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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/10/2019 - 2020 BUDGET REVISION OFFERSDATE: STAFF: September 10, 2019 Lawrence Pollack, Budget Director Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION 2020 Budget Revision Offers. EXECUTIVE SUMMARY The purpose of this item is to familiarize and seek feedback from City Council on the City Manager’s recommended revisions to the 2020 Budget. Based on direction from Council, the 2020 Budget Revisions will be combined with the previously adopted 2019-20 Biennial Budget. The 2020 Annual Budget Appropriation Ordinance is scheduled for First Reading on October 15, 2019 and Second Reading on November 5, 2019. 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 2020 Budget? BACKGROUND / DISCUSSION Overview The mid-cycle Revision Process is different from the biennial Budgeting for Outcomes (BFO) process in that: 1. There is no broad request for new and innovative Offers. This is because we are operating within the approved 2019-20 Biennial Budget and these revisions should be exceptions based on information not known at the time the budget was adopted in 2018 2. Likewise, there is no review by BFO Teams or request for public engagement. 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. The 2020 Budget Revisions include: 1. reductions to 2020 ongoing expenses to align them with a decreased 2020 Sales Tax forecast 2. additional Offers for Council’s consideration based on information that was not available at the time the 2019- 20 Budget was adopted 3. a few administrative adjustments which are explained below. The following are key objectives which the 2020 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 2019-20 Budget The recommended 2020 Budget Revisions meet these goals. Recommended Revision Offers to the 2020 Budget must also meet one of the following criteria: September 10, 2019 Page 2 • The request is specifically directed by the City Manager or City Council • The request is related to a previously approved Offer where either revenue shortfalls or unforeseen expenses are significantly impacting the delivery of that program or service On a related note, at the July 23, 2019 City Council work session on the Climate Action Plan (CAP) update, some Councilmembers expressed interest in considering 2020 Mid-cycle Revision Offers to support progress on the CAP goals. At the work session, staff noted they are continuing to work on the 2018 community greenhouse gas inventory and forecast to 2020, in light of improved new vehicle composition data staff received in July. After Labor Day, staff will be able to provide City Council with an update on the 2018 community carbon inventory and a forecast for the 2020 goal. The 2020 Mid-cycle Revision Offers developed by staff and brought forward by the Budget Lead Team do not address specific CAP requests, in light of the limited scope of the mid-cycle revision process and cautious approach regarding future revenue projections. However, once the future greenhouse gas projections are clear, Council may request supplemental appropriations at any time during the rest of 2019 and throughout 2020 necessary to help achieve the City’s 2020 Climate Action Plan goals. Revenue Overall, most significant City revenues are coming in at, or above, the 2019 budget except for sales tax. Although total revenue for 2019 is on track to support 2019 expenses, the 2019 sales tax base, upon which 2020 growth is calculated, is now expected to be lower than budget. Based on 2019 YTD sales tax growth of 1.8% and continued talk of a possible recession, the growth of 2020 sales tax is now conservatively being estimated at 1.5%, compared to 3.0% in the 2020 Budget. Thus, it is necessary for the City to reduce ongoing expenses in 2020 to align with the reduced forecast for 2020 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 (Street Maintenance, Natural Areas and Community Capital Improvement Program (CCIP)). The total reduction of anticipated revenue from sales tax in 2020 is about $1.8M, with the General Fund portion being just under $1.1M. Ongoing expense reductions There are a few different opportunities to align ongoing expenses to the reduced revenue projections. First, there was interest rate favorability associated with the debt offering for the Police Regional Training Facility and the I- 25/Prospect Interchange projects in the amount of $350k in the General Fund. Second, there is ongoing fuel and maintenance savings within Transfort which will reduce the contribution from the General Fund. Third, significant underspend and rising reserve balances in the Benefits Fund allows for the ongoing expense reduction to departments based on reduced contributions to the Benefits Fund. This third opportunity equates to just over $1.2M savings in the General Fund. Additionally, some funds had residual, unused ongoing revenue in 2020 that can be applied to offset expenses. Lastly, 2018 fund balances are available in some funds to offset one-time expenses. These changes to revenue and available reserves are summarized in the table below. The Subtotal of Funding Changes line indicates that all sales tax shortfalls are covered and indicates the amount of funding available by fund for the 2020 Revision Requests. September 10, 2019 Page 3 Summary of 2020 Revenue Changes and Available Reserves (values in $k) Description General Fund - Ongoing General Fund - 1-Time Capital Expan- sion KFCG CCIP Natural Areas Trans- porta- tion Storm- water Self Insur- ance Broad- band TOTAL Summary of Revenue Changes & Reserves - Reduced 2020 Sales Tax (ongoing) ($1,052) ($397) ($117) ($117) ($117) ($1,800) - Debt service favorability (ongoing) 350 350 - Fuel Savings (ongoing) 206 206 - Benefits Fund (ongoing) 1,244 1,244 - Unused 2020 Ongoing Revenue 398 15 165 197 775 - New revenue from the Broadband PILOT 195 195 - Available Reserves (1-Time, if requested) 2,700 11,100 2,400 2,700 1,900 8,300 29,100 - Less: 2019 Reappropriation (1-Time) (340) (28) (584) (952) - Less: 2019 Supplemental Approps (1-Time) (62) (20) (82) Subtotal of Funding Changes 943 2,298 11,100 1,975 2,583 281 1,194 8,300 165 197 29,036 The reserves and revenue above are available to fund the recommended additions to the 2020 Budget. The table below summarizes those proposed additions and Attachment 1 contains the details of those recommended Offers. Summary of 2020 Recommended Additions Fund Revision Requested FTE Ongoing $ One-Time $ Total General Fund Developing Equity Gaps Analysis, Indicators, and Principles - - 120,000 120,000 East Mulberry Corridor Plan Update and Annexation Assessment - - 175,000 175,000 Park Improvement Project Support - - 50,000 50,000 Train Horn Noise - Federal Lobbying - - 42,000 42,000 Continued Voluntary Compliance Support for Outdoor Residential Wood Burning - 0.25 FTE 0.25 18,638 - 18,638 Chief Privacy Officer with Records Management Responsibility (start date of 1 Mar 2020) 1.00 93,750 17,962 111,712 Ongoing Agreements from 2018 Collective Bargaining - 585,000 - 585,000 Sales Tax Technician - 1 FTE 1.00 50,585 - 50,585 Affordable Housing Impact Fee Study - - 75,000 75,000 Income Qualified Connexion Credits - 195,000 - 195,000 Total General Fund 2.25 942,973 479,962 1,422,935 Capital Expansion New Block 32 Parking Structure Design - - 1,500,000 1,500,000 Fund (Gen. Gov't) Block 32 & 42 Plan Refresh - - 300,000 300,000 Total Capital Expansion Fund - $0 $1,800,000 $1,800,000 Self Ins. Fund Security Specialist - 1.0 FTE (est. start date of 1 March 2020) 1.00 113,400 - 113,400 Total Self Insurance Fund 1.00 $113,400 $0 $113,400 Stormwater Fund Northeast College Corridor Outfall A4 (Lemay) Stormwater Lateral Design and Construction - - 959,500 959,500 Total Stormwater Fund - $0 $959,500 $959,500 Broadband Fund Income Qualified Connexion Credits - PILOT to the General Fund - 195,000 - 195,000 Total Broadband Fund - $195,000 $0 $195,000 September 10, 2019 Page 4 Summary of Available Reserves and Revenue after Recommended Additions (Values in $k) Description General Fund - Ongoing General Fund - 1-Time Capital Expan- sion KFCG CCIP Natural Areas Trans- porta- tion Storm- water Self Insur- ance Broad- band TOTAL Available Revenue and Reserves 943 2,298 11,100 1,975 2,583 281 1,194 8,300 165 197 29,036 2020 Budget Revision Requests Ongoing Requests (943) (113) (1,056) One-Time Requests (480) (1,800) (960) (195) (3,435) Total of 2020 Revisions (943) (480) (1,800) 0 0 0 0 (960) (113) (195) (4,491) Net Impact (positive = available) $0 $1,818 $9,300 $1,975 $2,583 $281 $1,194 $7,340 $52 $2 The last area of changes for the 2020 Budget are administrative in nature as follows: • Transfer of Community Capital Improvement Program (CCIP) funding of $500k dedicated to bus purchases from the Capital Projects Fund to the Transit Fund. There is no net increase in spending with this transfer that allows buses to all be purchased out of the Transit Fund • Transfer of the Office of Emergency Management (OEM) grant budget from a lapsing to a non-lapsing business unit which is consistent with grant related finances The 2020 Budget Revisions allow the City to align ongoing expenses with reduced revenue forecasts from sales tax. Conversely, the City is also able to fund a small number of additions to the 2020 Budget, which address Council priorities and other capital projects and design work that benefit our community. ATTACHMENTS 1. 2020 Revision Offers (PDF) 2. Powerpoint Presentation (PDF) 2020 Revision Offers September 10, 2019 ATTACHMENT 1 2020 Budget Revision Requests - BY FUNDING SOURCE Page # Fund of PDF Outcome Service Area Revision Requested FTE Ongoing $ One-Time $ Total General Fund 1 NLSH Sustainability Services Developing Equity Gaps Analysis, Indicators, and Principles - - 120,000 120,000 2 NLSH Planning, Dev & Trans East Mulberry Corridor Plan Update and Annexation Assessment - - 175,000 175,000 3 C&R Community Services Park Improvement Project Support - - 50,000 50,000 4 ECON Executive Services Train Horn Noise - Federal Lobbying - - 42,000 42,000 5 ENV Sustainability Services Continued Voluntary Compliance Support for Outdoor Residential Wood Burning - 0.25 FTE 0.25 18,638 - 18,638 7 SAFE Info and Emp Services Chief Privacy Officer with Records Management Responsibility (start date of 1 Mar 2020) 1.00 93,750 17,962 111,712 11 SAFE Police Services Ongoing Agreements from 2018 Collective Bargaining - 585,000 - 585,000 12 HPG Financial Services Sales Tax Technician - 1 FTE 1.00 50,585 - 50,585 18 NLSH Sustainability Services Affordable Housing Impact Fee Study - - 75,000 75,000 19 ECON Utility Services Income Qualified Connexion Credits - 195,000 - 195,000 Total General Fund 2.25 942,973 479,962 1,422,935 Capital Expansion 20 TRAN Info and Emp Services New Block 32 Parking Structure Design - - 1,500,000 1,500,000 Fund 21 HPG Info and Emp Services Block 32 & 42 Plan Refresh - - 300,000 300,000 (General Government) Total Capital Expansion Fund - $0 $1,800,000 $1,800,000 Self Insurance Fund 22 SAFE Financial Services Security Specialist - 1.0 FTE (est. start date of 1 March 2020) 1.00 113,400 - 113,400 Total Self Insurance Fund 1.00 $113,400 $0 $113,400 Stormwater Fund 24 SAFE Utility Services Northeast College Corridor Outfall A4 (Lemay) Stormwater Lateral Design and Construction - - 959,500 959,500 Total Stormwater Fund - $0 $959,500 $959,500 Broadband Fund 19 ECON Utility Services Income Qualified Connexion Credits - PILOT to the General Fund - 195,000 - 195,000 Total Broadband Fund - $195,000 $0 $195,000 TOTAL ALL FUNDS 3.25 1,251,373 3,239,462 4,490,835 ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: Neighborhood Livability & Social Health Contact: Svc Area: Sustainability Services Related Offer #: Department: Social Sustainability Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $120,000 $120,000 2) $0 $0 $120,000 $120,000 Ongoing One-Time Total Funding Source(s): 1) 100-General Fund: Reserves $120,000 $120,000 2) $0 $0 $120,000 $120,000 NLSH 1.4 - Co-create a more inclusive and equitable community that promotes unity and honors diversity Developing Equity Gaps Analysis, Indicators, and Principles Janet Freeman Identifies internal and external inequities to inform areas of focus for the City of Fort Collins' equity and inclusion work and develops in partnership with community a shared set of guiding principles. NLSH 61. % of residents responding very good/good - Fort Collins as a place of community NLSH 56. % of residents responding very good/good - Fort Collins as a place to live Performance Measure(s): How does Offer Support Primary Strategic Objective: Choose Primary Strategic Objective: This offer supports the City of Fort Collins’ efforts to co-create a more equitable, diverse, welcoming and inclusive community by conducting a comprehensive gaps analysis and developing a data dashboard to inform and prioritize our ongoing work. Data from City Plan’s Trends and Forces Report, our annual Community Survey, Poudre School District and other sources indicate there are disparities in outcomes and experiences among residents. More data collection with external expertise is needed to fully understand disparities in our community that can impact an individual or family’s ability to thrive. Indicators are social and economic inclusion; mental and physical health; affordability; participation in City services, access to City infrastructure and more. The City of Fort Collins is a member of the Government Alliance on Race and Equity (GARE), which provides technical assistance and peer learning for cities. GARE’s best practice roadmap for cities recommends that in order to move the needle, cities must normalize, organize and operationalize. A key first step is a comprehensive analysis of our community’s existing inequities and then ongoing monitoring for data-informed, effective and responsive strategies developed and implemented with those who are impacted most. The City is aligning its equity efforts to the promising practices of other jurisdictions working to advance equitable communities and could build on the analysis conducted in places such as Grand Rapids, MI; St. Louis, MO; Pittsburgh, PA; Albuquerque, NM; Oakland CA; and Dallas, TX. We will also leverage the regional coalition with Denver and Boulder. Additionally, this offer supports community engagement to develop ‘principles of community,’ modeled after Colorado State University, and a shared definition of equity and inclusion for Fort Collins. ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: Neighborhood Livability & Social Health Contact: Svc Area: Planning, Dev & Transportation Related Offer #: Department: Comm Dev & Neighborhood Svcs Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $175,000 $175,000 2) $0 $0 $175,000 $175,000 Ongoing One-Time Total Funding Source(s): 1) 100-General Fund: Reserves $175,000 $175,000 2) $0 $0 $175,000 $175,000 The Corridor Plan will update the vision for the East Mulberry Area, establishing the framework for development and service provision over the next 20-plus years. The annexation assessment component will address the short-term and long-term costs and revenues, including taxes and fees, and one-time and on-going expenditures for municipal services and maintenance. An annexation phasing plan will be developed that provides a fiscally responsible and logical transfer of service responsibility from the County to the City, includes utilities services, and that also considers the impacts to area property owners. The offer includes external financial analysis consulting services ($100k), transportation technical analysis consulting services ($25k), corridor electronic plan ($25k), public meeting support ($15k), plan printing ($2k), and project contingency ($8k). NLSH 1.7 - Guide development through community planning, historic preservation, and efficient and effective development review East Mulberry Corridor Plan Update and Annexation Assessment Cameron Gloss The East Mulberry Corridor represents the City's biggest individual annexation opportunity, and an area that can provide future land uses addressing the City's affordable housing, employment and economic growth needs. ECON 4. Net Percent Change in Local Jobs SAFE 89. Part 1 Crimes in Fort Collins (per 1,000 population) Performance Measure(s): How does Offer Support Primary Strategic Objective: Choose Primary Strategic Objective: ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: Culture & Recreation Contact: Svc Area: Community Services Related Offer #: N/A Department: Park Planning & Development Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $50,000 $50,000 2) $0 $0 $50,000 $50,000 Ongoing One-Time Total Funding Source(s): 1) 100-General Fund: Reserves $50,000 $50,000 2) $0 $0 $50,000 $50,000 This offer will provide financial support for Park Planning staff to work on feasibility, design and community outreach for new features in existing parks requested by the general public and private donors. Currently, Park Planning staff is funded through community and neighborhood park impact fees. The fees are used to build new parks and cannot legally be used for improvement to existing parks. The general public and private donors are requesting new features to existing parks. These requests need to be analyzed & vetted, and initial designs may be requested by private donors before fundraising begins. Park Planning staff needs a funding source to charge staff time and other ancillary costs associated with these requests. Current examples of these requests include an upgrade to Spring Canyon Community Park veteran's plaza, 911 Memorial at Spring Park, park improvements to Eastside Park, and a cyclocross practice course at Rossborough Park. This offer is requesting $50,000 one-time General Fund support for similar projects that may arise in 2020. C&R 2.2 - Plan, design, implement and maintain the City’s parks and trails systems Park Improvement Project Support Dawna Gorkowski This offer directly relates to planning and design of new facilities in parks. Performance Potential new measure - Donations leveraged Measure(s): How does Offer Support Primary Strategic Objective: Choose Primary Strategic Objective: ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: Economic 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 $42,000 $42,000 2) $0 $0 $42,000 $42,000 Ongoing One-Time Total Funding Source(s): 1) 100-General Fund: Reserves $42,000 $42,000 2) $0 $0 $42,000 $42,000 This offer proposes to fund what will be the remaining 6 months of the federal lobbying contract with Squire Patton Boggs, who the City began working with on train horn noise in July, 2019. The City has been pursuing a reduction in train horn noise through the downtown core for many years, most notably in the form of a quiet zone, which would allow train operators to refrain from blasting horns at every crossing. These efforts have been met with resistance, challenges, and roadblocks from the Federal Railroad Administration (FRA), who has to date proven unwilling to work collaboratively, or evaluate federal law beyond a very strict and narrow interpretation. The City has been denied a waiver to the requirement for gates along the Mason corridor despite evidence of meeting safety criteria and has been unable to get firm next steps from FRA on what might be alternative solutions that they would consider. City Council and staff have worked with the federal government through multiple angles, including seeking support of appointed officials from both the Obama and Trump administrations. These efforts have resulted in additional conversations with the FRA but have not produced meaningful results. Recent visits to Washington, D.C. included conversations with our Congressional delegation and members of the Trump administration indicating that a legislative approach could be the most expedient way to see relief. Continuing to use professional lobbyists to assist in this effort increases our chances of getting legislation passed. When we initially reached out to Squire Patton Boggs (SPB), they believed it could take up to a year to see progress. Funds appropriated in 2019 were for the first seven months of that engagement. This request is for six additional months, because work did not begin with SPB until July. If work needed to continue past June of 2020, an additional appropriation would be brought forward at that time. ECON 3.8 - Secure a quiet zone along the Mason Corridor to reduce train noise. Train Horn Noise - Federal Lobbying Tyler Marr The City's work with a federal lobbyist on train horn noise is directly associated with achieving the goal of the strategic objective. Performance Measure(s): How does Offer Support Primary Strategic Objective: Choose Primary Strategic Objective: ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: Environmental Health Contact: Svc Area: Sustainability Services Related Offer #: N/A Department: Environmental Services Capital? No Offer Description: Continued Voluntary Compliance Support for Outdoor Residential Wood Burning - 0.25 FTE Cassie Archuleta Choose Primary Strategic Objective: Efforts to date have focused on promoting voluntary compliance, in line with Council feedback to increase education & outreach, avoiding use of emergency resources when possible. In 2019, work related to new code adoption has included: - Updated Fire Safety, Regulations and Nuisance printed materials, developed in collaboration with Poudre Fire Authority (PFA). - Development of an Air Quality Index (AQI) awareness campaign, which includes health impact awareness, information about Air Quality Alert days, and recommendations for pollution prevention actions such as avoiding wood burning fires. - Development of tools and facilitation of events to assist with neighborhood conversations about wood burning and impacts, including promotion of existing, free, neighborhood mediation resources (www.fcgov.com/neighborhoodservices/mediation). - Increased awareness of, and access to, resources to file complaints (see https://www.fcgov.com/airquality/outdoorburning). - Development of a robust air quality complaint intake system, to assist in gathering evidence regarding complaints. - Collaboration and coordination with PFA regarding complaint response (e.g., PFA non-emergency response for active fires or potential violations of Fire Code, and Environmental Compliance response for other nuisance concerns). - Development of an internal implementation and enforcement plan. Since adoption of this new code in 2019, with the addition of the 0.25 FTE in resources, staff has begun providing education and outreach, tracking and responding to complaints, and otherwise mobilizing efforts to substantiate potential air quality nuisance violations. This is in line with increasing roles and responsibilities for Environmental Services staff to support environmental compliance aspects of air quality such as administering and responding to fugitive dust complaints, administering a Memorandum of Understanding with an asphalt plant, and an oil and gas Operator’s Agreement. Funding this offer continues the allocation for an additional 0.25 FTE in Environmental Services that was appropriated in 2019 to convert an existing 0.75 FTE to a full 1.0 FTE to support education, outreach and compliance related to new air pollution nuisance code. The issue of outdoor fire pits was originally identified as a Council Priority in 2017, and these efforts are aligned with the 2019 Council priority related to impacts of fine particle pollution. Modifications to Air Pollution Nuisance Code (Section 20-1) were adopted unanimously by Council on March 19, 2019 to help mitigate nuisance and health impacts from outdoor wood burning fires in neighborhoods (Ordinance No. 042, 2019). Changes included decriminalization of the code, a 10pm curfew, and a property line setback for outdoor wood burning devices. Additionally, Council unanimously supported resources (0.25 FTE) to increase staffing support for compliance with the new code (Ordinance No. 043, 2019). These new resources only extended through 2019, and ongoing ability to enforce the air pollution nuisance code modifications will, in part, depend on continuation of these resources. This offer supports ENV 4.2 by promoting voluntary compliance with air quality nuisance code related to smoke from outdoor wood fires in residential areas. Performance ENV 146. Outdoor Air Quality Index (AQI) Measure(s): How does Offer Support Primary Strategic Objective: ENV 4.2 - Improve indoor and outdoor air quality ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Continued Voluntary Compliance Support for Outdoor Residential Wood Burning - 0.25 FTE Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $18,638 $18,638 2) $0 $18,638 $0 $18,638 FTE (if part of the offer, identify the position and salary): # 0.25 Salary $18,638 Ongoing One-Time Total Funding Source(s): 1) 100-General Fund: Ongoing $18,638 $18,638 2) $0 $18,638 $0 $18,638 Specialist, Evn Sustainability Title ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: Safe Community Contact: Svc Area: Executive Services Related Offer #: N/A Department: City Clerk's Office Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $93,750 $17,962 $111,712 2) $0 $93,750 $17,962 $111,712 FTE (if part of the offer, identify the position and salary): # 1.00 Salary $93,750 Ongoing One-Time Total Funding Source(s): 1) 100-General Fund: Ongoing $93,750 $93,750 2) 100-General Fund: Reserves $17,962 $17,962 $93,750 $17,962 $111,712 SAFE 5.6 - Optimize the use of data and technology to improve service, protect mission-critical infrastructure and enhance cybersecurity effectiveness Chief Privacy Officer with Records Management Responsibilities Delynn Coldiron Cybersecurity and privacy are complementary. Both use technology, process, and people to protect the City assets. In the case of privacy, the goal is specifically the protection of sensitive data. The Privacy and Records Manager position would be responsible for the protection of citizen, employee, and partner Personally Identifiable Information and other sensitive information throughout the City. This role is necessary for the City's ability to comply with CO HB18-1128 "Concerning strengthening protections for consumer data privacy" that went into effect September 1, 2018. To be determined. Possibilities include whether or not we comply with CO privacy law and other regulations, open data request turnaround time, customer satisfaction. Performance Measure(s): How does Offer Support Primary Strategic Objective: Choose Primary Strategic Objective: Please reference the attachment following the standard revision offer form. Chief Privacy Office Title ATTACHMENT 1 This proposed 1.0 FTE Chief Privacy Officer position is designed to fulfill two complementary roles: a Chief Privacy Officer (CPO) and a Certified Records Manager. While each role could easily be a full‐time job by itself, we propose to roll the records manager responsibilities into the CPO position to gain efficiencies in designing and managing processes that have both privacy and records considerations. Colorado HB18‐1128 requires that the City understand and manage the personally identifiable information (PII) it handles. Some drivers, in addition to HB18‐1128, include compliance with FCC Customer Proprietary Network Information (CPNI) regulations pertaining to Connexion, the Federal Red Flags Rule that applies to any entity that holds a transaction account belonging to a customer, Criminal Justice Information (CJI) regulations, key findings of an external 2017 cybersecurity risk assessment, the Baldridge initiative, general legal liability and financial risk associated with the possibility of a privacy breach, as well as the ethical responsibility to protect our citizens’ identities and financial well‐being. According to the Verizon 2018 Data Breach Investigations Report 11th Ed, the number of data breaches is increasing approximately 25% per year. The IBM Ponemon 2018 Cost of Data Breach Study reports the average cost per record of a data breach in the US to be $233. The same study cites a 28% chance of any entity having a material breach within the next 24 months. Currently, the City has no overall understanding or management of the PII that it collects, stores, and uses; nor does it have a privacy policy, breach investigation and notification procedures, or a standard reliable process for helping to ensure that PII shared with partners is secure. In short, the evolving threat and legislation landscapes have created an environment where managing privacy for the City can no longer be left solely to individual groups. It requires a strategy and oversight. Implementing and managing a privacy program requires someone in a position of authority to develop strategy, coordinate among departments, and manage the maturation of privacy protection. Funding this offer will also improve records management activities across the City by creating a role responsible for developing organization‐wide policy, providing oversight, standardizing document control, and implementing standard procedures for managing and retrieving records. This is expected to improve service efficiency and transparency for the public, minimize non‐value‐added processing time, and help protect the City from legal issues related to non‐compliance violations. Currently, there are multiple disparate approaches to records throughout the City organization. Many departments use a common document management system to store documents; however, with no organization‐wide policy, oversight or common approach there are areas of significant concern that need to be addressed. Areas of concern include: Concern Consequence Storing information in multiple locations, including non‐City approved apps and personal accounts. Discovery and retrieval are complicated and time‐ consuming, if not impossible. The searching is a waste of time and talent, and negatively affects employee morale. The inability to discover information creates a legal liability issue. The unnecessarily long turnaround times are a disservice to customers. ATTACHMENT 1 Information is increasingly contained in information systems, not as document images, yet the City’s record management processes have not evolved to meet the current environment. The consequences of this are similar to those above. Inadequate policies or procedures for data management: Data sharing agreements and open records requests are not consistently reviewed for privacy and cybersecurity safeguards. Sensitive or confidential data is likely shared without proper privacy and cybersecurity controls in place, and we have no way of knowing. This increases our risk of data breaches. Data breaches are estimated to cost $233/record. Outdated criteria, lack of awareness, and no well‐ defined process to determine what is considered confidential information. This results in documents being posted to City Docs containing sensitive infrastructure information that compromises City cyber and physical security. No centralized storage of important originals such as contracts. For example, signatories often keep contacts on their computer hard drives or personal network drives. The inability to find contracts in a timely manner means they may not be effectively managed, increasing financial and legal risk. A lack of version control results in the use of incorrect documents. This increases financial and legal risk, as well as causing rework throughout the City. Duplicate documents are stored in multiple locations without a way to know which copy is the final approved record. Not having a way to identify the official document or information of record results in staff and citizen confusion, rework, delays in filling record requests. Lack of an overall records retention policy to guide storage, destruction and archiving efforts. Records kept longer than required are discoverable and can result in higher than necessary legal risk. Storing unnecessary files is not free. The increasing growth in the amount of stored information has caused IT to rework our storage and back‐up strategies. If we don’t control information storage, costs will continue to escalate unnecessarily. In summary, the City lacks an overall document control schema, records retention policy, data classification process, data sharing approval process, open records release process, and general records management. This results in:  Added costs from penalties for untimely records provision and wasted staff time throughout the City  Negative hits to staff morale due to frustration and confusion and a sense of wasting time and talent, which is known to cause job dissatisfaction and may result in health issues  Citizen dissatisfaction and a poor perception of the City, which may discourage citizens from supporting local government  Increased financial risk  Increased legal liability This offer provides an increased emphasis on government transparency, efficiency, and cost reduction as expected by City leaders, staff, and citizens. It also aligns with the City’s Baldridge efforts and best practices. Additional Info:  A 2017 Cyber Security Risk Assessment prepared for Utilities identified key concerns with city‐ wide documentation control and privacy. Their records recommendations included adopting a standardized documentation control policy that outlines documentation structure for programs, policies and procedures. Consistency in approval process design, schemes, library locations and communication process were also mentioned. Privacy‐wise, they recommended the inception of a City privacy program to be led by a Chief Privacy Officer and a city‐wide data classification plan.  City legal staff has expressed concern about the issues mentioned above, compliance with CO HB18‐1128 specifically, and have indicated that there is risk to the City if records improvements are not made and the requirements of the State legislation not complied with. The position in this offer would be dedicated to both efforts and would require the chosen incumbent to have professional document management certification and experience to enable immediate progress.  The current decentralized records approach has resulted in inconsistent or lack of policies/practices from one department to another, independent or non‐existent retention schedules and a lack of clarity on who owns and is responsible for existing records. There is also a lack of clarity on what records exist and in what form they exist. This is problematic as employees leave without knowledge transfer.  There is a continuous push for more transparency in government. The efforts continue to fine success in the courts, including penalties assessed for organization who cannot provide records in a timely fashion. The idea of transparency in government; however, has buoyed the notion among employees and citizens that all government records are open, which is not the case. The Colorado Open Records Act specifically excludes information from release that compromises the security of the City, is not in the best interest of the community to release, or is otherwise prohibited from release by federal or other state law. HB18‐1128 and federal regulations establish requirements to protect PII from inappropriate disclosure, yet the City has no oversight to help ensure we consistently interpret the CORA exclusions or comply with state and federal legislation. ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: Safe Community Contact: Svc Area: Police Services Related Offer #: Multiple 25.X Offers Department: Police Administration Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $585,000 $585,000 2) $0 $585,000 $0 $585,000 Ongoing One-Time Total Funding Source(s): 1) 100-General Fund: Ongoing $585,000 $585,000 2) $0 $585,000 $0 $585,000 The timing of the agreement to the term, conditions, and pay totals in the Collective Bargaining Unit were agreed to after the BFO process was completed. This adjustment is the majority of the difference between what was budgeted through BFO and the updated costs agreed to in the Collective Bargaining agreement. SAFE 5.2 - Meet the expected level of core and specialized police services as the community grows 2018 Collective Bargaining Agreement Additional Ongoing Costs Erik Martin This will ensure that the City has sufficient funds budgeted to pay the negotiated pay for members of the Collective Bargaining Unit SAFE 23. Percentage of priority one response in 5.5 minutes or less. SAFE 7. Average quarterly response time of priority one calls Performance Measure(s): How does Offer Support Primary Strategic Objective: Choose Primary Strategic Objective: ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: Economic Health Contact: Svc Area: Financial Services Related Offer #: 52.1 Department: Sales Tax Capital? No Offer Description: ECON 3.3 - Enhance business engagement to address existing and emerging business needs Sales Tax Technician - 1 FTE Jennifer Poznanovic Adding a new Sales Tax Tech addresses a critical staffing need in the Sales Tax Dept. with customer service, issuing licenses and processing tax. The current team of 2 has seen 115% growth in business licenses since 1996 and a 51% increase in other licenses since 2011. Performance ECON 70. Business Satisfaction (% rating positively) Measure(s): How does Offer Support Primary Strategic Objective: Choose Primary Strategic Objective: This offer proposes to fund a 1.0 FTE Sales Tax Technician position in Financial Services. The licensing of businesses and processing of sales and use tax returns are vital functions of a high performing government and an economically vital community. In addition to the licensing of businesses, this position would assist in handling special events licenses, administering the sales tax delinquent program, issuing short term rental licenses, handling the downtown concessionaire program, outdoor vendor licensing and issuing solicitor badges. In 2018, annual revenue processed by the Sales Tax office was approximately $138M being remitted by approximately 12,500 businesses with over 54,000 sales tax returns processed by monthly, quarterly and annual filers. In addition to sales and use tax licenses, the Sales Tax office also issues separate licenses for lodging, liquor occupation tax, short term rentals, tax exempt organizations, outdoor vendors, second-hand dealers, solid waste collectors, solicitor permits, places of entertainment, special vending events, downtown concessionaires, movie theaters, pawn brokers, auctioneers and carnival/circuses. In 2018, there were approximately 14,000 licenses total. This work is currently completed by one Senior Coordinator and one Sales Tax Technician. Total business license growth has increased 115% since 1996 while staffing has remained constant at 2 FTEs. As a result, two Sales Tax Auditors assist in the processing of these returns to accommodate the lack of staff resources, resulting in an interruption to audit work. In addition to the increase in the number of businesses being licensed and remitting taxes, these 2 staff took on additional duties of issuing short term rental licenses in 2017, issuing solicitor permits and outdoor vendor licensing including mobile food trucks in 2013 – resulting in a 51% increase in other licenses. In order to keep up with the volume of work, hourly staff is hired intermittently throughout the year in addition to the assistance Sales Tax Auditors provide. The City Rebate program is also administered by the Sales Tax office with a temporary employee hired between the months of June-November to assist in the processing of rebate applications. With the addition of this 1.0 FTE to the Sales Tax team, those responsibilities for the City Rebate would be transferred to the Sales Tax Technician currently on staff, resulting in a savings of $20,000 to that on-going offer. Compared to the largest cities in Colorado, Fort Collins has the leanest Sales Tax Department: •Aurora: 17,800 licenses, 6.5 positions, 2,738 license per staff, 16.5 total staff •Colorado Springs: 14,000 licenses, 5 positions, 2,800 licenses per staff, 8 total staff •Fort Collins: 12,500 licenses, 2 positions, 6,250 licenses per staff, 5 total staff •Boulder: 11,200 licenses, 4 positions, 2,800 licenses per staff, 9 total staff •Lakewood: 10,400 licenses, 3.5 positions, 2,971 licenses per staff, 12.5 total staff •Arvada: 6,500 licenses, 2 positions per staff, 3,250 licenses per staff, 7 total staff •Westminster: 6,400 licenses, 2 positions, 3,200 licenses per staff, 8 total staff •Thornton: 6,100 licenses, 2 positions, 3,050 licenses per staff, 9 total staff Please reference the attachment following the standard revision offer form for further supporting material. ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Sales Tax Technician - 1 FTE Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $70,585 $70,585 2) $0 $70,585 $0 $70,585 FTE (if part of the offer, identify the position and salary): # 1.00 Salary $70,585 Salary Salary Ongoing One-Time Total Funding Source(s): 1) 100-General Fund: Ongoing $70,585 $70,585 2) $0 $70,585 $0 $70,585 2020 OFFER(s) to be reduced or eliminated, if applicable: Offer # Offer Title Ongoing One-Time Total 53.1 Low Income, Property and Utility Rebate Programs 20,000 20,000 Funding Source(s) 100-General Fund: Ongoing 20,000 20,000 Impact: $50,585 net, accounting for a $20,000 savings in Ongoing Offer 53.1 - Low Income, Property & Utility Rebate Programs Tech, Sales Tax Audit & Revenue Title ATTACHMENT 1 2020 Revision Offer – Sales Tax Tech - Offer Name (Required): New Sales Tax Tech - Owner (Required): Jennifer Poznanovic - Offer Summary: This offer proposes to fund a 1.0 FTE Sales Tax Technician position in the Financial Services. The licensing of businesses and processing of sales and use tax returns are vital functions of a high performing government and an economically vital community. In addition to the licensing of businesses, this position would assist in handling special events licenses, administering the sales tax delinquent program, issuing short term rental licenses, handling the downtown concessionaire program, outdoor vendor licensing and issuing solicitor badges. In 2018, annual revenue processed by the Sales Tax office was approximately $138M being remitted by approximately 12,500 businesses with over 54,000 sales tax returns processed by monthly, quarterly and annual filers. In addition to sales and use tax licenses, the Sales Tax office also issues separate licenses for lodging, liquor occupation tax, short term rentals, tax exempt organizations, outdoor vendors, second‐hand dealers, solid waste collectors, solicitor permits, places of entertainment, special vending events, downtown concessionaires, movie theaters, pawn brokers, auctioneers and carnival/circuses. In 2018, there were approximately 14,000 licenses total. License Type 2018 License Count Other Department 1 Sales Tax 12,565 PDT, City Clerk 2 Lodging 420 No 3 Liquor Occupation Tax 400 City Clerk 4 Short Term Rental 381 PDT 5 Tax Exempt 268 No 6 Outdoor Vendor 50 PDT 7 Secondhand Dealer 24 Police 8 Solid Waste Collector 22 Sustainability 9 Solicitor Permit 18 Police 10 Places of Entertainment 17 No 11 Special Vending Event 9 PDT 12 Downtown Concessionaire 8 Purchasing 13 Movie Theater 6 No 14 Pawn Broker 5 Police 15 Auctioneer 5 No 16 Carnival, Circus 0 City Manager ATTACHMENT 1 This work is currently completed by one Senior Coordinator and one Sales Tax Technician. Total business license growth has increased 115% since 1996 while staffing has remained constant at 2 FTEs. As a result, two Sales Tax Auditors assist in the processing of these returns to accommodate the lack of staff resources, resulting in an interruption to audit work. In addition to the increase in the number of businesses being licensed and remitting taxes, these two staff took on additional duties of issuing short term rental licenses in 2017, issuing solicitor permits and outdoor vendor licensing including mobile food trucks in 2013 – resulting in a 51% increase in other licenses. In order to keep up with the volume of work, hourly staff is hired intermittently throughout the year in addition to the assistance Sales Tax Auditors provide. ATTACHMENT 1 Compared to the largest cities in Colorado, Fort Collins has the leanest Sales Tax Department: Front Range City Comparison: City # of Sales Tax Licenses Licensing Positions Licenses/ Licensing Staff Total Staff Aurora 17,800 6.5 2,738 16.5 Colorado Springs 14,000 5 2,800 8 Fort Collins 12,500 2 6,250 5 Boulder 11,200 4 2,800 9 Lakewood 10,400 3.5 2,971 12.5 Arvada 6,500 2 3,250 7 Westminster 6,400 2 3,200 8 Thornton 6,100 2 3,050 9 ATTACHMENT 1 The City Rebate program is also administered out of the Sales Tax office with a temporary employee hired between the months of June‐November to assist in the processing of rebate applications. With the addition of this 1.0 FTE to the Sales Tax team, those responsibilities for the City Rebate would be transferred to the Sales Tax Technician currently on staff, resulting in a savings of $20,000 to that on‐going offer. Cost of new resource: - Primary Strategic Objective: ECON 3.3 ‐ Enhance business engagement to address existing and emerging business needs - Performance Measures: ECON 70. Business Satisfaction (% rating positively) - Enhancement/Reduction Base Offer (Required): $50,585 net, accounting for a $20,000 savings in on‐going offer "Low Income, Property & Utility Rebate Programs" $70K with benefits $20K from rebate program $50K needed for new FTE $18K from STR revenue $32K from GF ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: Neighborhood Livability & Social Health Contact: Svc Area: Sustainability Services Related Offer #: Department: Social Sustainability Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 100 - General Fund $75,000 $75,000 2) $0 $0 $75,000 $75,000 Ongoing One-Time Total Funding Source(s): 1) 100-General Fund: Reserves $75,000 $75,000 2) $0 $0 $75,000 $75,000 This offer would fund a consultant to conduct a study to determine options and recommendations for Affordable Housing Impact Fees to fund construction and rehabilitation of affordable housing specific to the needs of Fort Collins. The options will likely include commercial and residential linkage/impact fees designed to mitigate the need of affordable housing created by new development. It is legally required for a municipality to conduct the study to determine the nexus/need prior to adopting these types of fees. The study may uncover and include additional fees/revenue recommendations which could also be considered by Council. It is important to note that if new fees are recommended and ultimately considered and approved by Council, they would be collected during the normal development review process when other fees are currently collected. NLSH 1.1 - Improve access to quality housing that is affordable to a broad range of income levels Affordable Housing Impact Fee and Revenue Study Sue Beck-Ferkiss This offer supports this objective by providing recommendations of new funding sources or fees, including a potential Affordable Housing Impact Fee, that would produce funds to use as subsidy for affordable housing projects which would increase the access and availability of housing that is affordable. Performance NLSH 3. Affordable Housing Inventory Measure(s): How does Offer Support Primary Strategic Objective: Choose Primary Strategic Objective: ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: Neighborhood Livability & Social Health Contact: Svc Area: Utility Services Related Offer #: 85.1 Department: Broadband (Utilities) Capital? No Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 505 - Broadband Fund $195,000 $195,000 2) 100 - General Fund $195,000 $195,000 $390,000 $0 $390,000 Ongoing One-Time Total Funding Source(s): 1) 505-Broadband Fund: Ongoing Revenue $195,000 $195,000 2) 100-General Fund: Ongoing $195,000 $195,000 $390,000 $0 $390,000 Note: The expense to Broadband is the PILOT and the expense to the General Fund is for the credit NLSH 1.3 - Improve accessibility to City and community programs and services to low- and moderate- income populations Income Qualified Connexion Credit Colman Keane An income-qualified rate will provide low-income individuals and families equitable access to broadband services Performance In development Measure(s): How does Offer Support Primary Strategic Objective: Choose Primary Strategic Objective: An income-qualified credit will be available to Fort Collins' residents as Connexion comes online 2019 and 2020. Eligibility will mirror existing income-qualified metrics currently utilized by Utilities: LEAP qualified in current or previous year; LEAP eligibility is up to 165% of federal poverty index; A broadband "credit" allows income-qualified households to choose a service plan from the full Connexion menu versus most commercial models where reduced rates deliver reduced speed; 2019/20 availability of an income-qualified rate is restricted by unknowns embedded in the launch: service area coverage and flow of pilot revenue. Staff will bring forward a comprehensive income-qualified broadband program to reduce digital distress and increase equitable access in spring 2020 BFO for 2021/22 implementation. This robust Connexion income-qualified program could include, but will not be limited to: educational outreach, community partnerships, marketing and engagement, digital skill training and development, evaluation of outcomes, and success metrics. ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Information & Employee Svcs Related Offer #: Department: Operation Services Capital? Yes Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 400 - Capital Projects Fund $1,500,000 $1,500,000 2) $0 $0 $1,500,000 $1,500,000 Ongoing One-Time Total Funding Source(s): 1) 250-Capital Expansion Fund: General Government Reserve $1,500,000 $1,500,000 2) $0 $0 $1,500,000 $1,500,000 Performance Measure(s): This offer will fund the design of a new Downtown parking structure. The Downtown area needs additional parking, particularity in the area where the City and County offices are located. This new four-level garage is planned for 245 N. Mason St., and would replace the surface parking just north of the 215 N. Mason St. facility. The new 400-space parking structure (replacing 69 spots) would have one level below ground, which would contain mechanical equipment and parking stalls for City Fleet vehicles. The remaining three levels would allow parking for both the public and City staff working in the Downtown area. It will include a solar photo-voltaic (PV) system on the top level to off-set the building’s energy use, and may also include some retail space to be leased. This project timing would need to be completed before, or in conjunction with the new Municipal Building construction. Before the design begins, we anticipate having conversations with Larimer County to determine their interest in a partnership. The desired schedule would be: 2020 – 100% Design completed with cost estimate and construction drawings 2021 - Budget offer submitted out-lining funding plan 2022/ 2023 - Construction complete New Block 32 Parking Structure Design Tracy Ochsner Choose Primary Strategic Objective: TRAN 6.7 - Address parking needs Downtown, along the MAX corridor and in residential neighborhoods How does Offer Support Primary Strategic Objective: Address parking needs Downtown, along the MAX corridor and in residential neighborhoods: This parking structure would drastically improve downtown and surrounding neighborhood parking problems for now and the future. ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: High Performing Govt. Contact: Svc Area: Information & Employee Svcs Related Offer #: Department: Operation Services Capital? Yes Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 400 - Capital Projects Fund $300,000 $300,000 2) $0 $0 $300,000 $300,000 Ongoing One-Time Total Funding Source(s): 1) 250-Capital Expansion Fund: General Government Reserve $300,000 $300,000 2) $0 $0 $300,000 $300,000 Performance Measure(s): This offer will fund a master and space plan refresh for the proposed Block 32 and 42 Municipal campus that was drafted in 2013-2014. This plan includes a new City Municipal Building, parking structure(s), and outdoor event space. The refresh will include the site plan for Block 32 and 42, and update the space plans to determine each affected department space needs and anticipated growth over the next 10-12 years. This effort will assist in determining which departments to house in 215 N Mason, 300 Laporte Ave, Building A, and the new City Municipal Building. The size of this new facility will then be determined, and a conceptual design will be completed. This refresh must be done in order to know the required square footage and overall site layout prior to the design moving forward. The desired schedule for this project would be: 2020 - Refresh the Block 32 and 42 master plan and complete renderings 2021 - 50% building design complete and develop a cost estimate 2022 - 100% building design complete including construction drawings 2023 - Develop funding plan for 2024 / 2025 Budget 2024/ 2025 - New Municipal Building construction, 2026- Project complete Block 32 & 42 Plan Refresh Tracy Ochsner Choose Primary Strategic Objective: HPG 7.1 - Provide world-class municipal services to residents and businesses How does Offer Support Primary Strategic Objective: A new City Municipal Building will house 11 different City departments and a Council Chambers to provide many functions and services. ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: Safe Community Contact: Svc Area: Financial Services Related Offer #: 71.7 Department: SSRM and OEM Capital? No Offer Description: SAFE 5.8 - Improve security at City facilities and properties Security Specialist - 1.0 FTE Kendra Radford and Jim Byrne Providing for a safe and secure workplace is a core responsibility and value for the City. Funding this offer provides budget for a Security Specialist position that will serve as a coordinator for programming related to the protection and safety of employees, physical assets, operational capabilities, and the environment against potential threats of injury and loss or damage by criminal, hostile, or malicious acts. All City Departments have relevant security related training developed and provided, with 100% of City employees participating. All security related incidents will be tracked and reviewed for causes and improvements, with the goal of reducing both the number of incidents and the severity of impact to employees and the organization. Performance Measure(s): How does Offer Support Primary Strategic Objective: Choose Primary Strategic Objective: The Security Specialist will conduct on-site security assessments to identify vulnerabilities, coordinate City-wide physical security systems (to include video surveillance and access control), and assist in developing and facilitating security and emergency preparedness related training. The position will also be responsible for helping departments coordinate consistent security-related practices and policies across the organization, working to develop mission enhancing practices and shared resources. Duties will include but are not limited to the following: •Conducting on-site security assessments to identify vulnerabilities and working with internal and external stakeholders to implement effective security strategies. •Coordinating with City partners to effectively manage City-wide physical security systems, to include video surveillance, access control systems, intrusion detection systems, and panic buttons to safeguard life and property. •Managing the acquisition and ongoing contract performance of security vendors. •Ensuring an effective workplace violence prevention program by providing consultation and resources to the Human Resources department in handling sensitive employee matters. •Coordinating internal investigations of security violations, employee wrongdoing, theft, and other misconduct. •Responding to security incidents impacting the City and working closely and in coordination with all internal and external stakeholders to identify vulnerabilities and implement corrective actions to resolve security-related issues. •Fostering a greater situational awareness, preparedness, and resiliency within the City. ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Security Specialist - 1.0 FTE Ongoing One-Time Total Expense Fund(s): 1) 602 - Self Insurance Fund $113,400 $113,400 2) $0 $113,400 $0 $113,400 FTE (if part of the offer, identify the position and salary): # 1.00 Salary $113,400 Ongoing One-Time Total Funding Source(s): 1) 602-Self Insurance Fund: Ongoing Revenue $113,400 $113,400 2) $0 $113,400 $0 $113,400 Security Specialist Title ATTACHMENT 1 City of Fort Collins 2020 Revision - Offer Request/Reduction Form Offer Name: Outcome: SAFE Community Contact: Svc Area: Utility Services Related Offer #: Department: Ut Water Systems Engr Div Capital? Yes Offer Description: Ongoing One-Time Total Expense Fund(s): 1) 504 - Stormwater Fund $959,500 $959,500 2) $0 $0 $959,500 $959,500 Ongoing One-Time Total Funding Source(s): 1) 504-Stormwater Fund: Reserves $959,500 $959,500 2) $0 $0 $959,500 $959,500 SAFE 5.5 - Address water, wastewater and stormwater infrastructure needs for the protection of people, property and the environment Northeast College Corridor Outfall A4 (Lemay) Stormwater Lateral Design and Construction Theresa Connor Construction of needed stormwater infrastructure that has been identified in a Master Plan to provide flood protection for the community. SAFE 69. System Improvement (LF of Pipe Improved) (Stormwater) SAFE 88. % completion of Master Plan needs for Stormwater projects Performance Measure(s): How does Offer Support Primary Strategic Objective: Choose Primary Strategic Objective: The Northeast College Corridor Outfall (NECCO) is a stormwater improvement program to address stormwater flooding and a lack of stormwater infrastructure in the Dry Creek Basin in the area north of Vine Drive and east of College Avenue. The A4 Lateral is one branch of this system located along Old Lemay Drive north of Vine. It collects and conveys stormwater runoff from the Evergreen and Greenbriar subdivisions and will eliminate the need for an existing stormwater pump station that is nearly failing and requires substantial maintenance. The A4 lateral will improve the stormwater system for current residents in these neighborhoods. The reason for a mid-cycle offer is to align with Planning, Development and Transportation (PDT) Department's horizontal work on the realigned Lemay Avenue overpass. Coordination with the roadway project will help manage project costs and provide an opportunity to coordinate construction of the stormwater system for the roadway with the NECCO system. An easement will be needed from Two Tree Horse Farms along the old alignment of Lemay Avenue. The landowner is willing to donate the easement if constructed in coordination with the realigned Lemay Avenue Overpass and dedication of an easement to them along the NECCO channel downstream. The opportunity to get this work completed is advantageous for multiple parties and replaces failing infrastructure. There is no net increase in on-going operations and maintenance costs as the new stormwater pipe will eliminate a failing pump station and its associated costs. ATTACHMENT 1 2020 Budget Revisions Council Work Session - September 10, 2019 Mike Beckstead - CFO ATTACHMENT 2 Today’s Agenda 2 1) Budget Revision Process Overview 2) 2020 Financial Context • Revenue forecast • Expenditure adjustments • Funding available 3) Review of 2020 Revision Offer requests ATTACHMENT 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Even Years Odd Years I nputs for the Strategic Plan Biennial Strategic Plan & Budget Calendar Offer Creation BFO Teams Evaluate Offers Public Engagement BLT Exec Review Budget Prep Council Process Capital Improvement Plan Strategic Risk Assessment LT Financial Plan Community Engagement / Community Survey Dept. Input Strategic Plan X X = Council review and adoption of the Strategic Plan BFO ‘Off Year’ Revision Process Results Review Strategic Plan Council Election & Planning Retreat 3 X Strategic Planning Process Budgeting for Outcomes Revenue Public Hearings ATTACHMENT 2 2020 Budget Revision Objectives 4 The recommended 2020 Budget Revisions are intended to address: • Adjust ongoing expenditures to match current ongoing revenue estimates • Council priorities and high-priority projects and needs not known during last BFO • Fiduciary responsibilities & fund balance The primary criteria for a 2020 Budget Request was that it was specifically directed by the City Manager or City Council The Budget Revision process it not Budgeting for Outcomes: • There is no ‘call for Offers’ to support the Strategic Plan • There is no vetting and comparison of Offers by BFO Teams ATTACHMENT 2 Timeline for the 2020 Budget Revisions 19 Aug: Council Finance Committee meeting - Completed 10 Sept: Council Work Session #1 24 Sept: Council Work Session #2 (requested by Council last cycle) 15 Oct: 1st Reading of the 2020 Annual Appropriation 5 Nov: 2nd Reading 5 ATTACHMENT 2 Cost Assumptions in the 2019-20 Budget 6 2019 2020 General Inflation 2.3% 2.3% Salary Adjustments 3.0% 3.0% Medical and Dental Costs 10.2% 6.6% Fuel Prices $2.51 $2.71 / gallon Retirement 401/457 Contributions No Change GERP Supplemental Contribution* $1.1M $1.1m + $0.5m Budget Staffing at 98% of Total Cost To Account for Market Swings, Staff Proposes to make a General Fund Assignment for a Possible Additional Contribution of $500k to the General Employees Retirement Plan (GERP) ATTACHMENT 2 7 No Changes to the Utility Rates Included in the 2019-20 Adopted Budget Rate Changes: Actual Actual Budget Budget Utility 2017 2018 2019 2020 L&P 3.45% 1.8% 5.0% 5.0% Water 5.0% 5.0% 0.0% 0.0% Wastewater 3.0% 3.0% 0.0% 0.0% Stormwater 5.0% 0.0% 2.0% 2.0% Utility Rate Assumptions in the 2019-20 Budget ATTACHMENT 2 2019 High-Level Financial Summary 8 Governmental Funds • Revenue:  2019 budget included 3% sales tax growth – strong 2018 modified to 1.7%  YTD net Sales Tax growth is 1.8%  Other major revenue streams – no concerns • Expenses:  Underspend YTD – no concerns Enterprise Funds • No concerns with either revenue or expenses through July 2019 ATTACHMENT 2 2019-20 Sales Tax Update 9 • Sales Tax Growth:  2019 growth of 1.8%  2017 & 2018 growth 2.3% and 3.3%  2020 growth forecast at 3.0%  Uncertainty on achieving 3.0% in 2020 • Modified 2020 Sales Tax Forecast  Modified forecast – 1.5% • Conservative approach  Sales Tax revenue reduction of $1.8M  Requires expenditure adjustments of ongoing expenditures Fund Shortfall General Fund $1,052 Keep Fort Collins Great 397 Natural Areas 117 Transportation 117 CCIP 117 $1,800 ATTACHMENT 2 10 General Fund 2018 Year-end Fund Balance Budgeted Recession Contingency remains at $2.2M 2017 2018 Appropriated, Min. Policy, or Scheduled Available but with some Constraints Available for Nearly Any Purpose Assigned - Minimum 60 day Policy $ 25.3 $ 26.0 $ 26.0 $ - $ - Non-spendable Advances 4.9 4.7 4.7 - - Landbank inventory 1.5 1.5 1.5 - - Udall Endowment 0.1 0.1 0.1 Restricted TABOR Emergency 6.9 7.0 7.0 - - Police Programs 0.9 0.3 0.2 0.1 - Donations & Misc 0.9 1.2 0.8 0.4 - Economic Rebates 2.6 1.7 0.4 1.3 - DDA/Woodward Debt 0.7 0.7 - 0.7 - Committed Traffic Calming - 0.2 - 0.2 - Culture & Recreation 0.2 0.4 0.3 0.1 - Affordable Housing Land Bank 1.3 1.4 - 1.4 - Assigned Prior Year Purchase Orders 4.3 3.7 3.7 - - Manufacturing Use Tax Rebate 0.7 1.2 1.2 - - Transit Bus Replacement 0.5 0.5 0.2 - 0.3 Golf Irrigation System 0.5 0.5 0.1 - 0.4 Revenue Contingency 4.4 2.2 - - 2.2 Camera Radar 0.9 1.1 - - 1.1 Waste Innovation 0.2 0.2 - - 0.2 Reappropriation 1.0 0.3 0.3 - - Budgeted use of reserves 7.3 8.7 8.7 - - Unassigned 4.8 2.7 - - 2.7 Year End Total $ 69.9 $ 66.3 $ 55.2 $ 4.2 $ 6.9 General Fund - Year End 2018 - $66.3 ATTACHMENT 2 How We Closed the Gap 11 1. Reduced Debt Service Due to Interest Rate Favorability ‒ Lower interest on 2019 debt resulted in $350k debt service favorability • Impact: Ongoing savings of $350k in the General Fund starting in 2019 2. Fuel Savings in Transfort ‒ 2019 YTD fuel savings of being driven by usage of CNG and diesel fuel lower than forecast ‒ Adjustment to 2020 of $206k – modified GF transfer to Transit • Impact: Ongoing savings of $206k in the General Fund 3. Benefits – Lower Claims & High Available Fund Balance ‒ Claims cost $2.9M under forecast, benefits fund $4.3M higher than minimum ‒ Hold flat department or staff premiums – avoid 7.5% and 5.0% increase • Impact: Reduction across all departments approximately $3.0M with about $1.25M in the General Fund ATTACHMENT 2 Closing the Gap & Available Funding 12 Expenditure Adjustments in Total Balance Expenditures with Revenue All values in $k ATTACHMENT 2 2020 Budget Revision Offers 13 Fund Revision Requested FTE Ongoing $ One-Time $ Total General Fund Developing Equity Gaps Analysis, Indicators, and Principles - - 120,000 120,000 East Mulberry Corridor Plan Update and Annexation Assessment - - 175,000 175,000 Park Improvement Project Support - - 50,000 50,000 Train Horn Noise - Federal Lobbying - - 42,000 42,000 Continued Voluntary Compliance Support for Outdoor Residential Wood Burning - 0.25 FTE 0.25 18,638 - 18,638 Chief Privacy Officer with Records Management Responsibility (start date of 1 Mar 2020) 1.00 93,750 17,962 111,712 Ongoing Agreements from 2018 Collective Bargaining - 585,000 - 585,000 Sales Tax Technician - 1 FTE 1.00 50,585 - 50,585 Affordable Housing Impact Fee Study - - 75,000 75,000 Income Qualified Connexion Credits - 195,000 - 195,000 Total General Fund 2.25 942,973 479,962 1,422,935 Capital Expansion New Block 32 Parking Structure Design - - 1,500,000 1,500,000 Fund (Gen. Gov't) Block 32 & 42 Plan Refresh - - 300,000 300,000 Total Capital Expansion Fund - $0 $1,800,000 $1,800,000 Self Ins. Fund Security Specialist - 1.0 FTE (est. start date of 1 March 2020) 1.00 113,400 - 113,400 Total Self Insurance Fund 1.00 $113,400 $0 $113,400 Stormwater Fund Northeast College Corridor Outfall A4 (Lemay) Stormwater Lateral Design and Construction - - 959,500 959,500 Total Stormwater Fund - $0 $959,500 $959,500 Broadband Fund Income Qualified Connexion Credits - PILOT to the General Fund - 195,000 - 195,000 Total Broadband Fund - $195,000 $0 $195,000 TOTAL ALL FUNDS 3.25 1,251,373 3,239,462 4,490,835 ATTACHMENT 2 Summary of Proposed Changes 14 Combination of expense reductions, available reserves and ongoing revenue offset Sales Tax shortfall and provides funding for proposed 2020 Revisions All values in $k Description General Fund - Ongoing General Fund - 1-Time Capital Expan- sion KFCG CCIP Natural Areas Trans- porta- tion Storm- water Self Insur- ance Broad- band TOTAL Available Revenue and Reserves 943 2,298 11,100 1,975 2,583 281 1,194 8,300 165 197 29,036 2020 Budget Revision Requests Ongoing Requests (943) (113) (1,056) One-Time Requests (480) (1,800) (960) (195) (3,435) Total of 2020 Revisions (943) (480) (1,800) 0000 (960) (113) (195) (4,491) Net Impact (positive = available) $0 $1,818 $9,300 $1,975 $2,583 $281 $1,194 $7,340 $52 $2 ATTACHMENT 2 2020 Budget Revision Offer Detail 15 Developing Equity Gaps Analysis, Indicators, and Principles • Conducts a comprehensive gaps analysis to identify inequities in the City • Develops a data dashboard to inform & prioritize ongoing work in this area • Develops ‘principles of community’ (modeled after CSU) and define equity & inclusion for Fort Collins • Uses 1-Time General Fund reserves to help inform possible Offers for the 2021-22 Budget Cycle East Mulberry Corridor Plan Update & Annexation Assessment • Updates vision for East Mulberry area, establishing framework for development & service provision • Develops a logical & fiscally responsible annexation phasing plan for transfer of service from County to City • Uses 1-Time General Fund reserves to help inform possible Offers for the 2021-22 Budget Cycle Park Improvement Project Support • Park Planning staff currently funded by Neighborhood Parkland Fund, which is designated to build new parks and cannot legally be used for improvements to existing parks • Provides financial support for Park Planning staff to assess existing park needs • Uses 1-Time General Fund reserves: Use of funds is dedicated / unused funds return the fund balance annually ATTACHMENT 2 2020 Budget Revision Offer Detail 16 Continued Voluntary Compliance Support for Outdoor Residential Wood Burning • Provides continued funding for the additional 0.25 FTE appropriated in 2019 that converted an existing 0.75 FTE to a full 1.0 FTE to support this initiative, which aligns with the 2019 Council Priority related to fine particle pollution • Uses 1-Time General Fund reserves to continue funding per the AIS of the related 2019 Supplemental Appropriation Chief Privacy Officer with Records Management Responsibility • Funds a new position (1.0 FTE) beginning in March 2020, which would fulfill two roles: Chief Privacy Officer and Certified Records Manager • Uses ongoing General Fund dollars to address increasing cybersecurity concerns and the protection of sensitive information not subject to the Colorado Open Records Act Train Horn Noise – Federal Lobbying • Provides funding to continue the City’s work with a federal lobbyist to achieve a reduction in train horn noise through the downtown core • Uses 1-Time General Fund reserves to continue funding per the AIS of the related 2019 Supplemental Appropriation ATTACHMENT 2 2020 Budget Revision Offer Detail 17 Sales Tax Technician • Funds an additional Sales Tax Technician (1.0 FTE) position in Financial Services • Provides critical staffing relief related to the growth in volume of business licenses & sales/use tax returns • Uses ongoing General Fund dollars to ensure quality customer service to the business community Ongoing Agreements from 2018 Collective Bargaining • Budgets funds for negotiated pay for members of the Police Services Collective Bargaining Unit • Most recent negotiation was completed after the 2019-20 BFO process was completed • Uses 1-Time General Fund reserves to continue funding per the AIS of the related 2019 Supplemental Appropriation Affordable Housing Impact Fee Study • To determine affordable housing impact fee options to fund construction and rehabilitation of affordable housing • Uses 1-Time General Fund reserves to fund the analysis ATTACHMENT 2 2020 Budget Revision Offer Detail 18 Block 32 & 42 Plan Refresh • Provides funds for a master plan refresh for the proposed Block 32 & 42 Municipal Campus drafted in 2013-14 • Refresh would include site plan for Block 32 & 42 and update the space plans to determine department space needs and anticipated growth over the next 10-12 years • Uses 1-Time General Government Capital Expansion Fund reserves which are restricted to capital projects of a more general governmental purpose New Block 32 Parking Structure Design • Funds the design of a new downtown parking structure with 400 spaces to replace the surface lot to the north of 215 N. Mason St., which has 69 spaces • Uses 1-Time General Government Capital Expansion Fund reserves which are restricted to capital projects of a more general governmental purpose Income Qualified Connexion Credits • Funding for Connexion to provide a low-income rate for symmetrical gig-service to qualified subscribers • A full campaign informing the community of these credits will be developed for the 2021-22 Budget • Funded by a 6.0% PILOT paid by Connexion ATTACHMENT 2 2020 Budget Revision Offer Detail 19 Northeast College Corridor Outfall A4 (Lemay) Stormwater Lateral Design & Construction • Funds design & construction of the A4 lateral portion of the Northeast College Corridor Outfall stormwater improvement project • Addresses flooding & lack of stormwater infrastructure in Dry Creek Basin, north of Vine Dr. & east of College Ave. • Completing this work in 2020 creates cost & project management efficiencies by coordinating with a roadway project at this location being undertaken by Planning, Development, and Transportation • Uses 1-Time Stormwater Fund reserves to leverage the existing schedule of a related capital project Security Specialist • Funds a Security Specialist (1.0 FTE) position to develop consistent security-related practices & policies across the organization • Position would conduct on-site security assessments to identify vulnerabilities, coordinate systems, and assist with development & facilitation of security & emergency preparedness related training • Uses ongoing Self-Insurance Fund dollars to provide this service to the Citywide organization ATTACHMENT 2 20 Guidance Requested: 1. What questions or feedback does City Council have on the City Manager’s recommended revisions to the 2020 Budget? 2. Does City Council want to use the scheduled work session on September 24 to continue this discussion or move on to 1st Reading scheduled for October 15, 2019? ATTACHMENT 2 21 Back-Up ATTACHMENT 2 Prior BFO Reductions Summary 22 2018 Revisions - Reduced ongoing expenses by $2.3M Citywide; $1.9M realized within the General Fund - Various reductions were across entire City, excluding Utilities 2019-20 Biennial Budget - $2.4M of ongoing expenses reduced in the City Manager’s Recommended Budget comprised of position reductions, program reductions/eliminations and other operational reductions - $1.3M of additional ongoing expenses reduced on 1st Reading based on Council direction ATTACHMENT 2 Sales Tax with % Change 23 • Sales tax is generated at point of purchase of goods and products • Average growth: • 2000 - 2010 1.7% • 2010 – 2015 5.6% (w/o KFCG) • 2015 - 2018 3.0% • 2019 YTD growth over 2018 1.7% ATTACHMENT 2 Use Tax with % Change 24 • Use Tax generated from building activity, auto sales and business equipment investment • Significant volatility in use tax • Several large projects drove the spike in 2014-2016 • Current building activity has revenue hovering in the $21M range ATTACHMENT 2 City Fund Balances 25 • Strong fund balance growth 2011- 2014 • Stable & healthy fund balance 2014 – 2018 • Fund balance as a % of expenses peaked in 2014, healthy in 2018 ATTACHMENT 2 General Fund Balances 26 • Strong fund balance growth 2011- 2014 • Stable & healthy fund balance 2014 – 2018 • Minimum reserves grown from $20.6M in 2011 to $33.0M in 2018 ATTACHMENT 2  Security risks that could personally affect citizen safety and/or the security of City infrastructure ATTACHMENT 1 TOTAL ALL FUNDS 3.25 1,251,373 3,239,462 4,490,835 After netting out the proposed additions fund balances are still strong and well above minimum fund balance requirements.