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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 09/11/2012 - PRESENTATION OF THE CITY MANAGER'S 2013-2014 RECOMDATE: September 11, 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 the City Council will have a series of work sessions and two public hearings on the Budget to gather input from the community. Staff believes City Council will have many challenging decisions ahead with the 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. A detailed public input schedule is listed below. For the September 11, 2012 Work Session, staff will present a Budget overview and a summary overview of three Result Areas: • Economic Health • Environmental Health • Safe Community GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What clarifying questions does the City Council have regarding the Budget overall? 2. What clarifying questions does City Council have on three Result Areas being presented? 3. What follow-up items are there on Budget issues related to those three Result Areas? 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: September 11, 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 including input from citizens, boards and commissions on the submitted Offers in two public forums 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 a series of work sessions scheduled in September and October to discuss the proposed 2013-2014 Budget. Each work session will include staff presentations regarding specific Result Areas, followed by an opportunity for questions and discussion. The final work session has been reserved for City Council discussion regarding overall priorities, policy issues and funding allocations between Result Areas. September 11, 2012 Page 3 Key dates for City Council discussions and public hearings are as follows: Meeting Date Topic September 11, 2012 Work Session Presentations, Questions and Discussion: 1. Economic Health 2. Environmental Health 3. Safe Community September 18, 2012 Regular Meeting Budget Public Hearing September 25, 2012 Work Session Presentation, Questions and Discussion: 1. Community & Neighborhood Livability 2. Culture and Recreation 3. High Performing Government 4. Transportation October 2, 2012 Regular Meeting Budget Public Hearing 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 1 1 Agenda Item # 2 City Manager’s 2013-2014 Recommended Budget September 11, 2012 Work Session 2 Budget Overview • Outstanding Credit Rating • Healthy Balance Sheet – Debt & Fund Balances • Forecasting Modest Revenue Growth • Expenditure Containment • Full Utilization of 2B – Keep Fort Collins Great • Capital Expenditures • City Bridge Program • N. College – Conifer to Willox shovel ready • Senior Center Expansion • Integrated Recycling Facility 2 3 Changes to the 2013-14 Budget Process • Increased Transparency • All Offer details are online (about 3,000 pages) • www.fcgov.com/budget • Citizen Involvement • Citizens included on Result Teams • Public Open Houses and online tools for citizens to give input on what Offers should and should not be funded • Horizontal Offer Prioritization across all Outcomes • Evaluation of How to Reduce the Size of Offers over $4M • Split into Smaller Offers • Added Narrative Explaining the Component Pieces • Significantly increased use of performance measures • Key metrics will be reported to the community • Will be used as a management tool to monitor progress 4 Performance Metrics/Reporting Linkage Note: Size of the bubble represent the number of metrics Strategic Citizen Communication Operational Management Tools Annual Quarterly Monthly Executive Management Tools Community Scorecard • Annual Report on Web • 70 Metrics over 30 pages • Citizen Survey driven Council Dashboard • Quarterly Report on Web • 35 Metrics on 2 pages • Data driven BFO Performance Report • Monthly Report • 100-125 Metrics • Targets & Variance Operational Metrics • Currently within each Service Area • 2013 -14 Goal - Weed and Focus Time / Frequency Bi-Annual Objectives Citizen Survey Different Objectives Require Different Metrics and Reports…. Goal is to Align all Metrics Across all Reporting Documents 3 5 Price of Government 6.6 6.3 6.3 6.2 6.2 6.5 6.1 5.9 5.4 5.2 5.1 5.5 5.5 5.4 5.3 - 1 2 3 4 5 6 7 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 cents Price of Government for the City of Fort Collins (cents of every dollar earned going to pay for City services, including utilities and golf) Personal Income is estimated for 2011-14; City Revenue is estimated for 2012-14 Continued Reduction in the Price of Government 6 Sales Tax Rate Comparison Fort Collin’s Sales Tax Rate of 7.35% is at the Low End of Front Range Cities 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Total Sales Tax Rate Comparison 4 7 Electric Rate Comparison Black Hills Energy San Luis Valley Rea Se Colorado Pa Tri-County Sangre De Cristo San Isabel Gunnison County Ea San Miguel Pa Grand Valley Rpl Empire Ea Mountain Parks Ei Delta-Montrose Ea United Power La Plata Poudre Valley Ea Intermountain Rea Colorado Springs Fountain Holy Cross Ea Yampa Valley Ea Xcel Energy FORT COLLINS Summer 2012 FORT COLLINS Non-Summer 2012 Loveland Longmont Moon Lake $- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 Black Hills Energy San Luis Valley Rea Se Colorado Pa Tri-County Sangre De Cristo San Isabel Gunnison County Ea San Miguel Pa Grand Valley Rpl Empire Ea Mountain Parks Ei Delta-Montrose Ea United Power La Plata Poudre Valley Ea Intermountain Rea Colorado Springs Fountain Holy Cross Ea Yampa Valley Ea Xcel Energy Fort Collins Summer 2012 Fort Collins Non-Summer 2012 Loveland Longmont Moon Lake Customer cost per month Residential Electric Cost Comparison - 700 kWh per Month Fort Collin’s Electric Utility Rates are at the Low End of Front Range Cities 8 Revenue Summary Moderate Growth Forecast for City Revenues Governmental Fund - Generally used to account for tax-supported activities. Examples include the General Fund, Special Revenue Funds (like the Recreation Fund and the Transportation Fund), Debt Service Funds and the Capital Projects Fund. Enterprise Fund - used to account for operations that are financed and operated in a manner similar to private businesses. Examples include the Golf Fund and the Utility Funds. 5 9 Revenue Summary Moderate Growth in Sales & Use Tax…. Keep Fort Collins Great Provided a Big Boost to City Services $75.6 $78.4 $75.9 $70.5 $74.7 $77.8 $81.3 $82.1 $83.9 $19.8 $20.6 $20.9 $21.3 $2.0 $4.0 $4.4 $ 0 $ 20 $ 40 $ 60 $ 80 $ 100 $ 120 2006 2007 2008 2009 2010 2011 2012 F2013 B2014 B Millions Sales & Use Tax KFCG Economic Health Partnerships Sales & Use Tax Revenue $ 97.6 $ 104.0 $ 107.0 $ 109.6 10 Building Community Choices (BCC) Community Enhancements • All projects committed to have been completed • Excess revenues 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: 0.7 • Downtown Poudre River recreation & habitat 0.3 • Community Gateways: 0.1 Total $4.2M Residual BCC Funds Support Additional Community Initiatives 6 11 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 $10.4M On Track to Deliver All Projects Defined in the Ballot Initiative 12 Total 2013 – 2014 Budget ($ 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 7 13 Total Allocation by Results Area - 2013 * In addition to the seven result areas, the total allocation by results also includes $49.4M in 2013 and $48.6M in 2014 for items like transfers between funds, debt service, payments to retirees and insurance costs 1 Water, Wastewater, Natural Areas, Environmental Services 2 Police, Fire, Electric, Stormwater 14 2012 Council Budget Meetings September 11th Work Session • Economic Health • Environmental Health • Safe Community September 25th Work Session • Community & Neighborhood Livability • Culture and Recreation • High Performing Government • Transportation September 18th Council Meeting • Budget Public Hearing October 2nd Council Meeting • Budget Public Hearing October 9th Work Session • General Discussion – Final Direction October 16th Council Meeting • First Reading November 20th Council Meeting • Second Reading 8 15 Economic Health Highlights “Fort Collins has a healthy, sustainable economy, reflecting community values” 16 Economic Health Highlights 9 17 Economic Health – Key Purchases • Economic Health & Urban Renewal Authority leadership & operations • District One and Downtown Crime Prevention • Building, Engineering, & Planning and Zoning Services • Parking Services • Economic clusters & RMI2 support • Historic Preservation • Convention and Visitor Services • Fort Collins / Loveland Airport • Downtown Holiday Lighting 18 Economic Health – Key Enhancements Purchased • Lincoln Triangle Strategic Plan & Lincoln Boulevard Plan • Economic Health Partnerships • Midtown Corridor College Avenue Transportation Study • New positions: • Development Review & Inspectors – (4.5 FTE) • Historic Preservation Planners – (1.2 FTE) • Parking Systems Specialist – (0.5 FTE) • North College Storefront Improvement Program 10 19 Economic Health – Services Not Purchased • Increased small and local business support • Old Town Square ice rink • Parking Plan implementation (Neighborhood Permit Program funded in Community & Neighborhood Livability • Downtown Plan update • West Elizabeth Enhanced Travel Corridor Master Plan • Railroad Quiet Zone implementation 20 Questions? 11 21 Environmental Health Highlights “Fort Collins promotes, protects and enhances a healthy and sustainable environment” 22 Environmental Health Highlights 12 23 Environmental Health – Key Purchases • Water and Wastewater Utilities including capital projects • Renewable energy program and energy conservation programs • Natural Areas programs including land conservation and management, education, and resource management • FortZED • ClimateWise Program • Household Hazardous Waste Community Drop-Off Events 24 Environmental Health – Key Enhancements Purchased • Fort Collins Solar Program, Small-Scale Solar Incentives program and Community Solar Garden • Integrated Recycling Facility and other recycling programs • Climate Adaptation Planning • Green Purchasing • Oil & Gas Liaison (contract/consultant) • Poudre River restoration and rehabilitation: • Habitat and storm water improvements • Ecosystem response model 13 25 Environmental Health – Services Not Purchased • Expanded Carbon Accounting Services & Support • Increased Water Conservation (Xeriscape) programs • Utilities Service Center building additions and remodel, energy efficiency improvements, and central heating/cooling plant • Big Belly Recycling expansion 26 Questions? 14 27 Safe Community Highlights “Fort Collins provides a safe place to live, work, learn, and play” 28 Safe Community Highlights 15 29 Safe Community– Key Purchases • Police Patrol, Investigations, Communications, Administration and overall operations • Poudre Fire Authority services and programs • Stormwater Utility operations and capital projects • Electric Utility purchased power and operations • Natural Areas Ranger Program • Graffiti Abatement • Office of Emergency Management 30 Safe Community– Key Enhancements Purchased • Office of Emergency Management hourly staff support • New Positions **: • Crime Analyst (1FTE) • Property & Evidence Technician (1 FTE) • Investigative Services Tech Specialist (1FTE) • Utilities Telecom Systems Administrator (1FTE) • PFA Electronic Data Management • Emergency Medical Services (EMS) IPhone App ** Police Campus West District Staffing (4 FTE) funded in Community & Neighborhood Livability 16 31 Safe Community– Services Not Purchased • Restore attrition firefighter position • Utilities Service Center Emergency Operations Improvements • PFA Accreditation Manager • PFA Deputy Fire Marshal • Police Services Front Desk Security & Training Clerk • Park Rangers for City Parks & Trails 32 Questions? 17 33 Back-Up Slides 34 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 40,508,533 41,189,546 41,165,192 Keep Fort Collins Great Fund 6,311,688 4,526,718 4,078,054 Transportation Fund 10,048,522 9,478,659 9,238,510 Capital Projects Fund 4,704,845 2,041,845 529,845 Other Governmental Funds 41,756,757 38,356,123 38,168,651 Light & Power Fund * 172,592,434 177,355,431 181,522,734 Water Fund * 255,604,963 258,495,225 261,251,480 Wastewater Fund * 141,134,953 143,148,220 144,485,600 Stormwater Fund * 97,303,432 104,357,354 111,418,827 Internal Service Funds 23,623,012 20,513,623 17,749,844 Other Funds 34,525,346 34,142,680 32,631,775 TOTAL 828,114,485 833,605,424 842,240,512 Note: 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. 18 35 Use of Reserves Limited Use of Reserves Funding New Programs & KFCG Initiatives Fund 2013 2014 General Fund - from dedicated source 438,962 508,718 General Fund - unrestricted 55,850 55,850 KFCG Street Maintenance & Repair 372,606 0 KFCG Other Transportation 278,510 0 KFCG Police 879,284 773,744 KFCG Parks & Recreation 123,757 173,135 Golf Fund 50,000 50,000 Light & Power Fund 0 1,150,000 Urban Renewal Authority 0 263,312 Total: 2,198,969 2,974,759 2013-14 Budgeted Reserves for Ongoing Expenses 36 Total Allocation by Results Area - 2014 * In addition to the seven result areas, the total allocation by results also includes $49.4M in 2013 and $48.6M in 2014 for items like transfers between funds, debt service, payments to retirees and insurance costs 1 Water, Wastewater, Natural Areas, Environmental Services 2 Police, Fire, Electric, Stormwater 19 37 Changes to the 2013-14 Budget Process • Evaluation of How to Reduce the Size of Offers over $4M • Split into Smaller Offers - Street Maintenance and Repair - Fleet Services - Utility Customer Services • Added Narrative Explaining the Component Pieces - Water Reclamation & Biosolids - Water Resources and Treatment Services - Utility Payments and Transfers - Light & Power System Additions and Replacements - Patrol Division • Some Offers couldn’t be broken down meaningfully - Purchased Energy from PRPA - Transfort Fixed-Route Operations - Benefits Programs and Services - PFA Emergency Operations