Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/11/2007 - CITY MANAGER'S 2008-2009 RECOMMENDED BUDGETDATE: September 11, 2007 STAFF: Darin Atteberry Mike Freeman WORK SESSION ITEM FORT COLLINS CITY COUNCIL SUBJECT FOR DISCUSSION City Manager’s 2008-2009 Recommended Budget. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED The discussion of the Budget will take place during four work sessions in September and October. This work session will provide an overview of the City Manager’s 2008-2009 Recommended Budget. Included will be a review of revenues, allocations and the assumptions included in the Recommended Budget. In addition, staff and Council will begin reviewing the first three Results Areas covered in the Budget document: • Economic Health • Environmental Health • Neighborhood Livability Staff will seek feedback on the following questions: 1. Does City Council have any questions or concerns about the assumptions which are included in the Recommended Budget? 2. Does City Council have any initial recommendations regarding items included in the first three Results Areas (Economic, Environment, and Neighborhoods)? 3. What additional information would be helpful to Council in preparation for the September 25 work session? BACKGROUND The Recommended Budget is organized around seven Council approved Result Areas or Outcomes that citizens want and need: Economic Health Fort Collins has a healthy economy reflecting the values of our unique community in a changing world. Environmental Health Fort Collins creates, maintains and promotes a healthy and sustainable environment with an adequate, high quality water supply. September 11, 2007 Page 2 Safe Community Fort Collins is a safe place to live, work, learn and play. Neighborhood Livability Fort Collins improves the livability, choices, and affordability of our neighborhoods. Cultural and Recreational Opportunities Fort Collins provides diverse cultural and recreational opportunities that foster physical and mental well-being for community members. Transportation Fort Collins improves the safety and ease of traveling to, from, and throughout the city. High Performing Government Fort Collins is a model for an entrepreneurial, high quality city government. In developing the Recommended Budget, staff has continued to use the BFO process because it achieves a number of goals: • Creates clarity in the budget process for the community • Allocates revenues to highest priorities and the outcomes citizens want and need • Understands the trade-off between services funded and unfunded • Emphasizes accountability, efficiency, innovation and partnerships. Budget Highlights The 2008-09 City Manager’s Recommended Budget is a financial and service plan linked to the seven key outcomes and results that matter most to our citizens. Some key highlights of the City Budget include: 1. The total Budget for all City funds for 2008 is $568 million and for 2009 is $536 million. (The total Budget is lower in 2009 because of a major one-time expense in 2008 for the Mason Corridor Project) 2. The Budget includes no tax increase. 3. The tax revenue projections for 2008-09 are based on formulas developed and reviewed with City Council in May 2006. Sales and use tax is projected to increase by 2.03% in 2008 and 2.63% in 2009. 4. Minor inflation oriented fee adjustments are included for several programs. For example, the Recreation Division will make its typical market oriented inflationary adjustments to its user fees to reflect increased costs for hourly employees and supplies. 5. Wastewater rates will increase 12% in 2008 and 11% in 2009. Electric rates are projected to increase 2.3% to 2.7% in response to increases from Platte River Power Authority and ongoing operation increases within Light and Power. September 11, 2007 Page 3 Net Operating Budget (In Millions) 2007 2008 % Change 2009 % Change Net Operating $320.1 $337.3 5.4% $350.9 4.0% Debt $24.3 $23.9 -1.6% $26.2 9.6% Capital $33.0 $105.7 220.3% $58.6 -44.6% Total Net City $377.4 $466.9 23.7% $435.7 -6.7% Internal Transfers $95.1 $101.4 6.6% $100.6 -0.8% Total City Budget $472.5 $568.3 20.3% $536.3 -5.6% 6. The Recommended Budget includes no reductions in force. Several vacant positions were eliminated as departments worked to develop offers which were lean, efficient and targeted at the services citizens want and need. The Budget Overview section of the Recommended Budget, beginning on page A – 8, includes more detailed information about the Budget Assumptions which were used in developing this recommendation. Also, the summary tables, which begin on page A -13, include more detailed information about total revenues and expenditures in all funds. Citizen Involvement An upcoming step in this Budget process will be to seek additional input from residents regarding the Recommended Budget. This year, more community involvement was added at the beginning of the Budget process by conducting a workshop with citizens and Boards and Commission members in May. That workshop identified issues and priorities that were important to address in the 2008-09 Budget. The various Results Teams were able to use that citizen feedback in developing their funding recommendations. As a follow-up to that workshop, a citizen/Board and Commission open house will be held at the Lincoln Center on September 17, 6:30 – 8:00 p.m., to gather feedback on the Recommended Budget. A web-based prioritization activity will also be introduced on the City’s website, www.fcgov.com. Finally, as always, citizens will have the opportunity to participate in public hearings on the Budget over the next several weeks. Advertised public hearings will occur on September 18 and October 2 at regular Council meetings. Further public input will be allowed during First and Second Readings of the Final Budget on October 16 and November 20. September 11, 2007 Page 4 Council and staff will meet in work session four times in the coming weeks (September 11 and 25, October 9 and 23) in preparation for Council’s adoption of a final Budget. Council will be asked to consider the Budget Appropriations Ordinance on First Reading October 16, which is prior to the final scheduled work session. Final adoption is scheduled for November 20. ATTACHMENTS 1. City Council received the City Manager’s 2008-2009 Recommended Budget on September 4, 2007.