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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/10/2012 - NATURAL AREAS DEPARTMENT UPDATE: OVERVIEW, BUDGETDATE: July 10, 2012 STAFF: John Stokes Pre-taped staff presentation: available at fcgov.com/clerk/agendas.php WORK SESSION ITEM FORT COLLINS CITY COUNCIL SUBJECT FOR DISCUSSION Natural Areas Department Update: Overview, Budget, Land Conservation. EXECUTIVE SUMMARY The Natural Areas Department is celebrating its 20th birthday this year. There have been many remarkable achievements including land conservation and stewardship, the provision of outstanding recreation enhancements, and excellent outreach programs. The Department is in good financial condition, but faces a significant long-term challenge due to the potential 2018 expiration of Larimer County’s Help Preserve Open Space quarter-cent sales tax. The County resource provides about one-third of the total revenues to the Department and is vital to its operations. This agenda item summary provides an overview of the long-term budget and associated challenges. It also provides a brief overview of the Department’s activities as well as a description of the Department’s approach to land conservation. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council have any questions or concerns about the Natural Areas Department operations? 2. Does Council have any questions or concerns about the long-term budget of the Natural Areas Department? 3. Does Council have any questions or concerns with the land conservation approach of the Natural Areas Department? BACKGROUND / DISCUSSION In 1974, City Council adopted an open space plan that was implemented by the City’s Parks and Recreation Department. The Natural Areas Program, now the Natural Areas Department, was established in 1992. Early acquisitions, including, for example, portions of Maxwell, Pineridge, Reservoir Ridge and Red Fox Meadow, were enabled by tax initiatives in 1973 and 1984. In 1992, 1997, and 2002, voters approved a series of sales tax initiatives to support natural areas. The 2002 quarter-cent sales tax, known as Open Space Yes! (OSY!) provides the bulk of current revenues to the Natural Areas Department (NAD). In addition to these revenues, the NAD receives revenues from the County’s quarter-cent sales tax, Help Preserve Open Space (HPOS). July 10, 2012 Page 2 The mission of the NAD is to conserve and enhance lands with existing or potential natural area values, lands that serve as community separators, agricultural lands, and lands with scenic values. Conservation of natural habitats and features is the highest priority while providing education and recreation for the Fort Collins community. The citywide public opinion survey has shown increasing satisfaction with Natural Areas. In 2001, 76% of citizens rated Natural Areas good or very good. In 2012, 94% of citizens rated Natural Areas good or very good. Since its inception, the NAD has conserved nearly 42,000 acres. The NAD owns and manages 35,000 acres, and 33,000 acres are open to the public. Additional lands are protected with conservation easements (5,548 acres). The Department also leases 1,128 acres. The NAD owns a small water rights portfolio. The NAD operates and facilitates stewardship, safety, and outreach programs. These include Ranger services, education and outreach, public improvements (such as trails), resource management, and, several other operational functions. The seven-person Ranger program provides daily coverage throughout the Natural Areas system. Education and outreach staff, along with numerous volunteers, provide programs to over 11,000 people a year. The public improvements program helps build and maintain over 100 miles of paved and natural surface trails; many of these trails connect to the Citywide paved trail system. Resource and land management staff conduct habitat management, restoration, and rehabilitation projects; they also monitor conservation easements, manage leases, and administer right-of-way applications. To get this work done, there are 29.5 permanent full-time staff. Seasonal staff is used extensively, and there are an equivalent of 23 full-time hourly employees. July 10, 2012 Page 3 Long-Term Budget The NAD maintains a long-term budget projection model, which projects revenues and costs through 2021. The model utilizes two different revenue projections. One projection anticipates the renewal of the County’s sales tax which is set to expire in 2018. The second projection anticipates the expiration of the County’s sales tax and builds an operating cushion for the NAD to operate through 2021. This budget was created based on 2002 Council direction. The OSY! tax is set to expire in 2030. OSY! revenues are restricted; at least 80% must be spent on land conservation or restoration. Thus, County revenues are critical to the operation of the NAD because they can be spent on any relevant cost. Staff keeps track of the 80% by characterizing it as “green” money. All other expenses are characterized as “blue” money. Since the inception of OSY! the NAD has spent more than 80% of OSY! funds on conservation and restoration. This will allow the Department to spend less than 80% on conservation and restoration (and more on operations) from 2019 to 2021 (as required by Council) in the event HPOS expires in 2018. Under current projections, the NAD will be able to pay for its current operations for three years beyond 2018 if HPOS is not renewed. If HPOS has not been renewed by that time, the Department will not have sufficient funding to operate unless the terms of OSY! are changed to remove the 80% restriction. The following is a bulleted synopsis of each cumulative 2021 projection: HELP PRESERVE OPEN SPACE (HPOS) EXPIRES IN 2018 • Assumption: HPOS revenues end in 2018 • Assumption: Revenues increase at 2% per year • Assumption: Expenses inflate at 2% per year • Staff frozen at 2013 level • Staff and O&M funded through 2021 • Capital Replacement Fund capped at $1.5 million • $0 Capital Improvement Funds budgeted after 2014 • Land Acquisition Funding through 2021 = $21 million • Stop the $350,000 annual contribution to Parks for trails after 2014 • $1,250,000 in “blue” funds would be available for costs associated with newly acquired land, including capital improvements. July 10, 2012 Page 4 HPOS EXTENDED • Assumption: HPOS Revenues extended past 2018 • Assumption: Revenues increase at 2% per year • Assumption: Expenses inflate at 2% per year • Staffing frozen at 2013 level • Staff and O&M funded through 2021 • Capital Replacement Fund capped at $1.5 million • $0 Capital Funds budgeted after 2014 • Land Acquisition Funding through 2021 = $20 million* • Continue the $350,000 annual contribution to Parks • Available “blue” funds for capital, staff, or land conservation, $8.5 million *Note: The funds available for land conservation would be reduced from the previous model by $1M because certain restoration activities would be continued if HPOS were to be extended. As the NAD has added land inventory over the last ten years, budgets have transitioned from approximately 75% land conservation/restoration and 25% stewardship to approximately 35% land conservation/restoration and 65% stewardship. Even with this shift, overall “green” spending will exceed the 80% requirement and provide a cushion thru 2021, should HPOS not be renewed. Staff anticipates the 65/35 split to continue into the foreseeable future. A synopsis of budgeted 2012 expenditures is provided below: July 10, 2012 Page 5 Land Conservation Plans The NAD’s land conservation efforts are guided by the Council-adopted “Land Conservation and Stewardship Master Plan” (2004). The Plan identified high-priority areas for conservation that were characterized as local (in and around the City); community separators (such as the area between Fort Collins and Loveland); and, regional (for example, Bobcat Ridge). The Plan called for an equal allocation of spending among the three categories. Since 2004, expenditures have been weighted to the regional category due to the acquisition of Bobcat Ridge and Soapstone Prairie. (Since 1992, however, overall land conservation expenditures have been distributed equally to each category.) Current land conservation efforts are directed to the Wellington Community Separator, the Poudre River corridor, and the Bellvue area. Staff believes that conservation easements are likely to be used more than they have in the past, especially in the Wellington Community Separator. Conservation easements involve the sale of development rights to the easement holder (in this case the City) never to be exercised. Typically the grantor conveys a percentage of the development rights to the grantee. The grantor also has to maintain the land in good condition. The underlying fee property remains with the grantor and can be farmed, managed for wildlife, and enjoyed for other uses consistent with the conservation purposes of the easement. Conservation easements are an effective tool for the City because often the core conservation objectives of the City are achieved but at a lower cost. For example, a conservation easement can be acquired for approximately 60% of the full market value and the land continues to be managed by the private sector and those costs do not accrue to the public. The tool is particular useful for agricultural lands where the City does not want to own the land, but wishes to maintain it as a community buffer or separator and in production. As noted in the 2021 budget projection (that assumes the County tax will expire) the NAD will have modest funding to build public improvements or to provide additional staffing. In the case of conservation easements, that limitation is not a problem. In the case of full fee acquisitions, it may pose a challenge with respect to the Department’s ability to build public improvements such as trails, bathrooms, fencing, etc. It should be noted, however, that the Department has been successful at raising external funds to match its resources; a case in point is the recent GOCO grant for Poudre River trail construction. In any event, it is clear that renewal of the County’s quarter-cent sales tax is critical to the future of the City’s Natural Areas Department and its continued ability to acquire, own, and manage land. ATTACHMENTS 1. Powerpoint presentation 1 Natural Areas Update City Council July 10, 2012 2 Overview • Natural Areas Department activities • Long-term budget • Land conservation plans ATTACHMENT 1 3 General Direction and Questions • Does Council have any questions or concerns about the Natural Areas Department operations? • Does Council have any questions or concerns about the long-term budget of the Natural Areas Department? • Does Council have any questions or concerns with the land conservation approach of the Natural Areas Department? 4 Background • Natural areas activities date back to the early 1970’s • Tax initiatives to support natural area activities were passed in 1973, 1984, 1992, 1997, and 2002 • County initiatives passed in 1995 and 1999 5 Mission The mission of the NAD is to conserve and enhance lands with existing or potential natural area values, lands that serve as community separators, agricultural lands, and lands with scenic values. Conservation of natural habitats and features is the highest priority while providing education and recreation for the Fort Collins community. 6 Open Space, Yes! • City’s quarter-cent • Passed in 2002, expires in 2030 • 80/20 restriction • Green/Blue dollars 7 Help Preserve Open Space • Larimer County’s quarter-cent • Revenues are shared with Fort Collins and other local governments • Expires in 2018 • Provides a substantial percentage of Natural Areas Department O&M 8 Natural Areas Department 2012 Budgeted Revenues $8,677,591 $3,005,939 $124,652 $60,000 $5,487,000 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Open Space Yes! 1996 HPOS Larimer County 1/4 Cent Sales Tax Miscellaneous Revenue Earnings on Investments 9 Land Conservation • 42,000 acres • Own and manage 35,000 acres • 33,000 open to the public • 5,548 acres in conservation easement • 1,128 acres leased • Small water rights portfolio 10 Director Manager Public Improvements & Facility Operations Community Outreach Resource Management Crew Chief Natural Areas Technicians Education/Volunteer Coordinators Rangers Hourly/seasonal Field crew Financial Coordinator Environmental Planners Land Management Crew Chief Natural Areas Technicians Seasonal Educators Hourly/seasonal Field crew Environmental Planner Natural Areas Technician Land Conservation 11 1) Program Management 2) Land Management 3) Resource Management 4) Visitor Services - Rangers 5) Public Improvements 6) Facilities operations 7) Education, Volunteer Coordination, and Outreach Programs 12 Land Management 13 Planting Cover Crops & Native Seed Restoring Ecological Processes Earthwork & Land Preparation Erosion Control & Hydroseeding Resource Management 14 15 16 17 Visitor Services 18 Public Improvements 19 20 Facilities: Primrose Studio 21 Education/Outreach/Volunteers 22 23 Long-Long -Term Budget • Two models thru 2021 • HPOS expires • HPOS is extended 24 Long-Long -Term Budget • HPOS expires and the City maintains enough funding to operate the Natural Areas Dept. thru 2021 • NAD currently operating under this model, directed to do so by Council in 2002 • Cumulative spending “green” spending exceeds 80% requirement • Provides operational cushion thru 2021 • Includes a $1.5 million capital replacement fund 25 2021 w/o HPOS renewal • $21 million available for land conservation • Stop a $350,000 a year contribution to Parks for the trail system in 2015 • No new staff • $1.25 million available for all capital improvements or other needs associated with new acquisitions or previously acquired lands 26 2021 with HPOS renewal • $20 million available for land conservation • Continue $350,000 to Parks for trails • No new staff • $8.5 million for all capital improvements or other needs associated with new acquisitions or previously acquired lands 27 Natural Areas Department 2012 Budgeted Expenditures $8,879,764 $1,921,050 $1,432,500 $1,385,881 $645,150 $385,600 $3,109,583 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 Personnel O&M Land Conservation Land Conservation Debt Capital Replacement Capital & Trails 28 Land Conservation 29 Current Focus • Wellington Separator • Bellvue area • Poudre River • Partnerships with Parks and Utilities 30 Conservation Tools Conservation Easement • Own property rights, not land • Lower costs • No or limited access Fee Simple Purchase • Own and Manage the land • Higher costs • Public access / Recreation 31 The Future • Anticipate using conservation easements where appropriate, especially in Wellington separator • Will continue to acquire fee land • Will seek financial partners • Will keep a close eye on 2018 32 General Direction and Questions • Does Council have any questions or concerns about the Natural Areas Department operations? • Does Council have any questions or concerns about the long-term budget of the Natural Areas Department? • Does Council have any questions or concerns with the land conservation approach of the Natural Areas Department?