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HomeMy WebLinkAboutMemo - Mail Packet - 2/27/2024 - Memorandum From Travis Storin And Ginny Sawyer Re: Work Session Summary, February 13, 2024 – Tax Renewals 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 WORK SESSION MEMORANDUM Date: February 20, 2024 To: Mayor and City Councilmembers Through: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager From: Travis Storin, Chief Financial Officer Ginny Sawyer, Project & Policy Manager Subject: Work Session Summery, February 13, 2024 – Tax Renewals BOTTOM LINE The purpose of this memo is to document the summary of discussions during the February 13, 2024 Work Session. All Councilmembers were present with Councilmember Olson attending remotely. Staff provided context on current tax rates, historical dedicated sales tax measures, traditional uses of both the Street Maintenance Program (SMP) ¼- cent and the Community Capital Improvement (CCIP) ¼- cent tax. A timeline was outlined that included work sessions with the full Council in February, April, June, and July with Council Finance Committee meetings scheduled in March and May. It was noted that ballot adoption is scheduled for August 20. Referring these renewals in 2024 allows an additional ballot cycle prior to expiration should either not be renewed. DISCUSSION SUMMARY Main discussion points and questions included: • Could we/should we consider running the SMP tax for a longer term. General consensus was that this may make sense since road maintenance is an on-going need. A gap in funding was noted but extending the term of the tax may be more acceptable than increasing the amount of the tax. • Continued encouragement to leverage our dollars as much as possible against federal grants and other monies. • Clarification was provided on what may fall under the new 2050 tax as opposed to the CCIP tax. Staff will pay attention to these as the project list evolves. • Question as to whether Council Priorities could be funded through these taxes: yes, Council Priorities can be put forward in the CCIP package. Moreover, it is important to note that these renewals would not be in place until 2026 should they be renewed. • Questions and suggestions were made regarding annexed areas of the City and possible deficiencies in transportation infrastructure that might be addressed. DocuSign Envelope ID: 44544D9B-5557-44C4-BC14-5CF6C4365CDD 2 NEXT STEPS There was support for the engagement and timeline presented. Council Finance Committee will continue the conversation in March and the item will be back to the full Council on April 23, 2024. FOLLOW-UP ITEMS There was a question regarding annexed streets that are below City standards. The cost estimates provided in the Tax Renewal presentation to maintain a Level of Service B Pavement Condition do not include anticipated maintenance costs of annexed streets. Staff is preparing a more detailed memo about the maintenance level and condition of annexed streets. This memo will include the policy regarding accepting annexed roads for City maintenance. There was a request for a memo to outline lessons learned from previous tax initiatives. Staff will provide this in the next few weeks. DocuSign Envelope ID: 44544D9B-5557-44C4-BC14-5CF6C4365CDD