fees, or charges for water and
electricity, and for other utility services furnished by the City as will produce revenues sufficient to
pay into the General Fund in lieu of taxes on account of the City-owned utilities such amount as may
be established by Council.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. Budget
a. That,the City Council has reviewed the City Manager's 2010-2011
Recommended Budget, a copy of which is on file with the office of the City Clerk,
and has approved certain amendments thereto.
b. That the City Manager's 2010-2011 Recommended Budget, as
amended by the Council, is hereby adopted, in accordance with the provisions of
Article V, Section 4, of the City Charter and incorporated herein by reference;
provided,however,that the comparative figures contained in the adopted budget may
be subsequently revised as deemed necessary by the City Manager to reflect actual
revenues and expenditures for the fiscal year 2009.
C. That the adopted budget,as amended,shall be maintained in the office
of the City Clerk and identified as "The Budget for the City of Fort Collins for the
Fiscal Years Ending December 31,2010,and December 31,2011,as Adopted by the
City Council on November 3, 2009."
Section 2. Appropriations. That there is hereby appropriated out of the revenues of the
City of Fort Collins, for the fiscal year beginning January 1, 2010, and ending December 31, 2010,
the sum of FIVE HUNDRED EIGHT MILLION SIX HUNDRED THIRTY EIGHT THOUSAND
NINE HUNDRED THIRTY-ONE DOLLARS ($508,638,931) to be raised by taxation and
otherwise, which sum is deemed by the City Council to be necessary to defray all expenditures of
the City during said budget year,to be divided and appropriated for the following purposes, to wit:
GENERAL FUND $102,080,629
ENTERPRISE FUNDS
Golf $2,893,193
Light& Power
Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,542,097
Capital:
Electric Substations 4,404,000
Southwest Annexation Electric System 1,300,000
Advanced Metering Infrastructure (AMI) 8,739,500
Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,443,500
Total Light& Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,985,597
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Storm Drainage
Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,317,487
Capital:
Old Town Basin Improvements 500,000
Canal Importation Basin Improvements 2,840,000
Drainage & Detention System Replacement 370,000
Service Center Improvements 50,935
Stormwater Developer Repays 95,000
Stormwater Master Plan 400,000
Vacuum Truck for Waste Disposal 150,000
Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,405,935
Total Storm Drainage . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,723,422
Wastewater
Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,828,306
Capital:
Collection System Replacement 1,540,000
Collection System Study 100,000
DWRF Improvements 265,000
Flow Monitoring Stations 100,000
MWRF Improvements 150,000
Service Center Improvements 297,374
Sludge Disposal Improvements 150,000
Water Reclamation Replacement Program 1,685,000
Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,287,374
Total Wastewater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,115,680
Water
Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,965,806
Capital:
Advanced Metering Infrastructure (AMI) 2,000,000
Cathodic Protection 170,000
Distribution System Replacement 2,525,000
Halligan Reservoir Enlargement 190,000
Service Center Improvements 105,938
Water Production Replacement Program 1,795,000
Water Supply Development 100,000
Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,885,938
Total Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,851,744
TOTAL ENTERPRISE FUNDS $ 294,650,265
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INTERNAL SERVICE FUNDS
Benefits $20,321,405
Data& Communications 8,896,746
Equipment 9,420,341
Self Insurance 3,292,964
Utility Customer Service & Administration 16,649,378
TOTAL INTERNAL SERVICE FUNDS $ 58,580,834
SPECIAL REVENUE FUNDS
Capital Improvement Expansion Fund $ 904,354
Capital Leasing Corporation Fund 5,344,893
Cemeteries 719,570
Cultural Services 3,765,285
Debt Service 358,365
General Employees' Retirement 2,760,423
Natural Areas Fund 8,571,164
Perpetual Care 555435
Recreation 6,885,023
Sales and Use Tax 73,624,048
Street Oversizing 4,558,731
Timberline/Prospect SID �' 122,970
Transit Services 11,309,638
Transportation Services 27,683,360
TOTAL SPECIAL REVENUE & DEBT SERVICE FUNDS $146,663,259
CAPITAL IMPROVEMENT FUNDS
General City Capital
Bryan Bridge Replacement $ 137,940
City Bridge Program 1,800,000
Police Facility 750,000
Railroad Crossing Replacement 100,000
TOTAL GENERAL CITY CAPITAL $ 2,787,940
1/4 Cent- Building on Basics
Administration $ 21,952
Bicycle Program Plan Implementation 125,000
Lincoln Center Renovation 3,270,441
Museum/Discovery Science Center 273,213
Pedestrian Plan and ADA Improvements 300,000
-4-
TOTAL 1/4 CENT - BUILDING ON BASICS $ 3,990,606
Conservation Trust Fund
Administration $ 235,604
Fossil Creek Trail 50,000
Open Space Acquisition 10,000
Trail Acquisition, Development& Repair 350,000
Transfer to General Fund-Parks Maintenance 730,146
Tri-City Trails 30,000
TOTAL CONSERVATION TRUST FUND $1,405,750
Neighborhood Parkland Fund
Administration $ 395,277
New Park Site Development 150,000
Park Site Equipment 15,000
TOTAL NEIGHBORHOOD PARKLAND FUND $ 560,277
TOTAL CITY FUNDS $508,638,931
Section 3. Mill Levy
a. That the 2010 mill levy rate for the taxation upon each dollar of the
assessed valuation of all the taxable property within the City of Fort Collins as of
December 31, 2009, shall be 9.797 mills,which levy represents the amount of taxes
for City purposes necessary to provide for payment during the aforementioned budget
year of all properly authorized expenditures to be incurred by the City.
b. That the City Clerk shall certify this levy of 9.797 mills to the County
Assessor and the Board of Commissioners of Larimer County, Colorado, in
accordance with the applicable provisions of law, as required by Article V, Section
5, of the Charter of the City of Fort Collins.
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Introduced, considered favorably on first reading, and ordered published this 20th day of
October,A.D. 2009, and to be presented for final passage on the 3rd day of November, A.D. 2009.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 3rd day of November, A.D. 2009.
Mayor
ATTEST:
City Clerk
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