HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/15/2010 - FIRST READING OF ORDINANCE NO. 080, 2010, CALLING DATE: June 15, 2010 AGENDA ITEM SUMMARY
STAFF: Darin Atteberry _
Mike Freeman
T COLLINS CITY COUNCIL
First Reading of Ordinance No. 080, 2010, Calling a Special Municipal Election to Be Held in Conjunction with the
November 2, 2010 Larimer County General Election.
EXECUTIVE SUMMARY
This Ordinance calls a Special Municipal Election to be held in conjunction with the November 2,2010 Larimer County
General Election, and preserves the opportunity for Council to place initiated or referred issues on the November
ballot. If Council decides to place any measures on the ballot it would need to do so no later than at its August 17
meeting. If Council does not take action by resolution before the statutory deadline (September 3) to certify ballot
language to Larimer County, the election will be cancelled and the provisions of this Ordinance will be of no further
force and effect.
This Ordinance does not submit a specific measure to the November 2, 2010 ballot. However, for the past several
months City staff has been conducting a community dialogue about how to address pressing,unfunded needs in street
maintenance, police, fire, parks and recreation. Staff recommends that voters have an opportunity to decide via an
election. Adoption of this Ordinance is a required step in preserving the option for City Council to submit a sales tax
increase to the voters should they so choose.
BACKGROUND/ DISCUSSION
Atthe City Council Work Session held on March 23,2010,staff presented information about pressing,unfunded needs
in street maintenance, police, fire, parks and recreation. City Council feedback was to proceed with a community
dialogue about Resourcing Our Future. The dialogue was structured around three key questions:
• How should the community address the pressing, unfunded needs in street maintenance, police, fire, parks
and recreation?
• Do we cut more services? If so, which ones?
• Do we add more resources? If so, which option?
Staff has identified and thoroughly documented information aboutthe immediate needs foradditional resources in four
key areas of local government.
STREET MAINTENANCE
Additional resources are needed to maintain streets, fill potholes and make basic repairs. The need for street
maintenance to maintain current pavement quality is approximately $6.5 million annually above the 2010 adopted
budget level of$7.1 million. This cost does not include resources to meet other pressing transportation needs, such
as bridge repair and replacement; new roads, interchanges and other capital improvements; improvements in safety
at school zones; neighborhood traffic calming; new bike lanes and sidewalks; and transit service.
Impact to community:
• Overall pavement conditions are deteriorating; more potholes are prevalent and structural roadway concerns
will soon begin to show. Funding for street maintenance was reduced by more than $2 million in 2010.
• As conditions continue to deteriorate due to delayed maintenance, replacement and repair costs become
significantly more expensive.
June 15, 2010 -2- ITEM 26
POLICE SERVICES
Additional resources are needed for City Police Services to maintain current levels of service and make minimal
enhancements. An additional 33 officers and 15 civilians are needed to provide the level of service expected by the
community. The need is approximately$4.6 million per year.
Impact to community:
• Capacity for response to non-emergent crimes(e.g., car break-ins)and proactive problem-solving continues
to deteriorate
• Difficult to maintain appropriate staffing levels for basic police protection and dispatch
• New resources are needed to maintain existing services levels and make minimum improvements in these
areas:
0 More neighborhood patrolling
Increased traffic patrol
More party and noise enforcement
0 Safer Downtown during day and evening
POUDRE FIRE AUTHORITY
Additional resources for Poudre Fire Authority are needed to serve growing demands in south Fort Collins, as well as
enhanced Emergency Management. The need is approximately$3.2 million per year.
Impact to community:
• Additional funds will be used to maintain appropriate staffing and make limited improvements
Reduced response times to emergencies
o Improved emergency scene management to better protect citizens, businesses and property
o Help to maintain Insurance Services Office(ISO) ratings, which in turn helps minimize increases in
insurance costs for residents and businesses. The ISO recently reduced PFA's rating from a 3 to
a 4(1 =best, 10=worst). PFA estimates this rating change will cost Fort Collins home and business
owners an estimated $3.5 million due to increased premium costs.
Increased ability to respond to simultaneous alarms
o Increased preparedness, mitigation, response and recovery for emergencies, threats and disasters
o Improved firefighter safety through better safety oversight and emergency coordination
PARKS AND RECREATION
Additional resources are needed for parks maintenance and to preserve recreation services. The need is
approximately$2 million per year($1 million for parks maintenance and $1 million for recreation)..
Impact to community:
• Because of ongoing cuts to Park Maintenance funds, City parks are beginning to deteriorate; additional
resources are needed to keep our parks clean and well maintained (e.g., replacing play equipment, keeping
parks litter-free, weed control).
• The City is currently using$900,000 of reserves to fund Recreation,which will run out in 2013. If General Fund
support for Recreation is not restored,service levels will be severely impacted. Either a major facility, like the
Senior Center, the Northside Aztlan Community Center, or Edora Pool Ice Center, (EPIC)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 be made to the programs that receive the greatest General Fund support.
There are several key dates that should be kept in mind if the City Council chooses to pursue a special election in
November seeking an increase in the City's base sales tax rate.
• June 15 First Reading of an ordinance calling a special election for November 2. Article VIII, Section
2 of the City Charter requires that a special election be called by ordinance. In order to meet
the statutory deadline to enter into an intergovernmental agreement with Larimer County for
the conduct of the election, this Ordinance must be adopted prior to August 24, 2010.
June 15, 2010 -3- ITEM 26
• July 6 Second Reading of the ordinance calling the special election.
• August 17 Council considers Resolution to submit measure to the ballot with final ballot language
• October 12 (approximately) First date ballots will be mailed
• November 2 Election Day
FINANCIAL/ ECONOMIC IMPACTS
A 1%increase in the City's base sales tax rate,which would not apply to groceries or prescription drugs,will generate
approximately$20.5 million in fiscal year 2011 (January 1, 2011 to December 31, 2011). The documented needs in
street maintenance, police,fire, parks and recreation total$16.5 million. Staffs recommendation is that those needs
be funded by a 1% increase and that the remaining revenues from the increase be used to fund other priority
community needs.
Approximately 25%of sales tax collections come from visitors and people who live outside the city limits. The City's
total sales tax rate is currently 6.7%. An increase of 1%would raise the rate to 7.7%, keeping Fort Collins the fourth
lowestwhen compared to other major cities in the Colorado Front Range,slightly higherthan Colorado Springs(7.4%),
Loveland (6.7%) and Greeley(6.36%) (see Attachment 1, page 4).
ENVIRONMENTAL IMPACTS /
There are no obvious environmental impacts from the proposed action.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BOARD / COMMISSION RECOMMENDATION.
City staff presented information about Resourcing Our Future to the Transportation Board and the Parks and
Recreation Board. The Transportation Board voted 7-0 to recommend that the issue be placed on the ballot and that
the ballot language specify at least 40% of the revenue would be dedicated to transportation needs. A letter with its
complete recommendation is attached(see Attachment 2).,The Downtown Development Authority Board of Directors
also adopted a Resolution in support of placing this measure on the November, 2010 ballot. A letter of support is
attached (see Attachment 3).
PUBLIC OUTREACH
City staff conducted a multi-faceted public outreach to engage the community in a dialogue about Resourcing Our
Future. In conjunction with City Councilmembers, staff hosted seven meetings over a period of two weeks(April 21
—May 2). The City Manager sent a letter(see attachment 5)to more than 35 service clubs and community groups
asking to present Resourcing Our Future information and gather input. The effort resulted in City staff presenting to
a variety of audiences including:
• Overland Sertoma Club
• Board of Realtors Government Affairs Committee
• First National Bank
June 15, 2010 -4- ITEM 26
• Downtown Development Authority Board
• Eyeopeners Kiwanis Club
• City of Fort Collins Knowledge Pot
• Downtown Business Association Membership Meeting
• Fort Collins Convention and Visitors Bureau
• Lions Club
• Rotary Club
• CityWorks 101 Alumni Forum
• Chamber of Commerce Executive Committee
• Larimer County Republicans Breakfast
Some key themes that emerged during the community dialogue:
• This decision should be up to the voters; give them a choice of whether or not to further invest in our
community.
• Many people have questions about how to structure the ballot language(i.e., dedicated for specific purposes
or general; 1% or less; in perpetuity or shorter amount of time). Opinions on these topics are mixed.
• Continue to trim costs and find efficiencies. The City has done a good job of cutting costs, but should not
become complacent.
• People appreciate their quality of life and don't want it to decline. At the same time, they want the City to
remain focused on the highest priority services, including transportation and the economy.
• Public safety is a priority, yet people feel safe and are looking for more compelling information about why
additional resources are needed in this area.
• Keep working to spread the word; people need information to make informed choices.
ATTACHMENTS
1. Resourcing our Future Overview
2. Transportation Board Letter of Recommendation
3. Downtown Development Authority Board Letter of Recommendation
4. Public Involvement Summary
5. Example of the Letter sent to Service Clubs and Community Organizations
6. PowerPoint presentation
ATTACHMENT ]
5-2010
Resourcona our Future
HOUSE IN APPROPR11ATEFRESOURCIING
ORDER ROLE IN THE
ECONOMY U
LL : A
Since 2005: Supporting job creation Immediate and pressing
•Cut nearly$24 million through: needs in:
of planned and existing - Enabling start-ups and -Street Maintenance
expenses entrepreneurs - Police
• Eliminated more than 150 -Supporting target industries - Fire
city jobs - Business retention/ - Parks & Recreation
•Aligned employee salaries expansion • Second lowest sales tax rate
with market Implementing Economic among comparable cities
• Restructured &reduced Action Plan • Base sales tax rate has
employee benefit plans Retail retention &expansion not increased in 28 years
• Ongoing commitment to Improved Development (1982)
efficient service delivery Review process
• Created North College
Urban Renewal Authority
The City of Fort Collins has pressing, immediate needs and a long-term vision for a stronger,
sustainable community.
Although we have significantly cut costs and are operating more efficiently, City revenues
are not keeping pace with the demand for basic City operations and services.
AS A COMMUNITY, WE MUST DETERMINE HOW TO ADDRESS THESE CRITICAL NEEDS:
STREET MAINTENANCE
Need: Additional resources needed to maintain streets, fill potholes and make basic repairs
Cost:Approximately S6.5 million annually for street maintenance to maintain current pavement
quality. This cost does not include resources to meet other pressing needs:bridge repair and replacement;new
roads, interchanges and other capital improvements;improvements in safety at school zones;neighborhood traffic
calming,new bike lanes and sidewalks;transit service
Impact to Community:
■ Overall pavement conditions are deteriorating; more potholes are prevalent. Funding for street maintenance
• has been reduced by more than $2 million in recent years.
• As conditions deteriorate due to delayed maintenance, replacement and repair costs become significantly
more expensive.
I
Y
Resourcing our Future (continued)
POLICE SERVICES
Need: An additional 48 officers &civilians needed to provide the level of service expected by
the community
Cost: Approximately $4.6 million per year
Impact to Community:
• Maintain appropriate staffing levels for basic police protection and dispatch
■ Shorter response times to emergencies
• Shorter investigation turnaround times
• More neighborhood patrolling
■ Increased traffic patrol
• More party and noise enforcement
• Safer Downtown during day and evening
• Reduced overtime expense
POUDRE FIRE AUTHORITY
Need: More firefighters and other resources needed to serve growing demands in south Fort
Collins, as well as enhanced Emergency Management
Cost: Approximately $3.2 million per year
Impact to Community:
• Reduced response times to emergencies
• Maintain appropriate staffing
• Improved emergency scene management to better protect citizens and their property, and businesses
■ Increased ability to respond to simultaneous alarms
• Increased preparedness, mitigation, response and recovery for emergencies, threats and disasters
• Improved firefighter safety through better safety oversight and emergency coordination
0 PARKS AND RECREATION
Need: Additional resources for parks maintenance and to preserve recreation services
Cost:Approximately $2 million per year (31 million for parks maintenance and 87 million for recreation)
Impact to Community:
■ City parks are beginning to deteriorate; additional resources are needed to keep our parks clean
and well maintained.
■ We are currently using$900,000 of reserves to fund Recreation, which will run out in 2013. 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 Aztlan 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.
For more information: fcgov.com/resourcingourfuture
2
• GENERAL FUND REVENUE BUDGET HISTORY
In 2010, the City's General Fund revenues are $102 Over the last five years,the City has
million. Sixty percent of those revenues come from sales eliminated lower-priority services and
and use tax. aggressively pursued ways to make our
local government more efficient.
HOW THE GENERAL FUND We've cut nearly$24 million of planned
MONEY IS SPENT and existing expenses.
ENVIRONMENTAL HEALTH 1% NEIGHBORHOOD LIVABILITY 2% Following are a few specific
examples of cuts that have been
made and efficiencies:
Irv ' t • Eliminated more than 150 jobs: 36
HEALmgmt,106 FTE in 2006; 48 FTE in 2010
Reorganized top management,
FF eliminated top and mid-level
GENERALCITY management positions and
TY
OPERATIONS created efficiencies
Created the one-stop development shop
COMMUNITY -Consolidated Information Technology
staff into a centralized organization
TRANSPORTATION - Eliminated policy and finance positions
within several departments
PARKS& • Restructured City employee health
. benefits;employees bear greater out-of-
pocket cost burden
• No pay raises in 2004, 2005 (except
swam police) &2010-201 1
REVENUE •Reduced Street Maintenance by$2 million
Despite cutting costs and operating more efficiently, City • Using$900,000 of reserves to fund
revenues are not keeping pace with the demand for basic Recreation; reserves run out in 2013
City operations and services. • Cut$400,000 from Parks Maintenance
NET CITY REVENUE - • Reduced night-time paratransit/Dial-a-
Ride Service
GOVERNMENTAL FUNDS • Eliminated Human Rights Office
$200 M
•Automating payroll and paying
$Iso M I contractors and vendors electronically to
save processing time
$120M � • Developed "Open Book"to ease access
to financial data
see • Raised purchasing thresholds to focus
$40M '' more on higher dollar transactions
where more money can be saved
D 2000 2001 2002 2003 2004 2005 2000 2007 20DO 20D9 • Dramatically improved financial
■GENERAL FUND [3 OTHER GOVERNMENTAL FUNDS reporting through automation
In 2009,net City revenue in the governmental funds(such as general •Significantly lowered power costs in
• City buildings fund,transportation/meet oversizing recreation,cultural services,transit)
was down$14 million, reaching its lowest point since 2003. • Implemented server consolidation to
save costs for replacement and power
3
Revenue Oations
The Resourcing our Future SALES TAX RATE COMPARISONS
community conversation If Fort Collins were to increase its sales tax by 1 v/o,we would
begins with this question, still have one of the lowest rates along the Front Range.
How does the community 10%
want to address the
unfunded needs in street 6%
maintenance, police, fire, - -
and parks and recreation? 6%
There are several options to 4%
consider. One option is to make
deeper cuts to existing services. 2%
Another option is to ask voters
to consider new revenue such D1111,1
tas ax or fees.increased sales tax, property o%`§V-�*��V.EQ"�\,�S'%*P'+E��`�Q�p�e,�as��,o°�As to" %�%;0s*o�,�P ol",,
,� 0 `QQp°
�o
INCREASE SALES TAX
A 10/b sales tax increase is the equivalent of 1 penny on a 1-dollar purchase. A 1% increase,which would not
apply on groceries and prescription drugs, would generate approximately$21 million/year.
.........................................................................................................................................................
PROPERTY TAX DISTRIBUTION
INCREASE CITY 11% LARIMER CTY 26% POUDRE SCHOOL DISTRICT 53% OTHER 4%*
PROPERTY TAX
To raise the $20 million Mjl!�WW� AMAMM j
necessary to fund our —=�•=m=- �
most basic needs in street
Eat 119560F4
(act,
maintenance, police, fire,
0. 5 aw� .o.� 5
10
parks and recreation, a mill —
levy increase of 11.41 mills E3111956OF °'
(more than twice our current
;�.,w�
rate of 9.797) would be 5® _. . r y �j
required. �r I r
'Pauere Health Services restrict&N.Colorado Water Conservancy District
.......................................................................................................................................................
INCREASE FEES-STREET MAINTENANCE ONLY
A Street Maintenance Fee has been discussed as a possible revenue source to generate $6.5 million in revenue
for streets maintenance.
.........................................................................................................................................................
INCREASE FEES-PARK MAINTENANCE ONLY
A Park Maintenance Fee has been discussed as a possible revenue source. Generating $4 million in revenue
would cover the cost of maintenance at community parks and free up resources to help meet other needs.
For more information: fcgov.com/resourcingourfuture
4
ATTACHMENT 2
City Of Transportation Board
F6rt Collins Gary Thomas, Chair
May 25, 2010
Mayor Hutchinson and Members of Council:
At its regular May meeting, the Transportation Board heard a presentation from City Staff on the
proposal to increase the sales tax rate in Fort Collins (Resourcing Our Future). The T-Board
voted 7 to 0 to recommend that the issue be put to the voters and that the ballot language
specifies at least 40% of the revenue would be dedicated to transportation needs.
In making that recommendation the Board adds the following comments:
While the vote to place the issue before the voters was unanimous, some members indicated they
were not sure how they would actually vote on the proposal. Additional information will be
needed during the campaign on the needs and uses of the funds.
The Transportation Board appreciates the recommendation by staff that the ballot language not
tie future Councils to any particular distribution of the funds. However, the T-Board has long
advocated that Fort Collins needs to have dedicated funding for transportation. The Board felt
that locking in a percent (40%) of the revenue for transportation would provide flexibility to
meet emerging needs while still assuring that the funds would remain in the transportation arena.
The proposal by staff calls for $6.5 million for pavement management. The Transportation Board
heartily endorses funds for that purpose! If 40% is earmarked for transportation that would raise
$8.4 million on a one cent tax, leaving just under $2 million for other transportation needs. The
T-Board agrees with staff that bridge maintenance, new infrastructure, and transit services all
need additional funding and at least $2 million should be directed to those efforts.
As usual the minutes of the meeting will have more detail, and I would be happy to expand on
these thoughts at your convenience.
Best regards,
Gary D. Thomas
ATTACHMENT 3
® DOWNTOWN
dda DEVELOPMENT
AUTHORITY
June 2, 2010
Honorable Doug Hutchinson & Members of City Council
City Hall West
300 Laporte Avenue
Fort Collins, CO 80522
RE: Resourcing Our Future
Dear Mr. Mayor& Members of Council:
The Downtown Development Authority ("DDA") Board of Directors received a presentation from
City staff on May 13, 2010 explaining that times have changed. Whereas the City used
to import 40% of sales tax collections, that number is now 25%. It is unrealistic to think, given
the changing nature of the region, that those numbers will ever return to their original levels. At
the same time, a high quality community gives us a competitive advantage in the region.
Fort Collins is a fantastic community and it is important to the DDA that this high quality of life
• continues. The DDA has made significant investments over the years, and is committed to a
positive future for Fort Collins.
The City of Fort Collins has demonstrated that they are responsible stewards of tax dollars and
has provided a high level of service with a low tax rate. The City has made $24 million in cuts
since 2005, and the community is now at a crossroads. Further cuts will seriously jeopardize
the quality community we all expect and enjoy.
The DDA Board & staff feel strongly that people should have the opportunity to choose to make
a small additional investment before we see the quality of life in our community deteriorate. City
staff provided examples and a recommendation for how to realize this investment in the
community through an additional 1% sales tax increase. Fort Collins residents get a high return
on their tax investment. In comparing our tax rate to other communities, we are the second
lowest now; a 1% increase would keep us as the 4th lowest of 14 regional communities and
allow us to continue to experience our high quality community.
The DDA Board and staff urge City Council members to support the ordinance on June
15 calling a special election for November, 2010 to give voters a choice on resourcing the future
of our community.
Sincerely,
/f
Patty Spencer Matt obenalt
Board Chair Executive Director
ATTACHMENT 4
4
Resourcing our Future
Community Meeting
April 28, 2010
District 1
Questions:
■ What is the comparison of staffing level of police in Fort Collins to others?
o With only 1.22 officers per 1,000, Fort Collins currently has the lowest
staffing level among other neighboring communities. Additional
information on police and fire staffing levels which can be found in the
Safe section of the 2009 Community Scorecard
(www.fcgov.com/Communityscorecard).
■ Recent articles have indicated Fort Collins crime rate is low. How does that
affect the need for more officers?
o While it is accurate that Fort Collins enjoys a relatively low Part 1 crime
rate, it is not completely representative of the level of police activity that
occurs in the city. Part 1 crimes, which are reported to the FBI from all
law enforcement agencies, include the more serious crimes of homicide,
rape, robbery, aggravated assault, burglary, larceny, motor vehicle theft
and arson. It does not include such things as traffic related issues (crashes,
fatalities, enforcement), suspicious circumstances and disturbances, noise
complaints, unattended death investigations, suicide calls, criminal
mischief, etc. which consume a significant portion of police time and
impact the safety and quality of life in our community. And while the
major crime rate remains relatively low, other factors are driving the need
for more officers. Over the years Police Services has had to strip down
proactive policing model programs (problem solving units which
addressed emerging problems and implemented long-term solutions, e.g.
gang issues) and now works in a reactive mode, with only enough
resources to covers calls for service. We are at a tipping point. If we lose
the ability to problem solve before emergent behaviors become a serious
problem, it will cost exponentially more to regain a safe community.
■ How long will it take to get to the target revenue?
o If the City Council is to refer the sales tax question to the voters and it
were to be approved, the new rate would be implemented in 2011 and the
increase in revenue would be realized throughout the year.
■ If the sales tax measure passes, will you ask for more fees?
o The City staff s recommendation for a 1% increase in the base City sales
tax rate would address the most pressing needs in street maintenance,
police, fire, parks and recreation. There is no intent to request additional
fees at this time. However, we cannot guarantee that into the future as the
1% increase would not meet other big needs in transportation, such as
transit, bridges and regional interchanges.
■ What other options would be better than sales tax?
o City staff reviewed a variety of methods for raising $20+million in
General Fund revenue. These options included sales and use taxes;
1
ATTACHMENT 4
property taxes; payment in lie of taxes (paid on utility bills); and a variety
of fees. Sales tax was selected as the best option because it is most
equitable to individuals and businesses. Additionally, 25% of sales tax
collections are paid visitors and others who live outside the City limits.
■ What is the Gallagher amendment?
o The Gallagher Amendment was adopted inl982 when Colorado voters
approved the measure. The amendment is named for state senator Dennis
Gallagher, who was one of the primary sponsors of the measure. The
Gallagher Amendment divides the state's total property tax burden
between residential and nonresidential (commercial)property. According
to the Amendment, 45% of the total amount of state property tax collected
must come from residential property, and 55% of the property tax
collected must come from commercial property. Further, the Amendment
mandates that the assessment rate for commercial property, which is
responsible for 55% of the total state property tax burden, be fixed at 29%.
The residential rate, on the other hand, is annually adjusted to hold the
45/55 split constant.
■ How did we get to $24M in cuts?
o The reductions were made over a series of budget cycles:
■ 2006 - $14.7 million
■ 2009 - $8.6 million
■ 2010 - $1.2 million
o The reductions came from eliminating more than 150 City jobs, reducing
services, eliminating employee pay raises for multiple years, and delaying
investments in basic maintenance and repair. The complete list of cuts can
be found atfcgov.com/resourcingourfuture. Click on"budget cuts &
efficiencies."
■ How much of the Open Space dollars go for O&M vs. new purchases? Should we
ask voters to switch ratio to put more toward O&M?
o The voter-approved Natural Areas money cannot be used for other
purposes without a public vote to re-allocate those monies. The City
Natural Area revenues are approximately$8 million per year. Annual
operations, maintenance, and capital expenses are about $5 million, which
leaves approximately$1.4 million for debt retirement and $1.6 million per
year for land and water conservation as well as purchase of right-of-way
for the trails system. The Natural Areas program contributes more than
$600,000 annually to the Parks trail system and management of Gateway
and Fossil Creek Reservoir Open Space. Lastly, the County Open Space
tax expires in 2018. If it is not renewed, it will be necessary to budget all
city generated Open Space Yes (OSY) dollars to operations and
maintenance. Reducing Open Space Yes funding now may create a
significant budget shortfall in the future.
■ What cuts will happen if we don't raise revenues?
o City staff is now preparing the budget for 2011 —2012. The bulk of the
$24 million in cuts made up to this point have primarily affected internal
City operations, with some service reductions. At this point, further cuts
2
ATTACHMENT 4
will inevitably mean significant reductions in services in areas such as
parks and recreation and transportation. It is too early to know
specifically what those cuts would be.
Comments
Needs &Priorities
■ Why pay for something we should already have?
o Police, fire, streets and parks/recreation should be priority
■ Not sure additional officers will help with graffiti
■ Consider more narrow streets—would it cost less to maintain that way?
■ Use less pavement to reduce maintenance
Options to Cut More Services
■ Support 1%; but ask for these trade-offs:
o increase reserves
o cut more non-essential services
o pay cuts for employees at all levels
0 furloughs or a day without pay
o everyone share the pain
■ Do not support furloughs
0
Options to Add Resources
■ Consider 0.5% sales tax increase rather than 1%
■ Put together a 20-year plan so we're not coming back multiple times
■ Sales Tax is too variable
■ Looking for City to provide other reasonable solutions besides sales tax
• Concerned that Fort Collins is developing too much; need for more services could
be curtailed by building less; increase building fees; charge for development (goal
is to stop it)
■ Council should consider sending the question about open space back to voters
■ New idea: carbon tax on electricity and gas used in Fort Collins; benefits would
be raise money to reduce carbon
■ Generally inclined to support 1%
■ Support fees to reduce dependence on sales tax
■ Irresponsible for Council not to add fee for street maintenance; should not go to
voters -
o Charge Transportation Utility Fee for local streets on utility bills; use
existing % cent and gas tax to fund collectors and arterials
■ Like the idea of transportation utility fee; would strongly object to monitoring
how much people drive; instead, set fee by weight of vehicle
■ New version of national users fee for people who drive
■ . Support for what appears to be a responsible approach (1% increase)
3
ATTACHMENT 4
■ Do not support charging development to try and stop growth
■ Eliminate sales tax on food
■ Might be more palatable to remove food tax at same time we ask for general
increase
■ Don't like sales tax
■ Support 1% if part is to maintain recreation areas
■ Bicycle licensing fee($5-10/year) could help cyclists pay for some programs
■ Support City; will support 1%
■ If in doubt, let citizens decide by putting it on the ballot
■ Option is not to fund all items; need to reprioritize
■ If need 1%, ask for it; don't become Colorado Springs
■ Add sales tax and fee for internet businesses
■ Legalize and tax recreational drugs
■ Support 1%; challenge to get word out
■ Needs are real; would support 1%
General Comments
■ Don't want sales tax to get so high that it becomes a disincentive to shop here
■ Concerned that City could run into deeper debt
■ Need more people to come to meetings
■ Jerry—will help with campaign
■ Encourage residents to participate in CityWorks 101
u
■ Get this good info in front of more people
■ Stop development; if build, demand solar
■ Get message out about risk of not maintaining roads
■ Citizens get good value here
■ City and County do good job; fed up with federal government; need to remember
that people are at the top of government
4
ATTACHMENT 4
Resourcing our Future
Community Meeting
April 24, 2010
District 2
Questions:
■ What is the current sales tax rate? How much goes to Fort Collins vs. state and
county?
o The overall sales tax rate in Fort Collins is 6.71yo. The City's portion is
3%; the remaining goes to the State and County governments.
■ Would this increase apply to groceries and prescriptions?
o The proposed increase would not be applied to groceries or prescription
drugs.
■ Have we considered re-allocating Open Space money?
o The voter-approved Natural Areas money cannot be used for other
purposes without a public vote to re-allocate those monies. The City
Natural Area revenues are approximately$8 million per year. Annual
operations, maintenance, and capital expenses are about $5 million, which
leaves approximately$1.4 million for debt retirement and $1.6 million per
year for land and water conservation as well as purchase of right-of-way
for the trails system. The Natural Areas program contributes more than
$600,000 annually to the Parks trail system and management of Gateway
and Fossil Creek Reservoir Open Space. Lastly, the County Open Space
tax expires in 2018. If it is not renewed, it will be necessary to budget all
city generated Open Space Yes (OSY) dollars to operations and
maintenance. Reducing Open Space Yes funding now may create a
significant budget shortfall in the future.
■ What is the cost/acre to maintain Open Space/Natural Areas?
o This number varies greatly based on location, condition of the property,
improvements that are on the site, etc. . . . However, if we average all
maintenance, operation and capital costs, the approximate amount is $150
per acre, or about $5 million annually.
■ What's happening with mass.transit?
o In 2007, the City scaled back Dial-a-Ride services and reallocated funds
to cover some of operating expenses for two additional fixed route bus
routes. General Funds were also increased to fund the new bus service on
Timberline and East Harmony. However, in the past two years, transit
funding has been cut by over$200,000 through reduced support from the
General Fund of the City.
■ Consider development fees:
o Do they truly cover costs? Are they at correct level?
■ The City is currently evaluating our overall fee structure for
development. The staff s opinion is that our fees are in-line with
the costs that are incurred due to new development, but we are
confirming this through an updated study that will be completed by
July 2010.
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■ Are fees (i.e., Transportation Maintenance Fee or Park Maintenance Fee) required
to go on the ballot?
o Fee increases are not required to go on a ballot for a community election.
■ Have City employees taken appropriate cuts? Should salaries be reduced further?
o The City has taken several significant measures to control salary and
benefits costs including:
• No employee raises in 2004 & 2005 (except sworn police) and no
pay raises in 2010 (except some skills employees)
■ Changed pay philosophy from paying at 70th percentile to paying
at market (market includes public and private sector companies)
■ Significant changes to employee healthcare benefits—in 2007,
major restructuring of health care plans (two choices instead of
four; employees bear greater out of pocket cost burden)
■ Employees with dependents pay higher percentage of premium
cost (now pay 30% as compared to 15% in 2005)
■ Eliminated retiree health care benefits (medical, dental, vision)
Jan. 1, 2010
■ Reduced City contribution for pension from 7.5% to 6.5% for
employees hired April, 2007, or later.
■ Do we really need $21 M since the needs only add up to $16.5M?
o The City has significant additional transportation needs including:
■ Bridge replacement of nearly$2 million a year
■ Major capital improvements (I-25/Prospect & I-25/Mulberry
Interchanges, LemayNine Intersection) that are not funded
• ■ Transit Master Plan implementation—phase I costs over$3 million
■ What is the cost to Poudre Fire Authority (PFA) of having fire trucks respond to
emergency medical calls? Is this a duplication of service, and do they really need
to follow ambulances?
o The PFA Emergency Medical Services (EMS) is an extremely cost-
effective service provided to the citizens of our district. Because the
structure, equipment and staffing already exist, PFA can provide quality
EMS response as a value added service with little additional cost. In
2009, the cost was $68.24 per EMS incident, for a total of$620,976. This
equates to 3.38% of the Operations Budget. The elements of a good
Emergency Medical response include the swift response to an emergency,
appropriate care and, when needed, rapid transport to the appropriate
facility. The PFA EMS service does not duplicate services provided by
Poudre Valley Health Systems (PVHS) EMS which provides advanced
life support care and transport services. PFA has 10 career stations staffed
24 hours/day and 3 volunteer stations, which assures a consistent and
secure basic life support (BLS) response for our citizens in the most
efficient and effective manner possible.
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Comments
Needs &Priorities
■ Mass transit is vital
■ Roads need major attention
o Fort Collins and State (I-25)
■ Street maintenance has never been funded to appropriate levels
■ Police Services: if not enough staff, crime stats will be low because not enough
reporting; stats does not necessarily equal true picture of crime
■ Perception is that lowest level of parks maintenance is mismanaged
o i.e., drive-by litter; two people checking sprinklers when one could do it
(by Kruse; Cottonwood, Golden Meadows)
Options to Cut More Services
■ Limit#of city staff at meetings
■ Shifting costs to private sector
■ Look at areas we do "different" than others (i.e., cut Climate Action Plan)
■ Ask public to rate services by importance and performance (tool to voters)
o Make sure we have solid data to make decisions
Options to Add Resources
■ Let us vote on this issue!
• Smaller sales tax increase would be OK (0.5%)
■ Question length of time for this tax. Should it be in perpetuity or X#of years?
• Sales tax increase should not apply to food
■ Perception is that all government spending(federal, state, city, local) is tied
together; people are upset, which will impact the City asking for tax; question if
timing is right
■ 20% increase in General Fund does not seem reasonable
■ Push for Council to let us vote
■ Put 10-year time limit rather than in perpetuity
■ Consider splitting next money by percentage, not dollar amount (i.e., X% to
police, Y% to bridges)
■ Do something about the mall
■ We need to have shopping centers here to capture retail money—higher-end retail
General Comments
■ I believe this city has done a pretty good job of getting a handle on things with the
new budgeting process and looking a where and what to cut.
■ Stop doing things we're not doing well, including policy decisions with negative
impacts
o consequences to some policy decisions (Walmart, Centerra, I25/Prospect)
• Believe Council should have put safety tax on earlier during better times
■ Appreciate great work so far and public involvement
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Resourcing our Future
Community Meeting
April 30, 2010
District 3
Questions:
■ Are we actually saving money or have we simply prevented expenses?
o The reductions were made over a series of budget cycles:
■ 2006 - $14.7 million
■ 2009 - $8.6 million
■ 2010 - $1.2 million
o These reductions have been driven by declining revenue. The reductions
came from eliminating more than 150 City jobs, reducing services,
eliminating employee pay raises for multiple years, and delaying
investments in basic maintenance and repair. The complete list of cuts can
be found atfcgov.com/resoureingourfuture. Click on"budget cuts &
efficiencies."
■ What % of total City employees were laid off?
o 150 full time positions, approximately 10% of the City's workforce, have
been eliminated from the City's general fund operations since 2006. This
percentage drops slightly if you factor in our seasonal workforce, which
increases during summer months for parks maintenance, lifeguards, etc . . .
■ How much of the revenue decrease comes from Walmart moving outside City
limits (to Timnath & Loveland)?
o The City has confidentiality agreements with all businesses that hold a
sales tax license. Consequently, we are unable to release the specific
amount of sales tax reduction that has resulted from the Wal-Mart in
Timnath being open.
■ Have benefits (401K) changed for director-level positions?
o The City has reduced retirement contributions. Beginning in April 2007,
all new employees receive a 6.5% contribution to their 401k from the
City; employees hired prior to that time receive a 7.5% contribution.
o Senior management positions (those individuals who report directly to the
City Manager) receive a 10% 401k contribution from the City. This
amount has not changed.
■ What electronic options are provided to get information from the City?
o The City relies heavily on electronic communication. Our website
(fcgov.com) has a significant amount of information on City programs and .
services. Through the website, you can also sign up for electronic utility
billing, electronic recreation class registration and a variety of e-
newsletters.
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■ What is the 2010-2011 budget compared to 2008-2009?
o The General Fund revenue is as follows:
0 2007 - $108 million
0 2008 - $103 million
0 2009 - $99 million
0 2010 - $99 million
■ It is true that the City General Fund is $120 million, not $100 million?
o No. The adopted budget for 2010 includes $99 million for General Fund
Revenue. Over$2.6 million in reserves are used as part of the budget
which brings the total 2010 budget to $102.1 million.
■ Does City become liable for paying taxes when purchase open space in City?
o The City does not pay property taxes on the real estate assets that it owns.
■ Clarify how the Police Services building came about.
o The Police Department was housed in a building that was built in the
1950's. Over time, the Police Department had grown in an attempt to keep
pace with the needs of the community but had reached a point where the
building was overcrowded and unable to meet the Department's current or
future needs. For nearly two decades, a new Police Headquarters that was
flexible enough to meet the public safety needs of a growing community
was identified as a top priority. The City recognized that a portion of the
revenue stream, which was growing at that time, should be utilized to meet
this need. In 2004, Certificates of Participation (COPS) were issued when
financing was favorable (interest rates range from 3.00 % - 5.375%). The
annual financing requirements for the$34 million facility are $2.6 million.
These payments are funded by a combination of General Fund dollars and
a dedicated capital expansion fee on new development. The COPS will be
paid off in 2026. .
Comments
Needs &Priorities
• Streets starting to deteriorate; already safe; really enjoy parks & recreation—
Senior Center is best ever.
• Transfer monetary funds to basic services that are important to the entire
community and reduce budgets or increase/add fees to those that are not
Options to Cut More Services
■ Consider repurposing Open Space
■ Voters have overwhelmingly approved open space; Council doesn't have right to
try and overrule.
■ Make more cuts
■ Understand that small cuts won't add up to enough,but perception is reality(i.e.,
meals, buses, scorecards)—still need to cut all the "small stuff."
■ Cut paper when sign up for electronic communication (i.e., Power to Save
statements).
■ Concerned that City wastes money(ex: Soapstone, Power to Save); spend more
carefully.
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■ Use volunteers more extensively.
■ Have cap on how many times we arrest/spend money on someone who breaks the
law.
■ Sick pay(banking) &401 contributions are extravagant and an unfair burden on
the taxpayer and our community's health
Options to Add Revenues
■ Sunset the increase after 5 years. Concerned that when economy recovers there
will be extra discretionary money.
■ Should earmark the money for specific purposes (street maintenance, police, fire,
parks & recreation)
• Citizens who lose jobs have no place to go for money; bad example for
government to ask to raise taxes when everyone else is living on less.
■ Fill gap by charging higher fees (i.e., golf).
■ Citizens should be the ones to put sales tax increase on ballot rather than it being a
City initiative.
■ Council should consider putting a ballot measure on to transfer a portion of other
funds to priority needs.
■ Think about other tax proposals that are coming(i.e., PSD); watch out to not get
too high.
■ Can maybe support if earmarked.
■ Concern is that new resources need to stay focused on priority areas.
■ Diversified options for new revenue should be considered; sales tax is too one-
dimensional.
■ Put special tax on medical marijuana on ballot.
■ Increase Payments in Lieu of Taxes (PILOTS).
■ Property Assessed Energy Improvement Loans on ballot.
■ City has done outstanding job; want to keep it that way
■ If you need increase, ask for it.
■ No way—don't support 1% increase.
■ Ditto—left New York because of taxes, don't want to happen here.
Don't support increase.
■ Support increase, but be creative.
■ Absolutely support increase, family chose this quality of life; time to support
services by increasing revenue.
■ Difficult economic period, but will support because want to keep quality of life;
can't have it both ways.
■ Don't support; don't believe we're at breaking point yet.
■ Looking for new paradigm; can't keep asking for more taxes
■ Support increase; important
■ Yes; if in doubt, leave it to the voters
■ At breaking point on street maintenance and police; support asking for increase
■ Sell assets
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General Comments
■ Need to consider how revenue was shrinking at the same time cuts were being
made.
■ Citizens are upset about new Police building, 215 N. Mason St., Mason Corridor,
Soapstone—things voters had no choice about.
■ Concerned about local business; OK to protect against Walmarts and big boxes.
■ Trust Council to know when something needs to go to ballot.
■ Should be more people here to discuss.
■ Need to determine what the breaking point is. When will citizens say we are
hurting enough?
■ Plan Fort Collins—concerned that we are planning out 100 years when need to be
focused on now.
■ Some people choose to live here because taxes are lower.
■ Open spaces should be closer to home.
■ Reduce citizens' dependence on government services that are not shared by the
entire community—individuals need to move where the jobs are.
■ Provide cafeteria-style budget.
■ No to detox center.
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Resourcing our Future
Community Meeting
May 2, 2010
District 4
Questions:
■ How do County needs impact this request? How many total ballot items are
expected?
o It is not clear yet how many tax initiatives there may be. From early
discussions, it appears that Poudre School District will have a tax
proposal. It is not clear if there will be County and State questions.
■ Sales tax is regressive—is there anything that would go along with this to help
those in greatest need?
o The proposed sales tax increase would not apply to groceries and
prescription drugs. In addition, the City has established a grocery sales tax
rebate program for the portion of the existing sales tax that is applied to
grocery sales.
■ Is city too reliant on retail?
o Currently, 60% of the City's General Fund budget comes from sales and
use taxes; 15% is from property tax, and the remaining 25% is from fees,
charges, and interest. In Colorado, this is a typical municipal funding
model. The City's economic strategy focuses on job retention and
creation, as well as retail retention and expansion.
■ Companies have taken greater than 4% cuts; have we cut everywhere we can?
o The City has reduced more than $24 million from its budget and
eliminated 10% or 150 full time employees. The complete list of cuts can
be found atfcgov.com/resourcingourfuture. Further cuts can always be
made; however, at this point, those cuts will result in significant service
reductions. The City is asking residents to help identify which services
they believe should be reduced.
■ Growth rate for police and fire in budget? How does this compare to revenue
allocations?
o Over the same time frame, General Fund revenue has declined.
Allocations for police and fire have been maintained and increased at the
same time that allocations were being reduced in other areas. Since 2005,
funding for Poudre Fire Authority has increased 30%; funding for Police
Services 20%. The majority of this increase was to cover increased
personnel costs.
■ Where do food expenses go?
o The City spends money on food in several areas: food that is provided to
members of the public or participants and are part of an overall program
(like Recreation), meals for employees when they are traveling on City
business, food for Board and Commission meetings, and food for business
meetings that occur during work hours. Overall the City spends around
$350,000 per year on food. Of that amount, nearly$180,000 is spent City-
wide on meals when employees are on business travel. The remaining
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amount is spent on Board and Commission meals ($24,000), City Council
meals ($23,000) and recreation programs where meals are part of the
registration fee($40,000). The remaining $90,000 is spent on business
meals for employees.
■ Provide info on what other cities have police take-home vehicle policy, and costs
to cities, and info on changes to city's take-home policy.
o Several area public safety agencies have take-home car policies, including
the City of Loveland, Larimer County, the Colorado State Patrol and Weld
County. The City of Fort Collins did make several changes to our policy
which were implemented at the beginning of 2010. Officers and
community service officers are now billed a mileage fee to drive the cars
to and from their residence if they live outside of the city limits. If they
live further out than 15 miles from Mulberry and College, they are not
allowed to take home a City police vehicle. Additionally, officers can no
longer use the car, off-duty, if they are not pursuing a business need. The
take home car policy affords many benefits to the community, most
notably increased visibility and response. Officers must continue to
provide police services while driving the vehicle in an off-duty capacity.
Comments:
Needs &Priorities
■ Don't like potholes; willing to pay for transportation.
■ Needs appear to be related to growth not paying its own way.
■ At a breaking point in street maintenance.
Options to Cut More Services or Reduce Costs
• Consider partial closures of recreation centers (day by day)
• Want to see employees give more; suggest 5 -6 % reduction in pay
• Treat needs similar to household budget; cut out extras.
• Less frequent mowing of parks.
• Cut coffee for employees.
• Consider reducing lighting in neighborhoods.
Options to Add Resources
■ Consider 1% increase for 4-5 years rather than permanently.
■ If economy recovers, have automatic way of curtailing tax increase.
■ Consider making roads a utility and add fee for road maintenance.
■ Maintenance costs will never go down; stop saying taxes are bad; need to pay for
services.
• Costs are for ongoing maintenance; concerned that City does not adequately look
ahead
■ Consider increasing development fees.
■ OK with 1% increase, but concerned about how money is being spent.
o i.e., police take-home policy, busses
o Mason Corridor is pet project—may not be appropriate during"rainy day"
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■ Should put on ballot (11)
o Need to give people option.
o Don't want quality of life to be reduced
o Let voters decide
o Write to tie with income(revenue) to City; don't want excess.
o Concerned for impact on lower income; look for smaller cuts; people like
quality of life
o Look at priorities and still limit spending
■ Timing is hard; people won't get to vote on Budget A or B; need to focus on
education
■ Be careful about overpromising how funds will be used; tough anti-tax sentiment.
■ Add sales taxes and fees on the internet to level playing field with brick and
mortar businesses.
■ Legalize all recreational drugs, tax, regulate heavily and let private sector open
recreational drug stores, including alcohol.
■ Increase sales tax by a penny.
■ Water storage, nuclear and algae farm at Rawhide—vertical tube reactor
■ Make roads a utility with fees.
■ Mine the landfill.
General Comments
■ Because sales tax rate is a percentage, people still pay more as cost of living goes
up.
■ Fort Collins is the only city that taxes boats on trailers.
■ Build bridge from middle out, rather than starting on ends and not connecting.
• Clarify timeline for decision-making.
• Concerned that Richard's Lake neighborhood doesn't receive all City services
■ Thanks for having these open forums.
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Resourcing our Future
Community Meeting
April 21, 2010
District 5
Questions:
■ As we prepare the 2011/2012 Budget, what revenue assumptions are we using
(with or without tax increase)?
o The 2011/2012 Budget does not assume additional revenue from a tax
increase. Current projections are that sales and use tax will increase
approximately 1 — 1.5%, slower than the Consumer Price Index.
■ Are we doing anything to restore reserves?
o The City has only used reserves to support ongoing operations in three
areas: the development review center($300k); transportation ($500k); and
recreation ($850k). All the funds (like an individual checking account
used to track revenue and expenses) are meeting minimum requirements.
The General Fund reserves are currently$4.5M above the $17 million
minimum requirement.
■ Can you provide a complete list of efficiencies?
o We have updated the handout with additional examples regarding
efficiencies. The complete"Stop Doing" list of budget reductions
(efficiencies and service cuts) is posted atfcgov.com/resourcingourfuture.
■ Why is the City leaning toward a sales tax increase rather than a property tax
increase?
o There are multiple reasons. Approximately 25% of the total sales and use
tax revenues are from visitors and people who live outside the city. In
addition, due to prior state laws and initiatives, a property tax increase
would place a disproportionate amount of burden onto businesses.
■ Does the Natural Areas fund have dollars in reserve? How much, and can Natural
Areas money be used for something else?
o The voter-approved Natural Areas money cannot be used for other
purposes without a public vote to re-allocate those monies. The City
Natural Area revenues are approximately$8 million per year. Annual
operations, maintenance, and capital expenses are about $5 million, which
leaves approximately$1.4 million for debt retirement and $1.6 million per
year for land and water conservation as well as purchase of right-of-way
for the trails system. The Natural Areas program contributes more than
$600,000 annually to the Parks trail system and management of Gateway
and Fossil Creek Reservoir Open Space. Lastly, the County Open Space
tax expires in 2018. If it is not renewed, it will be necessary to budget all
city generated Open Space Yes (OSY) dollars to operations and
maintenance. Reducing Open Space Yes funding now may create a
significant budget shortfall in the future.
■ Will we pursue only one new revenue option?
o This is a decision for City Council, and one that cannot be answered at this
time. As indicated, the 1% sales tax proposal does not include funds to
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address other needs in transit, bridges, regional intersections and other
road projects. City Council will consider the input from the Resourcing
Our Future meetings as they make a decision about whether to place a
revenue question on the ballot and, if so, the specifics of that measure.
• What happens if the economy turns around? Will the City then,have excess
money?
o The economy will improve at some point, but all evidence is that
consumer spending will not return to its unsustainably high level of the
mid-2000's. So even though revenues will improve over the next few
years, this improvement will not come close to covering the $20M+
immediate needs the City is facing.
■ Do we own mineral rights on City land? Can we use our natural resources
differently?
o The City does not own the mineral rights associated with our open space.
■ How much would it save (including staff time) if we eliminated Utilities rebates?
o The rebates in question come from federal, state and local sources within
our utilities. Freeing up funds by reducing or eliminating rebates would
not provide any benefit to the General Fund which is the area experiencing
the immediate need for additional revenue. The impact to the Utilities
budget would be a reduction in revenue requirements of approximately
$2.5M; however, this reduction would have a significant impact on
Utilities' ability to meet Climate Action Plan goals as well as Energy
Policy goals.
■ What percent of the police budget is spent on social care?
o We do not allocate dollars specifically to social care, although arguably it
is represented in every operational dollar that we spend. Police Services
deals with domestic violence, substance abuse, mental health,
homelessness and children's issues. There exists no effective way to break
out social care dollars independently. However, it is threaded throughout
the entire array of police services.
Comments
Needs &Priorities
• Perception that City budget is funding wants rather than needs
o Priorities should be police & fire
■ Unconvinced of need for police and fire based on Council work session
presentation
Options to Cut More Services or Reduce Costs
■ Talk about possibility of redirecting part of Open Space tax
Options to Add Resources
■ Looking at needs; support more resources to meet needs
■ Support 1% sales tax; it's a"must"to maintain competitiveness in region
■ Must continue to focus on economy
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■ 1% seems reasonable, but need to keep it tight; think about impact on businesses
and families
■ Stay flexible; support will go up if consider 0.5% or smaller amount
■ Recognize that PSD and County also will be coming to voters
■ Concerned about impact of tax on poor
■ If in doubt, let voters decide, not vocal minority
■ Investment in future is critical
■ Want to use municipally-owned electric and water to supplement City general
fund
o Increase prices for electricity or tax them
o Think outside the box for different revenue; diminishing returns for taxing
commerce; regional gas tax
General Comments
■ City Code 8-158: restricts what info Purchasing can provide; makes it difficult for
local businesses to submit proposals
o Review policy: could result in more competitive bids and reduced costs
■ Publicize future meetings more
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Resourcing our Future
Community Meeting
May 1, 2010—a.m.
District 6
Questions:
■ Other than the economy, what are the reasons for the budget shortfall?
o Fort Collins had been impacted by several significant economic issues:
■ The technology bust and loss of high wage jobs in 2002 and 2003
■ The rise in online/Internet-based sales and loss of sales tax
■ The opening of Centerra in Loveland and two regional Wal-Mart
stores
■ The 2008 and 2009 economic downturn
o At the same time, needs continue to grow. The amount of resources are
simply not enough to keep pace with the increasing demand for service.
■ Is a 1% sales tax increase not a value-added tax (VAT)?
o Sales taxes and value added taxes (VATS) act similarly but are different.
The most significant one is that VATs generally apply to services where
sales taxes do not. Additionally, local governments cannot implement a
VAT. This would be something implemented at the federal level.
Following is a more detailed explanation:
■ VAT is assessed and collected on the value of goods or services
that have been provided every time there is a transaction
(sale/purchase). The seller charges VAT to the buyer, and the seller
pays this VAT to the government. If, however, the purchaser is not
an end user, but the goods or services purchased are costs to its
business, the tax it has paid for such purchases can be deducted
from the tax it charges to its customers. The government only
receives the difference; in other words, it is paid tax on the gross
margin of each transaction, by each participant in the sales chain.
■ Sales tax is normally charged on end users (consumers). The VAT
mechanism means that the end-user tax is the same as it would be
with a sales tax. The main difference is the extra accounting
required by those in the middle of the supply chain; this
disadvantage of VAT is balanced by application of the same tax to
each member of the production chain regardless of its position in it
and the position of its customers, reducing the effort required to
check and certify their status.
■ How many new vehicles did the City buy last year?
o The City has more than 1,000 vehicles in its fleet. We replaced 49
vehicles last year. All had 90,000 - 500,000 miles on them.
■ 20 Police vehicles
■ 11 Pickups/Vans
■ 4 Medium trucks
■ 7 Heavy-duty trucks
■ 7 Transit buses
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■ Could police and fire be combined with City/County?
o Fire Services are already combined with the County through the Poudre
Fire Authority. Police Services also partners with regional entities.
Examples include 911 emergency dispatch, the Larimer County Drug Task
Force, and partnerships with Colorado State University police.
■ What do we spend on salaries? What were the salaries for the positions that were
eliminated?
o The City spends $85.5 million on salaries across the organization.
Salaries in the General and Transportation Funds, where the bulk of the
staff reductions have been made, total approximately$40 million. The
average position in the City has a total cost (i.e. salary and benefits) of
$65,000. Using this average, the City reduced compensation by$9.8
million by eliminating the 150 positions.
• Did employees get pay cuts when compared with market?
o No, employees have not received pay cuts. Employees have experienced a
merit pay freeze; no cost of living adjustments. The City identifies the
target market pay to be the midpoint of each pay range. As of the
beginning of April 2010, over 300 employees' pay falls below the
midpoint (target market) of their pay range. Therefore, these employees
are not paid at market.
■ What is the process for defining the market?
o A market analysis is conducted every year. Salary data is gathered from
both private and public sectors for benchmark jobs from published surveys
such as Mountain States Employers Council surveys. Benchmark jobs are
those jobs where pay comparisons can be made to comparable jobs from
other organizations. The City has established the Front Range of
Colorado, from Fort Collins to Colorado Springs, as its market. The Front
Range is where the City primarily recruits for vacant positions.
■ Without federal tax, would bus system collapse?
o The City receives $5 million annually from the federal government,
approximately half the funds necessary to operate the Transit system. The
system could not be operated without this funding. In recent years, the
federal funding formula has changed; the majority of federal funds are
now dedicated to capital equipment (fleet replacement) and local
governments are required to bear the majority of operations costs.
■ Why not have smaller buses?
o The Transfort fleet includes a variety of sizes of buses; with capacities
ranging from 28 to 45-seated passengers. This flexibility enables staff to
assign smaller buses to high frequency routes that carry a steady stream of
passengers while the larger buses serve the high ridership routes, such as
the routes that serve the university. The size of transit vehicle used on a
route is determined by the maximum number of riders expected at any
point on the route; however, it is highly unlikely that the bus will be at
capacity throughout the route. In fact, it is desirable to have capacity at all
times, so that passengers are never denied service.
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Comments
Needs &Priorities '
■ Painful that we have cut Dial-A-Ride.
■ Do not cut more services! Fort Collins needs to grow and improve to survive.
■ We will be in dire straights if we don't fix streets and maintain adequate police
staffing
Options to Cut More Services or Reduce Costs
■ Not convinced that employees are paid competitively; believe salaries are too
high.
■ Families are adjusting down, City needs to as well; cut soft stuff.
■ Pooling for IT and health care benefits.
Options to Add Revenues
■ Ask voters to double '/<-cent for street maintenance. Present two ballot measures
—one dedicated to transportation & a smaller amount (less than 1%) for general
services
■ Consider decoupling the four areas of needs and allocating in a"vote for A-D"
model vs. one general increase
■ Could support tax increase; maybe not 1%
o think about PSD and County
o willing to pay higher fees (i.e., Senior Center)
■ Love quality of services; concerned that sales tax is regressive, but would support
it because people who are poorest would also bear the brunt of service cuts.
■ Next set of cuts would be harder; appreciate Council going out to community
o coordination with PSD and County very important
■ Take question to the voters, let them choose
■ City feeling impact of new worldwide economic reality
o critical that we talk about tax increase; can't put head in sand
o taxes = services
o tradeoffs of paying taxes vs. other costs (i.e., insurance)
o think long-term
■ Look at concept of RTD model for other entities (City, County, PSD); different
taxing system.
■ I am in favor of the 1% sales tax as presented today.
■ Put it on the ballot (16 people)
o Pay attention to what PSD and County are doing
o Need to preserve infrastructure
o Rather pay City than insurance companie
o Let voters decide
o Combine with increased fees for recreation
o Want to preserve quality community
o Need more people to be informed and engaged; must invest in future of
community
23
ATTACHMENT 4
■ "Strong maybe" to putting question on ballot (1 person)
■ Undecided about whether now is time to put on ballot (2 people)
o Need to explore all options and consider a smaller increase
o Need funding for mass transit needs; not convinced we've tightened
enough in other areas
■ Don't put on ballot, cut other things (1 person)
General Comments
■ City has done a lot; new normal is not level revenue, it's shrinking
o we can't isolate ourselves from larger financial woes
o think triage
■ Don't want taxpayer money used to incubate new homes.
■ Ask lower level employees what changes they would make to do job better/more
efficiently; offer incentives for continuous improvements to find efficiencies.
■ Highly recommend CityWorks 101 —employees take pride in their work
■ Don't see City and County working together.
■ Offer CityWorks 101 more frequently
24
v
ATTACHMENT 5
City Manager's Office
Cl$}/ O� 300 LaPorte Avenue
F6rtr Collins PO Box 580
Fort Collins,CO 80522
970.221.6505
970.224,6107-fax
tcgov.com
April 27,2010
Ms. Becky Dixon, Executive Director
Character Council
P.O. Box 271427
Fort Collins,CO 80527
Dear Becky,
It is time for an earnest conversation about the type of community we'd like to be and how we're going to
accomplish that vision. On behalf of City staff, we would greatly appreciate the opportunity to speak with your
group about this topic.
As a community, we need to determine how to address our critical and unfunded needs in Street Maintenance,
Police, Fire,and Parks and Recreation.
Over the last five years,the City has eliminated lower-priority services and aggressively pursued ways to make our
local government more efficient. We've cut nearly$24 million of planned and existing expenses, including
eliminating more than 150 jobs. Despite efforts to cut-costs and operate more efficiently,City revenues are not
keeping pace with the demand for basic City operations and services.
Ultimately, our choices boil down to making further significant cuts to City services or pursuing new revenue
sources. The Mayor and City Council asked staff to conduct a comprehensive community dialogue to collect your
thoughts and ideas about these choices.
During these types of important community discussions, we think it's valuable to share information in person. If
you would like to schedule a presentation for your group,please contact Christine Macrina, cmacrina@fcgov.com or
221-6763.
This discussion about resourcing our future is only one of many City initiatives taking place in 2010. City staff is
also available to speak about numerous other topics, including:
• Plan Fort Collins(update to City Plan&Transportation Master Plan)
• Mason Corridor
• Utilities of the 21"Century
• Economic Activities
• Midtown Commercial Corridor Study
• Fort Collins Conserves
• Summer construction projects(College&Harmony,College&Willow,downtown sidewalks)
Thank you for your consideration and we look forward to the opportunity to speak with your group soon.
Sincerely,
Darin Atteberry
City Manager
ATTACHMENT 6
Resourcing Our Future
Consideration of an Ordinance
Calling a Special Election for
November 2 , 2010
City Council Meeting
June 15 , 2010
Fort Collins
1
Presentation Agenda
• Background
— How we got here and what we ' ve done
• Overview of the needs
— Police Services
— Poudre Fire Authority
— Transportation — Street Maintenance
— Parks and Recreation
• Closing & Discussion
CI of
Fort�lns
2
1
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
3
y $200 Net Revenue in Governmental Funds
0
$180
$160
$140
$120
$100
$175 $174 $181
$80 $150 $162 $162 $150 $163 $168
$155
$60
$40
$20
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
City
mt fQ Uns
4
Does not include proceeds from debt financing (bonds, etc)
2
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
Fort Collins
5
What We 've Done
HOUSE IN JAPPROPRIATERESOURCING
ORDER ROLE IN THE• • MY • - FUTURE
Since 2005: Supporting job creation "an
Cut nearly $24 million through: needs in:
of planned and existing - Enabling start-ups and - Street Maintenance
expenses entrepreneurs - Police
Eliminated more than 150 - Supporting target industries - Fire
city jobs - Business retention/ - Parks & Recreation
• Aligned employee salaries expansion • Second lowest sales tax rate
with market • Implementing Economic among comparable cities
• Restructured & reduced Action Plan • Base sales tax rate has
employee benefit plans • Retail retention & expansion not increased in 28 years
• Ongoing commitment to • Improved Development ( 1982)
efficient service delivery Review process
• Created North College
Urban Renewal Authority
3
SALES TAX RATE COMPARISONS
If Fort Collins were to increase its sales tax by 1 %, we would
still have one of the lowest rates along the Front Range.
10%
8%
_ loi�
s%
4%
T%
0
���`�C'����J�S�\�S ��•Q0Q0 �\��O ��POOJ�O����O� ��0�0�4� S�\��O��Q�
7
C
Summary : Resourcing our Future
Pressing Needs
— Police : $4 . 6M annually ( $ 5 . 5M needed year one )
— Poudre Fire Authority : $ 3 . 2M annually
— Transportation/street maintenance : $ 6 . 5M
annually*
— Parks and Recreation : $2M annually
* Does not include transit, bridges & capital projects
Fort Collins
8
4
Tonight ' s Action
• The ordinance calls the special election only
• The ordinance does NOT set the ballot language
• In order for the ballot measure to continue to move
forward after tonight , City Council will have to discuss
and finalize ballot language
For- It Collins
9
Closing
ory of
olllns
10
5
ORDINANCE NO. 080, 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
CALLING A SPECIAL MUNICIPAL ELECTION TO BE -
HELD IN CONJUNCTION WITH THE NOVEMBER 2, 2010
LARIMER COUNTY GENERAL ELECTION
WHEREAS, the City Council may wish to place one or more ballot measures before the
voters in November at a special election to be held on November 2, 2010, in conjunction with the
Larimer County General Election; and
WHEREAS, while the City Council may, by resolution, submit any question or proposed
ordinance or resolution, or submit any initiative or referendum measure, to a vote of the people at
a regular or special election at any time prior to the statutory deadline to certify ballot content to the
County Clerk, the decision to call a special election must be made by ordinance at an earlier date;
and
WHEREAS, for the foregoing reasons, the City Council wishes to call a special municipal
election on November 2,2010,to be held in conjunction with the Larimer County General Election,
for the purpose of submitting to the electorate of the City any ballot issues approved by the City
Council prior to the deadline for certifying ballot content to the Larimer County Clerk and Recorder.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That a Special Municipal Election in the City is hereby called for Tuesday,
November 2, 2010, which shall be held in conjunction with the Larimer County General Election
and conducted in such form as shall be determined by the Larimer County Clerk and Recorder.
Section 2. That the provisions of the Uniform Election Code of 1992 are hereby adopted
with respect to the conduct of said election in lieu of the provisions of the Municipal Election Code
of 1965.
Section 3. That,notwithstanding any provision in the State Statutes to the contrary,the
City Council may, by resolution, submit to the voters at said election any citizen-initiated or City-
initiated measure that complies with the requirements of the City Charter, irrespective of the nature
of such measure.
Section 4. That the City Clerk is hereby directed to certify the ballot content for the
Special Municipal Election to the Larimer County Clerk no later than September 3, 2010.
Section 5. That the City Manager is hereby authorized to enter into an intergovernmental
agreement with Larimer County for conduct of the election, pursuant to Section 1-7-116(2) of the
Colorado Revised Statutes.
Section 6. In the event that the City Council does not take action by resolution prior to
September 3, 2010 to submit any ballot measures to the voters at the November 2, 2010 Latimer
County General Election, the election provided for herein shall be cancelled and the provisions of
this Ordinance shall be of no further force and effect.
Introduced, considered favorably on first reading, and ordered published this 15th day of
June, A.D. 2010, and to be presented for final passage on the 6th day of July, A.D. 2010.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 6th day of July, A.D. 2010.
Mayor
ATTEST:
City Clerk