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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/22/2019 - KEEP FORT COLLINS GREAT SUNSETDATE: STAFF: January 22, 2019 Ginny Sawyer, Policy and Project Manager WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Keep Fort Collins Great Sunset. EXECUTIVE SUMMARY The purpose of this work session is to present Council with options for renewing/maintaining Keep Fort Collins Great revenue once the 0.85 tax sunsets on December 31, 2020. April 2019 is the anticipated election for a potential ballot related question to address funding needs. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Which revenue replacement option would Council like to move forward? 2. If Option B, what should be the length of the term? BACKGROUND / DISCUSSION 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. 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 11% Other Community Priorities 11% Poudre Fire Authority Prior to the 2020 sunset of KFCG, and before building the 2021-22 budget, the City has been engaging 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 City Council or the community decide NOT to replace KFCG revenue in full then reduced levels of service will need to be identified during the 2020 budget process for 2021-22 budgets. Options The following two options are being brought forward following a year-plus process that included Council Finance meetings, Council meetings, public meetings, and interaction with 18 City Boards. January 22, 2019 Page 2 Option A - Increase the City base sales tax rate by 0.85%. This option would be a one-time vote to increase the base rate tax by 0.85%. This revenue would be general fund revenue and would be prioritized and allocated by Council and the community to address needs and desires through the budgeting process. Option B - Increase the City base sales tax rate by 0.60% and put forward a 0.25% renewable tax. This option includes a one-time vote to increase the base sales tax by 0.6% and a vote to consider a 0.25% dedicated, renewable tax. The 0.6% amount covers all but 0.01% of current level KFCG contributions for Police, Streets, Fire, and Parks and Recreation programs and services. To maintain existing KFCG programs and services, the remaining 0.25% tax would support “Other Transportation” and “Sustainability” programs and services. Ballot Language Both options would include ballot language to honor and continue to provide funding for Fire Protection and Emergency services at an 11% of 0.85% amount. Neither option would result in an increase to tax on groceries or prescription drugs. The current 0.85 tax exempts manufacturing and current ballot language will reflect the same exemption. Both options would trigger TABOR election notice requirements. Outreach Staff has been heavily engaged in public outreach on this topic. Specific outreach has included: Boards and Commissions Business/Community Groups Other Meetings • Economic Advisory Commission • Women’s Commission • Golf Board • Parks and Recreation Board • Zoning Board of Appeals • Downtown Development Authority • Air Quality Board • Transportation Board • Housing Catalyst Board • Affordable Housing Board • Campus West Merchants • UniverCity Connections • Visit Fort Collins Board • North Fort Collins Business Association • Fort Collins Chamber Legislative Committee • Downtown Business Association (Board & Members) • Leadership Fort Collins • Six open meetings (one in each Council district) • Three open meetings for CityWork Alumni • Poudre Fire District Board • Coloradoan Editorial Board • January 10, 2019 open meeting January 22, 2019 Page 3 • Land Conservation and Stewardship Board • Senior Advisory Board • Youth Advisory Board • CDBG Commission • Commission on Disability • Planning & Zoning Board • Natural Resources Board • Landmark Preservation Commission All of these events have included background information and varying data related to KFCG and City and financial information over time. The general questions put to these groups focused on “do residents like the current level of service they experience, and do they feel the service is provided at the right price.” Discussions also focus on the functions and specifics of base rate and dedicated taxes. In general, feedback highlights include: • Overall support for replacing most if not all revenue. • Some trepidation of losing dedicated funding for particular services but an understanding that greater flexibility in funding could be a benefit. • Encouragement to keep the ballot and ballot language as simple as possible. • Overall support for an increase to the base rate (particularly to cover police, streets, and fire.) • City revenue and expense is a challenging conversation for the public to be able to provide specific revenue options. • Majority like level of service with limited suggestions for where to reduce. Next Steps • February 5 regular meeting- Last day to refer language for April 2019 election. ATTACHMENTS 1. January 2, 2019 Work Session Summary (PDF) 2. Description of Ballot Options A and B (PDF) 3. PowerPoint Presentation (PDF) ATTACHMENT 1 DRILLING PLATFORMS - FUNDED OFFERS All KFCG OCP and OT goes away = $6.9M ongoing and $1.2M one-time as of 1/3/2019 entire offer is eliminated reduction amount funding for offer is reduced Rank Offer # - Offer Description FTE Offer Type Offer Total General Fund Ongoing General Fund 1-Time & Reserves KFCG Dedicated KFCG OCP KFCG OT Other Notes / Funds included in "Other" Ongoing One-Time Total NEIGHBORHOOD LIVABILITY & SOCIAL HEALTH 1 42.1 - Social Sustainability O 1,659,853 1,091,806 0 568,047 2 66.1 - Neighborhood Programs and Services O 1,683,469 1,503,388 100,000 80,081 3 65.1 - Development Review Programs and Services O 6,743,330 5,634,562 0 101,000 1,007,768 806K Trans, 202k Data & Comm 4 53.1 - Low Income, Senior and Disabled Rebate Programs O 269,500 269,500 0 0 5 37.1 - Graffiti Abatement Program O 144,077 144,077 0 0 6 66.2 - Larimer Humane Society Contract O 830,000 682,330 147,670 0 7 89.1 - West Nile Virus Management Program O 359,081 0 0 359,081 359,081 0 359,081 8 48.1 - ENHANCEMENT: Poudre School District After-School Programs for Title 1 Schools E 75,000 75,000 0 0 75,000 0 75,000 10 42.6 - ENHANCEMENT: Homelessness Initiatives E 294,000 50,000 244,000 0 50,000 244,000 294,000 16 65.5 - ENHANCEMENT: Wireless Communications Plan E 50,000 0 50,000 0 0 50,000 50,000 22 65.8 - KFCG ENHANCEMENT: 1.0 FTE Contractual - Historic Preservation Building Survey 1.00 E 89,564 0 0 89,564 89,564 0 89,564 24 42.3 - ENHANCEMENT: Human Services Program Grant Funding E 250,000 100,000 150,000 0 100,000 150,000 250,000 28 89.2 - KFCG ENHANCEMENT: West Nile Virus - Adult Mosquito Treatment Efficacy Study E 20,000 0 0 20,000 0 20,000 20,000 31 42.12 - KFCG ENHANCEMENT: Murphy Center Expansion & Housing Placement System E 88,000 0 0 88,000 0 88,000 88,000 32 65.9 - REDUCTION: -1.0 FTE - Planning Technician & Intern (vacant) (1.00) R (84,475) (84,475) 0 0 Excluded Reduction Offer 33 66.7 - REDUCTION: -1.0 FTE - Compliance Inspector (vacant) (1.00) R (64,505) (64,505) 0 0 Excluded Reduction Offer Funded Subtotal (1.00) $12,406,894 $9,401,683 $691,670 $1,305,773 $1,007,768 $673,645 $552,000 $1,225,645 448,645 CULTURE & RECREATION 1 47.2 - Recreation Activities and Programs O 5,036,682 0 0 1,007,360 0 4,029,322 Recreation Fund 2 47.3 - Recreation Administration and Communication Services O 1,213,849 461,175 0 150,000 0 602,674 Recreation Fund 3 58.3 - Museum of Discovery O 1,074,336 945,801 0 0 0 128,535 Museum Fund 4 58.4 - Gardens on Spring Creek O 1,010,614 810,068 91,000 109,546 0 0 5 29.1 - Parks, Trails and Facility Grounds Maintenance O 7,846,699 6,192,342 283,747 904,716 65,894 400,000 Con Trust Fund 6 47.1 - Ice & Aquatics O 2,718,779 0 0 497,259 0 2,221,520 Recreation Fund 7 28.1 - Memorial Parks O 838,498 153,006 0 103,020 0 582,472 Cemeteries, Perpetual Care 8 49.1 - Cultural Facilities: Utilities and Custodial O 1,809,221 1,809,221 0 0 0 0 10 58.1 - Cultural Services O 4,557,344 1,581,909 0 0 0 2,975,435 Cultural Svcs 11 29.3 - Parks Life Cycle Program O 550,000 0 0 550,000 0 0 12 57.1 - Urban Forest Management O 2,079,565 1,880,452 0 0 199,113 0 15 27.1 - Community Services Administration and Technology Support O 356,635 306,097 0 0 50,538 0 19 29.8 - KFCG ENHANCEMENT: 2.0 FTE - Park Maintenance Workers and DRILLING PLATFORMS - FUNDED OFFERS All KFCG OCP and OT goes away = $6.9M ongoing and $1.2M one-time as of 1/3/2019 entire offer is eliminated reduction amount funding for offer is reduced Rank Offer # - Offer Description FTE Offer Type Offer Total General Fund Ongoing General Fund 1-Time & Reserves KFCG Dedicated KFCG OCP KFCG OT Other Notes / Funds included in "Other" Ongoing One-Time Total TARGET REDUCTION 30 29.6 - ENHANCEMENT: Improving Playground Accessibility for All E 125,000 0 125,000 0 0 0 Skipped due to needing ongoing 33 57.5 - ENHANCEMENT: Forestry Emerald Ash Borer Pre-Infestation Program E 50,000 0 50,000 0 0 0 0 50,000 50,000 46 32.7 - ENHANCEMENT: Poudre River Downtown Master Plan Reach 4 Feasibility Study E 100,000 0 100,000 0 0 0 0 100,000 100,000 53 57.6 - REDUCTION: Forestry Tree Replacement Plantings E (75,000) (75,000) 0 0 0 0 Excluded Reduction Offer 54 47.12 - REDUCTION: -1.0 FTE – EPIC Ice Leader Position (1.00) E (60,177) 0 0 0 0 (60,177) Excluded Reduction Offer 55 47.13 - REDUCTION: -0.50 FTE Recreation Coordinator (0.50) E (46,150) 0 0 0 0 (46,150) Excluded Reduction Offer Funded Subtotal 5.25 $30,699,807 $14,299,056 $974,747 $3,508,858 $315,545 $10,833,631 $233,985 $150,000 $383,985 ECONOMIC HEALTH 3 41.1 - Economic Health Office O 889,156 589,756 0 299,400 0 12 30.1 - Downtown Landscaping and Maintenance O 1,984,941 1,662,961 38,000 228,980 55,000 GID 228,980 0 228,980 14 67.1 - Downtown General Improvement District (GID) Core Offer O 112,000 0 0 0 112,000 Dedicated funding source Dedicated funding 15 41.3 - ENHANCEMENT: Use Tax and Business Personal Property Tax Rebates E 401,157 0 401,157 0 0 Dedicated funding source Dedicated funding 22 80.1 - Convention and Visitors Services O 1,098,916 1,098,916 0 0 0 Dedicated funding source Dedicated funding 25 41.10 - Northern Colorado Regional Airport Operational Support O 177,500 111,257 66,243 0 0 Contractual obligation 26 30.2 - ENHANCEMENT: 2.0 FTE - Park Technician and Park Maintenance Worker with Expansion of Downtown Maintenance 2.00 E 173,998 135,498 38,500 0 0 135,498 38,500 173,998 31 41.15 - ENHANCEMENT: Metro District Support E 87,500 87,500 0 0 0 87,500 0 87,500 46 80.2 - ENHANCEMENT: Tourism Master Plan, Visitor and Convention Services E 50,000 0 50,000 0 0 0 50,000 50,000 Funded Subtotal 2.00 $4,975,168 $3,685,888 $593,900 $0 $528,380 $167,000 $451,978 $88,500 $540,478 ENVIRONMENTAL HEALTH 5 43.2 - Timberline Recycling Center O 291,916 0 0 291,916 0 9 86.2 - Natural Areas - Department Management O 1,118,975 53,375 0 0 1,065,600 Natural Areas Fund 13 43.1 - Environmental Services O 1,624,914 1,441,799 0 183,115 0 250,000 250,000 20 86.5 - Natural Areas - Planning and Special Projects O 1,721,256 30,585 0 98,770 1,591,901 Natural Areas Fund 129,355 129,355 24 9.16 - ENHANCEMENT: CAPITAL - Utilities: Environmental Learning Center Dam Rehabilitation - Design & Permitting E 500,000 0 166,500 0 333,500 Utilities Funds / Skipped due to needing ongoing 33 43.12 - ENHANCEMENT: 2030 Climate Action and Energy Policy Update – Optimizing Policy, Targets and Strategies E 40,000 0 20,000 0 20,000 Utilities Funds / Skipped due to needing ongoing 35 86.10 - ENHANCEMENT: Encampment Cleaning Services E 206,000 0 100,000 26,000 80,000 Utilities Funds 126,000 126,000 38 9.20 - ENHANCEMENT: Utilities: Legal and Consulting Services for Response to the Northern Integrated Supply Project E 150,000 75,000 0 0 75,000 Utilities Funds 75,000 75,000 43 43.10 - KFCG ENHANCEMENT: Road to Zero Waste Plan Update E 15,000 0 0 15,000 0 15,000 15,000 DRILLING PLATFORMS - FUNDED OFFERS All KFCG OCP and OT goes away = $6.9M ongoing and $1.2M one-time as of 1/3/2019 entire offer is eliminated reduction amount funding for offer is reduced Rank Offer # - Offer Description FTE Offer Type Offer Total General Fund Ongoing General Fund 1-Time & Reserves KFCG Dedicated KFCG OCP KFCG OT Other Notes / Funds included in "Other" Ongoing One-Time Total TARGET REDUCTION 2 25.2 - Police Patrol Services O 16,972,937 15,876,625 91,431 1,004,881 0 0 3 25.5 - Police Information Services O 8,019,397 6,657,427 0 1,361,970 0 0 4 33.1 - Municipal Court Services O 1,131,144 1,049,582 9,810 0 71,752 0 5 75.1 - Poudre Fire Operation, Maintenance & Capital (General Fund) O 26,715,616 26,715,616 0 0 0 0 6 75.2 - KFCG: Poudre Fire Authority Operation, Maintenance & Capital O 2,972,456 0 0 2,972,456 0 0 7 87.1 - City Manager's Office: Office of Emergency Management - 0.5 FTE plus 2.0 FTE transfer from PFA 2.50 O 357,087 230,638 49,449 0 0 77,000 Utilities Funds 8 51.1 - Police Facilities Utilities and Building Operations O 422,515 386,515 36,000 0 0 0 9 25.1 - Police Office of the Chief and Administration O 3,525,894 3,049,600 0 476,294 0 0 10 25.4 - Police Criminal Investigations Division O 7,275,807 5,688,208 85,000 1,502,599 0 0 11 25.9 - Police Colorado Regional Information Sharing Project [CRISP] O 494,040 0 494,040 0 0 0 12 25.6 - Police Vehicle Program O 2,087,704 1,784,950 133,000 169,754 0 0 13 25.3 - Police Community and Special Services O 5,268,946 3,729,172 25,000 1,514,774 0 0 15 25.23 - ENHANCEMENT: CAPITAL REPLACEMENT - Police Services Uninterrupted Power Supply (UPS) Replacement - Minor Capital Replacement E 148,540 0 148,540 0 0 0 16 25.14 - ENHANCEMENT: Police Radio Infrastructure - Northern Colorado Regional Communication Network [NCRCN] E 58,860 0 58,860 0 0 0 20 96.3 - ENHANCEMENT: Event Log and Performance Monitoring Tool E 139,300 0 12,996 0 0 126,304 Utilities Funds 21 33.2 - ENHANCEMENT: 0.2 FTE for Municipal Court Judge and Security Screeners 0.20 E 93,268 93,268 0 0 0 0 22 25.19 - ENHANCEMENT: Police School Resource Officers for Poudre School District E 110,240 110,240 0 0 0 0 23 25.16 - ENHANCEMENT: Police Reports Voice-to-Text Transcription E 88,836 (3,890) 92,726 0 0 0 25 25.11 - ENHANCEMENT: 8.0 FTE - Police Services Resources for a Growing Community 8.00 E 391,593 391,593 0 0 0 0 26 25.20 - ENHANCEMENT: Debt Service for Police Regional Training Facility E 661,000 218,130 442,870 0 0 0 28 25.8 - Police Red Light & Camera Radar Program E 599,897 599,897 0 0 0 0 29 96.2 - ENHANCEMENT: Cyber Security Training, Monitoring and Measuring E 70,000 0 30,800 0 0 39,200 Utilities Funds 42 73.2 - ENHANCEMENT: 1.0 FTE (0.75 FTE Attorney, 0.25 FTE Legal Assistant) - Municipal Court Prosecution Resources 1.00 E 175,683 155,683 20,000 0 0 0 155,683 20,000 175,683 50 73.1 - ENHANCEMENT: Municipal Prosecution Technology Tools E 24,755 24,755 0 0 0 0 24,755 0 24,755 55 25.15 - ENHANCEMENT: Police Camera Radar/Red Light Addition E 575,124 575,124 0 0 0 0 Dedicated funding source Dedicated funding 68 25.31 - KFCG ENHANCEMENT: 1.0 FTE - FC911 Emergency Services DRILLING PLATFORMS - FUNDED OFFERS All KFCG OCP and OT goes away = $6.9M ongoing and $1.2M one-time as of 1/3/2019 entire offer is eliminated reduction amount funding for offer is reduced Rank Offer # - Offer Description FTE Offer Type Offer Total General Fund Ongoing General Fund 1-Time & Reserves KFCG Dedicated KFCG OCP KFCG OT Other Notes / Funds included in "Other" Ongoing One-Time Total TARGET REDUCTION 10 35.3 - Essential Street Operations O 3,114,863 440,794 0 0 1,132,963 1,541,106 Transportation Fund 1,573,757 0 1,573,757 11 35.1 - Street Maintenance Program O 15,885,512 0 0 7,606,019 0 8,279,493 Transportation Fund / KFCG Dedicated to Street Maintenance 14 6.4 - FC Bikes O 435,494 0 0 0 352,251 83,243 Transportation Fund 352,251 0 352,251 15 6.3 - Safe Routes to School Program O 169,807 0 0 0 169,807 0 169,807 0 169,807 16 6.9 - School Crossing Guard Program O 94,350 0 0 0 94,350 0 94,350 0 94,350 17 31.1 - Streetscape Maintenance O 760,604 760,604 0 0 0 0 760,604 0 760,604 19 34.4 - Signal Pole Inspection and Maintenance O 100,000 0 100,000 0 0 0 0 100,000 100,000 22 34.5 - Neighborhood Traffic Mitigation Program O 150,000 88,581 0 0 61,419 0 General Fund portion is dedicated to this program 61,419 0 61,419 25 1.3 - KFCG City Bridge Program O 1,700,000 0 0 1,700,000 0 0 KFCG Dedicated to Street Maintenance 33 1.26 - KFCG ENHANCEMENT: Railroad Crossing Maintenance E 125,000 0 0 0 125,000 0 125,000 0 125,000 34 45.11 - ENHANCEMENT: Electric Bus Pilot E 880,000 0 105,000 0 0 775,000 Transit Fund / Grant related 35 45.15 - ENHANCEMENT: Transfort Capital Asset Repair and Replacement E 2,387,000 0 144,000 0 0 2,243,000 Transit Fund / Grant related 37 69.3 - ENHANCEMENT: Debt Service for Prospect & I-25 Interchange E 1,377,500 674,833 483,667 0 0 219,000 Transportation Fund 1,158,500 0 1,158,500 40 31.2 - ENHANCEMENT: 1.0 FTE - Park Technician and New Streetscapes 1.00 E 162,833 162,833 0 0 0 0 162,833 0 162,833 45 34.3 - KFCG ENHANCEMENT: Adaptive Signal System Expansion E 57,581 0 0 0 57,581 0 0 57,581 57,581 91 31.5 - REDUCTION: Contractual Median Maintenance R (25,000) (25,000) 0 0 0 0 Excluded Reduction Offer Funded Subtotal 1.00 $56,794,984 $10,936,407 $981,655 $9,306,019 $4,840,191 $30,730,712 $0 $4,708,521 $157,581 $4,866,102 2,772,731 100,000 1,993,371 HIGH PERFORMING GOVERNMENT 1 2.1 - Information Technology Application Services O 3,304,825 2,022,329 0 0 0 0 1,282,496 Data & Comm 2 3.1 - Information Technology Infrastructure Services O 3,155,915 1,383,448 0 0 0 0 1,772,467 Data & Comm 3 3.2 - Information Technology Client Services O 1,594,117 1,132,458 0 0 0 0 461,659 Data & Comm 4 3.3 - Information Technology Infrastructure Equipment O 1,610,586 410,835 332,000 30,000 0 0 837,751 Data & Comm 5 4.1 - Information Technology Administration Services O 524,687 376,533 0 0 0 0 148,154 Data & Comm 6 5.1 - HR Core Services O 2,399,883 2,056,883 343,000 0 0 0 0 9 10.2 - Utilities: Customer Service & Administration - Customer Connections Programs and Services O 6,710,985 50,744 0 0 0 0 6,660,241 Utilities 12 13.1 - City Clerk Services O 807,436 807,436 0 0 0 0 0 13 13.2 - Elections O 318,744 0 318,744 0 0 0 0 14 15.1 - Communications and Public Involvement (CPIO) O 1,848,005 1,763,559 0 0 84,446 0 0 15 39.2 - City Manager's Office O 2,303,336 2,123,118 18,000 0 0 0 162,218 16 52.1 - Financial Programs and Services O 3,929,009 3,820,705 108,304 0 0 0 0 17 64.1 - PDT Administration O 1,252,393 599,139 0 0 0 0 653,254 19 63.1 - General Legal Services O 2,637,059 2,242,040 0 0 0 0 395,019 Utilities 20 39.1 - City Council O 177,290 161,290 0 0 16,000 0 0 DRILLING PLATFORMS - FUNDED OFFERS All KFCG OCP and OT goes away = $6.9M ongoing and $1.2M one-time as of 1/3/2019 entire offer is eliminated reduction amount funding for offer is reduced Rank Offer # - Offer Description FTE Offer Type Offer Total General Fund Ongoing General Fund 1-Time & Reserves KFCG Dedicated KFCG OCP KFCG OT Other Notes / Funds included in "Other" Ongoing One-Time Total TARGET REDUCTION 32 50.8 - ENHANCEMENT: Fleet Vehicle and Equipment Replacements E 664,943 0 206,648 9,310 0 3,185 445,800 Equipment Fund / Skipped due to needing ongoing 43 50.3 - ENHANCEMENT: Facility Major Maintenance E 400,000 0 400,000 0 0 0 0 Skipped due to needing ongoing 45 50.14 - ENHANCEMENT: 0.0 Net FTE Contractual to Classified Conversion - Facilities Construction Project Manager E 7,621 7,621 0 0 0 0 0 $7k is noise on an $8M task 66 71.2 - ENHANCEMENT: Arc Flash Hazard Analysis E 70,000 0 70,000 0 0 0 0 0 70,000 70,000 73 52.7 - ENHANCEMENT: City Give Program 1.0 FTE Contractual (formerly City Fund Foundation) 1.00 E 146,351 0 146,351 0 0 0 0 75 15.3 - ENHANCEMENT: Video Production Assistance Programs - Fort Collins Public Access Network (FC Public Media) E 15,000 0 15,000 0 0 0 0 0 15,000 15,000 85 15.4 - REDUCTION: Stop Doing - City News Newsletter R (26,000) (26,000) 0 0 0 0 0 Excluded Reduction Offer 86 3.10 - REDUCTION: Scheduled Computer Replacements R (125,000) 0 (125,000) 0 0 0 0 Excluded Reduction Offer Funded Subtotal 1.00 $44,988,832 $29,231,551 $2,433,047 $39,310 $349,363 $3,185 $12,932,376 $201,204 $85,000 $286,204 201,204 85,000 0 0 0 0 TOTAL ALL OUTCOMES $3,185,614 $4,843,376 $6,904,126 $1,214,081 $8,118,207 1/9/2019 Page 5 of 5 Option “A” Ballot Question Shall City of Fort Collins taxes be increased by an estimated [dollar amount] for the first full fiscal year (2021), and by whatever additional amounts are raised annually thereafter, by extending, without an expiration date, the City’s current .85% sales and use tax set to expire December 31, 2020; with this tax not applying to items exempt from the City’s sales and use tax under the City Code, such as food for home consumption and prescription drugs, and the use tax not applying to manufacturing equipment; with the revenue from it used for any public purpose, except 11% of revenues shall be used to fund fire protection and related services in the City through the Poudre Fire Authority or other means; and with all the tax revenues, and investment earnings thereon, collected, retained and spent as a voter-approved revenue change notwithstanding the spending and revenue limitations of Article X, Section 20 of the Colorado Constitution and any other law? Option “B” Ballot Question Shall City of Fort Collins taxes be increased by an estimated [dollar amount] for the first full fiscal year (2021), and by whatever additional amounts are raised annually thereafter, by extending the City’s current .85% sales and use tax set to expire December 31, 2020; with .60% of the tax rate having no expiration date and its revenues used for any public purpose, except 15.6% of revenues shall be used to fund fire protection and related services in the City through the Poudre Fire Authority or other means; with the remaining .25% of the rate used for the City’s sustainability and transportation programs and expiring [date]; with the sales and use tax not applying to items exempt from the City’s sales and use tax under the City Code, such as food for home consumption and prescription drugs, and the use tax not applying to manufacturing equipment; and with all the tax revenues, and investment earnings thereon, collected, retained and spent as a voter-approved revenue change notwithstanding the spending and revenue limitations of Article X, Section 20 of the Colorado Constitution and any other law? ATTACHMENT 2 1 City Council Work Session January 22, 2018 Keep Fort Collins Great-2020 Sunset ATTACHMENT 3 Direction Sought 1. Which revenue replacement option would Council like to move forward? 2. If Option B: • What should be the length of the term? 2 Timeline  Last Day to Refer Ballot language- February 5, 2019  Election-April 2, 2019 3 KFCG Conversation November 2017 Council Finance Committee January 2019 Council Work Session 4 Council Finance Committee Council Work Session Council Regular Meeting KFCG Sunset Key Elements Council direction to date:  No additional tax on groceries  Don’t increase total tax burden  Maintain financial commitments to Poudre Fire Authority 5 Options: Same Revenue Option A: Increase the City base sales tax rate by 0.85%. • One-time vote to increase the base rate tax by 0.85%. • Revenue prioritized and allocated by Council through budgeting process. Option B: Increase the City base sales tax rate by 0.60% and put forward a 0.25% dedicated, renewable tax • One-time vote to increase the base sales tax by 0.6% and consideration of a 0.25% dedicated tax. • To maintain existing KFCG programs and services the 0.25% would support “Other Transportation” and “Sustainability” programs and services. 6 Ballot Language Basics  Both options would include ballot language to honor and continue to provide funding for Fire Protection and Emergency services.  Neither option would result in an increase to tax on groceries or prescription drugs.  The current 0.85 tax exempts manufacturing and current ballot language will reflect the same exemption.  Both options would trigger TABOR election notice requirements. 7 Outreach Feedback  Overall support for replacing most if not all revenue.  Some trepidation of losing dedicated funding for particular services but an understanding that greater flexibility in funding could be a benefit.  Support for keeping ballot question as simple as possible.  Overall support for an increase to the base rate (particularly to cover police, streets, and fire.)  City revenue and expense is a challenging conversation for the public to be able to provide specific revenue options.  Majority like level of service with limited suggestions for where to reduce. 8 Direction Sought 1. Which revenue replacement option would Council like to move forward? 2. If Option B: • What should be the length of the term? 9 22 44.1 - Sustainability Services Admin O 501,633 439,133 0 0 62,500 0 0 23 5.3 - Citywide Volunteer Services Program O 186,417 0 0 0 186,417 0 0 25 50.2 - Facilities Operations O 9,639,547 9,526,230 0 0 0 0 113,317 Equipment Fund 26 68.1 - Special Event Coordinator O 132,846 132,846 0 0 0 0 0 28 50.4 - Required Building Modifications O 600,000 0 600,000 0 0 0 0 30 52.2 - Performance & Program Evaluation (P&PE) O 108,123 108,123 0 0 0 0 0 108,123 0 108,123 31 52.5 - FC Lean - City of Fort Collins Continuous Improvement Program O 93,081 93,081 0 0 0 0 0 93,081 0 93,081 1/9/2019 Page 4 of 5 Dispatcher 1.00 E 74,819 0 0 74,819 0 0 KFCG dedicated to Fire Funded Subtotal 12.70 $78,455,458 $67,333,133 $1,730,522 $9,077,547 $71,752 $242,504 $0 $180,438 $20,000 $200,438 TRANSPORTATION 1 1.2 - Transportation Capital Expansion Fee Program O 3,303,437 248,739 0 0 0 3,054,698 TCEF 2 34.1 - Traffic Operations O 3,324,079 0 0 0 344,151 2,979,928 Transportation Fund 3 34.2 - Traffic Operations Equipment O 238,715 0 0 0 238,715 0 5 1.1 - Engineering Core Offer O 2,142,700 383,193 0 0 0 1,759,507 Transportation Fund 6 6.1 - Transportation Planning Services O 485,315 0 0 0 86,438 398,877 Transportation Fund 7 45.1 - Transit Local Fixed Route Network O 17,837,194 7,341,750 148,988 0 2,177,516 8,168,940 Transit Fund 8 45.3 - Dial-A-Ride Service O 2,088,000 860,080 0 0 0 1,227,920 Transportation Fund 250,000 0 250,000 1/9/2019 Page 3 of 5 51 43.6 - ENHANCEMENT: Accelerated Municipal Electric Lawn and Garden Equipment Fund 20,000 0 20,000 0 0 20,000 20,000 Funded Subtotal 0.00 $5,688,061 $1,600,759 $306,500 $0 $614,801 $3,166,001 $454,355 $161,000 $615,355 SAFE COMMUNITY 1/9/2019 Page 2 of 5 Maintenance of New Parks and Trails 2.00 E 172,090 0 0 172,090 0 0 22 58.5 - ENHANCEMENT: 4.5 FTE (Multiple positions) - Gardens on Spring Creek Expanded Programming and Operations 4.50 E 233,985 233,985 0 0 0 0 233,985 0 233,985 23 47.7 - KFCG ENHANCEMENT: 0.25 FTE Increase - Adaptive Recreation Coordinator 0.25 E 14,867 0 0 14,867 0 0 KFCG dedicated to Culture & Recreation 25 26.3 - ENHANCEMENT: Design and Cost Estimates for Irrigation System Replacement at SouthRidge and City Park Nine. E 125,000 0 125,000 0 0 0 Skipped due to needing ongoing 28 57.4 - ENHANCEMENT: Increased Contractual Pruning of Larger Trees E 200,000 0 200,000 0 0 0 Skipped due to needing ongoing TARGET REDUCTION 1/9/2019 Page 1 of 5