HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/09/2012 - PRESENTATION OF THE CITY MANAGER'S 2013-2014 RECOMDATE: October 9, 2012
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 2013-2014 Recommended Budget.
EXECUTIVE SUMMARY
The City Manager’s 2013-2014 Recommended Budget was delivered to City Council and the City
Clerk on August 30, 2012, pursuant to provisions of Article V, Section 2 of the City Charter. In
September and October City Council had a series of work sessions and two Public Hearings on the
Budget to gather input from the community.
Staff believes City Council will have many challenging decisions ahead with the 2013-2014 Budget
as it is finalized. The community has had more opportunity this year than in the past to provide
input on the specific Offers (budget requests) under consideration. That will continue in the next
couple months with the aforementioned Public Hearings and an online tool to gather citizen input.
For the October 9, 2012 Work Session, staff will present summary information previously requested
by Council based on the completed reviews of all seven Result Areas:
• Economic Health
• Environmental Health
• Safe Community
• Transportation
• Community and Neighborhood Livability
• Culture and Recreation
• High Performing Government
BACKGROUND / DISCUSSION
1. What changes to funded and unfunded Offers might Council want?
2. Are there specific funding sources Council prefers to fund some of those Offers?
BACKGROUND / DISCUSSION
The 2013 and 2014 Budget process began following the City Council Workshop in February 2012.
Since then, significant progress has been made by staff, which has led to the City Manager’s
Recommended Budget. This was the fifth budget cycle where the City used process called
Budgeting for Outcomes (BFO) which included the following major steps:
October 9, 2012 Page 2
• City Council reviewed process improvements to be implemented as part of the upcoming
budget cycle and defined the key Result Areas (Outcomes)
• Result Teams comprised of City staff and citizens reviewed these definitions and then
developed Result Maps and Request for Results documents which were reviewed with City
Council during the April 10, 2012 Council Work Session
• Over 500 Offers (budget requests) were submitted and categorized in seven key Result Areas
• Solicited community feedback included input in two public forums from citizens, and boards
and commissions on the submitted Offers and an online budget funding tool
• Results Teams reviewed offers and performance indicators, negotiated with Sellers and
submitted their prioritized list of funding recommendations to the City Manager and Budget
Lead Team (Executive Team)
• City Manager and the Budget Lead Team reviewed Result Team recommendations and made
adjustments based on the overall budget situation
• The City Manager finalized the Recommended Budget and submitted it to City Council on
August 30, 2012
City Council Budget Meetings
The City Council has completed a series of work sessions in September that discussed the proposed
2013-2014 Budget. Each work session included staff presentations regarding specific Result Areas,
followed by an opportunity for questions and discussion. This final work session has been reserved
for City Council discussion regarding overall priorities, policy issues and funding allocations
between Result Areas.
Key dates for City Council discussions and public hearings are as follows:
Meeting Date Topic
COMPLETED - September 11, 2012 Work
Session
Presentations, Questions and Discussion:
1. Economic Health
2. Environmental Health
3. Safe Community
COMPLETED - September 18, 2012
Regular Meeting Budget Public Hearing
COMPLETED - September 18, 2012 Work
Session
Presentations, Questions and Discussion:
1. Transportation
COMPLETED: September 25, 2012 Work
Session
Presentations, Questions and Discussion:
1. Community & Neighborhood Livability
2. Culture and Recreation
3. High Performing Government
COMPLETED - October 2, 2012 Regular
Meeting Budget Public Hearing
October 9, 2012 Page 3
Meeting Date Topic
October 9, 2012 Work Session General Discussion – Final Direction
October 16, 2012 City Council Meeting First Reading of Appropriations Ordinance
November 20, 2012 City Council Meeting Second Reading of Appropriations Ordinance
ATTACHMENTS
1. Powerpoint presentation
ATTACHMENT 1
1
1
Agenda Item #3
City Manager’s 2013-2014
Recommended Budget
October 9, 2012
Work Session
2
This budget moves the City from a mindset
of austerity to investment
ATTACHMENT 1
2
3
Keep Fort Collins Great has allowed us to
strengthen our core services and improve
customer service
4
With increased stability, we can now focus on
our community’s future, new possibilities, and
our obligation to the next generation
ATTACHMENT 1
3
5
Even with these smart investments, we still
have long-term needs and challenges, namely
the expiration of major funding sources
6
Summary of Available Reserves
2011
Total Comments
General Fund $40.2 $0.0
Sales & Use Tax Fund 7.4 6.5 Proposed to move to General Fund in Clean‐up
Keep Fort Collins Great Fund 6.3 0.5 3.1 ‐ Used in Budget, 0.5 ‐ Police KFCG Reserve
Transportation 13.2 8.0 Harmony Road
Capital Proj & Other Govt Funds 61.3 0.0
Utilities Funds * 154.2 0.0 All assiged to capital per policy but available
Internal Services/Other Funds 11.9 0.0 In the budget: 0.5 of IT, 3.3 of Benefits, 1.2 of Self Insurance
$294.5 $15.0
* Excludes Non‐Liquid Capital
Available
(after uses in
the budget)
$6.5 Available for One-Time Use….
City Manager Recommends $5.7M for North College &
$.7 for the Integrated Recycling Facility
ATTACHMENT 1
4
7
Building Community Choices (BCC)
Community Enhancements
• All projects committed to have been completed
• Excess revenues of $4.2M may be used for capital projects
approved by City Council
• North College Improvements – Phase III: $1.9M
• Natural Resources Resource Center Overpass: 1.2
• Integrated Recycling Facility:
• Downtown Poudre River recreation & habitat 0.3
• Community Gateways: 0.1
Total Used within Recommended Budget $3.5M
BCC Funds Available $0.7M
Residual BCC Funds Support Additional Community Initiatives
8
Building On Basics (BOB)
Final projects included in the Building on Basics tax initiative are
included in the 2013-2014 Recommended Budget.
• Senior Center Expansion: $4.7M
• Timberline Road Improvements (Drake to Prospect): 3.5
• Intersection Improvements and Traffic Signals: 0.8
• Pedestrian Plan & Disability Access Improvements: 0.6
• Bicycle Plan Implementation: 0.3
Total Building on Basics Expenditures $ 9.9M
• Recreation Fund Contribution to the Senior Center 0.5
Total $10.4M
On Track to Deliver All Projects Defined in the Ballot Initiative
ATTACHMENT 1
5
9
Keep Fort Collins Great (KFCG) Summary*
• Street Maintenance and Repair – About $7.0M per year
• Included in the budget for arterial, collector and residential streets
• Other Transportation Needs - $3.6M per year
• Includes funding for the City Bridge Program, Fort Collins Bicycling Program, median & alley
maintenance, Safe Routes to School, and capital equipment
• Police Services - $3.6M per year
• Funds all previous police staffing hired with KFCG money, as well as additional staffing for a
crime analyst, property & evidence tech, investigative services specialist, and Campus West
District 6 staffing
• Poudre Fire Authority (PFA) - $2.3M per year
• Provides funding for PFA Emergency Operations & electronic data management
• Parks Maintenance and Recreation Services - $2.3M per year
• Funds a wide array of community services including Memorial Parks, Mulberry Pool, recreation
scholarships, neighborhood parks, & Senior Center to name a few
• Other Community Priorities - $2.3M per year
• Includes funding for number of environmental initiatives like the Poudre River, climate
adaptation planning, Road to Zero waste and green purchasing, as well as various investments
in economic health
* Dollar values represent ongoing revenues; excludes use of KFCG reserves
10
Outcome Offer # and Title 2013 2014 Funding Source
Econ 6.8 KFCG Support Art Incubator of the Rockies $50 $60 KFCG Other Community
Enviro 9.7 Environmental Services Operational Enhancements 48 48 General Fund
Enviro 104.3 KFCG ENHANCEMENT: ClimateWise 81 87 KFCG Other Community
Safe 116.1 Replace Electric Design Software 750 0 L&P Reserves
Safe 173.2 KFCG: Park Rangers for City Parks and Trails 180 142 KFCG Parks & Rec
Trans 106.5 KFCG: FC Walks, City Walking Program 40 91 KFCG Other Trans
Trans 107.4 KFCG: Great Green Street / Reshaping Streets Implementation 450 0 KFCG Other Trans
CNL 80.9 Increased Multicultural Support 15 15 General Fund
CNL 236.1 Community Garden Outreach Program 113 54 General Fund
Culture 49.5 ENHANCEMENT: Senior Center Expansion 1,000 0 BCC
Culture 50.5 Poudre School District After-hours Program 67 67 General Fund
Culture 103.1 The Great Lawn 830 0 BCC
HPG 33.4 KFCG: Enterprise Call Distribution Center 50 7 KFCG Other Community
($ in thousands)
Unfunded Offers with Council Interest
• 4 Large one-time offers $3,030
• 4 GF offers $ 243 $ 184
• 3 KFCG Other Community offers $ 181 $ 154
• 1 KFCG Other Transp offers $ 40 $ 91
• 1KFCG Parks & Rec offer $ 180 $ 142
ATTACHMENT 1
6
11
• Mulberry Bridge $550k - $750k
• I25 / 392 Signage $100k
• Airport $ TBD
• COP General Fund Payments $403k & $391k
• Water & Air Quality Mulberry Pool $450k
• 2012 Election Costs $300k
• New Utilities Building $ TBD
Future Funding Issues Not Included
Risks & Unanticipated Expenditures may Require the
Use of Revenue Opportunities & Reserves
12
• Unfund Offers Recommended for Funding
• Scalability of Offers - modify funding
• CDOT Bike Grant - $30k 2013, $75K 2014
• KFCG Other Community Priorities - $200k 2014
• Additional Sales & Use Revenue 2012 - $300K ongoing GF
• Increase Sales Tax Revenue Forecast – ongoing
– $136K to General Fund for each .25%
• Reserves – one time
Additional Funding Opportunities
ATTACHMENT 1
7
13
Questions?
14
Back up Slides
ATTACHMENT 1
8
15
Total 2013 – 2014 Budget
($ millions) Adopted Amended Budget Budget
2012 2012 2013 2014
Total City Appropriations $455.6 $500.3 $483.1 $490.4
% Changed (from adopted 2012 / prior year) 6.0% 1.5%
Net City Budget $360.9 $398.8 $385.7 $392.4
% Changed (from adopted 2012 / prior year) 6.9% 1.7%
Explanation of Change - 2013 from adopted 2012:
• Capital Projects 7.3
• Purchased Power from PRPA 5.1
• Use of KFCG Reserves 1.8
• Economic Partnerships 2.1
• Compensation 2.2
• FTE Increase 2.8
• Other Enhancements Purchased 3.5
Increase in Budget Driven Primarily by
Capital Projects and Purchased Power
16
Fund Balance Summary
Healthy Fund Balances….All Exceed Policy Minimums
Fund Balance Fund Balance Fund Balance
FUND 12/31/12 12/31/13 12/31/14
General Fund $40.5 $41.2 $41.2
Keep Fort Collins Great Fund 6.3 4.5 4.1
Transportation Fund 10.1 9.5 9.2
Capital Projects Fund 4.7 2.0 0.5
Other Governmental Funds 41.8 38.4 38.2
Light & Power Fund * 172.6 177.4 181.5
Water Fund * 255.6 258.5 261.3
Wastewater Fund * 141.1 143.1 144.5
Stormwater Fund * 97.3 104.4 111.4
Internal Service Funds 23.6 20.5 17.7
Other Funds 34.5 34.1 32.6
TOTAL $828.1 $833.6 $842.2
Note:
1) Dollars are shown in Millions.
2) Fund balance is composed of unrestricted, restricted, and non-liquid assets.
The fund balance of funds with an asterisk include non-liquid capital assets such
as land and buildings.
ATTACHMENT 1
9
17
Average Return Unfunded Liability Supplemental Cash
• 4.8% $27.8M $68.7M
• 5.8% $20.2M $57.6M
• 6.8% (Baseline) $13.8M $33.6M - $1.1M yr 2013-42
• 7.8% $ 8.5M $16.6M
• 8.8% $ 3.9M $ 9.4M
The City owns the Investment Return Risk for the Plan
GERP Unfunded Liability &
Investment Yield Sensitivity
18
FTE Enhancement Summary
• Development Review – 4.5 FTE
• This FTE is funded by revenue associated with increased development review
activity and is needed to ensure a high level of customer service
• Police Services funded via KFCG – 7.0 FTE
• Per the commitment to voters, the KFCG Police funding is hiring staff to contribute
to a safe community. This includes staffing for Campus West District 6.
• Information Technology (IT) Support – 6.0 FTE
• Significant projects with critical IT infrastructure are underway (AMI and
MAX/BRT), as well as needed investment in security and data warehousing for
initiatives like performance measurement reporting
• Other Self Funded Positions – 2.0 FTE
• A Sales Tax Auditor and Risk Management Technician is recommended and will
be funded through additional sales tax revenue & worker’s compensation claims
reduction
• Other Staffing – 11.4 FTE
• Includes increases for Historic Preservation, Adaptive Recreation, Green
Purchasing, Grant Compliance, Sustainability Services, Legal Services and HR
ATTACHMENT 1
10
19
Overtime Tracking
20
Historical Overtime by Service Area