HomeMy WebLinkAboutMemo - Read Before Packet - 09/10/2024 - Memorandum from Jacob Castillo re: 2025-2026 City Manager’s Recommended Budget – Our Climate FutureEnvironmental Sustainability
222 Laporte Ave
PO Box 580, Fort Collins, CO 80522
970-221-6600
recycling@fcgov.com
CC: Amy King, Manager, Environmental Sustainability
MEMORANDUM
Date: September 10, 2024
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
From: Jacob Castillo, Chief Sustainability Officer
Subject: 2025-2026 City Manager’s Recommended Budget – Our Climate Future
BOTTOM LINE
The purpose of this memo is to summarize potential impacts from the City Manager’s 2025-26
Recommended Budget on Council-adopted climate goals. While the impacts highlighted below
do not represent the totality of work the City is undertaking to address the climate crisis, it does
look at potential new investments and their associated impacts on greenhouse gas (GHG)
emissions reduction. Additionally, as the City strives to maximize its ability to achieve its 2050
goal of carbon neutrality, staff acknowledge that addressing the root causes of climate change
requires transformational shifts by the organization and community, in conjunction with regional
and global changes.
Key Takeaways
• The 2022 Community GHG Inventory confirmed a 23% reduction from the 2005
baseline, and staff forecast a 46% reduction by 2026 and a 70% reduction by 2030, a
trajectory that would bring the City close to hitting its goals.
• Staff estimate a reduction of 125,530 metric tons of CO2 equivalent (MTCO2e) over the
lifetime of the enhancements funded by the 2050 Tax (“lifetime” varies from 2-25 years,
depending on the project). For reference, 100 MTCO2e is approximately equivalent to
the emissions from 13 single family homes’ energy usage in one year (source: EPA
Equivalencies Calculator).
Docusign Envelope ID: 6CEE5487-AF2C-41CA-AD66-5E761CEE8229
• The investment in these 11 projects total $7,229,560 over the two-year period:
$4,581,707 and $2,647,853, in 2025 and 2026, respectively.
• Included in this budget are three FTE to advance Our Climate Future (OCF).
• These 2050 Tax enhancement offers primarily support the Building and Transportation
Pathways identified in Our Climate Future’s Greenhouse Gas Pathways (Figure 1
below).
• Staff recommend reserving a portion of the climate portion of the 2050 Tax so that it can
be strategically allocated in the 2026 budget revision process.
2025-26 City Manager’s Recommended Budget
The 11 offers included in the City Managers’ Recommended Budget for use of the 2050 Tax will
have GHG, climate resilience, and equity impacts. The attached table includes these anticipated
impacts by offer, with quantified GHG reductions where possible, and classifications of high,
medium, low, or none for equity and resilience benefits.
Together, these 11 enhancement offers; the 2050 Tax investments in our local and regional
public transit system; ongoing energy, transportation, and environmental services offers; and
five additional enhancement offers funded by other sources (noted in OCF Impacts Attachment)
contribute to fulfilling OCF’s GHG Pathways to the 2030 interim goal and maximizing the
community’s ability to reach the 2050 goal.
The 2025-26 investments fund many initiatives that keep the Pathways on track, but are not
necessarily funding additional initiatives to accelerate toward interim goals at this time.
However, additional investments and opportunities for leveraging funds for maximum impact are
being explored and will be presented in the strategic funding plan in early 2025. The 2050 Tax
investments in the City Manager’s Recommended Budget would primarily contribute to the
Buildings and Transportation Pathways. The Pathways include actions that do not already have
funding secured, and therefore the 2050 Tax is providing a portion of funding that will be
necessary to achieve all the outlined actions. For example, Offer 19.7, the Shift Your Ride
Docusign Envelope ID: 6CEE5487-AF2C-41CA-AD66-5E761CEE8229
Program, funds the already-identified Next Move of implementation of a Transportation Demand
Management program.
The Pathways are not guaranteed, rather they represent reductions that are possible based on
the Next Moves in Our Climate Future with significant resources, collaboration, and capacity put
towards them. The 2050 Tax will be one tool to achieve them, and provides more confidence
that they will be possible.
Docusign Envelope ID: 6CEE5487-AF2C-41CA-AD66-5E761CEE8229
Figure 1. Our Climate Future GHG Pathways to the 2030 interim goal.
Docusign Envelope ID: 6CEE5487-AF2C-41CA-AD66-5E761CEE8229
9/8/2024
Please note -
Offers in bold text are those recommended to be funded by the 2050 Tax - OCF Funding; those in gray have been recommended to be funded by other sources.
In these calculations, "lifetime" varies from 2-25 years , depending on the project.
OCF staff define "foundational" as a necessary next step for future GHG reduction.
100 MTCO2e is approx. equivalent to the emissions generated from 13 single-family homes' energy use in one year (EPA Equivalencies Calculator)Key
high confidence
Total - 2025-26 2050 Tax Investments 4,581,707$ 2,647,853$ 125,530 Lifetime MTCO2e medium confidence
Total - 2025-26 Enhancement Offers 13,095,078$ 4,087,853$ 163,395 Lifetime MTCO2e low confidence
Offer # Offer Name 2025 Funding 2026 Funding Lifetime GHG
Impacts
(MTCO2e)
Description of Impact Overall
Equity
Overall
Resilience
Waste
Impacts
Notes
7.24 Utilities Light & Power: Strategic
Electrification Design Assistance
Programs to support affordable housing
350,000$ 400,000$ 51,870 Provides stock plans for energy
efficient, affordable housing
developments
Medium Low None
7.25 Utilities Light & Power: Epic Loan
Program Funding
550,000$ 500,000$ 850 Foundational / needed next
step for increasing efficiency
of buildings (reducing
electricity and natural gas use)
Medium Medium None
18.13 Mini-Grant Expansion to Address the
Climate/Housing Nexus in Affordable
Housing Units
200,000$ 200,000$ 2,450 Supports residents in
increasing energy efficiency
in their homes (reducing
electricity and/or natural gas
use)
High High None
19.1 Active Modes Plan Infrastructure
Implementation
1,680,000$ -$ 24,800 Provides infrastructure for safe
and accessible active mode
travel, resulting in VMT and
fuel use reductions
Low Low None Offer is supportive of this GHG
reduction; though will only be
achieved with full implementation
Our Climate Future Review: 2050 Tax - OCF Funding
Docusign Envelope ID: 6CEE5487-AF2C-41CA-AD66-5E761CEE8229
19.7 Shift Your Ride Program 150,000$ 150,000$ 45,430 Provides programs and support
for community members
transitioning trips away from
single-occupancy vehicles,
resulting in VMT and fuel use
reductions
Medium Low None
42.4 Air Quality Monitoring Fund 100,000$ 100,000$ N/A Continues regional air quality
monitoring foundational to
developing successful
emissions reduction strategies
High High None Offer's primary impacts are on
non-GHG air pollution; though
often GHG and non-GHG
emissions have the same
sources
42.6 1.0 FTE Enhancing The Healthy Homes
Program
242,780$ 264,733$ 100 Foundational for improving
indoor air quality and
supporting households in
navigating climate action
programs
High Medium None
42.8 2.0 FTE Investing 2050 Tax Revenue to
Accelerate Our Climate Future
565,307$ 619,329$ foundational Foundational for accelerating
and coordinating climate
action across the City and
community
Medium Low foundational
67.1 NoCoBiz Connect (NBC) - Sustainable
Business Program (Equitable Business
Support and Recognition)
149,900$ 75,000$ foundational Supports local businesses in
accessing environmental
efficiency and conservation
programs
High Low Low
71.1 Parks Lawn and Garden Equipment
Replacement
25,000$ 25,000$ ~100 - 200 Reduces fuel use and
therefore reduces GHG and
non-GHG air pollutants
Low Low None
73.1 1.5 FTE - 1.0 Urban Forestry Planner, .5
Hourly, and Tree Infrastructure
Replacement
568,720$ 313,791$ 30 Foundational for ongoing and
new carbon sequestration
from the public canopy
Low Medium Low Calculation only represents
sequestration potential from
newly planted trees identified in
this offer. Full tree canopy
supports ~2,800 MTCO2e
sequestration and is dependent
upon Offers 59.14, 59.15
Docusign Envelope ID: 6CEE5487-AF2C-41CA-AD66-5E761CEE8229
7.23 Utilities Light & Power: Virtual Power Plant
Development and Enrollment
1,215,000$ 1,315,000$ 30,280 Supports installation of more
local renewables and battery
storage, to enable alignment
of electricity consumption with
renewable availability
None High None
7.6 Utilities: Light & Power - Electric Vehicle
Monitoring and Management Demonstration
75,000$ 75,000$ 640 Increases electric vehicles
and chargers within the
community for use as a virtual
power plant
None Medium None
16.14 Building HVAC Electrification and Efficiency
Replacements
6,500,000$ -$ 3,845 Increases energy efficiency
of City buildings
None None None
20.13 Power Trail at Harmony Road Grade-
Separated Crossing
673,371$ -$ 3,100 Provides infrastructure for safe
and accessible active mode
travel, resulting in VMT and
fuel use reductions
Low Low None
42.9 Low Income Offset - Contract for Waste 50,000$ 50,000$ foundational Foundational for organic
waste diversion
High None Low
Total - 2025-26 2050 Tax Investments 4,581,707$ 2,647,853$ 125,530 Lifetime MTCO2e
Total - 2025-26 Enhancement Offers 13,095,078$ 4,087,853$ 163,395 Lifetime MTCO2e
Please note - Key
Offers in bold text are those recommended to be funded by the 2050 Tax - OCF Funding; those in gray have been recommended to be funded by other sources. high confidence
In these calculations, "lifetime" varies from 2-25 years , depending on the project.medium confidence
OCF staff define "foundational" as a necessary next step for future GHG reduction.low confidence
100 MTCO2e is approx. equivalent to the emissions generated from 13 single-family homes' energy use in one year (EPA Equivalencies Calculator)
Docusign Envelope ID: 6CEE5487-AF2C-41CA-AD66-5E761CEE8229