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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/20/2018 - SECOND READING OF ORDINANCE NO. 133, 2018, BEING TAgenda Item 20 Item # 20 Page 1 AGENDA ITEM SUMMARY November 20, 2018 City Council STAFF Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer Lawrence Pollack, Budget Director John Duval, Legal SUBJECT Second Reading of Ordinance No. 133, 2018, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2019; Adopting the Budget for the Fiscal Years beginning January 1, 2019, and Ending December 31, 2020; and Fixing the Mill Levy for the Fiscal Year 2019. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on November 6, 2018, sets the City Budget for the two-year period (2019-20) which becomes the City’s financial plan for the next two fiscal years. This Ordinance sets the amount of $635,086,160 to be appropriated for fiscal year 2019. However, this appropriated amount does not include what is being appropriated by separate Council/Board of Director actions to adopt the 2019 budget for the General Improvement District (GID) No. 1 of $167,000, the 2019 budget for GID No. 15 (Skyview) of $1,000, the Urban Renewal Authority (URA) 2019 budget of $5,867,677 and the Downtown Development Authority 2019 budget of $14,506,158. This results in City-related total operating appropriations of $655,627,995 in 2019. This Ordinance also sets the 2019 City mill levy at 9.797 mills, unchanged since 1991. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. BACKGROUND / DISCUSSION For the eighth time the City has used a budgeting process called Budgeting for Outcomes (BFO). This process is a recommended best practice by the Government Finance Officers Association (GFOA). It is a systematic process driven by goals and performance, to provide information that relates budgeting to planning and results. Its purpose is to better align the services delivered by the City with the things that are most important to the community. The 2019-20 City Manager’s Recommended Budget was delivered to Council on August 30. The Recommended Budget strengthened key services related to transportation, police, fire, parks and recreation and other community priorities such as the environment, economic health and social sustainability. It also delivers on the commitment made to voters who approved the Keep Fort Collins Great sales tax increase in 2010. The budget reflects community needs and council priorities as identified in the City’s 2018 Strategic Plan. City Council reviewed the Recommended Budget during four Council work sessions. In addition, citizens have been able to provide input to Councilmembers through two public hearings. From these discussions and additional information provided by staff, City Council provided direction and guidance for changes to be incorporated into First Reading of the 2019-20 Biennial Budget. During First Reading, two friendly Agenda Item 20 Item # 20 Page 2 amendments were also included, and all of those changes from the City Manager’s Recommended Budget are incorporated into the Ordinance as adopted on First Reading. The following table summarizes the changes made when the Ordinance as adopted on First Reading. This includes one of the two friendly amendments to fund Offer 1.17 ENHANCEMENT: Harmony/Power Trail Grade-Separated Crossing and Trail Extension for $400k in 2019, which is highlighted in yellow. Offer 1.17 is funded primarily by Transportation Capital Expansion Fees (TCEF). Outcome Offer Name 2019 2020 2019 2020 C&R 57.4 - Increased Contractual Pruning of Larger Trees $ 200 $ 200 ECON 80.2 - Tourism Master Plan, Visitor and Convention Services 50 - ENV 9.90 - L&P Energy Efficiency without additional L&P rate change 238 238 ENV 9.92 - L&P Non-Residential Solar Rebates without additional L&P rate change 125 125 ENV 43.1 - Add back participation in the Regional Air Quality Council 10 10 ENV 43.6 Accelerated Muni Electric Lawn & Garden Equipment - Net of estimated $20k RAQC grant 20 20 ENV 86.10 Encampment Cleaning Services funding from Natural Areas replaced with General Fund 100 100 HPG 13.6 - Redistricting Study - 79 NLSH 42.1 - Add back funding for the multi-cultural retreat 10 10 NLSH 42.3 - Human Services Program Grant Funding 100 100 150 150 NLSH 42.6 - Increased funding for the Murphy Center beyond current funding level 50 50 NLSH 42.12 Murphy Center 88 88 NLSH 65.5 - Wireless Communications Plan 50 - NLSH 65.8 - 1.0 FTE Contractual - Historic Preservation Building Survey 90 92 NLSH 89.2 - West Nile Virus - Adult Mosquito Treatment Efficacy Study 20 - SAFE 25.19 - Police SROs for Poudre School District (1 FTE per year) - Net of PSD contribution 63 156 SAFE 75.1 - Stairstep funding to PFA per the IGA 500 500 TRANS 1.17 ENHANCEMENT: Harmony/Power Trail Grade-Separated Crossing and Trail Extension 400 Grand Total of Council Interest in Funding $ 1,183 $ 1,277 $ 1,080 $ 641 Offers to be Funded Ongoing One-Time The following table summarizes the Offers reduced or removed from the City Manager’s Recommended Budget to offset the additional desired funding communicated by City Council. The second friendly amendment from 1st Reading to fund Offer 15.3 ENHANCEMENT: Video Production Assistance – FC PAN at $15k per year is highlighted in yellow. That Offer is funded by General Fund reserves. Outcome Funding Sources 2019 2020 2019 2020 N/A General Fund Ongoing Revenue $ 120 $ 120 N/A Keep Fort Collins Great - Other Community Priorities 1-Time/Reserves 210 183 C&R 29.1 Parks, Trails and Facility Grounds Maintenance - Offer reduced 50 50 ECON 8.7 - Distribution Transformer Replacements - Offer reduced 223 (95) ECON 8.16 - New Feeder Capacity - Circuit 576B - Offer unfunded 458 ECON 30.1 Downtown Landscaping and Maintenance - Offer reduced 50 50 ECON 41.1 Economic Health Office - Offer reduced (partial repurpose of the Cluster funding) 30 30 ENV 9.82 - Core Renewable Energy - Offer reduced 140 ENV 92.2 Municipal Energy Efficiency Fund - Offer unfunded 75 75 HPG 5.1 HR Core Services - Offer reduced (advertising/marketing for job postings) 40 40 HPG 5.2 Benefits and Wellness Program - Offer reduced (stop loss insurance reduction) 140 200 HPG 13.2 Elections - Offer reduced 200 200 HPG 15.2 Communications and Public Involvement - Offer reduced (consulting) 40 40 HPG 15.3 ENHANCEMENT: Video Production Assistance - FC PAN - Offer reduced from $30 each year 15 15 HPG 39.3 ENHANCEMENT: State Government Advocacy - Offer unfunded 45 45 HPG 44.1 Sustainability Services Admin - Offer reduced (replicon time keeping system) 8 8 HPG 50.3 ENHANCEMENT: Facility Major Maintenance - Offer reduced 100 100 HPG 52.1 Financial Programs and Services - Offer reduced (training for Financial Analysts) 21 21 NLSH 66.1 Neighborhood Programs and Services - Offer reduced (hourly support) 40 40 NLSH 66.2 Larimer Humane Society Contract (cost reduction finalized after Recommended Budget) 100 50 NLSH 89.3 ENHANCEMENT: 0.25 FTE - Enviro Regulatory Specialist - West Nile Virus - Offer unfunded 33 35 Various 3.5 FTE Position Reductions 256 259 Subtotal of Priority A - Non Personnel $ 1,233 $ 1,296 $ 703 $ 628 Reduction Offsets Ongoing One-Time Agenda Item 20 Item # 20 Page 3 Utility rate increases in the original City Manager’s Recommended Budget are included, as proposed, in First Reading of the 2019-20 Budget as follows: Utility 2019 2020 Electric 5.0% 5.0% Water - - Wastewater - - Stormwater 2.0% 2.0% This annual Appropriation Ordinance sets the amount of $635,086,160 to be appropriated for fiscal year 2019. It does not include the 2019 adopted budgets for the General Improvement District (GID) No. 1 of $167,000, the General Improvement District (GID) No. 15 (Skyview) of $1,000, the Urban Renewal Authority (URA) of $5,867,677 and the Downtown Development Authority of $14,506,158. This results in the City’s total operating appropriations being $655,627,995 in 2019. Below is a summary of the City’s proposed 2019-20 total operating budget: TOTAL BUDGET (in millions) 2019 2020 Operating $602.1 $609.2 Debt $18.1 $14.9 Capital $35.4 $27.4 Total City Appropriations* $655.6 $651.6 Less General Improvement Districts (GID #1 and #15) (0.2) (0.2) Urban Renewal Authorities (URA) (5.9) (6.0) Downtown Development Authority (DDA) (14.5) (14.5) Net City Budget $635.1 $631.0 * This includes GID #1, GID #15, URA and DDA which are appropriated in separate ordinances 2nd Reading The above summary reflects the Ordinance as submitted for Second Reading. During First Reading on November 6, Councilmembers mentioned interest in funding these two additional Offers: 1) Fund Offer 45.14 ENHANCEMENT: West Elizabeth Enhanced Travel Corridor Implementation Plan for $150k in 2019 2) Fund Offer 6.10 ENHANCEMENT: Pedestrian Master Plan and FC Walks Program at $249,233 in 2019 and $100,335 in 2020 Staff has prepared language for amendments if Council motions for either or both Offers to be included in Second Reading. Staff from the City Manager’s Recommended Budget is recommending that if one or both of these offers is funded, the source of funds used be General Fund Reserves. Attachment 2 includes specific amendment language to be used to add one or both of these offers if desired. CITY FINANCIAL IMPACTS This Ordinance sets the annual appropriation for fiscal year 2019 in the amount of $635,086,160. The Ordinance also sets the City mill levy at 9.797 mills, unchanged since 1991. Agenda Item 20 Item # 20 Page 4 BOARD/COMMISSION RECOMMENDATION Various City boards and commissions submitted memos to City Council for its consideration of what they believed should be included in the 2019-20 Budget PUBLIC OUTREACH In preparation for First and Second Reading of the 2019-20 Budget, there were two public hearings. Additionally, during the budget development, there were two citizens on each of the seven BFO Teams; as well as significant public outreach conducted to gather citizen feedback from a broad demographic of the community. That latter effort included nine mobile outreach booths including over 300 feedback forms submitted from residents. There were over 600 visits to the budgeting information and materials provide of fcgov.com, as well as press releases during the process. Additional input was obtained from online tools and over 16,000 social media impressions. ATTACHMENTS 1. First Reading Agenda Item Summary, November 6, 2018 (w/o attachments) (PDF) 2. Requested Second Reading Amendment Information (Offers 45.14 and 6.10) (PDF) 3. PowerPoint Presentation (PDF) Agenda Item 16 Item # 16 Page 1 AGENDA ITEM SUMMARY November 6, 2018 City Council STAFF Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer Lawrence Pollack, Budget Director John Duval, Legal SUBJECT First Reading of Ordinance No. 133, 2018, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2019; Adopting the Budget for the Fiscal Years beginning January 1, 2019, and Ending December 31, 2020; and Fixing the Mill Levy for the Fiscal Year 2019. EXECUTIVE SUMMARY The purpose of this item is to present the Annual Appropriation Ordinance for First Reading. This Ordinance sets the City Budget for the two-year period (2019-20) which becomes the City’s financial plan for the next two fiscal years. This Ordinance sets the amount of $634,271,160 to be appropriated for fiscal year 2019. However, this appropriated amount does not include what is being appropriated by separate Council/Board of Director actions to adopt the 2019 budget for the General Improvement District (GID) No. 1 of $167,000, the 2019 budget for GID No. 15 (Skyview) of $1,000, the Urban Renewal Authority (URA) 2019 budget of $5,867,677 and the Downtown Development Authority 2019 budget of $14,506,158. This results in City-related total operating appropriations of $654,812,995 in 2019. This Ordinance also sets the 2019 City mill levy at 9.797 mills, unchanged since 1991. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION For the eighth time, the City has used a budgeting process called Budgeting for Outcomes (BFO). This process is a recommended best practice by the Government Finance Officers Association (GFOA). It is a systematic process driven by goals and performance, to provide information that relates budgeting to planning and results. Its purpose is to better align the services delivered by the City with the things that are most important to the community. The 2019-20 City Manager’s Recommended Budget was delivered to Council on August 30. The Recommended Budget strengthened key services related to transportation, police, fire, parks and recreation and other community priorities such as the environment, economic health and social sustainability. It also delivers on the commitment made to voters who approved the Keep Fort Collins Great sales tax increase in 2010. The budget reflects community needs and Council priorities as identified in the City’s 2018 Strategic Plan. City Council reviewed the Recommended Budget during four Council work sessions. In addition, citizens have been able to provide input to Councilmembers through two public hearings. From these discussions and additional information provided by staff, City Council has provided direction and guidance for changes to be incorporated into First Reading of the 2019-20 Biennial Budget. The following tables summarize (1) the Offers ATTACHMENT 1 Agenda Item 16 Item # 16 Page 2 not originally included in the Recommended Budget and (2) the Offers reduced or removed from consideration to offset the additional funding communicated by City Council. The Utility rate increases in the original City Manager’s Recommended Budget are included, as proposed, in First Reading of the 2019-20 Budget as follows: Utility 2019 2020 Electric 5.0% 5.0% Water - - Wastewater - - Stormwater 2.0% 2.0% This annual Appropriation Ordinance sets the amount of $634,271,160 to be appropriated for fiscal year 2019. Outcome Offer Name 2019 2020 2019 2020 C&R 57.4 - Increased Contractual Pruning of Larger Trees $ 200 $ 200 ECON 80.2 - Tourism Master Plan, Visitor and Convention Services 50 - ENV 9.90 - L&P Energy Efficiency without additional L&P rate change 238 238 ENV 9.92 - L&P Non-Residential Solar Rebates without additional L&P rate change 125 125 ENV 43.1 - Add back participation in the Regional Air Quality Council 10 10 ENV 43.6 Accelerated Muni Electric Lawn & Garden Equipment - Net of estimated $20k RAQC grant 20 20 ENV 86.10 Encampment Cleaning Services funding from Natural Areas replaced with General Fund 100 100 HPG 13.6 - Redistricting Study - 79 NLSH 42.1 - Add back funding for the multi-cultural retreat 10 10 NLSH 42.3 - Human Services Program Grant Funding 100 100 150 150 NLSH 42.6 - Increased funding for the Murphy Center beyond current funding level 50 50 NLSH 42.12 Murphy Center 88 88 NLSH 65.5 - Wireless Communications Plan 50 - NLSH 65.8 - 1.0 FTE Contractual - Historic Preservation Building Survey 90 92 NLSH 89.2 - West Nile Virus - Adult Mosquito Treatment Efficacy Study 20 - SAFE 25.19 - Police SROs for Poudre School District (1 FTE per year) - Net of PSD contribution 63 156 SAFE 75.1 - Stairstep funding to PFA per the IGA 500 500 Grand Total of Council Interest in Funding $ 1,183 $ 1,277 $ 680 $ 641 Offers to be Funded Ongoing One-Time Outcome Funding Sources 2019 2020 2019 2020 N/A General Fund Ongoing Revenue $ 120 $ 120 N/A Keep Fort Collins Great - Other Community Priorities 1-Time/Reserves 210 183 C&R 29.1 Parks, Trails and Facility Grounds Maintenance - Offer reduced 50 50 ECON 8.7 - Distribution Transformer Replacements - Offer reduced 223 (95) ECON 8.16 - New Feeder Capacity - Circuit 576B - Offer unfunded 458 ECON 30.1 Downtown Landscaping and Maintenance - Offer reduced 50 50 ECON 41.1 Economic Health Office - Offer reduced (partial repurpose of the Cluster funding) 30 30 ENV 9.82 - Core Renewable Energy - Offer reduced 140 ENV 92.2 Municipal Energy Efficiency Fund - Offer unfunded 75 75 HPG 5.1 HR Core Services - Offer reduced (advertising/marketing for job postings) 40 40 HPG 5.2 Benefits and Wellness Program - Offer reduced (stop loss insurance reduction) 140 200 HPG 13.2 Elections - Offer reduced 200 200 HPG 15.2 Communications and Public Involvement - Offer reduced (consulting) 40 40 HPG 15.3 ENHANCEMENT: Video Production Assistance - FC PAN - Offer unfunded 30 30 HPG 39.3 ENHANCEMENT: State Government Advocacy - Offer unfunded 45 45 HPG 44.1 Sustainability Services Admin - Offer reduced (replicon time keeping system) 8 8 HPG 50.3 ENHANCEMENT: Facility Major Maintenance - Offer reduced 100 100 HPG 52.1 Financial Programs and Services - Offer reduced (training for Financial Analysts) 21 21 NLSH 66.1 Neighborhood Programs and Services - Offer reduced (hourly support) 40 40 NLSH 66.2 Larimer Humane Society Contract (cost reduction finalized after Recommended Budget) 100 50 NLSH 89.3 ENHANCEMENT: 0.25 FTE - Enviro Regulatory Specialist - West Nile Virus - Offer unfunded 33 35 Various 3.5 FTE Position Reductions 256 259 Subtotal of Priority A - Non Personnel $ 1,233 $ 1,296 $ 718 $ 643 Reduction Offsets Ongoing One-Time Agenda Item 16 Item # 16 Page 3 It does not include the 2019 adopted budgets for the General Improvement District (GID) No. 1 of $167,000, the GID No. 15 (Skyview) of $1,000, the Urban Renewal Authority (URA) of $5,867,677 and the Downtown Development Authority of $14,506,158. This results in City-related total operating appropriations being $654,812,995 in 2019. Below is a summary of the City’s proposed 2019-20 total operating budget: CITY FINANCIAL IMPACTS This Ordinance sets the annual appropriation for fiscal year 2019 in the amount of $634,271,160. The Ordinance also sets the City mill levy at 9.797 mills, unchanged since 1991. BOARD / COMMISSION RECOMMENDATION Various City boards and commissions submitted memos to City Council for its consideration of what they believed should be included in the 2019-20 Budget PUBLIC OUTREACH In preparation for First Reading of the 2019-20 Budget, there were two public hearings. Additionally, during the budget development, there were two citizens on each of the seven BFO Teams, as well as significant public outreach conducted to gather citizen feedback from a broad demographic of the community. That latter effort included nine mobile outreach booths including over 300 feedback forms submitted from residents. There were over 600 visits to the budgeting information and materials provide of fcgov.com, as well as press releases during the process. Additional input was obtained from online tools and over 16,000 social media impressions. ATTACHMENTS 1. PowerPoint Presentation (PDF) TOTAL BUDGET (in millions) 2019 2020 Operating $601.7 $609.2 Debt $18.1 $14.9 Capital $35.0 $27.4 Total City Appropriations* $654.8 $651.6 Less General Improvement Districts (GID #1 and #15) (0.2) (0.2) Urban Renewal Authorities (URA) (5.9) (6.0) Downtown Development Authority (DDA) (14.5) (14.5) Net City Budget $634.3 $631.0 * This includes GID #1, GID #15, URA and DDA which are appropriated in separate ordinances 1st Reading ORDINANCE NO. 133, 2018 REQUESTED SECOND READING AMENDMENT INFORMATION (Offers 45.14 and 6.10) Scenario 1: Fund Offer 45.14 ENHANCEMENT: West Elizabeth Enhanced Travel Corridor Implementation Plan ($150,000): Move to amend the Ordinance to fund Offer 45.14, the enhancement offer funding the Implementation Plan for the West Elizabeth Enhanced Travel Corridor, to appropriate additional 2019 funds in the amount of $150,000 from General Fund reserves, and to make corresponding changes to the Ordinance. Scenario 2: Fund Offer 6.10 ENHANCEMENT: Pedestrian Master Plan and FC Walks Program ($249,233): Move to amend the Ordinance to fund Offer 6.10, the enhancement offer funding the Pedestrian Master Plan and FC Walks Program, to appropriate additional 2019 funds in the amount of $249,233 from General Fund reserves, and to make corresponding changes to the Ordinance. Scenario 3: Fund both Offer 45.14 and Offer 6.10 ($399,233): Move to amend the Ordinance to fund Offer 45.14 and Offer 6.10, the enhancement offers funding the Implementation Plan for the West Elizabeth Enhanced Travel Corridor and the Pedestrian Master Plan and FC Walks Program, to appropriate additional 2019 funds in the amount of 399,233 from General Fund reserves, and to make corresponding changes to the Ordinance. ATTACHMENT 2 Second Reading of the 2019-20 Budget 1 November 20, 2018 ATTACHMENT 3 Outcome Offer Name 2019 2020 2019 2020 C&R 57.4 - Increased Contractual Pruning of Larger Trees $ 200 $ 200 ECON 80.2 - Tourism Master Plan, Visitor and Convention Services 50 - ENV 9.90 - L&P Energy Efficiency without additional L&P rate change 238 238 ENV 9.92 - L&P Non-Residential Solar Rebates without additional L&P rate change 125 125 ENV 43.1 - Add back participation in the Regional Air Quality Council 10 10 ENV 43.6 Accelerated Muni Electric Lawn & Garden Equipment - Net of estimated $20k RAQC grant 20 20 ENV 86.10 Encampment Cleaning Services funding from Natural Areas replaced with General Fund 100 100 HPG 13.6 - Redistricting Study - 79 NLSH 42.1 - Add back funding for the multi-cultural retreat 10 10 NLSH 42.3 - Human Services Program Grant Funding 100 100 150 150 NLSH 42.6 - Increased funding for the Murphy Center beyond current funding level 50 50 NLSH 42.12 Murphy Center 88 88 NLSH 65.5 - Wireless Communications Plan 50 - NLSH 65.8 - 1.0 FTE Contractual - Historic Preservation Building Survey 90 92 NLSH 89.2 - West Nile Virus - Adult Mosquito Treatment Efficacy Study 20 - SAFE 25.19 - Police SROs for Poudre School District (1 FTE per year) - Net of PSD contribution 63 156 SAFE 75.1 - Stairstep funding to PFA per the IGA 500 500 Grand Total of Council Interest in Funding $ 1,183 $ 1,277 $ 680 $ 641 Offers to be Funded Ongoing One-Time Additional Offers Included in First Reading based on Council Guidance 2 $ in thousands Friendly Amendments Included in First Reading 3 • Fund Offer 1.17 ENHANCEMENT: Harmony/Power Trail Grade-Separated Crossing and Trail Extension for $400k in 2019  This Offer was funded primarily with Transportation Capital Expansion Fees (TCEF) reserves • Fund Offer 15.3 ENHANCEMENT: Video Production Assistance – FC PAN at $15k per year  This Offer was funded by General Fund reserves Budget Overview for Second Reading - as submitted 4 Amended 2018 * 2019 % Change 2020 % Change Operating $605.6 $602.1 -0.6% $609.2 1.2% Debt 21.9 18.1 -17.3% 14.9 -17.5% Capital 170.3 35.4 -79.2% 27.4 -22.5% Total City Appropriations** $797.9 $655.6 -17.8% $651.6 -0.6% Less Internal Service Funds ($79.2) ($81.0) 2.3% ($85.6) 5.6% Transfers to Other Funds (66.0) (58.3) -11.6% (51.5) -11.7% GIDs (0.5) (0.2) -67.0% (0.2) 0.0% URAs (4.5) (5.9) 29.5% (6.0) 1.5% DDA (12.5) (14.5) 16.0% (14.5) 0.0% Total ($162.7) ($159.9) -1.7% ($157.7) -1.4% Net City Budget $635.2 $495.7 -21.9% $493.9 -0.4% * 2018 includes $112M in capital budget for Broadband ** This includes the GID #1, GID #15, URA and DDA all of which are appropriated in separate ordinances TOTAL BUDGET (in millions) 5 • 1) Fund Offer 45.14 ENHANCEMENT: West Elizabeth Enhanced Travel Corridor Implementation Plan for $150k in 2019 • 2) Fund Offer 6.10 ENHANCEMENT: Pedestrian Master Plan and FC Walks Program at $249,233 in 2019 and $100,335 in 2020 • If Council decides to fund either or both of these Offers, staff recommends funding come out of the $2.2M of General Fund Reserves currently assigned for 2019-20 Revenue Contingency Potential Known Amendments for Second Reading 6 Amended 2018 * 2019 % Change 2020 % Change Operating $605.6 $602.5 -0.5% $609.3 1.1% Debt 21.9 18.1 -17.3% 14.9 -17.5% Capital 170.3 35.4 -79.2% 27.4 -22.5% Total City Appropriations** $797.9 $656.0 -17.8% $651.7 -0.7% Less Internal Service Funds ($79.2) ($81.0) 2.3% ($85.6) 5.6% Transfers to Other Funds (66.0) (58.3) -11.6% (51.5) -11.7% GIDs (0.5) (0.2) -67.0% (0.2) 0.0% URAs (4.5) (5.9) 29.5% (6.0) 1.5% DDA (12.5) (14.5) 16.0% (14.5) 0.0% Total ($162.7) ($159.9) -1.7% ($157.7) -1.4% Net City Budget $635.2 $496.1 -21.9% $494.0 -0.4% * 2018 includes $112M in capital budget for Broadband ** This includes the GIDs, URA and DDA which are appropriated in separate ordinances TOTAL BUDGET (in millions) Budget Overview for Second Reading - with both potential amendments funded by reserves 2019-20 Biennial Budget Balanced and Fiscally Prudent Budget that Addresses Multiple Community and Council Priorities • Maintains investments in and strengthens critical services related to transportation, transit, police, fire, parks & recreation • Enhances community sustainability priorities in the areas of economic, environmental and social health • Maintains key city infrastructure and invests in prudent capital replacement • Continues the commitment made to voters who approved the Keep Fort Collins Great sales tax increase in 2010 -1- ORDINANCE NO. 133, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2019; ADOPTING THE BUDGET FOR THE FISCAL YEARS BEGINNING JANUARY 1, 2019, AND ENDING DECEMBER 31, 2020; AND FIXING THE MILL LEVY FOR FISCAL YEAR 2019 WHEREAS, the City Manager has, prior to the first Monday in September 2018, submitted to the City Council a proposed budget for the next ensuing budget term, along with an explanatory message, complete financial plan for each fund of the City, and the City Manager’s recommendations for the ensuing budget term pursuant to the provisions of Article V, Section 2 of the City Charter; and WHEREAS, within ten days after the filing of said budget estimate, the City Council set September 18 and October 2, 2018, as the dates for the public hearings thereon and caused notice of such public hearings to be given by publication pursuant to Article V, Section 3 of the City Charter; and WHEREAS, the public hearings were held on those dates and persons were given the opportunity to appear and comment on any or all items and estimates in the proposed budget; and WHEREAS, Article V, Section 4 of the City Charter requires that, before the last day of November of each fiscal year, the City Council shall adopt the budget for the ensuing term by ordinance and appropriate, on a fund basis and by individual project for capital projects and federal and state grants, such sums of money as the Council deems necessary to defray all expenditures of the City during the ensuing fiscal year, based upon the budget approved by the City Council; and WHEREAS, Article V, Section 5 of the City Charter provides that the annual appropriation ordinance shall also fix the tax levy in mills upon each dollar of the assessed valuation of all taxable property within the City, such levy representing the amount of taxes for City purposes necessary to provide for payment during the ensuing fiscal year for all properly authorized expenditures to be incurred by the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. Budget a. That the City Council has reviewed the City Manager's 2019-2020 Recommended Budget, a copy of which is on file with the office of the City Clerk, and has approved -2- certain amendments thereto described on Exhibit “A”. b. That the City Manager’s 2019-2020 Recommended Budget, as amended by the Council as described on Exhibit “A” attached hereto and incorporated herein by reference, is hereby adopted in accordance with the provisions of Article V, Section 4 of the City Charter and incorporated herein by reference; provided, however, that the comparative figures contained in the adopted budget may be subsequently revised by City Council as deemed necessary by the City Manager to reflect actual revenues and expenditures for the fiscal year 2020. c. That the adopted budget, as described on Exhibit “A”, shall be maintained in the office of the City Clerk and identified as "The Budget for the City of Fort Collins for the Fiscal Years Ending December 31, 2019, and December 31, 2020, as Adopted by the City Council on November 20, 2018." Section 3. Appropriations. That there is hereby appropriated out of the reserves and anticipated revenues of the City of Fort Collins, for the fiscal year beginning January 1, 2019, and ending December 31, 2019, the sum of SIX HUNDRED THIRTY-FIVE MILLION EIGHTY-SIX THOUSAND ONE HUNDRED SIXTY DOLLARS ($635,086,160) to be raised by taxation and otherwise, which sum is deemed by the City Council to be necessary to defray all expenditures of the City during said budget year, to be divided and appropriated for the following purposes, to wit: GENERAL FUND $152,740,315 ENTERPRISE FUNDS Golf Operating Total $3,645,142 Capital Projects: SouthRidge Irrigation System 125,000 Capital Projects Total $125,000 Total Golf $3,770,142 Light & Power Operating Total $137,034,189 Capital Projects: Art in Public Places 14,800 CMMS-Maintenance Management 435,000 Dist. System Impr. & Replace. 1,418,360 L&P Vehicle Storage Bldg 160,000 New Capacity-Circuits 1,480,000 Substation Cap Prj - Parent 649,000 Capital Projects Total $4,157,160 Total Light & Power $141,191,349 Storm Drainage Operating Total $12,156,126 -3- Capital Projects: Art in Public Places 7,611 2017-Castlerock SW Remediation 300,000 2017-Remington St Storm Sewer 412,000 CMMS-Maintenance Management 11,000 Developer Repays 300,000 Master Planning 450,000 Oxbow Levee Improvements 412,000 Spring Creek Rehab @ Edora 801,000 Stormwater Basin Improvements 1,400,000 Stormwater Drake Levee 51,500 Stormwater Flood Warn System 100,000 Stormwater N College Drainage 267,800 Stormwater Timberline Levee 103,000 Utility Service Center Phase 2 40,000 Capital Projects Total $4,655,911 Total Storm Drainage $16,812,037 Wastewater Operating Total $18,201,482 Capital Projects: Art in Public Places 32,936 2015-Bio Gas to CoGen 800,000 2018-City Park WWM Replace 225,000 CMMS-Maintenance Management 253,500 Collec System Replcmt 793,000 Collect Small Projects 1,400,000 Cured In Place Pipe 600,000 Polu Control Cap Repla 550,000 Serv Center Improvemnts 40,000 Water Recl Replcmt Prgm 2,700,000 Stormwater/Wastewtr Improvemnt 345,050 Capital Projects Total $7,739,486 Total Wastewater $25,940,968 Water Operating Total $25,694,606 Capital Projects: Art in Public Places 17,500 CMMS-Maintenance Management 653,250 Enviro Learning Center Dam 500,000 Distro Small Projects 1,400,000 Service Cntr Improvm't 80,000 Water Prod Replcmt Prgm 1,575,000 Water Qual Cap Replace 550,000 Watershed Protection 80,000 Capital Projects Total $4,855,750 Total Water $30,550,356 Broadband Operating Total $3,695,000 -4- Capital Projects: BB Capital Interest 5,827,788 Capital Projects Total $5,827,788 Total Broadband $9,522,788 TOTAL ENTERPRISE FUNDS $227,787,640 INTERNAL SERVICE FUNDS Benefits $34,944,129 Data & Communications $10,854,216 Equipment $14,449,711 Self Insurance $4,673,854 Utility Customer Service & Administration $18,929,752 TOTAL INTERNAL SERVICE FUNDS $83,851,662 SPECIAL REVENUE & DEBT SERVICE FUNDS Capital Improvement Expansion $2,565,000 Capital Leasing Corporation $6,514,684 Cemeteries $700,944 Cultural Services & Facilities Operating Total $4,298,298 Capital Projects - Art in Public Places $127,390 Total Cultural Services & Facilities $4,425,688 General Employees' Retirement $5,829,250 Keeping Fort Collins Great Operating Total $28,135,724 Capital Projects: City Bridge Program 1,700,000 Transportation Small Capital 125,000 Capital Projects Total $1,825,000 Total Keeping Fort Collins Great $29,960,724 Museum $1,111,836 Natural Areas $13,048,392 Parking $3,042,753 Perpetual Care $34,534 Recreation $7,564,864 Sales & Use Tax $8,308,543 Transit Services Operating Total $18,421,829 Capital Projects: 2019 CMAQ Bus Purchase 2,387,000 5307 PASS-THRU 1,271,040 Capital Projects Total $3,658,040 Total Transit Services $22,079,869 -5- Transportation CEF Fund $9,092,987 Transportation Services $27,037,991 SPECIAL REVENUE & DEBT SERVICE FUNDS $140,918,059 CAPITAL PROJECTS FUND Capital Projects Fund Operating - Administrative Charge $101,403 General City Capital Projects: Arterial Intersection Imprvmnt $400,000 Bicycle Infrastructure Im 350,000 Bike/Ped Grade Sep Cross 2,000,000 Bus Stop Improvements 100,000 Nature in the City 186,097 Pedestrian Sidewalk - ADA 1,100,000 Willow Street Imprvmts 2,667,000 City Bridge Program 600,000 College & Trilby Intersections 600,000 East Community Park 550,000 Linden St Renovat-Design/Const 563,000 N Mason St 500,000 Northeast Community Park 1,550,000 Poudre River Plan Reach 4 100,000 Prospect Rd/Sharp Pt/I-25 2,000,000 Railroad Crossing Replacment 300,000 S Timberline/Stetson/Trilby Harmony/Power Trail Grade Sep 2,300,000 400,000 Capital Projects Total $16,266,097 Total General City Capital Projects $16,367,500 Community Capital Improvement Afford Housing Capital Program $400,000 Arterial Intersection Imprvmnt 400,000 Bicycle Infrastructure Imprvmt 350,000 Bike/Ped Grade Separated Cross 2,000,000 Bus Stop Improvements 100,000 Gardens Visitor Ctr Expansion 40,000 Lincoln Avenue Bridge 36,000 Linden St Renovation 563,000 Nature in the City 200,000 Pedestrian Sidewalk - ADA 1,100,000 Poudre River Proj (CCIP only) 50,000 Willow Street Improvements 2,667,000 Capital Projects Total $7,906,000 -6- (CCIP 1/4 Cent) Conservation Trust Operating Total - Administration & Parks Maint $544,116 Capital Projects: Trail Acquisition/Development 1,023,453 Capital Projects Total 1,023,453 Total Conservation Trust $1,567,569 Neighborhood Parkland Fund Operating Total - Administration $397,415 Capital Projects: New Park Site Development 2,350,000 Side Hill Neighborhood Park 200,000 Trailhead Park 600,000 Capital Projects Total $3,150,000 Total Neighborhood Parkland $3,547,415 TOTAL CAPITAL PROJECTS FUNDS $29,388,484 TOTAL CITY FUNDS $635,086,160 Section 4. Mill Levy a. That the 2019 mill levy rate for the taxation upon each dollar of the assessed valuation of all the taxable property within the City of Fort Collins as of December 31, 2018, shall be 9.797 mills, which levy represents the amount of taxes for City purposes necessary to provide for payment during the aforementioned budget year of all properly authorized expenditures to be incurred by the City. b. That the City Clerk shall certify this levy of 9.797 mills to the County Assessor and the Board of Commissioners of Larimer County, Colorado, in accordance with the applicable provisions of law, as required by Article V, Section 5 of the Charter of the City of Fort Collins. Introduced, considered favorably on first reading, and ordered published this 6th day of November, A.D. 2018, and to be presented for final passage on the 20th day of November, A.D. 2018. _________________________________ Mayor ATTEST: _____________________________ City Clerk -7- Passed and adopted on final reading on the 20th day of November, A.D. 2018. _________________________________ Mayor ATTEST: _____________________________ City Clerk EXHIBIT A CHARTS SUMMARIZING CITY COUNCIL AMENDMENTS TO THE CITY MANAGER’S RECOMMENDED 2019-2020 BUDGET Outcome Offer Name 2019 2020 2019 2020 C&R 57.4 - Increased Contractual Pruning of Larger Trees $ 200 $ 200 ECON 80.2 - Tourism Master Plan, Visitor and Convention Services 50 - ENV 9.90 - L&P Energy Efficiency without additional L&P rate change 238 238 ENV 9.92 - L&P Non-Residential Solar Rebates without additional L&P rate change 125 125 ENV 43.1 - Add back participation in the Regional Air Quality Council 10 10 ENV 43.6 Accelerated Muni Electric Lawn & Garden Equipment - Net of estimated $20k RAQC grant 20 20 ENV 86.10 Encampment Cleaning Services funding from Natural Areas replaced with General Fund 100 100 HPG 13.6 - Redistricting Study - 79 NLSH 42.1 - Add back funding for the multi-cultural retreat 10 10 NLSH 42.3 - Human Services Program Grant Funding 100 100 150 150 NLSH 42.6 - Increased funding for the Murphy Center beyond current funding level 50 50 NLSH 42.12 Murphy Center 88 88 NLSH 65.5 - Wireless Communications Plan 50 - NLSH 65.8 - 1.0 FTE Contractual - Historic Preservation Building Survey 90 92 NLSH 89.2 - West Nile Virus - Adult Mosquito Treatment Efficacy Study 20 - SAFE 25.19 - Police SROs for Poudre School District (1 FTE per year) - Net of PSD contribution 63 156 SAFE 75.1 - Stairstep funding to PFA per the IGA 500 500 TRANS 1.17 ENHANCEMENT: Harmony/Power Trail Grade-Separated Crossing and Trail Extension 400 Grand Total of Council Interest in Funding $ 1,183 $ 1,277 $ 1,080 $ 641 Offers to be Funded Ongoing One-Time Outcome Funding Sources 2019 2020 2019 2020 N/A General Fund Ongoing Revenue $ 120 $ 120 N/A Keep Fort Collins Great - Other Community Priorities 1-Time/Reserves 210 183 C&R 29.1 Parks, Trails and Facility Grounds Maintenance - Offer reduced 50 50 ECON 8.7 - Distribution Transformer Replacements - Offer reduced 223 (95) ECON 8.16 - New Feeder Capacity - Circuit 576B - Offer unfunded 458 ECON 30.1 Downtown Landscaping and Maintenance - Offer reduced 50 50 ECON 41.1 Economic Health Office - Offer reduced (partial repurpose of the Cluster funding) 30 30 ENV 9.82 - Core Renewable Energy - Offer reduced 140 ENV 92.2 Municipal Energy Efficiency Fund - Offer unfunded 75 75 HPG 5.1 HR Core Services - Offer reduced (advertising/marketing for job postings) 40 40 HPG 5.2 Benefits and Wellness Program - Offer reduced (stop loss insurance reduction) 140 200 HPG 13.2 Elections - Offer reduced 200 200 HPG 15.2 Communications and Public Involvement - Offer reduced (consulting) 40 40 HPG 15.3 ENHANCEMENT: Video Production Assistance - FC PAN - Offer reduced from $30 each year 15 15 HPG 39.3 ENHANCEMENT: State Government Advocacy - Offer unfunded 45 45 HPG 44.1 Sustainability Services Admin - Offer reduced (replicon time keeping system) 8 8 HPG 50.3 ENHANCEMENT: Facility Major Maintenance - Offer reduced 100 100 HPG 52.1 Financial Programs and Services - Offer reduced (training for Financial Analysts) 21 21 NLSH 66.1 Neighborhood Programs and Services - Offer reduced (hourly support) 40 40 NLSH 66.2 Larimer Humane Society Contract (cost reduction finalized after Recommended Budget) 100 50 NLSH 89.3 ENHANCEMENT: 0.25 FTE - Enviro Regulatory Specialist - West Nile Virus - Offer unfunded 33 35 Various 3.5 FTE Position Reductions 256 259 Subtotal of Priority A - Non Personnel $ 1,233 $ 1,296 $ 703 $ 628 Reduction Offsets Ongoing One-Time