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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/11/2011 - PRESENTATION OF THE CITY MANAGER'S RECOMMENDED 201DATE: October 11, 2011 STAFF: Darin Atteberry Mike Beckstead Pre-taped staff presentation: none WORK SESSION ITEM FORT COLLINS CITY COUNCIL SUBJECT FOR DISCUSSION Presentation of the City Manager's Recommended 2012 Budget Revision Requests. EXECUTIVE SUMMARY The purpose of this work session is to review the 2012 Budget Revision Requests to be considered for inclusion in the 2012 Annual Appropriation Ordinance. The Ordinance will be considered on First Reading on October 18, 2011. 2012 BUDGET REVISION SUMMARY General Fund Utility Funds All Other Funds TOTAL (in $M) Funding Sources Sales & Use Tax: Projection compared to budget $ 2.2 $ 0.9 $ 3.1 Interest earnings (0.5) (1.4) (1.9) $ (3.8) Revenue from rate increase 4.1 $ 4.1 Unanticipated available appropriations 0.6 0.2 0.7 $ 1.5 Other Revenue Changes 0.9 2.9 $ 3.8 Total of Revenue Changes 3.2 5.8 $ (0.3) $ 8.7 2012 Budget Revision Requests Utility Stormwater Land Purchases and Purchased Power (4.3) (4.3) Below Market Pay Adjustment (0.1) (0.3) (0.4) (0.8) Water Meter Replacement and Rehabilitation (0.6) (0.6) Microsoft Office 2010 Software Upgrade (0.5) (0.5) Restore Conservation Trust Funds for Trail Construction (0.5) (0.5) All Other 2012 Requests (1.0) (0.6) (0.6) (2.2) Total of Supplemental Appropriations (1.6) (5.8) $ (1.5) (8.9) 2012 Budget Revision Impact to Fund Balance $ 1.6 $ (0.0) $ (1.8) $ (0.2) BACKGROUND / DISCUSSION Since the City changed to a biennial budget in 1998, there has been an opportunity to modify the second year of that budget through a revision process. This process allows for course correction based on changes to anticipated revenue (both higher and lower than originally forecasted), as well as unexpected business requirements that should be addressed prior to the next biennial budget. The funding sources to cover the expenses related to these supplemental appropriations come from increased sales and use tax revenue, unappropriated 2012 forecasted revenue and unanticipated available appropriations. October 11, 2011 Page 2 Following are key objectives which the recommendations are intended to: • Address stated Council priorities • Continue implementation of sustainability goals and objectives • Leverage Mason Corridor synergies • Cover increased costs for power • Implement Stormwater improvements • Provide basic technology support and upgrades for internal organization needs • Correct below-market pay gaps for City employees • Maintain fund balances and start rebuilding reserves in the General Fund to support future needs and economic uncertainty The recommended 2012 budget supplemental appropriations meet these goals. These requests have been evaluated by the Budget Lead Team and reviewed by the Council Finance Committee. The revision process is not part of the City’s official biennial Budgeting for Outcomes process, so there was no review by BFO Results Teams or Boards and Commissions. FINANCIAL / ECONOMIC IMPACTS Citywide, incremental funding sources total $8.7 million. The General Fund portion of that is $3.2 million driven primarily by Sales and Use Tax collections. The rest is comprised of a $5.8 million increase in the Utility funds and a net decrease of $300,000 in other funds. The supplemental appropriations being recommended total $8.9 million. The General Fund share is $1.6 million, $5.8 million is from Utility funds, and the remaining $1.5 million is from other funds such as the Data and Communications Fund. A complete packet of requests is attached. ATTACHMENTS 1. Cover memo dated October 6, 2011 2. 2012 Budget Revision Requests City Manager’s Office City Hall 300 LaPorte Ave. PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com MEMORANDUM DATE: October 6, 2011 TO: Mayor and Councilmembers FROM: Darin A. Atteberry, City Manager SUBJECT: 2012 Budget Revision Recommendations The purpose of this agenda item is to familiarize and seek feedback from the Council Finance Committee with my recommended revisions to the 2012 Budget before the Appropriations Ordinance goes to first reading October 18 and second reading November 1. General Fund Utility Funds All Other Funds TOTAL (in $M) Funding Sources Sales & Use Tax: Projection compared to budget $ 2.2 $ 0.9 $ 3.1 Interest earnings (0.5) (1.4) (1.9) $ (3.8) Revenue from rate increase 4.1 $ 4.1 Unanticipated available appropriations 0.6 0.2 0.7 $ 1.5 Other Revenue Changes 0.9 2.9 $ 3.8 Total of Revenue Changes 3.2 5.8 $ (0.3) $ 8.7 2012 Budget Revision Requests Utility Stormwater Land Purchases and Purchased Power (4.3) (4.3) Below Market Pay Adjustment (0.1) (0.3) (0.4) (0.8) Water Meter Replacement and Rehabilitation (0.6) (0.6) Microsoft Office 2010 Software Upgrade (0.5) (0.5) Restore Conservation Trust Funds for Trail Construction (0.5) (0.5) All Other 2012 Requests (1.0) (0.6) (0.6) (2.2) Total of Supplemental Appropriations (1.6) (5.8) $ (1.5) (8.9) 2012 Budget Revision Impact to Fund Balance $ 1.6 $ (0.0) $ (1.8) $ (0.2) 2012 BUDGET REVISION SUMMARY * * The use of reserves in all other funds includes over $800k of prior year appropriations in the Data and Communications Fund that were not spent. The other reserves are primarily to cover interest income shortfalls City-wide, supplemental appropriations being recommended total $8.9 million. The General Fund share is $1.6 million, $5.8 million is from Utility funds, and the remaining $1.5 million is from other funds such as the Data and Communications Fund. A complete packet of requests is attached. Following are key objectives which the recommendations are intended to: • Address stated Council priorities • Continue implementation of sustainability goals and objectives • Leverage Mason Corridor synergies • Cover increased costs for power • Implement Stormwater improvements ATTACHMENT 1 • Provide basic technology support and upgrades for internal organization needs • Correct below-market pay gaps for City employees • Maintain fund balances and start rebuilding reserves in the General Fund to support future needs and economic uncertainty The recommended 2012 budget supplemental appropriations meet these goals. Sales tax collections are higher than originally anticipated; we also have unappropriated 2012 forecasted revenue and anticipated budget savings. For the 2012 Budget Revision Requests, staff recommends using approximately $1.8 million of reserves ($810k from Data & Communications Fund reserves, $580k from Water Fund reserves, $300k from Light & Power reserves, and $119k from General Fund Traffic Surcharge reserve as indicated on page 4a). There will also be a need for most City funds to use a modest amount of reserves to cover the projected shortfall in interest earnings. We recommend adding $1.5 million of the additional 2012 revenue into the General Fund reserve balance. The updated revenue and expenses, as well as the individual offers, are summarized on pages 1 through 5. Descriptions of the recommended requests follow the summary pages. The revision process is not part of our official biennial Budgeting for Outcomes process, so there was no review by BFO Results Teams or Boards and Commissions. However, the Executive Leadership Team and I conducted a comprehensive review to determine which requests should be forwarded on for Council's consideration. Revised revenue projections and anticipated fund reserves were carefully considered when making these recommendations. I look forward to our future conversations. Please call me if you’d like to discuss this prior to our meeting. 2012 BUDGET REVISION REQUESTS ATTACHMENT 2 2012 BUDGET REVISION REQUESTS TABLE OF CONTENTS SUMMARY OVERVIEWS Request Summary by BFO Result Area............................................................................... 1 Request Summary by Fund.................................................................................................. 2 Revenue / Expense Revision Summary - All Funds…………………………………………....4a Revenue / Expense Revision Summary - General Fund & Keep Fort Collins Great …....…5 GENERAL FUND REVISION REQUESTS Assistant to the City Manager and CPIO ............................................................................ 7 Police Services Ticket Surcharge Officer............................................................................ 8 Affordable Housing/Human Services.................................................................................. 9 Restore Conservation Trust Funds for Trail Construction ................................................ 21 Development Review Succession Planning...................................................................... 22 Development Review – Customer Service Demand......................................................... 25 PFA Non-Discretionary & Total Compensation Increase.................................................. 31 CMO Policy and Project Manager Increase from 0.8 to 1.0 FTE………………………… . 32 Federal Legislation Analysis and Action…………………………………………………….. .33 Mason Corridor Synergies and Support Services............................................................. 34 Reorganization Office of Sustainability ............................................................................. 35 Below Market Pay Adjustment .......................................................................................... 36 OTHER FUND REVISION REQUESTS (unless already listed above) Keep Fort Collins Great Fund Downtown Ice Rink Installation and Removal......................................................... 41 Downtown Holiday Lighting..................................................................................... 42 Light & Power Fund Light & Power Payments in Lieu of Taxes (PILOT) Increase................................. 43 Purchase Power Increase....................................................................................... 47 Energy Efficiency Financing Program .................................................................... 48 Water Fund Water Payments in Lieu of Taxes (PILOT) Increase.............................................. 49 Water Meter Replacement and Rehabilitation........................................................ 54 Stormwater Fund Household Hazardous Waste Community Event ................................................... 55 Remove Structures from Poudre River Floodway.................................................. 56 Master Plan Flood Mitigation Project Property....................................................... 57 Data & Communications Fund MIS Email, Blackberry & Smart Phone Services.................................................... 58 MIS Network Services Resource Support .............................................................. 59 MIS Technology Customer Software Compliance Support .................................... 60 MIS Technology Customer Support Restructure.................................................... 61 Microsoft Office 2010 Software Upgrade................................................................ 62 2012 Budget Adjustment Requests - BY BFO RESULT AREA Results Related Area Offer # Adjustment Requested Ongoing $ One-Time $ Cultural, Parks & Recreation 21 106.2, 6 Restore Conservation Trust Funds for Trail Construction $546,571 $0 $546,571 $0 Economic Health 41 105.2 Downtown Ice Rink Installation and Removal $40,000 $0 22 108.11 Development Review Succession Planning (1.25 Cont. FTE) $75,341 $0 25 108.11 Development Review - Customer Service Demand (1 FTE) $65,000 $0 42 New Downtown Holiday Lighting $85,000 $0 34 New Mason Corridor Synergies and Support Services $0 $200,000 $265,341 $200,000 Environmental Health 49 100.1 Water Payments in Lieu of Taxes (PILOT) Increase $88,054 $0 55 214.2 Household Hazardous Waste Community Event $22,000 $0 48 New Energy Efficiency Financing Program (.5 FTE) $300,000 0 54 New Water Meter Replacement and Rehabilitation $0 $580,000 35 New Reorganization: Office of Sustainability $122,200 $0 $532,254 $580,000 High Performing Government 7 3.1, 4.1 Assistant to the City Manager and CPIO (1 FTE) $176,320 $0 58 32.1 MIS Email, Blackberry & Smart Phone Services $28,000 $80,000 59 33.4 MIS Network Services Resource Support $0 $62,400 60 35.6 MIS Technology Customer Software Compliance Support $0 $59,488 61 35.6 MIS Technology Customer Support Restructure $30,709 $0 62 New Microsoft Office 2010 Software Upgrade $0 $550,000 32 3.1 CMO Policy and Project Manager Increase from .8 to 1.0 FTE $29,157 $0 33 New Federal Legislation Analysis and Action $79,414 $0 36 Multiple Below Market Pay - Full Adjustment $812,390 $0 $1,155,990 $751,888 Neighborhood Livability 9 85.1 Affordable Housing/Human Services $54,499 $0 $54,499 $0 Safe Community 43 10.1 Light & Power Payments in Lieu of Taxes (PILOT) Increase $121,969 $0 47 11.1 Purchase Power Increase $1,724,505 $0 8 21.1 Police Services Ticket Surcharge Officer (1 FTE) $118,709 $0 31 132.6 PFA Non-Discretionary & Total Compensation Increase $228,926 $0 56 New Remove Structures from Poudre River Floodway $0 $1,000,000 57 New Master Plan Flood Mitigation Project Property $0 $1,600,000 $2,194,109 $2,600,000 Transportation N/A Sub-total $4,748,764 $4,131,888 ALL FUNDS TOTAL: $8,880,652 Page Revision Requests Number Updated 9/30/2011 1 2012 Budget Adjustment Requests - BY FUND Total Fund Related Ongoing & Fund Offer # Adjustment Requested Ongoing $ One-Time $ One-Time General Fund 7 3.1, 4.1 Assistant to the City Manager and CPIO (1 FTE) $176,320 $0 8 21.1 Police Services Ticket Surcharge Officer (1 FTE) $118,709 $0 9 85.1 Affordable Housing/Human Services $54,499 $0 21 106.2, 6 Restore Conservation Trust Funds for Trail Construction $546,571 $0 22 108.11 Development Review Succession Planning (1.25 Cont. FTE) $75,341 $0 25 108.11 Development Review - Customer Service Demand (1 FTE) $65,000 $0 31 132.60 PFA Non-Discretionary & Total Compensation Increase $59,768 $0 32 3.10 CMO Policy and Project Manager Increase from .8 to 1.0 FTE $29,157 $0 33 New Federal Legislation Analysis and Action $79,414 $0 34 New Mason Corridor Synergies and Support Services $0 $150,000 35 New Reorganization Office of Sustainability $91,650 $0 36 Multiple Below Market Pay Adjustment $139,780 $0 Total General Fund $1,436,209 $150,000 $1,586,209 KFCG Fund 31 132.6 PFA Non-Discretionary & Total Compensation Increase $169,158 $0 34 New Mason Corridor Synergies and Support Services (Parking Study) $0 $50,000 41 105.2 Downtown Ice Rink Installation and Removal $40,000 $0 42 New Downtown Holiday Lighting $85,000 $0 36 Multiple Below Market Pay Adjustment $19 $0 Total Keep Fort Collins Great Fund $294,177 $50,000 $344,177 Natural Areas 35 New Reorganization Office of Sustainability $30,550 $0 36 Multiple Below Market Pay Adjustment $28,543 $0 Total Natural Areas Fund $59,093 $0 $59,093 Light & Power 43 10.1 Light & Power Payments in Lieu of Taxes (PILOT) Increase $121,969 $0 47 11.1 Purchase Power Increase $1,724,505 0 48 New Energy Efficiency Financing Program (.5 FTE) $300,000 0 36 Multiple Below Market Pay Adjustment $193,740 $0 Total Light & Power Fund $2,340,214 $0 $2,340,214 Page Revision Requests Number Updated 9/30/2011 2 2012 Budget Adjustment Requests - BY FUND Total Fund Related Ongoing & Fund Offer # Adjustment Requested Ongoing $ One-Time $ One-Time Page Revision Requests Number Water 49 100.1 Water Payments in Lieu of Taxes (PILOT) Increase $88,054 $0 54 New Water Meter Replacement and Rehabilitation $0 $580,000 36 Multiple Below Market Pay Adjustment $77,857 $0 Total Water Fund $165,911 $580,000 $745,911 Stormwater 55 214.2 Household Hazardous Waste Community Event $22,000 $0 56 New Remove Structures from Poudre River Floodway $0 $1,000,000 57 New Master Plan Flood Mitigation Project Property $0 $1,600,000 36 Multiple Below Market Pay Adjustment $45,608 $0 Total Stormwater Fund $67,608 $2,600,000 $2,667,608 Data & 58 32.1 MIS Email, Blackberry & Smart Phone Services $28,000 $80,000 Communications 59 33.4 MIS Network Services Resource Support $0 $62,400 60 35.6 MIS Technology Customer Software Compliance Support $0 $59,488 61 35.6 MIS Technology Customer Support Restructure $30,709 $0 62 New Microsoft Office 2010 Software Upgrade $0 $550,000 36 Multiple Below Market Pay Adjustment $22,890 $0 Total Data & Communications Fund $81,599 $751,888 $833,487 Other Funds 36 Multiple Below Market Pay Adjustment $303,953 $0 $303,953 Total All Funds $4,748,764 $4,131,888 $8,880,652 Updated 9/30/2011 3 Description General Fund Keep Fort Collins Great Natural Areas Light & Power Water Stormwater Data & Communica- tions Other Various Funds TOTAL Funding Sources Sales & Use Tax: Projection compared to budget $ 2,203,000 $ 716,700 $ 182,500 $ 3,102,200 Interest earnings (504,751) (45,826) (400,000) (836,879) (135,141) (39,937) (1,800,000) (3,762,534) Light and Power PILOTs 121,969 121,969 Water PILOTs 88,054 88,054 Development Review revenue 715,000 715,000 CMAQ Grant - Partner Contributions - Revenue from rate increase 2,474,020 1,624,549 4,098,569 Other Revenue Changes 181,280 181,280 Unused 2012 Revenue in the 2011-12 Budget 2,634,245 2,634,245 Available appropriations due to reduced City medical contribution 586,346 56,578 34,627 124,080 93,374 30,277 45,781 530,641 1,501,704 Total of Revenue Changes 3,209,618 773,278 171,301 2,198,100 1,062,324 2,529,381 5,844 (1,269,359) 8,680,487 2012 Budget Revision Requests Sum of 2012 Budget Revision Requests (1,467,500) (344,177) (59,093) (2,040,214) (165,911) (2,667,608) (22,890) (303,953) (7,071,346) Sum of 2012 Budget Revision Requests - From Reserves (118,709) (300,000) (580,000) (810,597) (1,809,306) Total of Supplemental Appropriations (1,586,209) (344,177) (59,093) (2,340,214) (745,911) (2,667,608) (833,487) (303,953) (8,880,652) 2012 Budget Revision Impact to Fund Balance $ 1,623,409 $ 429,101 $ 112,208 $ (142,114) $ 316,413 $ (138,227) $ (827,643) $ (1,573,312) $ (200,165) Notes: 1) The projected increase in 2012 Development Review revenue is based on 2010 volume with the new rate structure approved by Council on September 6th, 2011 2) The sum of 2012 Budget Revision Request in the Other Various Funds column include the $750K budget correction and is offset by the revenue adjustment above 3) The use of reserves in the Light and Power fund could be covered by $45,136,684 of working capital as of December 31, 2010 4) The use of reserves in the Stormwater fund could be covered by $12,070,244 of working capital as of December 31, 2010 5) The use of reserves in the Data and Communications Fund is covered by fund balance of $3,633,068 as of December 31, 2010 6) The use of reserves in the other various funds crosses 23 funds. Review of each fund has confirmed that there is ample reserve available over policy minimum. Revenue & Expenditures by Fund 2012 Budget Revision Summary 4a Updated 10/5/2011 4 General Fund Net Changes to Budget 2011 2012 Sales & Use Tax: Projection compared to budget 2,527,000 2,203,000 Interest earnings (318,238) (504,751) Light and Power PILOTs - 121,969 Water PILOTs - 88,054 Development Review revenue 275,000 715,000 Total revenue changes 2,483,762 2,623,272 Sum of requests (2011 Clean-up and 2012 Revisions) (581,988) (1,586,209) Available appropriations due to reduced City medical contribution 316,577 586,346 Total increase to fund balance 2,218,351 1,623,409 Keep Fort Collins Great Fund Unanticipated Revenue Summary: Transportation - Street Maintenance 270,963 236,511 Other Transportation 139,587 121,839 Police Services 139,587 121,839 Fire & Emergency Services 90,321 78,837 Park & Recreation 90,321 78,837 Other Community Priorities 90,321 78,837 Total Net Change to Anticipated Revenue 821,100 716,700 Other Transportation - Net Changes to Budget 2011 2012 Fund Balance - 139,587 Designated for Fire & Emergency Services: Projection compared to budget 139,587 121,839 Sum of 2012 Budget Revision Requests - (50,000) Total increase to fund balance 139,587 211,426 Fire & Emergency Services - Net Changes to Budget 2011 2012 Fund Balance - 90,321 Designated for Fire & Emergency Services: Projection compared to budget 90,321 78,837 Sum of 2012 Budget Revision Requests - (169,158) Total increase to fund balance 90,321 - Other Community Priorities - Net Changes to Budget 2011 2012 Fund Balance - 90,321 Designated for Other Community Priorities: Projection compared to budget 90,321 78,837 Sum of 2012 Budget Revision Requests - (125,019) Total increase to fund balance 90,321 44,139 2012 General Fund & KFCG Revenue & Expense Revisions Updated 9/30/2011 5 THIS PAGE LEFT INTENTIONALLY BLANK 6 Revision Title: Fund: Contact: Wendy Bricher Result Area: Package/Offer #: 3.1 and 4.1 Total Amount: $176,320 Funding Source #1: Funding Amount #1: $132,619 Funding Source #2: Funding Amount #2: $43,701 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Assistant to the City Manager & CPIO 1.0 FTE - Assistant to the City Manager The City Manager and Executive Leadership Team (ELT) considered ways to enhance the efficiency and effectiveness of the City organization. Changes impacting existing service areas were approved in March 2011 and included the following: 1) Assistant to the City Manager - This new position is an executive level position intended to support the City Manager in pursuing a world class community particularly focused on including sustainability leadership & coordination, community design & special projects, and innovative culture. 2) Assistant to the City Manager - Employee and Communications Services (Restructured Communications and Public Involvement Director Position) overseeing the Human Resource Department and the Communication & Public Involvement Office. 3) Reclassify the current Public Relations Coordinator to the Communications and Public Involvement Manager 100 - General Fund High Performing Government General Fund General Fund 7 Revision Title: Fund: Contact: Tricia Muraguri Result Area: Related Offer #: 21.1 Total Amount: $118,709 Funding Source #1: Funding Amount #1: $118,709 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Police Services Ticket Surcharge Officer 1.0 FTE - Police Traffic Enforcement Officer At the tail end of the 2011 - 2012 budget process, Police Services received authorization to hire an additional Traffic Surcharge Officer. Since the budget process was about over and the proposed budget documents had been sent to print, the position was never included in the authorized count of FTE's. For 2011 the cleanup ordinance will be the mechanism used to appropriate the revenue. This offer appropriates the funding for 2012 to formalize the FTE addition that took place late in 2010. 100 - GENERAL FUND Safe Community General Fund - Traffic Surcharge Reserve 8 Revision Title: Fund: Contact: Joe Frank Result Area: Relative Offer #: 8.3 85.1 Total Amount: $54,499 Funding Source #1: Funding Amount #1: $54,499 FTE Requested: 0.2 FTE - Human Services Grant Administrater 0.1 FTE - Human Services/Affordable Housing Clerical Description: This request is for additional General Fund dollars to adequately resource the Advance Planning Department’s affordable housing, human services and long range planning programs in order to meet federal regulatory compliance and more effectively and efficiently manage these programs. Advance Planning proposes reorganizing the grants and affordable housing programs to provide more case management administration capabilities and full time program management. The timing for this reorganization is optimal due to pending retirements within the programs. Please refer to the accompanying information that follows. 2012 BUDGET REVISION REQUEST Affordable Housing/Human Services 0.3 FTE - Affordable Housing Program Administrater 100 - GENERAL FUND Economic Health General Fund Neighborhood Livability 9 Budget Revision Request: Affordable Housing and Human Services This request addresses a convergence of issues in the affordable housing and human services arena, all of which have reached critical mass since the last BFO cycle. The City maintains a multi-million dollar, long-term commitment to affordable housing and human services through use of annual federal grants (CDBG and HOME), and City funds (Affordable Housing Fund [AHF], Human Service Program [HSP]). In addition to general administration for the above four funding streams, the Affordable Housing and Human Services Program is responsible for: • Implementing the City’s semi-annual Competitive Process, allocating nearly three million dollars to the community each year. • Servicing nearly three dozen annual loan and grants for affordable housing, human services and public facilities programs and projects. • Maintaining federal and financial regulatory compliance. • Managing long-term mandated, complex legal and financial coordination of local housing projects. • Developing and implementing local affordable housing policy. Problem: the work group’s funding and staffing structure is no longer sustainable. Increases to the volume and complexity of caseload management and reporting have overwhelmed existing program staff. Insufficient City funds exist to administer the local programs. Federal funds cannot be used for administration of local programs. Currently, there are no City funds allocated for administration of local Affordable Housing and Human Services Programs. Historically, 100% percent of local funds have gone to projects. While efficiencies have been realized through automation of nearly all functions (financial, project tracking, Competitive Process), the work group can no longer keep pace with influencing pressures such as: • An increase in demand of administrative requirements, resulting in regulatory compliance and program performance issues (examples: Environmental Reviews, Fair Housing regulations, minority jobs and business reporting). See Exhibit A. • An expansion of work obligations both in amount and complexity. See Exhibit B for a snapshot of content and trends. Currently, there are 400 open Home Buyer Assistance files, 100 open long-term housing projects (6-8 are added every year), and $22 million in open housing loans. Coordination of Low Income Housing Tax Credit (LIHTC) considerations for nearly every housing project now requires a minimum of 200 hours staff time up front. It was never even a work task in past years. • Sophisticated skills do not currently exist within the work group; required training is extremely costly. • The number of Human Services projects has nearly doubled in five years. • Local funding (General Fund) for the HSP has increased (60% over five years: $332K to $540K). There has been no corresponding administrative cost resourcing. 10 • Local funding (General Fund) for the AHF program has increased in recent years ($133K to $333K). There has been no corresponding administrative cost resourcing. • Current year federal funding cuts are for CDBG (16.4%/$180,962) and HOME (12.2%/$83,282). Federal funds can no longer cover City tasks. Other communities were polled to learn how they resource similar programs. Many contribute General Fund dollars to affordable housing and human services. The City of Fort Collins does not currently contribute funds for administration of local programs. Pending retirements within the work group represent opportunities for a work group reorganization to achieve short-term efficiencies for 2012, and additional sustainability for 2013 and beyond. This 2012 revision request funds additional resources needed for administration of the City's General Fund and HSP programs, and City-driven tasks for affordable housing administration. Administrative support functions are decreased; affordable housing tasks are more fully addressed. Federal funds will still continue to fund a majority of the work group, resourcing federal-only tasks. The specific General Fund 2012 budget need of $54,499* is represented by: • 0.2 FTE HSP Grant Administrator: $15,445 • 0.1 FTE HSP/AHF clerical/financial support: $5,674 • 0.3 FTE AHF Program Administration: $33,380 (*Note: Request amended as a result of revised personnel costs received from Human Resources) If this funding situation is not addressed, there may be long term impacts to major components of the City’s affordable housing and human services programs. Immediate 2012 consequences may include: Cancellation of 20 contracts for Human Services Program and Keep Fort Collins Great social services projects ($540,733). That action would impact 9,534 low-income community members and 20 local agencies. In addition, the City may be forced to turn away new future CDBG, HOME and local funds due to the inability to meet program management and federal and local regulatory requirements. Staff is currently using federal funding to pay for local administration costs, which is not permissible. 11 EXHIBIT A: YEARLY AND FIVE-YEAR HUD REPORTING AND PROGRAM ADMINISTRATION REQUIREMENTS These requirements are the City’s responsibility as long as there are open files regardless of whether or not the City receives new allocations of CDBG and/or HOME funding. No program income is ever released from the regulations of the funding source. Required Reports Frequency Due FTE Analysis of Impediments to Fair Housing – major document requiring focus groups, extensive research, surveys, public review. Every five years August 15, 2012 .25 every five years 5�year Strategic Plan – major document requiring focus groups, extensive research, surveys, public review. Every five years August 15, 2014 .25 every five years Consolidated Annual Performance Evaluation Report – compilation of information in format required by HUD to prove eligibility of projects and processes Every year December 31 .1 Semi�Annual Labor Standards – review projects requiring Davis Bacon documentation, contact project managers to fill out required form, fill out separate form for City 2 x year October 8 and April 8 .01 Section 3 – review projects requiring Section 3 documentation, contact project managers to fill out required form, submit form electronically 1 x year December 31 .01 Minority, Black and Women’s Enterprise Report – follow form directions to report MBWE contracting 1 x year October 10 .01 Annual Action Plan – submitted every year according to HUD requirements to show planning process for the following year 1 x year August 15 .10 HOME Yearly Report – form which documents program income and other required information, attached to CAPER 1 x year December 31 .01 HOME Match Report – form documents required match (from IDIS report) and how the match was met by non�federal funds attached to the CAPER . OMB Audit Review – required review of all project audits to show adherence to OMB requirements. If there are discrepancies, the agency must be contacted and document how the discrepancy was mitigated. 1 x year June .01 Ongoing required program management Open files monitoring, site visits, project documentation, for approximately 100 open projects ● each project has a monitoring date set up in CDM ● the file is pulled and reviewed for requirements ● the file is reviewed for type of monitoring and if site visit is necessary ● project manager is contacted for a census of current residents, check for rental rates to be within guidelines ● if site visit is necessary (new project or problematic project), set up half a day to review files and units ● if project is also monitored by the State or CHFA, get a copy of the results from the project manager ● if problems are found, document and follow�up with a letter showing required mitigation, and continue to monitor until problem is resolved. Document. ● put all documentation and forms in the file folder ● set up next monitor in CDM ● return project file to cabinet Yearly – currently through 2041 As scheduled by project .05 Program Income processing ● Receive check ● If payoff, pull file ● Verify amount ● Insert amount in program income Excel file. For HOME, document whether it is PI or RE. Monthly Monthly .05 13 If PI, figure admin amount. ● Fill out PI transfer sheet x3 for Accounting, copy check x2, attach original check for Accounting and send, attach copy to copy of transfer sheet for other staff to verify, put copy of both in file. (Required that TWO staff receive on any payment.) ● Fill out Release paperwork and forward to Legal for City Manager signature ● Pull original Note and PN from safe and mark as paid in full ● When Release is signed, attached original docs and forward either to Title Company or to Public Trustee ● Update CDM and, if necessary, HBA databases to show paid in full ● Scan file, shred original, keep scanned file on cd for 5 years minimum ● If amortized loan, verify amount, update Excel file and CDM, fill out Accounting sheet and forward check with copy to other staff. ● Periodic monitoring for noncompliance. ● Yearly report to property owner Program Income competitive process (all notices, contracts, processing payments, etc.) All Program Income must be allocated within six months of receipt to projects which meet the eligibility requirements of either HOME or CDBG, whichever originally allocated the program income. Program eligibility requirements NEVER go away for any federal program income received. This includes all formal Yearly August 15 .25 14 processes including environmentals, public notices, public hearings, legal contracts, requests for reimbursements from projects, setting up and drawing from City finance, setting up and drawing from IDIS, and setting up monitoring as required. HBA monitoring of all open loans on a yearly basis, calling the notes of loans that are out of compliance, documents processing, foreclosures, releases, subordinations, etc. Daily Daily .25 IDIS updates and draws – at least two staff members must be authorized to set up projects, set up draws and authorize draws. Monthly Monthly .05 Files management, database updates, responding to HUD questions, public facility issues, HUD audits. Monthly Monthly .05 15 Human Services Agencies Requested AFH CDBG HOME HSP HSP-KFCG TOTAL BASE Camp: Sliding Scale Fee Tuition Assistance $48,000 $48,000 $48,000 100% Boy & Girls Club: After-School Program $18,309 $11,520 $11,520 63% Catholic Charities Northern: Senior Outreach $10,000 $10,000 $10,000 100% Catholic Charities Northern: Shelter & Supportive Services $48,264 $43,546 $43,546 90% Crossroads Safehouse: Advocacy Program $90,000 $45,000 $45,000 50% Disabled Resource Services: ATI Program $22,054 $22,054 $22,054 100% ELTC: Employment Skills Training $25,000 $17,623 $17,623 70% ELTC: Job Access & Retention Training $4,992 $0 0% Elderhaus: Therapy Center Activity Program $21,202 $21,202 $21,202 100% Elderhaus: Home Front Veterans Program $32,256 $0 0% Family Center: Sliding Scale Fee Tuition Assistance $20,000 $20,000 $20,000 100% Food Bank: Kids Café Program $22,167 $22,167 $22,167 100% HPI: Emergency Rent Assistance $40,000 $40,000 $40,000 100% LCMH: Mental Health Services for Crises Prev. Partner. $41,238 $0 0% Mathews House: Program for At-Risk Youth $29,436 $14,000 $14,000 48% NCAP: Client Services & Homelessness Prevention $25,000 $25,000 $25,000 100% Neighbor to Neighbor: Emergency Rent Assistance $21,000 $21,000 $21,000 100% Neighbor to Neighbor: Housing Counseling $68,906 $39,375 $39,375 57% PSS: Services for Single Parent Families $30,000 $30,000 $30,000 100% Respite Care: Sliding Scale Fee Tuition Assistance $25,000 $19,140 $5,860 $25,000 100% RVNA: Home Health Care Scholarships $35,000 $35,000 $35,000 100% United Day Care Center: Sliding Scale Fee Tuition Assist. $54,000 $54,000 $54,000 100% United Way: 2-1-1 $29,259 $0 0% VOA: Home Delivered Meals $25,116 $25,116 $25,116 100% Women's Resource Center: Dental Care Assist. $29,040 $29,040 $29,040 100% Total $815,239 $158,309 $440,334 $598,643 73% Housing Projects Requested AHF CDBG HOME HSP HSP-KFCG TOTAL CARE: Privincetowne Pre-Development Costs $150,000 $150,000 $150,000 100% EXHIBIT B: Affordable Housing Funds, CDBG, HOME and Human Services Program Spending for Calendar Years 2008, 2009, 2010 and 2011 Funding for 2008 (Spring) Funding for 2008 (Spring) The fiscal year for these programs is October 1st through September 30th of each year. 16 City of Fort Collins: Home Buyer Assistance $200,000 $122,711 $77,289 $200,000 100% City of Fort Collins: Land Bank Program $201,387 $0 0% Ft. Collins Housing Authority - Stanford Acquisition $1,139,000 $201,387 $937,613 $1,139,000 100% Ft. Collins Housing Corp. - Leisure Drive Rehab $216,524 $216,524 $216,524 100% Total $1,906,911 $201,387 $1,060,324 $443,813 $1,705,524 89% Housing Projects Requested AHF CDBG HOME HSP HSP-KFCG TOTAL CARE Housing: Provincetowne On-site Infrastructure $250,000 $250,000 $250,000 100% City of Fort Collins: Home Buyer Assistance - Rentals $50,000 $50,000 $50,000 100% City of Fort Collins: Home Buyer Assistance $200,000 $200,000 $200,000 100% Ft. Collins Housing Corp: Leisure Drive Rehab $116,820 $116,820 $116,820 100% Housing Authority Loveland: Larimer Home Improv. Prog. $100,000 $100,000 $100,000 100% Neighbor to Neighbor: Flooring Replacements $33,600 $33,600 $33,600 100% Total $750,420 $183,600 $566,820 $750,420 100% Human Services Agencies AHF CDBG HOME HSP HSP-KFCG TOTAL BASE Camp: Sliding Scale Fee Tuition Assistance $60,840 $60,831 $60,831 100% Boy & Girls Club: After-School Program $18,309 $18,309 $18,309 100% Catholic Charities: Senior Outreach $10,000 $10,000 $10,000 100% Catholic Charities: Shelter & Supportive Serv. $55,024 $37,856 $37,856 69% Center for Family Outreach: Volunteer Parenting Prog $15,000 $0 0% Consumer Credit Counseling: Financial Counseling $13,000 $0 0% Crossroads Safehouse: Advocacy Program $99,216 $51,542 $51,542 52% Disabled Resource Services: Access to Independence $25,656 $25,656 $25,656 100% ELTC: Employment Skills Training $22,000 $18,000 $18,000 82% ELTC: Evening Class Childcare Assistance $8,000 $0 0% Elderhaus: Therapy Center Activity Program $23,592 $23,592 $23,592 100% The Family Center: Sliding Scale Fee Tuition Assistance $20,000 $20,000 $20,000 100% Food Bank for Larimer County: Kids Café Program $27,959 $27,959 $27,959 100% Homelessness Prev. Initiative: Emergency Rent Assist. $45,000 $40,671 $40,671 90% Live the Victory: The Matthews House $29,120 $0 0% Neighbor to Neighbor: Housing Counseling $68,500 $39,915 $39,915 58% Neighbor to Neighbor: Emergency Rent Assist. $23,000 $23,000 $23,000 100% Northern Colorado Aids Project: Client Services $29,500 $29,500 $29,500 100% Poudre School District: 305 Club Sustainability Program $30,275 $0 0% Funding for 2008 (Fall) Funding for 2009 (Spring) 17 Project Self-Sufficiency: Services for Single Parents $33,000 $18,837 $14,163 $33,000 100% RVNA: Home Health Care Scholarships $38,000 $38,000 $38,000 100% Respite Care: Sliding Scale Fee Tuition Assistance $25,000 $25,000 $25,000 100% Turning Point: Volunteer Coordinator $25,000 $0 0% United Day Care Center: Sliding Scale Fee Tuition $60,000 $54,367 $54,367 91% Volunteers of America: Home Delivered Meals Program $29,108 $29,108 $29,108 100% Women's Resource Center: Dental Care Assistance $38,421 $35,223 $35,223 92% Total $872,520 $201,195 $440,334 $641,529 74% Homelessness Prevention Initiative (HPI) received CDBG-R (ARRA - Stimulus Money) Requested AHF CDBG HOME HSP HSP-KFCG TOTAL CARE: Privincetowne On-site Infrastructure, Part I $500,000 $300,000 $300,000 60% City of Fort Collins: Land Bank Program $140,000 $0 0% Cornerstone Assoc.: Cornerstone Apartments $300,000 $0 0% Ft. Collins Hous. Auth. - Village on Stanford Rehabilitation $450,000 $351,571 $98,429 $450,000 100% N2N - Improvements to Coachlight Plaza Apartments $185,635 $185,635 $185,635 100% City of Fort Collins: Consolidated Plan $15,000 $8,500 $6,500 $15,000 100% Total $1,590,635 $8,500 $843,706 $98,429 $950,635 60% FCHA received $230,466 of CDBG-R (ARRA - Stimulus Money) AHF CDBG HOME HSP HSP-KFCG TOTAL CARE: Provincetowne On-site Infrastructure, Part II $700,000 $20,250 $484,761 $505,011 72% City of Fort Collins: Home Buyer Assistance - Rentals $100,000 $100,000 $100,000 100% Ft. Collins Hous. Auth.: Tenant-Based Rental Assistance $167,900 $167,900 $167,900 100% Ft. Collins Housing Auth.: TBRA-Admin $40,000 $40,000 $40,000 100% Habitat for Humanity: Land Acquisition $75,000 $63,865 $63,865 85% Housing Authority of Loveland: LHIP $100,000 $100,000 $100,000 100% Neighbor to Neighbor: Playground/Landscaping $60,500 $25,000 $25,000 41% Total $1,243,400 $260,250 $88,865 $652,661 $1,001,776 81% Human Services Agencies Requested AFH CDBG HOME HSP HSP-KFCG TOTAL BASE Camp: Sliding Scale Fee Tuition Assistance $63,000 $54,200 $54,200 86% Boy & Girls Club: After-School Program $21,036 $17,458 $17,458 83% Catholic Charities Northern: Senior Outreach $10,000 $7,000 $7,000 70% Catholic Charities Northern: Shelter & Supportive Services $55,000 $29,500 $29,500 54% Crossroads Safehouse: Advocacy Program $99,216 $51,042 $51,042 51% Funding for 2009 (Spring) Funding for 2009 (Fall) Funding for 2010 (Spring) 18 Disabled Resource Services: ATI Program $27,884 $22,010 $22,010 79% ELTC: Employment Skills Training $20,000 $17,500 $17,500 88% Elderhaus: Mindset Therapy Center Activity Program $23,592 $20,142 $20,142 85% Family Center: Sliding Scale Fee Tuition Assistance $25,000 $20,500 $20,500 82% Food Bank: Kids Café Program $27,052 $21,667 $21,667 80% HPI: Emergency Rent Assistance $45,000 $28,516 $11,484 $40,000 89% Mathews House: Program for At-Risk Youth $29,120 $0 0% NCAP: Client Services & Homelessness Prevention $29,500 $24,500 $24,500 83% Neighbor to Neighbor: Emergency Rent Assistance $23,000 $20,200 $20,200 88% Neighbor to Neighbor: Housing Counseling $68,500 $39,415 $39,415 58% PSS: Services for Single Parent Families $33,000 $28,500 $28,500 86% Respite Care: Sliding Scale Fee Tuition Assistance $25,000 $22,500 $22,500 90% RVNA: Home Health Care Scholarships $38,000 $26,100 $26,100 69% Turning Point: Emergency Mental Health Services $10,000 $0 0% United Day Care Center (Teaching Tree): Sliding Scale Fee $60,000 $51,500 $51,500 86% VOA: Home Delivered Meals $29,108 $19,500 $19,500 67% Women's Resource Center: Dental Care Assist. $41,442 $34,725 $34,725 84% Total $803,450 $178,358 $389,601 $567,959 71% Housing Projects Requested AHF CDBG HOME HSP HSP-KFCG TOTAL CARE: Privincetowne Pre-Development Costs, Part III $250,000 $250,000 $250,000 100% City of Fort Collins: Home Buyer Assistance $200,000 $200,000 $200,000 100% Total $450,000 $0 $450,000 $0 $450,000 100% Planning & Housing Projects Requested AHF CDBG HOME HSP HSP-KFCG TOTAL City of Fort Collins: Consolidated Plan Implementation $35,535 $35,535 $35,535 100% City of Fort Collins: Home Buyer Assistance $50,000 $50,000 $50,000 100% CARE: Provincetowne Green CHDO Capacity Grant $50,000 $0 0% Caribou: Caribou Apartments Phase II $300,000 $300,000 $300,000 100% FCHC: Legacy Senior Residences $720,000 $28,890 $187,977 $73,133 $290,000 40% Harvest Construction: Spring Creek Apartments $585,000 $0 0% Housing Authority of Loveland: LHIP $110,000 $110,000 $110,000 100% Total $1,850,535 $188,890 $223,512 $373,133 $785,535 42% Human Services Agencies Requested AFH CDBG HOME HSP HSP-KFCG TOTAL BASE Camp: Sliding Scale Fee Tuition Assistance $57,000 $57,000 $57,000 100% Boy & Girls Club: After-School Program $19,892 $18,644 $18,644 94% CARE Housing: Supportive Services Program $25,000 $0 0% CASA: Program Support $14,976 $9,360 $9,360 63% Funding for 2010 (Spring) Funding for 2010 (Fall) Funding for 2011 (Spring) 19 Catholic Charities Northern: Senior Outreach $12,000 $11,331 $11,331 94% Catholic Charities Northern: Shelter & Supportive Services $75,000 $40,000 $40,000 53% Center for Family Outreach: Youth Diversion Program $17,500 $0 0% ChildSafe: Child Abuse Program $30,000 $0 0% Crossroads Safehouse: Advocacy Program $99,216 $16,469 $25,733 $42,202 43% Disabled Resource Services: ATI Program $28,442 $28,442 $28,442 100% ELTC: Employment Skills Training $2,209 $19,483 $19,483 882% Elderhaus: Mindset Therapy Center Activity Program $23,592 $23,592 $23,592 100% Family Center: Sliding Scale Fee Tuition Assistance $30,000 $30,000 $30,000 100% Food Bank: Kids Café Program $21,000 $21,000 $21,000 100% HPI: Emergency Rent Assistance $45,000 $45,000 $45,000 100% LCMH: Community Dual Disorder Treatment $27,082 $14,000 $14,000 52% LCMH: Employee Assistance-Murphy Center $16,012 $0 0% Matthews House: Program for At-Risk Youth $27,639 $27,639 $27,639 100% Neighbor to Neighbor: Housing Counseling $69,205 $10,175 $30,000 $40,175 58% Neighbor to Neighbor: Emergency Rent Assistance $25,000 $25,000 $25,000 100% NCAP: Client Services & Homelessness Prevention $29,500 $24,500 $24,500 83% PSS: Services for Single Parent Families $33,000 $22,000 $22,000 67% RVNA: Home Health Care Scholarships $35,000 $9,049 $25,951 $35,000 100% Respite Care: Sliding Scale Fee Tuition Assistance $30,000 $30,000 $30,000 100% Suicide Resource Center: R.A.P.P & Hope Programs $3,000 $3,000 $3,000 100% Teaching Tree: Sliding Scale Fee Tuition Assistance $60,000 $60,000 $60,000 100% VOA: Home Delivered Meals $29,200 $29,200 $29,200 100% Women's Resource Center: Dental Care Assist. $44,890 $32,890 $32,890 73% Total $930,355 $149,124 $389,601 $150,733 $689,458 74% Housing Projects Requested AHF CDBG HOME HSP HSP-KFCG TOTAL FCHA: Land Acquisition - Spring Creek Apartments $350,000 $0 0% FCHC: Legacy Senior Housing $430,000 $87,549 $339,615 $427,164 99% Merten: Union Place - Senior Housing $750,000 $750,000 $750,000 100% Total $1,530,000 $837,549 $339,615 $1,177,164 77% Funding for 2011 (Spring) 20 Revision Title: Fund: Contact: Budget Office Result Area: Related Offer #: 106.2,3 and 6 Total Amount: $546,571 Funding Source #1: Funding Amount #1: $546,571 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Restore Conservation Trust Funds for Trail Construction N/A This revision request reduces the amount to be transferred from the Conservation Trust Fund to the General Fund for park maintenance in 2012. This reduction brings the transfer back to the 2010 level of $730,146. The current budgeted transfer in 2012 is $1,276,717 ($934,717 ongoing and $342,000 reserves). Funding for park maintenance at this level is not sustainable in the Conservation Trust Fund and eliminates funding for the trail construction program. When compiling the 2011-2012 budget there were insufficient General Fund revenues to support the parks maintenance expenses approved for 2012. The decision was made to increase the use of Conservation Trust money including the use of reserves for parks maintenance in 2012 and reconsider the funding during the 2012 revision process. If General Fund revenues (primarily Sales and Use Taxes) came in higher than expected, we would backfill the Conservation Trust Fund reserves and ongoing revenue. 100 - GENERAL FUND Culture, Parks and Recreation General Fund 21 Revision Title: Fund: Contact: Steve Dush Result Area: Relative Offer #: 108.11 Total Amount: $75,341 Funding Source #1: Funding Amount #1: $75,341 FTE Requested: Description: The Development Review Center (DRC) will be losing a long-term, 22-year employee (City Planner) at the end of March 2012 due to retirement. In an effort to maintain service levels to the best of our ability, to ensure sufficient time to train and pass on the wealth of information posessed by the current incumbent to a new City Planner, and to implement the automation of planning and development records, we are proposing to implement a succession planning process. Please refer to the accompanying information that follows. .75 FTE - Contractual City Planner/Records Tech 2012 BUDGET REVISION REQUEST Development Review Succession Planning .50 FTE - Contractual City Planner 100 - GENERAL FUND Economic Health General Fund 22 Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov.com Planning, Development & Transportation Council Finance Committee Information - CDNS September 15, 2011 Revision Request: Development Review Succession Planning FTE Requested: .5 FTE Contractual City Planner and .75 FTE Contractual City Planner/Records Tech Description: The Development Review Center (DRC) will be losing a long-term, 22-year employee (City Planner) at the end of March, 2012 due to retirement. In an effort to maintain service levels to the best of our ability, to ensure sufficient time to train and pass on the wealth of information possessed by the current incumbent to a new City Planner, and to implement the automation of planning and development records, we have submitted this request. Rationale: 1) .5 FTE Contractual City Planner: We are asking for the continuation of an existing City Planner contract for the first six months of 2012. This Planner has been with the City for six years and has been doing an exceptional job. The Planner was RIF'd during the 2010 BFO process, but was hired back as a contractual employee to perform specific duties in Economic Health and Community Development and Neighborhood Services. Continuation of this contract ensures continuity and continued assistance with the work load demands being experienced within the DRC. It also gives staff the time to complete an internal hiring process, something that cannot occur until April, 2012. If this existing position is accommodated by economic health, the request for the monies would still be necessary to accommodate the succession planning by allowing for a new planner to be hired and trained by the retiring planner position that will occur in April of 2012. 2) .75 FTE Contractual City Planner/Records Tech: Secondly, we are asking for the move of the retiring Planner to a three-quarter time (.75 FTE) contractual employee, based on feedback from him that he would like to continue in some fashion with the City. Due to the above-referenced training and succession planning needs, as well as the need identified for automation of planning and development records, a position that combines both elements is being proposed. The position would focus 20% of time on City planning, training, and succession efforts, and 80% of time on records management efforts. The pay for the position will be adjusted as well by paying at a City Planner rate for 20% of the time expended and at a Records Tech rate for 80% of the time expended. Doing so results in an hourly wage of $16.80 and an annual salary (at .75 FTE) of $26,000. Annual benefits are estimated to be $15,000, for a total compensation amount of $41,000. We estimate that it will take us approximately 8 years, with a .75 FTE, to convert all Current Planning paper files into an electronic medium (excluding those records already off-site); longer if the FTE is not 100% devoted to this task. Doing so, however, will increase the services provided to customers as they will be able to quickly reference this information online, as well as enhance staff's efficiency by giving all staff quick access to records without having to search for paper files. In combination with the 23 CDNS Council Finance Committee Info September 15, 2011 Page 2 Building and Engineering records already converted to electronic format, as well as other functions such as GIS, we will have a much more robust way of identifying activities that have occurred on properties and providing better guidance, studies and analysis by having more complete information readily available to us. Although the City Planner who will be moving to this position, if approved, is not trained in records management duties, his knowledge of the planning files and related documents make him an invaluable resource for this task. It is much harder to train someone on the planning files, types and purposes of documents, items that should be kept, etc., than it is to train them how to scan and index. As well, knowing the documents is imperative for indexing them appropriately to enable all those who access the documents electronically to find what they are looking for. Outcomes: Approval of this request will assist us in meeting workload demand and service expectations of the Development Review Center. It supports the City’s efforts for succession planning and gives us the opportunity to increase services levels and staff efficiency for the reasons stated above. Data: Perhaps one of the most valuable resources the City has is manifest in the institutional knowledge of its long-term employees. The ability to mine this knowledge while providing an efficient method of file management is a win/win/win for the City, a retiring employee and an incoming employee. Succession planning is key to our workforce as our demographics are changing with the boom of retirements resulting from the aging baby boomers. It takes 30 minutes to 1 hour to prep an individual file for scanning. It takes another 2 hours to completely scan, index and finalize things. Because each file is different and can take more or less time, we are assuming an average 2 hours per file for all – prep, scanning, indexing and finalizing. Assuming 40 files per box, it will take approximately 80 hours per box to convert our planning files from paper to electronic format. We have approximately 156 boxes of information here at 281 (including Historic Preservation and some Zoning files). 156 * 80 = 12,480 hours to get this completed. This does not include any of the boxes we have off-site, which is likely more than the 156 boxes we have here. If we have someone working ¾ time on this, it will take 8 years to complete the transfer of just the records we have on-site. 24 Revision Title: Fund: Contact: Steve Dush Result Area: Package/Offer #: 108.11 Total Amount: $65,000 Funding Source #1: Funding Amount #1: $65,000 FTE Requested: Description: 0.5 FTE - Environmental Planner This request is to increase 2 existing half-time (.5 FTE) positions to full-time (1.0 FTE) in order to help meet the increased demand in the Development Review Center (DRC). Since 2006, 11.7 FTE have been eliminated from the DRC: 4.5 FTE in 2006 as part of the consolidation efforts and 7.2 FTE in 2009 due to a decline in development and building activity. These positions included: 1 FTE Director (Neighborhood & Building Services), 2 FTE Building Inspectors, 1 FTE Plans Analyst, 1 FTE Senior Planner, 1 FTE City Planner, 3 FTE Customer Service Reps, 1 FTE Admin Assistant, 1 FTE Admin Secretary, .5 FTE Environmental Planner and a .2 FTE Civil Engineer. Since 2009, we have seen an increase in activities for both 2010 and YTD 2011. The most marked increase in activity has been with building permits where we are 35% higher than in 2009 as of July 31st. This results in added activities for many staff in the DRC, including Customer Service, Planners, Plans Analysts and Inspectors. As well, added responsibilities from new programs such as Green Building, have also resulted in additional work load. Please refer to the accompanying information that follows. 2012 BUDGET REVISION REQUEST Development Review - Customer Service Demand 0.5 FTE - Building & Permit Tech 100 - GENERAL FUND Economic Health General Fund 25 Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov.com Planning, Development & Transportation Council Finance Committee Information - CDNS September 15, 2011 Revision Request: Development Review – Customer Service Demand FTE Requested: .5 FTE Building & Development Review Tech and a .5 FTE Environmental Planner Description: This request is to increase 2 existing half-time (.5 FTE) positions to full-time (1.0 FTE) in order to help meet the increased demand in the Development Review Center (DRC). Since 2006, 11.7 FTE have been eliminated from the DRC: 4.5 FTE in 2006 as part of the consolidation efforts and 7.2 FTE in 2009 due to a decline in development and building activity. These positions included: 1 FTE Director (Neighborhood & Building Services), 2 FTE Building Inspectors, 1 FTE Plans Analyst, 1 FTE Senior Planner, 1 FTE City Planner, 3 FTE Customer Service Reps, 1 FTE Admin Assistant, 1 FTE Admin Secretary, .5 FTE Environmental Planner and a .2 FTE Civil Engineer. Since 2009, we have seen an increase in activities for both 2010 and YTD 2011. The most marked increase in activity has been with building permits where we are 35% higher than in 2009 as of July 31st. This results in added activities for many staff in the DRC, including Customer Service, Planners, Plans Analysts and Inspectors. Added responsibilities from new programs such as Green Building, have also resulted in additional work load. Rationale: 1) Customer & Admin Services (CAS) – .5 FTE Building & Development Permit Tech: This position is responsible for all initial customer contact at the DRC, determining customer needs and educating them about DRC processes and procedures; development submittal intake and routing; building and construction permit intake and issuance; plan review on small projects; calculating and collecting fees; tracking approvals/holds for permits and Certificates of Occupancy; contractor licensing; and various financial and reporting duties. The CAS group has experienced a loss of 5.0 FTE since 2006. Although hourly monies were approved as part of the 2011/2012 BFO process, the hourly assistance is not enough to bridge the service gap we are experiencing. This is being realized in the form of work load delays on numerous activities (i.e., wait time for phone calls up to 30 minutes; wait time for customers in lobby up to 45 minutes; delay in permit submittal routings up to 2 weeks, delay in over-the-counter permit issuance up to 3 weeks; delay in fee estimates up to 1 month; delay in contractor licensing duties up to 3 months and items such as web updates, plan filing and records management for development review not being completed at all); climbing comp time balances; and the need for others in the organization to assist with counter coverage and work load creating a backlog in their regular duties. The current situation is unsustainable for the following reasons: A. Comp time is a detrimental way to handle prolonged workload since it creates additional coverage problems as employees use this time in addition to their vacation time, as well as budget problems if an employee leaves with high comp time balances accrued. As well, once the employees reach the maximum accrual allowed, they are 26 no longer able to provide additional assistance. B. Employee burnout and loss of morale are highly likely to increase. C. Any increase in workload will further impact timelines since there is simply no more room to absorb additional work. 2) Current Planning – .5 FTE Environmental Planner: This position was reduced to half- time in 2006. However, with the increase in service demands currently being experienced, as well as the addition of new programs such as Green Building, this position needs to be reinstated to full-time status. Based on preliminary staff analysis, we have found over 75% of wetland-related habitat types occur on private land within our City Limits and our GMA boundaries. Our current .5 FTE is the only person responsible for managing these, and other natural habitats and features, that occur on private land. The main vehicle for protection of these resources is through the Land Use Code, which is implemented by the Development Review Center. So, as well as having the private- land resources to manage, this .5 FTE position is responsible for reviewing and making recommendations on how to protect, maintain, and enhance these resources as part of the development review process. In addition, it is well documented via research and through observations on projects in the City, that native landscapes are much more complex to establish and restore. So often in the applications that come through the DRC, the parcels' existing natural habitats or features have been degraded over time due to the development encroachment surrounding the features. Thus, a significant component of the Development Agreement emphasizes restoring these lands to a higher function, including specific, line-items that stress weed management and control, proper seed mixes and post-construction monitoring. This position is responsible for these duties as well as for inspections of landscaping, wetlands and similar environmental items for several years after approval, to ensure that these things continue to meet what was approved. Current projects include six wetland-specific projects and ten other developments containing natural habitat buffer zones, for a total of almost 30 acres. As Council is aware, these projects require significant staff time to ensure success, as establishing, re-establishing, and ongoing management of native communities requires a long-term commitment from both the developer and staff to ensure commitments are adhered to. Enhanced tracking of these projects via Accela has increased our capacity to ensure compliance in 2011, but more is needed to ensure we are achieving our City’s private land conservation objectives. Based on our current level of resources, we are unable to provide the level of service we believe Council expects in this area. The current incumbent employee frequently works beyond the 20 hours per week allotted for this position. Because the position is exempt, the employee receives no overtime or comp time for these extra efforts. Outcomes: Increasing these positions to full-time will assist us in meeting workload demand and service expectations of the Development Review Center. Data: See graphs on following pages 27 Development Review Center Workload Activity As of July 31, 2011 The following information depicts work load indicators for the Development Review Center (DRC). The data shown compares year-to-date information through July 31 st for 2007 through 2011. Total permits as of the end of July, 2011 are up 35% over 2009, the year where many staff reductions occurred. Total Permits (2007-2011 as of July 31st) 0 1000 2000 3000 4000 5000 2007 2008 2009 2010 2011 Year Number Issued Total Permits New residential permits are up 125% over 2009 numbers. As well, residential additions/alterations are up 41% and residential miscellaneous (i.e., sheds and garages) are up 95% over 2009 numbers. Residential Building Permits (2007 - 2011 as of July 31st) 0 100 200 300 400 500 600 700 New Dw elling Units Additions/Alterations Miscellaneous Type of Permit Numbers Issued 2007 2008 2009 2010 2011 28 New commercial permits are equal to 2009 numbers. Commercial additions/alterations are up 41% and commercial miscellaneous (i.e., sales trailers, temporary sales lots) are 10 times higher than in 2009; however the numbers are very small – 0 permits in 2009; 10 permits in 2011. Commercial Building Permits (2007 - 2011 as of July 31st) 0 50 100 150 200 250 300 350 400 450 500 New Commercial Additions/Alterations Miscellaneous Type of Permit Numbers Issued 2007 2008 2009 2010 2011 Over-the-Counter permits are for things such as basement finishes, roofing, and furnace/water heater replacements. These permits are 33% higher than 2009. Over-the-Counter Building Permits ( 2 007 - 2011 as of July 3 1st ) 2111 2719 1841 2048 2648 0 500 1000 1500 2000 2500 3000 Over-the-Counter Type of Permit Numbers Issued 2007 2008 2009 2010 2011 29 The increase in building permit activity comes with an increase in all ancillary services related to this activity for all employee groups represented in the DRC. This includes customer service at the counter, plan review, inspections, contractor licensing efforts, and customer phone calls. As an example, below is phone call data related only to one employee group of the DRC - Customer & Admin Services. It shows the numbers of incoming phone calls answered by this group for the entire year 2007-2010. The numbers shown for 2011 are the calls that have come in through July 31 st ! So, in the first 7 months of 2011, this group of employees has answered more phones calls than all of 2008, 2009 or 2010. By year- end, we will have far exceeded total calls received in any of the years listed. Phone Calls Received by CAS Group (2011 #s are through July 31st; all other Years are through December 31st) 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 2007 2008 2009 2010 2011 Year Calls Received Phone Calls 30 Revision Title: Fund: Contact: Tom DeMint Result Area: Package/Offer #: 132.1 - 6 Total Amount: $228,926 Funding Source #1: Funding Amount #1: $59,768 Funding Source #2: Funding Amount #2: $169,158 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Poudre Fire Authority Non Discretionary & Total Compensation Increase N/A In 2012, PFA will incure non-discretionary increases projected as follows: - $ 25,275 Line-item contingency (by PFA Board policy) - $ 50,000 Fuel - $ 11,406 General Liability Insurance - $ 1,330 Wastewater - $ 3,995 Electric $ 92,006 TOTAL Non-Discretionary Increase ($74,709 City's portion or 81.20%) In addition, PFA employee salaries have been frozen since 2009. We conduct an annual total compensation survey of nine Front Range fire departments in October/November, which is the soonest we will have comparison data. However we believe our dedicated employees should receive a modest salary increase of one and a half percent in 2012 based on current projections. The City's portion of a 1.5% salary increase is $154,217. This does not include employees funded by KFCG funds, since those funds will see an increase in 2012. PFA is requesting to provide a 1.5% salary increase ($154,217) and increases in non-discretionary line items ($74,709) for a total City contribution of $228,926. 840 - POUDRE FIRE AUTHORITY Safe Community General Fund Keep Fort Collins Great Fund 31 Revision Title: Fund: Contact: Wendy Williams Result Area: Package/Offer #: 3.1 Total Amount: $29,157 Funding Source #1: Funding Amount #1: $29,157 FTE Requested: Description: 2012 BUDGET REVISION REQUEST CMO Policy and Project Manager Increase from 0.8 to 1.0 FTE 0.2 FTE - Increase from 0.8 to 1.0 FTE This position develops and coordinates needed programs, proposals and analysis on behalf of City Council and the City Manager. It also is responsible for all legislative analysis and advocacy of both State and Federal issues, including support for the Council Leglislative Review Committee (LRC) and lobbying with the Colorado General Assembly. In response to budget shortfalls the position was reduced from 1.0 to .8 in 2010. As a result, the level of service has also been reduced. This offer will enable the City to provide more robust policy and project management and analysis, and to play a more proactive role in advocating for legislative changes with the Colorado General Assembly. 100 - GENERAL FUND High Performing Government General Fund 32 Revision Title: Fund: Contact: Wendy Williams Result Area: Package/Offer #: New Total Amount: $79,414 Funding Source #1: Funding Amount #1: $79,414 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Federal Legislation Analysis and Action 0.5 FTE - Policy and Project Manager The Council Legislative Review Committee has requested that the City take a more proactive role in influencing Federal legislation. This offer includes funding for .5 FTE responsible for tracking, analyzing and advancing the City's position on a variety of bills filed by the United States Congress. The City may also partner with local Congressional representatives to initiate legislation of importance to the City of Fort Collins. This offer includes a rough estimate of $21,000 for Federal lobbying services based in Washington, DC. The City currently belongs to organizations that have some Federal lobbying capacity (e.g. Colorado Municipal League, National League of Cities, ICMA) and these organizations would also be utilized to effect change. All activities, including communicating and coordinating with consultants, partner organizations and the Legislative Review Committee, would be the responsibility of the new 0.5 FTE. 100 - GENERAL FUND High Performing Government General Fund 33 Revision Title: Fund: Contact: Bruce Hendee Result Area: Package/Offer #: New Total Amount: $200,000 Funding Source #1: Funding Amount #1: $150,000 KFCG - Other Transportation $50,000 FTE Requested: Description: The City is about to embark on the largest infrastructure project in its history. The MAX BRT project will cost between $80M-$84million to construct. Additionally City Council last year approved the final Plan Fort Collins Comprehensive Plan which is a far reaching planning document which will guide the city forward for years to come. As part of this document the Mid Town corridor is identified as a major geographic location for economic redevelopment. To this end Council in recent weeks has approved the extension of an Urban Renewal District into the Mid Town area. Taken in combination, it is important to invest in a comprehensive strategy to ensure key strategic activities take place to maximize the chances for success of the corridor. Staff feels there are several key elements needed to ensure success of these major investments. 1. Communication Strategy A. Establish ongoing communication now about the corridor as an economic health corridor. B. Institute a pre construction and during construction communication program similar to the highly recognized TREX program used in Denver during construction of additional lanes and a light rail line. C. Develop branding and a strategy together with local merchants to define the corridor in recognizable terms. Actively communicate with merchants about the benefits of the corridor through a thoughtful campaign. 2. Prepare a parking strategy to encourage the development community to develop at higher densities. This is important to realize the benefits of the TOD concept and reduce sprawl and maximize the potential for success of MAX. Without this strategy developers will develop at lower densities than necessary to meet the intent of the plan. 3. Create an Urban Design Plan which establishes the important framework for future redevelopment. This includes working with local merchants to encourage the formation of a self sustaining Business Improvement District. This plan will establish major districts, character areas, sub-district identities, urban design for the area adjacent to MAX, and for College Avenue. The plan will also include the development an approach for connecting to Foothills Mall, enhanced urban plans for stations, promenade along the corridor, architecture guidelines, and a strategic plan for merchants to use Max for marketing benefits. This plan is an extension of the Mid Town Study which identified key urban study as a next phase. 2012 BUDGET REVISION REQUEST Mason Corridor Synergies and Support Services N/A 100 - GENERAL FUND High Performing Government General Fund 34 Revision Title: Reorganization - Office of Sustainability Fund: Contact: Bruce Hendee Result Area: Package/Offer #: New Total Amount: $122,200 Funding Source #1: Funding Amount #1:$91,650 Natural Areas Fund $30,550 FTE Requested: Description: 2012 BUDGET REVISION REQUEST 1.0 FTE - Sustainability Director 100 - GENERAL FUND Environmental Health General Fund This offer is to retain one FTE for the purposes of heading a new position which would be titled Environmental Services Director. This person would report to the Chief Sustainability Officer (CSO). The Office of Sustainability would be a new City department with the intent of institutionalizing Sustainability as a key component of the City Organization. The organizational change is as follows: Chief Sustainability Officer directs two immediate departments and one possible future department. The structure is based on the Triple Bottom Line of economy, environment, and social health. The CSO would lead the Economic Health Office, Environmental Services Office, and lead efforts to enhance the city position in social health. To accomplish this reorganization the following would occur: 1. Formation of an official Office of Sustainability (OSUS) 2. Hire an Environmental Services Director ( 1 FTE) 3. Environmental Services within the Natural Resources Office would move to OSUS 4. An Environmental Policy specialist moves from utilities to the OSUS. This position is funded through a one year contract extension by Utilities. 35 Revision Title: Fund: Multiple Contact: Amy Sharkey Result Area: Package/Offer #: N/A Total Amount: $812,390 Funding Sources: Funding Amounts: General Fund $139,780 Subsidized Funds Cultural Services & Facilities Fund $14,375 Recreation Fund $17,928 Cemeteries Fund $2,138 Transit Services Fund $2,231 Street Oversizing Fund $4,429 Transportation Services Fund $94,403 General Fund & Subsidized Funds $275,284 Keep Fort Collins Great Fund $19 Neighborhood Parkland Fund $475 Conservation Trust Fund $8,033 Natural Areas Fund $28,543 Golf Fund $4,937 Light & Power Fund $193,740 Water Fund $77,857 Wastewater Fund $66,733 Stormwater Fund $45,608 Equipment Fund $41,724 Self Insurance Fund $1,622 Data & Communications Fund $22,890 Benefits Fund $2,325 Utility Customer Svc. & Admin. Fund $42,600 $537,106 TOTAL $812,390 FTE Requested: None Description: The City's philosophy is to provide a compensation program that is competitive in attracting and retaining quality employees. The goal has been to pay employees, on average, at or slightly above the "target market", based on performance. As a result of Citywide budget reductions for the past few years, nearly 1/3 of City employees have fallen below "market;" 209 of those are merit employees, and 129 are skills-based. Total cost to correct the market problem is $1,424,486. The City will use funds currently appropriated in the 2012 Budget for personnel cost increases to bring 113 merit employees and 129 skills-based employees to within 5% of their respective target market, so long as they are meeting performance expectations. The cost of these increases is $612,096. This budget exception offer requests $812,390 to bring employees fully up to their target market. It represents the difference between the full cost ($1,424,486) of bringing the employees to their respective target market and the amount included in the 2012 Budget ($612,096). This offer is contingent upon City Council's adoption of the 2012 Pay Plan. 2012 BUDGET REVISION REQUEST Below Market Pay Adjustment High Performing Government Reserves Other Funds 36 Below Market Costing – Market Revision Request Data as of August 29, 2011 Our Pay Philosophy • Provide a program that will be competitive in attracting and retaining quality employees needed to execute the City’s vision and mission. The goal is to pay employees, on average, at or slightly above target market based on performance. • The “target market” is the average actual pay for a job. Data is supplied from published surveys. The midpoint of the pay range is set using the “targeted market” information. As with all surveys, there is a percentage of error to consider. For purposes of below market costing +/- 2% will be used as the margin of error. Therefore, 2% below and 2% above the midpoint of the pay range is the “target market”. Target Market - - - - - - - - Pay Grade Minimum Midpoint Maximum Employees should be paid at the targeted market of their pay range unless: • New to the City with entry level experience, knowledge, skills, and abilities • Rehired by the City with entry level experience, knowledge, skills, and abilities • Paid correctly based on knowledge, skills, and abilities • Paid correctly based on experience • New to the position (promoted, transferred, classification changes) • Performance issues (recent past year(s) or current year) • Performance Improvement Plan • Disciplinary Action • Internal equity 37 Current Situation The City currently has 284 merit employees that are below market; this equates to 35% of merit employees • Recommend excluding 75 merit employees from costing because of specific business reasons (employees identified as new hires or rehires, promoted employees, and employees with changes in classification). The rationale for excluding this group of employees is that when they were hired, promoted, etc. their starting salaries were negotiable, and that a business case exists for why they are currently paid below the target market. Also excluded are employees identified with potential performance issues, pay revisions, and changes in occupational groups. • Of the remaining 209 employees, 113 employees are more than 5% (up to 22%) below market Skills-Based Pay employees are currently linked to their 2008 pay ranges due to the fact that we have not been able to grant any type of market increase to employees. Skill ladder pay ranges are set just like merit employee pay ranges by using average actual salaries paid in other public and private organizations as the basis for setting the pay range midpoints, our market. Skills- Based Pay employees have the ability to progress through their entire pay range, up to the pay range maximum, based on established skill ladder criteria. • The City has 129 skills-based pay employees that are “frozen” in the 2008 pay ranges Compensation Levels All City Employees (64% at or above target market, 36% below target market) New Hires & Rehires, 33, 3% Promotions, 16, 2% Classification Changes, 10, 1% Performance Issues, 14, 1% Below Target - Merit, 209, 18% At or Above Target Market, 730, 64% Below Target - SBP, 129, 11% Other, 2, 0% 38 Market Revision Request – Bring eligible Merit and Skill Employees up to Target Market # of Merit Employees Impacted: 209 Cost: $430,131 Impact on General/Subsidized Funds: 122 employees at cost of $252,272 # of Skill-Based Pay Employees Impacted: 129 Cost: $382,259 Impact on General/Subsidized Funds: 9 employees at a cost $23,012 TOTAL # of Employees Impacted: 338 TOTAL Cost: $812,390 TOTAL Impact on General/Subsidized Funds: $275,284 Below Market Costing - Market Exception Request $382,259 Recommended Adjustment $430,131 Recommended Adjustment $335,128 Not Adjusting $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 Merit SBP Employees Cost Below Market Costing - by Fund Merit & SBP ees - Market Exception Request ($812,390) Other Funds $153,168 19% Utility Funds $383,938 47% General Fund & Subsidized Funds $275,284 34% 39 THIS PAGE LEFT INTENTIONALLY BLANK 40 Revision Title: Fund: Contact: Dawna Gorkowski Result Area: Related Offer #: 105.2 Total Amount: $40,000 Funding Source #1: Funding Amount #1: $40,000 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Downtown Ice Rink Installation and Removal N/A This request is for funding to set up and remove the ice rink in Old Town Square for the 2012/2013 holiday season. As a result of the amendment to the DDA statute, the DDA will be allowed to collect tax increment revenue for a total of 50 years, but in a reduced capacity in the final 20 years. The combined effects of the statutory amendment resulted in a projected revenue reduction for the DDA of 63% beginning in fiscal year 2012. Due to this reduction, the DDA no longer has funding for the ice rink. The DDA initially purchased the ice rink in 2005 for $200,000 and pays the Parks Division to install and remove the rink. The Recreation Department operates the rink. Sufficient revenue is generated from the operation of the rink to cover Recreations costs, but not the installation and removal costs. DDA has funding for the rink in 2011, but not 2012. The ice rink offer (105.2) was purchased in 2011 and 2012 with DDA as the funding source. This offer will take the 2012 budget of $40,000 out of the General Fund and add it to the Keep Fort Collins Great Fund. 254 - KEEP FORT COLLINS GREAT FUND Economic Health KFCG - Other Community Priorities 41 Revision Title: Fund: Contact: Dawna Gorkowski Result Area: Related Offer #: New Total Amount: $85,000 Funding Source #1: Funding Amount #1: $85,000 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Downtown Holiday Lighting N/A This is a request to fund the downtown holiday lighting for the 2012/2013 holiday season. As a result of the amendment to the DDA statute, the DDA will be allowed to collect tax increment revenue for a total of 50 years, but in a reduced capacity in the final 20 years. The combined effects of the statutory amendment resulted in a projected revenue reduction for the DDA of 63% beginning in fiscal year 2012. Due to this reduction, the DDA no longer has funding for the holiday lights. The DDA initially purchased the lights in 2007 for $100,000. The City, DDA, and Downtown Business Association (DBA) agreed to split the cost of installation and removal of the lights each year. The City and DDA paid $30,000 and DBA paid $15,000. In 2010 neither the City nor the DBA had funding for the lights, so DDA paid the entire cost. The DDA will cover the cost in 2011, but that is the last year. This offer also includes repairs and replacement of lights. The weather, vandalism, and squirrels have taken a toll on the current lights and there is a need to replace light bulbs and some light strands. This offer includes $15,000 for replacement and repair of the lights and $70,000 for installation and removal. 100 - GENERAL FUND Economic Health Keep Fort Collins Great Fund 42 Revision Title: Fund: Contact: Ellen Switzer Steve Catanach Result Area: Related Offer #: 10.1 Total Amount: $121,969 Funding Source #1: Funding Amount #1: $121,969 FTE Requested: Description: Please refer to the accompanying memo for additional information. For the last several years, the Light and Power Fund has been reducing working capital reserves by drawing down reserves for capital improvements and additions instead of collecting new revenues. The draw down on reserves was accelerated due to decreases in interest income and development fee revenues. Without a series of 3.5% rate increases to cover the capital costs of additions and replacement, reserves will be to below minimum policy levels starting as early as 2013. By Charter, the Light and Power Utility makes a contribution to the General Fund as a payment in lieu of taxes (PILOTs). City Code sets PILOTs at 6% of operating revenues. When the 2011-2012 Budget was developed, the 2012 PILOTs budget was based on the 2012 revenues projected at that time. Since last year, the projected electric operating revenues have increased from $101.8 million to $104.0 million. The increase results in PILOTs increases of $121,969 for 2012. The increased operating revenue is a result of a larger retail rate increase than was projected in the 2011-2012 Budget and a slight increase in projected kWh sales. The 2012 rate increase was originally projected at 6.23%. Staff is now recommending an increase of 8.3%. The additional retail rate increase is due to several factors: an increase in wholesale power costs, a slight increase in kWh sales projections, and a larger than projected increase to fund capital programs. 2012 BUDGET REVISION REQUEST Light and Power Payments in Lieu of Taxes (PILOT) Increase N/A 501 - LIGHT & POWER FUND Safe Community Light & Power Fund 43 44 45 46 Revision Title: Fund: Contact: Ellen Switzer Steve Catanach Result Area: Related Offer #: 11.1 Total Amount: $1,724,505 Funding Source #1: Funding Amount #1: $1,724,505 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Purchase Power Increase N/A Platte River Power Authority has revised its 2012 wholesale rate methodology and rate increase projections since the 2011-2012 Budget was prepared. In addition, actual 2010 kWh sales increased slightly for the first time in several years. While the Utilities is projecting no kWh growth for 2011 or 2012, the 2012 purchases are now projected at actual 2010 levels which are higher than the kWh purchases projected in the original 2011-2012 budget. This exception request is for the additional costs associated with the PRPA rate increases and the increased kWh purchases currently projected. With this exception request, the purchase power budget (exclusive of renewable energy) will total $73,410,587. 501 - LIGHT & POWER FUND Safe Community Light & Power Fund 47 Revision Title: Fund: Contact: Patty Bigner Result Area: Package/Offer #: New Total Amount: $300,000 Funding Source #1: Funding Amount #1: $300,000 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Energy Efficiency Financing Program 0.5 FTE - Administrative Position This offer funds a pilot program to establish an energy efficiency financing program. Although the program is currently being developed, both legal and financial impacts require additional assessment. Utilities will use a consultant to assist in program design. Once developed, the pilot will enable Utilities to understand the level of community need, determine paramenters for making loans and establish a fund for the first year of the program. Based on potential program demand and the necessity of managing the administration of the program, this offer funds an .5 FTE administrative positon ($32,785). This program has the potential to expand to fund water conservation improvements in the 2013 budget but the pilot program will be limited to energy effeciency. The program would be funded from reserves in 2012; however, a rate increase of 0.35% may be needed in 2013 to replenish the reserves used for the program. 501 - LIGHT & POWER FUND Environmental Health Light and Power Fund 48 Revision Title: Fund: Contact: Rita DeCourcey Result Area: Related Offer #: 100.1 Total Amount: $88,054 Funding Source #1: Funding Amount #1: $88,054 FTE Requested: Description: Please refer to the accompanying memo for additional information. Per the City Charter, the Fort Collins Utility is required to make a contribution to the General Fund as a payment in lieu of taxes (PILOTs). City Code sets PILOTs at 6% of operating revenues. When the 2011-2012 Budget was developed, the 2012 PILOTs budget was based on the 2012 revenues projected at that time. Since last year, the projected water operating revenues have been revised to reflect the need for a 6% rate increase to cover the continued decline in demand and reserve requirements. It is expected that water operating revenues will increase from $25.1 million to $26.7 million with the approved rate increase. As a result, PILOTs will increase $88,054 for 2012. The 2012 rate increase was originally projected at 0%, but with continued declines in demand from weather and conservation, staff is now recommending an increase of 6%. The additional rate increase is due to several factors: 1)decline in water demands due to weather, conservation, and economics; 2)decreases in development and non operating revenues requiring operating revenue to cover a larger portion of total costs; and 3) to fund capital programs beyond 2014. 2012 BUDGET REVISION REQUEST Water Payments in Lieu of Taxes (PILOT) Increase N/A 502 - WATER FUND Environmental Health Water Fund 49 50 51 52 53 Revision Title: Fund: Contact: Jon Haukaas Result Area: Related Offer #: New Total Amount: $580,000 Funding Source #1: Funding Amount #1: $580,000 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Water Meter Replacement and Rehabilitation N/A The meters used to measure water consumption are being upgraded over time. We are in the process of accelerating that upgrade process so that all meters will be compatible with the Advanced Metering Infrastructure (AMI) technology. Additional funds are required to meet the timeline of this upgrade need. 502 - WATER FUND Environmental Health Water Fund Reserves 54 Revision Title: Fund: Contact: Phil Ladd Result Area: Related Offer #: 214.2 Total Amount: $22,000 Funding Source #1: Funding Amount #1: $22,000 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Household Hazardous Waste Community Event N/A The requested budget exception is based on the amount of material recycled at the 2011 Household Hazardous Waste (HHW) collection event, which was two times the amount anticipated (based on the 2010 event). In order to accommodate the same level of service, $22,000 needs to be added to the budget for 2012. 504 - STORMWATER FUND Environmental Health Stormwater Fund 55 Revision Title: Fund: Contact: Jon Haukaas Phil Ladd Result Area: Related Offer #: New Total Amount: $1,000,000 Funding Source #1: Funding Amount #1: $1,000,000 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Remove Structures from Poudre River Floodway N/A This request is to fund a land acquisition under the Stormwater Utility's "Willing Seller-Willing Buyer" program. A property owner has expressed interest in selling their property. A majority of this property is in the Poudre River Floodplain including structures in the floodway. This achieves a major safety goal of the Stormwater and Floodplain Programs. The future use of the property could include non-building gateway features on the Poudre River. 504 - STORMWATER FUND Safe Community Stormwater Fund 56 Revision Title: Fund: Contact: Jon Haukaas Phil Ladd Result Area: Related Offer #: New Total Amount: $1,600,000 Funding Source #1: Funding Amount #1: $1,600,000 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Master Plan Flood Mitigation Project Property N/A The West Vine Basin Master Plan shows the need for a Flood Mitigation storage area to solve potential flooding issues along this drainage way. The ideal location is at the confluence of three existing drainageways. This vacant land has recently been put up for sale. The majority of the property is already impacted by the floodplain limiting its ability to be developed. Additional funding is available from the fees collected by Larimer County for the West Vine basin. The future use of the property would be a joint venture with Natural Areas similar to what is being done with the CIPO project. This purchase would lay the groundwork for a major project in the Stormwater Utility Master Plan. 504 - STORMWATER FUND Safe Community Stormwater Fund 57 Revision Title: Fund: Contact: Chris Banister Result Area: Related Offer #: 32.1 Total Amount: $108,000 Funding Source #1: Funding Amount #1: $108,000 FTE Requested: Description: 2012 BUDGET REVISION REQUEST MIS Email, Blackberry & Smart Phone Services N/A MIS will bring Email and PDA services and support in house by the end of 2011. This move requires ongoing, anti- spam maintenance costs to be absorbed by MIS in 2012. This request covers those costs and incorporating anticipated smart phone costs. 603 - DATA AND COMMUNICATIONS FUND High Performing Government Data and Communications Fund Reserves 58 Revision Title: Fund: Contact: Chris Banister Result Area: Related Offer #: 33.4 Total Amount: $62,400 Funding Source #1: Funding Amount #1: $62,400 FTE Requested: Description: 2012 BUDGET REVISION REQUEST MIS Network Services Resource Support 1.0 Hourly FTE Several major projects, including Smart Grid and Mason Corridor, have stretched MIS Network resources. There is minimal opportunity for existing staff to do required routine operations and maintenance on network infrastructure. This resource support has been funded by salary savings from turnover in 2011. MIS does not expect salary savings in 2012. 603 - DATA AND COMMUNICATIONS FUND High Performing Government Data and Communications Fund Reserves 59 Revision Title: Fund: Contact: Chris Banister Result Area: Related Offer #: 35.6 Total Amount: $59,488 Funding Source #1: Funding Amount #1: $59,488 FTE Requested: Description: 2012 BUDGET REVISION REQUEST MIS Technology Customer Software Compliance Support 1.0 Hourly FTE Staying on top of software compliance for the organization has proven difficult using only a portion of an existing classified tech's time. MIS brought in temporary services in 2011 from Adecco to help mitigate the increased demand using salary savings from turnover. MIS does not expect salary savings in 2012 and would like to ensure it retains the current person through 2012. 603 - DATA AND COMMUNICATIONS FUND High Performing Government Data and Communications Fund Reserves 60 Revision Title: Fund: Contact: Chris Banister Result Area: Related Offer #: 35.6 Total Amount: $30,709 Funding Source #1: Funding Amount #1: $30,709 FTE Requested: Description: 2012 BUDGET REVISION REQUEST MIS Technology Customer Support Restructure N/A MIS Technology Customer Support completed a staffing restructure in 2011. A Programmer Analyst position was eliminated and a Technology Systems Manager was added. This covers the cost differential between positions. 603 - DATA AND COMMUNICATIONS FUND High Performing Government Data and Communication Fund Reserves 61 Revision Title: Fund: Contact: Chris Banister Result Area: Related Offer #: New Total Amount: $550,000 Funding Source #1: Funding Amount #1: $550,000 FTE Requested: Description: 2012 BUDGET REVISION REQUEST Microsoft Office 2010 Software Upgrade N/A 603 - DATA AND COMMUNICATIONS FUND High Performing Government Data and Communications Fund Reserves The ongoing use of an older version of the software suite Microsoft Office 2003 has continued to become more of an issue throughout the organization, as staff has experienced various compatibility challenges with other applications and in everyday document collaboration with external agencies and businesses. The timing of this request is based upon the need for MIS to eliminate these compatibility issues, support the organization with a more current, functional tool set, and to allow for a well planned implementation prior to the scheduled obsolescence of the product. Microsoft Office is a primary tool of daily use for a large number of City staff. An upgrade to this product brings current and effective software tools to a significant percentage of staff, supporting and equipping them with technology to work efficiently. Also, the scheduled e-mail migration will implement Exchange version 2010 this Fall, which will allow for further integrated functionality with the requested migration to the Office 2010 platform next year. While providing appropriate technology to the organization is a value, it is also necessary to note that the Office 2003 suite will move to a non-supported status in early 2014. At that point, the City's technology infrastructure would be in a more vulnerable state, as Microsoft would no longer support the product with ongoing critical security patches. As such, it is recommended that the City be fully transitioned prior to that time to avoid loss of support for such a broadly used application. In order to provide the organization the best opportunity to plan and execute this upgrade prior to the loss of support, it is recommended that we begin this transition in 2012. This would be done to allow for appropriate planning and coordination within the organization, as well as the ability to execute the upgrade over a longer period of time. Lengthening the upgrade timeline effectively spreads out the upgrade effort, avoiding extra costs associated with supplemental resources or consulting services that are often used to execute projects more quickly. It would also allow for a more gradual introduction of the new software to staff, which would lessen the disruption of daily services and ease the learning curve. MIS had originally delayed submitting an offer to accomplish this replacement until 2013 due to funding uncertainty in the 2011-2012 BFO cycle. For the reasons stated above, funding for this upgrade is being requested to be included in the 2012 budget. The funding requested is planned to cover all software licenses, as well as education for staff on the use and functionality available with the new product. 62 1 x year December 31 .01 12