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HomeMy WebLinkAboutMemo - Mail Packet - 10/25/2022 - Memorandum From Travis Storin Re: Information On Offers 33.10 And 20.9 For First Reading Of The 2023 BudgetFinancial Services 215 N Mason Street, 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6770 970.221.6782 - fax fcgov.com/finance MEMORANDUM DATE: October 20, 2022 TO: Mayor and City Councilmembers THRU: Kelly DiMartino, City Manager FROM: Travis Storin, CFO RE: Information on Offers 33.10 and 20.9 for First Reading of the 2023 Budget Bottom Line The purpose of this memo is to provide the background information pertaining to two currently unfunded budget offers for the 2023-2024 budget: Offer 20.9, Fort Collins Public Access - Video Production Assistance Programs & Community Video Production Training and Event Coverage Offer 33.10, ARPA - Reskill, Upskill, New Skill (RUN) Training Program Support Staff will seek clarity from Council at the first reading of the 2023 Budget Ordinance on November 1. Background Offer 20.9, Fort Collins Public Access - Video Production Assistance Programs & Community Video Production Training and Event Coverage This offer was submitted at the request of FC Public Media for $30,000 per year. The City maintains a contract with the non-profit media entity that commits to remitting a portion of the Public, Educational, and Government fees (PEG fees) collected under a cable franchise agreement. At the direction of Council in the 2017-2018 budget cycle, the City did make supplemental contributions to FC Public Media at $30,000 per year with the understanding that it was on a one-time basis. The contractual agreement was amended such that there are no other capital or operating contributions expected or required from the City. Staff is concerned that a direct assignment of funds would circumvent existing competitive processes for non-profit funding and establish a new policy precedent. Although at the 10/11 work session staff understood that Council indicated a desire to fund this offer, staff is now providing additional context that was not available at the work session about the City's agreement with this non-profit organization. Staff would like to re-confirm Council direction after providing this information. 2 Offer 33.10, ARPA - Reskill, Upskill, New Skill (RUN) Training Program Support This offer was submitted for ARPA funding at $750,000 per year. The County and State have each previously offered RUN programs at $1.6M and $25M, respectively. Information on the State program: https://cwdc.colorado.gov/stimulus-policy/reskilling- upskilling-and-next-skilling-workers-funding Information on the County program: https://www.larimer.gov/ewd/workforce-innovation-grant- funding This offer can be scaled to as low as $500,000 per year including a contractual FTE at $70,000- $80,000 per year. Below that amount, the funding would likely not be sufficient to run an efficient program for which the benefit outweighs the cost. Staff had originally recommended this offer not be funded based on prioritization of other ARPA-funded offers given that other governmental agencies had offered similar programming. Specifically, Offer 33.7 Multicultural Business and Entrepreneurship Center and Portal was funded at a similar dollar amount based on early success of the program and that the City is the only agency staff is aware of providing this type of programming. Staff seeks clarity from Council on whether a majority of councilmembers wish for this offer to be funded. As the 2023-2024 currently utilizes the full amount of the remaining $15.8M of ARPA SLRF award, funding this offer would necessitate either defunding an existing ARPA offer, or utilizing General Fund Reserves.