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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 09/14/2010 - PRESENTATION OF THE CITY MANAGER'S 2011-2012 RECOM DATE: September 14, 2010 WORK SESSION ITEM STAFF: Darin Atteberry FORT COLLINS CITY COUNCIL Mike Freeman Pre-taped staff presentation: none SUBJECT FOR DISCUSSION Presentation of the City Manager's 2011-2012 Recommended Budget. EXECUTIVE SUMMARY The City Manager's 2011-2012 Recommended Budget was delivered to City Council on September 3,2010. In September and October,City Council will have a series of work sessions and two Public Hearings on the Budget to gather input from the community. Staff believes City Council will have many challenging decisions ahead with the 2011-2012 Budget as the Budget is finalized. Numerous opportunities have been provided to hear from community members about the recommended Budget and the reductions that are needed to balance the Budget. A detailed public input schedule follows this Agenda Item Summary. For the September 14, 2010 Work Session, staff will present a Budget overview and a summary overview of the Transportation Result Area. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What clarifying questions does the City Council have regarding the Budget overall? 2. What clarifying questions does City Council have on the Transportation Result Area being presented? 3. What follow-up items are there on Budget issues related to Transportation? BACKGROUND The 2011 and 2012 Budget process began following the City Council retreat in February 2010. Since then, significant progress has been made by the staff that has led to the City Manager's Recommended Budget. The Budgeting for Outcomes process included the following major steps: • Documented City Council priorities and shared these priorities with interdepartmental City teams (Results Teams) and department staff(sellers) • Solicited community feedback on Budget priorities; gathered input from boards and commissions on key result areas; conducted boards and commission/public forum September 14, 2010 Page 2 • Developed Requests for Results with input from City Council, board and commission members and the public • Developed Budget offers categorized in seven key result areas • Results Teams reviewed offers and performance indicators, negotiated with sellers and submitted their prioritized list of funding recommendations to the City Manager and Budget Lead Team • City Manager and the Budget Lead Team reviewed the Result Team recommendations and made adjustments based on the overall Budget situation • The City Manager finalized the Recommended Budget and submitted it to City Council on September 3, 2010. City Council Budget Meetings The City Council has a series of work sessions scheduled in September and October to discuss the proposed 2011-2012 Budget. Each work session will include staff presentations regarding specific result areas, followed by an opportunity for questions and discussion. The final work session has been reserved for City Council discussion regarding overall priorities, policy issues and funding allocations between Result Areas. September 13, 6:30—8:00 p.m., Drake Centre: • Budget Public Meeting for boards and commissions and the general public September 14: • City Council Work Session—Budget Overview and Transportation September 21: • First Budget Public Hearing at City Council Meeting September 28: • City Council Work Session — Culture, Parks & Recreation; Environmental Health; Neighborhood Livability October 12: • City Council Work Session — Safe Community; Economic Health; High Performing Government October 19: 0 Second Budget Public Hearing at City Council Meeting September 14, 2010 Page 3 October 26: • City Council Work Session— Summary Review November 2: • First Reading of the Annual Appropriation Ordinance and Adoption of the 2011-2012 Budget November 16: • Second Reading of the Annual Appropriation Ordinance and Adoption of the 2011-2012 Budget ATTACHMENTS 1. Powerpoint City erIs 2011 - 2012 Reco nded Budget September 14 , 2010 Work Session FoclrytIgo r— miMons) • Net City Budget 2010* 2011 A .� • $332 . 4 • % Change : -3 . 5 % 2012 • $332 . 7 • % Change : 0 . 1 % * 2010 is the Adopted budget and is not shown on the summary schedules. 2 `rlfl 2011 — 2012 Budget Themes Focus on City Council and community priorities Transportation and Economic Health Budget continues to place a high priority on these programs and services : • ADDITIONAL $ 1 million for street maintenance — r`� PW • Economic Health programs remain largely unchanged C o� ��t 3 2011 — 2012 Budget Themes • Respond to changing revenue sources — City wide gap : $4 . 5 million in 2011 and $ 5 . 4 million in 2012 — Significant reductions recommended in several areas : parks and recreation , planning , and general government cit try 11 1 ) 11 1 J111 r IJ JIJ1 Limited use of million - • reserves in 2011 • $ 712 , 000 in 2012 Mostly used for one-time projects , not ongoing expenses B - • • with the 2012budget , reservesused to support ongoing programs and services are severely cut back . KC Budgeted Reserves for • . . Expenses2011 - 12 Budl;cted Reserves Funding Ongoing Expenses Fund 201 I Ongoin 2012 Ongoing 100-General Fund 733,701 I I '_,061 271 -Conservation Trust 32,000 312,000 273-Cultural Services 98,800 274-Recreation 605,099 I I O,000 275-Cemeteries 4,266 602-Selflnsurance 187,016 603-Data & Communications 450,000 604-Benelits 978,873 982,616 605-Util. Cust Srvc & Admin 36,795 13G,G15 3,126,550 1,683,292 Note: Capital Expansion Fund has not been included as ongoing . $314 , 354 in 1 • $210 , 000 in 2012be used for • - • payments on capital structures . ( Police and Fire) F&ryf�oqins 3 i 2011 — 20 • Fund major infrastructure maintenance and replacement Transportation infrastructure valued at $ 350M General Gov' t City facilities valued at $ 119M Deferred in prior budgets — The budget resumes funding for these assets OHM s � O 2011 — 2012 Budget Themes • Managing costs — No merit- based salary increases for employees in 2011 ; any adjustments for 2012 ( not to exceed 2 % ) will be driven by labor market conditions — Two furlough days for all City staff in 2011 — Further reduced travel , training , food , and communications budgets s try- 2011 - 2012 Revenue opt Collins Economic Assumptions 2011 - 2012 • Gradual recovery: — A rise in the S&P/Case-Shiller Home Price index — Rising demand for durable goods as reflected in the manufacturer's shipments , inventories , and orders data prepared by the U . S . Census Bureau — CO' s Business Leaders Confidence Index has risen for five of the past six quarters (2009 Quarter 2 through 2010 Quarter 3 ) , from a low at the beginning of 2009 • Consumer confidence is trending down after several months of steady increase `rtl in 10 Economic Assumptions 2011 - 2012 • Fort Collins- Loveland unemployment rate remains below the national average at 6 . 8 % (June 2010 ) • Regional economy' s strength in emerging industries , such as Clean Energy , Bioscience , and Water Innovation has positively impacted unemployment rates — Employment is forecasted to grow both nationally and regionally in these sectors — Sales tax rebounding across the state (2 . 4 through June 2010 ) and elsewhere along the Front Range (from 1 . 6 % to 8 . 4 % ) 11 Sales Tax - Year to Date change from 3 . 0% 2010 NOW-OW ft*o*MWI II . I I ' . i I ' i 1 ' I ' . II ' I ' I ' . I ' II . 2009 tv 2010 ��tf� All 1 Date change from Prior ( dollars) 2010 II I . II ' II : 10, 2009 10, 2010 crypt F�prtJins IJ 2011 — 2012 General Fund Revenue • Sales Tax Projections — 0. 7% increase in 2011 ; 2 .3% increase in 2012 — Collections not expected to return to 2007 level until 2012 • Use Tax • Modest increases in both 2011 and 2012 • Property Tax • No increase in 2011 or 2012 • Payments in Lieu of Taxes (PILOT) — Collected by all City- owned utilities • 2% increase in 2011 and 5% in 2012 • User Charges/Fees — • Minimal growth 2011 - 2012 Utilities Revenue • Electric rates will increase 6 . 8 % in 2011 and 5 . 9 % in 2012 — Increased power supply costs/utility operations • Wastewater rates will increase 9 % in 2011 and 8 % in 2012 Mulberry Plant capital improvements costs • Water rates will increase 3 % in 2011 ; no increase in 2012 • No Stormwater rate increases in 2011 or 2012 otY ol ollins 15 �F�t 2010 - 2011 City Manager' s Recommended Budget Summary 16 tr`= Budget Process • 2010 Community Survey • City Council Guidance and Direction — February 2010 City Council retreat — City Manager meetings with City Council Members — City Council meetings and Work Sessions • Boards and Commissions • Staff deliberation and creation of Recommended Budget • Council consideration and changes FctrY to� 17 � Respond to Changing Revenue • No merit-based employee pay increases in 2011 • Reduce staffing levels in 2011 22 . 45 Full Time Equivalent positions ( FTE ) Approximately 25 FTE hourly positions • Reduce staffing levels in 2012 4 FTE reductions — Approximately 10 FTE hourly positions • There are also 8 . 3 FTE positions being added in this budget ; the majority are 3 positions in Transfort and 3 positions in Utilities 18 try 2011 =2012 Budget — Reduced Services • Transfort reductions - $ 300k per year . Primarily 3 hour Saturday service reductions • Eliminate Dial -A- Ride night service - $45k per year • Police budget cuts , eliminates 5 . 5 positions and party patrol & riot prevention - $ 1 M per year • Defer capital projects for Poudre Fire Authority - $680k per year c ol ollins 19 .:rt . :V 2011 =2012 Budget — Reduced Services • All new park development on hold - $ 1 . 5M per year • Discontinue construction of new trails - $ 90k in 2011 ; $ 150k in 2012 • Reduced downtown maintenance - $ 190k per year • Reduced maintenance at Memorial Parks - $ 100k per year 20 try 2011 =2012 Budget — Reduced Services • Close Mulberry Pool - $ 190k per year • Senior Center — close 1 day/week , reduce daily hours - $260k per year • Northside Aztlan Center — close 1 day/week , reduce daily hours - $ 150k in 2011 ; 350k in 2012 • Reduce maintenance at The Farm - $ 30k per year otY ol ollins 21 .:rt . :j 2011 =2012 Budget — Reduced Services • Museum Discovery Science Center— reduce hours , exhibit support , & K- 12 programs - $ 55k in 2011 ; $200k in 2012 • Gardens on Spring Creek - closed 2 days/week , reduce programs - $ 100k per year • Turn off all three community water features - $ 30k per year • Eliminate July 4th celebration - $45k per year • Reduce West Nile Virus program - $ 100k per year • Eliminate RAD van ( Recreation at Your Door) program - $45k per year Olt 22 try ervices • Eliminate Community Mediation Program - $80k per year • Reduce advanced/transportation City Planning capacity - $325k per year • Reduce Leadership Development Training - $ 150k in 2011 ; $30k in 2012 • Reduce support staff & expenses in Internal Services : - - Finance - $210k per year — MIS - $375 in 2011 ; $ 550k in 2012 ctY of 23 TOTAL ALLOCATION BY RESULT ($ 427 . 5M)* GENERAL FUND 8 OTHER FUNDS — 2011 - OTHER GENERAL EOONIfIC NEATN 1, 9.Ir D 'Includes $49.SM in 2011 and $49.2M in 2012 12 ErMIlpt�rlL IEIL111' Isar for items like transfers between funds, debt service, payments to retirees and insurance costs. • • • -- . . . 1 Water, Wastewater, Natural Areas, Environmental Services N9BIIIDtIN000 LIINNIlR 11.Sr 2 Police, Fire, Electric, Stormwater 1RANiPQE�IIN � 41.Ir F`rt�l` TOTAL ALLOCATION BY RESULT ( $ 428 . 2M ) '` GENERAL FUND & OTHER FUNDS - 2012 one �urx � an GENERAL OTHER FUNDS 1 *Includes $49.SM in 2011 and $49.2M in 2012 13 �� for items like transfers between funds, debt service, payments to retirees and insurance costs. • • • • -� '- 1 Water, Wastewater, Natural Areas, Envuomnental Services ��'� V�� I �� 2 Police, Fire, Elechic, Stormwater iR�SPIRTnIN �. � Key Resul lights • Economic Health — Continue investment in economic clusters • URA support • Economic Advisor — Police services : District One — Development review center • Environmental Health — Climate Action Plan — Climate Wise — Renewable energy program — Water quality 26 Key Result Highlights • Neighborhood Livability — Neighborhood tree replacement — Neighborhood and building services programs • Safe Community — Police & Poudre Fire Authority — Stormwater utility services — Electric utility services — Graffiti program /..r ns 27 IF Key Result Highlights • Cultural and Recreational Opportunities — Scaled back operations in many areas • Parks maintenance , recreation programs , facility hours reduced — Lincoln Center , EPIC unchanged • Transportation — Pavement management increase ($ 1 M per year) — Snow removal services not changed — Transfort/Dial -a - Ride — 392/ 1 -25 interchange cit 2s try Key Result Highlights • High Performing Government — Investing in facilities and equipment — Replacing equipment and maintaining buildings — Internal organizational support — Citizen connections otY o 29 ' F�t Offer Structure REMOVALCURRENT SNOW LEVEL CURRENT LEVEL RESTORED OFFER: 4- RESTORED OFFER * PLOWING FROM MIDNIGHT- 4 A.M. REDUCE OFFER PLOWING ONLY FROM LEVEL . . 4 A.M. - MIDNIGHT 15 30 Bud • Public Hearings — September 21 — October 19 • Adoption of Budget — November 2 — November 16 • Council Work Sessions — Sept. 14 , Sept. 28 , October 12 , October 26 ctY of 31 Questions ? , F`r% 32 f �! rl •IJ "r • rt Collinsprovides f• - and f�' L""-LJ IJ1'rJ�ItJ J �_'-J� • ll JIIJ� s`JIJ r �IJl D/jjIJ J !J ? 111 — 2012 BudgetOverview City of ,-.. , collins 17 Transportation ' OVeralions • Transfort 2011 GENERAL FUND 8 OTHER FUNDS — 43.3M • Street Maintenance 2012 GENERAL FUND & OTHER FUNDS — 39.OM • Capital Improvements �ILFL� r� t zoll 2012 t� 18 Funding Sources • Federal and State government funding : highway users ' tax , vehicle registration fees , road and bridge levy , etc . • Dedicated sales tax revenue — 2005 Building on Basics ( BOB ) • Development fees • Grant funds , including federal Congestion Mitigation and Air Quality (CMAQ ) Improvement Program 36 �tr�- Key Purchases • Snow plowing and street sweeping • Transfort/ Dial -a- Ride • Traffic operations • Engineering and capital improvement management • North College Avenue improvements • Bridge replacements and maintenance program ( partial funding ) otY or 37 F�t Enhancements Purchased • 1 -25 and 392 Interchange replacement project (City share funded by reserves ) • Additional $ 1 million for street maintenance • Transfort/ Dial -a- Ride FLEX Service to Longmont and Loveland (funded by federal grants ) • Provide Dial -a- Ride service in Larimer County ( pending agreement and full funding from Larimer County) • Transfort/ Dial -a - Ride Road Supervisor 38 try Not ductions • Transfort Reduced Service Hours on Saturdays • Eliminate Dial -a- Ride Night Service (end at 7 p . m . ) • Reduced Transportation Planning Staff • Not purchasing Pavement Management Program Service Level " B " • Not purchasing City Bridge Replacement Program at needed level • Not reinstating traffic signal technician that was eliminated in 2010 cty or 39 Offer Structure LEVEL CURRENT LEVEL CURRENT SNOW REMOVAL * ENHANCEMENT . . . . • . . • . MIDNIGHT- 4 A.M. . . REDUCEDOM 1 �r Questions ? , F. O 42