The URL can be used to link to this page

Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/01/2016 - FIRST READING OF ORDINANCE NO. 126, 2016, BEING THAgenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY November 1, 2016 City Council STAFF Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 126, 2016, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2017; Adopting the Budget for the Fiscal Years Beginning January 1, 2017, and Ending December 31, 2018; and Fixing the Mill Levy for the Fiscal Year 2017. EXECUTIVE SUMMARY The purpose of this item is to present the Annual Appropriation Ordinance for First Reading. This Ordinance sets the City Budget for the two-year period (2017-18) which becomes the City’s financial plan for the next two fiscal years. This Ordinance sets the amount of $612,825,136 to be appropriated for fiscal year 2017. However, this appropriated amount does not include what is being appropriated by separate Council actions to adopt the 2017 budget for the General Improvement District (GID) No. 1 of $68,107, the 2017 budget for General Improvement District (GID) No. 15 (Skyview) of $1,000, and the Urban Renewal Authority (URA) 2017 budget of $8,328,759. This results in the City having a total operating appropriation of $621,223,002 in 2017. This Ordinance also sets the 2017 City mill levy at 9.797 mills, unchanged since 1991. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION For the seventh time the City has used a budgeting process called Budgeting for Outcomes (BFO). This process is a recommended best practice by the Government Finance Officers Association (GFOA). It is a systematic process driven by goals and performance, to provide information that relates budgeting to planning and results. Its purpose is to better align the services delivered by the City with the things that are most important to the community. The 2017-18 City Manager’s Recommended Budget was delivered to Council on September 1. The Recommended Budget strengthens key services related to transportation, police, fire, parks and recreation and other community priorities such as the environment, economic development and social sustainability, delivering on the commitment made to voters who approved the Keep Fort Collins Great sales tax increase in 2010. The budget reflects community needs and council priorities as identified in the 2016 Strategic Plan. City Council reviewed the Recommended Budget during three Council Work Sessions. In addition, citizens have been able to provide input to Councilmembers through two public hearings. From these discussions and additional information provided by staff, City Council has provided direction and guidance for changes to be incorporated into First Reading of the 2017-18 Biennial Budget. The following table summarizes the Offers not originally included in the Recommended Budget. Agenda Item 12 Item # 12 Page 2 The Utility rate increases in the original City Manager’s Recommended Budget are included, as proposed, in First Reading of the 2017-18 Budget as follows: Utility 2017 2018 Electric 3.45% 1.8% Water 5.00% 5.0% Wastewater 3.00% 3.0% Stormwater 5.00% - Staff is prepared to discuss reduced increases of 3% for both Water and Stormwater rates. This annual Appropriation Ordinance sets the amount of $612,825,136 to be appropriated for fiscal year 2017. It does not include the 2017 adopted budgets for the General Improvement District (GID) No. 1 of $68,107, the General Improvement District (GID) No. 15 (Skyview) of $1,000, and the Urban Renewal Authority (URA) of $8,328,759. This results in the City’s total operating appropriations being $621,223.002 in 2017. Below is a summary of the City’s proposed 2017-18 total operating budget: TOTAL BUDGET (in millions) 2017 2018 Operating $541.4 $547.9 Debt $24.5 $21.8 Capital $55.3 $45.9 Total City Appropriations* $621.2 $615.6 Less General Improvement District (GID) #1 (0.1) (0.4) Less General Improvement District (GID) #15 (Skyview)** (0.0) (0.0) Less Urban Renewal Authority (URA) (8.3) (6.1) Net City Budget $612.8 $609.1 * This includes GID #1, GID #15 and URA which are appropriated in separate ordinances. ** The appropriation for GID #15 (Skyview) is $1,000 which rounds to $0 in millions. Recommended Agenda Item 12 Item # 12 Page 3 CITY FINANCIAL IMPACTS This Ordinance sets the annual appropriation for fiscal year 2017 in the amount of $612,825,136. The Ordinance also sets the City mill levy at 9.797 mills, unchanged since 1991. BOARD / COMMISSION RECOMMENDATION Various City boards and commissions submitted memos to City Council for its consideration of what they believed should be included in the 2017-18 Budget PUBLIC OUTREACH In preparation for First Reading of the 2017-18 Budget, there were two public hearings. Additionally, during the budget development, there were two citizens on each of the seven BFO Teams; as well as significant public outreach conducted to gather citizen feedback from a broad demographic of the community. That latter effort included eight events, reaching 205 people across the community. Additional input was obtained from online tools and 25,000 social media impressions. ATTACHMENTS 1. Powerpoint presentation (PDF) 1 1st Reading of the 2017-18 Budget November 1, 2016 Attachment #1 ATTACHMENT 1 2016 Strategic Plan The 2017-18 Budget Reflects Community Needs and Council Priorities as Identified in the 2016 Strategic Plan 2 Focus on Council and Community Priorities 2017-18 Budget Themes 3 Investing in Neighborhood Livability 2017-18 Budget Themes 4 2017-18 Budget Themes 5 Supporting Public Safety and Increased Police Staffing 2017-18 Budget Themes 6 Maintaining Commitments to Voters with KFCG and Community Capital Improvement Program (Renewal of Building on Basics) 2017-18 Budget Themes 7 Being Good Stewards of City Assets 2017-18 Budget Themes 8 Working toward resiliency with investments in select initiatives to make progress on energy efficiency, as well as other environmental goals 2017-18 Budget Themes 9 Updating Significant Community Plans - City Plan, Transportation Master Plan, Transit Master Plan & Cultural Plan 2017-18 Budget Themes 10 Implementing System Improvements and Continuing to Foster Transparency 2016 BFO Outreach 11 Objective Ask citizens which Offers are the most important to them Target Audiences A wide audience ranging in age, race, gender, ethnicity, income and background including: • General Public • Stakeholder Groups • Businesses • Spanish Speakers • Low Income • Homeless BFO Outreach Methods • Mobile Outreach Booths • Feedback Forms & Info Cards • Online Interactive Budget Tool • Banner Spotlight on fcgov.com • Press Release • Social Media 12 BFO Outreach Results • 8 events • 250 people reached in person • 115 feedback forms • 4,230 budget page views • 25,000 social media impressions • Multiple news articles/columns 13 2017 Residential Typical Bill with rate increases included in Recommended Budget Current Estimated $ % 2016 2017 Increase Increase Electric 700 kWh/mo $68.21 $71.07 $2.86 4.2% Stormwater 8,600 sq.ft. lot, light runoff $14.26 $14.97 $0.71 5.0% Wastewater 4,800 gal/mo $35.07 $36.12 $1.05 3.0% WQA Water 5 kGAL non-summer, 15 kGAL $43.57 $45.75 $2.18 5.0% summer Total Estimated Average Monthly Utility Bill $161.10 $167.91 $6.81 4.2% 14 2017 Estimated Rate Increases Electric Water WW Storm Total 2017 2017 2017 2017 2017 Loveland 6.5% 9.0% 11.0% 9.6% 8.2% Longmont 4.0% 21.0% 3.0% 0.0% 7.2% Boulder 0.0% 8.0% 5.0% 8.0% 3.4% Greeley 0.0% 3.0% 0.0% 8.0% 1.3% Ft Collins 3.45% 5.0% 3.0% 5.0% 3.9% Colorado Springs 3.30% 6.0% 0.0% 0.0% 3.8% Neighboring Rate Increases 15 Budget Overview 2017 Growth Largely From One-Time Capital Projects and inflationary expenses 16 Adopted Budget Proposed Budget 2015 2016 2017 2018 Operating $490.9 $497.0 $541.4 $547.9 Debt 21.4 21.6 24.5 21.8 Capital 44.2 48.0 55.3 45.9 Total City Appropriations $556.5 $566.6 $621.2 $615.6 % change from Prev Yr 10.4% 1.8% 9.6% -0.9% Net City Budget $436.9 $451.6 $493.0 $490.6 % change from Prev Yr 8.9% 3.4% 9.2% -0.5% General Fund $128.9 $133.4 $152.0 $148.9 % change from Prev Yr 8.9% 3.5% 14.0% -2.0% Keep Fort Collins Great $26.6 $28.2 $31.5 $31.8 % change from Prev Yr 8.9% 5.8% 11.8% 0.9% Outcome Guidance Provided 2017 2018 2017 2018 Economic Health Add $317k to Offer 78.5 - ENHANCEMENT: City Plan, Transportation Master Plan and Transit Operating Plan to fully fund at $1.4M 17 300 Neighborhood Liv. & Social Health Fund Offer 27.4 - Human Services Program Funding at $100k per year 100 100 Neighborhood Liv. & Social Health Create and fund a new Offer for Childcare Services at $50k per year (Offer 27.19) 50 50 Neighborhood Liv. & Social Health Create and fund a new Offer for a Solid Waste Inspector (Offer 75.11) 82 82 13 - Transportation Create and fund a new Offer for Transit 365 Day Service - 1/2 funded by 3rd party (Offer 67.13) 750 750 High Performing Govt. Fund Offer 13.3 - Board and Commission Software - 9 Culture & Recreation Create and fund a new Offer for 3 critical Parks/Forestry equipment replacements (Offer 15.13) 47 94 - - Total $129 $185 $ 930 $1,200 Ongoing One-Time New Offers and Modifications Included in 1st Reading based on Council Guidance 17 $ in thousands 2017-18 Biennial Budget Balanced and Fiscally Prudent Budget that Addresses Multiple Community and Council Priorities • Maintains and strengthens critical services related to transportation, transit, police, fire, parks & recreation • Enhances community priorities such as investment in neighborhoods, the environment and social sustainability • Maintains key city infrastructure and invests in prudent capital replacement • Continues the commitment made to voters who approved the Keep Fort Collins Great sales tax increase in 2010 18 Back-Up 19 20 Impact of Limiting Water Rate Increases to 3% Lowers annual revenue increase by $500K Near term (2017-18) offers not funded or reduced 2017 2018 Offer 6.19 - Conservation Coordinator (unfunded) $70K Offer 6.23 - Utility Inspector (unfunded) 85K Offer 6.28 - Water Vulnerability Assessment (unfunded) 250K Offer 6.26 - Underground Electric Supply (reduced) 95K Offer 6.29 - Cathodic Protection (reduced) 1.0M Longer term (2017-26) would reduce revenues by at least $10M and delay capital improvements Impact of limiting rate increases to 3.0% in the Water Fund 21 Impact of Limiting Stormwater Rate Increases to 3% Lowers annual revenue increase by $300K Near term (2017-18) offers not funded 2017 2018 Offer 8.6 - Stream Rehabilitation Program (unfunded in 2017; reduced in2018) $350K $300K Longer term (2017-31) would reduce revenues by $4.5M Alternative - Debt Issuance in 2017 Utilize proceeds to support capital improvements Giving priority to stream restoration Impact of limiting rate increase to 3.0% in the Stormwater Fund Utilities Budget Adjustments UTILITY 2017 Budget $M Budget Change 2016-2017 Comments ELECTRIC $141.2 -1.9% Reduced O&M 10%; Increased capital based on CIP WATER $34.8 -25.2% Reduced O&M 1.9%; Reduced capital from $20M to $9M WASTEWATER $25.5 -10.8% Reduced O&M 1.5%; Reduced capital from $10M to $7M STORMWATER $18.7 12.2% O&M increased 4.4%; Increased capital from $5M to $7M CS&A $17.2 -5.2% Reduced Customer Connections 3.1% and Administration 14.7% Total Utilities $237.4 -6.4% Every manager’s budget was reviewed at the line item level and adjusted based on 2015 actual spend 22 2017 Rate Summary UTILITY 2017 PROPOSED INCREASE NOTES PLANT INVESTMENT FEES ELECTRIC 3.45% Varies by rate class Electric Capacity Fee January 2017 WATER 5% Same for rate classes 2018 WASTEWATER 3% Same for rate classes 2018 STORMWATER 5% Same for rate classes 2018 23 2017 Residential Typical Bill with Stormwater rate increase reduced to 3% Current Estimated $ % 2016 2017 Increase Increase Electric 700 kWh/mo $68.21 $71.07 $2.86 4.2% Stormwater 8,600 sq.ft. lot, light runoff $14.26 $14.69 $0.43 3.0% Wastewater 4,800 gal/mo $35.07 $36.12 $1.05 3.0% WQA Water 5 kGAL non-summer, 15 kGAL $43.57 $45.75 $2.18 5.0% summer Total Estimated Average Monthly Utility Bill $161.10 $167.63 $6.52 4.0% 24 2017 Residential Typical Bill with Stormwater & Water rate increases reduced to 3% Current Estimated $ % 2016 2017 Increase Increase Electric 700 kWh/mo $68.21 $71.07 $2.86 4.2% Stormwater 8,600 sq.ft. lot, light runoff $14.26 $14.69 $0.43 3.0% Wastewater 4,800 gal/mo $35.07 $36.12 $1.05 3.0% WQA Water 5 kGAL non-summer, 15 kGAL $43.57 $44.88 $1.31 3.0% summer Total Estimated Average Monthly Utility Bill $161.10 $166.76 $5.65 3.5% 25 2018 Residential Typical Bill Estimated $ % 2018 Increase Increase Electric 700 kWh/mo $72.35 $1.28 1.8% Stormwater 8,600 sq.ft. lot, light runoff $14.97 $0.00 0.0% Wastewater 4,800 gal/mo $37.20 $1.08 3.0% WQA Water 5 kGAL non-summer, 15 kGAL summer $48.04 $2.29 5.0% Total Estimated Average Monthly Utility Bill $172.56 $4.65 2.8% 26 -1- ORDINANCE NO. 126, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2017; ADOPTING THE BUDGET FOR THE FISCAL YEARS BEGINNING JANUARY 1, 2017, AND ENDING DECEMBER 31, 2018; AND FIXING THE MILL LEVY FOR FISCAL YEAR 2017 WHEREAS, the City Manager has, prior to the first Monday in September 2016, submitted to the City Council a proposed budget for the next ensuing budget term, along with an explanatory message and complete financial plan for each fund of the City, pursuant to the provisions of Article V, Section 2 of the City Charter; and WHEREAS, within ten days after the filing of said budget estimate, the City Council set September 20th and October 4th, 2016, as the dates for the public hearings thereon and caused notice of such public hearings to be given by publication pursuant to Article V, Section 3 of the City Charter; and WHEREAS, the public hearings were held on those dates and persons were given the opportunity to appear and comment on any or all items and estimates in the proposed budget; and WHEREAS, Article V, Section 4 of the City Charter requires that, before the last day of November of each fiscal year, the City Council adopt the budget for the ensuing term by ordinance and appropriate such sums of money as the Council deems necessary to defray all expenditures of the City during the ensuing fiscal year; and WHEREAS, Article V, Section 5 of the City Charter provides that the annual appropriation ordinance shall also fix the tax levy upon each dollar of the assessed valuation of all taxable property within the City, such levy representing the amount of taxes for City purposes necessary to provide for payment during the ensuing fiscal year for all properly authorized expenditures to be incurred by the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. Budget a. That the City Council has reviewed the City Manager's 2017-2018 Recommended Budget, a copy of which is on file with the office of the City Clerk, and has approved certain amendments thereto. -2- b. That the City Manager’s 2017-2018 Recommended Budget, as amended by the Council as described on Exhibit “A” attached hereto and incorporated herein by reference, is hereby adopted in accordance with the provisions of Article V, Section 4 of the City Charter and incorporated herein by reference; provided, however, that the comparative figures contained in the adopted budget may be subsequently revised by City Council as deemed necessary by the City Manager to reflect actual revenues and expenditures for the fiscal year 2018. c. That the adopted budget, as amended, shall be maintained in the office of the City Clerk and identified as "The Budget for the City of Fort Collins for the Fiscal Years Ending December 31, 2017, and December 31, 2018, as Adopted by the City Council on November 15, 2016." Section 3. Appropriations. That there is hereby appropriated out of the revenues of the City of Fort Collins, for the fiscal year beginning January 1, 2017, and ending December 31, 2017, the sum of SIX HUNDRED TWELVE MILLION EIGHT HUNDRED TWENTY FIVE THOUSAND ONE HUNDRED THIRTY SIX DOLLARS ($612,825,136) to be raised by taxation and otherwise, which sum is deemed by the City Council to be necessary to defray all expenditures of the City during said budget year, to be divided and appropriated for the following purposes, to wit: GENERAL FUND $151,998,590 ENTERPRISE FUNDS Golf $3,525,905 Light & Power Operating Total $131,433,792 Capital Projects: Art in Public Places 66,774 Distribution System Imp. & Replace 1,767,000 New Capacity - Circuits 3,952,992 New Capacity - Duct Banks 662,500 Operational Technology 2,490,000 Substation Capital Project 445,000 System Purchases 140,000 Capital Projects Total 9,524,266 Total Light & Power $140,958,058 Storm Drainage Operating Total $11,687,766 Capital Projects: Art in Public Places 50,500 CMMS-Maintenance Management 275,000 Stormwater Basin Improvements 6,700,000 Capital Projects Total 7,025,500 Total Storm Drainage $18,713,266 Wastewater Operating Total $18,402,456 Capital Projects: -3- Art in Public Places 73,010 2015-Bio Gas to CoGen 440,000 CMMS-Maintenance Management 275,000 Collection System Replacement 1,806,000 DWRF Improvements 1,220,000 Pollution Control Cap Replacement 150,000 Water Reclamation Replacement Program 3,135,000 Capital Projects Total 7,099,010 Total Wastewater $25,501,466 Water Operating Total $26,354,127 Capital Projects: Art in Public Places 24,000 CMMS-Maintenance Management 275,000 Distribution System Replacement 3,350,000 Treatment Facility Improvements 650,000 Water Production Replacement Program 1,800,000 Water Quality Capital Replacement Program 1,460,000 Watershed Protection 80,000 Water Meter Replacement & Rehabilitation 800,000 Capital Projects Total 8,439,000 Total Water $34,793,127 TOTAL ENTERPRISE FUNDS $223,491,822 INTERNAL SERVICE FUNDS Benefits $30,002,793 Data & Communications 11,175,948 Equipment 13,978,959 Self Insurance 4,815,491 Utility Customer Service & Administration 17,117,167 TOTAL INTERNAL SERVICE FUNDS $77,090,358 SPECIAL REVENUE & DEBT SERVICE FUNDS Capital Improvement Expansion $2,251,754 Capital Leasing Corporation 4,629,978 Cemeteries 650,254 Cultural Services & Facilities Operating Total $3,793,459 Cultural Plan Update $75,000 Capital Projects - Art in Public Places 151,115 Total Cultural Services & Facilities $4,019,574 General Employees' Retirement $5,227,750 Keeping Fort Collins Great Operating Total $28,875,781 Capital Projects: City Bridge Program 2,234,558 FC Bike Programs 50,000 West Nile Virus 341,510 Capital Projects Total 2,626,068 -4- Total Keeping Fort Collins Great $31,501,849 Museum $1,379,254 Natural Areas 12,720,679 Parking 2,659,014 Perpetual Care 23,828 Recreation 7,137,896 Sales & Use Tax 8,775,678 Street Oversizing 5,445,891 Timberline/Prospect SID 116,000 Transit Services 17,607,810 Transportation Services 24,340,127 SPECIAL REVENUE & DEBT $127,487,336 SERVICE FUNDS CAPITAL PROJECTS FUND Operating - Administrative Charge $162,000 General City Capital Projects: Arterial Intersection Improvement $350,000 Bicycle Infrastructure Improvement 350,000 Bus Stop Improvements 100,000 City Bridge Program 65,702 East Community Park 200,000 Grandview Mausoleum Section 2 50,000 Horsetooth/College Intersection Improvements 500,000 Lemay/Vine Grade Separation Crossing 1,000,000 Lincoln Ave Improvements-1st/Lemay 750,000 Lincoln Avenue Bridge 2,811,000 Lincoln Urban Desgn-1st/Lemay 558,707 Nature in the City 190,111 Northeast Community Park 1,360,000 Pedestrian Sidewalk - ADA 1,000,000 Poudre River Downtown Project 6,332,456 Railroad Crossing Replacement 150,000 Riverside Bridge Replacement. 1,300,223 Sharp Point Connection 150,000 Suniga Improvements-College/Blondel 300,000 Capital Projects Total 17,518,199 Total General City Capital Projects $17,680,199 Community Capital Improvement Affordable Housing Fund $250,000 Arterial Intersection Improvements 350,000 Bicycle Infrastructure Improvements 350,000 Bus Stop Improvements 100,000 Lincoln Ave Improvements 2,811,000 Nature in the City 200,000 Pedestrian Sidewalk - ADA 1,000,000 Poudre River Downtown Project 4,244,000 Capital Projects Total $9,305,000 Total CCIP 1/4 Cent $9,305,000 -5- Conservation Trust Operating Total - Administration & Parks Maint $224,293 Capital Projects: Trail Acquisition/Development 1,336,000 Capital Projects Total 1,336,000 Total Conservation Trust $1,560,293 Neighborhood Parkland Fund Operating Total - Administration $597,538 Capital Projects: Side Hill Neighborhood Park 1,800,000 Trailhead Park 814,000 Capital Projects Total 2,614,000 Total Neighborhood Parkland $3,211,538 TOTAL CAPITAL PROJECTS FUNDS $31,757,030 TOTAL CITY FUNDS $612,825,136 Section 3. Mill Levy a. That the 2017 mill levy rate for the taxation upon each dollar of the assessed valuation of all the taxable property within the City of Fort Collins as of December 31, 2016, shall be 9.797 mills, which levy represents the amount of taxes for City purposes necessary to provide for payment during the aforementioned budget year of all properly authorized expenditures to be incurred by the City. b. That the City Clerk shall certify this levy of 9.797 mills to the County Assessor and the Board of Commissioners of Larimer County, Colorado, in accordance with the applicable provisions of law, as required by Article V, Section 5 of the Charter of the City of Fort Collins. Introduced, considered favorably on first reading, and ordered published this 1st day of November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D. 2016. _________________________________ Mayor ATTEST: _____________________________ City Clerk -6- Passed and adopted on final reading on the 15th day of November, A.D. 2016. _________________________________ Mayor ATTEST: _____________________________ City Clerk EXHIBIT A CHART SUMMARIZING CITY COUNCIL AMENDMENTS TO CITY MANAGER’S RECOMMENDED 2017-2018 BUDGET