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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 04/28/2015 - TAX RENEWALS-UPDATE AND OVERVIEWDATE: STAFF: April 28, 2015 Ginny Sawyer, Policy and Project Manager Darin Atteberry, City Manager WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Tax Renewals-Update and Overview. EXECUTIVE SUMMARY The purpose of this item is to review the process, projects, and highlights related to the recently passed Capital Improvement and Street Maintenance ¼-cent taxes. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Does Council have any questions regarding the process or projects related to the ¼-cent tax renewals? BACKGROUND / DISCUSSION Capital Improvement Tax Fort Collins has been fortunate to have a long history of voter approved sales tax initiatives to fund major capital projects. Starting in 1973 with a 7-year, one cent tax that helped pay for the Main Library, the Lincoln Center, City Hall, and Mulberry Pool among other improvements, these voter approved sales tax capital programs have continually supported efforts to build the city we know and love today. The current initiative, Building on Basics (BOB), was approved in 2005. BOB is a quarter cent tax which equates to 25-cents on a $100 purchase. Over the 10-year period (2005 to 2015), BOB has provided almost $58 million dollars for investment in community projects. These dollars have supported the Lincoln Center renovations, the Museum of Discovery, new bike facilities, improvements to North College and Timberline, sidewalk upgrades, and the Senior Center expansion. The BOB initiative will expire December 31, 2015. During the 2013-2014 strategic planning efforts, “Planning for the Next Community Capital Program (BOB II)” was identified as a High Performing Government key initiative. Staff worked diligently from early 2012 through January 2015 to engage the community and work with Council to develop the project list included in the recently passed initiative. Council first reviewed the process and an initial project list in September 2013. There were six additional Council work sessions and many hours and efforts dedicated to public engagement to help determine the community’s highest priorities. Those efforts narrowed the original project list from $400 million to the $75 million in projects that have now been approved by voters for implementation. The projects in the initiative provide benefit to a wide variety of citizens while also addressing basic needs and existing deficiencies. (Attachments 1 and 2.) The package accounts for five years of Operation and Maintenance on select projects and factors in inflation on construction projects. April 28, 2015 Page 2 Total Revenue $83M Less O&M $2.6M Remainder $80.4M Note: Estimated 45% of projects require inflation Less Inflation $5.3M Note: 45% of annual revenue (no O&M) inflated at 3% Total For Projects $75.1M Highlights of the Capital Package  Term of 10 years (January 1, 2016 - December 31, 2025.)  Five years of Operation and Maintenance for select projects.  A provision that any excess revenues remaining after all projects are completed and operation and maintenance costs provided will be directed to any capital project or additional operation and maintenance of select projects, as directed by City Council.  A contingency on the Downtown Poudre River Kayak Park and the Visitor’s Center at the Gardens on Spring Creek that construction will not begin until successful private fundraising efforts have been achieved. Street Maintenance The Fort Collins community has also supported street maintenance through a 1/4 cent tax since 1989. The current Street Maintenance tax will expire December 31, 2015. The Street Maintenance Program costs approximately $15 million per year. This quarter-cent tax funds nearly half of the yearly cost at $7 million per year. Other program funding includes Keep Fort Collins Great ($7 million) and the General Fund ($1 million.) The Street Maintenance Program maximizes the community’s investment in the street network by performing ongoing maintenance before much more costly repairs or replacement is necessary, extending the usable life of a street. The program includes repair of concrete curbs, gutters, and sidewalks; construction of sidewalk access ramps; repair of deteriorating asphalt; and the reconstruction, overlay, or seal coat operations on existing streets. Each year, approximately 135 lane miles of Fort Collins streets are improved. The City’s policy is to keep the street system at a Level of Service (LOS)-Grade B or better. Street Maintenance funding has also been used to help pay to repair and replace aging bridges throughout the city. Fort Collins’ overall street network is the City’s largest capital asset, and maintaining and preserving this asset is a key responsibility of municipal government. FINANCIAL / ECONOMIC IMPACTS This is a tax extension of an expiring tax, not a new tax, and as such there is not be an increase in the current tax rate. This is a sales and use tax collected on all taxable purchases, which does not include purchases of prescription drugs and food for home consumption. The extension results in the continued ¼-cent tax which is the equivalent of 25 cents on a $100 taxable purchase. Current revenue projections over 10 years are approximately $83 million. The term of each tax extension is January 1, 2016 through December 31, 2025. PUBLIC OUTREACH The Capital Improvement process involved extensive public outreach that including:  Between September 2013 and January 2014, staff met with eight City boards, the Visit Fort Collins Board, the Chamber Legislative Committee, and a CityWorks Alumni group to seek feedback on both process and projects. April 28, 2015 Page 3  Major public outreach began in August 2014 and included an interactive website, a board and commission “Super Meeting,” a CityWorks Alumni Forum, a public open house, a Community Issues Forum, a “mini” drop-in at the Senior Center, and a booth at the Sustainable Living Fair.  In late October 2014 the on-line tool was converted to a calculator tool that allowed citizens to select up to $75 million in projects. Staff also continued to meet with City boards and the Chamber Legislative Committee. The outreach, both on-line and at events, was instrumental in shaping and guiding the project narrowing. Traditionally, the capital improvement packages have been a mix of transportation infrastructure, funds to leverage additional dollars, signature projects, and amenities that impact large segments of our citizens. This package reflects a similar mix. The Street Maintenance Program was included in all outreach efforts and included asking the public their preference on the term of the tax (10, 15, 20 years.) ATTACHMENTS 1. Project Cost and Description (PDF) 2. Project Breakdown by Type and Location (PDF) 3. Powerpoint presentation (PDF) Capital Enhancement Projects Project Descriptions Community Capital Improvement Program 2016-2025 Estimated Capital Cost (2015 dollars) Estimated Annual Operations and Maintenance Cost (2015 dollars) Pedestrian Sidewalk/ Americans with Disabilities Act (ADA) Compliance – Safe Routes to Everywhere $14,000,000 No O&M Funds This project will provide an annual fund to begin the implementation of a 52-year compliance program to eliminate gaps in the City’s pedestrian network and improve ADA compliance. Bicycle Infrastructure Improvements – Safe Routes to Everywhere $5,000,000 No O&M Funds This project will provide an annual fund to begin implementation of the City’s 2014 Bicycle Master Plan. This project will provide an annual fund to be used toward stand-alone bicycle infrastructure projects as well as add-on elements to other projects that complete or enhance the City’s bicycle network. Projects will enhance safety, provide wayfinding, and improve comfort and access for bicyclists. Bus Stop Improvements – Safe Routes to Everywhere $1,000,000 No O&M Funds This project will provide an annual fund to make ADA improvements and upgrade bus stops throughout the City. Downtown Poudre River Enhancements and Kayak Park $4,000,000 $50,000 This project creates a whitewater kayak park with viewing/picnic areas, adds a pedestrian bridge over the river, improves access to the river and enhances the river’s habitat and beauty. The project also lowers the river channel to improve flood mitigation and prevent flooding of College Avenue. Bike/Ped Grade Separated Crossings Fund $6,000,000 $20,000 This project will provide an annual fund to construct top priority grade-separated bicycle and pedestrian crossings across arterial roadways. Transfort Bus Fleet Replacement $2,000,000 No O&M Funds This project will provide an annual fund to meet the local match needed to replace heavy duty buses over the next 10 years. This fund will be leveraged to receive an 80% match of federal and state grant funding. Arterial Intersection Improvements Fund $6,000,000 No O&M Funds This project will provide an annual fund for improvements to arterial intersections, prioritized by congestion, with safety improvements for all travel modes. Implementing Nature in the City $3,000,000 $100,000 This project will provide an annual fund to protect access to nature and the key natural spaces that define our ATTACHMENT 1 Project Descriptions Community Capital Improvement Program 2016-2025 Estimated Capital Cost (2015 dollars) Estimated Annual Operations and Maintenance Cost (2015 dollars) community by filling in gaps to achieve a 10-minute walk to nature or by enhancing species connectivity, and by enhancing existing sites to provide greater habitat variety and natural experiences. Gardens on Spring Creek Visitor’s Center Expansion $2,000,000 $40,000 This project will double the square footage of the Visitor’s Center at the Gardens on Spring Creek and will add meeting rooms, a new entryway with gift shop, a conservatory, a small café, and additional office space. Southeast Community Center with Outdoor Pool $14,000,000 $230,000 This project will build a Community Center in southeast Fort Collins focused on innovation, technology, art, recreation and the creative process. The Center will also have a large outdoor leisure pool with water slides, sprays and jets, decks, a lazy river and open swimming area. Affordable Housing Fund $4,000,000 No O&M Funds This project will fund capital costs of development or rehabilitation of one or more public or private housing projects designated specifically for low income individuals and families. Lincoln Avenue Bridge Design & Construction $5,300,000 $36,000 This project will fund design and construction of a new Lincoln Avenue Bridge bringing the bridge up to standards and adding urban design elements. City Park Train $350,000 No O&M Funds This project will bring back the City Park train in a new, expanded location in City Park. Renovation of the Historic Carnegie Building $1,700,000 $25,000 This project will renovate the historic 1904 Carnegie library building to enhance its use as a Community Center. The Center will host special events, community meetings, art exhibits and symposiums in the heart of Downtown. Linden Street Renovations Design & Construction $3,000,000 $12,000 This project will fund final design, construction, and right-of-way acquisition for the renovation of the downtown 200 block of Linden Street. Club Tico Renovation $250,000 No O&M Funds This project will complete the renovation of Club Tico at City Park by renovating the kitchen and restrooms and adding a second story deck overlooking Sheldon Lake and City Park Pool. Project Descriptions Community Capital Improvement Program 2016-2025 Estimated Capital Cost (2015 dollars) Estimated Annual Operations and Maintenance Cost (2015 dollars) Willow Street Renovations Design & Construction $3,500,000 $11,000 This project will fund final design and construction of improvements to Willow Street between College Avenue and Linden Street as identified in the River District Infrastructure Plan. Project Breakdown by Type and Location Bike/Ped 31% Tran 24% Rec 22% Env-Social 14% Culture 9% TOTAL BoB II Project Expenditure Forecast by Category Bike/Ped Tran Rec Env-Social Culture Citywide 51% North of Drake 28% South of Drake 21% TOTAL BoB II Project Expenditure Forecast by Location Citywide North of Drake South of Drake ATTACHMENT 2 City Council Work Session 5-24-15 April 28, 2015 Capital Improvement and Street Maintenance Programs: ¼-Cent Renewal ATTACHMENT 3 Question Does Council have any questions regarding the process or projects related to either the Capital Improvement Program or the Street Maintenance Program? Capital Improvement-Background  Current initiative is Building on Basics (BOB)  BOB expires December 31, 2015  ¼ cent = 25 cents on a $100 purchase  Dedicated tax is method Fort Collins has historically used to fund capital Process to Renewal Sept 2013 ($400M) Dec 2014 ($200M) Oct 2014 ($80M) Jan 2015 Proposed Program Package-$75M April, 7, 2015 Election Capital Program – 80.53% Approval Street Maintenance Program -84.53% Approval Capital Improvement-Revenue  Forecasting formula estimates total ¼ -cent revenue from 2016-2025 at $83 M  Target project dollar amount: $75.1 M  4 years of O&M for select projects: $2.6 M  3% inflation on non-fund projects: $5.3 M Community and Neighborhood Livability  Affordable Housing Fund- $4M  Pedestrian Sidewalk and ADA Compliance Program - Safe Routes to Everywhere -$14M  Bicycle Infrastructure Improvements - Safe Routes to Everywhere - $5M  Bus Stop Improvements -Safe Routes to Everywhere - $1M Total: $24M Capital Improvement-Projects Transportation  Bicycle/Pedestrian Grade-Separated Crossings Fund - $6M  Transfort Bus Fleet Replacement - $2M  Arterial Intersection Improvements Fund - $6M  Lincoln Ave Bridge Improvements - $5.8M  Willow Street – $3.5 M Total: $23M Capital Improvement-Projects Environmental Health  Downtown Poudre River Enhancements- between Shields St and Downtown - $4M  Implementing Nature in the City - $3M Total: $7M Capital Improvement-Projects Culture and Recreation  Southeast Community Center/Outdoor Pool - $14M  Gardens on Spring Creek Visitor’s Center - $2M  City Park Train - $350K  Club Tico Renovation - $250K  Renovation of the Carnegie Building - $1.7M Total: $18M Capital Improvement-Projects Capital Improvement-Projects Economic Health  Linden Street Renovations Design & Construction/ Walnut to Jefferson - $3M Total: $3M  Term of 10 years (January 1, 2016-December 31, 2025.)  Four years of Operation and Maintenance for select projects.  If excess revenues remain after all projects and O & M costs are covered, Council may direct funds to capital projects or additional O&M.  A contingency that construction will not begin until successful private fundraising efforts have been achieved. Capital Improvement- Initiative Highlights Street Maintenance  Our street system is our largest and most costly investment.  Includes 1,901 lane miles and 850 miles of sidewalks.  In an average year 135 lane miles are repaired.  Almost half of program’s funding ($6.5 M) comes from ¼ cent tax. 1/4 Cent Revenue 43% General Fund 11% Keep Fort Collins Great‐ 46% 2014 SMP Operating Budget Good Roads Cost Less to Maintain Growth in Fort Collins Road Miles 2000-2013 415 421 437 463 472 476 485 492 500 502 540 540 540 551 400 420 440 460 480 500 520 540 560 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Center Line Miles The Difference: Before & After