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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/14/2010 - FIRST READING OF ORDINANCE NO. 134, 2010, AMENDING DATE: December'14, 2010 AGENDA . Y ik STAFF: Darin Atteberry _ T COLLINS CITY COUNCIL A Mike Freeman First Reading of Ordinance No. 134, 2010, Amending Ordinance No. 111, 2010, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2011; Adopting the Budget for the Fiscal Years Beginning January 1, 2011, and Ending December 31, 2012; and Fixing the Mill Levy for the Fiscal Year 2011. EXECUTIVE SUMMARY The revised Annual Appropriation Ordinance is presented for First Reading. This Ordinance sets the City Budget for the two year period(2011-2012). The approved Budget becomes the City's financial plan for the next two fiscal years. The original Budget Ordinance was unanimously adopted on First Reading on November 2,2010. Also on November 2, 2010, the Fort Collins voters approved a .85% increase in the sales and use tax rate effective January 1, 2011 ("26"). On Second Reading (November 16, 2010)of the original budget Ordinance(Attachment 1), the City Council added in items(listed in yellow in Attachment 2)that were discussed at the November 9, 2010 Work Session. These additions did not allocate all of the 26 funds. City Council further discussed how to allocate the balance of the 2B funds in a special budget Work Session on December 11, 2010. This revised Annual Appropriation Ordinance includes the additional recommendations that were discussed on December 11, 2010. BACKGROUND / DISCUSSION The budget process for 2011-2012 has been unusual in that the November 2, 2010 election included a sales and use tax increase which passed which added $18.7 million into the budget starting in fiscal year 2011. The City's budget was developed without including any additional funding from the 2B. Since November 2, 2010, the City Council has discussed the details of how to allocate the funding in accordance with the ballot language. City Council Direction Received at the December 11, 2010 Special Work Session At the December 11, 2010 Work Session, City Council had in depth discussions about which programs and services to fund with the 26 funding. Following is a summary of that discussion. The detail about which programs and services are recommended for funding is attached (Attachment 2). Environmental Health New resources in this area will allow us to build on existing programs and make progress on key sustainability goals. The items supported by City Council include internally focused initiatives(e.g., green purchasing and environmental performance data management) and community focused initiatives (e.g., Climate Wise enhancements and an Eco Industrial Center Feasibility study) Safe Community With new resources, both Poudre Fire Authority and Fort Collins Police Services will be able to restore most prior cuts and add new staffing. In addition to enhancing service, Council also spoke specifically of the need to reduce the use of overtime in Police Services. Culture, Parks and Recreation This has been one of the hardest hit areas in terms of budget cuts. In Second Reading of the 2011-2012 Budget, City Council approved funding for Mulberry Pool, Northside Aztlan Center,the Senior Center and the Fort Collins Discovery Science Museum.Also,the currently vacant Recreation Director position will be restored. The 2B resources also allow us to restore some previous reductions in parks maintenance and continue to develop and provide maintenance for new neighborhood parks. December 14, 2010 -2- ITEM 3 Transportation Transportation has also been hit hard in prior budget cuts. 2B adds $6.2 million into street maintenance, and $3.2 million into other transportation needs. These resources will fund multiple services and projects, including bridges, implementation of the Transportation capital improvement plan,Transfort operations,the FC bikes program and more. Projects that enhance public safety are the highest priority. Economic Health In recent years,we have implemented key components of the City's Economic Action Plan. New resources in this area will be used to enhance existing successful programs, specifically the Industry Clusters, as well as update the overall Economic Action Plan. Resources will also be used to maintain services such as downtown landscaping and maintenance, District One crime prevention and the July 4 community celebration. High Performing Government The primary components of this discussion are already referenced above. Council also voiced support for energy efficiency enhancements to City buildings,enhancements to the leadership development program,aswell as restoring a few prior Internal Services cuts. The City Council also supported reducing the number of furlough days from two to one. Neighborhood Livability On Second Reading,City Council approved funds for Party Patrol and Riot Prevention,and it restored some resources for the Affordable Housing Fund and the Human Services Program. On Saturday,Council voiced supportfor restoring . other services, including the Community Mediation Program and an additional $100,000 for the Affordable Housing/Human Services Program. Overview of Implications of.26 On July 27, City Council approved Resolution 2010-047 submitting a proposed 0.85% increase in the city's sales and use tax rate to the voters for their consideration on the November 2, 2010 General Election Ballot which was subsequently approved by the voters. The tax increase includes the following provisions: • An increase of.85% (or 8.5 cents on a $10 purchase) The additional revenue will be allocated in the following manner: 0 33% for street maintenance and repair 0 17% for other street and transportation needs 0 17% for police services 0 11%for fire services 0 11%for parks maintenance and recreation services; and 0 11%for other community priorities as determined by City Council. • The increase will commence January 1,2011 and sunset after 10 years, ending at midnight on December 31, 2020. • The increase will yield an estimated $18.7 million in the first full year of collection The 2B Ballot language is included in as Attachment 3. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. December 14, 2010 -3- ITEM 3 ATTACHMENTS 1. Copy of Second Reading Agenda Item Summary- November 16, 2010 2. Listing of items to be funded with 2B funds identified at the City Council budget Work Session on December 11, 2010. 3. Resolution 2010-058 Amending Resolution 2010-047, Submitting to the Registered Electors of the City a Proposed .85% Increase in the City's Sales and Use Tax Rate on all Non-Exempt Taxable Items, to be Used for Certain Specified Purposes ATTACHMENT DATE: November 16, 2010 AGENDA ITEM SUMMARY STAFF: Darin Atteberry _ Mike Freeman T COLLINS.CITY COUNCIL Second Reading of Ordinance No. 111, 2010, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2011 and Adopting the Budget for the Fiscal Years Beginning January 1, 2011 and Ending December 31, 2012, and Fixing the Mill Levy for Fiscal Year 2011. EXECUTIVE SUMMARY r,/ II The Annual Appropriation Ordinance is�presented�for Se11cond rReading.)\Tihis Ordinance sets the City Budget for the two year period (2011-2012). The approvedo'Budget•becomesdhe City!s-financial plan for the next two fiscal years. This Ordinance was unanimously adopted on First Reading on November 2, 2010. On November 2, 2010, the Fort Collins voters also approved a .85% increase in the sales and use tax rate (Measure 2B)effective January 1, 2011. This adds$10 million in new revenue into the 2011 Budget and $19.2 million in new revenue into the 2012 Budget for specific purposes as was outlined in the ballot language. The Annual Appropriation Ordinance now includes these new funds. The City Council meton November 9,2010,to discuss specific items itwishes to fund following the positive community vote on Measure 2B. Those items are listed in the background and are included in this budget. BACKGROUND / DISCUSSIONS n" T) �V City Council Direction Received at th6 November�9, 201'0 work Session The following programs or services were identified by the City Council for inclusion in second reading of the budget: Transportation: • Offer 127.22 Pavement Management Program -$6,171,000 • Offer 131.12 Dial-a-Ride Night Service-$44,150 • Offer 131.25 Transfort Operations—Saturday Service-$150,000 Safe Community: rritvsouth • Offer 132.8 Pcudre Fire Auth_ .Bat, _ taliop -D, 00 Culture, Parks & Recreation: ��� �� • Offer 59.3 Mulberry Pool - $254,714 • Offers 39.6, 39.8, and 48.3 Mulberry Pool Facility and Utility Costs -$187,828 • Offer 61.6 Northside Aztlan Community Center-$141,091 • Offer 60.8 Adult Programs/Senior Center-$260,724 • Offer 106.7 Community Parks-$68,000 Neighborhood Livability: • Offer 85.3 Restoration of Human ServcesP am -$55, 733� • Offer 85.2 Restoration of the Affordable",Housing Fund J$145,0 • Offer 24.1 Party Patrol and Riot Preve ntionn--$$116177� The City Council will meet in late November or early December to work through the balance of the programs and services it wishes to fund with the new revenue generated from Measure 2B,as well as$1 million which was originally November 16, 2010 -2- ITEM 24 devoted to street maintenance. With the passage of Measure 2B,those funds are now available for other City Council priorities. At this meeting, staff will present any modifications to the programs and services which are listed above, as City staff and City Council believe there may be additional efficiencies that can be pursued which may lower the cost of these programs and services. Following this special City Council budget workshop, staff will prepare a resolution or ordinance for Council consideration that outlines in detail which programs and services will be funded from the Measure 2B funds. Any capital improvement projects identified in this process will need to be adopted by ordinance per City policy (i.e., bridge projects). Note: City Council also directed staff to fund reductions that were included in the original budget to the Museum/Discovery Science Center. The recommended reductions are to take place in 2012, so restoring that funding does not impact the 2011Appropriations Ordinance. City Council will note that the funding has been restored inn..20.112` in the:budget.document.. Overview of Implications of Measure 2B 11 On July 27,City Council approved Reso`tion 2010-047-submitting a proposed 0.85%increase in the City's sales and use tax rate to the voters for their consideration on the November 2, 2010 General Election Ballot which was subsequently approved by the voters. The tax increase includes the following provisions: • An increase of.85% (or 8.5 cents on a $10 purchase) • The additional revenue will be allocated in the following manner: 0 33% for street maintenance and repair 0 17% for other street and transportation needs 0 17% for police services 0 11%for fire services 0 11% for parks maintenance.and�recreation•services;ands 0 11% for other community,pnorities as/determined)by)City Council. • The increase will commence January 1,2011 and`sun"set-after 10�years,ending at midnight on December 31, 2020. / � • The increase will yield an estimatetl $18.7 million in the first full year of collection. Additionally,the ballot language requires the City Manager to report annually to City Council on how the revenues are used and the cost saving measures that were undertaken by the City each year. In continuing to communicate with community members regarding the proposed ballot measure,City Council and staff have received questions regarding the proposed uses for the funds reserved for"other community priorities as determined by City Council." While the resolution does not provide details on the anticipated uses for these funds, Council expects to allocate these funds to high priority City needs identified by City Council in the annual budget process. This portion of the sales and use tax revenue would provide approximately$2.1 million of new resources in the first year. The services which will receive allocated revenues based=on-th'e formula in Resolution 2010-047 include Transportation, Police, Fire, and Parksiand Recreation.) In 201101,these programs account for 68% of the expenses in the City's General Fund. The remaining 32%•portion of the GeneraIIFund includes such services as Economic Development, City Planning, AfforAbi le�Housinglprograms, Cultural Services, Development Review, Code Enforcement, Natural Resources programs, and citywide administrative costs. The General Fund does not cover the various Utility Enterprise funds including Electric, Water, Wastewater, and Stormwater services. Resolution 2010-047 provides additional details regarding the types of programs, activities and services which could be funded through the approximately $2.1 million in revenue provided by the 11% allocated to "other community priorities." Some examples of needs which the City Council could fund include: • Economic Health Programs: Assistance program for business retention and expansion, support of the downtown area, and system improvements for Development Review and Planning processes • Neighborhood Programs: Code_,Compliance, Community Mediation program, various Community Partnerships (CSU, Poudre School District, Lar�mer County) and Affordable Housing programs • Environmental Programs: Recycling, Sustainabilit'y/Programs, and Green Building Code • Cultural Programs: Museum and co unity arrtrts ' f • Critical City Service and Suppo zechnology-infrastructure, facility and vehicle maintenance, administration and internal services (Human Resources, Finance, Communications) November 16, 2010 -3- ITEM 24 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- November 2, 2010 2B Items Prioritized within Ballot Language Designations ATTACHMENT 2 2011 2012 Changes made to balance funding Outcome Item # Item Description Cost Cost Type sources per ballot language 213 - Street Maintenance (33%) 6,171 ,000 6,34%959 Transportation 71 Pavement Management Program (Offer 127.22) 61171 ,000 65349,959 Ongoing Sub Total (positive numbers indicate total of items arewithin the available amount of money; 0 0 26 - Other Transportation (17%) 3,1799000 3,271 ,191 Safe Community 26 Downtown Handicap Parking Spaces (Offer 112.2) 153000 153000 Ongoing Safe Community 27 Bicycle Safety and Education Plan Implementation (Offer 116.2) 503000 503000 Ongoing Transportation 72 Transfort / Dial-A-Ride Night Service (Offer 131 . 12) 44,150 45,476 Ongoing Transportation 73 Transfort Operations-Restore Saturday Service (Offer 131 .25) 1509000 150,000 Ongoing Transportation 74 City Bicycle Coordinator/FC Bikes/Bike Library (Offer 113.6) - 80,613 Ongoing Transportation 75 Reinstatement of Traffic Signal Technician (Offer 117.5) 65,689 67,634 Ongoing Transportation 76 Traffic Sign Replacement Program (Offer 117.7) 107000 307000 Ongoing Transportation 77 Street Oversizing Capital Expansion Fee Program (Offer 146.5) 3007000 400,000 Ongoing Transportation 78 City Bridge Program (Offer 146. 13) - 564,931 Ongoing Transportation 79 South Shields Street Bridge Over Larimer Canal No. 2 (Offer 146.14) 1 ,500,000 - One-Time Transportation 80 Laporte-Whitcomb Bridge Replacement (Offer 146.15) - 670,000 One-Time Transportation 81 Surveying - Restored (Offer 146.25) 14,130 14,537 Ongoing Transportation 82 Transfort Operations: Marketing - Restored (previously part of offer 131 .25) 557000 557000 Ongoing Transportation 83 Streets & Traffic Ops Capital Equipment Replacement — Restore from Prior Year Reductions 3367000 5647000 Ongoing Transportation 84 Transportation Capital and Master Plan Implementation 3457031 350,000 Ongoing Transportation 85 Median Maintenance — Restore Prior Year Reductions 39,000 39,000 Ongoing Transportation 86 Harmony Road - Enhanced Travel Corridor Plan (Offer 113.4) 75,000 75,000 Ongoing Economic 103 Downtown Parking / Parking Structure Study 80,000 - One-Time Economic 104 Old Town Parking Garage Maintenance 100,000 1009000 Ongoing Sub Total (positive numbers indicate total of items arewithin the available amount of money; 0 0 26 - Police (17%) 301799000 31271 ,191 Safe Community 22 Five Information Services Dispatchers and Police Report Specialist (Offer 17.5) 457,677 445,182 Ongoing Safe Community 23 Seven Detectives, Three Investigative Aides and .75 Victim Services Advocate (Offer 18.7) 1 ,219,717 1 , 102,511 Ongoing Safe Community 25 Twelve Patrol Officers (Offer 19.6) 19501 ,606 116319307 Ongoing Sub Total (positive numbers indicate total of items arewithin the available amount of money; 0 92, 191 26 - Fire (11 %) 210579000 29116,653 Safe Community 20 PFA South Battalion (Offer 132.8) 4947000 494,000 Ongoing Safe Community 28 Contribution to PFA ongoing operations (to be determined by City Council / PFA Board) (Offer 132.7) 1 ,563,000 1 ,622,653 Ongoing Sub Total (positive numbers indicate total of items arewithin the available amount of money; 0 0 1 12/14/2010 at 9:33 AM 2B Items Prioritized within Ballot Language Designations 2011 2012 Changes made to balance funding Outcome Item # Item Description Cost Cost Type sources per ballot language 26 - Parks and Recreation (11 %) 290579000 291169653 CPR 37 Community Parks - Restored (including 2 water features) (Offer 106.7) 683000 683000 Ongoing CPR 38 Northside Aztlan Community Center - Restored (Offer 61 .6) 141 ,091 3405759 Ongoing CPR 39 Adult Programs/Senior Center - Restored (Offer 60.8) 250,000 2509000 Ongoing CPR 40 Mulberry Pool Operations (Offer 59.3) (Note: Facility and Utility costs in Item #119 in HPG) - - Ongoing CPR 43 Huidekoper Park (Offer 106.4) 37,000 Ongoing CPR 44 Staley Park (Offer 106.5) - 523000 Ongoing CPR 45 Maintenance of Four Neighborhood Parks (Side Hill, Maple Hill, Richards Lake, Lind) & 3.5 Miles of Trail 1637000 1633000 Ongoing CPR 46 Memorial Parks - Restored (Offer 92.3) 100,000 1003000 Ongoing CPR 47 The Gardens on Spring Creek - Restored (Offer 118.5) 100,000 1005000 Ongoing CPR 48 Reopen Restroom at Community Parks in the Winter 209000 209000 Ongoing CPR 49 Lifecycle Funding for Parks Infrastructure — Restore Prior Year Reductions 232,000 2329000 Ongoing CPR 50 Weed Control — Restore Prior Year Reductions 30,000 30,000 Ongoing CPR 51 Fertilizer Program — Restore Prior Year Reductions 303000 303000 Ongoing CPR 52 Parks Seasonal Positions — Restore Prior Year Reductions 503000 503000 Ongoing CPR 53 Conservation Trust Trail Construction Program (Requires Offer 41 .3 to be funded) 161 ,558 1613558 Ongoing CPR 54 Recreational Trail Development - Restored (Offer 41 .3) - - Ongoing CPR 55 Reinstate Clerical Position at the Senior Center (Offer 60.3) 559847 579588 Ongoing CPR 56 Farm at Lee Martinez Park - Restored (Offer 60. 10) 309858 319659 Ongoing CPR 57 Recreation Director Position (Offer 62.5) 117,605 120,581 Ongoing CPR 58 Recreational Scholarship Funding (instead of using reserves) (Offer 62.2) 1007000 1203000 Ongoing Shifted $10K from 2011 and added to 2012 CPR 59 Other Recreation Operating Expenses (instead of using reserves) 2367099 - Ongoing CPR 60 Restore Northside Aztlan Community Center Customer Service Position 453000 453000 Ongoing CPR 61 Sports Administrative Support - Restored (Offer 61 .8) - - Ongoing CPR 62 Urban Forest Management - Restored (Offer 119.3) 259000 259000 Ongoing CPR 64 Contract Tree Work — Restore Prior Year Reductions 609000 609000 Ongoing CPR 65 Veterans Plaza 25,000 - One-Time Economic 100 Water Feature and Flowers at Oak Street Plaza 153000 153000 Ongoing Sub Total (positive numbers indicate total of items arewithin the available amount of money; 942 72508 2 12/14/2010 at 9:33 AM 2B Items Prioritized within Ballot Language Designations 2011 2012 Changes made to balance funding Outcome Item # Item Description Cost Cost Type sources per ballot language 26 - Other Community Priorites (11 %) 290579000 29116,653 Environmental 1 Green Building Program— Implementation and Enforcement 1053000 1053000 Ongoing Environmental 2 Recycling and Sustainability Coordinator/Environmental Planner (Offer 179.7) 120,000 120,000 Ongoing Environmental 3 Environmental Performance Data Manager (Offer 195.2) 909000 909000 Ongoing Environmental 4 Unified Carbon Accounting System (Offer 195. 1 ) 309000 309000 One-Time Environmental 5 Climate Wise Program Enhancement 75,000 75,000 Ongoing Environmental 6 Stream and River Rehabilitation and Restoration 2507000 2503000 Ongoing Environmental 7 Innovation Fund (Offer 197. 1 ) 1007000 1003000 Ongoing Environmental 8 Volunteers for Sustainable Homes Initiative (Offer 179.5) 503000 503000 Ongoing Environmental 10 Downtown Environmental Improvements — Solar Recycling Bins and Earth Tub Composting Units 425000 2,000 2012 Ongoing Merged with original Item $16 Environmental 11 Green Purchasing Study (Offer 37. 11 ) 75,000 - One-Time Environmental 12 Eco Industrial Center Feasibility Study 75,000 - One-Time Environmental 14 Parks Environmental Improvements - Urban Forestry (modification of previous offer 124.2) 15,000 15,000 Ongoing Environmental 15 Community Spill Response — additional resources 353000 53000 2012 Ongoing Environmental 18 Radon Mitigation Behavioral Study 107000 - One-Time CPR 66 Grant/Match for Repair of Trolley 10,000 - One-Time Economic 94 Support Industry Clusters - Restored (Offer 7. 16) - 305000 Ongoing Economic 95 Economic Action Plan Update / Economic Competitiveness Study 145,000 - One-Time Reduced $5,000 to help balance Economic 97 Enhanced Support for Cluster Development 100,000 1009000 Ongoing Economic 99 Downtown Landscaping and Maintenance - Restored (Offer 105.7) 1857000 185,000 Ongoing Economic 101 4th of July Activities (Offer 105.3) 227000 473000 Ongoing Reduced 2011 by 25,000 due to donation Economic 102 4th of July — Restore Prior Year Reductions 53000 53000 Ongoing Economic 105 UniverCity Connections 11 ,000 113000 Ongoing Economic 106 Administrative Services (Offer 7.10) 15,229 155690 Ongoing Economic 107 Historic Preservation Matching Grant Funds — Restore (Offer 174.6) 259000 259000 Ongoing Economic 108 Railroad Quiet Zone Phase II Study (Offer 115.3) - 100,000 One-Time One-time 2011 amount of $100K shifted to 2012 HPG 120 Energy Efficiency Initiatives for City Buildings (Offer 46.2) - 3557000 Ongoing Shifted $175K from 2011 and added to 2012 HPG 121 Recruitment Specialist Restored .5 FTE (Offer 120.4) 433762 453005 Ongoing HPG 122 Human Resources Core Services — Restored (Leadership Development/Training) (Offer 120.6) 109,950 303000 Ongoing HPG 126 Management Internship Program (Offer 3.7) 43,718 433718 Ongoing Neighborhood 149 Restoration of the Human Services Program (Offer 85.3) 50,733 50,733 Ongoing Neighborhood 150 Community Mediation Program — Restored (Offer 126.4) 785339 80,530 Ongoing Neighborhood 151 Additional $100K for Affordable Housing/Human Services 100,000 1009000 Ongoing Neighborhood 154 Design Assistance Program (pending decision about East Side/West Side design standards) 40,000 40,000 Ongoing Added Monday 13 December Sub Total (positive numbers indicate total of items arewithin the available amount of money; 269 103977 3 12/14/2010 at 9:33 AM 2B Items Prioritized within Ballot Language Designations 2011 2012 Changes made to balance funding Outcome Item # Item Description Cost Cost Type sources per ballot language Withdrawn $1M Enhancement for Pavement Management 110009000 190009000 Safe Community 21 Police Core Information Services - Restored (Offer 17.4) 174,272 1793520 Ongoing Safe Community 24 Basic Patrol Services - Restored (Offer 19.5) 149,083 1615866 Ongoing Safe Community 155 Humane Society 17,000 179000 Ongoing Added Monday 13 December Economic 98 District One - Restored (Crime Prevention Program) (Offer 22.3) 349942 359898 Ongoing Economic 96 Economic Action Plan Project Initiatives - 45,000 Ongoing Moved from Other Community Priorities and reduced $51K Neighborhood 147 Party Patrol and Riot Prevention (Offer 24.1 ) 167776 16,776 Ongoing Neighborhood 148 Restoration of the Affordable Housing Fund (Offer 85.2) 1457000 145,000 Ongoing Moved from Other Community Priorities to help balance CPR 41 Fort Collins Museum Services - Restored (Offer 44.5) - 1507000 Ongoing Moved from Parks and Recreation to help balance CPR 63 Lincoln Center Facility Staff and Marketing Budget — Restore Prior Year Reductions 100,000 1009000 Ongoing Moved from Other Community Priorities to help balance Environmental 9 Parks Environmental Improvements - Recycling Bins (modification of previous offer 124.2) 909000 - One-Time Moved from Other Community Priorities per Legal HPG 119 Mulberry Pool Facility & Utilities Costs (Offers 39.6, 39.89 48.3) (Note: Operations costs in Item #40 in CPR) 137,828 1489634 Ongoing Moved from Parks and Recreation to help balance HPG 123 Eliminate one Furlough Day (Governmental Funds) (Offer 196.2) 130,000 - Ongoing Sub Total (positive numbers indicate total of items arewithin the available amount of money; 51099 306 Grand Total (positive numbers indicate total of items are within the available amount of money) 6,310 1109982 4 12/14/2010 at 9:33 AM ATTACHMENT 3 RESOLUTION 2010-058 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING RESOLUTION 2010-047 SUBMITTING TO THE REGISTERED ELECTORS OF THE CITY A PROPOSED .85% INCREASE IN THE CITY'S SALES AND USE TAX RATE ON ALL NON-EXEMPT TAXABLE ITEMS, TO BE USED FOR CERTAIN SPECIFIED PURPOSES WHEREAS,on July 27, 2010, the City Council approved Resolution 2010-047 submitting to the registered electors of the City a proposed.85%increase in the City's sales and use tax rate on all non-exempt taxable items, to be used for certain specified purposes; and WHEREAS, since the adoption of such resolution, various members of the business community have expressed concern about the impact that an increase in the amount of use tax imposed on manufacturing equipment may have on local manufacturers and their ability to contribute to the City's recovery from the current economic downturn; and WHEREAS, through its existing use tax rebate program on manufacturing equipment for qualifying manufacturers, the City already acknowledges the need for furthering economic development by providing incentives, including tax relief, to local manufacturers; and WHEREAS, because of.the important role that local manufacturers play in promoting the overall economic health of the City,the City Council wishes to respond to this community concern by amending the tax measure to exempt from the proposed.85%use tax increase all manufacturing equipment, as defined in Section 25-63 of the City Code, that is used, stored, distributed or consumed in the City. NOW,THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS AS FOLLOWS: Section 1. That the question to be submitted to the registered electors of the City pursuant to Resolution 2010-047 is hereby amended so as to read in its entirety as follows: SHALL CITY OF FORT COLLINS TAXES BE INCREASED BY AN ESTIMATED $18.7 MILLION FOR THE FIRST FULL FISCAL YEAR(2011),AND BY SUCH AMOUNTS AS MAY BE GENERATED ANNUALLY THEREAFTER, BY INCREASING THE RATE OF THE CITY SALES AND USE TAX FROM 3.00%TO 3.85% COMMENCING JANUARY 1,2011,AND ENDING AT MIDNIGHT ON DECEMBER 31, 2020,WITH ALL REVENUE GENERATED THEREFROM TO BE SPENT AS FOLLOWS: • 33% FOR STREET MAINTENANCE AND REPAIR; • 17%FOR OTHER STREET AND TRANSPORTATION NEEDS; • 17%FOR POLICE SERVICES; • 11% FOR FIRE PROTECTION AND OTHER EMERGENCY SERVICES; • 11%FOR PARKS MAINTENANCE AND RECREATION SERVICES; AND • 11%FOR COMMUNITY PRIORITIES OTHER THAN THOSE LISTED ABOVE,AS DETERMINED BY THE CITY COUNCIL, PROVIDED THAT THIS INCREASE IN THE SALES AND USE TAX SHALLNOT APPLY TO ITEMS THAT ARE EXEMPT FROM TAXATION UNDERTHE CITY CODE,SUCH AS FOOD AND PRESCRIPTION DRUGS, AND THAT THE INCREASE IN THE USE TAX SHALL NOT APPLY TO MANUFACTURING EQUIPMENT,AND FURTHER PROVIDED THAT THE CITY MANAGER SHALL ANNUALLY REPORT TO THE CITY COUNCIL ON THE PURPOSES FOR WHICH THE REVENUES FROM THE TAX INCREASE HAVE BEEN DESIGNATED OR USED IN THE PRECEDING CALENDAR YEAR AND THE COST SAVING MEASURES THAT WERE UNDERTAKEN BY THE CITY IN SUCH YEAR,AND FURTHER PROVIDED THAT THE FULL REVENUES DERIVED FROM THE TAX, AND ANY INVESTMENT EARNINGS THEREON, MAY BE RETAINED AND EXPENDED BY THE CITY FOR SUCH PURPOSES,NOTWITHSTANDING ANY STATE REVENUE OR EXPENDITURE LIMITATIONS INCLUDING BUT NOT LIMITED TO ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION? YES NO Section 2. That in all other respects Resolution 2010-047 shall remain in full force and effect. Passed and adopted at a regular meeting of the Council e City of Fort Collins this 17th day of August A.D., 2010. Mayor ATTEST:'. City Clerk r -3- ORDINANCE NO. 134, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING ORDINANCE NO. 111, 2010, BEING THE ANNUAL APPROPRIATION ORDINANCE RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2011; ADOPTING THE BUDGET FOR THE FISCAL YEARS BEGINNING JANUARY 1, 2011, AND ENDING DECEMBER 31, 2012; AND FIXING THE MILL LEVY FOR THE FISCAL YEAR 2011 WHEREAS, on November 2, 2010, the registered electors of the City approved a .85% increase in the City's base sales and use tax rate, commencing on January 1, 2011, and expiring in 2021 (the "Tax Measure"); and WHEREAS, on November 16, 2010, acting pursuant to Article V, Section 4 of the City Charter, the City Council adopted on second reading Ordinance No. 111, 2010, (the "Annual Appropriation Ordinance"), which ordinance adopted the City budget for the fiscal years beginning January 1, 2011 and ending December 31, 2012; appropriated the funds needed to defray all expenditures of the City during 2011; and fixed the mill levy upon each dollar of the assessed valuation of all taxable property within the City; and WHEREAS,because of the passage of the Tax Measure,and in recognition of the additional revenues that will be generated by such measure, the Annual Appropriation Ordinance included a recital stating that,after adoption of the Annual Appropriation Ordinance,the City Council intended to further clarify the specific uses of those new tax revenues, either by resolution or ordinance; and WHEREAS,on December 11,2010,the City Council held a special work session to discuss the most appropriate use of those additional revenues and gave direction to the City Manager as to which previously unfunded offers that were considered by the City Manager and the City Council during the Budgeting for Outcomes ("BFO") budgeting process should be funded as a result of the passage of the Tax Measure; and WHEREAS, pursuant to that direction, the City Manager has proposed certain revisions to the 2011-2012 budget that was adopted by the City Council in Section 1 of the Annual Appropriation Ordinance,together with corresponding adjustments to the appropriations approved by the City Council in Section 2 of the Annual Appropriation Ordinance; and WHEREAS,Article V, Section 7 of the City Charter states that,after the commencement of the upcoming fiscal year, the annual appropriation ordinance and levy shall be irrepealable and the several amounts stated in the adopted budget and annual appropriation ordinance as proposed expenditures for such fiscal year shall be deemed appropriated for the purposes therein specified;and WHEREAS, prior to commencement of the upcoming fiscal year, the City Council wishes to amend the Annual Appropriation Ordinance so that the 2011-2012 Budget, as adopted, includes the additional BFO offers that can now be funded as a result of the passage of the Tax Measure and so that the appropriations approved as part of said ordinance are amended to the extent necessary to fully fund those offers. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the budget adopted in Section 1(c) of the Annual Appropriations Ordinance and known as "The Budget for the City of Fort Collins for the Fiscal Years Ending December 31, 2011, and December 31, 2012, as Adopted by the City Council on November 16, 2010"shall be revised to reflect the amendments to said budget that have been approved by the City Council as a result of its discussion at the December 11 work session and the public hearing held in connection with the City Council's consideration of this Ordinance,and said budget shall be replaced with, and superseded by, a new budget to be known as "The Budget for the City of Fort Collins for the Fiscal Years Ending December 31, 2011, and December 31, 2012, As Adopted by the City Council on November 16, 2010, and amended by the City Council on December 21, 2010" (the "Amended Budget"), which Amended Budget shall be maintained in the office of the City Clerk. Section 2. That Section 2 of the Annual Appropriation Ordinance is hereby amended so as to read in its entirety as follows: 2011 Proposed Appropriations Existing as Amount of of 11/16/2010 Adjustments As Amended GENERAL FUND $102,499,751 $978,125 $103,477,876 ENTERPRISE FUNDS Golf $ 2,879,387 $ $ 2,879,387 Light& Power Operating 104,907,193 104,907,193 Capital: Electric Substations 315,000 315,000 Southwest Annexation Electric System 1,755,000 1,755,000 Capital Total 2,070,000 2,070,000 Total Light & Power 106,977,193 106.977,193 Storm Drainage Operating 10,746,019 10,746,019 Capital: Asset Management 83,333 83,333 Canal Importation Basin 2,840,000 2,840,000 Drainage & Detention System 370,000 370,000 Stormwater Developer Repays 95,000 95,000 Stormwater Master Planning 95,000 95,000 Capital Total 3,483,333 3,483,333 Total Storm Drainage 14,229,352 14,229,352 -2- Wastewater Operating 18,073,294 18,073,294 Capital: Asset Management 83,334 83,334 Collection System Replacement 1,230,000 1,230,000 Collection System Study 170,000 170,000 DWRF Improvements 100,000 100,000 Engineering Collection System Replacements 700,000 700,000 Flow Monitoring Stations 100,000 100,000 North College Sewer 900,000 900,000 Sludge Disposal.Program 100,000 100,000 Water Reclamation Replacement Program 975,000 975,000 Capital Total 4,358,334 4,358,334 Total Wastewater 22,431,628 22,431,628 Water Operating 25,767,591 25,767,591 Capital: Asset Management 83,333 83,333 Cathodic Protection 170,000 170,000 Distribution System Replacement 975,000 975,000 Engineering Distribution System Replacement 1,910,000 1,910,000 Halligan Reservoir Expansion 190,000 190,000 Water Production Replacement Program 1,175,000 1,175,000 Water Supply Development 100,000 100,000 Capital Total 4,603,333 4,603,333 Total Water 30,370,924 30,370,924 TOTAL ENTERPRISE FUNDS $176,888,484 $176,888,484 INTERNAL SERVICE FUNDS Benefits $21,702,110 $21,702,110 Data& Communications 7,410,443 7,410,443 Equipment 9,457,218 9,457,218 Self Insurance 3,247,228 3,247,228 Utility Customer Service & Administration 15,462,965 15,462,965 TOTAL INTERNAL SERVICE FUNDS $57,279,964 $57,279,964 SPECIAL REVENUE & DEBT SERVICE FUNDS Capital Improvement Expansion $ 619,354 $ 619,354 Capital Leasing Corporation 5,290,795 5,290,795 Cemeteries 587,558 587,558 Cultural Services 3,223,584 $150,000 3,373,584 Debt Service 359,820 359,820 General Employees' Retirement 3,043,926 3,043,926 Natural Areas Fund 8,447,731 8,447,731 -3- Perpetual Care 45,395 45,395 Recreation 6,665,590 $(325,215) 6,340,375 Resourcing Our Future 18,700,000 18,700,000 Sales & Use Tax 11,098,000 11,098,000 Street Oversizing 2,978,079 2,978,079 Timberline/Prospect SID 106,885 106,885 Transit Services 9,989,823 9,989,823 Transportation Services 24,422,387 24,422,387 TOTAL SPECIAL REVENUE & DEBT SERVICE FUNDS $ 95,578,927 $075,215) $ 95,403,712 CAPITAL IMPROVEMENT FUNDS General City Capital City Bridge Program $300,000 $300,000 I-25 & SH 392 Interchange and Improvements 2,640,000 2,640,000 Police Facility 750,000 750,000 Railroad Crossing Replacement 100,000 100,000 Total General City Capital $3,790,000 0 $3,790,000 1/4 Cent Building on Basics Administration $34,914 $34,914 Bicycle Program Plan Implementation 125,000 125,000 Museum/Discovery Science Center 115,113 115,113 North College Ave. Improvements 4,275,671 4,275,671 Pedestrian Plan and ADA Improvements 300,000 300,000 Total 1/4 Cent Building on Basics $ 4,850,698 4 850 698 Conservation Trust Fund Administration $ 198,918 $63,208 $ 262,126 Trail Acquisition/Development 350,000 350,000 Open Space Acquisition 10,000 10,000 Fossil Creek Trail 50,000 50,000 Tri-City Trails 0 30,000 30,000 Transfer to General Fund-Parks Maintenance 923,704 (161,558) 762,146 Total Conservation Trust Fund $1,532,622 $(68,350) $1,464,272 -4- Neighborhood Parkland Fund Administration $ 187,679 207,998 $ 395,677 Equipment Replacement _ 15,000 15,000 New Park Site Development 0 150,000 150,000 Richards Lake Park 0 300,000 300,000 Soft Gold Neighborhood Park 0 100,000 100,000 Staley Neighborhood Park 0 500,000 500,000 Trailhead Park 0 200,000 200,000 Waters Way Park 0 100,000 100,000 New Park Site Acquisition 150,000 150,000 Total Neighborhood Parkland Fund $ 352,679 $1,557,998 $ 1,910,677 TOTAL CITY FUNDS $442,773,125 $2,292,558 $445,065,683 Section 3. That all otherprovisions ofthe Annual Appropriation Ordinance not amended by this Ordinance shall remain in full force and effect. Introduced, considered favorably on first reading, and ordered published this 14th day of December,A.D. 2010,and to be presented for final passage on the 21 st day of December,A.D.2010. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 21 st day of December, A.D. 2010. Mayor ATTEST: City Clerk -5-