HomeMy WebLinkAboutMemo - Mail Packet - 09/10/2024 - Memorandum from Dean Klingner re: August 27, 2024 Work Session Summary, parks and recreation 2050 Tax StrategyParks and Recreation
215 N Mason St.
PO Box 580, Fort Collins, CO 80522
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WORK SESSION MEMORANDUM
Date: September 3rd, 2024
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
From: Dean Klingner, Community Services Director
Subject: August 27th, 2024 Work Session Summary, Parks and Recreation 2050 Tax Strategy
BOTTOM LINE
The purpose of this memo is to document the summary of discussions during the August 27th,
2024 Work Session, Parks and Recreation 2050 tax strategy. Six Councilmembers present and
the Mayor participated remotely.
DISCUSSION SUMMARY
The Councilmember discussion is summarized as follows:
Councilmembers expressed general support for the 80/20% percentage proposed for the
split of life-of-tax funds between asset management and capital for new and replacement
recreation facilities and pool, respectively.
Councilmembers asked for more information about what was included in the 80% asset
management category and for more information about why this amount was proposed
and what the impact on asset condition would be. See attached information below.
Councilmembers expressed the perspective that they hoped this tax could be used to
maintain assets beyond the life of the tax. Staff acknowledged that desire and
responded that ongoing asset management funding will likely always be necessary. The
City will continue its practice of considering and working to reduce long-term operating
and maintenance needs during construction.
NEXT STEPS
Council will continue to see updates on the Southeast Community Center as design
development proceeds with current target of bringing a scope/schedule/budget approval to
Council in the 1st or 2nd quarter of 2025.
Council will also see the 2025 Parks and Recreation tax strategy play out in the budget process
and the development of the Community Capital Improvement Program (CCIP) ¼-cent renewal
project list.
Docusign Envelope ID: 87F0E170-FDA1-4599-8048-0791A1BDA593
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FOLLOW-UP ITEMS
Staff revisited assumptions based on existing analysis to determine that a split of 80% of the
dedicated Parks and Recreation proceeds from the 2050 tax should be sufficient to resource the
Parks and Recreation asset management needs.
During the sustainable funding conversations, the following anticipated budget gaps were
identified:
Docusign Envelope ID: 87F0E170-FDA1-4599-8048-0791A1BDA593
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For both Parks and Recreation, these gaps were projected as the funding needs over the next
20 years. An approximate gap of $110M for Parks and $55M for Recreation combine for a total
anticipated gap of $165M. Over the 20 years in the projections, that represents an average
annual need of $8.25M per year. With collection of $10-11M per year anticipated, it is expected
the 80% allocation should be sufficient to resource the ongoing asset replacement needs.
Docusign Envelope ID: 87F0E170-FDA1-4599-8048-0791A1BDA593