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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/15/2015 - 2016 BUDGET REVISIONSDATE: STAFF: September 15, 2015 Lawrence Pollack, Budget & Performance Measurement Manager Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION 2016 Budget Revisions. EXECUTIVE SUMMARY The purpose of this agenda item is to familiarize and seek feedback from City Council on the City Manager’s Recommended Revisions to the 2016 Budget before the 2016 Annual Appropriation Ordinance goes to First Reading on November 3 and Second Reading on November 17. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Staff is seeking Council feedback on the City Manager’s Recommended Revisions to the 2016 Budget. 2. Staff also seeks direction on whether or not to include the two Offers needing further discussion for First Reading of the 2016 Annual Appropriation Ordinance BACKGROUND / DISCUSSION Citywide, supplemental appropriations being recommended total $29.5 million. The General Fund share is $4.6M, $1.4M is from the Keep Fort Collins Great Fund, $9.1M is from Utility funds, $8.0M is from Transportation, and the remaining $6.5M is from other various funds. A complete packet of requests is attached. (Attachment 1) Following are key objectives which the recommendations are intended to address:  Council priorities  Projected revenue from the renewal of the ¼ Cent Street Maintenance Tax  Capital project and other needs not known at the time of the adoption of the 2015-16 Budget (e.g. Climate Action Plan)  Fiduciary responsibilities in the Self Insurance Fund and the Benefits Fund  Maintaining fund balances to support future needs and economic uncertainty The recommended 2016 Budget Revisions meet these goals. Sales and use tax, as well as property tax revenues are expected to be higher than originally anticipated for 2015 and 2016. 2015 sales tax collections are now forecasted to be $3.9M higher while use tax collections are anticipated to be $7.1M higher. Those amounts are then split into the General Fund (approximately 60%), and the dedicated voter approved taxes (e.g. Keep Fort Collins Great, OpenSpace Yes!, etc.). The City has been notified by Larimer County that property taxes are anticipated to be nearly $1.0M higher in 2015 than previously forecasted. Looking ahead to 2016, sales tax is forecasted to grow 3.0% over the new 2015 base and use tax is being held flat to the $17.0M originally forecasted due to the significant volatility of that revenue stream. 2016 property tax is forecasted to be 10% over the 2015 base, although two-thirds of that increase will go to PFA in 2017, per our IGA. For the Budget Revision process, only major revenue sources are updated. Any additional revenues that are not used to fund budget offers will increase the various fund balances. September 15, 2015 Page 2 Summary of Available Funding $ in Millions General Fund Ongoing General Fund One- Time KFCG Transport ation Other Utililities Total Sales & Use Tax $ 2.4 $ 6.6 $ 3.0 $ 11.9 Property Tax 0.7 1.0 1.7 Street Maintenance 1/4 Cent 7.7 7.7 Utilities - Use of Reserves 9.1 9.1 Unassigned 2014 1.3 6.8 7.5 8.2 23.8 BCC Excess 1.6 1.6 Benefits Fund Revenue Depts 2.7 2.7 TOTAL $ 3.1 $ 8.9 $ 9.8 $ 15.2 $ 12.5 $ 9.1 $ 58.5 The attached materials have previously been reviewed by the Council Finance Committee during the August 24, 2015 meeting. The following changes were made since then:  Adjusted 2015 Sales Tax growth downward based on the last 3 months of actual collections. The reason for this is that the later months of 2014 had significant growth over 2013, which challenges growth in the second half of 2015 over the second half of 2014.  Increased the cost of the Prospect and College Intersection Offer by $300K. The reason for this is to include a dedicated eastbound to southbound right turn lane. This addition will result in a significant improvement to the operation of the intersection and staff recommends doing it at the same time as the other proposed improvements for efficiency. For the 2016 Budget Revision Requests, staff recommends using $15.3 million from reserves and available one- time revenue. The requests include use of reserves of $12.3M from the Capital Expansion – Community Parks, Capital Projects, Light and Power, Wastewater, and General Funds for large capital projects. $0.9M is coming from Keep Fort Collins Great reserves with the remainder of the reserves primarily coming from the General Fund for various one-time uses. Descriptions of the recommended requests are included in the 2016 Budget Revision document (Attachment 1). Recommended Revisions $ in Millions General Fund Ongoing General Fund One- Time KFCG Transport ation Other Utililities Total Self Funded Requests $ 0.5 $ 0.1 $ 0.6 Large Capital Projects 1.1 7.8 2.7 5.0 16.6 Climate Action Projects 0.0 0.1 0.1 3.6 3.9 Human Resoures / Benefits 1.1 0.3 0.2 0.2 3.6 0.4 5.8 Other Recommended Programs 0.3 1.6 0.6 0.1 2.6 TOTAL $ 1.5 $ 3.1 $ 1.4 $ 8.0 $ 6.5 $ 9.1 $ 29.5 Offers Needing Further Discussion $ in Millions General Fund Ongoing General Fund One- Time KFCG Transport ation Other Utililities Total Community Recycle Center O&M 0.4 0.4 Regional Training Facility Design 0.8 0.8 TOTAL $ 0.4 $ 0.8 $ - $ - $ - $ - $ 1.2 September 15, 2015 Page 3 Summary of 2016 Revisions $ in Millions General Fund Ongoing General Fund One- Time KFCG Transport ation Other Utililities Total Revenue Update $ 3.1 $ 8.9 $ 9.8 $ 15.2 $ 12.5 $ 9.1 $ 58.5 Recommended Budget Revisions 1.5 3.1 1.4 8.0 6.5 9.1 29.5 Net Impact $ 1.6 $ 5.8 $ 8.4 $ 7.2 $ 6.0 $ 0.0 $ 29.0 Discussion Offers 0.4 0.8 - - - - 1.2 Total Net Impact Fund Balance $ 1.2 $ 5.0 $ 8.4 $ 7.2 $ 6.0 $ 0.0 $ 27.8 The mid-cycle revision process is different from the biennial Budgeting for Outcomes process. There was no review by BFO Results Teams or Boards and Commissions. However, the Executive Leadership Team and City Manager 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. ATTACHMENTS 1. 2016 Revision Summaries and Items (PDF) 2. Powerpoint presentation (PDF) Council Work Session 2016 Budget Revision Requests September 15, 2015 Attachment 1 2016 BUDGET REVISION REQUESTS TABLE OF CONTENTS SUMMARY OVERVIEWS Revision Request Summary ................................................................................................. 1 Revision Request Summary by Funding Source ................................................................. 3 SELF FUNDED OFFERS AND PFA KFCG Harmony Park and Ride - Parking Enforcement Officer ..................................................... 6 Design Funds - Mail Creek Stream Restoration ................................................................. 7 Emergency Services Dispatcher ....................................................................................... 10 KFCG - Fire Reserves for PFA ......................................................................................... 11 LARGE CAPITAL PROJECTS FUNDED BY RESERVES OR DEDICATED 1/4 CENT TAX Southeast Community Park - Water Rights & Construction ............................................. 12 Major Duct Banks and Circuits Funding Increase ............................................................. 13 Prospect Road and College Avenue Intersection Improvements ..................................... 14 Renewal of 1/4 Cent Street Maintenance Tax .................................................................. 16 CLIMATE ACTION PLAN (CAP) OFFERS Climate Action Plan: Water Reclamation Biogas to Co-Gen ............................................ 17 Climate Action Plan: Business Planning for Strategic Initiatives and Public-Private Partnership................................................................................................. 18 Climate Action Plan: Energy Code Performance Program (Including Contractual 1.0 FTE) ........................................................................................ 20 Climate Action Plan: Communication and Engagement Platform Design and Implementation .................................................................................................................. 22 HUMAN RESOURCE OFFERS Chief Human Resources Officer Position ......................................................................... 24 Total Rewards Strategy: Career Architecture and Pay Structure……… ......................... .25 Cost Adjustments to the Benefits Fund (Benefits cost) .................................................... 27 Cost Adjustments to the Benefits Fund (cost to Departments) ......................................... 31 OTHER RECOMMENDED 2016 BUDGET REVISION OFFERS Neighborhood Services Strategic Plan and Implementation of Neighborhood Districts………………………… ......................................................................................... 34 Nature in the City Implementation (Contractual FTE) ....................................................... 35 Homelessness Initiative - Street Outreach Pilot Program ................................................. 37 Parks Division Competitive Hourly Wages ........................................................................ 39 Spring Canyon Playground Surfacing Replacement ........................................................ 40 Collindale Golf Course Irrigation Control Software Upgrade ............................................ 41 Downtown Parking Structure - Debt Service..................................................................... 42 Increase to Claims Settlement Account within the Self Insurance Fund .......................... 43 IT Open Data Portal - First Phase Implementation ........................................................... 44 City Clerk Licensing Coordinator (Contractual FTE) ......................................................... 45 Police Property and Evidence Technician ........................................................................ 46 Additional Bus Stop Improvements for ADA Accessibility (Contractual FTE) ................... 47 OFFERS NEEDING FURTHER DISCUSSION Annual Operations for the Community Recycling Center (CRC) ...................................... 48 Design Funding for the Police Regional Training Campus ............................................... 50 CAP OFFERS NOT RECOMMENDED FOR 2016 REVISIONS Energy Services Program Funding ................................................................................... 51 Peak Partners Demand Response Program..................................................................... 52 Solar Renewable Energy .................................................................................................. 53 Climate Action Plan - Flexible Transit Service Pilot Project .............................................. 54 2016 Budget Revision Requests Proposed Related Page Outcome Funding Source Service Area Offer # Adjustment Requested FTE Ongoing $ One-Time $ TOTAL $ Self Funded Offers and PFA KFCG 6 ECON Parking PDT N/A Harmony Park and Ride - Parking Enforcement Officer 0.75 $60,000 $0 $60,000 7ENV Not Applicable Utilities N/A Design Funds - Mail Creek Stream Restoration 000 10 SAFE General Fund Police Services N/A Emergency Services Dispatcher 1.00 70,475 0 70,475 11 SAFE KFCG - Fire PFA N/A KFCG - Fire Reserves for PFA 0 483,219 483,219 Sub-Total 1.75 $130,475 $483,219 $613,694 Large Capital Projects Funded by Reserves or Dedicated 1/4 Cent Tax 12 C&R Capital Expansion Comm & Op Svcs 8.3 Southeast Community Park - Water Rights & Construction Costs $0 $1,100,000 $1,100,000 13 ECON Light & Power Utilities N/A Major Duct Banks and Circuits Funding Increase 0 5,000,000 5,000,000 14 TRAN GF = $800K BCC = $1.6M PDT N/A Prospect Road and College Avenue Intersection Improvements 0 2,700,000 2,700,000 16 TRAN Transportation PDT 25.15 Renewal of 1/4 Cent Street Maintenance Tax 7,786,500 0 7,786,500 Sub-Total 0.00 $7,786,500 $8,800,000 $16,586,500 Climate Action Plan (CAP) Offers 17 ENV Wastewater Utilities 174.1 Climate Action Plan: Water Reclamation Biogas to Co-Gen $0 $3,500,000 $3,500,000 18 ENV General Fund, L&P, Wastewater Sustainability Svcs N/A Climate Action Plan: Business Planning for Strategic Initiatives and Public-Private Partnership 0 150,000 150,000 20 ENV General Fund Light & Power Utilities N/A Climate Action Plan: Energy Code Performance Program (including Contractual 1.0 FTE) 1.0 74,000 60,000 134,000 22 ENV General Fund Sustainability Svcs N/A Climate Action Plan: Communication and Engagement Platform Design & Implementation 0 125,000 125,000 Sub-Total 1.00 $74,000 $3,835,000 $3,909,000 Human Resource Offers 24 HPG General Fund Benefits Fund Emp & Comm Svcs N/A Chief Human Resources Officer Position 1.0 $121,276 $21,000 $142,276 25 HPG General Fund Emp & Comm Svcs N/A Total Rewards Strategy: Career Architecture and Pay Structure 0 275,000 275,000 27 HPG Benefits Fund Emp & Comm Svcs N/A Cost Adjustments to the Benefits Fund (Benefits cost) 2,700,000 0 2,700,000 31 HPG Multiple Funds Emp & Comm Svcs N/A Cost Adjustments to the Benefits Fund (cost to Departments) 2,720,789 0 2,720,789 Sub-Total 1.00 $5,542,065 $296,000 $5,838,065 Other Recommended 2016 Budget Revision Offers 34 CNL General Fund Comm & Op Svcs 77.1 Neighborhood Services Strategic Plan and Implementation of Neighborhood Districts $0 $67,000 $67,000 35 CNL General Fund PDT N/A Nature in the City Implementation (Contractual FTE) 1.0 78,089 0 78,089 Page 1 2016 Budget Revision Requests Proposed Related Page Outcome Funding Source Service Area Offer # Adjustment Requested FTE Ongoing $ One-Time $ TOTAL $ 37 CNL KFCG - Other Comm. Priorities Sustainability Svcs 48.7 Homelessness Initiative - Street Outreach Pilot Program 0 80,000 80,000 39 C&R General Fund Comm & Op Svcs 98.1 Parks Division Competitive Hourly Wages 110,000 0 110,000 40 C&R KFCG - Parks & Rec Comm & Op Svcs 98.1 Spring Canyon Playground Surfacing Replacement 0 208,000 208,000 41 C&R Golf Comm & Op Svcs 76.1 Collindale Golf Course Irrigation Control Software Upgrade 0 30,000 30,000 42 ECON General Fund Financial Svcs N/A Downtown Parking Structure - Debt Service 0 900,000 900,000 43 HPG General Fund Financial Svcs N/A Increase to Claims Settlement Account within the Self Insurance Fund 0 600,000 600,000 44 HPG Data & Comm Comm & Op Svcs 9.1 IT Open Data Portal - First Phase Implementation 60,000 40,000 100,000 45 HPG General Fund ELJS 116.3 City Clerk Licensing Coordinator (Contractual FTE) 1.0 68,917 5,700 74,617 46 SAFE KFCG - Police Police Services 56.4 Police Property and Evidence Technician 1.0 73,726 0 73,726 47 TRAN KFCG - Other Tran PDT N/A Additional Bus Stop Improvements for ADA Accessibility (Contractual FTE) 1.0 275,000 0 275,000 Sub-Total 4.00 $665,732 $1,930,700 $2,596,432 Grand Total 7.75 $14,198,772 $15,344,919 $29,543,691 Offers Needing Further Discussion 48 ENV KFCG - Other Comm. Priorities Sustainability Svcs 47.5 Annual Operations for the Community Recycling Center (CRC) $380,000 $0 $380,000 50 SAFE General Fund Police Services 56.32 Design Funding for the Police Regional Training Campus $0 $810,000 $810,000 Sub-Total 0.00 $380,000 $810,000 $1,190,000 Page 2 2016 Budget Revision Requests - BY FUNDING SOURCE Total Fund Related Ongoing & Fund OutcomeService Area Offer # Adjustment Requested FTE Ongoing $ One-Time $ One-Time $ General Fund CNL Comm & Op Svcs 77.1 Neighborhood Services Strategic Plan and Implementation of Neighborhood Districts $0 $67,000 $67,000 CNL Comm & Op Svcs N/A Nature in the City Implementation (Contractual FTE) 1.0 78,089 0 78,089 C&R Comm & Op Svcs 98.1 Parks Division Competitive Hourly Wages 110,000 0 110,000 ECON Financial Svcs N/A Downtown Parking Structure - Debt Service 0 900,000 900,000 ENV Sustainability Svcs N/A Climate Action Plan - Energy Code Performance Program 37,000 30,000 67,000 ENV Sustainability Svcs N/A Climate Action Plan: Business Planning for Strategic Initiatives and Public-Private Partnership 0 75,000 75,000 SAFE Police N/A Emergency Services Dispatcher 1.0 70,475 0 70,475 TRAN PDT N/A Prospect Road and College Avenue Intersection Improvements 0 1,100,000 1,100,000 HPG Financial Svcs N/A Increase to Claims Settlement Account within the Self Insurance Fund 0 600,000 600,000 HPG ELJS 116.3 City Clerk Licensing Coordinator 1.0 68,917 5,700 74,617 HPG Emp & Comm Svcs N/A Total Rewards Strategy: Career Architecture and Pay Structure 0 275,000 275,000 HPG Emp & Comm Svcs N/A Chief Human Resources Officer Position 1.0 92,957 21,000 113,957 HPG Emp & Comm Svcs N/A Benefits Adjustments 1,033,806 0 1,033,806 Total General Fund 4.0 $1,491,244 $3,073,700 $4,564,944 KFCG Fund Fire & Emergency SAFE PFA KFCG - Fire Reserves for PFA $0 $483,219 $483,219 Sub-Total Fire & Emergency $0 $483,219 $483,219 Parks & Recreation C&R Comm & Op Svcs 98.1 Spring Canyon Playground Surfacing Replacement $0 $208,000 $208,000 Sub-Total Parks & Recreation $0 $208,000 $208,000 Police SAFE Police 56.4 Police Property and Evidence Technician 1.0 $73,726 $0 $73,726 Sub-Total Police 1.0 $73,726 $0 $73,726 Other Community Priorities CNL Sustainability Svcs 48.7 Homelessness Initiative - Street Outreach Pilot Program $0 $80,000 $80,000 ENV Sustainability Svcs N/A Climate Action Plan - Communication and Engagement Platform Design & Implementation 0 125,000 125,000 Sub-Total Other Community Priorities $0 $205,000 $205,000 Other Transportation TRAN PDT N/A Additional Bus Stop Improvements for ADA Accessibility (contractual FTE) 1.0 $275,000 $0 $275,000 Sub-Total Police 1.0 $275,000 $0 $275,000 Page 3 2016 Budget Revision Requests - BY FUNDING SOURCE Total Fund Related Ongoing & Fund OutcomeService Area Offer # Adjustment Requested FTE Ongoing $ One-Time $ One-Time $ Other KFCG Designations HPG Emp & Comm Svcs N/A Benefits Adjustments $171,265 $0 $171,265 Sub-Total Other KFCG Designations $171,265 $0 $171,265 Total KFCG Fund 2.0 $519,991 $896,219 $1,416,210 TRAN PDT 25.15 Renewal of 1/4 Cent Street Maintenance Tax $7,786,500 $0 $7,786,500 HPG Emp & Comm Svcs N/A Benefits Adjustments 208,117 0 208,117 Total Transportation Services Fund $7,994,617 $0 $7,994,617 Parking ECON PDT N/A Harmony Park and Ride - Parking Enforcement Officer 0.75 $60,000 $0 $60,000 HPG Emp & Comm Svcs N/A Benefits Adjustments 10,279 0 10,279 Total Other Funds 0.75 $70,279 $0 $70,279 Benefits HPG Emp & Comm Svcs N/A Chief Human Resources Officer Position $28,319 $0 $28,319 HPG Emp & Comm Svcs N/A Benefits Adjustments 2,700,000 0 2,700,000 Total Benefits Funds $2,728,319 $0 $2,728,319 ECON Utilities N/A Major Duct Banks and Circuits Funding Increase $0 $5,000,000 $5,000,000 ENV Utilities N/A Climate Action Plan - Energy Code Performance Program 1.0 37,000 30,000 67,000 ENV Utilities N/A Climate Action Plan: Business Planning for Strategic Initiatives and Public-Private Partnership 0 50,000 50,000 HPG Emp & Comm Svcs N/A Benefits Adjustments 226,568 0 226,568 Total Light & Power Fund 1.0 $263,568 $5,080,000 $5,343,568 Water HPG Emp & Comm Svcs N/A Benefits Adjustments $113,481 $0 $113,481 Total Stormwater Fund $113,481 $0 $113,481 Wastewater ENV Utilities 174.1 Climate Action Plan - Water Reclamation Biogas to Co-Gen $0 $3,500,000 $3,500,000 ENV Utilities N/A Climate Action Plan: Business Planning for Strategic Initiatives and Public-Private Partnership 0 25,000 25,000 HPG Emp & Comm Svcs N/A Benefits Adjustments 44,920 0 44,920 Total Wastewater Fund $44,920 $3,525,000 $3,569,920 Stormwater ENV Utilities 174.1 Design Funds - Mail Creek Stream Restoration (self- funded) $0 $0 $0 HPG Emp & Comm Svcs N/A Benefits Adjustments 64,597 0 64,597 Total Stormwater Fund $64,597 $0 $64,597 Transportation Light & Power Page 4 2016 Budget Revision Requests - BY FUNDING SOURCE Total Fund Related Ongoing & Fund OutcomeService Area Offer # Adjustment Requested FTE Ongoing $ One-Time $ One-Time $ Other Funds Capital Expansion C&R Comm & Op Svcs 8.3 Southeast Community Park - Water Rights & Construction Costs $0 $1,100,000 $1,100,000 Golf C&R Comm & Op Svcs 76.1 Collindale Golf Course Irrigation Control Software Upgrade 0 30,000 30,000 Capital Projects (BCC) TRAN PDT N/A Prospect Road and College Avenue Intersection Improvements 0 1,600,000 1,600,000 Data and Comm HPG Comm & Op Svcs 9.1 IT Open Data Portal - First Phase Implementation 60,000 40,000 100,000 Various HPG Emp & Comm Svcs N/A Benefits Adjustments 847,756 0 847,756 Total Other Funds $907,756 $2,770,000 $3,677,756 Total All Funds 7.75 $14,198,772 $15,344,919 $29,543,691 Offers Needing Further Discussion ENV Sustainability Svcs 47.5 Annual Operations for the Community Recycling Center (CRC) $380,000 $0 $380,000 SAFE Police Services 56.32 Design Funding for the Police Regional Training Campus 0 810,000 810,000 Sub-Total 0.00 $380,000 $810,000 $1,190,000 Page 5 Revision Title: Outcome: Contact: Mark Jackson Expense Fund: Package/Offer #: None Funding Source: Ongoing: $60,000 One-time: $0 TOTAL Amount: $60,000 FTE Requested: 0.75 FTE - Description: Performance Measures: https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=771 8&object=measure&objectID=109926 TRAN 45. % of citizens responding very good/good - Ease of traveling by public transportation in Fort Collins HPG 68. % of citizens responding very good/good to the City's performance in - Managing and planning for growth 2016 BUDGET REVISION REQUEST Harmony Park and Ride - Parking Enforcement Officer 294 - PARKING FUND Economic Health 294 - Parking Fund (grant) Parking Enforcement Officer The City of Fort Collins Parking Services Department is entering into a funding agreement with the Colorado Department of Transportation (CDOT) to contract for daily parking enforcement at the Harmony Transfer Center (Park and Ride). This provides parking enforcement for CDOT's new inter- regional bus service, "Bustang". All costs for parking enforcement are borne by CDOT. One .75 hourly parking enforcement position is included in this offer. The budget revision provides the funds for 2016 enforcement activities. https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=771 8&object=measure&objectID=109978 Page 6 Revision Title: Outcome: Contact: Jon Haukaas Expense Fund: Package/Offer #: None Funding Source: Ongoing: $0 One-time: $0 FTE Requested: None TOTAL Amount: $0 Description: Performance Measure: ENV 106 Stream Rehabilitation - Number of Linear Feet of Stream Constructed https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=8326&obj ect=measure&objectID=121038 The Stormwater Utility will be completing an update to our Master Plan Summary documents prior to the beginning of next year's work on the 2017-2018 BFO process. Those documents will provide the Council the information necessary to update the prioritization of future Stormwater projects as we move into that next budgeting cycle. Please see following pages for additional information requested from the Council Finance Committee 2016 BUDGET REVISION REQUEST Design Funds - Mail Creek Stream Restoration 504 - STORMWATER FUND Environmental Health N/A - self funded The Fossil Creek Meadows Home Owner's Association (FCMHOA) was annexed in 2009 as part of the Southwest Annexation process. A section of Mail Creek is severely eroded through FCMHOA property and is identified in the Mail Creek Basin Master Plan as being in need of repairs. The prioritization of stormwater projects presented to City Council in 2012 identified this section of Mail Creek as the third priority stream restoration project after Fossil Creek upstream of Lemay Ave (completed in the spring of 2015) and Spring Creek through Edora Park (currently in final design). It has been requested that the Stormwater Utility advance the design of the Mail Creek project to fully understand the costs, impact, benefits, and layout of a solution to the erosion concerns on the FCMHOA property. This will be a complex project for a variety of reasons beyond the steep eroded banks. The site has limited access and will require easements for access, construction, and maintenance from the FCMHOA. The New Mercer Irrigation Company runs a significant amount of water through this section and will need to be involved in the design to ensure the project continues to meet their water delivery needs. The South Fort Collins Sanitation District has existing easements and infrastructure through this section that will be impacted by a project. Finally, the environmental study and Corps of Engineers permitting that has been initiated over the past year will need to be completed. The impact of advancing this project is it removes construction funding of the Spring Creek project that staff is coordinating with the replacement of the Riverside Ave bridge leading to EPIC. Final construction funding will need to come from future appropriations. Page 7 Design Funds – Mail Creek Stream Restoration Offer - UCouncil Finance Committee - 2016 Budget Revisions Review Follow-up 1.a. The 2015-2016 BFO process appropriated funds for Stream Rehabilitation as follows: 2015 2016 Spring Creek Stream Restoration & BMPS $600,000 $650,000 Stream Rehab Maintenance Projects $ 50,000 $ 50,000 To date, we have encumbered or spent approximately $200,000 on the Environmental investigation and permitting for both Spring Creek and Mail Creek, plus the design of the Spring Creek restoration project. We anticipate having final design completed by October. Taking the longer design time allowed us to coordinate with Engineering for the proposed replacement of the Riverside Ave bridge leading into EPIC and for the potential Parks project to replace the pedestrian bridge in this area. 1.b. Initial estimates place the construction phase costs for the Spring Creek project at $700,000. Any excess appropriation (in the range of $300,000) will be used for the next Stream Rehabilitation project – currently identified as the Mail Creek project. We do not have a clear estimate of what it would take to rehabilitate the Mail Creek segment since no design work has been completed on the project. We have obviously held a few high level discussions of potential alternative solutions. At this level of detail our best guess is that the costs will be in the range of $1.5M-$2.5M, or possibly more. These types of projects must be constructed between late October and the beginning of April to avoid the irrigation season as several Irrigation Companies have rights to use the creeks for delivery. We are in a position to be able to complete the Spring Creek project over the 2015-2016 winter season. The Mail Creek project will need to wait for the 2016-2017 winter season regardless of funding availability in order to determine a finalize a designed solutions plus allow for outreach and coordination with the residents and affected Irrigation Companies. Due to this uncertainty and timing, we feel it is important to re-allocate the funds to initiate a design as soon as possible. Having a solid construction plan and cost proposal will allow us to accurately evaluate the priority for construction versus other stormwater fund needs. Staff is finalizing the construction proposal for Spring Creek and will develop a design proposal for the Mail Creek project. Staff intends to complete both actions if sufficient funds are available. 1.c. Current Stormwater Master Plan identify project needs in excess of $234M based on plans completed or updated between 2004 and 2012. Funds available for Capital Project construction is approximately $4M per year. With the various needs and completing priorities for these funds, prioritization becomes Page 8 extremely important to implementing an efficient and effective program. Staff presented a funding scenario to the City Council in April of 2012 that proposed to allocate dedicated funds to Stream Rehabilitation projects. This was driven by the overall Stormwater Repurposing which moved away from prioritizing projects purely on a public safety perspective and began to consider the other triple bottom line importance of water quality and habitat improvements. Due to the difficulty of quantifying a dollar value on comparing water quality improvements to protecting human life, a cost split was proposed that would allow the City to begin addressing all concerns. Prioritization looked at three primary needs: 1. Flood Protection & Mitigation projects, 2. Stream Rehabilitation projects, and finally, 3. for previously lower ranked, unranked, or unidentified projects that were generally driven by emergencies, City Infrastructure needs in coordination with partners, availability of grant funding, and timing of other projects. The selected scenario was to allocate the $4M approximately as follows: x $2,550,000 per year for prioritized flood protection and mitigation projects. x $650,000 per year for stream rehabilitation projects. x $850,000 per year for unanticipated project needs. Examples of this third category have been Poudre River flood repairs, the North East College Corridor Outfall (NECCO) project to provide infrastructure for the North College URA, outfall improvements made necessary by the reconstruction of Lincoln Ave, River District storm sewer needs, etc. An update of the Stormwater Capital Improvement Plan needs assessment and prioritization is being done over the next few months. We anticipate having this completed prior to entering into the 2017- 2018 BFO process next spring to help guide our requests. Page 9 Revision Title: Outcome: Contact: Carol Workman Expense Fund: Package/Offer #: None Funding Source: Ongoing: $70,475 One-time: $0 TOTAL Amount: $70,475 FTE Requested: 1.0 FTE - Description: Performance Measure: SAFE 50. % of citizens responding very good/good quality of - Police services overall in Fort Collins https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=7718& object=measure&objectID=109973 Emergency Services Dispatcher Earlier this year Poudre Fire Authority completed contract negotiations with University Health/Poudre Valley Hospital (PVH) for dedicated ambulance services for the City of Fort Collins and the Poudre Fire Authority district. Within this agreement emergency dispatching services with Fort Collins 911 was outlined and an additional agreement between The City of Fort Collins and PVH was completed. Currently the agreement for dispatch services is being circulated for signatures. In the agreement, PVH has agreed to fund a 1.0 FTE Emergency Services Dispatcher beginning in 2016. This agreement will automatically renew each succeeding year through December 31, 2021 or until modified. The 1.0 FTE is necessary for the dispatch center to continue to maintain service levels for PVH and the community. The position of Emergency Services Dispatcher is critical to the organization as this position is responsible for handling and triaging incoming 911 telephone calls, non-emergency telephone calls as well as dispatching field units to calls for service. Additionally, the Emergency Services Dispatcher is trained in CPR and can provide emergency medical instructions to citizens via the Emergency Medical Dispatch (EMD) program and protocols. This provides additional medical related information to responding EMS and Fire personnel based on the condition of the patient. 2016 BUDGET REVISION REQUEST Emergency Services Dispatcher 100 - GENERAL FUND Safe Community 100 - General Fund - grant Page 10 Revision Title: Outcome: Contact: Kirsten Howard Fund: Package/Offer #: None Funding Source: Ongoing: 0 One-time: $483,219 TOTAL Amount: $483,219 FTE Requested: None Description: PFA staff is requesting the KFCG Reserve for Fire held by the City of Fort Collins. Chief DeMint will be discussing the budget priorities and targeted outcomes with his staff and the PFA Board of Directors for allocation of these funds in the PFA 2016 budget. Examples of what these one-time funds could be used for include a new station alerting system, fire apparatus, self-contained breathing apparatus, and/or radios. Benefits of these items include response time improvements, improved citizen and firefighter safety, and communications improvements. 2016 BUDGET REVISION REQUEST KFCG - Fire Reserves for PFA 840 - POUDRE FIRE AUTHORITY Safe Community KFCG Emergency & Fire - Reserves Page 11 Revision Title: Outcome: Contact: Kurt Friesen Expense Fund: Package/Offer #: 8.3 Funding Source: Total Amount: $1,100,000 FTE Requested: None Description: Performance Measure: CR 61 - Acres of Park/1,000 Population Southeast Community Park is a proposed 54 acre community park located at the intersection of Ziegler and Kechter. The park is currently scheduled to be constructed in 2016 with an anticipated opening in 2017. Construction costs remain very volatile, and have increased dramatically over the last few years, resulting in the need for more funding for the project. This request is for an appropriation of 1.1 million from the Capital Expansion Fund/ Community Parkland reserves to provide the necessary funding for the park and additional irrigation water shares. There is approximately 4.3 million currently in Community Parkland reserves. https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=6288& object=measure&objectID=109708 2016 BUDGET REVISION REQUEST Southeast Community Park - Water Rights & Construction 400 - CAPITAL PROJECTS FUND Culture & Recreation Capital Expansion Fund - Community Parkland Reserve Page 12 Revision Title: Outcome: Contact: Travis Walker Expense Fund: Package/Offer #: None Funding Source: Ongoing: $0 One-time: $5,000,000 TOTAL Amount: $5,000,000 FTE Requested: None Description: The backbone of the distribution infrastructure required to serve all commercial and residential customers of the City is a system of primary circuits that are housed in duct banks. While new developments must cover the costs of the infrastructure required to serve them through electric development fees, it is necessary to install duct banks ahead of specific developments because the duct banks serve both existing and new customers. Once a new development requests electric service, the excess capacity of existing cables installed in the duct banks is assessed to determine if it is necessary to add another primary cable to serve the new demand. Installing the duct banks themselves ahead of other utilities being installed ensures adequate space is available in the right of ways. Recent assessments have determined the need to install several new duct banks so that there is availability to add primary cables to serve anticipated new demands.* These conduit systems, or duct banks, can cost $425,000 per mile in open or "greenfield" development, and can be close to $1M per mile in established areas such as the Harmony corridor. Light and Power operations personnel have identified the need for an additional $5M worth of duct banks to be installed in 2016. * Focus areas for the new duct banks will include the downtown area and east Harmony Road from Timberline to I-25. 2016 BUDGET REVISION REQUEST Major Duct Banks and Circuits Funding Increase 501 - LIGHT & POWER FUND Economic Health 501 - LIGHT & POWER FUND - Reserves Page 13 Revision Title: Outcome: Contact: Dean Klingner Expense Fund: Package/Offer #: None Funding Source #1: Funding Amount #1: $1,600,000 Funding Source #2: Funding Amount #2: 1,100,000 Total Amount: $2,700,000 Ongoing: $0 One-time: 2,700,000 FTE Requested: None TOTAL Amount: $2,700,000 Description: General Fund - Reserves This offer proposes to correct the existing deficiencies at the Prospect Road and College Avenue (State Highway 287) intersection during the same time that CSU will be making required improvements to the west side of the intersection in order to align the intersection lanes, improve safety, and reduce congestion. This project is proposed in addition to, and coordinated with, improvements planned by Colorado State University (CSU). The full intersection improvements will be cost-shared with CSU based on proportional traffic demand. (1) As a part of the Inter-Governmental Agreement (IGA) between CSU and the City, CSU has agreed to make improvements to the Prospect and College intersection in proportion to the predicted increase in traffic related to multiple on-campus infrastructure projects. (2) This presents an opportunity for the City to add complete improvements to the intersection to address existing problems and increase the citywide benefits of the project. (3) The 2011 Arterial Intersection Prioritization Study identified College Avenue and Prospect Road as one of the City’s top ranked locations for needed safety and operational improvements. Complete expansion and improvement of the intersection may have significant property impacts to existing businesses located in the vicinity. This offer proposes to explore design alternatives for improvements that: • (1) result in significant improvement to existing safety and congestion problems • (2) could be built along with CSU’s improvements • (3) have additional elements that could be done in the future and/or phased in with redevelopment of the adjacent properties, if that opportunity arises. • (4) include opportunities to improve bicycle and pedestrian flow along the Mason trail, adjacent to Prospect Road 2016 BUDGET REVISION REQUEST Prospect Road and College Avenue Intersection Improvements 292 - TRANSPORTATION SERVICES FUND Transportation Capital Project Fund (BCC) - Reserves Page 14 Performance Measure: TRAN 21. Transportation Capital Projects On-Time and On-Budget Total City cost including design, right of way acquisition and construction is $2.7M. Additional info: • CSU does not participate in the Street Oversizing program; therefore Street Oversizing funds would not generally be allocated for these improvements. • The City has several recent examples of funding road improvements through the General Fund including the Lincoln Avenue Improvements and the North College Improvements. • CDOT has told the City they do not have funds to contribute, but this project could be eligible for grant funds if they become available in the future. • With projected traffic growth between now and the fall of 2017 (estimated 80% CSU and 20% City), and no improvements Level of Service (LOS) goes from D to E. If we implement dual lefts for EB and WB, LOS goes back to D which is what we have today. If only the EB dual lefts are implemented, we predict about 1/3 of the congestion-relief compared to the proposed joint project (both EB and WB dual lefts). https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=7268&obj ect=measure&objectID=104446 Page 15 Revision Title: Outcome: Contact: Darren Moritz Expense Fund: Package/Offer #: 25.15 Funding Source: Ongoing: $7,786,500 One-time: $0 TOTAL Amount: $7,786,500 FTE Requested: None Description: Performance Measure: TRAN 3. Cumulative Lane Miles of Roadway Pavement Improved https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=6351&obj ect=measure&objectID=91507 2016 BUDGET REVISION REQUEST Renewal of 1/4 Cent Street Maintenance Tax 292 - TRANSPORTATION SERVICES FUND Transportation Transportation - Street Maintenance 1/4 Cent Tax In 2005, Fort Collins voters approved a ¼ cent street maintenance tax to help maintain our overall street network level of service “B” or “Good” rating. This tax was set to expire on 12/31/2015. The Keep Fort Collins Great (KFCG) tax (dedicated 33% towards street maintenance & repair) doesn’t expire until 12/31/2020. With the combination of the ¼ cent street maintenance tax revenue and KFCG revenue, the Street Maintenance Program (SMP) has been fully funded from 2011 through 2015. In April of 2015, voters approved the continuation of the 1/4 cent street maintenance tax. The new tax expiration date is now 12/31/2025. This dedicated tax revenue shall be used to pay the costs associated with the repair and renovation of City Streets, including, but not limited to, curbs, gutters, bridges, parkways, shoulders and medians. The use of these funds will allow for the resurfacing and maintenance of approximately 65 additional lane miles per year. This budget revision is an appropriation request for the amount of sales tax that will be collected in 2016. Page 16 Revision Title: Outcome: Contact: Jason Graham Expense Fund: Package/Offer #: 174.1 Funding Source: Ongoing: $0 One-time: $3,500,000 FTE Requested: None TOTAL Amount: $3,500,000 Description: Performance Measure: ENV 38. Energy consumption efficiency for wastewater treatment https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=6345 &object=measure&objectID=109733 2016 BUDGET REVISION REQUEST Climate Action Plan: Water Reclamation Biogas to Co-Gen This budget revision request for 2016 is for the design/build of a cogeneration and gas conditioning system at the Drake Water Reclamation Facility (DWRF). Purpose of Offer and Why: This request is one of four offers responding to City Council and City manager requests for Climate Action Plan (CAP) implementation strategies. The purpose of these offers is to develop or expand City programs that will aid in or directly affect the reduction of the community’s greenhouse gas emissions. This project is scalable with future possible opportunities in community resource recover initiatives and compressed natural gas for fleet use. This offer also provides an opportunity to pilot the utilization of third party financing options. How it Will Work: Biogas generated from the wastewater treatment process through anaerobic digestion can be fed to a cogeneration system to generate energy and waste heat. Generated electricity would be used on-site, potentially reducing the facility’s electrical consumption by approximately 22%. Waste heat generated would be recovered from the system and could be used to offset fuel used for boilers and process systems. In addition recovered heat could be chilled and used for facility cooling which would further reduce our energy consumption and costs. Expected Outcomes: This project has been estimated by a third party consultant with a conservative 15 year payback through reduced electrical and natural gas costs. According to the EPA GHG equivalence tables, the estimated annual savings from this project of 2100 metric tons of carbon is equivalent to offsetting the GHG emissions of 300 City of Fort Collins households. If implemented in 2015, this project would move the reduction dial for GHG emissions from 11.5% to 15% for all City municipal operations. It will also move the reduction dial for the City’s operational electricity usage from 7% to 13% on the path towards the 20% reduction by 2020. Financially, when implemented, this project will reduce the overall City’s municipal operational electricity costs by 5%. This project is aligned with 2014-2015 BFO Pkg. Offer 174.1 and could access funds from this to help minimize financial impact. 503 - WASTEWATER FUND Environmental Health 503 - Wastewater - Reserves Page 17 Revision Title: Outcome: Contact: Josh Birks Expense Fund: Package/Offer #: None Funding Source #1: Funding Amount #1: $75,000 Funding Source #2: Funding Amount #2: $50,000 Funding Source #3: Funding Amount #3: $25,000 Total Amount: $150,000 Ongoing: $0 One-time: $150,000 FTE Requested: None Total Amount: $150,000 Description: Waste Water This offer is among four offers responding to City Council and City Manager requests for Climate Action Plan (CAP) implementation strategies. The purpose of these interdepartmental offers is to develop or expand City programs and projects that will aid or directly affect the reduction of the community’s greenhouse gas emissions. Purpose of Offer & Why: The primary focus of this offer is to engage external expertise on developing innovative mechanisms for public and private programs and projects, including but not limited to, public private partnerships (PPP) to achieve carbon reduction within Fort Collins. A major aspect of achieving CAP objectives is developing effective programs to support the capital investment required by the public and private sector. Many of these programs and the associated funding sources will be consumer oriented and come from the private market. However, a number of regulatory, policy, and market barriers exist to achieving the Climate Action Plan objectives. These barriers must be eliminated and/or reduced to develop effective programs for the City, its residents and its business. Of particular interest are PPPs, where both City and private sector resources can be leveraged to varying degrees. Staff will also be seeking outside funding sources and partners (e.g., Clinton Global Initiative, etc.) to pair with these requested funds enabling additional work and thus a more detailed financing framework. Light & Power 2016 BUDGET REVISION REQUEST Climate Action Plan: Business Planning for Strategic Initiatives and Public- Private Partnership Environmental Health 100 - GENERAL FUND General Fund Page 18 Performance Measure: ENV 9. Percent decrease in community Greenhouse Gas (GHG) emissions from 2005 baseline https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=6282& object=measure&objectID=91345 Expected Outcomes: The anticipated outcome(s) of this offer include: • Identification of, and if possible, solutions for any barriers to existing and new programs • A report of the potential financing tools to leverage for both public sector and private sector initiatives or projects • A matrix comparing potential programs and tools to the four key CAP outcome areas (Buildings, Transportation, Energy Supply and Waste Reduction) • If possible an estimate of the funding capacity and approval criteria associated with the programs and tools • Assistance developing business plans, marketing plans, and operational plans for existing and proposed City projects. Together these deliverables will become an innovative program and funding framework to accompany the CAP implementation framework. How It Will Work: • These funds will be used to obtain external expertise to aid in the evaluation, development and implementation of innovative programs and the associated funding sources. It is anticipated that the contractor(s) or consultant(s) will have experience developing similar programs elsewhere in the Country. • In addition, the funds will be used to support internal/external education and outreach regarding potential programs, identifying and minimizing regulatory or policy barriers to carbon reduction, facilitating connections with existing and/or new capital markets, attracting and fostering private sector investment, optimizing the City’s role in PPPs, and consultation on any immediate demonstration projects. • The funds will be used to further expand the list of other programs and associated funding sources that are either public or private only in nature. • Finally, the funds will be used to seek external expertise in the development of business plans, marketing plans, and operational plans for proposed projects funded with general fund or utility dollars. • The City’s Innovative Finance CAP Implementation Team (Team) will develop evaluation criteria and processes for use of internal funding mechanisms (i.e., use of General Fund or Utilities dollars). The outside expertise obtained by this budget request may provide input to those criteria and processes at the discretion of the Team. Page 19 Revision Title: John Phelan Outcome: Contacts: Tom Leeson Lucinda Smith Expense Fund: 501 - LIGHT & POWER FUND Package/Offer #: None Funding Source #1: Funding Amount #1: $67,000 Funding Source #2: Funding Amount #2: $67,000 Total Amount: $134,000 Ongoing: $74,000 One-time: $60,000 Total Amount: $134,000 FTE Requested: 1.0 FTE - Description: Contractual This offer is among four offers responding to City Council and City Manager requests for Climate Action Plan (CAP) implementation strategies. The purpose of these interdepartmental offers is to develop or expand City programs and projects that will aid or directly affect the reduction of the community’s greenhouse gas emissions. Purpose of Offer and Why Fort Collins has a strong history adopting current model building codes and has added local amendments specifically targeting energy performance and green building. While the prescriptive requirements are appropriate, the expected performance is not always achieved in practice, for a variety of reasons. Closing the gap between what the code requires and what is designed and built is critically important for utility planning and attaining community goals. The purpose of this offer is to provide resources to verify expected performance levels are achieved as the Fort Collins building code is implemented. The offer will provide resources targeting energy code and related building performance compliance at several stages: • Education (web resources, education and training); • Permit application review (plans and related submittals); • Verification of field testing and inspection requirements prior to final approval. How It Will Work Building energy performance is critical to the goals of the Climate Action Plan Framework, Energy Policy and Green Built Environment initiative. Recent editions of the model codes have increasingly incorporated building science principles; local amendments have strengthened those changes. This is positive but – with increasingly technical requirements and advanced technologies – the code has become more challenging to enforce. 501 - LIGHT & POWER FUND 2016 BUDGET REVISION REQUEST Climate Action Plan: Energy Code Performance Program 100 - GENERAL FUND Environmental Health 100 - GENERAL FUND Page 20 Background charts on construction activity trend https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=6290& object=measure&objectID=91396 This offer would help to plug the gap by providing additional expertise and related resources. Expert staff would be added and given separate signoff authority for more technical energy- and building performance-related aspects of permit applications and final approvals. This approach is analogous to existing development and building code processes for stormwater, fire safety and water-conserving landscape requirements. Expected Outcomes • Verification of expected performance levels as the Fort Collins building code is implemented. Assuming an overall 5% improvement in building energy performance of new construction (at 2014 levels), this offer would support a reduction of over 700 metric tons of CO2 annually. This would support reaching 45% of the 2020 reduction estimate for new construction in the CAP Framework Plan. • Updating of City information resources with current information regarding code requirements related to energy and building performance; • Education and training of internal and external stakeholders regarding energy and building performance aspects of the codes; • Maintaining and formalizing the credentialing program for residential mechanical systems design and testing. Performance Measure: ENV 23: Annual energy efficiency and conservation program savings of greater than or equal to 1.5% of community electricity use Page 21 Revision Title: Outcome: Contact: Wendy Bricher, Lucinda Smith Expense Fund: Package/Offer #: None Funding Source: Ongoing: $0 One-time: $125,000 FTE Requested: None TOTAL Amount: $125,000 Description: This request is among four offers responding to City Council and City Manager requests for Climate Action Plan (CAP) implementation strategies. The purpose of these offers is to develop or expand City programs that will aid in or directly affect the reduction of the community’s greenhouse gas emissions. Purpose of Offer & Why: • Successful community engagement and clear expansion of financing opportunities including how they align with our community have long been recognized as keys to meeting the goals of the 2015 CAP Framework. • This offer will develop a Climate Action Engagement Plan, pilot test it, and begin full implementation. How it Will Work: The offer will provide four elements of deliverables: 1) A one-stop, easily accessible web interface to: • keep citizens, stakeholders, and City Council informed of CAP progress and ways to get involved • feature a progress-tracking dashboard • feature the latest news on CAP implementation and engagement programs and strategies. 2) Community Engagement Plan will be developed through discussions with key segments of the community to identify opportunities for engagement and address barriers to engagement, including: • City staff, • the Fort Collins business community, with special emphasis on key accounts and those already involved in City and Utility conservation programs, and • those challenged by issues such as socioeconomic inequities, housing affordability, disabilities and age. 2016 BUDGET REVISION REQUEST Climate Action Plan: Communication and Engagement Platform Design & Implementation Environmental Health 100 - GENERAL FUND General Fund - Reserves Page 22 Performance Measure: ENV 9: Percent decrease in Community GHG emissions from 2005 baseline. https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID= 6282&object=measure&objectID=91345 Expected Outcomes: • Easy to understand web platform for community and Council to keep track of progress and link to opportunities to get involved in reducing emissions • City staff can serve as informed ambassadors to advance CAP implementation • Increased engagement in City programs that reduce GHG emissions through overcoming misperceptions and addressing values barriers • Improved equity in access to programs • Reduction of barriers to engagement faced by underserved or disadvantages segments of our community • Increased awareness of and engagement in business opportunities that support GHG reduction • Reduction of misconceptions around costs for CAP implementation • Increased understanding of need and political support for policy and regulatory actions 3) Pilot test Plan with City employees as proxy for a broader community by: • testing CAP messaging that addresses: o What is the CAP o Why Fort Collins is taking on these aspirational CAP goals o Why Fort Collins is the best place to succeed o What each individual can do at work and home to help achieve CAP goals? • helping employees understand how to effectively articulate the CAP's ambitious goals to others • helping employees understand how their daily work tasks, projects and programs are positioned to help succeed in reaching these goals; • communicate what employees can expect as an employee and a resident as we move the CAP goals forward; • understand the interrelatedness of City’s programs, projects and policies with CAP goals. 4) Begin implementing the Plan in neighborhoods, with the business community, and with Page 23 Revision Title: Outcome: Contact: Kelly DiMartino Expense Fund: Package/Offer #: None Funding Source #1: Funding Source #2: 2016 Cost: 2017 and future year costs: Funding Amount #1: $113,957 Funding Amount #1: $120,945 Funding Amount #2: $28,319 Funding Amount #2: $30,055 Total Amount: $142,276 Total Amount: $151,000 Ongoing: $121,276 Ongoing: $151,000 One-time: $21,000 One-time: $0 Total Amount: $142,276 Total Amount: $151,000 FTE Requested: 1.0 FTE - Description: Performance Measure: HPG 38. HR performance based on Internal Services survey https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=6284&obje ct=measure&objectID=91358 Chief Human Resources Officer Benefits Fund 2016 BUDGET REVISION REQUEST Chief Human Resources Officer Position 100 - GENERAL FUND High Performing Government General Fund The City is a service-delivery organization, and as such, managing our human capital is critical to our overall success. Traditionally, Human Resource Directors have been responsible for the administration of Human Resources (HR) functions. In recent years, organizations have found the need for HR leaders to evolve into more of a strategic influencer role. The City of Fort Collins is no exception. Currently one of the Assistant City Managers (ACM) is serving in a duel capacity as ACM and acting Chief Human Resources Officer (CHRO). There is no HR Director. Rather, those responsibilities are shared between the acting CHRO and an Assistant HR Director. This model does not provide adequate resource and attention to carry out key HR leadership functions, including: - Serving as strategic advisor that provides human capital information to help the City achieve its strategic objectives and counsels executive leaders on talent management strategies - Developing and executing strategic direction for succession planning, talent management, change management, organizational and performance management, training and development, compensation and benefits. - Providing leadership to ensure that all major HR systems and programs are run efficiently and effectively, and that plans and policies remain in compliance with ever-changing federal, state and local laws. This position has been identified as a high priority by the Executive Lead Team, as well as Human Resources and City staff. This offer provides funding to hire this critical position, as well as one-time resources for an executive recruiter to assist in finding a highly qualified candidate. This Offer assumes a start date of April 1, 2016. Starting in 2017, ongoing costs for Salary and Benefits will start at approximately $151,000 rather than $113,276. Page 24 Revision Title: Outcome: Contact: Jamie Heckman Expense Fund: Package/Offer #: None Funding Source: Ongoing: $0 One-time: $275,000 FTE Requested: None TOTAL Amount: $275,000 Description: Per Objective 7.2 of the City Strategic Plan, the City is working to improve core Human Resource Systems and develop a total rewards strategy which articulates the value proposition of employment with the City. The Total Rewards vision is that every employee perceives the City as a great place to work and to be known as the employer of choice to attract, retain, engage, develop and reward employees. Employee attraction and retention is critical in order to deliver quality services to the community. City turnover is being watched carefully as experts predict rates to climb as high as 23%. The increase is attributed to confidence in the economy and an uptick in Baby Boomer retirements. Approx. 16% of City employees are 60+ years old; average retirement age is 64 yrs. 2014 annual turnover of 9.2% exceeded the 8% target and surpassed trend for previous reporting years (2011-2013) which ranged from 5.0 to 6.7%. Total turnover from 2013 to 2014 increased by 56% (75 in 2013; 117 in 2014). Resignations increased from 40 in 2013 to 72 in 2014, an 80% jump. Exit survey data indicates much of this is a reflection more job and career mobility options. 2016 BUDGET REVISION REQUEST Total Rewards Strategy: Career Architecture and Pay Structure High Performing Government 100 - GENERAL FUND General Fund - Reserves Career Architecture - This is well-defined and cross-organizationally related jobs with a set of guidelines that show employees how they can move into and across jobs. The career framework is highly responsive to an organization’s needs and supports overall employee career development and progression readiness. Performance Management Process - The City is transitioning to a quarterly performance management process that provides timely and meaningful feedback while at the same time decreases the overall amount of effort required on the part of employees and managers. This should be completed in September 2015. In 2014, the City completed a Compensation & Career Progression Study which identified a need to make significant adjustments to the City’s compensation, job analysis and career progression systems, as well as the performance management process. This offer seeks to continue the multi- year project in partnership with a consultant who will: - Design Career Architecture - Build Job Leveling Guides - Market Analysis and Pricing -Design Base Pay Program - Design Incentive Pay Program Page 25 Performance Measure: HPG 6. City Employee Cumulative Turnover Rate https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=6284 &object=measure&objectID=91357 Compensation Target Market - Once the career architecture is in place, each role will be benchmarked to a target market rate. Currently the organization has more than 400 individual job descriptions. An assessment performed in 2014 indicated an extremely low benchmark match rate to market surveys. An updated approach is required to ensure accountability and good stewardship of community resources, and to restore organizational credibility regarding the market-based pay system. Career Management - Career Management is an important element of the Total Rewards Strategy. Recognizing that traditional career “ladders” with step-by-step progression don’t work in most organizations today, the City would like to create more dynamic career paths that allow flexibility for employees to choose how they want to focus their career, while at the same time providing concrete guidance for employees on how they can develop in a path. The career paths would align to different types of future leadership roles within the City, and would also include a path for those who want to increase their skills and contribution as an individual contributor. Implementation Approach - The Career Architecture and Compensation Target Market sub-projects are interrelated and therefore should be addressed concurrently. It is anticipated that these will take two years to complete organization-wide; this Offer would fund the first half of those sub- projects. Page 26 Revision Title: Outcome: Contact: Steve Engemoen & Jamie Heckman Expense Fund: Package/Offer #: None Funding Source: Funding Amount: Total Amount: $2,700,000 FTE Requested: None Description: Please see attached Memo 2016 BUDGET REVISION REQUEST Cost Adjustments to the Benefits Fund (Benefits cost) 604 - BENEFITS FUND High Performing Government Various Page 27 2016 Budget Revision Offer Benefits Fund Unanticipated Expenditures This Budget Revision Offer requires citywide adjustments to various funds in order to address a significant shortfall in the City’s self-insured Benefits Fund which has accumulated over the past few years due to increasingly high medical claims and the addition of approximately 240 employees to our medical plan as a result of the Affordable Care Act (ACA). The budget request is for a total of $5.4M broken into two $2.7M offers; the first offer reflects adjustments to the Benefits Fund, and the second reflects the adjustments to departmental budgets to cover increased charges. Cost Adjustment to the Benefits Fund (Benefits Cost) = $2.7M The City’s Benefit Consultant (Hays Consulting) completed a Benefit Fund actuarial analysis for the first 6 months of 2015. As a result of the analysis, an additional appropriation, totaling $2.7 million, is necessary to cover projected 2016 expenditures in the Benefits Fund. The additional claims expense is driven by: 1. 2014 claims greater than budget of $1.8M. The additional costs in 2014 required a supplemental appropriation in 2014 to cover these expenses; however, the 2015 and 2016 budget does not reflect the higher claims experienced in 2014. Reference Chart A. 2. Benefit costs are increasing greater than anticipated driven by both additional staff covered by the Affordable Health Care Act in 2015/16 and claims cost continuing to grow at a greater rate than forecasted. Reference Chart A. 3. The Benefits Fund had reserves greater than needed in 2012. Prior budgets have intentionally been created utilizing a portion of the benefits fund in an effort to draw down the Benefits Fund to a level required per policy (minimum fund balance of $5.3M is required at year end 2014). With the rising claims cost, the Benefits Fund has been reduced faster than anticipated and can no longer subsidize future benefits cost. Reference Chart B. Chart A: $21.9 $23.7 $24.4 $26.3 $25.3 $28.0 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2014 2015 2016 Expenses (millions) Year BudgetExpenses Benefit Fund Actual/Forecast $1.8 $1.9 $2.7 Page 28 Chart B: Appropriations in Various City Funds for Employer-Paid Premiums (cost to Departments) to Cover Unanticipated Benefits Fund Costs = $2.7M Funds to pay benefit claims from the Benefits Fund come from departmental charges for the City portion and staff payroll deductions for the staff portion of benefit costs. This creates another offer for $2.7M that provides funds to cover the departmental premiums for the employees covered by ACA, as well as funds to cover overall departmental premium increases, which will be paid to the Benefits Fund. Historically the City has provided multiple plan options for staff to choose from. The City is taking action to address increasing medical trends by consolidating to a single medical plan, eliminating the lower cost plan because it does not generate enough premium revenue to support the value of the plan being offered. Additionally, the City will adjust both employer and employee-paid premiums. The City targets a medical and dental premium sharing of City costs and employee costs of 70%/30% for employees with dependents or a spouse and 85%/15% for employee only. Consolidating to a single plan will cause a roughly 30% premium cost increase to approximately 500 employees, a 10% increase to approximately 600 employees, a 0% increase to roughly 450 employees and an 11% increase to the City departmental charges for the City’s portion of benefits costs. The proposed budget reflects a 71.5%/28.5% sharing of premium cost for employees with dependents and an 83%/13% sharing of premium costs for employee only. Because of the significant percent increase to a large group of employees, staff proposes to phase into the 70%/30% premium share target over two years. 0.000 2.000 4.000 6.000 8.000 10.000 12.000 14.000 2012 2013 2014 2015 2016 Fund Balance (millions) Year Fund Balance Planned Actual/Forecast Page 29 The City also monitors the Total Benefits cost sharing relationship. Historically the City’s share of total benefit costs has ranged from 70.4% to 74% and the staff share of total benefit costs has ranged from 26% to 29.6%. The shared costs vary each year because the employee share is largely fixed based on premiums set for the year and charged to staff while the City portion varies based on the actual claims experience. When actual claims come in under projections, the City share declines and when claims come in over projects the City’s share increases. This 2016 Budget Offer anticipates the City and staff share of total benefit costs to be 72.5% and 27.5% respectively. Chart C provides historical detail on the staff share of total benefit costs. A 1% change in total cost sharing equals approximately $235k. Chart C: Page 30 Revision Title: Outcome: Contact: Steve Engemoen & Jamie Heckman Fund: Package/Offer #: None Funding Source: Funding Amount: $2,720,789 Total Amount: $2,720,789 FTE Requested: None Description: Please see attached Memo 2016 BUDGET REVISION REQUEST Cost Adjustments to the Benefits Fund (cost to Departments) 604 - BENEFITS FUND High Performing Government Various Page 31 2016 Budget Revision Offer Department Charges – Medical Premiums As outlined, medical premium adjustments are needed to cover increasing Benefits costs. Request for Appropriations in Various City Funds for Employer-Paid Premiums to Cover Unanticipated Benefits Fund Costs = $2,720,789 The City is taking action to address increasing medical trends by consolidating to a single medical plan, and adjusting both employer-paid and employee premiums. This Budget Revision Request presumes the following plan changes: - Consolidate to a single PPO plan - Employer share of premiums increase by 8% - Employee contributions increase between 0-31%, depending on the coverage elected The budgeted annual employer-paid premium for full-time employees is $9,300. The recommended annual employer-paid premium is $9,930. The cost associated with the recommended change for Classified and Unclassified employees totals $862,949, and is spread across all City funds in which employees are budgeted. See Fund Detail for the recommended appropriation by fund. Page 32 Fund Detail Fund Total Appropriation by Fund 100 - GENERAL FUND $1,033,806 254 - KEEP FORT COLLINS GREAT FUND $171,265 270 - NEIGHBORHOOD PARKLAND FUND $2,331 271 - CONSERVATION TRUST FUND $1,229 272 - NATURAL AREAS FUND $180,318 273 - CULTURAL SERVICES & FACILITIES $32,302 274 - RECREATION FUND $82,472 275 - CEMETERIES FUND $23,577 277 - MUSEUM FUND $12,566 280 - COMMUNITY DEVELOPMENT BLOCK GR $3,929 290 - TRANSIT SERVICES FUND $89,084 291 - STREET OVERSIZING FUND $945 292 - TRANSPORTATION SERVICES FUND $208,117 294 - PARKING FUND $10,279 400 - CAPITAL PROJECTS FUND $315 500 - GOLF FUND $117,294 501 - LIGHT & POWER FUND $226,568 502 - WATER FUND $113,481 503 - WASTEWATER FUND $44,920 504 - STORMWATER FUND $64,597 601 - EQUIPMENT FUND $32,988 602 - SELF INSURANCE FUND $14,340 603 - DATA AND COMMUNICATIONS FUND $107,884 604 - BENEFITS FUND $9,296 605 - UTILITY CUSTOMER SRV & ADM $136,886 $2,720,789 Page 33 Revision Title: Outcome: Contact: Delynn Coldiron Expense Fund: Package/Offer #: 77.1 Funding Source: Ongoing: $0 One-time: $67,000 FTE Requested: None TOTAL Amount: $67,000 Description: Performance Measure: CNL 64. % of citizens responding very good/good - Your neighborhood as a place to live https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=7718& object=measure&objectID=109864 2016 BUDGET REVISION REQUEST Neighborhood Services Strategic Plan and Implementation of Neighborhood District 100 - GENERAL FUND Community & Neighborhood Livability General Fund - Reserves A person’s place of residence is a fundamental contributor to a person’s well-being. Communities that work to create a unique sense of place, foster strong social relationships, care about and treat residents fairly, and share decision-making and collaborate with residents on the items of importance to them, are highly effective in creating cities that people love. As our community transitions due to pace and density of development, growth in population, changing demographics, increased student enrollment and campus growth, and social pressures, it is imperative that the City find ways to successfully navigate related challenges. In an effort to respond to direction given from the City Manager's office to implement a best-practice neighborhood districts/associations model, as well as to support the City's Strategic Objectives related to Community and Neighborhood Livability, this offer funds efforts that will result in a city- wide 5-year Strategic Plan for city neighborhoods that will focus on fostering positive and respectful neighbor relationships, open communication, conflict resolution, and on maintaining and enhancing attractive neighborhoods through city services. Individual components of this effort will include: 1) A city-wide community engagement study to identify how community members currently engage with the City and to define any gaps that exist in how citizens would prefer to engage or in under- served or under-represented populations that do not or minimally engage (best practice identified as part of our travel and research done for the neighborhood districts project); 2) A review of the existing Neighborhood Services division to explore current programs and services delivered and to identify areas of change and/or improvement needed; 3) Definition of and implementation strategies for a best-practice neighborhood districts model; and 4) A work plan and action steps for moving forward to accomplish the goals identified through these efforts. Page 34 Revision Title: Outcome: Contact: Lindsay Ex Expense Fund: Package/Offer #: None Funding Source: Ongoing: $78,089 One-time: $0 TOTAL Amount: $78,089 FTE Requested: 1.0 FTE - Description: To successfully implement the Nature in the City Strategic Plan, this offer requests a contractual Environmental Planner position. In concert with the Planning Department’s Senior Environmental Planner, this position will be responsible for leading the implementation of the 49 action items outlined in the Plan and for developing a strategy and initial implementation of the $3 million approved by the voters in 2014 entitled “Nature in the City Implementation.” Background: In 2015, Council adopted the Nature in the City Strategic Plan, which has a vision of a connected open space network accessible to the entire community that provides a variety of experiences and functional habitat for people, plants, and wildlife. The Plan contains 49 action items, all of which require a collaborative, interdisciplinary coordination to implement. In addition, the voters approved $3 million in the 2014 ballot to implement Nature in the City over the next ten years, but this funding can not be used for staff. An anticipated 1.0 FTE was identified in the Implementation section of the plan as nessecary to implement many of the action items. Currently, only one Environmental Planning position exists in the Planning Department. The majority of this position’s workload is focused on development review, as these workloads are currently at unprecedented levels. To successfully implement the vision and policies outlined in the Plan, additional staffing is needed. 2016 BUDGET REVISION REQUEST Nature in the City Implementation 100 - GENERAL FUND Neighborhood Livability General Fund Contractual Environmental Planner Page 35 The contractual Environmental Planner position and the Senior Environmental Planner will achieve the following outcomes: • Initiating the implementation of the $3 million in capital funds to begin acquisition and restoration of properties throughout the City; • Furthering the public/private partnerships outlined in the Plan, e.g., Poudre and Thompson School Districts, the business sector, Homeowner Associations, etc. • Working with the interdisciplinary staff team and Colorado State University to begin implementation of the 49 action items outlined in the Plan, including updates to the Land Use Code, installing pilot Nature in the City demonstration projects, completing the connectivity analysis for people and wildlife, etc. • With our partners within the City and at CSU, the Audubon Society, Rocky Mountain Bird Observatory, and others, we will seek outside funding to leverage City dollars. Performance Measure: CNL 40. Percentage of the City that has access to nature within a 10 minute walk. NOTE: The 10 minute walk analysis is currently being reviewed by staff and a baseline assessment for this metric will be completed by Q4. A key driver for this contractual position is to assess and track this metric throughout the implementation of the 1/4 cent sales tax funding. Page 36 Revision Title: Outcome: Contact: Beth Sowder Expense Fund: Package/Offer #: 48.7 Funding Source: Ongoing: $0 One-time: $80,000 FTE Requested: None TOTAL Amount: $80,000 Description: 2016 BUDGET REVISION REQUEST Homelessness Initiative - Street Outreach Pilot Program 254 - KEEP FORT COLLINS GREAT FUND Community & Neighborhood Livability KFCG - Other Community Priorities Reserves As we continue to work with Homeward 2020 and other community service agencies , we recognize the need for collaborative and innovative programs to address ongoing homeless issues. Purpose of Offer & Why: • Pilot program for a collaborative Street Outreach Program. • Specific partners include: Fort Collins Police Services and Social Sustainability Department, Downtown Development Authority, Homeward 2020, Homeless Gear, Catholic Charities, and SummitStone Mental Health Partners. • Best practice model identified as a priority strategy by Homeward 2020. • Part of a multi-pronged approach to provide services to those in need while effectively decreasing the issues and concerns in downtown business areas. How It Will Work: • City funding would provide "seed money" to get the program up and running as a pilot. If successful, the City would be a partner - not sole funder - of this program. Funding from the other partners, through stakeholder contributions and fundraising, would be expected for ongoing operation. • Homeward 2020 would conduct a selection process to identify the administrator of the program. • Funding would cover two full-time administrators who would oversee volunteers and coordinate with the partners (employed by administrator, not the City). • The Outreach Team would be available 7 days per week, and would proactively go out to areas where people experiencing homelessness spend time (especially downtown) and respond to calls from businesses or citizens, saving Police resources for criminal issues. Page 37 Performance Measures: SAFE 31. % of citizens responding always safe/usually safe - Downtown Fort Collins during the day SAFE 32. % of citizens responding always safe/usually safe - Downtown Fort Collins at night • The Team would provide a range of services to people with a focus on assisting persons with psychiatric disabilities, individuals dealing with substance abuse, homelessness, and other unmet social service needs including assessment, support, and active referral. Expected Outcomes: • Staff and partners are planning to use the best practices from the Burlington, VT model and modify them to meet the specific needs in Fort Collins. • Specific data/outcomes seen in Burlington and expected in Fort Collins include: o Decrease in calls for service to Police o Decrease in call frequency for high-use individuals o Decrease in new charges for top users o "Cost-avoidance" benefits (less Police calls for services, emergency room visits, and jail visits) o Positive impact on other systems like court and corrections o Greater coordination and efficiency Additionally, the program directly supports: reducing anxiety of merchants, increasing communication, connecting people with services, building relationships, and monitoring status of services (how many beds available at the shelters, etc.), The ultimate vision of the Outreach Program is: 1. A proactive, solution-oriented and collaborative approach to reduce incidents in downtown by referring people to available and appropriate services 2. A safe downtown for everyone 3. Health and welfare of individuals and community https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=7718&o bject=measure&objectID=109954 https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=7718&o bject=measure&objectID=109955 Page 38 Revision Title: Outcome: Contact: Dawna Gorkowski Expense Fund: Package/Offer #: 98.1 and 100.1 Funding Source: Ongoing: $110,000 One-time: $0 TOTAL Amount: $110,000 FTE Requested: None Description: Performance Measure: CR 23 - Trained Observe Program – Parks, Trails and Recreations Facility Grounds The Parks Division hourly staff is a necessity for maintaining the City's parks, trails, facilities and downtown core area. Hourly staff contributes approximately 110,000 hours per year in labor or 58% of total hours worked for the Parks Division. The starting wage for a Parks hourly worker is $9.00 per hour. During 2015 the number of applicants and quality workers applying for positions has diminished significantly. There has been a 54% decrease in applicants, the number of failed drug tests has increased from 5 failed tests so far in 2015 compared to 6 failures over the previous two years. The number of hourly employees returning has decreased by 31% in 2015. Hourly employees are leaving Parks for full time positions with other City departments, PSD, and private businesses. The wage rate Parks is able to pay is not keeping up with other departments within the City or the business community. Natural Areas Maintenance Worker has a starting wage of $11.00/hour and Utility Grounds Worker has a starting wage of $9.50/ hour. Walmart's starting wage is now $10.00/hour, McDonald's average wage is over $10.00/hour and Costco's average wage is $20.00/hour. With all the new retail businesses and the new mall being completed later in 2015, the competition for hourly employees will only increase. This offer requests additional funding to raise the starting wage within the Parks Division to $10.00/hour in order to attract and retain quality hourly staff. https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=6286&o bject=measure&objectID=91332 2016 BUDGET REVISION REQUEST Parks Division Competitive Hourly Wages 100 - GENERAL FUND Culture & Recreation General Fund Page 39 Revision Title: Outcome: Contact: Dawna Gorkowski Expense Fund: Package/Offer #: 98.1 Funding Source: Ongoing: $0 One-time: $208,000 TOTAL Amount: $208,000 FTE Requested: None Description: Performance Measure: CR 23 - Trained Observe Program – Parks, Trails and Recreations Facility Grounds Spring Canyon playground, Fort Collins' premier play space, was built in 2007. Part of what makes this playground so unique is the accessible poured-in-place surfacing throughout the playground. In a typical playground, poured-in-place surfacing has a life span of approximately 10 years. However, with Spring Canyon being our most popular playground in the city, the surfacing is reaching the end of its life span much earlier than expected. The high use has accelerated the wear of the surfacing causing cracks and holes to form in the surfacing. The areas where the cracks and holes have formed are subject to an increase in the amount of vandalism to the surfacing itself. This unforeseen wear and vandalism are currently affecting proper and safe impact attenuation of the surfacing. Parks has patched the worn and vandalized spots in many places, but this is causing inconsistencies in the surfacing which also contributes to a decline in the impact attentuation. The wet weather this spring along with some localized flooding in the area has also caused some of the subsurface to move and wash away contributing to a decline in the impact attenuation in some areas. Proper impact attenuation is important in preventing serious head injuries in playgrounds. This request is for funding to remove and replace existing sub-base where necessary and complete removal and replacement of the poured-in- place surfacing in both play areas. Funding for the Parks lifecycle program has not increased for new park development since Fossil Creek Community Park was opened in 2003. The current lifecycle budget cannot absorb a project of this magnitude because current funding is needed to address deficiencies in older parks. https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=6286&ob ject=measure&objectID=91332 2016 BUDGET REVISION REQUEST Spring Canyon Playground Surfacing Replacement 100 - GENERAL FUND Culture & Recreation KFCG - Parks and Recreation Reserves Page 40 Revision Title: Outcome: Contact: Dawna Gorkowski Expense Fund: Package/Offer #: 76.1 Funding Source: Ongoing: $0 One-time: $30,000 TOTAL Amount: $30,000 FTE Requested: None Description: Performance Measure: CR. 20 Collindale Golf Course 18 – Hole Rounds This offer requests the use of an unanticipated increase in reserves in the Golf Fund at the end of 2014 to be used to upgrade the Collindale irrigation control software system. The new system will save 6 to 8 million gallons of water per year, save wear and tear on pumps, reduce electricity costs and increase control over the irrigation system. https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=6286& object=measure&objectID=120191 2016 BUDGET REVISION REQUEST Collindale Golf Course Irrigation Control Software Upgrade 500 - GOLF FUND Culture & Recreation Golf Fund Reserves Page 41 Revision Title: Outcome: Contact: M Beckstead Expense Fund: Package/Offer #: None Funding Source: Ongoing: $0 One-time: $900,000 FTE Requested: None TOTAL Amount: $900,000 Description: A Public/Private partnership with the Bohemian Foundation is planned to support a new parking structure adjacent to the planned downtown hotel. The parking structure is anticipated to be three stories in height and include approximately 320 parking spaces. The project will be reviewed with the Council Finance Committee in September and the entire Council later this year after a full review by the Planning and Zoning Board. It is anticipated the Bohemian Foundation will build the parking structure in 2016 and after construction is complete, the City will purchase approximately 2/3 of the spaces for public use while the hotel partners will own the remaining 1/3 of the spaces. A condo type ownership structure is anticipated with shared costs based on ownership percentages for the operations and maintenance of the garage. It is anticipated the City will need to borrow approximately $7.5M to $8.0M for the property purchase of 2/3 of the parking spaces. Staff is evaluating the risks and tradeoffs of borrowing in late 2015 to avoid a rise in interest rates anticipated in late 2015 and 2016 even though the purchase is not anticipated until late 2016. In the event the bond is issued in 2015, staff requests funding for the annual debt service on a 10 year bond of approximately $900k. Funding is considered one-time because long term funding starting in 2019 is anticipated with 1) the payoff of current debt for the Civic Center Parking garage in 2018 freeing up $1.1M of General Fund debt service capacity that can be used to fund this debt in 2019. Staff is also working on an agreement with the DDA to provide $275K a year in debt service support starting in 2019 that is also tied to the payoff of the Civic Center Parking Structure debt. 2016 BUDGET REVISION REQUEST 100 - GENERAL FUND General Fund - One Time Downtown Parking Structure - Debt Service Economic Health Page 42 Revision Title: Outcome: Contact: Kelly Bernish Expense Fund: Package/Offer #: None Funding Source: Ongoing: 0 One-time: $600,000 TOTAL Amount: $600,000 FTE Requested: None Description: 2016 BUDGET REVISION REQUEST Increase to Claims Settlement Account within the Self Insurance Fund During 2015, we experienced higher than anticipated payouts on claims incurred over this and previous years that resulted in payment of substantial legal fees and claims settlements. The Colorado Oil & Gas (COGA) case at $184,000, ACLU Case at $134,000, a recent citizen settlement of $113,000, the deductible on two trucks, and several high dollar workers compensation cases from previous years paid in 2014 and 2015 are examples. The budgeted amount of $1,275,000 in 2016, based upon our experience in 2015 and previous years, will not be adequate to cover 2016 losses and all claim payments incurred in 2016 regardless of their year of occurrence. The projection is based upon a review of 5 years plus current year to date claims information as well as external actuarial reports. As an internal services department, revenue in the form of department allocations, is not adequate to cover claim payments which will be addressed in the next budget cycle. In 2014, a supplemental appropriation late in the year of $610,000 was required and it is anticipated a similar supplemental appropriation may be required in 2015. Historically, additional appropriations for claims has been supported by available fund balance within the Self Insurance Fund. An increase in the actuarial liability performed by Milliman of $750,000 due to higher claims in previous years’ experience, the prior year supplemental appropriation and the additional legal and claims settlements over the past several years has reduced the Risk fund to the point that there is no longer available fund balance to support the higher claims we are experiencing. In the 2013 and 2014 budget, funding from the General Fund to the Self Insurance Fund was reduced by $500,000 given the fund balance available within the Self Insurance Fund. Given the recent high level of claims payments, the funding from the General Fund needs to be restored. It is anticipated the inter-department rates will be adjusted to generate enough revenue to maintain the Self Insurance Fund. 100 - GENERAL FUND Economic Health General Fund - Reserves Page 43 Revision Title: Outcome: Contact: Dan Coldiron Expense Fund: Package/Offer #: 9.1 Funding Source: Ongoing: $60,000 One-time: $40,000 TOTAL Amount: $100,000 FTE Requested: None Description: The expectations for expanded transparency and improved access to data for the public necessitates that the City improve its online offerings. In addition, there has been significant maturation in the technology available to meet the increasing demands for transparency and data access, which has also resulted in growing expectations for the City's data to be available through a variety of means, devices and formats, internally as well as externally. This request would provide the City with the opportunity to implement the first phase of an Open Data Portal that could be expanded to meet the full expectations and needs of the community. The software subscription/licensing costs are estimated to be approximately $60,000 per year for an Open Data Portal platform. An additional $40,000 is requested to facilitate the implementation of the portal platform, which would include consulting services to train and assist staff in the process of configuration of the portal and initial data preparation and loading. The implementation of the first phase of an Open Data Portal platform is expected to be accomplished with existing staff and would target data sets that have already been prepared and developed for sharing with the public, such as the data used within the City's OpenBook environment. Development of the platform to share a large number of data sets from across the organization and to fully exploit the advanced features and modules available in robust open data platforms will likely require further licensing and maintenance costs and possibly additional staff resources. 2016 BUDGET REVISION REQUEST IT Open Data Portal - First Phase Implementation 100 - GENERAL FUND High Performing Government Data and Communications Page 44 Revision Title: Outcome: Contact: Rita Knoll Expense Fund: Package/Offer #: 116.3 Funding Source: Ongoing: $68,917 One-time: $5,700 TOTAL Amount: $74,617 FTE Requested: 1.0 FTE - Contractual Licensing Coordinator Description: 2016 BUDGET REVISION REQUEST City Clerk Licensing Coordinator This position is requested to adequately resource medical/retail marijuana licensing functions, and to supplement resources currently devoted to liquor licensing. Medical marijuana licensing was added to the duties of the Chief Deputy City Clerk in 2010. Retail marijuana licensing was added in 2014. Both are extremely time consuming, and have severely impacted the essential duties of the Chief Deputy. This position would relieve the Chief Deputy of the majority of the tasks associated with marijuana licensing, with oversight and review by the Chief Deputy. As workload allows, this position will also assist with liquor licensing functions and be fully trained to handle liquor licensing in the absence of the Deputy City Clerk. Currently, there is no backup for the Deputy City Clerk on liquor licensing processes. Liquor licensing tasks will be supervised by the Deputy City Clerk. Funding this position will improve service to marijuana business owners who are currently waiting as much as nine months to have their applications processed and approved. It will provide applicants and licensees with a staff person dedicated to their needs -- one that is more accessible than the Chief Deputy. The new FTE will be able to focus on becoming familiar with the multitude of laws and regulations, streamlining and documenting licensing processes, and participating in staff teams. The new FTE will also be able to develop a strong relationship with the Police Services officer assigned to marijuana, which will come on board in late 2015. 2014 revenue from marijuana application and licensing fees exceeded $84,000. Sales tax revenue for medical marijuana was over $227,000 in 2014. Retail marijuana generated over $138,000 in sales tax revenue in the last two quarters of 2014. 100 - GENERAL FUND High Performing Government General Fund Page 45 Revision Title: Outcome: Contact: Greg Yeager Expense Fund: Package/Offer #: 56.4 Funding Source: Ongoing: $73,726 One-time: $0 TOTAL Amount: $73,726 FTE Requested: 1.0 FTE - Description: Performance Measure: SAFE 50. % of citizens responding very good/good quality of - Police services overall in Fort Collins Property Evidence Technician The deployment of over 60 body-worn video recorders on police officers produces over 200 gigabytes of data per month with retained storage exceeding 2 terabytes. In line with a national movement for safety and accountability, the agency plans to expand the camera program in 2016 and into 2017 with the eventual goal of outfitting every uniformed officer. However, that will cause an immediate need for increased hardware/software support and evidence handling. Body-worn video has an immediate positive impact on safety, accuracy of reporting, and accountability for actions (both officers and citizens). The Property & Evidence Unit has an immediate need to increase civilian staffing to address this swell of digital evidence (body-worn video, audio, photographs) that must be taken in, labeled, audited, copied, and transferred to other organizations such as the district attorney's office. Hiring and training a technician can take up to one year. Currently, 15,275 of the 81,570 items of FCPS' property/evidence are digital video and one P&E Technician is kept busy with that data. Without this increase in staffing, the proposed expansion of the camera program will have no support. The Police Property and Evidence Technician costs were obtained from Human Resources. A hiring process for another vacancy will establish an eligibility list, so the position could be filled immediately. This position was requested during the BFO process for the current budget, but fell below the line. https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=7718& object=measure&objectID=109973 2016 BUDGET REVISION REQUEST Police Property and Evidence Technician 100 - GENERAL FUND Safe Community KFCG - Police Page 46 Revision Title: Outcome: Contact: Emma Belmont Expense Fund: Package/Offer #: None Funding Source: Ongoing: $275,000 One-time: $0 FTE Requested: 1.0 FTE - Contractual TOTAL Amount: $275,000 Description: Performance Measure: Tran 2 – Cumulative Transfort Fixed Route Ridership This offer is being submitted to accelerate Transfort's planned implementation of ADA-accessible bus stops under Building on Basics II from a combined 20 stops per year to 40 stops per year. Based on Community and City Council feedback, implementation of ADA-accessible bus stops need to be prioritized and this offer lays out the framework to accomplish this task. Based on recent estimates, approximately 330 bus stops in Transfort’s service area are not compliant with ADA standards and many of these are located in areas with limited neighborhood sidewalks. Bus stop improvements alone range between $2,500 to $30,000 depending on the available public right-of- way (ROW) and other site specific characteristics (an average is estimated at $10,000 for each stop). Stops on the low end are generally within public ROW and have adjacent neighborhood sidewalks to connect with. Stops on the higher end are in areas with no neighborhood sidewalks and often require negotiations with private property owners before any accessible infrastructure can be installed. The current Capital Improvement Plan assumes the City/Transfort will upgrade 10 of the 20 bus stops planned to be improved each year, which would cost approximately $100,000. The remaining 10 stops would be upgraded by either private development or by Lamar Advertising Company. The 10 City stop improvements can be accomplished through existing staffing levels for both Transfort Project Management and Engineering’s Inspector Staff workloads. This offer provides funding to increase the number of bus stop improvements to approximately 40 stops in 2016 - a 50% increase to the current Capital Improvement Plan. Funding would flow directly to infrastructure improvements and to the hiring of a full-time contractual engineer to manage and provide design & property acquisition planning support for the project as current resources are limited. This offer is scalable in both infrastructure and personnel expenditures. If funded, wholly or partially, planned improvements will be somewhat dependant upon vendor scheduling. This will reduce the timeline for completing the ADA bus stop improvements from 18 years to 9 as long as the existing (original funding) remains and this supplemental funding continues each year. Engineering will be contracting the work out. https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=6350&obj ect=measure&objectID=91506 2016 BUDGET REVISION REQUEST Additional Bus Stop Improvements for ADA Accessibility 290 - TRANSIT SERVICES FUND Transportation KFCG - Other Transportation Reserves Page 47 OFFERS NEEDING FURTHER DISCUSSION Revision Title: Outcome: Contact: Lucinda Smith Expense Fund: Package/Offer #: None Funding Source: Ongoing: $380,000 One-time: $0 TOTAL Amount: $380,000 FTE Requested: None Description: A public collection site for a Community Recycling Center (CRC) for hard-to-recycle-materials is one of the City's strategies for achieving its goal of Zero Waste. A “full-fledged” CRC would entail the following elements: • Develop CRC at Timberline site • Move Rivendell Recycling Center to the new location • Open full-fledged hard-to-recycle-materials collection area with on-site staffing • Establish funding source for ongoing operations and maintenance expenses Funding has already been identified and secured to construct the site, should City Council decide to move forward with it. This mid-cycle budget offer requests funding to support part of the operational costs of a full-fledged Community Recycling Center. In 2015, staff and the potential site operator developed a Profit & Loss (P&L) analysis that applies a set of key assumptions (e.g., number of visits, volume of material collected) and forecasts costs to run the facility. Based on these assumptions, the net annual operating expenses could be in the range of $200-$300K per year. It was originally envisioned that a private contractor would be able to operate the site and cover operational expenses by charging a small gate fee. However, the market for recyclable commodities has changed recently. It is likely that a small gate fee will not cover all the operational expenses, and City support will be needed to provide this innovative service to the community. 2016 BUDGET REVISION REQUEST Annual Operations for the Community Recycling Center (CRC) 100 - GENERAL FUND Environmental Health KFCG - Other Community Priorities Page 48 Performance Measure: ENV 10. Community solid waste diversion rate https://www.clearpointstrategy.com/publish/direct.cfm?linkID=BFO&view=drill&scorecardID=6282&o bject=measure&objectID=91346 This offer requests $300,000 in 2016 to cover conservative estimates of net annual operational funding support needed from the City to fund operation of the site. Providing annual funding for operating the CRC will: • provide social benefits to the community, • support the culture of recycling that is critical to achieving progress on zero waste goals and the Climate Action Plan Framework, • preserve the site for the unique opportunities it presents for future development of small scale waste-to-energy or expanded resource recovery, • support Road to Zero Waste goals - If the CRC conservatively diverts 1512 tons from the landfill (above Rivendell), and usage of the site grows by 50% each year through 2020, it would divert an estimated 7655 tons of material in 2020. This represents 16% of the total 47,000 estimated tons of additional tons of waste diversion needed to achieve the 2020 goal of 75% waste diversion, and • avoid a conservatively estimated 2,350 metric tons GHG in the first year, above the current Rivendell GHG benefits. If usage of the site grows by 50% each year through 2020, it would divert an estimated 7655 tons in 2020 and avoid 11,830 MTCO2 in 2020. This represents 3% of the total MTCO2 reduction outlined for 2020 in the CAP Framework. Page 49 Revision Title: Outcome: Contact: Cory Christensen Expense Fund: Package/Offer #: None Funding Source: Ongoing: $0 One-time: $810,000 TOTAL Amount: $810,000 FTE Requested: None Description: 2016 BUDGET REVISION REQUEST Design Funding for the Police Regional Training Campus Fort Collins Police Services has been working in partnership with Loveland Police to bring a Regional Training Campus (RTC) to Northern Colorado. This campus will provide a venue necessary to handle a variety of training needs for both agencies. The campus will include a venue for firearms and emergency driving training. The amount requested here will cover 50% of the total desgin costs for the project. There is a possibility of adding Larimer County as a third capital partner which would reduce the designs costs due to a 1/3rd split for the design costs. The design portion of the project will take place in 2016 with construction of the facility possibly happening in late 2016 to early 2017. Safe Community 100 - GENERAL FUND General Fund - Reserves Page 50 CAP OFFERS NOT RECOMMENDED FOR 2016 REVISIONS Revision Title: Outcome: Contact: John Phelan Expense Fund: Package/Offer #: 58.1 Funding Source: On-going: $0 One-time: $688,000 TOTAL Amount: $688,000 FTE Requested: None Description: 2016 BUDGET REVISION REQUEST Energy Services Program Funding This offer provides funding for energy services programs in an effort to meet customer interest in efficiency project implementation and for anticipated incentives for large projects through the Integrated Design Assistance Program (IDAP). The request represents a 16% increase in the overall budget for offer 58.1 for 2016. The Energy Services Budgeting For Outcomes offers in 2015/2016 were at the same level as the prior budget cycle of 2013/2014. The offer supports the criteria established for mid-cycle offers characterized as “significantly impacting the delivery of that program or service” because the amount of funding is not meeting the demand of customers expressing interest to participate. The base offer for Energy Services (58.1) includes the staffing and resources to deliver annual efficiency and conservation program savings which meet the targets of the Energy Policy, which is in alignment with the Climate Action Plan. Programs include consumer product rebates, home energy reports and business and home efficiency initiatives. This offer takes into account proposed increases in funding for energy efficiency by Platte River Power Authority, who contributes over $1M as part of Efficiency Works. Approximately 90% of the proposed funding will provide direct rebates or services to customers. The additional funding is anticipated to increase electricity savings in 2016 by 3100 megawatt-hours and reduce annual Green House Gas emissions by over 2500 metric tons achieving an additional 10% in GHG savings from the efficiency programs portfolio. Business customer participation has been steadily increasing for the last several years (50% in 2013, 5% in 2014, and 9% as of May 2015). This funding is estimated to support the momentum of customer interest through 2016. In addition, a number of incentives are anticipated to be paid out for large new construction projects in 2016 through IDAP. The proposed offer supports the City’s goals from the Energy Policy and Climate Action Plan (CAP) Framework. Green House Gas savings from improved efficiency in buildings is 27% of the CAP 2020 reduction framework. The ability to participate in Utilities energy programs and services is available to households and businesses, and is one of the most tangible ways with which our citizens can engage in the CAP strategy titled “Building.” 501 - LIGHT & POWER FUND Environmental Health 501 - LIGHT & POWER FUND - Reserves Page 51 Revision Title: Outcome: Contact: John Phelan Expense Fund: Package/Offer #: 58.2 Funding Source: On-going: $0 One-time: $421,000 FTE Requested: None TOTAL Amount: $421,000 Description: 2016 BUDGET REVISION REQUEST Peak Partners Demand Response Program This offer increases funding for the Peak Partners (demand response) program to support an additional 1,000 residential WiFi thermostats, and for software support from the vendor to maintain business customer participation during the transition to the new Demand Response Management System (DRMS). An analysis has estimated deploying the 1,000 additional thermostats as an addendum to the current scope of work will save approximately $100,000 or over 20% in deployment costs as compared to restarting the deployment at a later date. The Peak Partners DRMS is operational and able to forecast load, plus dispatch and manage residential air conditioning and electric water heaters for residential customers. It also provides inventory management and work orders for installation with maintenance. The DRMS is replacing a legacy load management system which has been in operation since 1982. The DRMS is supporting new residential customers with thermostats and water heater control units. However, the legacy system continues to support business customers participating in demand response, pending a transition to new communications protocols. Implementation of the Peak Partners is ahead of the initial schedule, with residential installations to be completed by the end of the first quarter of 2016. The installation vendor can accommodate additional scope in 2016, such that the addition of the 1,000 thermostats to the system can be accomplished in a more cost-effective manner than could be done in future years. The proposed 1,000 additional thermostats will provide approximately 1 megawatt of additional dispatch capacity to the system. Based on current wholesale and retail electricity rates, staff estimates savings of approximately $50,000 annually to purchase power costs through the additional thermostats. The legacy software system which supports business customers demand response needs requires a software migration to a new operating system. This offer also includes $25,000 for the required software migration to continue uninterrupted support business customers until the DRMS protocols are in place in late 2016. The proposed offer supports the City’s goals from the Energy Policy and 2015 Climate Action Plan Framework because demand response is an enabling strategy for higher penetration of renewable energy and future electricity storage. The ability to participate in Utilities energy programs and services is available to households and businesses, and provides one of the most tangible ways with which our citizens can engage in responding to electric demands during peak periods. 501 - LIGHT & POWER FUND Environmental Health 501 - LIGHT & POWER FUND - Reserves Page 52 Revision Title: Outcome: Contact: John Phelan Expense Fund: Package/Offer #: 58.1 Funding Source: On-going: $0 One-time: $325,000 TOTAL Amount: $325,000 FTE Requested: None Description: 2016 BUDGET REVISION REQUEST Solar Renewable Energy The offer provides funding to expand solar rebates for small-scale solar systems by $300,000 for calendar year 2016. The offer supports the criteria established for mid-cycle offers characterized as “significantly impacting the delivery of that program or service”, attributed to being sold out each year, even with a decrease in the per watt funding from $1.50 in 2014 to $1.00 in 2015. The $300,000 additional funding would bring the total small-scale solar rebate funding amount to $675,000 in 2016. The solar photovoltaic (PV) rebate program offers a dollar-per-watt incentive for residential and commercial projects. The rebate amount will reduce to $0.75 per watt in 2016 (currently at $1.00 per watt in 2015). The combination of additional funding and reduced rebate amount will provide funding for approximately 2-2.5 times the number customer projects as in 2015 (depending on size and mix of residential and commercial projects). The offer also includes $25,000 to support the staffing needs (via a part-time hourly position) to manage the application and field inspection requirements of the 2016 program of this increased number. The residential incentive is capped at 3 kilowatts (kW) per project and the business incentive is capped at 20 kW per project. Based on calendar year budget appropriations, Utilities offers solar rebates in the first quarter of each year as rebates are typically allocated to customers within three months. This additional funding is expected to more closely match the demonstrated customer interest on an annual basis. The base and enhancement offers support the City’s goals from the Energy Policy (existing and draft revision) and Climate Action Plan (CAP) Framework. Green House Gas (GHG) savings from increased local renewable is 18% of the CAP 2020 reduction framework. Solar funding for 2016 will also be able to take advantage of the last year of the federal investment tax credit. The ability to participate in Utilities energy programs and services is available to households and businesses, and is one of the most tangible ways with which our citizens can engage in achieving CAP goals under the “Building” strategy. 501 - LIGHT & POWER FUND Environmental Health 501 - LIGHT & POWER FUND - Reserves Page 53 Revision Title: Outcome: Transportation Contact: Timothy Wilder, Lucinda Smith Fund: Package/Offer #: None Funding Source: On-going: $0 One-time: $465,000 FTE Requested: None TOTAL Amount: $465,000 Description: 2016 BUDGET REVISION REQUEST Climate Action Plan - Flexible Transit Service Pilot Project This request is one of five offers responding to City Council and City Manager requests for Climate Action Plan (CAP) implementation strategies. The purpose of these offers is to develop or expand City programs that will aid in or directly affect the reduction of the community’s greenhouse gas emissions. This pilot project would introduce a new, flexible type of transit service that uses smaller, alternative fuel vehicles on an existing low-density transit corridor. Significant operations cost savings would be achieved, and transit funds would be re-invested in a higher ridership transit route. The flexible transit service, called “deviated fixed-route”, would be implemented on Horsetooth Road from Zeigler to Spring Canyon Park, replacing Route 12. In order to provide more customer responsiveness, passengers along the corridor would be able to request a limited number of door-to door pickups through a web portal and mobile app, in addition to waiting at a standard bus stop. The route would use smaller alternative fuel vehicles which offer more routing flexibility and lower GHG emissions. Fares for service would remain the same as the rest of the Transfort system. This offer provides funding for one-time costs to include the purchase of 3 ADA-accessible, alternative fuel vans with advanced traveler technology hardware and routing software. Operating costs, including labor, support service, maintenance, etc. would be accommodated within Transfort’s existing budget. Significant cost savings are expected, which will be reinvested in a more productive transit corridor, resulting in ridership gains, while maintaining current levels of ridership on Horsetooth Road. Key Benefits and Outcomes: • Addresses the Climate Action Plan Framework tactic of “Coordinate and expand local and regional mass transportation options for commuters.” • Climate Action goals for transportation will be addressed through 1) re-investment of transit funding into transit route that will provide higher ridership than the current Route 12; and 2) investment in alternative fuel vans. The pilot will report on the specific ridership gains, and subsequent C02 emission reductions, achieved by the pilot project. • Web and mobile app will be able to provide flexible transit service in other areas of the community. • Better alignment with the Council adopted Transfort Service Philosophy: Focus on productivity, meaning an emphasis on frequency and bus routes in areas with higher ridership potential, as opposed to dispersed coverage and lower ridership. • Operational cost savings would be realized through the use of more efficient service and smaller vans. • Additional service for ADA-eligible passengers. • Transit service that is more responsive to customer needs in a low density transportation corridor. • The pilot program will be evaluated after years 1 and 2 against Transfort’s service standards and performance metrics. 292 - TRANSPORTATION SERVICES FUND General Fund Page 54 2016 Budget Revisions September 15, 2015 Mike Beckstead - CFO ATTACHMENT 2 2016 Budget Revision Objectives 2 The recommended 2016 Budget Revisions are intended to address: • Council priorities • Projected revenue from the renewal of the ¼ cent street maintenance tax • Capital project and other needs not known at the time of the adoption of the 2015-16 Budget (e.g. Climate Action Plan) • Fiduciary responsibilities in the Self Insurance Fund and the Benefits Fund • Maintaining fund balances to support future needs and economic uncertainty 2016 Budget Revision Changes 3 The following changes were made based on feedback from the Council Finance Committee: • Adjusted 2015 Sales Tax growth downward based on the last 3 month of actual collections (the later months of 2014 had significant growth over 2013 which challenges growth of 2015 over 2014 in the second half of 2015). • Increased the cost of the Prospect and College Intersection Offer by $300K (details in AIS) 2016 Available Funding 4 • Updated Major Revenue Elements Only: • Sales Tax – 2015 updated to reflect 4.9% growth over 2014, 2016 growth of 3.0% • Use Tax – 2015 updated to reflect additional $7.1M, no change to 2016 • Property Tax – 2015 updated to reflect additional $1.0M, 2016 additional ongoing of $0.7M • No changes to other major revenue sources • Unassigned 2014 Reflects year end available fund balances across multiple funds • Utilities Reflects Only Fund Balance Used to fund Offers – • Total L&P and Wastewater Fund 2014 Unassigned balance is $18.4M & $20.4M, respectively Slightly More Aggressive 2015 Forecast & Conservative 2016….. Additional Revenue Will Flow to Fund Balance $ in Millions General Fund Ongoing General Fund One- Time KFCG Transport ation Other Utililities Total Sales & Use Tax $ 2.4 $ 6.6 $ 3.0 $ 11.9 Property Tax 0.7 1.0 1.7 Street Maintenance 1/4 Cent 7.7 7.7 Utilities - Use of Reserves 9.1 9.1 Unassigned 2014 1.3 6.8 7.5 8.2 23.8 BCC Excess 1.6 1.6 Benefits Fund Revenue Depts 2.7 2.7 TOTAL $ 3.1 $ 8.9 $ 9.8 $ 15.2 $ 12.5 $ 9.1 $ 58.5 Utility Rates 5 PRPA Increasing Wholesale Rates Greater Then Anticipated Original Revised Light & Power 1.9% 3.0% Water 0.0% 0.0% Waste Water 3.0% 3.0% Storm Water 0.0% 0.0% Offer Summary 6 Several Large Offers Associated with Capital, Climate Action Plan and Benefits $ in Millions General Fund Ongoing General Fund One- Time KFCG Transport ation Other Utililities Total Self Funded Requests $ 0.5 $ 0.1 $ 0.6 Large Capital Projects 1.1 7.8 2.7 5.0 16.6 Climate Action Projects 0.0 0.1 0.1 3.6 3.9 Human Resoures / Benefits 1.1 0.3 0.2 0.2 3.6 0.4 5.8 Other Recommended Programs 0.3 1.6 0.6 0.1 2.6 TOTAL $ 1.5 $ 3.1 $ 1.4 $ 8.0 $ 6.5 $ 9.1 $ 29.5 7 Offer Summary Strategic Objective Tran 6.6 Env 5.8 Safe 5.8 Safe 5.9 C&R 2.5 Econ 3.6 Tran 6.4 Tran 6.4 Env 4.4 Env 4.4 Env 4.4 Env 4.4 Budget Revision FTE Ongoing $ One-Time $ TOTAL $ Self Funded Offers and PFA KFCG Harmony Park and Ride - Parking Enforcement Officer 0.75 $60,000 $0 $60,000 Design Funds - Mail Creek Stream Restoration - - - Emergency Services Dispatcher 1.00 70,475 - 70,475 KFCG Reserve for PFA - 483,219 483,219 Sub-Total 1.75 $130,475 $483,219 $613,694 Large Capital Projects Funded by Reserves or Dedicated 1/4 Cent Tax Southeast Community Park - Water Rights & Construction Costs - 1,100,000 1,100,000 Major Duct Banks and Circuits Funding Increase - 5,000,000 5,000,000 Prospect Road and College Avenue Intersection Improvements - 2,700,000 2,700,000 Renewal of 1/4 cent Street Maintenance Tax 7,786,500 - 7,786,500 Sub-Total 0.00 $7,786,500 $8,800,000 $16,586,500 Climate Action Plan (CAP) Offers Climate Action Plan - Water Reclamation Biogas to Co-Gen - 3,500,000 3,500,000 Climate Action Plan Implementation - Program Business Planning - 150,000 150,000 Climate Action Plan - Energy Code Performance Program (contractual) 1.0 74,000 60,000 134,000 Climate Action Plan - Communication and Engagement Platform Design & Implementation - 125,000 125,000 Sub-Total 1.00 $74,000 $3,835,000 $3,909,000 8 Offer Summary Strategic Objective HPG 7.2 HPG 7.3 CNL 1.3 CNL 1.4 CNL 1.7 C&R 2.3 C&R 2.4 C&R 2.4 Econ 3.10 HPG 7.12 HPG 7.9 Safe 5.2 Tran 6.1 Budget Revision FTE Ongoing $ One-Time $ TOTAL $ Human Resource Offers Chief Human Resources Officer Position 1.0 121,276 21,000 142,276 Total Rewards Strategy: Career Architecture and Pay Structure - 275,000 275,000 Cost Adjustments to the Benefits Fund (Benefits cost) 2,700,000 - 2,700,000 Cost Adjustments to the Benefits Fund (cost to Departments) 2,720,789 - 2,720,789 Sub-Total 1.00 $5,542,065 $296,000 $5,838,065 Other Recommended 2016 Budget Revision Offers Neighborhood Srvcs Strategic Plan & Impl of Neighborhood Districts - 67,000 67,000 Nature in the City Implementation (Contractual FTE) 1.0 78,089 - 78,089 Homelessness Initiatives - Street Outreach Pilot Program - 80,000 80,000 Parks Division Competitive Hourly Wages 110,000 - 110,000 Spring Canyon Playground Surfacing Replacement - 208,000 208,000 Golf Course Irrigation Improvements - 30,000 30,000 Debt Payment on new Parking Structure - 900,000 900,000 Increase Claims Settlement within the Self Insurance Fund - 600,000 600,000 IT: Open Data Portal - First Phase Implementation 60,000 40,000 100,000 City Clerk Licensing Coordinator (Contractual FTE) 1.0 68,917 5,700 74,617 Police Property and Evidence Technician 1.0 73,726 - 73,726 Additional Bus Stop Improvements for ADA Accessibility (contractual FTE) 1.0 275,000 - 275,000 Sub-Total 4.00 $665,732 $1,930,700 $2,596,432 Grand Total 7.75 $14,198,772 $15,344,919 $29,543,691 Offers Needing Further Discussion 9 $ in Millions General Fund Ongoing General Fund One- Time KFCG Transport ation Other Utililities Total Community Recycling Center Operations and Maintenance 0.4 0.4 Police Regional Training Facility Design 0.8 0.8 TOTAL $ 0.4 $ 0.8 $ - $ - $ - $ - $ 1.2 Benefits Cost 10 y Claims Cost Increase Greater Than Anticipated…. Benefit Fund Subsidy Exhausted • Benefits Cost Offer of $5.4M Includes: • Department charges that generate revenue to the Benefits Fund - $2.7M • Benefit cost payments from the benefits fund greater than budget - $2.7M • Drivers of Benefit Cost Increases 1. 2014 claims greater than budget of $1.8M – required supplemental appropriation • Claims cost in the 2015/16 budget does not reflect the higher base 2. Benefit Costs Increasing greater than anticipated • Additional staff covered by the Affordable Health Care Act in 2015/16 • Claims costs growth at a greater rate than forecasted in 2015/16 3. Planned draw down of benefit fund reserves– faster than expected • Department billings intentionally lower than needed in 2013-2015 • Expect benefits fund reserve will be at minimum level at the end of 2015 Benefits – Total Cost Share Data 11 gg g Rising Claims Cost Above Forecast Increase City Share…. Budget Proposal Begins to Rebalance Cost Sharing With 71.5% / 28.5% Premium Cost Share A 1% increase in the Employer Total Cost Share is about $235K for the City 2016 Budget Revision Summary 12 City Manager’s Recommended Budget Maintains Healthy Fund Balance $ in Millions General Fund Ongoing General Fund One- Time KFCG Transport ation Other Utililities Total Revenue Update $ 3.1 $ 8.9 $ 9.8 $ 15.2 $ 12.5 $ 9.1 $ 58.5 Recommended Budget Revisions 1.5 3.1 1.4 8.0 6.5 9.1 29.5 Net Impact $ 1.6 $ 5.8 $ 8.4 $ 7.2 $ 6.0 $ 0.0 $ 29.0 Discussion Offers 0.4 0.8 - - - - 1.2 Total Net Impact Fund Balance $ 1.2 $ 5.0 $ 8.4 $ 7.2 $ 6.0 $ 0.0 $ 27.8 2016 Budget Revision Summary 13 Guidance Requested: 1) CFC feedback on the City Manager’s Recommended revisions to the 2016 Budget? 2) CFC direction on the two offers reviewed for Council consideration? 14 Back-Up 15 Other Climate Action Plan (CAP) Offers The following CAP Offers were evaluated, but not included in the recommended 2016 Revisions: • CAP - Flexible Transit Service Pilot Project - $465K • CAP - Energy Services Program Funding - $688K • CAP - Solar Renewable Energy - $325K • CAP - Peak Partners Demand Response Program - $421K These and other innovative ideas will be evaluated for the best return on investment and compete in the 2017-18 BFO process