HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/13/2020 - 2020 RECOMMENDED BUDGET - WORK SESSION #3DATE:
STAFF:
October 13, 2020
Darin Atteberry, City Manager
Travis Storin, Interim Chief Finance Officer
Lawrence Pollack, Budget Director
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
2021 Recommended Budget - Work Session #3.
EXECUTIVE SUMMARY
The purpose of this work session is to review the City Manager’s 2021 Recommended Budget that was delivered
to City Council and the City Clerk on September 1, 2020 pursuant to provisions of Article V, Section 2 of the City
Charter. This discussion is a continuation of the overall budget discussion and Outcome review items discussed
at the September 8 and September 22 Work Sessions. Two Public Hearings to gather input from the community
about the 2021 Budget have also been completed.
The Recommended Budget is aligned with the City’s adopted 2020 Strategic Plan, the Council Priorities
Dashboard and community priorities. At the October 13, 2020 Work Session, staff will be looking for guidance on
the changes to the City Manager’s Recommended Budget that Council would like to have incorporated into 1st
Reading on November 4.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. What clarifying questions does Council have on any of the Offers in the seven Outcomes previously
discussed?
2. What additional changes does Council want incorporated into First Reading of the 2021 Budget?
BACKGROUND / DISCUSSION
This budget would have typically been created using the City’s priority-based Budgeting for Outcomes (BFO)
process, which has been used since 2005. Given the uncertainty caused by the global pandemic, it was
determined that modifications needed to be made to our process and timeline. As part of those modifications,
Council approved Ordinance No. 067-2020 to temporarily suspend City Code to allow the adoption of a one-year
budget and revise the City’s budgeting process.
There are three primary components of these modifications:
1. For 2021, Council will consider and adopt a one-year budget instead of the usual two-year (biennial) budget.
This practice will continue for the City’s 2022 budget. Thereafter, the City will return to a two-year budget and
the standard cadence of elections, strategic planning and budgeting Councilmembers, the community, and
staff have come to expect.
2. The budgeting process became more tactical, as we were not able to utilize the BFO Teams who play such
an important role in the BFO process through the evaluation of budget requests (Offers) and generation of
Offer rankings.
3. Due to the delays in the budget process while staff addressed the immediate 2020 public health and fiscal
implications of the pandemic, we were not able to conduct a standard public engagement process prior to the
delivery of this recommended budget. Outreach work is ongoing and will continue into the fall to help inform
Council’s decisions related to the adoption of the budget.
While significantly modified, key components of our budgeting process still remain, including budget requests that
are based on the specific programs and services provided to the community. This is a key aspect of Budgeting
for Outcomes compared to traditional budgeting practices. Budget requests still specify direct linkage to at least
October 13, 2020 Page 2
one strategic objective in the City’s adopted 2020 Strategic Plan, as well as include performance measures
directly related to the proposed program/service.
Changes to Offers originally included in the City Manager’s Recommended Budget
• Based on Council dialogue during the 2021 budget work sessions on September 8 and 22, staff heard
requests for funding the following two Offers:
27.9 - Reduction: Scaled Down Climate Commitment (City- and Community-Led Climate Engagement) – A
proposed reduction of $28,465
27.10 - Reduction: Scaled Down Air Quality Programming: Engagement & Monitoring Equipment – A proposed
reduction of $47,959
Staff now proposes these two Offers are not included in the 2021 Budget. Instead, the equivalent amount of
$62,959 in General Fund reserves will be used to restore the funding originally proposed to be reduced in
these two Offers.
• Staff also heard a request to provide alternatives for Offer 43.4 - Redeploy: Conservation Trust Trail
Construction to Park Maintenance. Currently, that Offer proposes a temporary shift of $515k from recreation
trail building to park maintenance. Alternatives are provided in the presentation and will be discussed during
the work session.
• Additionally, the following changes are proposed:
o At the request of Poudre Fire Authority (PFA) the amount of $20k of PFA funding will be included in ‘Offer
18.26 - Redeploy: Police Campus West and Bike Patrol to Homelessness Coordinator (1.0 FTE), Street
Outreach and Restorative Justice.’ The PFA funding will go towards the Homelessness Coordinator position
for a collaborative, interagency approach. This will enable 20K of funding from Police Services to further
contribute to Neighborhood Livability and Social Health objectives and other 2021 budget initiatives. This
change also reduces the direct City funding of PFA in ‘Offer 73.1 - Poudre Fire Operation, Maintenance &
Capital (General Fund)’ by an equivalent $20k.
o The 2021 Budget for the Downtown Development Authority (DDA) was approved by its Board of Directors
on September 10, 2020. ‘Offer 74.1 - DDA Operating and Capital Budget’ has been updated to reflect the
final DDA 2021 Budget, as approved by the Board.
Council Budget Meetings
Council has a series of work sessions scheduled in September and October to discuss the proposed 2021
Budget. These work sessions have included staff presentations regarding specific Outcomes, followed by an
opportunity for questions and discussion. This is the final work session and it will include Council discussion
regarding overall priorities, policy issues and guidance on what changes Council wants included in First Reading
of the 2021 Budget. Key dates for remaining Council discussions and Public Hearings are as follows:
Meeting Date Topic
October 13, 2020 Work Session General Discussion – Final Council Direction
November 4, 2020 Regular Meeting
(Wednesday)
First Reading of the 2021 Budget and the 2021
Appropriation Ordinance
November 17, 2020 Regular Meeting Second Reading of the 2021 Budget and the 2021
Appropriation Ordinance
ATTACHMENTS
1. Powerpoint Presentation (PDF)
1
2021 Budget Review
City Council Work Session –October 13, 2020
Attachment #1
2020 Council Budget Meetings
September 8th Work Session •Culture and Recreation
•Economic Health
•Environmental Health
•Tr ansportation
September 22nd Work Session •Neighborhood Livability and Social Health
•Safe Community
•High Performing Government
September 15th Council Meeting •Budget Public Hearing #1 of 2
October 13th Work Session
•Budget Public Hearing #2 of 2October 6th Council Meeting
•General Discussion –Final Council Direction
Nov. 4th (Wed) Council Meeting •First Reading
November 17th Council Meeting •Second Reading
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We are hereCompleted
Summary of Public Engagement
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•Discussion and Dialogue
–Public online forums
•Tw o town hall meetings
•Tw o Councilmember Listening Sessions
–Boards and Commissions Engagement
–Tw o Public Hearings
•Online/Digital Engagement
–2,800 page visits on ourcity.fcgov.com
–Social Media: +32,000 reached on Facebook
–Social Media: +31,000 Tw itter impressions
Public Engagement Key Themes
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•Accessibility of the budget document and 2020 public review timeline
•Investing in equity
–Creation of a Legal Defense Fund
•Police funding and salary increases for collective bargaining employees
•Maintain existing funding levels for Climate Commitment and Air Quality
•Concern about proposed reductions for Transit Services
Offer Changes for 1st Reading
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•The following Reduction Offers will not be included in 1st Reading;
General Fund reserves are instead proposed to provide the $63k offset
27.9 -Reduction: Scaled Down Climate Commitment (City-and Community-Led
Climate Engagement)
27.10 -Reduction: Scaled Down Air Quality Programming: Engagement & Monitoring
Equipment
•Poudre Fire Authority will be contributing $20k towards the
Homelessness Coordinator position (Offer 18.26)
•The Downtown Development Authority (DDA) Offer 74.1 has been
updated to reflect the 2021 Budget approved by the DDA Board of
Directors on September 10, 2020
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Conservation Trust for Parks O&M
per Recommended Budget
•Conservation Trust / Lottery (CTF) revenues are approximately $1.5M / yr.
•Proposed budget utilizes $915K toward Parks maintenance
•Increase of $515K over the 2020 budget
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Conservation Trust Background
•City receives per capita share of CTF’s 40% of overall lottery proceeds
•Charter states expenditures to be made in accordance with state statutes
•1983 Council Resolution recognizes an intention for “…1) the acquisition
and development of Open Space and Tr ails, and 2) any other project
deemed appropriate by City Council
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Conservation Trust History
Ye ar
Con Trust
Re ve nue
Funds for Park
Ma inte na nce
Funds fo r Tra il
Projects/Adm in
2010 1,217,980 730,146 487,834
2011 1,289,033 730,146 558,887
2012 1,464,407 730,146 734,261
2013 1,585,140 735,154 849,986
2014 1,455,921 734,543 721,378
2015 1,484,679 0 1,484,679
2016 1,730,411 0 1,730,411
2017 1,627,324 0 1,627,324
2018 1,708,592 0 1,708,592
2019 1,551,422 400,000 1,151,422
2020 1,500,000 400,000 1,100,000
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Alternatives to using
Conservation Trust for Parks O&M
•Staff-identified funding alternatives include:
1.Additional reductions in Parks budget
2.Additional use of General Fund reserves
3.Reconfigure General Fund / Parking Fund revenue allocations
4.Accepting previously rejected reduction offers
5.Original staff recommendation
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1) Additional Parks Reductions
•Close Community Park restrooms during the winter with no port-o-let's: $24,000
•Eliminate port-o-let ’s during the winter in Neighborhood Parks: $10,000
•Reduce fertilizer application in parks: $50,000
•Delay playground repairs: $12,000
•Pa ck In-Pa ck Out trash on the Trails system: $40,000
•Ke ep water features closed at Fossil Creek and Spring Canyon: $30,000
•Reduce 2021 Lifecycle: $150,000
•Elimination of the 4th of July Celebration in 2021: $67,000
•Reduce Irrigation Evaporative Tra nspiration to 80%: $18,000
•Reduce botanical care throughout system: $100,000
Difficult to achieve $515,000 in cuts without noticeable public impact
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2) Additional use of General Fund reserves
•Currently proposed budget utilizes $6.7M of General Fund Reserves,
including $357K of the Council 60-day emergency policy minimum
•Additional $515K in reserve draws would place General Fund $872K
below the Council policy minimum ($26M)
•Added pressure on 2022 challenge –Recommended Budget funds
$13.2M of ongoing expenses with reserves
Reserve challenges are a primary driver of staff recommendation
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3) Reconfigure General Fund /
Parking Revenue Allocations
•Offer 45.1 –Parking Services utilizes $406K in General Fund revenues
•Option to utilize Parking Fund reserves instead
•Parking Fund not well-positioned –expected to have $0 fund balance by
end of 2021
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4) Previously rejected reduction offers
Previously considered reduction offers with eligible funding sources include:
#Of fer Amount
4.9 El iminate Ope n Data P ro gram 74,880$
46.8 Scal e Down Si gn s and Pave me nt Markings 64,151$
46.7 Pause Neighborhood Traf fic Mi ti gati on Pro gram 150,000$
27.12 Ti mbe rl ine Recycling Ce nte r F ee 33,000$
44.13 Addi ti onal scale down i n Transfort Se rv ice 836,076$
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Alternatives to using
Conservation Trust for Parks O&M
•Staff-identified funding alternatives include:
1.Additional reductions in Parks budget
2.Additional use of General Fund reserves
3.Reconfigure General Fund / Parking Fund revenue allocations
4.Accepting previously rejected reduction offers
5.Original staff recommendation
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1.What clarifying questions does City Council have on any of the
Offers in the seven Outcomes discussed in the previous budget
work sessions?
2.What additional changes does Council have interest in including in
1st reading of the 2021 Budget?
2020 Council Budget Meetings
September 8th Work Session •Culture and Recreation
•Economic Health
•Environmental Health
•Tr ansportation
September 22nd Work Session •Neighborhood Livability and Social Health
•Safe Community
•High Performing Government
September 15th Council Meeting •Budget Public Hearing #1 of 2
October 13th Work Session
•Budget Public Hearing #2 of 2October 6th Council Meeting
•General Discussion –Final Council Direction
Nov. 4th (Wed) Council Meeting •First Reading
November 17th Council Meeting •Second Reading
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We are hereCompleted