HomeMy WebLinkAboutMemo - Mail Packet - 10/22/2024 - Memorandum from Lawrence Pollack re Additional Follow-up to Councilmember Questions on the 2025-2026 Budget
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Financial Services
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M E M O R A N D U M
Date: October 17, 2024
To: Mayor Arndt and City Councilmembers
Through: Kelly DiMartino, City Manager
Travis Storin, Chief Financial Officer
From: Lawrence Pollack, Budget Director
Re: Additional follow-up to Councilmember questions on the 2025-2026 Budget
This memo contains the additional responses to Councilmember questions from the 3rd
work session on the 2025-2026 Budget.
Neighborhood and Community Vitality
1) Question from Mayor Pro Tem Francis: How are we going to achieve the City goal of
185 new affordable housing units per year with the inflation that has been realized, but
without increasing our investments in this area?
Response from Sue Beck-Ferkiss (Social Sustainability):
The City’s Proposition 123 goal is 555 homes total for 3 years (average of 185 annually),
which is less than the 282 goal from the Housing Strategic Plan and more than the
typical annual average of approximately 120 units. City funding, often less than 10% of
the cost to develop, must always be leveraged to develop affordable housing. Less City
investment will require projects to secure more gap financing from other sources. The
City continues to engage in partnerships and explore using the Urban Renewal Authority
and Metropolitan District tools and the potential new Community Capital Improvement
Program to support the development of affordable housing.
The rules for counting units for Proposition 123 have not been finalized, especially for
counting naturally occurring affordable housing. We may be able to achieve our goal if
all the units in the pipeline count towards the total, in addition to the homes that are
currently under construction (134 units) and those that were delivered in 2024 (156).
Additionally, there are two projects seeking tax credits right now with a total of 337 units,
including 264 homes in a Metropolitan District. More affordable units are in planning
stages and may or may not be permitted b y the 2026 deadline.
Docusign Envelope ID: 107E41E6-10B5-41E0-B274-EE00D2B7AC2B
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Culture and Recreation
2) Question from Mayor Pro Tem Francis: Can we have a Council Work Session on the
Parks and Recreation Infrastructure Replacement Programs (IRP)?
Response from Kelly DiMartino (City Manager):
Yes, staff will ensure this request is brought to an upcoming Leadership Planning Team
meeting to discuss further and put this item on the 6 -month Agenda Planning Calendar.
High Performing Government
3) Request from Kelly Ohlson: In Offer 16.9-Fleet Vehicle and Equipment New
Replacement, please provide information on what is specifically included at the $2.2M
funding level and summarize what is being deferred. Please also explain the evaluation
model for how fleet and equipment replacements are determined.
Response from Tracy Ochsner (Operation Services) and Travis Storin (Finance):
Please see the requested listing of vehicles and equipment below.
Regarding the evaluation methodology, each vehicle in the fleet has a calculated score
based on age, mileage, and life to date maintenance costs. Once a vehicle hits a
minimum score of 20, then it is considered a candidate for further discussion. That
discussion is based on more subjective criteria such as condition and how critical it is
and determines whether it moves to the final recommended replacement list. More than
half of the candidates are not included in the final list.
If there is interest from Council to discuss this further, staff proposes for it to be a
Council Finance Committee (CFC) discussion topic at one of the Q1 2025 CFC
meetings.
2025 Units to be Replaced
This list represents one $400k quarterly payment in 2025 and $1.6m payments in 2026
or $7m in capital value.
Forestry
o 1993 Loader
o 2007 Chipper
o 2009 Bucket Truck
Traffic
o 1984 Single Axle Dump
o 1999 Scissor lift Platform Truck
o 2012 Sign Truck
Police (all projected to be replaced at 100k miles)
o 23 Patrol/CSO SUV’s
Streets
o 2001 Tandem Dump Truck
o 2007 Pothole Patcher Truck
Docusign Envelope ID: 107E41E6-10B5-41E0-B274-EE00D2B7AC2B
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o 2- 2014 Street Sweepers
o 1991 Heavy Duty Truck
o 2004 Light Duty Pickup
o 2 - 2002 Sidewalk Snow Brooms
o 1994 mobile air compressor
o 2007 Tractor
o 1998 Semi Tractor
o 2007 Tandem Dump
o 2009 Traffic Control truck
Parks
o 2000 Medium Duty Pickup
o 2007 Light Duty Pickup
o 2003 Compact Pickup
o 3- 2003 Electric Utility Vehicles
o 2004 Compact Utility Loader
o 2010 Medium Duty Pickup
o 2006 Utility Vehicle
o 2009 Large Mower
o 2012 Heavy Duty Pickup
o 2010 Compact Pickup
o 2012 Compact Pickup
Recreation
o 1997 Small Loader
o 2005 Sedan
Building Inspection
o 2006 Compact Pickup
2026 Units to be Replaced
This list represents one $200k quarterly payment in 2026 or $3.5m. in capital value.
Forestry
o 2014 Bucket Truck Loader
o 2009 Chipper Dump Truck
Traffic
o 2005 Medium Duty Flatbed Pickup
o 2016 Bucket Truck (3–4 year lead time)
Police (all are projected to be replaced at 100k miles)
o 3 Investigation / Admin vehicles
o 9 Patrol SUVs
Streets
o 2010 Pothole Patcher Truck
o 2012 Medium Duty Pickup
o 2005 Tandem Dump Truck
Parks
o 2002 Compact Pickup
Docusign Envelope ID: 107E41E6-10B5-41E0-B274-EE00D2B7AC2B
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o 2009 Electric Utility Vehicle
o 2002 Utility Vehicle
o 2- 2004 Utility Vehicles
o 2003 Small Mower
o 2000 Field Paint Liner
o 2003 Medium Duty Pickup
o 2000 Single Axle Dump Truck
o 2014 Compact Pickup – Parks Ranger
Recreation
o 1997 6 passenger Van
Code Compliance
o 2005 Compact Pickup
32 units are deferred to the next Budget cycle ($2.1M capital value)
Police
o 7 Patrol/Community Service Officer SUVs
o 3 Investigation/Admin Vehicles
Forestry
o 2009 Compact Pickup
o 1990 Flat Bed Pickup
Operation Services
o 2008 Cargo Van
Traffic
o 2 - Trailers
o 1998 Backhoe Loader
Streets
o 1993 Tandem Axle Tractor
o 1999 Rotomill
o 2001 Backhoe
Parks
o 2003 Medium Duty Pickup
o 1998 Trailer
o 2006 Medium Duty Pickup
o 2009 Electric Utility Vehicle
o 2000 Heavy Duty Pickup
o 2001 Medium Duty Pickup
o 1995 Light Duty Pickup
o 2003 Large Mower
o 1974 Turf Seeder
o 2000 Trailer
o 2000 Field Rake
o Pressure Washer
Recreation
o 2001 Sedan
Docusign Envelope ID: 107E41E6-10B5-41E0-B274-EE00D2B7AC2B
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Inquiries not specific to an Outcome
4) Request from Kelly Ohlson: DDA & MPO – are these entities required to pay their fair
share of the General Fund Administrative Charge in the same way Natural Areas is
being charged, or the way in which the Library and PFA are being charged?
Response from Joe Wimmer and Travis Storin (Finance):
The General Fund administrative charge model, which determines Natural Areas’ share
of annual administrative fees, accounts for City funds and does not include funds of
separate governmental agencies, which are dictated by Intergovernmental Agreements
(IGAs).
The DDA was created as an authority of the City by City Council and the electorate, and
as consistent with other City authorities, is not charged an administrative fee outside of
agreed upon service charges established in an intergovernmental agreement. The 2008
DDA intergovernmental agreement for City administrative support services outlines that
the City will provide without charge many administrative services contained in the
General Fund administrative charge model: accounting, payroll, other financial services;
human resources services; IT services. The DDA financially contributes for their use of
City Facilities services, Risk Management Worker’s Compensation services, and HR
benefit related to Authority employees.
MPO is supported by the City’s insurance benefits programs for which MPO pays the
City through their separate payroll and HR administrative systems. Other IGA-governed
entities such as Poudre Fire Authority and the Poudre River Public Library District are
charged for administrative support services as outlined in the respective agreements,
and not included the City’s General Fund administrative charge model.
Docusign Envelope ID: 107E41E6-10B5-41E0-B274-EE00D2B7AC2B