HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/16/2010 - SECOND READING OF ORDINANCE NO. 111, 2010, BEING T DATE : November 16 , 2010
STAFF : Darin Atteberry _
Mike Freeman MED
Second Reading of Ordinance No . 111 , 2010 , Being the Annual Appropriation Ordinance Relating to the Annual
Appropriations for the Fiscal Year 2011 and Adopting the Budget for the Fiscal Years Beginning January 1 , 2011 and
Ending December 31 , 2012 , and Fixing the Mill Levy for Fiscal Year 2011 .
EXECUTIVE SUMMARY
The Annual Appropriation Ordinance is presented for Second Reading . This Ordinance sets the City Budget for the
two year period (2011 -2012 ) . The approved Budget becomes the City's financial plan for the next two fiscal years .
This Ordinance was unanimously adopted on First Reading on November 2 , 2010 . On November 2 , 2010 , the Fort
Collins voters also approved a . 85% increase in the sales and use tax rate ( Measure 2B ) effective January 1 , 2011 .
This adds $ 18 . 7 million in new revenue into the 2011 Budget and $ 19 . 2 million in new revenue into the 2012 Budget
for specific purposes as was outlined in the ballot language . The Annual Appropriation Ordinance now includes these
new funds .
The City Council met on November 9 , 2010 , to discuss specific items it wishes to fund following the positive community
vote on Measure 2B . Those items are listed in the background and are included in this budget.
BACKGROUND / DISCUSSION
City Council Direction Received at the November 9, 2010 Work Session
The following programs or services were identified by the City Council for inclusion in second reading of the budget:
Transportation :
• Offer 127 . 22 Pavement Management Program - $6 , 171 , 000
• Offer 131 . 12 Dial-a- Ride Night Service - $44 , 150
• Offer 131 . 25 Transfort Operations — Saturday Service - $ 150 , 000
Safe Community:
• Offer 132 . 8 Poudre Fire Authority South Battalion - $4941000
Culture, Parks & Recreation :
• Offer 59 . 3 Mulberry Pool - $254 , 714
• Offers 39 . 6 , 39 . 8 , and 48 . 3 Mulberry Pool Facility and Utility Costs - $ 187 , 828
• Offer 61 . 6 Northside Aztlan Community Center - $ 141 , 091
• Offer 60 . 8 Adult Programs/Senior Center - $260 , 724
• Offer 106 . 7 Community Parks - $68 , 000
Neighborhood Livability :
• Offer 85 . 3 Restoration of Human Services Program - $50 , 733
• Offer 85 . 2 Restoration of the Affordable Housing Fund - $ 145 , 000
• Offer 24 . 1 Party Patrol and Riot Prevention - $ 16 , 776
The City Council will meet in late November or early December to work through the balance of the programs and
services it wishes to fund with the new revenue generated from Measure 2B , as well as $ 1 million which was originally
devoted to street maintenance . With the passage of Measure 2B , those funds are now available for other City Council
November 16 , 2010 -2 - ITEM 24
priorities . At this meeting , staff will present any modifications to the programs and services which are listed above ,
as City staff and City Council believe there may be additional efficiencies that can be pursued which may lower the
cost of these programs and services . Following this special City Council budget workshop , staff will prepare a
resolution or ordinance for Council consideration that outlines in detail which programs and services will be funded
from the Measure 2B funds . Any capital improvement projects identified in this process will need to be adopted by
ordinance per City policy (i . e . , bridge projects ) .
Note: City Council also directed staff to fund reductions that were included in the original budget to
the Museum/Discovery Science Center. The recommended reductions are to take place in 2012, so
restoring that funding does not impact the 2011Appropriations Ordinance. City Council will note that
the funding has been restored in 2012 in the budget document.
Overview of Implications of Measure 213
On July 27 , City Council approved Resolution 2010-047 submitting a proposed 0 . 85% increase in the City's sales and
use tax rate to the voters for their consideration on the November 2 , 2010 General Election Ballot which was
subsequently approved by the voters . The tax increase includes the following provisions :
• An increase of . 85% (or 8 . 5 cents on a $ 10 purchase )
• The additional revenue will be allocated in the following manner:
0 33 % for street maintenance and repair
0 17% for other street and transportation needs
0 17% for police services
0 11 % for fire services
0 11 % for parks maintenance and recreation services ; and
0 11 % for other community priorities as determined by City Council .
• The increase will commence January 1 , 2011 and sunset after 10 years , ending at midnight on December 31 ,
2020 .
• The increase will yield an estimated $ 18 . 7 million in the first full year of collection .
Additionally, the ballot language requires the City Manager to report annually to City Council on how the revenues are
used and the cost saving measures that were undertaken by the City each year. In continuing to communicate with
community members regarding the proposed ballot measure , City Council and staff have received questions regarding
the proposed uses for the funds reserved for "other community priorities as determined by City Council . " While the
resolution does not provide details on the anticipated uses for these funds , Council expects to allocate these funds
to high priority City needs identified by City Council in the annual budget process . This portion of the sales and use
tax revenue would provide approximately $2 . 1 million of new resources in the first year.
The services which will receive allocated revenues based on the formula in Resolution 2010-047 include
Transportation , Police , Fire , and Parks and Recreation . In 2010 , these programs account for 68% of the expenses
in the City's General Fund . The remaining 32 % portion of the General Fund includes such services as Economic
Development, City Planning , Affordable Housing programs , Cultural Services , Development Review, Code
Enforcement, Natural Resources programs , and citywide administrative costs . The General Fund does not cover the
various Utility Enterprise funds including Electric, Water, Wastewater, and Stormwater services .
Resolution 2010-047 provides additional details regarding the types of programs , activities and services which could
be funded through the approximately $2 . 1 million in revenue provided by the 11 % allocated to "other community
priorities . " Some examples of needs which the City Council could fund include :
• Economic Health Programs : Assistance program for business retention and expansion , support of the
downtown area , and system improvements for Development Review and Planning processes
• Neighborhood Programs : Code Compliance , Community Mediation program , various Community
Partnerships (CSU , Poudre School District, Larimer County) and Affordable Housing programs
Environmental Programs : Recycling , Sustainability Programs , and Green Building Code
• Cultural Programs : Museum and community arts
• Critical City Service and Support: Technology infrastructure , facility and vehicle maintenance , administration
and internal services ( Human Resources , Finance , Communications)
November 16 , 2010 -3- ITEM 24
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading .
ATTACHMENTS
1 . Copy of First Reading Agenda Item Summary - November 2 , 2010
ATTACHMENT 1
DATE: November 2, 2010 AGENDA
STAFF: Darin Atteberry _
UNCIL
Mike Freeman
T COLLINS CITY C07
SUBJECT
First Reading of Ordinance No. 111, 2010, being the Annual Appropriation Ordinance Relating to the Annual
Appropriations for the Fiscal Year 2011 and Adopting the Budget for the Fiscal Years Beginning January 1, 2011 and
Ending December 31, 2012, and Fixing the Mill Levy for Fiscal
Year 2011.
EXECUTIVE SUMMARY
The Annual Appropriation Ordinance\s present Id�for First+Rl adad g This Orrdinance sets the City Budget for the two
year period 2011-2012 The a ro'vedzBud et`becomes iHe Cit 's financial Ian for the next two fiscal ears.
Y P ( )� PP 9 Y p Y
BACKGROUND / DISCUSSION
This biennial Budget represents the work of many dedicated individuals who came togetherto participate in the budget
process. Since 2005, the City has used the Budgeting for Outcomes (BFO) process. BFO has a number of
advantages over traditional budgeting approaches and helps the City meet several important goals, including:
• Create clarity about the overall;bud-get proc se s for the-community;
• Allocate revenues to the highest priorities and outcomes�tzens�want and need;
• Understand the choices for funding programs and services; andl .(
• Emphasize staff accountabilitynd tio' and partnership.
Using this approach, City Council and staff worked in close collaboration over the past two months to build a financial
plan,based on revenue available,thatwill achieve service outcomeswhich matter most to the citizens and community.
This work has resulted in the development of the Final 2011-2012 Budget. The approval of the Appropriation
Ordinance on First Reading represents a major milestone in this process.
As the budget development process began in February 2010, City Council and staff met on several occasions to
outline goals and assumptions for developing the recommended budget. Council was actively engaged in the
development and approval of the seven key outcomes that have shaped this budget.
Result Area/Outcome /rDesclil tl ln— \
1 a Fort Collins providdes diverse parks, cultural, and recreational
Culture, Parks and Recreation amehi'ties:j U
Economic Health Fort Collins has a healthy, sustainable economy reflecting the
values of our unique community in a changing world.
Environmental Health Fort Collins promotes, protects and enhances a healthy and
sustainable environment.
High Performing Government Fort Collins exemplifies an efficient, innovative, transparent,
effective and collaborative city government.
,Fort Collins-fosters and supports a variety of quality
Neighborhood Livability / f neighborAgrods. .) ��
Safe Community Fort ddolli's p�des alsa fe place to live, work, learn and play.
Transportation Fort Collins provides for safe and reliable multi-modal travel to,
from, and throughout the City.
November 2, 2010 -2- ITEM 15
Budget Highlights
The 2011-12 Final Budget is a financial and service plan linked to the seven key outcomes and results that matter
most to our citizens. Some key highlights of the City Budget include:
1. The total Budget for all City funds for 2011 is$425.8 million and $426.4 million for 2012.
2. The Budget includes no tax increase.
3. Sales and Use tax revenue accounts for approximately 55%of the General Fund revenue collected annually.
This tax revenue is projected to increase by 1.5% in 2011 with a slightly larger increase in 2012 of 2.9%.
���� �1. � .
4. The projected Utility rate increases for 2011 to fund operat ons and maintain minimum reserves are a 9%
increase for Wastewater, a 6.5% increase for Electric,-a 3% increase for Water and no increase for
Stormwater. For 2012, the projected t d U\ility rate/ine eases are an 8% increase for Wastewater, a 6.23%
increase for Electric and no increases for'Water and-Stormwater.LJ
5. In 2011 the Budget will reduce classified, unclassified, and contractual City staff by a net of 13.28 full-time
equivalent (FTE) positions. The estimated reduction in hourly staff in 2011 is 25 FTE positions. For 2012,
the net change is an additional decrease of 5.75 FTE for classified, unclassified,and contractual City staff and
a decrease of approximately 10 hourly FTE.
Budget Assumptions
2010-_. _ ,_2011 ._ % Chan a 2012 % Change
Operating U 448 7 11371 X15.4% $386.9 1.9%
Debt , i 21.3 I 22:8 W 7.0% $23.2 1.8%
Capital $28.0- 25.0 I:I -10.7% $18.1 -27.6%
Total City Appropriations 498.0 $427.5 -14.2% $428.2 0.2%
Less Internal Service Funds 58.1 55.2 -5.0% 57.0 3.3%
Less Transfers to Other Funds - 95.4 39.9 -58.2% 38.5 -3.5%
Net City Budget $344.5 $332.4 -3.5% $332.7 0.1%
Note: This includes GID and URA which will be appropriated in separate ordinances.
Some of the key assumptions used in developing the Final Budget include:
1. Limited revenue growth for 2' ' 010 and 2011 J J
Despite the stabilization of the economic conditions in 2010,most experts agree thatthe recovery will continue
to occur gradually with sectors of'the economy enduring a lasting reduction in output and employment. The
2011-2012 Budget,therefore,employs conservative assumptions of growth that reflect a cautiously optimistic
outlook for the next two years.
2. Use of reserves
Approximately$4.2 million in General Fund reserves were used to balance the 2011 budget and $712,000
in the 2012 Budget. Reserves are used primarily for one-time projects.
3. Employee salary adjustments
�� :Mplovyye�es //
No merit based pay increases are budgeted for City m 2011, and any adjustments in 2012 (not
if
to exceed 2%) will be based�6n the market conditions. The budget also includes two unpaid furlough days
for all City employees in 2011� 7� U
November 2, 2010 -3- ITEM 15
4. Focus on City Council and community priorities and adjust to changing revenues
This Budget continues to place a high priority on the services identified by citizens and City Council as most
important. Due to significant decreases in revenue,this Budget includes reductions in several areas,including
parks and recreation and general government.
Adjustments to the City Manager's Recommended Budget
During previous Budget work sessions, Council did not provide any collective change in direction on the Budget.
Accordingly, there are no changes for First Reading on the City Manager's Recommended Budget. An additional
Budget discussion is scheduled for the November 9 Work Session.
� Conclusion rfinari-ciarinplanto . `\�The 2011-2012 Final Bud et is a sodeliver the services the citizens value most. Due to limited
resources, it does not, however, fully meet'the demand for services thatIcitizens need and expect. However, the
Budgeting for Outcomes process has enabled staff to focus and apply the resources available to key community
outcomes. Citizens will receive excellent value for their tax dollars.
Any final amendments agreed to by Council will be included in the Second Reading of the Budget Ordinance on
November 16, 2010. By Charter, the Budget must be adopted and appropriations for the 2011 fiscal year must be
adopted by November 30, 2010.
FINANCIAL/ ECONOMIC IMPACTS,\ / ram- /y
This Ordinance represents the annua;appropriation for fiscal year-2011, and adopts the total City budget for fiscal
year 2011 at$425.8 million and for fiscal year 201.2 at$426v{million. Thi'sOrdinance also sets the City mill levy at
9.797 mills, unchanged since 1991, for fiscal year 2011.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
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ORDINANCE NO . 1119 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
BEING THE ANNUAL APPROPRIATION ORDINANCE
RELATING TO THE ANNUAL APPROPRIATIONS
FOR THE FISCAL YEAR 2011 ; ADOPTING THE BUDGET
FOR THE FISCAL YEARS BEGINNING JANUARY 1 , 20119
AND ENDING DECEMBER 31 , 2012 ; AND FIXING THE MILL
LEVY FOR FISCAL YEAR 2011
WHEREAS , the City Manager has, prior to the first Monday in September, 2010, submitted
to the City Council a proposed budget for the next ensuing budget term, along with an explanatory
and complete financial plan for each fund of the City, 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 21 and October 5 , 2010, 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 object to 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 adopt the budget for the ensuing term by ordinance
and appropriate such sums of money as the Council deems necessary to defray all expenditures of
the City during the ensuing fiscal year; and
WHEREAS , on November 2 , 2010, the registered electors of the City approved a . 85 %
increase in the City ' s base sales and use tax rate, commencing on January 1 , 2011 and expiring in
2021 ; and
WHEREAS , in recognition of the increased revenues that will be generated by such voter-
approved measure, the City Manager' s 2011 -2012 Recommended Budget, as amended, appropriates
the additional revenue to be generated by the tax increase into a separate fund (the "ROF Funds")
and describes the basic plan for expending such revenues in accordance with the ballot language for
the measure ; and
WHEREAS , following adoption of the budget, the City Council intends to further clarify the
specific uses of the ROF Funds prior to the end of the current fiscal year, either by resolution or
ordinance ; and
WHEREAS , Article V, Section 5 , of the City Charter provides that in addition to adopting
the budget and appropriating the funds necessary to defray all expenditures of the City for the
ensuring fiscal year, the annual appropriation ordinance shall also fix the tax levy 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; and
WHEREAS , Article XII, Section 6, of the City Charter permits the City Council to fix,
establish, maintain, and provide for the collection of such rates, fees, or charges for water and
electricity, and for other utility services furnished by the City as will produce revenues sufficient
to pay into the General Fund in lieu of taxes on account of the City-owned utilities such amount as
may be established by City Council.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows :
Section 1 . Budget
a. That the City Council has reviewed the City Manager's 2011 -2012
Recommended Budget, a copy of which is on file with the office of the City Clerk,
and has approved certain amendments thereto .
b. That the City Manager ' s 2011 -2012 Recommended Budget, as
amended by the Council, 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 containcd in the adopted budget inny
be subsequelitly revised as deemed necessary by the eity Manager to reflect actual
that:
( 1 ) the comparative figures in the adopted budget may be
subsequently revised as deemed necessary by the City
Manager to reflect actual revenues and expenditures for the
fiscal year 2010 ; and
(2) the identification of certain items as being "unfunded" in the
adopted budget should not be construed as precluding the
City Council or the City Manager from subsequently funding
such offers through supplemental appropriations or transfers
of funds as authorized by Sections 9 and 10 of Article V of
the City Charter.
c. That the adopted budget, as amended, 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 , 2011 , and December 31 , 2012 , as Adopted by the
City Council on November 16, 2010 . "
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Section 2 . Appropriations . That there is hereby appropriated out of the revenues of the
City of Fort Collins, for the fiscal year beginning January 1 , 2011 , and ending December 31 , 2011 ,
the sum of FOUR HUNDRED TVvleffY FfLVE, FORTY TWO MILLION SEVEN HUNDRED
NfNETY SEVENTY THREE THOUSAND SEVe ONE HUNDRED ELEVE TWENTY FIVE
DOLLARS ($425,796,711 442 , 773 , 125) 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 $� 1021499 ,751
ENTERPRISE FUNDS
Golf $2 , 879 , 387
Light & Power
Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 , 907 , 193
Capital :
Electric Substations 315 ,000
Southwest Annexation Electric System 1 ,7559000
Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 , 070 , 000
Total Light & Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1061977, 193
Storm Drainage
Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 , 746 , 019
Capital :
Asset Management 839333
Canal Importation Basin 2 , 8409000
Drainage & Detention System 3701000
Stormwater Developer Repays 951000
Stormwater Master Planning 95 ,000
Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 ,483 ,333
Total Storm Drainage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14122%352
Wastewater
Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,073 ,294
Capital :
Asset Management 83 ,334
Collection System Replacement 192301000
Collection System Study 1701000
DWRF Improvements 1001000
Engineering Collection System Replacements 700,000
Flow Monitoring Stations 10000
North College Sewer 900,000
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Sludge Disposal Program 1001000
Water Reclamation Replacement 9751000
Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45358334
Total Wastewater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2214311628
Water
Operating Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 , 767,591
Capital :
Asset Management 831333
Cathodic Protection 1701000
Distribution System Replacement 975 ,000
Engineering Distribution System Replacements 1 ,910,000
Halligan Reservoir Enlargement 1901000
Water Production Replacement Program 111751000
Water Supply Development 100,000
Capital Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 , 603 , 333
Total Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305370,924
TOTAL ENTERPRISE FUNDS $ 176,8884484
INTERNAL SERVICE FUNDS
Benefits $219702 , 110
Data & Communications 71410,443
Equipment 914575218
Self Insurance 31247,228
Utility Customer Service & Administration 15 ,462 ,965
TOTAL INTERNAL SERVICE FUNDS $ 57,279,964
SPECIAL REVENUE FUNDS
Capital Improvement Expansion Fund $ 6199354
Capital Leasing Corporation Fund 51290,795
Cemeteries 587,558
Cultural Services 39223 ,584
Debt Service 3595820
General Employees' Retirement 31043 ,926
Natural Areas Fund 89447,731
Perpetual Care 45 ,395
Recreation 6 , -2 61665 ,590
Resourcing Our Future Fund 18 ,700,000
Sales and Use Tax 11 ,098 ,000
Street Oversizing 29978 ,079
Timberline/Prospect SID 1065885
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Transit Services 919899823
Transportation Services 2454422 ,387
TOTAL SPECIAL REVENUE & DEBT SERVICE FUNDS 955578 ,927
CAPITAL IMPROVEMENT FUNDS
General City Capital
City Bridge Program $ 30000
1-25 & SH 392 Interchange and Improvements 21640,000
Police Facility 750,000
Railroad Crossing Replacement I W000
TOTAL GENERAL CITY CAPITAL $ 3 , 790 ,000
1 /4 Cent - Building on Basics
Administrative Charge $ 34,914
Bicycle Program Plan Implementation 125 ,000
Museum/Discovery Science Center 115 , 113
North College Avenue Improvements 41275 ,671
Pedestrian Plan and ADA Improvements 300,000
TOTAL 1 /4 CENT - BUILDING ON BASICS $ 49850,698
Conservation Trust Fund
Administration $ 198 ,918
Trail Acquisition / Development 3509000
Open Space Acquisition 10,000
Fossil Creek Trail 509000
Transfer to General Fund-Parks Maintenance 923 ,704
TOTAL CONSERVATION TRUST FUND $ 195329622
Neighborhood Parkland Fund
Administration $ 187 ,679
Equipment Replacement 151000
New Park Site Acquisition 150,000
TOTAL NEIGHBORHOOD PARKLAND FUND $ 352,679
TOTAL CITY FUNDS $425179019ft 442,773 , 125
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Section 3 . Mill Levy
a. That the 2011 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 , 2010, 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 2nd day of
November, A.D . 2010, and to be presented for final passage on the 16th day of November, A .D . 2010 .
Mayor
ATTEST :
City Clerk
Passed and adopted on final reading on the 16th day of November, A.D . 2010 .
Mayor
ATTEST :
Chief Deputy City Clerk
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