HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/24/2018 - KEEP FORT COLLINS GREAT (KFCG) SUNSETDATE:
STAFF:
July 24, 2018
Ginny Sawyer, Policy and Project Manager
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
Keep Fort Collins Great (KFCG) Sunset.
EXECUTIVE SUMMARY
The purpose of this item to discuss the 2020 sunset of the Keep Fort Collins Great (KFCG) tax. KFCG is a .85-
cent voter approved dedicated tax that will sunset December 31, 2020. April 2019 is the anticipated election for a
potential ballot related question to address funding needs. Since 2011, KFCG has funded basic operations and
enabled the City to both maintain a desired level of service and respond to community desires in an environment
of population growth and annual inflation. Prior to the 2020 sunset of KFCG, the City would like to fully engage the
community in the decision of how to fund current service levels or make alternative plans for a lower service level
at a lower cost. If the desire is to replace KFCG funds in full this can be achieved through a dedicated tax, an
increase to the on-going base rate, or a combination of these. If the base rate is increased it can be done either
with or without taxing groceries. If City Council or the community ultimately decide NOT to replace KFCG revenue
in full then reduced levels of service from the general fund will need to be identified.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. What information does Council need to determine what level of service/revenue is desired?
2. Does Council have a preferred option?
a. Renew at current KFCG rate (.85-cent/dedicated)
b. Renew the .85-cent into the base rate
c. Change either the rate, the distributions, and/or dedicated/base rate
3. Prior to community outreach, does Council have a preference about including groceries in a possible
base rate increase?
4. Does Council support the timeline and outreach plan?
BACKGROUND / DISCUSSION
Local Tax
In 2008-2009 the City was experiencing significant revenue shortfalls. In addition, several core services
had unfunded needs for the service levels desired by the community. In response, a major initiative was
launched to engage the public regarding levels of service and identification of new revenue. In 2010, a
.85% 10-year dedicated tax (KFCG) was passed by voters (60%). The revenues from this tax are, by
ballot, distributed to the following areas:
33% Street Maintenance and Repair
17% Other Transportation Needs
17% Police Services
11% Parks and Recreation
July 24, 2018 Page 2
11% Other Community Priorities
11% Poudre Fire Authority
The addition of KFCG brought the City’s total tax rate to 3.85%. The on going general tax rate is 2.25%
and has not changed in over 30 years. There are three dedicated ¼-cent taxes (Open Space, Street
Maintenance, Community Capital Improvement) totaling .75% and the Keep Fort Collins Great .85%
dedicated tax.
Groceries are not taxed by any of the dedicated taxes. They are only taxed at the 2.25% base rate.
Prescription drugs are not taxed and if a purchase is made with food stamps, groceries are not taxed.
The total tax burden to residents remains at the lower end when compared regionally:
Detail:
City State City
Base
City
Dedicated
RTD* County Cultural Other Combined
Total
Boulder 2.90% 2.68% 1.18% 1.00% 0.985% 0.10% 8.845%
Colorado
Springs
2.90% 2.50% 0.62% 1.23% 1.00% 8.250%
Denver 2.90% 3.65% 0.00% 1.00% 0.10% 7.650%
Fort Collins 2.90% 2.25% 1.60% 0.55% 7.300%
Loveland 2.90% 3.00% 0.00% 0.55% 6.450%
*Transit costs are included in City general fund rather than a separate RTD tax fund.
July 24, 2018 Page 3
The Fort Collins “Price of Government” has also remained stable:
6.6 6.5
6.4 6.3
6.3
6.6
6.2
6.0
5.6
5.3 5.3
5.7 5.8
5.6 5.6
5.4 5.4 5.5 5.5
-
1
2
3
4
5
6
7
8
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Cents
Fiscal Years
Price of Government for the City of Fort Collins
(cents of every dollar earned going to pay for City services, including utilities and golf)
2017-2018 Estimated
The Numbers and the Impact
Since inception, the KFCG tax has resulted in the following revenue:
2011 2012 2013 2014 2015 2016 2017
Sales
Tax
$16.8 $17.7 $18.5 $20.2 $21.1 $21.9 $22.5
Use Tax 3.0 4.0 4.3 5.7 5.5 5.6 4.9
TOTAL $19.8 $21.8 $22.8 $25.9 $26.6 $27.4 27.4
Below are the KFCG expenditures 2011- 2018 and a few examples of how these dollars were used.
Street Maintenance and Repair - $58.7M
• KFCG funding has kept the streets Level of Service in the “B” Range (target.)
Other Transportation Needs - $20.4M
• KFCG has advanced the ADA updating of bus stops by 10 years.
• In 2017, KFCG funded 10% of the entire transit system in 2017. This equates to 13,000 hours
of bus service or approximately ½ of all annual MAX bus service.
• With KFCG funding, the City’s Safe Routes to School (SRTS) program provides bicycle and
pedestrian education to every public school student in the city at least one time in elementary,
middle, and high school educating nearly 8,000 students per year.
July 24, 2018 Page 4
Police Services - $25.5M
• KFCG supports a quarter of the Criminal Investigations Division. In 2017, this Division was
responsible for investigations and arrests in seven homicides, arrests of 12 serial burglars who
were responsible for over 200 burglaries, and developed the sex offender registration program
and website which tracks approximately 300 offenders, 40 of whom are homeless. Without
KFCG support, this Division would be handling the same caseload with 11 fewer staff members.
• KFCG funds the Daytime District One team which has focused on disruptive behaviors. Fort
Collins has seen an almost 45% increase in transient-related calls from June 2017 to June
2018. Many of those calls would be unanswered or seriously delayed without KFCG resources.
Parks and Recreation - $17.7M
• KFCG funds Neighborhood Park maintenance. Without this funding five neighborhood parks
would be closed.
• Playground improvements have been completed in four parks utilizing these funds. These
projects not only update the playground equipment but have also improved accessibility at these
sites. There is currently no other funding source dedicated to the replacement of infrastructure
for Parks. As equipment fails it would need to be removed when it becomes unsafe until an
appropriate funding source is provided for replacement.
• Downtown landscaping and maintenance has been paid for by KFCG since its inception.
Other Community Priorities - $17.8M
• KFCG has supported Cache la Poudre floodplain and wetland restoration efforts within McMurry
Natural Area. This project restored 1.5 miles of riverbank, created 11 acres of wetlands, 28
acres of cottonwood forests and 8.5 acres of native grasslands.
• KFCG supports increased public engagement in the community and online. This has included
work with local immigrant populations and more standardized and regular translation capabilities
at public meetings.
• KFCG provides funding for WNV education efforts, larval source reduction, backyard inspection
services, and mosquito trapping and testing. These funds allow the City to aggressively remove
mosquito populations at their earliest biology stage and helps the City to understand and convey
the location of the highest risk areas.
• KFCG has funded numerous initiatives related to assisting and addressing homelessness and
transient issues in the community. Efforts include: Outreach Fort Collins, Seasonal and
Emergency Shelter plans, Coordinated Assessment and Housing Placement. These programs
impact both individuals and businesses.
Poudre Fire Authority - $17.3M
• KFCG funds have been used for key capital facilities and equipment projects, including
replacement of diesel exhaust systems in PFA fire stations, fire engine replacement, and high-
rise firefighting equipment.
• A total of 12 full time firefighting positions are funded through KFCG revenues, including four
Battalion Chiefs, three firefighters, three safety officers, and an Emergency Medical Services
(EMS) supervisory position. These funds improve response times to the community, enhance
community and firefighter safety and improve firefighter training in EMS service.
• In addition to direct firefighting positions, a new Division Chief of Support and the Planning and
Analysis Battalion Chief are supported through KFCG funding.
July 24, 2018 Page 5
2008-2018 Snapshot
The last decade has seen an increase in both population and service area size for Fort Collins. When
taken together, this, coupled with annual inflation, would have resulted in significant service levels
reductions had it not been for KFCG.
2008 2017 TOTAL CHANGE
Population 140,034 167,492 19.61%
*CAGR 2.01%
Consumer Price Index 209.90 255.00 21.48%
CAGR 2.19%
Area of FC (sq. miles) 52.72 57.16 8.42%
CAGR 0.90%
General Fund (GF) $99.1 $139.1 40.4%
CAGR 3.84%
GF minus building
permits & Use Tax
$90.3 $122.0 35.1%
CAGR 3.39%
* Compound Annual Growth Rate
While City staffing numbers have increased, the Full Time Employee (FTE) per population ratio has
remained stable:
FTE FTE/1,000 POPULATION
SERVICE AREA 2008 2018 2008 2018
Community Services 163.80 189.75 1.17 1.11
Executive Services 16.25 20.00 0.12 0.12
Judicial Services 5.80 8.60 0.04 0.05
Legal Services 11.00 19.25 0.08 0.11
Financial Services 40.30 47.80 0.29 0.28
Info & Employee Services* 113.45 180.30 0.81 1.05
Police Services 257.75 314.75 1.84 1.84
Planning, Dev, & Trans 215.70 297.25 1.54 1.74
Sustainability Services 8.25 25.00 0.06 0.15
Utility Services 351.80 363.75 2.51 2.13
TOTAL CLASS/UNCLASS 1,184.10 1,466.45 8.46 8.57
Poudre Fire Authority** 169.50 212.00 1.02 1.01
*IT staff moved from Utilities to IT in 2015 for an increase of 20.70 FTE in IT and a corresponding decrease in Utilities.
**PFA numbers use total Fire District population
July 24, 2018 Page 6
Funding Examples
There are a number of funding options that could be considered in addressing the KFCG sunset
including: renewing KFCG as is at .85-cent and dedicated; renewing the .85-cent into the base rate to
be on going; changing the amount to something other than .85-cent; changing the current distributions;
pursuing both a base rate increase and a dedicated tax.
On average, 93% of KFCG funding supports ongoing operations.
Below are two options.
Option A. Generating $23M (equivalent to 2017 KFCG sales tax revenue):
1A: .75-cent increase to the base rate including groceries
2A: .85-cent either dedicated or into the base rate, excluding groceries
July 24, 2018 Page 7
% Needed Monthly Household
Impact
Total Tax
1A. With Groceries 0.75% $18.75 3.75%
2A. Without Groceries 0.85% $18.33 (current) 3.85%
Option B: Generating $17M (2017 KFCG revenue for Streets, Police, and Fire):
1B: .55-cent increase to base rate including groceries
2B: .65-cent either dedicated or into the base rate, excluding groceries
% Needed Monthly
Household
Impact
Total Tax General Fund
Reduction
1B. With Groceries 0.55% $13.75 3.55% $5.5M
2B. Without Groceries 0.65% $14.00 3.65% $5.3M
Outreach and Timeline
Staff has developed a public engagement plan covering all levels from Inform to Collaborate. This topic
is well suited for interactive engagement, such as live polling, online forums, and Council listening
sessions.
In early May, a focus group of 15 CityWork alumni convened to discuss the KFCG sunset. Key themes
and discussion points included:
• Appreciation of City services and tax needed to provide.
• Use the term “sunset” not renewal or expiration.
• 3.85 should be the base rate-maintain stability and get away from lots of small dedicated taxes.
• Need to balance stable funding for service with affordability. Greater risk of not being affordable
than of being a mediocre City.
• Messaging will need to be clear on services. Provide choices rather than open-ended questions.
Utilize Council, BFO teams, and City Plan Ambassadors.
• Absolutely need to maintain this revenue to be a resilient community.
• Consider increase in lodging tax?
Staff began engaging the public in conjunction with budget outreach. The budget year has offered a
unique opportunity to highlight offers that are funded with KFCG dollars in real time and engage the
public on level of service and desired programs.
Education and awareness efforts began in late June/early July and include posters, car magnets, Cable
14 bulletin board, Recreator advertisement, and a banner in the Fourth of July parade.
August to November outreach will involve work with boards and commissions, a Community Issues
Forum in conjunction with the Center for Public Deliberation, and a greater focus on on line
engagement.
Staff is proposing Council district meetings late in the year.
July 24, 2018 Page 8
An April 2, 2019 election would require ballot referral by February 5, 2019 at the latest. Ideally, the
majority of ballot development could occur prior to the 2018 holiday season and be finalized in January
2019.
Next key steps will be to develop actual funding scenarios to test with the public.
ATTACHMENTS
1. PowerPoint Presentation (PDF)
Ginny Sawyer 1
City Council – Work Session – July 24, 2018
Keep Fort Collins Great-2020 Sunset
ATTACHMENT 1
Direction Sought
1. What information does Council need to determine what level of
service/revenue is desired?
2. Does Council have a preferred option?
a. Renew at current KFCG rate (.85-cent/dedicated)
b. Renew the .85-cent into the base rate?
c. Change either the rate, the distributions, and/or dedicated/base rate?
3. Does Council have a preference about including groceries in a possible base
rate increase?
4. Does Council support the timeline and outreach plan?
2
KFCG Sunset Key Elements
KFCG revenue can be replaced in full or at another amount.
If the desire is to NOT replace KFCG revenue in full reduced levels of
service from the general fund will need to be identified.
Key next steps will be to develop actual funding scenarios to test with
the public.
3
Current Taxes and Comparisons
4
8.85% 8.75% 8.75% 8.60%
8.52% 8.50% 8.35%
8.25% 8.21%
7.65% 7.50%
7.30%
7.01%
6.45%
0%
2%
4%
6%
8%
10%
SALES TAX RATE COMPARISONS
Current Taxes and Comparisons
5
City State
City
Base
City
Dedicated
RTD County Cultural Other
Combined
Total
Boulder 2.90% 2.68% 1.18% 1.00% 0.985% 0.10% 8.845%
Colorado Springs 2.90% 2.50% 0.62% 1.23% 1.00% 8.250%
Denver 2.90% 3.65% 0.00% 1.00% 0.10% 7.650%
Fort Collins 2.90% 2.25% 1.60% 0.55% 7.300%
Loveland 2.90% 3.00% 0.00% 0.55% 6.450%
Collections to Date
6
33% Street Maintenance and Repair
17% Other Transportation Needs
17% Police Services
11% Parks and Recreation
11% Other Community Priorities
11% Poudre Fire Authority
KFCG Funding
7
$-
$4,000,000
$8,000,000
$12,000,000
$16,000,000
$20,000,000
2011 2012 2013 2014 2015 2016 2017
Total Ongoing Operations Supported by
KFCG
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2011 2012 2013 2014 2015 2016 2017
Total Cumulative FTE Cost Supported
by KFCG
On average, 93% of KFCG supports on-going operations
KFCG Impacts-Streets
8
Over $50M in KFCG has
been spent on street
maintenance.
14 bridges have been
replaced with KFCG.
Without replacement these
bridges would have
continued to degrade
resulting in safety issues
and possible load limiting
of the roadways.
KFCG Impacts-Other Transportation
9
KFCG has
advanced the ADA
updating of bus
stops by 10 years.
KFCG allowed
Transfort to provide
approximately
20,000 demand
service rides for the
disabled (2017).
KFCG Impacts-Police Services
10
KFCG allowed the City to respond
to residents’ desires to have more
police presence and help in
neighborhoods by funding both the
Campus West Connections
substation and the Neighborhood
Enforcement Team.
KFCG funds the Daytime District
One team which has focused on
disruptive behaviors in the
downtown, at Library park, in
transient camps and near homeless
shelters.
KFCG Impacts-Parks and Recreation
11
Playground improvements have
been completed in 4 parks utilizing
KFCG. These projects not only
update the playground equipment
but have also improved
accessibility at these sites.
Adaptive Recreation Opportunities
(ARO) is an inclusive program that
provides disabled community
members access to recreational
programs. Over 60,000 participants
have been affected by over 15,000
hours of inclusive programming
support.
KFCG Impacts-Other Community Priorities
12
KFCG supports:
Increased public
engagement in the
community and online.
WNV education efforts,
larval source reduction,
backyard inspection
services, and mosquito
trapping and testing.
Operational support for
the Timberline Recycling
center.
Coordinated City-wide
volunteer management.
KFCG Impacts-Poudre Fire Authority
13
KFCG funds have been used
for replacement of fire engines
and highrise firefighting
equipment.
A total of twelve full-time
firefighting positions are
funded through KFCG.
These funds improve response
times to the community,
enhance community and
firefighter safety and improve
firefighter training in EMS
service.
Population, Area and Economic Data
14
CAGR = Compound Annual Growth Rate
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Population 140,034 142,853 144,416 145,809 149,110 152,205 155,400 158,600 161,000 167,492
2008-2017 Change 19.61%
CAGR 2.01% 1.55% 1.36% 1.58% 1.68% 1.75% 1.79% 1.76% 2.01%
CPI 209.90 208.55 212.45 220.29 224.57 230.79 237.20 239.99 246.64 255.00
2008-2017 Change 21.48%
CAGR -0.64% 0.61% 1.62% 1.70% 1.92% 2.06% 1.93% 2.04% 2.19%
Area of Fort Collins (sq mi) 52.72 53.38 55.46 55.58 55.69 55.83 56.61 56.61 56.78 57.16
2008-2017 Change 8.42%
CAGR 1.25% 2.57% 1.78% 1.38% 1.15% 1.19% 1.02% 0.93% 0.90%
General Fund Revenue
15
Revenue Source 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Sales Tax $49.7 $48.1 $50.1 $52.5 $55.3 $57.9 $63.0 $66.2 $68.1 $69.4
Property Taxes 16.2 16.5 17.1 17.0 17.0 16.9 17.6 18.2 20.6 21.4
Use Tax 7.7 5.7 7.8 7.9 10.5 10.6 15.8 17.5 15.8 13.9
PILOT from Utilities 6.9 6.9 7.7 8.0 8.9 9.1 9.1 9.4 10.0 10.2
General Govt Fees 6.2 5.5 6.0 6.0 6.3 6.5 6.6 7.0 7.4 6.9
Building Permits 1.1 0.6 0.8 1.1 1.8 2.5 4.0 3.2 3.3 3.2
Occupational Privilege Tax 2.5 2.4 2.3 2.4 2.6 2.7 2.7 2.9 2.8 3.0
Fines & Forfeitures 2.7 2.8 2.7 2.7 2.8 2.8 2.5 2.8 2.2 2.0
Planning and Development Fees 0.5 0.3 0.4 0.5 0.8 1.1 1.3 1.2 1.5 1.3
Earnings on Investments 2.1 1.0 0.8 0.6 0.4 0.1 1.3 1.0 0.5 1.1
All Other Revenue 3.7 3.7 4.8 5.0 5.1 4.4 4.6 6.2 5.7 6.5
TOTAL $99.1 $93.6 $100.5 $103.7 $111.3 $114.5 $128.6 $135.5 $137.8 $139.1
Year-over-year increase -5.53% 7.43% 3.09% 7.40% 2.82% 12.35% 5.35% 1.73% 0.93%
CAGR -5.53% 0.74% 1.52% 2.96% 2.93% 4.44% 4.57% 4.21% 3.84%
Not including Building Permits
or Use Tax
$90.3 $87.3 $91.9 $94.7 $99.0 $101.4 $108.8 $114.8 $118.7 $122.0
Year-over-year increase -3.34% 5.31% 3.04% 4.54% 2.39% 7.30% 5.53% 3.40% 2.72%
CAGR -3.34% 0.89% 1.60% 2.33% 2.34% 3.15% 3.49% 3.48% 3.39%
FTE 2008-2018
16
FTE FTE/1,000 POPULATION
SERVICE AREA 2008 2018 2008 2018
Community Services 163.80 189.75 1.17 1.11
Executive Services 16.25 20.00 0.12 0.12
Judicial Services 5.80 8.60 0.04 0.05
Legal Services 11.00 19.25 0.08 0.11
Financial Services 40.30 47.80 0.29 0.28
Info & Employee Services 113.45 180.30 0.81 1.05
Police Services 257.75 314.75 1.84 1.84
Planning, Dev, & Trans 215.70 297.25 1.54 1.74
Sustainability Services 8.25 25.00 0.06 0.15
Utility Services 351.80 363.75 2.51 2.13
TOTAL CLASS/UNCLASS 1,184.10 1,466.45 8.46 8.57
Poudre Fire Authority 169.50 212.00 1.02 1.01
Option A
Generating $23M annually (current KFCG without Use Tax)
17
% Needed
Monthly
Household Impact
Total Tax
1A.With Groceries 0.75% $18.75 3.75%
2A.Without Groceries 0.85% $18.33 (current) 3.85%
Option B
Generating $17M annually
2017 KFCG revenue for Streets, Police, and Fire
18
%
Needed
Monthly
Household
Impact
Total Tax
General Fund
Reduction
1B.With Groceries 0.55% $13.75 3.55% $5.5M
2B.Without Groceries 0.65% $14.00 3.65% $5.3M
Outreach and Education
Budget Booths
Online Engagement
Signage
Banners
Magnets
Council Outreach Meetings
October Community Issue
Forum
19
Timeline
Currently Scheduled:
July 24 Work Session
November 13 Work Session
Last Day to Refer Ballot language- February 5, 2019
Election-April 2, 2019
20
Direction Sought
1. What information does Council need to determine what level of
service/revenue is desired?
2. Does Council have a preferred option?
a. Renew at current KFCG rate (.85-cent/dedicated)
b. Renew the .85-cent into the base rate?
c. Change either the rate, the distributions, and/or dedicated/base rate?
3. Does Council have a preference about including groceries in a possible base
rate increase?
4. Does Council support the timeline and outreach plan?
21