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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/26/2017 - 2018 BUDGET REVISIONSDATE: STAFF: September 26, 2017 Lawrence Pollack, Budget Director Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION 2018 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 2018 Budget before the 2018 Annual Appropriation Ordinance goes to First Reading on October 17 and Second Reading on November 7. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED What questions or feedback does the City Council have on the City Manager’s Recommended Revisions to the 2018 Budget? BACKGROUND / DISCUSSION OVERVIEW: The 2018 Budget Revisions include both (1) reductions to 2018 ongoing expenses to align them with a decreased 2018 Sales Tax forecast and (2) additional Offers primarily funded by available one-time revenue. The following are key objectives which the 2018 Budget Revision recommendations are intended to address: • Matching appropriations for ongoing expenditures to current ongoing revenue estimates • Council priorities • Fiduciary responsibilities and fund balance requirements • High-priority projects and other needs not known at the time of the adoption of the 2017-18 Budget The recommended 2018 Budget Revisions meet these goals. Recommended revisions to the 2018 Budget must also meet one of the following criteria: • The request is specifically directed by the City Manager or City Council • The request is related to a previously approved Offer where either unanticipated revenue shortfalls or unforeseen expenses are significantly impacting the delivery of that program or service REVENUE: Overall, most City revenues are coming in at, or above, the 2017 budget except for Sales Tax and revenue generated by the Municipal Court. Although total revenue for 2017 is on track to support 2017 expenses, the 2017 Sales Tax base, upon which 2018 growth is calculated, will be lower than budgeted. 2018 Sales Tax growth is still forecasted at 3%, but since that is on a lower base it is necessary for the City to reduce ongoing expenses in 2018 to align with the reduced forecast for 2018 Sales Tax revenue. The decreased forecast for Sales Tax revenue primarily impacts the General Fund and Keep Fort Collins Great (KFCG) Fund; but also impacts the funds associated with the three dedicated quarter-cent sales tax initiatives. Additionally, the reduced revenue forecast from Municipal Court operations requires additional reductions in 2018 ongoing expenses. The Municipal Court revenue is all within the General Fund. Use Tax continues to be strong in 2017; but due to economic uncertainties, the forecast for 2018 remains at $22M. For Property Tax, the City has been notified by Larimer County that the City’s distribution is anticipated to be about $2.1M higher in 2018 than had been budgeted. One-third of that amount is ongoing revenue to the City with the balance being available for one-time uses in 2018. In 2019, the remaining two-thirds will go to the September 26, 2017 Page 2 Poudre Fire Authority per the IGA with the City. Fund balances are also strong with non-restricted reserves available to fund one-time expenses. Overall, modest revenue growth is still forecasted for 2018. Council raised a question about General Fund revenue generated from development review activity and if it is compensating for the shortfall in Sales Tax. Year to date development review is $280k over budget which is less than 20% of the total General Fund revenue over budget. Staff is analyzing the revenue and expenses from development review activity back to 2008 and will share the results with Council via a memo when that analysis has been completed. ONGOING EXPENSE REDUCTIONS: The combined targeted reduction due to the reduced forecasts for Sales Tax and Municipal Court revenue is $2.9M Citywide, after factoring other compensating factors like the increase in ongoing Property Tax revenue and use of $1.0M of the $4.4M set aside for contingency in the 2017-18 Budget. The combined reduction in the General Fund and Keep Fort Collins Great Fund is about $2.1M as shown in the chart below. The combined impact to the City’s three quarter cent dedicated Sales Tax is about $800k and will be offset by available ongoing revenue in those funds that was not used in the 2017-18 Budget. To address this projected shortfall, ongoing expenses will be aligned with reduced ongoing revenue forecasts through reductions made in each Service Area as outlined below (Attachment 1 contains the detail of each of those proposed reductions). Since the reduced revenue associated with the three dedicated quarter cent sales taxes will be compensated for as described above, the focus of the reductions for 2018 is within funding from the General Fund and the KFCG Fund. Proposed 2018 Reductions by Service Area: September 26, 2017 Page 3 The above proposed reductions in the General Fund and KFCG Fund are more than the target of $2.1M by about $230k. This additional reduction in ongoing expenses can then be allocated to the recommended 2018 Budget Additions that are ongoing in nature. The remainder of the additions for 2018 is all funded by using only a portion of our available reserves which are intended for one-time uses. The table below shows available reserves and other revenue that can be used to fund the 2018 Budget Revisions from major funds and those requesting additions to the 2018 Budget. Overall, fund balances are healthy. Summary of Available Reserves and Revenue: ($ millions) General Fund Ongoing General Fund One- Time KFCG Natural Areas Capital Expansion - Comm Parkland Neighbor- hood Parkland Transpor- tation Other Utilities TOTAL Reserves - 2017-18 Budget Contingency $ 4.4 $ 4.4 Reserves - Council Priorities Set Aside 1.8 1.8 Reserves - 2016 Year-end Available Balance 6.9 6.3 13.5 2.3 1.0 6.3 - 34.8 71.1 Reserves - 2017 Supplemental Use of Reserves (2.6) (0.9) (10.8) - (0.8) - (1.0) (16.0) Other Available or Unanticipated Revenue 0.1 2.5 1.4 0.2 4.3 Lincoln Avenue Offer Funds 0.3 0.5 0.8 Reduced Police Training Facility Design 0.3 0.3 TOTAL $ 0.1 $ 11.1 $ 5.4 $ 2.7 $ 4.8 $ 2.4 $ 6.0 $ 0.2 $ 33.8 $ 66.6 The reserves and revenue above are available to fund the recommended additions to the 2018 Budget. The table below summarizes those proposed additions; Attachment #1 contains the details of those recommended Offers. The majority of the proposed 2018 additions are for capital projects and equipment replacement. Summary of 2018 Recommended Additions: ($ millions) General Fund Ongoing General Fund One- Time KFCG Natural Areas Capital Expansion - Comm Parkland Neighbor- hood Parkland Transpor- tation Other Utilities TOTAL September 26, 2017 Page 4 The mid-cycle revision process is different from the biennial Budgeting for Outcomes process as there is no review by BFO Teams. 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 available fund reserves were carefully considered when making these recommendations. ATTACHMENTS 1. 2018 Revision document (PDF) 2. Powerpoint Presentation (PDF) Attachment #1 2018 Budget Revisions ‐Reduction & Addition Offers September 26, 2017 2018 BUDGET REDUCTIONS & ADDITION REQUESTS TABLE OF CONTENTS 2018 BUDGET REDUCTIONS ......................................................................................... 1-34 2018 BUDGET ADDITIONS ............................................................................................ 35-58 PROPOSED 2018 BUDGET REDUCTIONS TABLE OF CONTENTS SUMMARY OVERVIEWS Proposed Reductions Summary ........................................................................................ 3 PLANNING, DEVELOPMENT & TRANSPORTATION Engineering: Railroad Crossing Maintenance funding elimination ................................... 4 Streets: Street Maintenance Program - Reduction of services ......................................... 5 OPERATIONS SERVICES Reduce General Facility Maintenance .............................................................................. 6 Reduce Parking Lot Maintenance ..................................................................................... 7 Reduce Facility Paint Projects by 50% .............................................................................. 8 Reduce budget for utilities by 2.5% ................................................................................... 9 Reduce window washing by 50% ...................................................................................... 10 Delay HVAC Replacement at EPIC and Senior Center .................................................... 11 Vacant Position Elimination - Bus Cleaner ........................................................................ 12 Vacant Position Elimination - Facilities Project Manager .................................................. 13 POLICE SERVICES Administration: Reduction of Training Funds in the Office of the Chief ............................. 14 Patrol: Reduction of Training and Vehicle Repair in Patrol ............................................... 15 Police Information Services: Reductions in Dispatch and Transcription Services ............ 16 Investigations: Reduced Detective/Advocate Training, Reduced Vehicle Repair ............. 17 COMMUNITY & OPERATIONS Cultural Services: Reduction of Administrative expenses .................................................. 18 Parks: Reduction of Parks variable hourly healthcare ....................................................... 19 Recreation: Reduction of Recreation programs and activities ........................................... 20 SUSTAINABILITY SERVICES Social Sustainability: Reduce support to various programs ............................................... 21 Environmental Services: Reduced support to various programs ...................................... 22 Environmental Services: Reduce support for the Timberline Recycling Center ................ 23 Sustainability Services Admin: Reduce support for Enviro Portal Web ............................ 24 Economic Health Office: Reduce support to various programs ........................................ 25 INFORMATION & EMPLOYEE SERVICES Human Resources: Cancel Skillsoft Online Courses Contract in 2018 ............................. 26 Information Technology: Reduction for IT Training and Innotas Test Environment ......... 27 Information Technology: Reduce/Right Size Managed Print Services .............................. 28 FINANCIAL SERVICES Budget: 3rd Party Training and Education Services Reduction ........................................ 29 Finance Administration: Reduce Enhanced Funding for the Low Income Rebate Program ................................................................................................................ 30 Page 1 of 58 PROPOSED 2018 BUDGET REDUCTIONS TABLE OF CONTENTS EXECUTIVE SERVICES City Clerk’s Office: Reduction of licensing, administrative and election expenses ........ 31-32 City Council: Reduced discretionary expenses .................................................................. 33 City Manager’s Office: Reduced support for programs and sponsorships ......................... 33 LEGAL SERVICES City Attorney’s Office: Reduce Hourly Law Clerk………………………… .......................... 34 Page 2 of 58 Department Out come Offer # Budget Reduction General Fund TOTAL KFCG TOTAL Planning, Dev & Trans Engineering TRAN 1.11 Railroad Crossing Maintenance funding elimination ($150,000) ($150,000) Streets TRAN 60.1 Street Maintenance Program - Reduction of services (625,000) (275,000) (900,000) Sub-Total ($775,000) ($275,000) ($1,050,000) Operation Services Operation Services HPG 19.1/19.2 Op Svcs - Reduce General Facility Maintenance ($15,000) ($15,000) Operation Services HPG 19.1/19.2 Op Svcs - Reduce Parking Lot Maintenance (40,000) (40,000) Operation Services HPG 19.1/19.2 Op Svcs - Reduce Facility Paint Projects by 50% (40,000) (40,000) Operation Services HPG 19.1/19.2 Op Svcs - Reduce budget for utilities by 2.5% (50,000) (50,000) Operation Services HPG 19.1/19.2 Op Svcs - Reduce window washing by 50% (18,000) (18,000) Operation Services HPG 19.3/19.4 Op Svcs - Delay HVAC Replacement at EPIC and Senior Center (132,000) (132,000) Operation Services HPG 19.1 Op Svcs - L/T vacancy cut - Bus Cleaner (50,000) (50,000) Operation Services HPG 19.2 Op Svcs - L/T vacancy cut - Facilities Project Manager (116,000) (116,000) Sub-Total ($461,000) $0 ($461,000) Police Services Administration SAFE 29.8 Reduction of Training Funds in the Office of the Chief ($1,000) ($1,000) Patrol SAFE 29.10/29.15 Reduction of Training and Vehicle Repair in Patrol (8,000) (72,900) (80,900) Police Information Svcs SAFE 29.1/29.47 Reductions in Dispatch and Transcription Services (185,600) (185,600) Investigations SAFE 29.4/29.5 Reduced Detective/Advocate Training, Reduced Vehicle Repair (18,500) (11,000) (29,500) Sub-Total ($213,100) ($83,900) ($297,000) Comm & Op Services Cultural Services C&R 56.1 Reduction of administrative expenses ($33,400) ($33,400) Parks C&R 15.1 Reduction of Parks variable hourly healthcare (132,710) (48,890) (181,600) Recreation C&R 65.1/65.2 Reduction of Recreation programs and activities (32,000) (32,000) Sub-Total ($166,110) ($80,890) ($247,000) Sustainability Services Social Sustainability NLSH 27.1 SSD - Reduced support to various programs ($10,000) ($10,000) Environmental Services ENV 26.1 ESD - Reduced support to various programs (21,000) (21,000) Environmental Services ENV 26.2 ESD - Reduce Support for the Timberline Recycling Center 0 (20,000) (20,000) Sustainability Services Admin ENV 24.1 SSA - Reduce annual operational support for Enviro Portal Web (10,000) (10,000) Economic Health Office ECON 25.1 EHO - Reduced support to various programs (24,000) (4,000) (28,000) Sub-Total ($65,000) ($24,000) ($89,000) Info & Employee Svcs Human Resources HPG 42.1 HR - Cancel Skillsoft Online Courses Contract in 2018 ($40,000) ($40,000) Information Technology HPG 9.1 Reduction for IT Training and Innotas Test Environment (22,000) (22,000) Information Technology HPG 9.1 Reduce/Right Size Managed Print Services (19,000) (19,000) Sub-Total ($81,000) $0 ($81,000) Financial Services Budget HPG 10.8 3rd Party Training and Education Services Reduction ($25,000) ($25,000) Finance Administration HPG 11.2 Reduce Enhanced Funding for the Low Income Rebate Program (34,950) (34,950) Sub-Total ($59,950) $0 ($59,950) Executive Services City Clerk's Office HPG 13.1/13.2 Reduction of licensing, administrative and election expenses ($17,600) ($17,600) City Council HPG 22.1 Reduced discretionary expenses (1,500) (1,500) City Manager's Office HPG 22.2 Reduced support for programs and sponsorships (20,600) (20,600) Sub-Total ($39,700) $0 ($39,700) Legal Services City Attorney's Office HPG 62.1 Reduce Hourly Law Clerk ($8,000) ($8,000) Sub-Total ($8,000) $0 ($8,000) Municipal Court HPG None $0 $0 $0 Grand TOTAL ($1,868,860) ($463,790) ($2,332,650) Proposed Reductions for the 2018 Budget - By Service Area Page 3 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Transportation Contact: Svc Area: Planning, Dev & Transportation Related Offer #: 1.11 Department: Engineering Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 400 - Capital Projects Fund ($150,000) ($150,000) Engineering - Railroad Crossing Maintenance funding elimination Chrisite White To eliminate the annual funding of railroad crossing maintenance in the amount of $150,000. This would be a "stop-doing" item as were are not required to fund railroad maintenance however this has been an effective mechanism to make timely repairs especially at "key" intersections (Lemay and Riverside for example). One time funding could be sought for intersection improvements or we could wait until the railroad was able to complete the maintenance at these intersections. Page 4 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Transportation Contact: Svc Area: Planning, Dev & Transportation Related Offer #: 60.1 Department: Streets Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 292 - Transportation Services Fund ($625,000) ($625,000) 254 - Keep Fort Collins Great Fund ($275,000) ($275,000) Total ($900,000) ($900,000) Street Maintenance Program - Reduction of Services Becky Sullivan This offer reduction is to reduce the subsidy to Street Maintenance by $900,000 annually ($625,000 from the general fund and $275,000 from KFCG). By evaluating our current level of service condition report this funding could be reduced for 5 years without a reduction to pavement conditions. A minimal reduction in the level of service standard for the first 5 years. It would necessary to increase annual funding beginning in 2020 by 8% (or at least $700,000) in order to maintain an approximate middle level of service B pavement conditions in 2030. Annual 8% funding increases needed for subsequent years range from $1,300,000 -11,500,000. This estimate does not account for maintenance related to new streets that may be added through new development and considered a 5% annual cost of materials index. Changes to those conditions may require additional funding. Page 5 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Community & Operation Services Related Offer #: 19.1, 19.2 Department: Operation Services Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($15,000) ($15,000) Ops Svcs - Reduction of General Facility Maintenance Stan Welsch This reduction will reduce general facility maintenance by $15,000. Reducing general facility maintenance may impact the appearance of one or more of the 96 buildings that Operation Services maintains. Examples of general maintenance are flooring replacement, door hardware, repair instead of replace plumbling valves, etc. This reduction could impact several divisions including aquatics, HVAC, general building maintenance, energy management, or electrical. Page 6 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Community & Operation Services Related Offer #: 19.1, 19.2 Department: Operation Services Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($40,000) ($40,000) Op Svcs - Reduce Parking Lot Maintenance Stan Welsch This includes a 50% reduction patching, crack sealing, and striping in the General Fund building parking lots. By delaying parking lot maintenance, it will increase the cost in subsequent years. Safety issues and emergency repairs will still be addressed Page 7 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Community & Operation Services Related Offer #: 19.1, 19.2 Department: Operation Services Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($40,000) ($40,000) Op Svcs - Reduce Facility Paint Projects by 50% Stan Welsch This reduction is to reduce our normal annual maintenance painting by 50%. This painting is typically done during recreation facilities "shut-downs" or identified during routine inspections. Reducing normal maintenance painting by 50% will have an aesthetic impact but will not affect the function or performance of the facility. We will just paint the most critical or unacceptable areas. Page 8 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Community & Operation Services Related Offer #: 19.1, 19.2 Department: Operation Services Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($50,000) ($50,000) Op Svcs - Reduce Budget for Utilities by 2.5% Stan Welsch Reduce budget for utilities by 2.5%. This offer would utilize savings from energy initiatives, lower rates, and mild weather. This reduction has very little or no impact unless there is an unexpected increase in rates or unseasonable heating or cooling extremes. Page 9 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Community & Operation Services Related Offer #: 19.1, 19.2 Department: Operation Services Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($18,000) ($18,000) Op Svcs - Reduce window washing by 50% Stan Welsch Reduce window washing by 50%. The schedule for window washing varies according to the type and use of the building. This reduction to our window washing by 50% will have an aesthetic impact but will not affect the function or performance of the facility. Citizens will likely notice the difference at our recreation and cultural facilities which are done more frequently. Page 10 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Community & Operation Services Related Offer #: 19.3, 19.4 Department: Operation Services Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($132,000) ($132,000) Delaying scheduled replacement could result in higher maintenance costs, potential downtime for maintenance/emergency replacement and lost energy savings from more modern equipment. Maintenenace Staff will contine repairing these units with limited parts availablity. However, if either of these units fail the department will make ensure that funding is found to replace if necessary. Op Svcs - Delay HVAC Replacement at EPIC and Senior Center Stan Welsch This reduction delays the replacement of two mechanical units that have reached the end of their useful life. These units serve the Senior Center gym and the lobby/admin area at EPIC. The Senior Center unit is 22 years old, while the EPIC unit is 30 years old, so there is risk with delaying these replacements. Page 11 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Community & Operation Services Related Offer #: 19.1 Department: Operation Services Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 601 - Equipment Fund ($49,656) ($49,656) FTE (if part of the offer, identify the position and salary): # (1.0) Bus Cleaner (position ID # 7076-003) Reduction - Bus Cleaner Operation Services Stan Welsch This reduction eliminates a vacant Bus Cleaner in Operation Services. This function has been contracted out to a private custodial contractor. However the intent was to repurpose this position to a Maintenance Worker in order to staff a night shift for the Transfort expanded 365 day service. It will be difficult to fill with an hourly position. If this position is not able to be re-purposed, it will impact the level of service Transfort receives for the expanded service. Additional overtime will be neccessary. Please note that this position is funded by charges to Transfort. If no position exists, then no expense or revenue occurs. Title Page 12 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Community & Operation Services Related Offer #: 19.2 Department: Operation Services Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($115,623) ($115,623) FTE (if part of the offer, identify the position and salary): # (1.0) Facilities Projecty Manager (position ID # 6418-003) This position is currently being filled with an employee that will have been contractual for two years and will need to be converted to a classified FTE. Please note that this position is funded by charges to the department that uses this service. If no position exists, then no expense or revenue occurs. By eliminating this postion, future projects may be delayed. Reduction - Project Manager Operation Services Stan Welsch This reduction eliminates a vacant Project Manager in Operation Services. Title Page 13 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Safe Community Contact: Svc Area: Police Services Department: Office of the Chief Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($1,000) $0 ($1,000) FCPS - Reduction of Training Funds in the Office of the Chief Erik Martin 29.8 Police Office of the Chief and Administration: Reduction of Training Funds ($1,000). This will reduce the training funds available for Internal Affairs, Finance, Public Communications, Crime Analysis, and Training personnel. Page 14 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Safe Community Contact: Svc Area: Police Services Department: Patrol Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($8,000) ($8,000) 2) 254 - Keep Fort Collins Great Fund ($72,900) ($72,900) ($80,900) $0 ($80,900) FCPS - Reduction of Training and Vehicle Repair in Patrol Erik Martin 29.10 Police Patrol Services: Reduction of Training Funds ($9,500) 29.15 Police Patrol Fleet Fuel and Maintenance: Vehicle Repair ($71,400) This will reduce police officer training with outside organizations that focuses on first-line supervisor training, foreign language training, and skills. It will cut funds for vehicle maintenance that have been underused due to a newer Patrol fleet. Page 15 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Safe Community Contact: Svc Area: Police Services Department: Police Information Services Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($185,600) $0 ($185,600) FCPS - Reductions in Dispatch and Transcription Services Erik Martin 29.1 Police Information Services: Elimination of Dispatch Emergency Medical Dispatch Quality Assurance ($20,000), Close Public access to Records on Sunday and Reduce hours on Saturday ($6,000 of Security), Reduce Dispatcher Training ($2,000), and Reduce Technical Projects Funding ($37,600) 29.47 Enhancement- Police Report Transcription Service: Elimination of Transcription Service ($120,000) This will eliminate hourly quality assurance auditors and cause Dispatch to seek free/lower cost outside services with some loss of review. The Records counter would be closed to the public on Sundays and have reduced hours on Saturdays allowing for savings on security officers, but diminishing service during the off-business hours of citizens seeking to receive or make reports. This will reduce some of the funding available to send Dispatchers to outside training on various topics. Funds needed for maintaining many varied technical/electronic systems would be reduced. This will negatively affect support for audio/visual systems, cameras, video walls, phones, tablets, and other building infrastructure. The transcription of hundreds of reports has helped reduced delays and backlogs of several months. Eliminating this service may cause a return to those delays and backlogs while increasing the stress and OT requirements on existing Records staff members. Technological solutions are being evaluated too. Page 16 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Safe Community Contact: Svc Area: Police Services Department: Investigations Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($18,500) $0 ($18,500) 2) 254 - Keep Fort Collins Great Fund ($11,000) $0 ($11,000) ($29,500) $0 ($29,500) FCPS - Reduced Detective/Advocate Training, Reduced Vehicle Repair Erik Martin 29.4 Police Criminal Investigations Division Programs and Services: Reduced Detective/Advocate Training ($9,500) 29.5 Police Criminal Investigations Fleet Fuel, Lease Purchase, and Maintenance: Reduced Vehicle Repair ($20,000). This reduction will have a negative affect on detective and victim advocate training with outside organizations that focuses on interviewing, sexual assault cases, homicide cases, and many others. It will also cut funds for vehicle maintenance that have been recently underused due to a newer/fuel efficient detective vehicle fleet. Page 17 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Culture & Recreation Contact: Svc Area: Community & Operation Services Related Offer #: 56.1 Department: Cultural Services Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 273 - Cultural Services & Facilities ($33,400) ($33,400) Cultural Services Reduction of Administrative Expenses Vincent Kitch This offer will reduce operating expenses at three main facilities - Lincoln Center, Gardens on Spring Creek and the Museum of Discovery. Reduction will include less advertising, supplies, equipment, and conference and travel. The Gardens and Museum of Discovery will reduce expenses by $5,000 each, and the Lincoln Center will reduce expenses by $23,400. These reductions will limit the department's ability to expand programming or current community events. This will impact attendance, usage and revenue generation. Page 18 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Culture & Recreation Contact: Svc Area: Community & Operation Services Related Offer #: 15.1 Department: Parks Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($132,710) ($132,710) 2) 254 - Keep Fort Collins Great Fund ($48,890) ($48,890) Total ($181,600) $0 ($181,600) Reduction of Parks Variable Hourly Healthcare Dawna Gorkowski This offer will reduce the amount appropriated in 2018 for variable hourly healthcare. Reducing the variable hourly healthcare budget will reduce the number of long term hourly employees Parks will be able to hire for its seasonal maintenance. The effect will be increased time spent by classified staff to hire, train and manage additional hourly employees. Turnover is higher in this classification of employee, they are less dependable, and less efficient than longer term hourly employees. This will reduce the time highly trained classified employees are in the field, which will delay maintenance and fixing technical problems, as well as projects in the Park system. Page 19 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Culture & Recreation Contact: Svc Area: Community & Operation Services Related Offer #: 65.1, 65.2 Department: Recreation Offer Reduction Description and Impact: Ongoing One-Time Total Expense Fund(s): 1) 254 - Keep Fort Collins Great Fund ($32,000) ($32,000) Reduction of Various Recreation Programs and Activities Bob Adams Offer # Option #1 Percent of Subsidy - On-Going Program 2018 Approved Budget Proposed Reduction Amount % of Program Reduction Total Cost Savings Impact 65.1 SC Pool - Variable benefits KFCG 104,895 (11,364) -11% 11,364 Reduced number of ACA eligible employees in 2018, no negative impact to aquatic program 65.1 Mulberry Pool - KFCG 228,350 (3,400) -1% 3,400 Remove allowance for equipment replacement SubTotal 65.1 14,764 65.2 Social Opportunities - KFCG 82,978 (4,872) -6% 4,872 Reduced food budget for programs 65.2 NACC Facility Maint - KFCG 130,961 (4,000) -3% 4,000 Remove allowance for equipment replacement 65.2 NACC Programs - KFCG 149,521 (8,364) -6% 8,364 Reduction in programing for youth and Ancianos SubTotal 65.2 17,236 32,000 Total Reduction KFCG Program Areas include ARO, all Mulberry Pool operations, NACC facility front desk, maintenance and youth programming, and Senior Center pool, social programs, outdoor recreation, and rentals. Page 20 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Neighborhood Livability & Social Health Contact: Svc Area: Sustainability Services Related Offer #: 27.1 Department: Social Sustainability Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($10,000) ($10,000) SSD - Reduced Support to Various Programs Sue Beck-Ferkiss This reduction offer will result in the Social Sustainability Department (SSD) providing less resources for technical assistance, department operations and partner programs. The reduction of $10k from SSD would result in the Social Sustainability Department (SSD) being unable to do the following: a) Team development and support (retreat, team building, etc.) – which will have an impact on change management during a time of turnover in the department. b) Consulting or assistance for prep work for development of a Human Service/Homelessness Strategic Plan, which may delay scoping. c) Immediate needs of community partners (e.g. floor repair at Rescue Mission in the past), which will require seeking external funding to support. d) Assistance with facilitation/consulting of community dialogues of current issues (e.g. community dialogue on homelessness in the past) Page 21 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Environmental Health Contact: Svc Area: Sustainability Services Related Offer #: 26.1 Department: Environmental Services Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($21,000) ($21,000) Reduction - 26.1 Environmental Services Department Lucinda Smith This reduction offer will result in the Environmental Services Department (ESD) stopping a number of activities, described below: (a) Stop support for FortZED - $10,000 savings (b) Reduce support for air quality technical assistance/monitoring - $5,000 savings; (c) Eliminate Mindful Movies - public education/discussion series - $1,000 savings; (d) Reduce outreach done to support Road to Zero Waste (videos, social media ads, etc.) - $ 5,000 savings The above reductions will have the following impacts: (a) Cutting $10K would completely defund Fort ZED. Web site transition could occur with remaining 2017 dollars. Future partnerships with private sector on CAP-related activities could be identified through the Climate Economy Action Plan, City as a Platform, Innovation Summit, etc. (b) $20K is provided annually to the AQ program to support monitoring/technical needs. In the past this has funded oil and gas sampling, Night Sky monitoring, the Ozone bench, and Web site tech improvements such as visibility monitoring data. Reducing the pool will lessen opportunities for these types of actions. (c) This would stop the environmental sustainability public movie / discussion series that the City offers in conjunction with CSU annually. (d) This would reduce the amount of outreach done on the RTZW, including things such as videos, messaging and campaigns, and social media (e.g. Facebook ads) Page 22 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Environmental Health Contact: Svc Area: Sustainability Services Related Offer #: 26.2 Department: Environmental Services Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 254 - Keep Fort Collins Great Fund ($20,000) ($20,000) ESD - Reduce Support for the Timberline Recycling Center Lucinda Smith This reduction offer will lower the amount of annual operational support for the Timberline Recycling Center as follows, (a) Reduce annual support from $337,600 by $20,000 - $20,000 savings; The above reduction will have the following impacts: (a) Usage at the Timberline Recycling Center is continuing to grow. If usage reaches modeled usage levels in 2018 or if usage for the higher cost items for diversion such as yard trimming grows at a great-than-anticipated proportion, the City might not be able to cover the agreed upon contributions. Staff feels this amount of reduction is reasonable but significant further cutting presents a risk because forecasting future usage is challenging during the start-up period when new sites such as the TRC become established. Page 23 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Sustainability Services Related Offer #: 24.1 Department: Sustainability Services Admin Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($10,000) ($10,000) SSA - Reduce annual operational support for Enviro Portal Web Jackie Kozak Thiel This reduction offer will lower the amount of annual operational support for Enviro Portal Web site by eliminating funding to develop new materials for the Web site - $10,000 savings. The above reduction will have the following impacts: (a) The Enviro Web Portal was established in 2013 to offer a one-stop-shop for citizens looking for information on environmental sustainability program and resources. (See http://www.fcgov.com/enviro/). Funding has been made available annually to support content development and has been used in the past to fund Full Circle vides (30 minute Sustainability talk show) and CAP-related videos. Removing this funding will eliminate additional opportunities to get CAP-related Web-based messaging out to the public. Page 24 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Economic Health Contact: Svc Area: Sustainability Services Related Offer #: 25.1 Department: Economic Health Office Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($24,000) ($24,000) 2) 254 - Keep Fort Collins Great Fund ($4,000) ($4,000) ($28,000) $0 ($28,000) Reduction - 25.1 Economic Health Office Josh Birks This reduction offer will result in the Economic Health Office (EHO) stopping a number of activities, described below: (a) Stop the City's support of Winter Markets - $15,000 savings; (b) Reduce support for the UniverCity Connections partnership from $14,000 to $5,000 - $9,000 savings; (c) Reduce Conference & Travel funds - primarily remove support of out-of-town Corporate Headquarters visits - $4,000 savings. The above reductions will have the following impacts: (a) The City's support of the Winter Markets was instrumental in expanding operations by 3-4 days, essentially an additional Winter Market each month during the season. Therefore, stoping our support may lead to a reduction of 3-4 days of operations for the Winter Market. This could result in sales tax reduction due to fewer sales. (b) Reducing support of UniverCity Connections would mean that our partners would have to carry a greater load of the cost or the overall scope of the partnership would have to be reduced proportionally. UniverCity Connections continues to act as a useful convenor for larger community issues, such as growth, affordable housing, etc. (c) These travel funds are used to visit the Corporate Headquarters of out-of-town companies and attend other training opportunities. Reducing these dollars would mean less face-to-face interaction with these companies and less training opportunities for EHO staff. Page 25 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Information & Employee Svcs Related Offer #: 42.1 Department: Human Resources Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($40,000) ($40,000) HR - Cancel Skillsoft Online Courses Contract in 2018 Teresa Roche Cancel Skillsoft Online Courses Contract in 2018 Skillsoft is a third party platform that costs $40k a year and allows us to make available 38 online courses for all employees to access learning 24/7 365 days a year. In reviewing the past 12 months of utilization, 140 employees have accessed a course, and only 103 have successfully completed their online course. We are not seeing the return on these dollars spent. If and when we prioritize content for individual development that aligns with CIty strategies, we should consider other strategies. Some strategies are free, such as MOOC's or others might cost less to offer particularly if we focus what to provide based on greatest need. And if we do online, we need to ensure greater utilization by building a support system around this type of offering. Page 26 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Information & Employee Svcs Related Offer #: 9.1 Department: Information Technology Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($22,000) ($22,000) Reduction for IT Training and Innotas Test Environment Dan Coldiron This offer will reduce $15,500 from IT's Conference and Training budget. This funding was intended for the additional training needs for the newer ERP, Data Management, and E-Gov staff where there has been higher than normal turnover. This offer will also reduce $6,500 from IT's annual Innotas time tracking software renewal. This funding is specifically for the "Sandbox" testing and training environment within Innotas. Reducing the Conference and Training budget will require prioritization of the remaining funds in order to focus on the development of newly hired staff and optimization of training efforts in general. It is expected that reasonable results will be achieved. Eliminating the Innotas test environment will reduce the R&D effort to learn and test new applications within Innotas' time tracking capabilities to further enhance how the Department can enhance the use of the software beyond its current capabilities. This reduction will have no impact to existing service levels. Page 27 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Information & Employee Svcs Related Offer #: 9.1 Department: Information Technology Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($19,000) ($19,000) IT - Reduce/Right Size Managed Print Services Dan Coldiron This offer will rightsize the ongoing costs for Managed Print Services (MPS). The estimated costs for this service was originally $50,000 per year in 2017 and 2018 where the actual cost is approximately $31,000 per year. The $19,000 reduction rightsizes the annual costs for this service to the true cost of the contract based on actuals from the first half of 2017. There will be no impact to the organization with MPS services remaining at their current levels in 2018. Page 28 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Financial Services Related Offer #: 10.8 Department: Budget Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($25,000) ($25,000) Finance 3rd Party Training and Education Services Reduction Mike Beckstead Offer 10.8 - ENHANCEMENT: 1.0 FTE - Process Analyst supporting new Continuous Improvement Program was approved in the 2017-18 Biennial Budget. That Offer included a commitment to train over 50% of the City organization over a five year period on continuous improvement tools and methodologies. This program has been implemented and is called FC Lean. The Offer include $30,000 per year for a outside entity to provide the training to City staff. However, we have since developed our own training curricula and are delivering that training to the organization with staff in the FC Lean program. Accordingly, the budget for that training and education can be reduced ongoing. There will be no negative impact to City staff or the community from this reduction. Page 29 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Financial Services Related Offer #: 11.2 Department: Finance Administration Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($34,950) ($34,950) Finance - Reduce Enhanced Funding for the Low Income Rebate Program Mike Beckstead Offer 11.2 - ENHANCEMENT: Low Income, Senior and Disabled Rebate Program Additional Funding was approved in the 2017-18 Biennial Budget to increase the money available to support this important City program. Since a high point in 2014 which culminated in participation of 1,556 citizens benefitting from the program, participation dropped in 2015 and then again in 2016 to 1,300 citizens, despite increased outreach efforts. Analysis has identified a few drivers of that decline which staff is working to address to increase participation levels, but until that increases, the enhanced level of funding is not currently needed. Depending on the increased level of demand realized in 2017 a similar Offer for ehanced funding could be submitted for the 2019-20 budget. There will be no negative impact to citizens from this reduction unless participation rates for 2018 increase above the high water mark of 2014. If that would occur, a separate specific appropriation for the increase would be requested in late 2018. Page 30 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Executive Services Related Offer #: 13.1 Department: City Clerk's Office Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($12,000) ($12,000) City Clerk Reduction of Licensing and Administrative Expenses W Winkelmann/R Knoll This reduction offer includes: (a) Reduction of funds available for the contractual Marijuana Licensing Authority and codification of City Code/Land Use Code/Traffic Code ($5000) (b) Reduction of funds for outside reproduction ($5000) (c) Reduction of funds for office supplies ($1000) (d) Reduction of postage and office supplies for passport program ($1000) The above reductions will have the following impacts: (a1) The services of the Marijuana Licensing Authority are driven by the number and types of applications received and disciplinary actions taken. It is not possible to predict the need in 2018. This reduction may have no impact. (a2) A reduction in codification services may cause delay in codification of adopted ordinance. City staff has requested more frequent codification to lessen the potential for using outdated Code language pending codification of new ordinances. This reduction is contrary to the needs expressed by Code book users. (b) This reduction reflects possible savings realized by copying Council agendas in-house rather than sending out to a printer; however, this shift results in higher copier costs (pay per copy). (c) The reduction of office supplies should have minimal impact. (d) Although the proposed reduction in the passport program is minimal, this business unit was significantly trimmed in the 2017-2018 BFO process. The program runs the risk of being underfunded, especially since equipment replacement budgeted in 2017 has to-date not been necessary, and may need to occur in 2018, when no equipment replacement was budgeted. Page 31 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Executive Services Related Offer #: 13.2 Department: City Clerk's Office Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($5,600) ($5,600) City Clerk Reduction of Election Costs in 2018 W Winkelmann/R Knoll This reduction offer includes $5,600 from funds set aside for a possible November 2018 election. The cost for participating in a November election is not negotiable, and the City's share of the overall cost is a proration based on the number of registered electors within the city limits. This reduction is one-time as ongoing money for November elections has not yet been established as a budgeting norm. The cost of participating in a November election is not negotiable, and the City's share of the overall cost is a proration based on the number of registered electors within the city limits. The impact of this reduction will not be known until after the November 2018 election (if the City participates), until final billing occurs. Budgeted funding for a November election was reestablished in the 2017-2017 BFO process. Page 32 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Executive Services Related Offer #: 22.1, 22.2 Department: City Manager's Office Offer Reduction Description: Impact: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($22,100) ($22,100) City Manager's Office and City Council Reductions Wendy Bricher/Tyler Marr This reduction offer will result in the City Council and City Manager's Office stopping a number of activities, described below: (a) Reduce support for performance excellence consulting, primarily for the Malcolm Baldrige award process - $9,000 savings; (b) Reduce funding for employee recognition week activities - $4,000 savings; (c) Reduce amount of variable funding for miscellanious sponsorships from the CMO - $3,000 savings; (d) Reduce travel funding for staff to participate as Baldrige Examiners - $2,600 savings; (e) Reduce office supply budget - $2,000 savings in CMO and $500 savings for City Council; and (f ) Reduce business meals budget for City Council - $1,000 savings The items above are listed in priority order. The above reductions will have the following impacts: (a) The City's use of performance excellence consulting dollars have been instrumental in our progress on the Baldrige journey. Reducing this budget would mean that items such as consultation for site visit preparation, application preparation, and other related activities would need to be reduced, elimnated, or covered with contigency dollars. (b) Reducing employee recognition week activities would inhibit the City's ability to adapt to potential cost increases for future events. Two year trend for this event is at $16,000, which is why the amount suggested is at $4,000 (c) Reducing the amount of donations and scholarships available for the CMO to participate in/give would potentially decrease our presence in the community. Funding remains for standard scholarships in the amount of $9,450. (d) Reducing the travel budget for Baldrige examiners would decrease the City's ability to give back to the baldrige program and also decrease potential learnings from other organizations by having staff participate as national examiners. (e) Office supply budgets for both the Manager's Office and Council have historically been underspent, reducing the ongoing budget for these items may create a challenge should use or prices increase (f) City Council uses the business meals budget to conduct meetings with one another and/or with constiuents. Reducing this budget may decrease the number of these meetings, but this budget has historically been underspent. Page 33 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Legal Services Related Offer #: 62.1 Department: City Attorney's Office Offer Reduction Description: Impact: There would be reduced research support for the existing attorney staff. Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund ($8,000) ($8,000) City Attorney - Reduce Hourly Law Clerk Mary Donaldson The reduction in the total number of hours of summer law clerk services available to the City Attorney's Office. Page 34 of 58 PROPOSED 2018 BUDGET ADDITIONS TABLE OF CONTENTS SUMMARY OVERVIEWS Proposed Additions Summary by Category ....................................................................... 36 Proposed Additions Summary by Fund .............................................................................. 37 CAPITAL/EQUIPMENT REPLACEMENT Community Park Development - East Community Park ................................................... 38 Natural Areas - Shop Expansion ....................................................................................... 39 Neighborhood Park Development - Sidehill Park 2018 Funding ...................................... 40 Microhydro Power Generator at the Water Treatment Facility ......................................... 41 Parks Department Equipment Replacement .................................................................... 42 Lincoln Center Roof Replacement .................................................................................... 43 SAFETY & SECURITY Encampment Cleaning Services ....................................................................................... 44 Dedicated Jail Space for Municipal Offenders .................................................................. 45 Arc Flash Hazard Study and Assessment ........................................................................ 46 Cyber Security Risk and Vulnerability Management ......................................................... 47 Municipal Court Interim Security Enhancement ................................................................ 48 215 N. Mason Overall Security Enhancements ................................................................ 49 365 TRANSFORT SERVICE Transfort Maintenance Shop Staffing (WFO) ................................................................... 50 Transfort 365 Funding Shortfall for 2018 .......................................................................... 51 OTHER RECOMMENDED 2018 BUDGET REVISION OFFERS Parking Technology………………………… ...................................................................... 52 Parkway Renovations………………………… ................................................................... 53 Occupancy Study .............................................................................................................. 54 City Fund Foundation ........................................................................................................ 55 Business Engagement Support ........................................................................................ 56 Air Quality Program Technical Support ........................................................................ 57-58 Page 35 of 58 Proposed Additions for the 2018 Budget Revisions - By Category Strategic Objective Budget Revision FTE Ongoing $ One-Time $ Total Capital/Equipment Replacement C&R 2.1 Community Park Development - East Community Park $0 $3,000,000 $3,000,000 HPG 7.8 Natural Areas - Shop Expansion 0 1,420,000 1,420,000 C&R 2.1 Neighborhood Park Development - Sidehill Park 2018 Funding 0 1,200,000 1,200,000 ENV 4.1 Microhydro Power Generator at the Water Treatment Facility 0 430,000 430,000 C&R 2.1 Parks Department Equipment Replacement 0 101,000 101,000 HPG 7.8 Lincoln Center Roof Replacement 0 100,000 100,000 Sub-Total $0 $6,251,000 $6,251,000 Safety & Security SAFE 5.1 Encampment Cleaning Services $130,000 $0 $130,000 SAFE 5.2 Dedicated Jail Space for Municipal Offenders 115,000 0 115,000 SAFE 5.6 Arc Flash Hazard Study and Assessment 0 100,000 100,000 HPG 7.1 Cyber Security Risk and Vulnerability Management 0 100,000 100,000 SAFE 5.1 Municipal Court Interim Security Enhancement 0.5 0 40,000 40,000 HPG 7.4 215 N. Mason Overall Security Enhancements 0 29,000 29,000 Sub-Total 0.5 $245,000 $269,000 $514,000 365 Transfort Service HPG 7.1 Transfort Maintenance Shop Staffing (WFO)* 2.0 $140,000 $0 $140,000 TRAN 6.1 Transfort 365 Funding Shortfall for 2018 81,000 0 81,000 Sub-Total 2.0 $221,000 $0 $221,000 Other TRAN 6.2 Parking Technology $750,000 $750,000 NLSH 1.4 Parkway Renovations 3,000 200,000 203,000 NLSH 1.1 Occupancy Study 0 78,000 78,000 HPG 7.7 City Fund Foundation 0 65,000 65,000 ECON 3.4 Business Engagement Support 0 45,000 45,000 ENV 4.4 Air Quality Program Technical Support 0 40,000 40,000 Sub-Total $3,000 $1,178,000 $1,181,000 Grand Total 2.5 $469,000 $7,698,000 $8,167,000 Page 36 of 58 Proposed Additions for the 2018 Budget Revisions - By Fund Total Fund Related Ongoing & Fund Outcome Service Area Offer # Adjustment Requested FTE Ongoing $ One-Time $ One-Time General Fund TRAN Planning, Dev & Trans Parking Technology $750,000 $750,000 NLSH Comm & Op Services 17.2 Parkway Renovations 3,000 200,000 203,000 SAFE Judicial Services Dedicated Jail Space for Municipal Offenders 115,000 0 115,000 C&R Comm & Op Services 15.9 Parks Department Equipment Replacement 0 101,000 101,000 SAFE Financial Services Arc Flash Hazard Study and Assessment 0 100,000 100,000 HPG Comm & Op Services 19.5 Lincoln Center Roof Replacement 0 100,000 100,000 NLSH Executive Services Occupancy Study 0 78,000 78,000 ECON Financial Services City Fund Foundation 0 65,000 65,000 ENV Sustainability Services 26.1 Air Quality Program Technical Support 0 40,000 40,000 SAFE Judicial Services Municipal Court Interim Security Enhancement 0.5 0 40,000 40,000 ECON Sustainability Services Business Engagement Support 0 35,000 35,000 HPG Financial Services 215 N. Mason Overall Security Enhancements 0 29,000 29,000 C&R Comm & Op Services Encampment Cleaning Services 26,000 0 26,000 Total General Fund 0.5 $144,000 $1,538,000 $1,682,000 Capital Expansion Fund C&R Comm & Op Services 67.13 Community Park Development - East Community Park $0 $3,000,000 $3,000,000 Total Capital Expansion Fund $0 $3,000,000 $3,000,000 Neighborhood Parkland Fund C&R Comm & Op Services 67.13 Neighborhood Park Development - Sidehill Park 2018 Funding $0 $1,200,000 $1,200,000 Total Neighborhood Parkland Fund $0 $1,200,000 $1,200,000 Natural Areas ENV Comm & Op Services 86.6 Natural Areas - Shop Expansion $0 $1,420,000 $1,420,000 C&R Comm & Op Services Encampment Cleaning Services 104,000 0 104,000 Total Natural Areas Fund $104,000 $1,420,000 $1,524,000 Transit TRAN Planning, Dev & Trans 67.13 Transfort 365 Funding Shortfall for 2018 $81,000 $0 $81,000 Total Transit Fund $81,000 $0 $81,000 Equipment Fund HPG Comm & Op Services Transfort Maintenance Shop Staffing (WFO)* 2.0 $140,000 $0 $140,000 Total Equipment Fund $140,000 $0 $140,000 Water Fund ENV Utility Services Microhydro Power Generator at the Water Treatment Facility $0 $430,000 $430,000 Total Water Fund $0 $430,000 $430,000 UtilitiesHPG Utility Services Cyber Security Risk and Vulnerability Management $0 $100,000 $100,000 ECON Sustainability Services Business Engagement Support $0 $10,000 $10,000 Total CS&A Fund $0 $110,000 $110,000 TOTAL ALL FUNDS 0.5 $469,000 $7,698,000 $8,167,000 * This is an internal transfer that comes with it's own funding so it's not a net increase in ongoing expenses Page 37 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Culture & Recreation Contact: Svc Area: Community & Operation Services Related Offer #: 70.3 Department: Park Planning & Development Capital? Yes Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 400 - Capital Projects Fund $3,000,000 $3,000,000 Ongoing One-Time Total Funding Source(s): 1) 250 - Capital Expansion Fund $3,000,000 $3,000,000 This offer appropriates funding for the development of community parks and park district maintenance facilities in the City, as provided in the Council adopted Parks & Recreation Policy Plan. New community parks are developed as new residential development occurs throughout the city. Development of a community park typically occurs over many years, starting with the purchase of land and acquisition of raw water shares, followed by park design and construction after sufficient development has occured around the park and adequate impact fees have been acquired to fund the construction of the park. The efficient delivery of maintenance services for park districts is provided by the creation of maintenance facilities in community parks. This offer also includes design of the maintenance facility. A construction timeline for the maintenance facillity is dependent on FEMA approval of floodplain mapping affecting the park site and facility, but the initial plans are to begin construction in 2019. Additional appropriations will be requested in the 2019/2020 budget cycle to fund the construction of the maintenance facility. East Community Park completion is not anticipated for many years, but the maintenance facility is needed immediately to house the new maintenance district operation. Linkage to Strategic Objective: C&R 2.1 - Improve the community's sense of place with a high value on natural areas, culture, recreation and park systems. Community Park Development - East Community Park Dawna Gorkowski Funding this offer continues the development of the City's community park system per the Council adopted 2008 Parks & Recreation Policy Plan How does Offer Link to Strategic Objective: CR 61. Acres of Park /1,000 Population CR 68. % of citizens responding very good/good quality of - Parks Performance Measure(s): With the completion of Twin Silos Community Park a new park maintenance district was created. Twin Silos and East Community Park will be in the same district and the decision was made to locate the new district shop at the East Community Park site due to the central location for the district. This facility is needed prior to construction of the East Community Park since the new district was established with the opening of Twin Silo Community Park. The East Community Park site requires immediate work, including the installation of an underdrain system, fill dirt placement, landscape restoration, raw water shares purchase, and initial site planning required before determining the maintenance facility location. Page 38 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Environmental Health Contact: Svc Area: Community & Operation Services Related Offer #: 86.6 Department: Natural Areas Capital? Yes Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 400 - Capital Projects Fund $1,420,000 $1,420,000 Ongoing One-Time Total Funding Source(s): 1) 272 - Natural Areas Fund $1,420,000 $1,420,000 The design and construction budget of $1,450,000 was prepared for the 2017-18 BFO process in the spring of 2016 using very conceptual designs and without the help of a professional cost estimator. As the design charrettes were held with key Natural Areas staff more specific needs of the staff were determined and the scope of the project grew, costs of meeting City Climate Action Plan goals for the site were realized, costs of remodeling and meeting ADA requirements realized, and a contractor was hired to more accurately estimate the total project costs; which are now estimated to be between $2,600,000 and $2,950,000. (A final budget will be estimated prior to August 29, in time for the Council Finance Committee Meeting.) The additional appropriation being requested is estimated at this time to be between $1,150,000 and $1,500,000. The existing shop and equipment yard were built in 2002, when there was fewer than 10 field staff managing 5,000 acres, with the goal of meeting Natural Areas stewardship needs for 15 years. Now in 2017, with a field staff of over 30, managing over 36,000 acres; we find that we have out grown the shop and equipment yard and need much larger facilities to meet Natural Areas stewardship needs for the next 15 – 30 years. Linkage to Strategic Objective: HPG 7.8 - Optimize the use of City assets through capital improvement planning, preventative maintenance and asset management. Natural Areas - Shop Expansion John Stokes The shop expansion will immediately improve field operation staff productivity by providing: more shop space to work in; more vehicle and equipment storage to protect assets; more shop yard to daily stage and store equipment; and a fueling station to minimize staff time and vehicle miles travel required to fuel vehicles. Natural Areas will be conserving more land each year for the foreseeable future and the shop yard expansion will meet field operation needs for upwards of 30 years. How does Offer Link to Strategic Objective: Performance N/A Measure(s): Page 39 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Culture & Recreation Contact: Svc Area: Community & Operation Services Related Offer #: 70.2, Ord 38 of 2017 Department: Park Planning & Development Capital? Yes Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 270 - Neighborhood Parkland Fund $1,200,000 $1,200,000 Ongoing One-Time Total Funding Source(s): 1) 270 - Neighborhood Parkland Fund $1,200,000 $1,200,000 This offer will provide funding for the development of neighborhood parks in the City, as provided in the Parks & Recreation Policy Plan, which will be updated in 2018. New neighborhood parks are developed as new residential development occurs throughout the city. Development of a neighborhood park typically occurs over many years, starting with the purchase of land and acquisition of raw water shares, followed by park design and construction after sufficient development has occurred around the park and adequate impact fees have been acquired to fund the construction of the park. Additional appropriations are needed for 2018 due to an issue that occurred during the regular 2017-18 budget council adoption process. A council member had a conflict of interest regarding a neighborhood park described in the offer. The Council elected to remove this park from the offer to allow the means to approve the budget. As a result of this, a separate appropriation was made outside of the budget process to fund development of neighborhood parks in 2017. This offer will provide funding for development of neighborhood parks in 2018, including improvements to Streets Park, and fund the update of the Parks and Recreation Policy Plan. Linkage to Strategic Objective: C&R 2.1 - Improve the community's sense of place with a high value on natural areas, culture, recreation and park systems. Neighborhood Park Development - Sidehill Park 2018 Funding Dawna Gorkowski Funding this offer continues the development of the City's neighborhood park system per the Council adopted 2008 Parks & Recreation Policy Plan How does Offer Link to Strategic Objective: CR 61. Acres of Park /1,000 Population CR 68. % of citizens responding very good/good quality of - Parks Performance Measure(s): Page 40 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Environmental Health Contact: Svc Area: Utility Services Related Offer #: 96.1 in 2015/16 BFO Department: Ut Water Production Div Capital? Yes Offer Description: Initiative Impact (Tons CO2) Cost/Ton CO2 MEEF 1000 $26 LED Street Lights 1000 $48 DWRF Co‐Gen 2700‐3900 $76‐109 Microhydro 375 $118 Ongoing One-Time Total Expense Fund(s): 1) 502 - Water Fund $430,000 $430,000 Ongoing One-Time Total Funding Source(s): 1) 502 - Water Fund $430,000 $430,000 The Micro-Hydro Generation project includes the installation of a small hydro power generator on the Horsetooth raw water line at the Water Treatment Facility. The Micro-Hydro project is an important part of the Water Treatment Facility’s efforts to assist with the City’s Climate Action Plan (CAP) goals. The Generator will utilize the elevation of the water in Horsetooth Reservoir to generate electricity as the water enters the Water Treatment Facility. The project will have a maximum generation capacity of 79 kW, with an estimated average annual production of 550 Megawatt-hours of electricity (approximately 30% of the Facility's annual electric use). The project will eliminate 375 metric tons of CO2e of greenhouse gas per year. Benefit/Cost (B/C) analyses of the project indicate a break even period of 21 years with a B/C ratio of 1.38 over a 30 year period. With proper maintenance, it is anticipated that the Generator can operate without major replacement for a period up to 100 years. For comparison purposes to other CAP related projects/inititaives, the following table is provided. At the time of the original BFO offer in 2014, the full project cost was estimated to be $612,000. After additional effort on the design and permitting process, the estimated project cost is now $792,000. The 2015/16 BFO offer was for $285,000 which was less then the estimated project cost at the time. The project was initially intended to be partially funded from Offer 96.1 (Microhydro offer) and lapsing annual Minor Capital Project funds. Upon further review it was determined that this approach does not conform to the City’s financial policies, and was not a feasible funding mechanism for the project. Linkage to Strategic Objective: ENV 4.1 - Achieve Climate Action Plan (CAP) goals by reducing greenhouse gases (GHGs). ENV 35. Electricity (GHG) 2020 CAP Goal vs Actual Microhydro Power Generator at the Water Treatment Facility Mark Kempton Project will provide hydroelectric power to the Water Treatment Facility through a 79 Kw micro-hydro power turbine generator on the Horsetooth raw water line. Turbine will provide up to 30% of the facility's power needs through a renewable energy source leading to an annual reduction of 375 metric tones of CO2e emissions. How does Offer Link to Strategic Objective: Performance ENV 9. Percent decrease in community Greenhouse Gas (GHG) emissions from Measure(s): Page 41 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Culture & Recreation Contact: Svc Area: Community & Operation Services Related Offer #: 15.9,16.5, 34.3 Department: Parks Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $101,000 $101,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $101,000 $101,000 This offer provides for two quarterly equipment rent payments to Fleet Services for the Equipment Replacement Program in 2018. Quarterly payments will need to be funded in subsequent budget cycles for a total of five years. The initial offers in the 2017/2018 budget process were not funded and an additional offer was created to fund a small portion of the equipment actual needed to be replaced. That offer was 15.13. This offer requests funding for the remaining equipment that was not funded in the 2017/2018 budget process. All equipment to be replaced has met Fleet Service's criteria for replacement and will require costly repairs if not replaced. This offer includes the replacement of trucks, mowers, utility vehicles, skidsteer, tractors and leaf blower. Replacement of this equipment is essential to the continued operation of the Parks Department. Linkage to Strategic Objective: C&R 2.1 - Improve the community's sense of place with a high value on natural areas, culture, recreation and park systems. Parks Department Equipment Replacement Dawna Gorkowski Replacement of equipment is essential for efficiently and effectively maintaining the City's park system which is highly valued and used by citizens. The parks system give citizens a sense of community and places to enjoy many community activities. High demand on these assets requires proper equipment to keep up with use and expectations of the community. How does Offer Link to Strategic Objective: HPG 19. Number of replacements within the window of replacement criteria Performance Measure(s): Page 42 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Community & Operation Services Related Offer #: 19.5 Department: Operation Services Capital? Yes Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $100,000 $100,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $100,000 $100,000 This offer was funded in the 2017 budget, however that funding was needed to mitigate a higher priority safety issue in the Lincoln Center Columbine room. Funding this offer will provide the necessary dollars to replace one section of the Lincoln Center Roof that is over 30 years old and beyond patching. All other sections have been recently replaced. Linkage to Strategic Objective: HPG 7.8 - Optimize the use of City assets through capital improvement planning, preventative maintenance and asset management. Lincoln Center Roof Replacement Tracy Ochsner Protecting the City's assets through major maintenance will extend the life of this facility. How does Offer Link to Strategic Objective: Performance HPG 14. Major building maintenance and repair Measure(s): Page 43 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Safe Community Contact: Svc Area: Community & Operation Services Related Offer #: Department: Parks Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $26,000 $26,000 2) 272 - Natural Areas Fund $104,000 $104,000 $130,000 $0 $130,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $26,000 $26,000 2) 272 - Natural Areas Fund $104,000 $104,000 $130,000 $0 $130,000 Linkage to Strategic Objective: SAFE 5.1 - Improve community involvement, education and regional partnerships to make our community safer and stronger. Encampment Cleaning Services Dawna Gorkowski This offer works with a local vendor in removing illegal encampments in the Parks, downtown and Natural Areas to provide safe areas for citizens to recreate. How does Offer Link to Strategic Objective: SAFE 38. % of citizens responding always safe/usually safe - Trails SAFE 36. % of citizens responding always safe/usually safe - Natural areas/open space Performance Measure(s): Funding this offer would allow for the safe removal of illegal encampments. The homeless/transient environment has changed rapidly in the last 10 years. Encampments contain all manners of hazardous materials which need to be removed for the safety of the public. Materials including needles, soiled clothing, human waste and drugs all need to be handled and diposed of in the proper manner. This offer would fund specially trained contractors to provide cleanup services for approximately 200 encampments per year. Hazardous materials disposal costs of $20,000 are included in this offer. Page 44 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Safe Community Contact: Svc Area: Judicial Services Related Offer #: Ord 84 of 2017 Department: Municipal Court Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $115,000 $115,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $115,000 $115,000 Due to overcrowding at the Larimer County Jail, many Municipal Offenders are being released immediately after arrest and without a bond due. Some of these defendants continue to commit new municipal crimes after release and are re- arrested again for failing to appear multiple times for Municipal Court appearances. This offer will provide three dedicated jail bed spaces to house these defendants. This offer will assist in protecting and preserving the City's quality of life, enhancing Police Services capability to foster public trust and create a safe community, and provide Municipal Court services that meet the needs of the community. Linkage to Strategic Objective: SAFE 5.2 - Enhance our Police Services capability to foster public trust and create a safer community. Dedicated Jail Space for Municipal Offenders Jeremy Yonce This offer will enhance Police Services capability to foster public trust and create a safe community, and provide Municipal Court services that meet the needs of the community. How does Offer Link to Strategic Objective: Performance Measure(s): Page 45 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Safe Community Contact: Svc Area: Financial Services Related Offer #: N/A Department: Safety, Security, & Risk Mgmt. Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $100,000 $100,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $100,000 $100,000 An arc flash is a phenomenon where a flashover of electric current leaves its intended path and travels through the air from one conductor to another, or to ground. The results are often violent and when a human is in close proximity to the arc flash, serious injury and even death can occur. Each piece of equipment operating at 50 volts or more and not put into a deenergized state must be evaluated for arc flash and shock protection. Funding this offer is necessary to begin work on a multi-year compliance plan required for arc flash pre-assessment surveys for City Facilities (Utilitiy facilities have largely been completed under an independent project some time ago). The locations to be assessed include switchgear, switchboards, panelboards, and motor control centers in City buildings and property. The purpose of the study is to identify the energy levels, boundary distances and required Personal Protective Equipment required (PPE) for anyone (employees and non-employees) working around this equipment. This work must be done by a qualified expert, which we currently do not have on staff. Electrical Arcs resulting from short circuits and faults are extremely dangerous and are usually catastrophic (death or severe injury) to all persons working in the area. This work will address the requirement to comply with National Electic Code (NEC), National Fire Protection Asscoaition (NFPA) and Occupational Safety and Health Ad (OSHA) regulations as well as the liability associated with arc flash potential in employees and non-employees, City buildings and property. Safety, Security & Risk Management is partnering closely with Operations Services and Light & Power on this work. Linkage to Strategic Objective: HPG 7.4 - Develop and implement initiatives to achieve safety goals and continue to focus on employee health and wellness. Arc Flash Hazard Study and Assessment Allison Fultineer This work will address the requirement to comply with National Electric Code (NEC), National Fire Protection Association (NFPA) and Occupational Safety and Health Ad (OSHA) regulations as well as the liability associated with arc flash potential in employees and non-employees, City buildings and property. How does Offer Link to Strategic Objective: HPG 4. City Employee Safety - Total Recordable Injury Rate (TRIR) YTD Performance Measure(s): Page 46 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Utility Services Related Offer #: 45.17 (from 2015) Department: Utility Tech. & Cust. Service Capital? Yes Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 605 - Utility Customer Srv & Adm $100,000 $100,000 Ongoing One-Time Total Funding Source(s): 1) 605 - Utility Customer Srv & Adm $100,000 $100,000 Cyber Security Risk and Vulnerability Management Mary Evans/Jen Barna Earlier this year, the City completed a cybersecurity governance assessment which identified several high priority action items. Effective governance is essential to protecting City and customer assets and information. These funds will be used to employ a consulting service to help establish cyber security and privacy governance. This includes defining and integrating responsibility and accountability into the strategic cyber security decision process, policy development, and improvements to specific processes for ensuring the security of confidential data and critical infrastructure, and the ability to make informed strategic decisions related to security risk. In addition to alignment with SAFE 5.6, it also aligns with the following strategic objectives due to the policies and process improvements to be implemented. HPG 7.1 - Provide world-class services that meet the needs of the community. HPG 7.8 - Optimize the use of City assets through capital improvement planning, preventative maintenance and asset management. How does Offer Link to Strategic Objective: HPG 96. Information Technology Internal Service Survey We will soon have new metrics resulting from a recently completed cyber security project. They are based on the NIST Framework for Improving Critical Infrastructure Cybersecurity and the DOE's Cybersecurity Capability Maturity Model (C2M2). They are not in ClearPoint, yet. This offer provides funding for consulting assistance, staff training and tools necessary to conduct the first phase of improving cybersecurity program capabilities to better protect Utilities' mission-critical information systems and confidential data and to ensure that the City organization is equipped to prevent and respond appropriately to increasingly complex situations regarding data privacy and system security. The funds will be used to define and implement governance policies, metrics, and processes to ensure that wise decisions related to the security of confidential data and critical infrastructure can be made. These priorities were identified during a cyber security governance assessment completed earlier this year. Initially staff had requested to reappropriate the $40,000 remaining in the 2016 project budget to begin implementation. Based on Council direction that it would be more appropriate to consider this in the 2018 budget, staff developed an offer that is based on the true project needs, rather than scoping according to anticipated budget availability. This project supports and aligns with the National Institute of Standards and Technology's (NIST) Framework for Improving Critical Infrastructure Cybersecurity endorsed by the Department of Energy, Department of Homeland Security, and the White House; the Baldridge Program; the American Public Power Association's Reliable Public Power Provider program (APPA RP3), and the American Water Works Association's cyber security guide. Performance Measure(s): Linkage to Strategic Objective: SAFE 5.6 - Optimize the use of data and technology to improve service and protect mission critical infrastructure. Page 47 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Safe Community Contact: Svc Area: Judicial Services Related Offer #: N/A Department: Municipal Court Capital? Yes Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $0 $40,000 $40,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $0 $40,000 $40,000 This offer would provide for part-time contract security personnel to add additional protection to Municipal Court Operations until structural changes can be made to the facility itself to enhance security. This is an interim measure. Linkage to Strategic Objective: HPG 7.4 - Develop and implement initiatives to achieve safety goals and continue to focus on employee health and wellness. Municipal Court Interim Security Enhancement Kelly Bernish This offer provides enhanced safety for Municipal Court Employees and Citizens using those services. How does Offer Link to Strategic Objective: N/A Performance Measure(s): Page 48 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Financial Services Related Offer #: N/A Department: Safety, Security, & Risk Mgmt. Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $29,000 $29,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $29,000 $29,000 This offer is to make some very low level office entrance security enhancements to the building which will strictly discourage unauthorized entry into Finance, Purchasing, Recreation and CPIO. Even though these are low level and very basic enhancements, it will add a level of protection that is vital for the protection of our employees and assets. Linkage to Strategic Objective: HPG 7.4 - Develop and implement initiatives to achieve safety goals and continue to focus on employee health and wellness. 215 N. Mason Overall Security Enhancements Kelly Bernish These basic security enhancements to the 215 N. Mason building will offer protection to all employees in this public building from those people intending to cause harm and will protect assets that are currently open to any member of the public and unauthorized employees. How does Offer Link to Strategic Objective: N/A Performance Measure(s): Page 49 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Community & Operation Services Related Offer #: 67.13 Department: Operation Services Capital? Yes Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 601 - Equipment Fund $140,000 $140,000 Ongoing One-Time Total Funding Source(s): 1) 601 - Equipment Fund $140,000 $140,000 Funding this offer will add 2 FTE's, one mechanic and one maintenance worker, to the Fleet Services staff in order to provide Transfort 24/7 maintenance. The funds for this offer have been approved by Council with the approval of the 365 day bus service offer. Linkage to Strategic Objective: HPG 7.1 - Provide world-class services that meet the needs of the community. Transfort Maintenance Shop Staffing (WFO) Tracy Ochsner This offer will allow Transfort to expand its routes to provide world class services on weekends and holidays How does Offer Link to Strategic Objective: HPG 7. Percent of preventive maintenance work orders for Fleet Maintenance completed within 30 days of assignment Performance Measure(s): Page 50 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Transportation Contact: Svc Area: Planning, Dev & Transportation Related Offer #: 67.13 Department: Transfort Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 290 - Transit Services Fund $81,000 $0 $81,000 Ongoing One-Time Total Funding Source(s): 1) 290 - Transit Services Fund $81,000 $0 $81,000 This Offer would provide additional needed funding for Transfort Sunday service in 2018. The original Transfort 365 budget offer was $750,000. Subsequently, Council approved $831,000 to be allocated for 365 services for additional routes, $81,000 greater than the original offer. This budget request covers that difference. Further evaluation by CSU is needed to determine whether CSU will fund an amount greater than their original 6 month commitment (based on the original $750K request). Linkage to Strategic Objective: TRAN 6.1 - Improve safety for all modes of travel including vehicular, pedestrian and bicycle. Transfort Sunday Service Additional Funding Kurt Ravenschlag How does Offer Link to This offer provides additional funding needed in 2018 for additional Sunday service. Strategic Objective: TRAN 1. Transfort Fixed Route Passengers per Revenue Hour Performance Measure(s): Page 51 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Transportation Contact: Svc Area: Planning, Dev & Transportation Related Offer #: Department: Parking Capital? Yes Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 294 - Parking Fund $750,000 $750,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $750,000 $750,000 This offer includes the implementation of parking space sensors to collect data for occupancy, turnover and integration to the smartphone app for parking space navigation in the downtown. Currently, the collection of parking data is done by hand. This means that it provides point-in-time occupancy data that does not indicate how long a vehicle has been parked nor when it leaves. This offer would invest in technology to collect parking utilization data for on-street and parking structures in the downtown area. For each parking space, the technology would indicate when a vehicle arrives, how long it stays, when it leaves and provide navigation to the public to open parking spaces through a new smart phone app soon to be deployed as part of the new Fire House Alley Parking Structure. On June 14, 2016 City Council gave staff direction to pursue this appropriation for parking sensor technology for downtown to provide a much better understanding of parking behavior downtown and help with the potential future implementation of on-street paid parking in terms of where the greater turnover is needed, and when and where an expanded phase should begin. Council requested that staff make this appropriation from funds that had been set aside for an on-street paid parking pilot. Staff has spent this past year researching technology and refining the scope of work to better inform staff of the appropriation needed to fulfil this request by City Council. If the appropriation is approved, staff will be able to begin implementation before year end. Linkage to Strategic Objective: TRAN 6.2 - Improve traffic flow to benefit both individuals and the business community. Parking Technology Craig Dubin The tools, equipment and infrastructure to adequately manage parking demand in the downtown and neighborhoods are essential to achieving this strategic objective. How does Offer Link to Strategic Objective: Performance Measure(s): TRAN 48. % of citizens responding very good/good - Availability of parking Downtown in Fort Collins Page 52 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Neighborhood Livability & Social Health Contact: Svc Area: Community & Operation Services Related Offer #: 17.2 Department: Parks Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $3,000 $200,000 $203,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $3,000 $200,000 $203,000 Parkway Renovations Dawna Gorkowski This offer is preserving the City's quality of life and neighborhoods through design and management of streetscapes as visually appealing public spaces that contribute to Fort Collins' distinct identity. How does Offer Link to Strategic Objective: NLSH 26. Square Footage of Medians Renovated Performance Measure(s): Funding this offer would upgrade existing City parkways from non-irrigated parkways with natural grasses and invasive weeds to irrigated parkways with turf-type grasses. Parkways for this purpose are defined as greenspaces that border streets along major City arterials. Through implementation of current Streetscape Standards, a more sustainable and aesthetic landscape would be implemented. The Parks Department has identified areas for improvement for 2017/2018, including West Drake, from Overland Drive to Hampshire Drive. Benefits of converting to irrigated turf include less hand watering utilizing a water truck by the Forestry Division to establish trees and decrease tree mortality. Turf grass has a cooling effect on the environment, reduces herbicide use to kill weeds, and reduces dust. Parkways would be brought up to current Streetscape Standards and would enhance the visual appeal of the community. Linkage to Strategic Objective: NLSH 1.4 - Protect and preserve the City's quality of life and neighborhoods. Page 53 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Neighborhood Livability & Social Health Contact: Svc Area: Executive Services Related Offer #: N/A Department: City Manager's Office Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $78,000 $78,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $78,000 $78,000 This offer will fund a one-time study focused on the City's existing occupancy ordinance. Study will focus on: 1. Has the occupancy ordinance had an impact on neighborhood quality? 2. Does the occupancy ordinance impact the affordability of housing? Methodology will include: 1. Develop objective matrix to measure impact of ordinance. Matrix should include but is not limited to: a. Owner-occupied to rental ratio by neighborhood or census tract (compared over time) b. Nuisance violations by neighborhood/census tract (compared over time) c. PSD enrollment numbers by neighborhood or census tract (compared over time) d. Average home sales and price (compared over time) e. Rent prices (compared over time) 2. Qualitative survey of residents measuring their perceptions of the impacts/success of the ordinance. Linkage to Strategic Objective: NLSH 1.1 Improve access to a broad range of quality housing that is safe, accessible and affordable. Occupancy Study Ginny Sawyer Offer will help determine if occupancy ordinance has impacted neighborhood quality of housing affordability. How does Offer Link to Strategic Objective: NLSH 57. % of citizens responding very good/good - Availability of affordable quality housing in Fort Collins Performance Measure(s): Page 54 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Economic Health Contact: Svc Area: Financial Services Related Offer #: N/A Department: Finance Administration Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $65,000 $65,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $65,000 $65,000 2017 efforts will focus on communication and education of local donors of the project and its benefits, donor outreach and engagement, developing a list of potential donors, understanding the desires and priorities of potential donors, establishing fund protocols, processes and governance and finalizing agreement with the Community Foundation to assist as the fiduciary agent. 2018 efforts will entail the launch of the City Fund Foundation. Our consultant will facilitate the establishment of a Governance committee, fund raising models, community event coordination, brand and communication development, donor relations protocols, project selection and fund raising activities. This offer funds external consulting resources to support the establishment of a City Fund Foundation that supports and coordinates fund raising efforts associated with City projects and programs. This project is a Council Priority and is supported by council Resolution 2017-032. The intent of the City Fund Foundation is to fund things outside the norm of the General Fund. The objective is to establish a committee to lead community engagement and fund raising efforts to support special initiatives not funded through available General Fund sources and to partner with the Community Foundation to provide the back office fiduciary agent support and controls. Reference attached City Fund Proposal for additional details. Linkage to Strategic Objective: HPG 7.7 - Address long-term funding requirements by diversifying the revenue base and finding new revenue sources. City Fund Foundation Mike Beckstead Council Priority - Establishment of a City Fund Foundation that supports and coordinates fund raising efforts associated with City projects and programs that will provide new funding sources and revenue for the City. How does Offer Link to Strategic Objective: N/A Performance Measure(s): Page 55 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Economic Health Contact: Svc Area: Sustainability Services Related Offer #: N/A Department: Economic Health Office Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $35,000 $35,000 2) 605 - Utility Customer Srv & Adm $10,000 $10,000 $0 $45,000 $45,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $35,000 $35,000 2) 605 - Utility Customer Srv & Adm $10,000 $10,000 $0 $45,000 $45,000 Business Engagement Support Josh Birks Engaging business customers in a more robust manner will help to ensure more efficient processes when they interact with the City. The surveys to be done with this offer will help to establish a baseline and the customer relationship management (CRM) tool will centralize all information regarding engagement with each customer. How does Offer Link to Strategic Objective: ECON 30. % of citizens responding very good/good to the City's performance in - Support of businesses 1. Business Satisfaction Survey - This survey will compliment the existing Citizen Survey and specifically target businesses within the community. The survey will seek to understand satisfaction with the community, overall business climate, and City services. Approximate cost - $15,000 2. Small & Medium Business Survey - This survey will focus on small and medium sized enterprises (SMEs) in the community. The survey will seek to identify the unique challenges and opportunities facing this subset of the business community. Results will be used to analyze City services and identify potential new services to assist these types of businesses. Approximate cost - $10,000 3. CRM Pilot - The Economic Health Office will team with the Customer Connections team from Utilities to pilot a CRM tool. A CRM tool is a single database driven repository of all information related to engagement with a specific customer. This tool will allow for all departments to have access to a single file related tot engagement with the City's business customers. Approximate cost - $20,000 ($10,000 General Fund & $10,000 Utility Customer Srv & Adm). ECON 4. Net Percent Change in Local Jobs Performance Measure(s): Linkage to Strategic Objective: ECON 3.4 - Provide transparent, predictable and efficient processes for citizens and businesses interacting with the City. The purpose of this offer is to enhance the City's engagement with business customers. City Council defined Business Retention and Expansion (BRE) as a priority in their May 2017 retreat. In addition, the 2016 Baldrige site visit report lists several opportunities for improvement (OFIs) related to the City's business customer. This offer will fund a number of tools to enhance the City's existing and future engagement with business customers. These tools will include a number of surveys as well as funds to pilot a customer relationship management (CRM) program. The specific tools are described in detail below. Page 56 of 58 City of Fort Collins 2018 Revision Form Offer Name: Outcome: Environmental Health Contact: Svc Area: Sustainability Services Related Offer #: 26.1 Department: Environmental Services Capital? No Offer Description: Radon is an indoor air pollutant that occurs naturally as a decay product from the ground, and it can accumulate in homes. Colorado has higher radon level than most states, and the EPA has characterized radon as the leading cause of lung cancer in non-smokers. The City currently has an active radon program that includes provision of subsidized tests, tracking of results of tests sold through the City, outreach and zero-interest loans for radon mitigation. These additional resources will be used to: - Support the City in identifying data needs, and conducting public outreach to better identify barriers to radon testing and mitigation, including but not limited to awareness, liability, cost and time. ENV 5. Outdoor Air Quality Index (AQI) - Fine Particulate Matter 2.5 microns (PM 2.5) ENV 2. Percent compliance with Healthy Homes Recommendations (e.g., radon testing and mitigation recommendation) Performance Measure(s): The Envionmnetal Services Air Quality Program supports education, engagement, planning and regulatory efforts to improve air quality. Funding this revision request will provide funds for the Air Quality Program to add capacity to more fully address Council's air quality priorities (radon and outdoor burning) identified during the May 12-13 Council Retreat. These funds would be used to support a combination of professional technical support, and hourly support, which would allow for more efficient use of funds to support a combination of administration and professional tasks related to the new priorities. - Evaluate the health benefits of local mitigation. This will be done using existing characterizations of risk from the Environmental Protection Agency (EPA) and local radon data collected from test kits sold through the City. Linkage to Strategic Objective: ENV 4.4 - Implement indoor and outdoor air quality improvement initiatives. Air Quality Program Technical Support for Radon and Outdoor Residential Burning Cassie Archuleta Funding this offer will provide additional resources for Environmental Services Air Quality staff to add capacity to better address new Council air quality priorities related to radon and outdoor residential burning. How does Offer Link to Strategic Objective: - Identify policies and best practices in place in other communities. - Support the City in forming and facilitating a workgroup to evaluate policy and best practice options, including cost:benefit analysis, to identify possible recommendations for additional policy or program implementation. Also, this additional capacity and expertise will be used to better characterize risk from residential outdoor burning, and identify options for possible next steps. Currently, preliminary research has identified several policies and best practices in place in other Front Range communities. Specifically, these resources will be used to: Page 57 of 58 City of Fort Collins 2018 Revision Form Offer Name: Air Quality Program Technical Support for Radon and Outdoor Residential Burning Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $40,000 $40,000 Ongoing One-Time Total Funding Source(s): 1) 100 - General Fund $40,000 $40,000 If not funded, staff would add capacity to address new priorities by reducing ongoing support for existing programs such as Fugitive Dust control outreach and support for oil and gas related issues. - Using the existing body of research and data, characterize impacts of particulate matter pollution from outdoor burning, including impacts on a regional level as compared to potential impacts close to a source. Adding capacity for additional professional contractor support, and hourly support. will allow staff to meet new priorities without reducing ongoing support for existing air quality programs, with the ultimate goal of reducing environmental and health effects related to air pollution. Key Outcomes: Impact if New Position Not Funded: - Support the City in conducting public outreach to characterize public opinion regarding current policies and experiences, which include safety checks, information and outreach regarding impacts, and neighborhood mediation regarding neighbor disagreements. - Support the City in forming and facilitating a workgroup to evaluate policy and best practice options to identify possible recommendations for additional policy or program implementation. Page 58 of 58 2018 Budget Revisions Council Work Session - September 26, 2017 Mike Beckstead - CFO ATTACHMENT 2 Agenda for the 2018 Budget Revisions 2 1) 2017 Revenue Update and Economic Outlook 2) Budget Revisions – Overview & Assumptions 3) Review of Proposed 2018 Reductions 4) Review of Proposed 2018 Additions August Results Front Range Comparison 3 Year over Year Growth QII 2017 • Fort Collins adj for mall 0.8% • Fort Collins adj for audit & mall 2.4% • Boulder 1.0% • Loveland 6.4% • Longmont 12.6% • Westminster 5.2% • Thornton 2.5% • Arvada 5.6% Moderate Growth continues in August and Adjusted YTD Fort Collins – August Results with w/out Compared to 2016 mall mall Sales Tax Month August 3.7% 3.7% Sales Tax YTD (w/o Audit) 3.0% 2.8% Use Tax YTD (7.4%) Compared to Budget YTD Sales Tax $(2,889k) Use Tax 2,030k $( 859k) General Fund Revenue – YTD August 4 Total General Fund Revenue Slightly Over Budget Budget 2017 Actual 2017 Over/ (Under) Budget Sales & Use Tax $ 56,279 $ 55,641 $ (639) Property Tax 21,001 21,062 61 PILOTs 6,621 6,839 219 General Govern Fees 4,920 4,408 (513) Other 10,321 12,798 2,477 Subtotal $ 99,142 $ 100,747 $ 1,605 Unrealied Gains/Losses 0 422 422 Total $ 99,142 $ 101,169 $ 2,026 5 General Fund Reserves Historical General Fund Reserve Balances Total General Fund Reserve Balance as of Dec. 31, 2016 $ 74.9 Less: Minimum 60 day Minimum Fund Balance Policy (25.8) Non‐spendable, Restricted and Committed (21.0) Assigned, but not readily available (15.0) 13.1 Set‐aside for 2017‐18 Budget and economic uncertainty (4.4) Council directed set asides (bus, golf irrigation & parking) (1.8) December 31, 2016 Available General Fund Reserves $ 6.9 2016 General Fund Reserve Balances (in millions) Macro-Economic Indicators 6 Macro Indicators Remain Stable, Mostly Strong…. National: Consumer confidence 16 year high Small business confidence Optimistic ‐ NFIB index at highest since 2005 Unemployment – National 4.3% July – lowest since 2007 Interest rates Historical lows – anticipated increase Housing sales & prices 5.7% increase ‐ May YOY (Case‐Shiller price index) Consumer price index 2.4% increase July YOY Q2 2017 GDP 2.6% (preliminary) ‐ consumer spending up Average hourly earnings 2.5% increase July YOY ‐ $26.36 (preliminary) State / Local: Unemployment – State 2.3% June 2017, lowest since 1976 Unemployment – Fort Collins 2.0% June 2017 Housing sales & prices – Denver 7.9% increase ‐ May YOY (Case‐Shiller price index) Business licenses 6.8% increase July YOY Building permits issued 2.3% decrease July YOY Building permit valuations 15.4% increase July YOY Development project submittals received 36.3% decrease July YOY 7 • Sales Tax Revenue Continues Moderate Growth • GF Revenue slightly above YTD Budget – other revenue offsets • GF and Total Expenditures under budget • No Budget Adjustments Necessary in 2017 • 2018 Budget Revision Process will Align Ongoing Spending With Revised 2018 Sales Tax Revenue Forecast Summary 8 Budget Revisions – Overview and Assumptions 2018 Budget Revision Objectives 9  The recommended 2018 Budget Revisions are intended to address: • Ongoing expenditures to match current ongoing revenue estimates • Council priorities • Fiduciary responsibilities & fund balance • High-priority projects and other needs not known at the time of the adoption of the 2017-18 Budget – that can be funded with one-time resources  Criteria for New Requests: • The request is specifically directed by the City Manager or City Council • The request is related to a previously approved Offer where either unanticipated revenue shortfalls or unforeseen expenses are significantly impacting the delivery of that program or service 2017-18 2018 Revenue Updates 10  Sales Tax: 2017 shortfall of $4.4M impacts the base for 2018 growth • Retain 2018 growth forecast at 3% over the revised 2017 base • Results in a $4.5M Citywide shortfall over the original 2018 revenue estimate  2018 Use Tax: $22.0M - No change from original budget  Property Tax: Larimer County estimates the City’s portion of 2018 Property Tax to increase $2.1M • $700k available for 2018 Ongoing (1/3 of total due to IGA with PFA) • $1.4M available for 2018 One-Time (This portion goes to PFA in 2019)  Muni Court projected shortfall in 2018 of $500k due to waiving costs for indigent defendants and case load being flat  Other Revenue: In general, other forecasted revenue coming in at or above budget; no changes forecasted for 2018 except for restricted Capital Expansion Fees Governmental Revenue Detail 11 Modest Revenue Growth Overall 2016 2017 2018 Actual Original Budget Projection Original Budget Revised Budget Sales Tax $109.3 $115.6 $111.2 $119.1 $114.5 Use Tax Base 14.5 14.5 14.5 14.5 14.5 Use Tax One-Time * 12.3 7.5 10.5 7.5 7.5 Property Tax 20.6 21.3 21.3 21.7 23.8 Intergovt., Shared & Grant Revenue ** 28.7 24.6 29.1 25.4 27.6 Cultural, Parks & Rec Fees 14.8 12.9 12.9 13.2 14.8 PILOT Fees 10.0 10.0 10.0 10.3 10.3 Transportation Fees 8.8 7.9 7.7 8.5 8.4 Licenses, Permits and Devel Fees 6.5 5.6 5.6 5.8 5.8 All Other Govt. Revenue *** 26.6 28.4 27.9 26.7 26.8 Subtotal Governmental Revenue $252.1 $248.3 $250.7 $252.7 $253.9 Use of Prior Year Reserves ** $21.1 $26.6 $17.7 $25.3 Total Governmental Budgeted Revenue $269.4 $277.3 $270.4 $279.2 Utility Rate Assumptions 12 Rate Changes: 2015 2016 2017 2018 Utility Actual Actual Budget Budget L&P 2.0% 3.2% 3.45% 1.8% Water 0.0% 0.0% 5.0% 5.0% Wastewater 3.0% 3.0% 3.0% 3.0% Storm Water 0.0% 0.0% 5.0% 0.0% No Change to Anticipated 2018 Utility Rates or Revenue Projections Cost Assumptions 13 2017 2018 General Inflation 2.3% 2.3% Salary Pool 2.5% 2.5% Medical and Dental Costs 12.5% 10.0% Gas Prices (Unleaded) $2.50 $2.40 Pension Contributions No Change GERP Supplemental Contribution $1.1M $1.1M Budgeted Staffing at 98% No Change No Change to Assumptions General Fund Contingency for 2017-18 Budget 14  $4.4M General Fund Reserves Assigned as Contingency • Buffer for a potential economic downturn • Allow time to plan changes to the expense structure • A portion of the set aside can be used in each year  None of the contingency used in 2017  Proposing to use $1.0M of the contingency in 2018  Council Finance asked about additional reductions vs. using contingency • In process – staff working on possible additional reductions Staff Recommends Using $1M of Contingency in 2018 Required Adjustment for 2018 Ongoing Expenses 15 ($ millions) General Fund Ongoing KFCG GF + KFCG 0.25% S&U Tax Funds TOTAL Sales Tax Revenue ($2.8) ($0.9) ($3.7) ($0.8) ($4.5) Municipal Court Revenue (0.5) 0.0 (0.5) 0.0 (0.5) Revenue Shortfall ($3.3) ($0.9) ($4.2) ($0.8) ($5.0) Property Taxes $0.7 $0.0 $0.7 $0.0 $0.7 Contingency Funding 0.6 0.4 1.0 0.0 1.0 Fuel Savings 0.4 0.0 0.4 0.0 0.4 SHORTFALL TO 2018 BUDGET ($1.6) ($0.5) ($2.1) ($0.8) ($2.9) Required Adjustment for 2018 Ongoing Expenses 16 ($ millions) Street Maintenance Natural Areas CCIP Original Sales Tax Budget $6.80 $6.80 $6.80 Revised Sales Tax Projection 6.54 6.54 6.54 Shortfall ($0.26) ($0.26) ($0.26) 2018 Ongoing Revenue Available 0.26 0.99 2016 Revenue Overage 0.70 Net Available/(Short) $0.00 $0.73 $0.44 17 Review of Proposed 2018 Reductions 18 Summary of Offer Reductions in General Fund and KFCG Fund Proposed Reductions TOTAL Street Maintenance Program ($900) Dispatch and Transcription Services ($186) Parks variable hourly healthcare ($182) Railroad Crossing Maintenance funding elimination ($150) Delay HVAC Replacement at EPIC and Senior Center ($132) Long Term vacancy cut - Facilities Project Manager ($116) Training and Vehicle Repair in Patrol ($81) Reduce budget for utilities by 2.5% ($50) Long Term vacancy - Bus Cleaner ($50) Parking Lot Maintenance ($40) Facility Paint Projects by 50% ($40) Cancel Skillsoft Online Courses Contract in 2018 ($40) Other (Reduction Offers less than $40k) ($367) Total Proposed Reductions ($2,333) 19 Review of Proposed 2018 Additions 2018 Available Funding 20 Note: Release of reserve for Woodward of $1.6 anticipated in 2017 Fund Balances have Healthy Reserves Available for Future One-Time Uses ($ millions) General Fund Ongoing General Fund One- Time KFCG Natural Areas Capital Expansion - Comm Parkland Neighbor- hood Parkland Transpor- tation Other Utilities TOTAL Reserves - 2017-18 Budget Contingency $ 4.4 $ 4.4 Reserves - Council Priorities Set Aside 1.8 1.8 Reserves - 2016 Year-end Available Balance 6.9 6.3 13.5 2.3 1.0 6.3 - 34.8 71.1 Reserves - 2017 Supplemental Use of Reserves (2.6) (0.9) (10.8) - (0.8) - (1.0) (16.0) Other Available or Unanticipated Revenue 0.1 2.5 1.4 0.2 4.3 Lincoln Avenue Offer Funds 0.3 0.5 0.8 Reduced Police Training Facility Design 0.3 0.3 TOTAL $ 0.1 $ 11.1 $ 5.4 $ 2.7 $ 4.8 $ 2.4 $ 6.0 $ 0.2 $ 33.8 $ 66.6 Summary of Offer Additions 21 Majority of Additions for Capital / Equipment Replacement ($ millions) General Fund Ongoing General Fund One- Time KFCG Natural Areas Capital Expansion - Comm Parkland Neighbor- hood Parkland Transpor- tation Other Utilities TOTAL Capital/Equipment Replacement $0.0 $0.2 $0.0 $1.4 $3.0 $1.2 0.0 $0.0 $0.4 $6.3 Safety & Security 0.1 0.3 0.0 0.1 0.0 0.0 0.0 0.0 0.0 $0.5 365 Transfort Service 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 $0.2 Other 0.0 1.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $1.2 TOTAL $0.1 $1.6 $0.0 $1.5 $3.0 $1.2 $0.0 $0.2 $0.4 $8.2 ($ millions) General Fund Ongoing General Fund One- Time KFCG Natural Areas Capital Expansion - Comm Parkland Neighbor- hood Parkland Transpor- tation Other Utilities TOTAL Capital/Equipment Replacement $0.0 $0.2 $0.0 $1.4 $3.0 $1.2 0.0 $0.0 $0.4 $6.3 Safety & Security 0.1 0.3 0.0 0.1 0.0 0.0 0.0 0.0 0.0 $0.5 365 Transfort Service 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 $0.2 Other 0.0 1.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $1.2 TOTAL $0.1 $1.6 $0.0 $1.5 $3.0 $1.2 $0.0 $0.2 $0.4 $8.2 22 Summary of Offer Additions Strategic Objective Budget Revision FTE Ongoing $ One-Time $ Total Capital/Equipment Replacement C&R 2.1 Community Park Development - East Community Park $0 $3,000,000 $3,000,000 HPG 7.8 Natural Areas - Shop Expansion 0 1,420,000 1,420,000 C&R 2.1 Neighborhood Park Development - Sidehill Park 2018 Funding 0 1,200,000 1,200,000 ENV 4.1 Microhydro Power Generator at the Water Treatment Facility 0 430,000 430,000 C&R 2.1 Parks Department Equipment Replacement 0 101,000 101,000 HPG 7.8 Lincoln Center Roof Replacement 0 100,000 100,000 Sub-Total $0 $6,251,000 $6,251,000 Safety & Security SAFE 5.1 Encampment Cleaning Services $130,000 $0 $130,000 SAFE 5.2 Dedicated Jail Space for Municipal Offenders 115,000 0 115,000 SAFE 5.6 Arc Flash Hazard Study and Assessment 0 100,000 100,000 HPG 7.1 Cyber Security Risk and Vulnerability Management 0 100,000 100,000 SAFE 5.1 Municipal Court Interim Security Enhancement 0.5 0 40,000 40,000 HPG 7.4 215 N. Mason Overall Security Enhancements 0 29,000 29,000 Sub-Total 0.5 $245,000 $269,000 $514,000 23 Summary of Offer Additions * This is an internal service that is funded by other departments that already have budgeted appropriations. Strategic Objective Budget Revision FTE Ongoing $ One-Time $ Total 365 Transfort Service HPG 7.1 Transfort Maintenance Shop Staffing (WFO)* 2.0 $140,000 $0 $140,000 TRAN 6.1 Transfort 365 Funding Shortfall for 2018 81,000 0 81,000 Sub-Total 2.0 $221,000 $0 $221,000 Other TRAN 6.2 Parking Technology $750,000 $750,000 NLSH 1.4 Parkway Renovations 3,000 200,000 203,000 NLSH 1.1 Occupancy Study 0 78,000 78,000 HPG 7.7 City Fund Foundation 0 65,000 65,000 ECON 3.4 Business Engagement Support 0 45,000 45,000 ENV 4.4 Air Quality Program Technical Support 0 40,000 40,000 Sub-Total $3,000 $1,178,000 $1,181,000 Grand Total 2.5 $469,000 $7,698,000 $8,167,000 2018 Available Funding After Additions 24 2018 Budget Additions Use Only a Portion of Available Revenue ($ millions) General Fund Ongoing General Fund One- Time KFCG Natural Areas Capital Expansion - Comm Parkland Neighbor- hood Parkland Transpor- tation Other Utilities TOTAL Summary of Available Revenue $ 0.1 $ 11.1 $ 5.4 $ 2.7 $ 4.8 $ 2.4 $ 6.0 $ 0.2 $ 33.8 $ 66.6 Total of Proposed Additions (0.1) (1.6) 0.0 (1.5) (3.0) (1.2) 0.0 (0.2) (0.4) (8.2) Remaining Available Reserves/Revenue $ - $ 9.4 $ 5.4 $ 1.2 $ 1.8 $ 1.2 $ 6.0 $ - $ 33.4 $ 58.4 2018 Budget Revision Summary 25 Guidance Requested: What questions or feedback does City Council have on the City Manager’s Recommended Revisions to the 2018 Budget? 26 Backup Information Reduction Details 27 28 Summary of Offer Reductions Department Out come Offer # Budget Reduction General Fund TOTAL KFCG TOTAL Planning, Dev & Trans Engineering TRAN 1.11 Railroad Crossing Maintenance funding elimination ($150,000) ($150,000) Streets TRAN 60.1 Street Maintenance Program - Reduction of services (625,000) (275,000) (900,000) Sub-Total ($775,000) ($275,000) ($1,050,000) Operation Services Operation Services HPG 19.1/19.2 Op Svcs - Reduce General Facility Maintenance ($15,000) ($15,000) Operation Services HPG 19.1/19.2 Op Svcs - Reduce Parking Lot Maintenance (40,000) (40,000) Operation Services HPG 19.1/19.2 Op Svcs - Reduce Facility Paint Projects by 50% (40,000) (40,000) Operation Services HPG 19.1/19.2 Op Svcs - Reduce budget for utilities by 2.5% (50,000) (50,000) Operation Services HPG 19.1/19.2 Op Svcs - Reduce window washing by 50% (18,000) (18,000) Operation Services HPG 19.3/19.4 Op Svcs - Delay HVAC Replacement at EPIC and Senior Center (132,000) (132,000) Operation Services HPG 19.1 Op Svcs - L/T vacancy cut - Bus Cleaner (50,000) (50,000) Operation Services HPG 19.2 Op Svcs - L/T vacancy cut - Facilities Project Manager (116,000) (116,000) Sub-Total ($461,000) $0 ($461,000) Police Services Administration SAFE 29.8 Reduction of Training Funds in the Office of the Chief ($1,000) ($1,000) Patrol SAFE 29.10/29.15Reduction of Training and Vehicle Repair in Patrol (8,000) (72,900) (80,900) Police Information Svcs SAFE 29.1/29.47 Reductions in Dispatch and Transcription Services (185,600) (185,600) Investigations SAFE 29.4/29.5 Reduced Detective/Advocate Training, Reduced Vehicle Repair (18,500) (11,000) (29,500) Sub-Total ($213,100) ($83,900) ($297,000) 29 Summary of Offer Reductions Department Out come Offer # Budget Reduction General Fund TOTAL KFCG TOTAL Comm & Op Services Cultural Services C&R 56.1 Reduction of administrative expenses ($33,400) ($33,400) Parks C&R 15.1 Reduction of Parks variable hourly healthcare (132,710) (48,890) (181,600) Recreation C&R 65.1/65.2 Reduction of Recreation programs and activities (32,000) (32,000) Sub-Total ($166,110) ($80,890) ($247,000) Sustainability Services Social Sustainability NLSH 27.1 SSD - Reduced support to various programs ($10,000) ($10,000) Environmental Services ENV 26.1 ESD - Reduced support to various programs (21,000) (21,000) Environmental Services ENV 26.2 ESD - Reduce Support for the Timberline Recycling Center 0 (20,000) (20,000) Sustainability Services Admin ENV 24.1 SSA - Reduce annual operational support for Enviro Portal Web (10,000) (10,000) Economic Health Office ECON 25.1 EHO - Reduced support to various programs (24,000) (4,000) (28,000) Sub-Total ($65,000) ($24,000) ($89,000) Info & Employee Svcs Human Resources HPG 42.1 HR - Cancel Skillsoft Online Courses Contract in 2018 ($40,000) ($40,000) Information Technology HPG 9.1 Reduction for IT Training and Innotas Test Environment (22,000) (22,000) Information Technology HPG 9.1 Reduce/Right Size Managed Print Services (19,000) (19,000) Sub-Total ($81,000) $0 ($81,000) 30 Summary of Offer Reductions Department Out come Offer # Budget Reduction General Fund TOTAL KFCG TOTAL Financial Services Budget HPG 10.8 3rd Party Training and Education Services Reduction ($25,000) ($25,000) Finance Administration HPG 11.2 Reduce Enhanced Funding for the Low Income Rebate Program (34,950) (34,950) Sub-Total ($59,950) $0 ($59,950) Executive Services City Clerk's Office HPG 13.1/13.2 Reduction of licensing, administrative and election expenses ($17,600) ($17,600) City Council HPG 22.1 Reduced discretionary expenses (1,500) (1,500) City Manager's Office HPG 22.2 Reduced support for programs and sponsorships (20,600) (20,600) Sub-Total ($39,700) $0 ($39,700) Legal Services City Attorney's Office HPG 62.1 Reduce Hourly Law Clerk ($8,000) ($8,000) Sub-Total ($8,000) $0 ($8,000) Municipal Court HPG None $0 $0 $0 Grand TOTAL ($1,868,860) ($463,790) ($2,332,650) 31 Summary of Offer Reductions by Service Area in General Fund and KFCG Fund * * A portion of this reduction to currently budgeted ongoing expenses would be used to fund proposed additional 2018 Offers that are ongoing in nature in the General Fund ($000's) Service Area Proposed Reductions PDT ($1,050) Operation Services (461) Police Services (297) Community & Operation Services (no Ops Svcs) (247) Sustainability Services (89) Info & Employee Services (81) Financial Services (60) Executive Services (40) Legal Services (8) Total Proposed Reductions ($2,333) Targeted Reduction $2,100 Reductions Greater than Target (available funding) ($233) 32 • YTD Development Review revenue in the General Fund is $280k over budget, this is 17% of the total General Fund revenue over budget ($1,605k on slide 5) • Per a request from Council, staff is analyzing Development Review revenue and expenses back to 2008 • The data will be shared with Council via a memo as soon as the analysis has been completed Development Review Activity 2017 Revenue YTD Projected % of Budget YTD Actuals Budget $ Variance General Fund $ 3,036,573 $ 3,316,238 109.21% $ 279,665 GID #1 321,695 315,606 98.11% (6,089) Transportation 244,200 440,244 180.28% 196,044 Total $ 3,602,468 $ 4,072,088 113.04% $ 469,620 Capital/Equipment Replacement $0.0 $0.2 $0.0 $1.4 $3.0 $1.2 0.0 $0.0 $0.4 $6.3 Safety & Security 0.1 0.3 0.0 0.1 0.0 0.0 0.0 0.0 0.0 $0.5 365 Transfort Service 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 $0.2 Other 0.0 1.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $1.2 TOTAL $0.1 $1.6 $0.0 $1.5 $3.0 $1.2 $0.0 $0.2 $0.4 $8.2 After netting out the proposed additions which are primarily for one-time funding, fund balances are still strong and well above minimum fund balance requirements. Summary of Available Reserves and Revenue after Recommended Additions: ($ millions) General Fund Ongoing General Fund One- Time KFCG Natural Areas Capital Expansion - Comm Parkland Neighbor- hood Parkland Transpor- tation Other Utilities TOTAL Summary of Available Revenue $ 0.1 $ 11.1 $ 5.4 $ 2.7 $ 4.8 $ 2.4 $ 6.0 $ 0.2 $ 33.8 $ 66.6 Total of Proposed Additions (0.1) (1.6) 0.0 (1.5) (3.0) (1.2) 0.0 (0.2) (0.4) (8.2) Remaining Available Reserves/Revenue $ - $ 9.4 $ 5.4 $ 1.2 $ 1.8 $ 1.2 $ 6.0 $ - $ 33.4 $ 58.4 The 2018 Budget Revisions allow the City to align ongoing expenses with reduced revenue forecasts from Sales Tax and Municipal Court operations. Additionally, through using only a small amount of available reserves, the City is able to fund additions to the 2018 Budget which address Council priorities and other capital projects that benefit our community.