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HomeMy WebLinkAboutMemo - Mail Packet - 5/9/2023 - Memorandum From Ginny Sawyer And Travis Storin Re: Work Session Summary – April 25, 2023 Sustainable Funding City Manager’s Office City Hall 300 LaPorte Ave. PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com MEMORANDOM Date: April 28, 2023 To: Mayor and City Council From: Ginny Sawyer, Policy and Project Manager Travis Storin, Chief Financial Officer Thru: Kelly DiMartino, City Manager RE: Work Session Summary – April 25, 2023 Sustainable Funding Mayor Arndt, Mayor Pro Tem Francis and Councilmembers Canonico, Pignataro, Gutowsky, and Ohlson were present. Staff last presented to the full Council in December 2022. In 2023, the Council Finance Committee (CFC) has discussed the Sustainable Funding topic at their February and March meetings. Staff, CFC, and the full Council have worked over the last year to refine both the funding needs, including more specific details on how additional funding would be utilized, and funding mechanisms (sources.) The funding needs have also been more clearly defined by distinguishing Park and Recreation needs as asset replacement and by categorizing Transit, Housing, and Climate needs within the Our Climate Future Big Moves and utilizing a “Climate Umbrella” approach. This work session focused on the refined uses and the funding mechanisms that have garnered the most interest and viability. Since December 2022, and at the request of CFC, a Franchise Fee and a Utility Occupation Tax have been analyzed and offered for consideration. The potential of a dedicated tax has been added and additional information on a Large Emitter Tax has also been included. Discussion included:  Overall support for continuing to consider a new dedicated (renewable) tax, a property tax increase, a substance tax (in some combination) and the Franchise Fee increase.  No support for pursuing the Utility Occupation Tax.  Mixed feedback regarding the Large Emitter Tax. Staff will continue to include the Large Emitter Tax option alongside future scenarios. DocuSign Envelope ID: F4CA5564-ADFD-44E9-BBD2-11542117BD7C  Acknowledgement that achieving the full funding gap of $46M is unlikely. Knowing that there will be on-going gaps, there was discussion regarding how to prioritize work and how that gap would impact timelines on meeting masterplan or action plan goals. Staff confirmed that the budget process is the strongest and most transparent means of prioritizing work across the organization.  Conversation regarding ballot strategy and number of initiatives including consideration of past voter support.  Staff confirmed that Capital Expansion Fee work is on track for update/completion this year and that infill and additional park funding will be included in the analysis. Considerations going forward:  What is the recommended sequencing of ballot initiatives over what time period?  What needs should be tied to what sources and how do we best maintain some flexibility to be able to leverage unforeseen opportunities?  What specifically should be brought forward in November 2023? Next Steps:  Meet with full Council at a work session on June 13, 2023.  If initiatives move forward, consider ballot language on July 25, 2023.  Refer measures to ballot in August 2023. Follow-up:  Share any known information on climate footprint of both alcohol and marijuana production. DocuSign Envelope ID: F4CA5564-ADFD-44E9-BBD2-11542117BD7C