HomeMy WebLinkAboutAgenda - Mail Packet - 04/01/2025 - Council Finance Committee Agenda – April 3, 2025Agenda
Council Finance Committee
April 3, 2025 - 4:00 - 6:00 pm
City Hall - CIC Conf. Room
In person with Remote Participation Available via Teams Join the meeting now
Meeting ID: 247 116 340 034
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A)Call Meeting to Order
B)Roll Call
C)Approval of Minutes from March 6, 2025
D)2023 Audit Report – Staff Correction Plan Randy Bailey
30 minutes (15 mins. presentation / 15 mins. discussion)
E)URA Moral Obligation Pledge on a Bond Issuance Josh Birks
15 minutes (10 mins. presentation / 20 mins. discussion)
Request for the City to provide a Moral Obligation on a URA Bond issuance we are hoping to do in
June. The city has done this on all our previous URA Bond issuances.
F)Informational Attachment;
1)Natural Areas Annual Reappropriation Memo
G)Other Business
H)Adjournment
Next Scheduled Committee Meeting: May 1, 2025
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Council Finance Committee
2025 Agenda Planning Calendar
Revised 03/25/25 ck
2023 Audit Report – Staff Correction Plan 30 mins Randy Bailey
URA Bond Issuance
Request for the City to provide a Moral Obligation on
a URA Bond issuance we are hoping to do in June.
The city has done this on all our previous URA Bond
issuances.
15 mins Josh Birks
May 1st 2025
Rental Registration Stephens
Remington Parking Lot
Requesting a Purchase & Sale agreement with
Housing Catalyst for the Remington parking lot to
support a low-income housing project. Housing
Catalyst’s goal is to apply for a Low-income Housing
Tax Credit later this summer.
20 mins
Sylvia Tatman-
Burruss
Josh Birks
June 5th 2025
July 3rd 2025
Muni Court & Parking Services Appropriation (Denzel Maxwell / Tracy Ochsner)
E. Mulberry Threshold Analysis
Fleet Management Policies and Practices
2025 Annual Adjustment Ordinance (September)
2026 Budget Revisions (September)
Budget Revision Process for 2026 Budget Lawrence (spring / summer)
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Finance Administration
215 N. Mason
nd Floor
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Council Finance Committee Hybrid Meeting
CIC Room / Teams
March 6, 2025
4:00 - 6:00 pm
Council Attendees: Mayor Arndt, Kelly Ohlson, Tricia Canonico
Staff: Kelly DiMartino, Tyler Marr, Gretchen Stanford, Carrie Daggett, Dianne
Criswell, Denzel Maxwell, Teresa Roche, Chris Martinez,
Terri Runyan, Kevin Wilkins,
Ginny Sawyer, Max Valadez
Tracy Ochsner, Brian Hergott, Sylvia Tatman-Burruss, Joe Wimmer,
Drew Brooks, Meaghan Overton, Kaley Zeisel, Mallory Gallegos, Peggy
Streeter, David Wolfe, Dana Hornkohl,
Josh Birks, Andy Smith,
Dean Klingner, Leeann William, Aaron Harris, Jill Wuertz. Victoria Shaw,
Wes Collins, Kristin Flower
Matt Fater, Heather McDowell, Jennifer Poznanovic, Randy Bailey,
Trevor Nash, Adam Halvorson, Renee Reeves, Lawrence Pollack, Claire
Turney, Jo Cech, Carolyn Koontz
Other:
Meeting called to order at 4:00 pm
Approval of minutes from the February 6, 2025, Council Finance Committee meeting.
Motion made to approve by Kelly Ohlson and seconded by Tricia Canonico.
Approved via roll call.
A.Capital Tax Renewal: Affordable Housing Revolving Loan Fund
Sylvia Tatman-Burruss, Project Manager
Joe Wimmer, Financial Analyst
SUBJECT FOR DISCUSSION
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Revolving Loan Fund - Capital Improvement Quarter-Cent Tax Renewal
EXECUTIVE SUMMARY
The purpose of this item is to update the Council Finance Committee (CFC) on considerations to
increase affordable housing resources and changes to the management and use of those funds. This
strategy is being considered within the Capital Improvement Quarter Cent Tax Renewal package. This
renewal is targeting the November 2025 election.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1.What questions/suggestions do committee members have regarding the proposed options for the
affordable housing funding within the tax renewal package?
BACKGROUND/DISCUSSION
The current Community Capital Improvement Program (CCIP) tax will expire on December 31, 2025.
Staff is currently working to create a package to offer voters as a renewal in November 2025 for a tax
that would run from January 1, 2026, to December 31, 2035.
Current Housing Package and Program
-The current CCIP packages includes $4 million for the Affordable Housing Capital Fund over 10
years. That fund has traditionally been used as “last in” gap financing for projects that are otherwise
fully funded. Uses include direct subsidy and fee credits.
-Those funds are utilized as grant funding and those funds are not returned.
-Those funds have been very useful for filling gaps and such funding resources are limited.
Summary of projects funded utilizing the fund since 2017:
•From 2017 through 2021, 4 projects have been funded.
•Projects funded have served residents at income levels of 30% - 80% of Area Median Income
(AMI).
•Total usage of the fund has been just over $1.8 million across 4 projects since 2017 either as direct
subsidy or as fee relief.
Proposed Program Changes
Staff have been exploring the use of funds as a revolving loan fund (RLF). This would allow the City to
bond against $10 million of sales tax revenue and utilize those funds as low-interest loans to affordable
housing projects. The total expected amount of the bond issuance would be about $7.5 million. The
sales tax revenue would pay the debt service on the bond over the life of the ten-year sales tax. The full
amount of the funds could be utilized within the first year of issuance, 2026.
Program Considerations
Staff is seeking to utilize CCIP funds more effectively to achieve Council’s adopted priority to
“operationalize City resources to build and preserve affordable housing.” In exploring options for a RLF,
staff began with several assumptions:
-The primary goal of the RLF is to accelerate the pipeline of affordable housing development
-The RLF should provide below-market terms to maximize benefit to housing developments
-The RLF should be flexible to adapt to changing market conditions
-The RLF should revolve, allowing funds to serve multiple developments over time
Staff has worked with housing partners and housing finance experts to analyze the potential benefits of
two primary uses of RLF funds:
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1. Short-term construction financing – loans covering the construction period of a development
(roughly 24-36 months).
2. Long-term project financing – loans used as an equity source in a development for the life of a tax
credit partnership (15-18 years).
Both types of financing have benefits and drawbacks. Short-term financing saves on construction
interest, and the funds can revolve more quickly if the loan terms are only 2-3 years. However, staff
have learned that long-term project financing provides the most benefit to potential affordable housing
developments. If the primary goal of the RLF is to accelerate the pipeline of affordable housing
development, using most of the fund for long-term financing will create more new units more quickly.
Using a hypothetical example of a 75-unit affordable tax-credit development, staff found that using RLF
funds for construction saves the project money on interest during the construction period. This is
helpful, but not sufficient to make a project possible. In this case, the hypothetical project still had a
long-term financing gap of more than $4 million. Using the potential RLF funds for long-term financing
on the same hypothetical project resulted in a project with no financing gap because the low-interest
funds were able to stay in the project over time.
Because there are benefits to both types of financing, staff has proposed a structure for the RLF that
would allocate about 2/3 of the fund to a long-term investment, with the remaining 1/3 available for
shorter-term needs.
Hybrid Model: Long- and short-term investment, lower annual payments to City
$5M into one project as longer-term investment
•Interest rate: if 1%
•Annual payment to City: $50,000 interest-only
•Loan term: 16 years
$2.5M reserved for shorter-term investments (2-3 years)
•Interest rate: Varies, if 1-3%
•Annual payment to City: Varies, $25k - $75k
•Loan term: 3 years or less
Pros: Accelerates housing pipeline; creates new gap source of funding; replicable; balances long- and
short-term needs
Cons: Majority of fund revolves slowly; potential for smaller total interest payments to City; need shovel-
ready projects for $2.5M portion of fund
Loan interest paid to the City could have flexible options of application. Interest payments could grow
the amount of the revolving loan fund over time or contribute to lowering annual debt service payments
of the bond. Alternatively, interest could be used in the traditional use of the Affordable Housing Capital
Fund – collecting in the fund to be used as fee credits or direct subsidy to developments.
DISCUSSION / NEXT STEPS
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
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What questions/suggestions do committee members have regarding the proposed options for the
affordable housing funding within the tax renewal package?
Tricia Canonico; so, they are only paying the interest back – is that still revolving in some way?
Joe Wimmer; the whole loan gets paid back when they refinance – for short term that would be 5 years
and for long term 10 years but annually they would have interest payments to the city.
Kelly Ohlson; we have only spent $1.8M of the $4M for affordable housing over a ten-year period.
What is up with that as this is a Council Priority?
Joe Wimmer; there is a current balance of $1.6M. Our developers and partners are going through our
competitor process. This is used as the last in gap filler if needed and I don’t think the demand has
been there yet to need that. This year that is $84M requests over what we might have available.
Kelly Ohlson; from page 25 of the packet - total usage just over $1.8M leaving $2.2M
Joe Wimmer; we took a piece of the capital tax funds for our fee relief program during the budget cycle
Sylvia Tatman-Burriss; it can be nice to have a larger balance in the fund – nice to build it up a bit – so
there are chunks to allocate
Kelly Ohlson; Math to get to the $10M - I thought $5M was going into the longer term with $2.5M going
into the shorter term and I know you said there is a $1M that goes along with the bonding aspect.
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Joe Wimmer; $1M per year over 10 years – paying interest on the bond -
Kelly Ohlson; so that gives us $7.5M to work with and $2.5M in soft costs. I am glad we are doing the
$10M. I am good unless I hear differently from other committee members. Good to know that you feel
strongly about your recommendation.
Joe Wimmer; we have talked with the housing community, especially Housing Catalyst and Housing
Authority that this would be beneficial.
Tricia Canonico; I also wasn’t clear that the $2.5M is for the bonding. I would say expand on that more
when you bring this to the full Council as well as the definition of a micro loan site. I think this is great.
Mayor Arndt; what if the sales tax goes down?
Joe Wimmer; we would be locked into the debt service payments on it. We would initially look at other
projects in the package having to scale to make up for that. The interest stays steady.
Mayor Arndt; have we done anything to the best of our ability in the city to reduce the time to approving
these things?
Sylvia Tatman-Burriss; the Development Review Team is working on the approvals at the beginning of
a project. Affordable Housing would go through our basic 90-day decision process.
Mayor Arndt; and we have a shot clock on that?
Sylvia Tatman-Burriss; yes, so that would be at the beginning. The reason why that long term goes to
the 15 years is because that it is part of a tax credit allocation. That is just the amount of time a tax
credit project takes.
Mayor Arndt; Lot of money tied up in review process - very expensive for developers
Tyler Marr; this is a work in progress. We will have more to share at the March 25th Work Session on
Housing - specifically around the Prop 123 Funding that we using to study how to get this to the 90-day
mark that Sylvia mentioned. We think that will have lessons for all of Development Review.
Mayor Arndt; you said the long-term loans are very impactful – with the hybrid, are we going to end up
with it neither here nor there?
Sylvia Tatman-Burruss; we have talked with several of our housing partners in terms of those loan
amounts and they are seeing that across the board as fine. It is not necessarily that if you increase the
long-term amount that you would get one net new project. That split seems to work now, but there
could be flexibility there. This is from our proposal for these types of tools. We aren’t necessarily
locked into this piece. If we moved forward with the bond, we would be locked in there but not in terms
of the combination.
Mayor Arndt; Housing Catalyst is a great partner. I join with Kelly in saying, this is important. We need
to move on this! Let’s get the money out the door. Incumbent on staff to make this happen.
Let’s serve the people - we shouldn’t be putting up roadblocks.
B. Capital Tax Renewal Updates
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Ginny Sawyer, Project Manager
Dean Klingner, Community Services Director
Joe Wimmer, Financial Analyst
SUBJECT FOR DISCUSSION
Capital Improvement Quarter-Cent Tax Renewal
EXECUTIVE SUMMARY
The purpose of this item is to update the Council Finance Committee (CFC) on continued development
in building a package of projects for the capital tax renewal. This renewal is targeting the November
2025 election.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1.What questions/suggestions do committee members have regarding the current projects and/or
timeline?
2.Are there projects Councilmembers recommend removing, scaling, or adding?
BACKGROUND/DISCUSSION
The current Community Capital Improvement Program (CCIP) tax will expire on December 31, 2025.
Staff is currently working to create a package to offer voters as a renewal in November 2025 for a tax
that would run from January 1, 2026, to December 31, 2035.
Key attributes of this renewal include the long history of utilizing this tax for community good, a renewal
does not increase taxes, and this tax and other dedicated taxes are not applied to grocery purchases.
Staff was last at Council Finance in October 2024 and presented to the full Council in November 2024.
Future Council touchpoints include:
-May 27, 2025, work session
-July 8, 2025, work session
-July 15 or August 19, 2025, ballot referral (to be scheduled)
Potential Projects
Since mid-2024, staff has been creating, culling, and refining a potential project list. Projects are
generated through existing masterplans, known items of community interest, and consideration of
Council priorities. Project consideration and rationale have included:
-Looking at historical funding and ability to leverage dollars. This is especially true in the
transportation area as dedicated revenue helps create local match dollars for grant programs.
-Looking at current unpredictability in inflation and grant availability, efforts have been made to
balance a level of flexibility and a degree of certainty for project outcomes. Examples of this include
combining some of the fund buckets around outcomes (i.e. Bicycle Infrastructure and
Overpass/Underpass Program) to allow for opportunity-based project selection.
-Looking for opportunities to respond to community feedback for both amenities and improvements.
Examples here include pickleball courts, trail development, and investments at Lee Martinez Farm.
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-Looking to advance Council priorities and community values including affordable housing, climate
goals, and environmental enhancements.
The current project, list at requested funding amounts, is approximately $152M. Tax revenue from
2026-2035 is estimated at $110M. Staff will continue to work with Council and conduct public outreach
to help inform both scaling of projects and removal of projects.
Greater detail on all projects is attached as is a draft balanced package.
DISCUSSION / NEXT STEPS
Pie chart – is all $152M of projects
Packet has a balanced fund of all the projects we could fund to match the revenue
If we were able to fund all projects that were proposed
Kelly DiMartino; the charts you focused on are the right ones.
We could have labeled this; ‘The Asks that were it the mix originally’ versus what is in the package at
this time.
Ginny Sawyer; this is where we started – the other is a little irrelevant to our decision set
Kelly Ohlson; we are the dress rehearsal
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Kelly Ohlson; what is the area north of Legacy Park (see map above)
Dean Klingner; I think that is private property.
Kelly Ohlson; if it was ever for sale, you could win on every level.
You could add more park space while protecting natural areas corridor.
Dean Klingner; outcomes we try to achieve
Natural Aeras – does it make sense to swap land between Natural areas and Parks
Analysis would say the habitat value of this park area is higher than piece
Kelly Ohlson; they would be in a park that is right next to a natural area. People would still have access
there. Where is the new shelter located?
Tyler Marr; the new shelter is north of Hickory on map you can see the southern part of it
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Ginny Sawyer; the above is a first draft of how we get this within the dollar amounts. Everything is
scalable, changeable and we will continue to refine. August 19th is the date to refer to the ballot.
Mayor Arndt; I appreciate how everyone has to plan at the city.
I would probably approve any plan. Are we going to see alternatives and projections?
Council might want to see another column – contingencies – what happens if sales tax declines.
Empty office space and retail – the forces that are happening that are out of our control. There will be
questions around this. What part of these are reliant on federal funds?
How do we get information on that. Sales tax projections
Ginny Sawyer; I am betting a lot of those transportation buckets. This is a piece of a funding package
that includes federal dollars. Built in benefits. We can do less in those funds if we don’t get that money.
Kelly DiMartino; some of it might be a pacing question. The trade-off of a little more flexibility gives us
the ability to be more adaptive. The pace of things like trail construction may change based on funding.
The value and commitment are still there, and we will pursue as the funds are available.
Mayor Arndt; that is what the voters would like to see
Tyler Marr; sales tax could hit our growth projections – the historic leveraging – the pacing is going to
change anyway
Mayor Arndt; we need to talk about those things with the full Council.
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Kelly Ohlson; maybe we need to work with Legal to have different language than we have had in the
past. What could happen - we need to be careful – I think we can address it in the ballot language to
be more nimble. We don’t want the big-ticket items to be eliminated. I think the team has done
incredible work led by Ginny and that we are close. Some of the money I would quibble with here and
there – we need the contingency language. The package itself has come a long way – still many details
to iron out but I think we will get there.
Tricia Canonica; ballot language is my biggest concern. How do we write enough flexibility in that so
we can achieve what we need to achieve. Do we have any idea of what we are thinking for dollar
amounts?
Ginny Sawyer; the ballot language calls out the amount for every project.
We try to be conservative. Typically, a reserve account.
Joe Wimmer; we budgeted $84M and it ended up $94M
Kelly Ohlson; why can’t we use qualifying words like approximately or dependent on available funds?
I think it would be great if we did not have to use a set number unless it if required by TABOR
Ginny Sawyer; let’s have the conversation and we will include this in the May 27th materials.
Kelly Ohlson; maybe there is an answer about needing to use a specific amount. If so, we may know
that today.
Dianne Criswell; for the first year of collection, an estimate is required in the ballot measure language.
I could research and come back on whether or not there is any case law or other interpretations about
the amounts. I will look into TABOR.
Kelly Ohlson; is there a way to be approximate? Can we say estimated instead of locking in on hard
and fast numbers? I am not sure we are comfortable with that.
Mayor Arndt; can we say estimate?
Kelly DiMartino; I don’t know if we can fully answer that today. This is super helpful feedback to know
what you are trying to provide or prevent. We can do some research and come up with specific
options.
Tricia Canonico; we have rejected this before when we talked about CCIP. A prioritization with this lack
of certainty we now have, and that people are voting based on a specific project they are in favor of.
For example, if we didn’t have adequate funding for the pickleball complex – we have people voting
specifically for that.
Ginny Sawyer; let us work on the language. I imagine it will be the slowing of things, like should
revenue not meet expectations projects may be slowed and limited.
Kelly Ohlson; historically, we have listed the projects but not the timing.
Mayor Arndt; nice to think about it but I think about, but it ties you down too much
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Ginny Sawyer; one thing we have done in the past, should this pass in November we would come back
to Council probably looking at the ten years in thirds. Saying here is what we are looking at - trying to
keep those funds even over time instead of front loading or back loading.
Mayor Arndt; unless there is one huge one
Kelly Ohlson; the timing - does a month or six weeks make any difference?
I just don’t think with a tweak here or there that this is going to be a difficult thing for Council to resolve.
It is close enough – a very solid package that I will have no trouble defending. The earlier we can bring
it the better. It could be a weird election cycle, but I am confident it will pass.
I think we need to be as clear as possible – the pie chart question
You put Parks in the Environmental bucket. Parks should go into the Parks & Recreation - so the
percentages are accurate. If it is 50/50 or 60/40.
Dean Klingner; some split makes a lot of sense
Kelly Ohlson; just as accurate and fair and full disclosure as we can get. A pool alone is $50M -
Mulberry Pool replacement?
Dean Klingner; as we talked about in the SE Community Center discussions, there is a very significant
impact due to inflation on pricing / construction. We don’t have a site or design. There are a lot of
questions in there. It could be lower – just not sure.
Kelly Ohlson; we have come a long way – just looking at refinements at this point.
Mayor Arndt; thank you very much - it is tough to plan right now.
C.Annual Reappropriation
Lawrence Pollack, Budget Director
SUBJECT FOR DISCUSSION
Review of the 2025 Reappropriation Ordinance to appropriate prior year reserves.
EXECUTIVE SUMMARY
The purpose of this item is to reappropriate monies in 2025 that were previously authorized by City
Council for expenditures in 2024 for various purposes. The authorized expenditures were not spent or
could not be encumbered in 2024 because:
•There was not sufficient time to complete bidding in 2024 and therefore, there was no known
vendor or binding contract as required to expend or encumber the monies; or
•The project for which the dollars were originally appropriated by Council could not be completed
during 2024 and reappropriation of those dollars is necessary for completion of the project in 2025.
Additionally, there may have been sufficient unspent dollars previously appropriated in 2024 to carry on
programs, services, and facility improvements in 2025 for those specific purposes.
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In the above circumstances, the unexpended and/or unencumbered monies lapsed into individual fund
balances at the end of 2024 and reflect no change in Council policies.
Monies reappropriated for each City fund by this Ordinance are as follows:
Total $5,572,540
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does the Council Finance Committee support moving forward with the 2025 Reappropriation Ordinance
on the Consent Agenda at the March 18, 2025, Council meeting?
BACKGROUND/DISCUSSION
The Executive Team has reviewed the Reappropriation requests to ensure alignment with organization
priorities and the Budget staff reviewed the requests to verify that all met qualification requirements. The
2025 Reappropriation requests are as follows, by fund:
GENERAL FUND
City Clerk’s Office
1)Ranked Choice Voting preparation - $67,978
Purpose for funds: At the November 2022 election, voters approved ranked choice voting. Starting
in 2025, the City of Fort Collins must use ranked voting methods to fill Mayor and District
Councilmember seats for coordinated and/or City-run elections when there are three or more
candidates. The City is required to provide the instructions, training, procedures and services
required to educate the community and implement this new way of voting in collaboration with the
County and others. Due to the increased cost of ranked voting that the City is responsible for, the
election itself will likely exceed the budgeted amount for FY25. A portion of the reappropriated
funds will be used for this purpose. Additionally, the City Clerk's Office is obligated to educate the
public on this new style of voting, and the remaining reappropriated funds will be used on marketing
and outreach to the community. This includes mailings, newspaper, social media and other
advertising, event costs, necessary informational materials/video, mock election materials, and
other supplies for effectively communicating this initiative to the public. While the City Clerk's Office
is looking for creative ways to partner with other organizations and community groups, a large cost
for planned outreach efforts is expected.
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Reason funds not expensed in 2024: The City Clerk's Office has been in a state of transition over
the last year, running under adequate staffing levels and bringing on new team members. While
ranked voting was identified as a major priority, planning for outreach and coordination efforts in the
first half of 2024 was not feasible. This was due, in part, to the efforts required to get Charter
amendments and other ballot questions approved and then working with the County on a
coordinated 2024 election. Planning discussions and staff education related to ranked voting began
in the fall of 2024, but many of the necessary items could not be purchased or encumbered so far
from the 2025 election date as related materials and other items had yet to be developed. This
work is currently underway. Staff is working with the County, CSU, PSD and the League of Women
Voters to find ways to collaborate on these efforts and share some costs. However, we expect
there will continue to be a significant cost for the City related to ranked voting efforts to ensure we
effectively get the word out and help train voters. Reappropriating these funds will contribute
significantly to our communication and outreach strategies.
Economic Health Office
2)Construction Impact Grants - $74,500
Purpose for funds: These funds are meant as small grants to local businesses that have been
impacted by City Construction. Road construction can limit access, interrupt operations, and reduce
customer traffic. These grants are meant to help mitigate those issues by providing resources to
help with marketing, communication, signage, etc.
Reason funds not expensed in 2024: The funds were not fully expended in 2024 based on
unanticipated major project timing shifts. The request for reappropriation is due to the confluence of
two major capital project schedule changes: College and Trilby construction has been delayed, as
well as Harmony Underpass schedule prioritization (happening sooner).
Police Services
3)K9 Donation - $8,505
Purpose for funds: $10,000 was given by a citizen for the purpose of supporting the K9 unit for any
purpose. This has not yet been purchased and should be reappropriated according to the intent of
the gift.
Reason funds not expensed in 2024: The reason that the funds weren't spent was because at the
time all of the needs of K9 had been met with a portion of the gift and its existing budget. The team
has plans for this money in 2025 and the remaining balance will be spent.
4)Leadership Summit Donation - $90,797
Purpose for funds: This reappropriation is for the remaining amount of the funds that were donated
for the Police Leadership Summit that was held last year. It will be held again in 2025 and paid for
by the remaining donated funds.
Reason funds not expensed in 2024: The funds were originally donated by Angel Armor for rifle
plates and then permission was given to repurpose the funds to pay for the Leadership Summit. In
the interim other doners such as the Daniel's Fund donated more money which exceed the needed
amount. Police will keep using the funds for their intended purpose to fund this event.
Social Sustainability
5)24/7 Homeless Shelter Contribution - $1,000,000
Purpose for funds: The City of Fort Collins recognizes the need for the construction of a new 24/7
shelter and seeks to provide $1 million in local funds to Fort Collins Rescue Mission for construction
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of the shelter, which will serve men experiencing homelessness in the community. The new shelter
will eliminate the need for winter overflow shelters and serve as a hub for community partners to
collaboratively serve clients, including access to health services, job training, mental health support,
and other critical resources.
These funds are intended to support a portion of capital expenses related to construction of the
shelter, which will be released to Fort Collins Rescue Mission only after they receive both full
funding and building permits.
Reason funds not expensed in 2024: Funds were not expended in 2024 because the development
entitlement process was prolonged due to appeals. Fundraising is going well, and the Rescue
Mission believes they will start work on site in Spring of 2025. SSD staff is working with the Rescue
Mission on a contract for this $1M investment. Funding will not be made available until permits are
pulled for the project to start construction.
City Manager’s Office
6)Digital Accessibility - $71,760
Purpose for funds: We are working on phase two of the Digital Accessibility work. We have a scope
of work to audit digital platforms for each service area as well as digital documents, DocuSign
templates, municipal code, Laserfiche, and Get FoCo. This work is needed to meet basic state
compliance requirements.
Reason funds not expensed in 2024: The funds for this project were not expended in 2024 due to
phase 1 of the Digital Accessibility audit taking longer than expected. This reappropriation will
enable completion of this work in 2025.
City Attorney’s Office
7)CAO Charter Review - $12,500
Purpose for funds: Work was initiated in July 2024 on the City Council priority to update and
modernize the City Charter. Outside special counsel was hired to assist with this work and $25,000
was appropriated to support it. After work sessions in December 2024 and January 2025, work is
underway to prepare ordinances that would put Charter amendments on the November ballot, to be
presented to Council on April 1. Reappropriating these funds would make them available to support
the completion of the work they were intended to fund.
Reason funds not expensed in 2024: The amount appropriated in summer 2024 provided the total
amount of funds needed for the Charter Update work. However, the timing of the project work has
been split between 2024 and 2025. As a result, roughly half of the funds were expended in 2024,
and the remaining funds are needed to complete the work as scheduled.
8)Red Light Camera Radar (RLCR) Traffic Initiative - $146,179
Purpose for funds: The City Attorney's Office prosecution team continues to move forward with
implementation of the new Automated Vehicle Identification System traffic enforcement program
(red light/camera radar). Preparing for and bringing on new staffing, training and development of
procedural updates have been underway and cases from fixed cameras and in-person enforcement
have continued to increase and are likely to continue to increase. These funds would be used to
provide needed support for the prosecution team working on these issues in 2025, particularly as
additional freestanding units, which have not yet been deployed, come online. Funds for already
filled ongoing positions were funded in the 2025 budget for only April through December and these
funds will help cover the resulting shortfall.
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Reason funds not expensed in 2024: The rollout of the updated red light/camera program was
delayed until late in 2024, as was staffing and onboarding of the prosecution team support. Some
aspects of the program, including the new freestanding units, have not yet been implemented.
These delays slowed the influx of cases, and the program will continue to grow significantly well into
2025. (The delays will also likely push into 2026, temporary expenses that were originally expected
in 2024-25.)
Municipal Court
9)Case Management System (Tyler Tech) - $227,912
Purpose for funds: 2024 BFO Offer 68.8 funded a new court case management system for the
Municipal Court. This offer was strongly supported by the City Attorney's office and the City's
Information Technology department. The use of technology within the judicial world is critical to the
functionality and efficiency of a court. After an extensive RFP process, a vendor was awarded this
contract in Q2 of 2024. In July of 2024, this technology implementation project started. These funds
will be used to support the project by funding a temporary employee serving as a co- project
manager supporting the Court Administrator and to fund the contractual obligations associated with
this project.
Reason funds not expensed in 2024: This project is an extensive year-long implementation project
which merges several different systems into one updated case management system. Funding is
disbursed throughout the implementation as contractual obligations and project milestones are
completed by the vendor. The project started in July and is on schedule. Because of the complexity
of the project, only a couple of project payment points/invoices were reached in 2024. The
remaining payment/invoicing deadlines should be completed in 2025.
Operation Services
10)Edora Pool and Ice Center Hot Water System - $85,000
Purpose for funds: These funds identified in Offer 15.14 Aging Facilities Maintenance were
targeted to replace the hot water piping to the locker rooms at the Edora Pool and Ice Center
(EPIC). During higher hot water demands in the locker rooms, the system fails to deliver hot water
leaving patrons experiencing cold showers. This reappropriation request would use the funds to
redesign the hot water system to resolve this ongoing issue for EPIC customers.
Reason funds not expensed in 2024: In December of 2023, temperature issues with the domestic
hot water system at Edora Pool and Ice Center were apparent. Numerous complaints were
received from patrons regarding the low water temperature in the showers. Several attempts to
resolve this problem with the current system were unsuccessful.
In early 2024, the City partnered with a mechanical consulting engineer to redesign the piping for
this part of the hot water system. This involved mapping the existing system, as well as providing
construction documents and an estimate for the needed repairs. Due to the length of time for this
redesign process and availability of vendors to perform the work, this project was unable to start in
2024 as originally scheduled.
11)Replace Northside Atzlan Methane Detection System - $45,000
Purpose for funds: These funds identified in Offer 15.14 Aging Facilities Maintenance will replace
an end-of-life methane detection system at the Northside Atzlan Community Center. This system is
required by the State of Colorado to monitor the methane mitigation system that is integral to that
facility.
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Reason funds not expensed in 2024: This system is original to the 2007 construction of the building
making the replacement of components a challenge. In July of 2024 the City partnered with a
contractor for repairs to the Northside Aztlan Methane detection system. After several attempts to
resolve this problem using the existing system were unsuccessful, it was determined a full
replacement would be in the city's best interest. In December 2024, the city requested a proposal
for the design and installation of a new system. Due to the length of time for this process,
permitting, and availability of vendors, this project should be completed by mid-2025.
Parks
12)Pickleball Donation - $11,513
Purpose for funds: Funding for a feasibility study for a future City-owned pickleball complex was
appropriated in 2024 for Park Planning and Development staff to conduct an initial public
engagement process and feasibility study. To date, staff have conducted 2 stakeholder meetings,
one open house, and developed conceptual designs for two potential locations on community park
properties.
The Fort Collins Pickleball Club awarded $40,000 to the Park Planning & Development division
(PPD) for this designated purpose. Past philanthropic partnerships by City Give have included The
Hand That Feeds, Veterans Plaza of NoCo, a refresh of Eastside Park, and the 9-11 Memorial at
Spring Park.
Reason funds not expensed in 2024: Not all funds were expensed in 2024 as the results of a noise
impact study by an acoustic engineering firm were not available until Q1 2025. Continued outreach
and communication with the donor group (Fort Collins Pickleball Club) will be completed to finalize
the City's commitments per the gift agreement.
2050 TAX FUND – CLIMATE OCF
Natural Areas
13)Poudre River Health Assessment - $53,424
Purpose for funds: This offer funds the Poudre River Health Assessment project, a sampling
project that evaluates the health of the Cache la Poudre River from Gateway Natural Area to I-25
using a suite of biological, chemical, and physical indicators. The project builds on a previous effort
completed by the City in 2017 and is a critical baseline for informing potential large-scale water
projects. The funding for this offer covers that cost of sampling, analysis, and public outreach. The
majority of the funds ($246,473) are allocated in an existing PO with ICON Engineering for the
sampling effort, with a portion of those already used as matching funds for our partners at the
Coalition for the Poudre River Watershed (CPRW). CPRW is sampling the Upper and Lower zones
of the watershed, while the City is focusing on the Middle Zone. As of the end of 2024, spending
toward sampling and analysis have been addressed. The reappropriated funds will support
development of final products and public outreach.
Reason funds not expensed in 2024: The project funds that were not fully expended in 2024 are for
the last phase of the project: public and partner engagement. The team must first receive the
results from the sampling effort to begin the engagement phase. The timeline of contracting process
and the need to collect data across a full year in order to see a complete picture of river health
caused this project to spill into 2025. Sampling is underway and engagement is scheduled for
summer and fall 2025.
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2050 TAX FUND - PARKS & REC
Recreation
14)Recreation 2050 Tax CIP Study - $250,000
Purpose for funds: Ordinance 58 was approved appropriating $250,000 to fund a Capital
Improvement Plan (CIP) study for the Recreation department out of the 2050 Tax Fund - Parks &
Rec. This study will inform the department’s efforts to strategically leverage asset management
investments, including from the Recreation Fund and the 2050 tax proceeds, and is similar to efforts
which the Parks department has completed for their Infrastructure Replacement Program.
Reason funds not expensed in 2024: Award of the contract was delayed due to new internal City
processes. Staff has worked through these processes and is underway with the RFP and expects
funds will be fully spent in 2025.
2050 TAX FUND - TRANSIT
Transfort
15)Transfort Optimization Study - $14,000
Purpose for funds: Transfort Optimization Study came in slightly under budget at $36k out of $50k
original cost. Transfort will use remaining balance of unspent funds for costs outside of contract with
the vendor such as incentives for focus groups and public meetings, additional translation costs,
childcare incentives, etc.
Reason funds not expensed in 2024: The cost of the optimization study came in under budget and
was only $36,000 of the original $50,000 anticipated cost. These expenses described above are
directly associated with the study, helping to inform strategic business decisions.
NEIGHBORHOOD PARKLAND FUND
Parks
16)Veteran's Plaza Sign Donation - $18,583
Purpose for funds: Funding was appropriated in 2024 for Park Planning and Development staff to
design, construct and install an entry sign for the Veterans Plaza of Northern Colorado at Spring
Canyon Community Park. To date, staff have completed design and design-build documents and
material acquisition for the installation of the sign.
Gifts of $25,000 and $50 were received by the nonprofit group supporting the Veterans Plaza and
an individual donor for this designated purpose.
Reason funds not expensed in 2024: Due to inclement weather conditions in Q4 of 2024 and
contractor availability, construction has extended into 2025. Work is anticipated to be completed in
Q1 2025.
CONSERVATION TRUST FUND
Parks
17)Bike Park Feasibility - $59,663
Purpose for funds: Funding was intended for Park Planning and Development staff to conduct a
community-scale bike park feasibility study as directed by Council at the June 11 Work Session.
This feasibility study includes an evaluation of potential locations, identification of features and park
amenities, and a community engagement process.
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This project is in response to significant community feedback and input from the 2021 Parks and
Recreation Plan: Recreate
Reason funds not expensed in 2024: The project for which the dollars were originally appropriated
by Council could not be completed during 2024 due to the project schedule overlapping years
2024/2025. Reappropriation of those dollars is necessary for completion of the project in 2025.
CULTURAL SERVICES & FACILITIES FUND
Cultural Services
18) Center for Creativity Furniture Donation - $91,729
Purpose for funds: The requested funds to be reappropriated make up a sizeable and generous
community donation from a local resident in 2024 intended to be utilized for venue vitalization,
improvements, equipment purchases, and furniture expenses. Due to the expansive nature of the
Center for Creativity renovation, and significant construction costs, donated funds such as this are
important to our continuing work towards making the Historic Carnegie Library a vibrant destination
for arts and culture in the Fort Collins community.
Funds used in 2024 purchased venue furniture items and equipment, along with basic infrastructure
improvements not originally budgeted as part of the greater renovation project. Due to the funds not
being received until 9/1/2024, staff was unable to fully spend them in 2024, as the building also was
not brought fully back online until August 2024. Time was needed following completion of the
renovation to best identify the areas these funds could best be put towards. We expect in 2025 to
utilize these funds on continued facility improvements such as improved gallery hard goods and
painted surfaces, access control upgrades, technical & performance related equipment, and other
similar building infrastructure upgrades.
Reason funds not expensed in 2024: Recognizing that these funds being requested for
reappropriation were not received until late in the year 2024ber), it was expected that their use, as
directed by the donation, would span more than just the year they were received. In an effort to
leverage this generous donation in the most responsible manner, staff knew that they would need
time once the CC was operational in August 2024 to best identify and outline how to use funding
towards their intended purpose to support the venues ongoing equipment, furniture, and
improvement needs.
19) Gardens on Spring Creek APGA Grant for Community Garden - $11,303
Purpose for funds: In 2024, The Gardens on Spring Creek received $20,000 grant from the
American Public Garden Association (APGA) to support a project where we partner with the First
Peoples Community Center to plan, design, plant and care for a garden plot at The Gardens for
indigenous community use. This garden was born out of an expressed desire by the local
indigenous community for more access to space to grow and harvest spiritual, medicinal and food
plants for their community.
This funding is instrumental to the success of this project and our commitment to building trust and
enduring relationship with the Indigenous Community. During the 2024 season the Garden
produced 370lbs of produce for the community and engaged at least 30 members of the Native
Community. The appropriation of the remaining funds will support the ongoing work of this project
for 2025.
Reason funds not expensed in 2024: Funds were deposited in 2024 and are committed to support
this project in its entirety. Due to a shortage of candidates for our gardener position in the summer
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of 2024, resulting in late hiring, the funds were not expended as intended by the end of 2024. We
are determined to spend these funds in 2025 to complete the project with this reappropriation.
RECREATION FUND
Recreation
20) Recreation Asset Management - $53,410
Purpose for funds: The Recreation fund appropriated these expenses from revenues to support
asset replacements, including the purchase of a replacement Kubota utility vehicle at the Farm at
Lee Martinez Park ($45,000) and the replacement of an ADA pool lift at the Edora Pool and Ice
Center ($8,410). Funding these assets allows us to maintain better service levels to the community
and promotes access.
Reason funds not expensed in 2024: Lead times for specialized equipment and work can be
lengthy. Staff has received quotes and is ready to award the orders with high confidence in
expending the funds in 2025.
21)Recreation Universal Pre-K (2024 State of CO Funding) - $30,469
Purpose for funds: Ordinance 140 was approved in November '24 appropriating the unanticipated
2024 revenue from the State of Colorado ($30,469) to fund the Universal Pre-school (UPK) '24 / '25
school year program at the Northside Aztlan Community Center in the Recreation Fund.
Reason funds not expensed in 2024: With the timing of the '24 / '25 school year spanning the City's
fiscal years hiring was delayed until funds were fully appropriated from Ordinance 140, as well as
BFO Offer 46.5.
Ordinance 140 works in conjunction with BFO Offer 46.5 which was approved in the ’25 / ’26
Budget and appropriates future State revenue as well as expands the Universal Pre-K program by
funding the hiring of 3 new FTEs (start dates in April ’25). Ordinance 140, approved in November
’24, allowed for the accelerated hiring of 1 new FTE in support of the ’24 / ’25 school year, this
position will be funded through Offer 46.5 from April ’25 forward. The team began the process of
hiring 1 new FTE in November '24, the position was filled, and the new employee began in January
'25.
22)Recreation Childcare Bus Exterior Wrap & Finishes - $12,790
Purpose for funds: Ordinance 124 was approved in September 2024 appropriating funds
($169,500) for a new full-sized bus in support of the Recreation department's childcare programs.
The bus has been ordered and this reappropriation is intended to move the remainder of the
original appropriation to fund the expense of exterior wrapping once the bus is received by the City
(estimated delivery: 2nd half of 2025).
Reason funds not expensed in 2024: The lead time for the bus will result in delivery in the 2nd half
of 2025, the wrap and finish cannot be awarded and applied until the bus is onsite. The wrap will
allow for the required City specific finishes.
TRANSPORTATION CEF FUND
Engineering
23) Waterfield Fourth Filing Development Reimbursement - $1,413,645
Purpose for funds: These funds are for a developer reimbursement for construction of Suniga
Road, Vine Drive, and Merganser Street improvements and for the dedication of right-of-way for
Suniga Road beyond local access standards.
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Reason funds not expensed in 2024: Funds were not expended in 2024 because the City of Fort
Collins has continued to wait for the developer to submit appropriate paperwork for reimbursement.
TRANSPORTATION SERVICES FUND
FC Moves
24) Foco Fondo Donation - $5,000
Purpose for funds: The annual FoCo Fondo donation to Safe Routes to School is earmarked for
new programming and/or new equipment to help get more kids bicycling in Fort Collins.
Reason funds not expensed in 2024: The funding was not used in 2024 due to the event occurring
after the midway point in the year and needing to wait for the funding to be appropriated. That left
no time to spend the funds on programming in the fall 2024 semester of school and little time to
research and acquire new equipment before the end of the year. These funds will be expended in
2025.
Streets
25) Streets Building Office Remodel- $221,853
Purpose for funds: The purpose of this request is to reappropriate $221,853 for the buildout of the
Streets Department office space. This budget had been set aside in 2024 to create new office
space as the Streets team continues to grow. This expansion is essential to accommodate
operational growth driven by the addition of new crews and staff, including the Timberline Recycling
Center team, new Sweeping/Graffiti crew chief, new Asphalt Crew, new Asphalt Manager, and new
Traffic Control Technicians/Classified Flaggers.
Reason funds not expensed in 2024: Initially, the project was scheduled to begin in 2024, with
Operations Services providing an estimated cost of $268,091. However, the estimate was
significantly higher than anticipated, requiring additional time to identify cost-saving measures and
ensure financial feasibility. Additionally, the pending approval of the 2025-2026 BFO requests for
additional FTEs (Offers 21.7 and 21.8) introduced potential design impacts that needed to be
considered before finalizing the project scope.
The timeline for project initiation was impacted by delays in receiving quotes and the additional
effort required to identify a more cost-effective approach. As a result, construction was unable to
begin before the end of 2024 and the project was delayed to 2025. The Streets Department now
has final design plans in place and is prepared to proceed with the remodel, with an anticipated
completion timeline in late Q3 of 2025. This timeline remains contingent on permitting and
contractor availability.
PARKING FUND
Parking Services
26) Civic Center Parking Structure (CCPS) Maintenance Work - $1,093,142
Purpose for funds: Following a 2019 condition assessment, the Civic Center Parking Structure
(CCPS) stairwell was found to have repair needs. Due to the pandemic and resulting financial
constraints, a pause to the maintenance schedule was approved by the contracted structural
engineering firm. Maintenance repairs resumed in 2022, and a subsequent condition assessment
identified that the southeast stairwell had degraded to an unsafe level resulting in its closure to the
public in June 2022. Following the closure, a thorough assessment of the needed repairs, design
and cost estimates was performed. Initial project funds of $1.2M were requested and appropriated
in 2024. The funds requested for reappropriation will be used to complete the necessary repairs to
the stairwell.
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Reason funds not expensed in 2024: Funding to repair the CCPS stairwell was approved in
September of 2024 in the amount of $1.2 million. At outset, this work was anticipated to take 1.5
years for completion and is currently on track to being competed by end of 2025.
DATA & COMMUNICATIONS FUND
Information Technology
27) ERP System Replacement - $249,385
Purpose for funds: This offer will identify the components necessary for the City to implement a
modernized ERP ecosystem, accounting for all readiness components, and will focus on the first
two phases necessary to transform our business processes into a modern solution while minimizing
customizations that exponentially increase implementation and support costs. To succeed this must
become a business-led, technology-enabled transformation and we must plan this modernization in
six key phases: 1) discovery and planning, 2) business process transformation, 3) design and
development, 4) change management and training, 5) testing and implementation, and 6)
operational support.
Maintaining our current platform amplifies the need for high-touch, manual support. Once we
implement a new solution, we will lower our costs, while increasing our ability to support increased
needs with no additional FTEs. A new ERP solution will implement industry best practices
necessary to standardize and streamline processes, reduce costly customization, address talent
resiliency while improving our risk management, and disaster recovery practices, and ensure
compliance with our pending end-of-life support. Also, implementing a standard solution will reduce
the 32+ interfaces necessary to support today.
Reason funds not expensed in 2024: The 2023-2024 funds were not fully utilized due to shifting
priorities and resourcing challenges, as efforts focused on foundational planning, cross-
departmental coordination, and learning from peer municipalities. In 2024, the City held an InfoTech
partner led ERP workshop that brought together key stakeholders to refine the strategic vision, align
business needs, and establish critical priorities for implementation. This workshop has shaped the
program launch for 2025 by identifying key requirements, scope and priorities, identifying process
gaps, and ensuring organizational readiness. The 2025 reappropriation will fund a dedicated ERP
Project Manager to lead planning, RFP development, vendor selection, and resourcing. Funds will
also help support backfilling key Finance, HR, and IT roles to allow subject matter experts to focus
on ERP selection, and implementation. This initiative will transition from planning to execution,
ensuring project readiness, structured system design, and phased implementation, ultimately
modernizing the City’s ERP system to improve efficiency, reduce costs, and ensure compliance
with end-of-life support requirements.
28)Expansion of Enterprise Service Management System (ESM) - $152,500
Purpose for funds: The original intent of this offer was to extend the "FreshService" IT Service
Management (ITSM) portal into an Enterprise Service Management (ESM) portal, encompassing
Human Resources, Operation Services, Communications & Public Involvement, and Emergency
Preparedness & Security. This centralization and standardization of service request management
would offer all City employees visibility into the status of service requests, tracked communications,
and a consistent framework across departments. The ongoing cost for licensing will increase
$68,500 annually.
Additionally, the implementation of ESM will be through a phased plan and tailored approach,
requiring professional services to assess and create a service delivery practice for the City. The
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one-time cost for a 3-month assessment and to begin implementation will be $87,500 for 3rd party
professional services. This investment aligns with our goal of moving from complexity to simplicity
by standardizing service requests, improving transparency, and enabling data-driven service
enhancements. ESM will streamline cross-department workflows, like onboarding new employees,
ensuring a seamless, employee-centered service experience.
Reason funds not expensed in 2024: The 2023-2024 funds were not fully utilized as the ESM
expansion took longer due to competing priorities across HR, Operations, IT, EPS, and CPIO.
During this period, IT focused on foundational training, process development, and service catalog
redesign to ensure a strong framework for expansion. The 2025 reappropriation is essential to fund
guidance and training, enabling departments to transition successfully. Additionally, these funds will
support licensing for new users as they configure and implement FreshService, ensuring a smooth
rollout.
FINANCIAL/ECONOMIC IMPACTS
This Ordinance increases 2025 appropriations by $5,572,540. A total of $1,841,644 is requested for
reappropriation from the General Fund, $1,413,645 is requested from the Transportation CEF Fund,
$1,093,142 is requested from the Parking Fund and $1,224,109 from other funds. Reappropriation
requests represent amounts budgeted in 2024 that could not be encumbered at year-end. The
appropriations are from prior year reserves.
DISCUSSION / NEXT STEPS
Mayor Arndt; That is a lot of money that we don’t spend each year. I am looking at the Poudre River
Health Assessment $53K that wasn’t spent (see below). I remember that was below the line at $500K.
Is that the same assessment?
Lawrence Pollack; no, this would not have been part of the 2025-26 Budget. These were prior
appropriations.
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Mayor Arndt; that is what I am concerned about - we pulled something from below the line to above the
line. Why didn’t we spend that, and we pulled something above the line for $500K - are we going to be
able to absorb that? We aren’t able to do the work, and we have this much money left over in this
bucket. I just wonder if we are making good decisions.
Lawence Pollack; during budget conversations, this amount of money, that was previously appropriated
was not going to be completely spent, there may have been other decisions made in the adoption of the
2-year budget. Having that information ahead of time would have been helpful.
Mayor Arndt; that is my point – are these different projects?
Tyler Marr; before this comes back to Council, we can follow-up on what this is and what you funded
from Poudre River for this budget. I think the Poudre Flow which came up, I do think that is different
work, and the relation is a great question.
Mayor Arndt; what a great problem to have - more money than we can spend, but it helps decision
making.
Lawrence Pollack; we will make sure to include clarification of what was in the original appropriation.
Mayor Arndt; why do we have $250K left over from the 2050 tax study? (see below)
Kelly DiMartino: the contracting took longer than we expected
Lawrence Pollack; the appropriation was in September. It is very prudent for staff to be proactive and
clear with Council especially when we have a late year appropriation that we probably won’t be able to
spend the entire amount.
Mayor Arndt; knowing this would help us and future Councils make better decisions.
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D.Oak Street Project
Matt Fater, Civil Engineering Director
Joe Wimmer, Utilities Finance Director
SUBJECT FOR DISCUSSION
Supplemental Appropriation Request for the Oak St. Stormwater Project
EXECUTIVE SUMMARY
The Oak Street Stormwater Project (OSSP) is currently under construction and progressing as planned.
Staff has identified the need for an additional $1,500,000 appropriation from the Stormwater Utility
Reserve Fund to supplement the existing appropriated budget. The additional appropriation will fund
remaining project support services as well as a minor contingency for unanticipated costs to complete
the project.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does the Council Finance Committee support an off-cycle appropriation of $1,500,000 from the
Stormwater Fund reserves to complete the Oak Street Stormwater Project?
BACKGROUND/DISCUSSION
The Oak Street Stormwater Improvement Project is a priority stormwater project for the City because it
will contribute to resolving the urban flooding and stormwater quality issues in downtown Fort Collins.
The project will provide stormwater infrastructure including a combination of grey and green
infrastructure to reduce flooding impacts along the Oak Street corridor and adjacent blocks. Large
diameter storm pipes ranging in size from 48” to 78” will extend from the previously constructed Oak
Street Outfall, starting at Mason Street and extending to Jackson Street near City Park. There will be
approximately 8,500 linear feet (LF) of new stormwater mains along Oak Street and cross streets that
extend north to Mountain Avenue and/or south to Olive Street. Green infrastructure includes water
quality ponds, or “rain gardens” in three locations along the Oak Street corridor to filter street runoff.
Additional information on the project and associated public outreach can be found here:
https://www.fcgov.com/utilities/oak-street-stormwater-improvements-project
The project started construction in July of 2024 with an anticipated completion of June 2026. To date,
approximately 30% of the work is completed which includes 772 LF of tunnelling and 1,417 LF of mainline
storm sewer.
The total appropriated budget, to date, for this project is $42,882,815. Previous city annual budgets
appropriated $2,920,000 and there was an off-cycle appropriation in 2023 for $39,962,815. The off-cycle
appropriation was for the municipal bond proceeds issued by the Stormwater Utility enterprise in the Fall
of 2023. The total project budget includes engineering, project and construction management, permitting,
and construction services with construction contract accounting for the most significant portion. In addition
to these elements of the project budget, typically a contingency of 5-10% would be included in the final
budget. However, this level of contingency was not included in the 2023 appropriation due to the timing
of the bidding and bonding processes. Instead, the project started construction with a contingency of less
than 1%.
The construction contract portion of the project has been progressing as planned with minimal
unanticipated expenses. However, the project expenses related to professional services, project
management, and other support services have exceeded original estimates. These are future expenses
for the project as the project moves into the second year of construction. There are also some minor
potential expenses associated with pending issues related to construction such as concrete and asphalt
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replacement and utility relocations that will likely be realized before the end of the project. In addition to
these known and pending expenses, a minor contingency (1.6%) is requested to cover unanticipated
expenses for the remaining portion of the project. Figure 1 summarizes the existing appropriations and
anticipated expenses as well as the requested appropriation to complete the project.
Figure 1 – Budget Summary
Staff requests a $1,500,000 supplemental appropriation from Stormwater Fund reserves based on the
budget analysis summarized in Figure 1. This level of contingency is relatively small for a project of this
magnitude. A typical construction contingency would be 5-10%. However, staff believes this is sufficient
to complete the project based on the progress to date and a risk assessment of the remaining work.
FINANCIAL IMPACT
The requested supplemental appropriation would be funded from Stormwater Fund reserves. This fund
has a sufficient balance with approximately $10.7M of available unencumbered reserves to cover this
appropriation.
DISCUSSION / NEXT STEPS
Kelly Ohlson; I am supportive, but I have a couple of questions. Was there a CORA request on this
project?
Tyler Marr; yes, I think that came through yesterday. I think it was a request for the general contracting
bids.
Kelly Ohlson; we talk about a normal contingency 5-10%. I see that this level was not included in the
original appropriation due to the timing of bidding and bonding processes.
Matt Fater; now that we are 8 months into the project and have been through some of the high-risk
areas like tunneling and deep excavation large diameter pipe, we feel comfortable with work that has
been done. Contingency for additional risk items moving forward is low
Kelly Ohlson; why didn’t you add the normal contingency at the beginning?
Matt Fater; that was due to the timing of when we got the bids and when the bond proceeds were
appropriated. It was decided at that time that we wouldn’t appropriate funds above what the bond
proceeds were. We would wait until we got into the project and make a determination.
Kelly Ohlson; I understand that you are close to hitting the numbers and that is good. There is some
wording in there are also some minor expenses for construction such as concrete and asphalt
replacement, utility relocations. Aren’t those things you would normally build in?
Matt Fater; we do build that into the bid but once you get out there – there is some variability of what
actually needs to be replaced, and it is not until you look at the field conditions and we need to make
that adjustment on the fly.
Kelly Ohlson; the project seems to be going well. Good work
Tricia Canonico; pending issues – have added a change order to some of the work.
Art in Public Places (APP) is doing a lot of the work for the project and contributed money for that.
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The project itself includes installing concrete vases and the design wasn’t in there before.
Mayor Arndt; This project embraces all of that in a real tangible way. What people are asking for is
actual results delivered on these ideas that we talk about all of the time like resiliency, heath, water
quality. This project does it all and it is so interesting to me how this project seems to be below the
radar. This is the 3rd largest project in the city’s history, and it lives out all of our values. It is the real
work of the real cities. Future generations won’t even know but they will thank you - Quality of life.
I am a huge fan – great job!
Meeting adjourned at 5:24 pm
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Council Committee Agenda Item Summary – City of Fort Collins Page 1 of 2
April 3, 2025
Choose an item.
CPA, Sr Accounting Manager
Plante & Moran presented the Results of the 2023 Financial Statement Audit this past October. While
unqualified opinion, two deficiencies were noted regarding grant expense reporting
STAFF RECOMMENDATION
Continued investment and maturation of Grant Administration across the City. Prioritizing governance,
training, and efficient compliance reporting to mitigate compliance risk, reduce overhead in tracking and
reporting, and optimize benefit from this critical funding source.
Reporting for the TID has been integrated into the City ACFR and processes adjusted to increase
collaboration with TID accounting support during the preparation of financial statements and annual audit.
Accounting has integrated Purchasing and IT into the process for identifying, tracking and accounting for
right-to-sue lease assets and Subscription Based IT Arrangements. Additionally, the team implemented
an application to more effectively manage right-to-use assets and the supporting accounting calculations
and entries.
BACKGROUND / DISCUSSION
A recap of Plante & Moran’s report dated June 29, 2024 is provided in summary for context.
Planned Scope and Timing of the Audit
We performed the audit according to the planned scope and timing previously communicated to you in
our letter about planning matters dated May 21, 2024.
Page 32 of 74
Council Committee Agenda Item Summary – City of Fort Collins Page 2 of 2
Corrected and Uncorrected Misstatements
•Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level
of management.
•The following material misstatements detected as a result of audit procedures were corrected by
management.
o The City had recorded a right-of-use asset and liability for a software-based information
technology arrangement for which the subscription period had not commenced, rather
than recording a prepaid item until the subscription commences.
o The City had recorded unavailable revenue and receivables related to grants for which
expenditures had been incurred but for which the grants had not been formally executed.
These unavailable revenue and receivable have been removed.
o The Tourism Improvement District is being included in the City’s financial statements as a
discretely presented component unit.
CITY FINANCIAL IMPACTS
Staff time to develop and implement process improvements and additional tracking for the oversight in
grant administration.
PUBLIC OUTREACH
None
ATTACHMENTS
1.CFC AIS_Mar25_FY23.pdf
2.FY23 Audit CAP_04.03.25_2.pptx
3.CFC AIS_SEP24.pdf
Page 33 of 74
Headline Copy Goes Here
Randy Bailey – Controller
Trevor Nash –CPA, Senior
Accounting Manager
Fiscal Year 2023
Audit Findings and
City Response
April 3, 2025
Page 34 of 74
Headline Copy Goes Here
2
FY23 Audit Response Timeline
1 2
4 3
5 6
START
Calendar Year
2023 Ends
FY23 Audit Conducted
by Plante Moran
ACFR and Audit
published
Auditor presentation
to Council Finance
Accounting begins process
improvement efforts
Audit response presentation
to Council Finance
Feb-April 2024
Sept 2024
Aug 2024 April 2025
END
June 2024
Dec 2023
Page 35 of 74
Headline Copy Goes Here
3
Council Finance Committee FY23 Audit Response
•Purpose: Provide an update on changes made to date in response to
the 2023 audit findings.
•Does Council Finance Committee have additional questions or
guidance concerning the 2023 audit?
Page 36 of 74
Headline Copy Goes Here
4
Audit Summary
Summary: City received an unmodified opinion.
•transactions entered by the City lacking authoritative guidance
•significant transactions that have been recognized in a different period than when thetransaction occurred
•difficulties encountered in performing the audit
•disagreements with management
Audit team encountered no:
•The City reported deferred inflows of resources and a receivable, for several Federal TransitAuthority (FTA) grants under pre-award authorization, prior to execution of grant agreements.
•The Tourism Improvement District had been improperly excluded from the financial statements.
Audit Findings: Two material weaknesses
Page 37 of 74
Headline Copy Goes HereFinding #1 – FTA Grant Pre-Award Authority
5
City Response
Cause: Interpretation of GASB 33 paragraph 15 and GASB Implementation Guide 2019+1 Question 4.7 differed between the City Accounting team and Plante Moran
Short-Term Response:
1.Removed incorrect amounts from out books
2. Amended FY22 and FY23 Schedule of Expenditures ofFederal Awards
3.Revised Grants accounting processes to include a crosscheck against grant execution date
4.Improved communication between TransportationDepartment and the Accounting Department
Long-Term Response:
1.Revising Grant Administration Policy
2. Maturing process documentation
3.Onboarding Grant Accountant
4. Collaborating with project managers and finance liaisonsacross the City to standardize reporting and provideadditional training and job aids
Per Plante Moran Independent Auditor’s Report
Finding: The City reported deferred inflows of
resources and a receivable for several Federal
Transit Authority (FTA) grants under which pre-
award spending had begun prior to the end of the
reporting period but grant agreements had not been
executed. A total of $5.68 million was incorrectly
recognized as a receivable and deferred inflows of
resources during the year.
Finding Type: Material Weakness
Recommendation: The City should only recognize
receivables and deferred inflows of resources
related to grants for which a grant agreement has
been executed.
Page 38 of 74
Headline Copy Goes HereFinding #2 – TID Exclusion
6
City Response
Cause: Interpretation of GASB 33 paragraph 15 and
GASB Implementation Guide 2019+1 Question 4.7
differed between the City Accounting team and Plante
Moran
Short-Term Response:
1.TID was added to our ACFR
2.Improved communication between TID and City Staff
3. TID has hired new accounting support
Per Plante Moran Independent Auditor’s Report
Finding: The City appoints the voting majority of the
Fort Collins Tourism Improvement District's (TID) board
and also has responsibility to approve the TID's budget,
and, as such, the City is financially accountable for the
TID. As the TID reached a level in fiscal year 2023 that
was considered material to the applicable opinion unit –
aggregate discretely presented component units – it
should be included in the City's financial statements.
Finding Type: Material Weakness
Recommendation: The City should consider the
applicable opinion unit in determination of which
organizations should be included within the financial
reporting entity.
Page 39 of 74
Headline Copy Goes HereContinuous Improvement – GASB 87 / 96
7
City Response
Cause:This issue was caused by a
misinterpretation of GASB 87 paragraph 38 and
GASB 96 paragraph 30. Situations where the City
is paying subscription fees for assets not yet in
service are rare, and City staff misinterpreted the
specific language of the new standards as it applied
to one situation at the City.
Short-Term Response:
1.The incorrect entry was removed from the City's
books.
2. Additional accounting procedures were put in
place to ensure that lease and software assets
were placed in service before implementation of
these standards.
3. Additional general ledger tracking mechanisms
were created to track expenses covered under
this rule.
Per Plante Moran Independent Auditor’s Report
Finding: The City had recorded a right-of-use asset and
liability for a software-based information technology
arrangement for which the subscription period had not
commenced, rather than recording a prepaid item until
the subscription commences.
Finding Type: Verbal Deficiency
Recommendation: The City should establish segregation
in general ledger to differentiate prepaid expenditures to
be amortized as part of the right-to-use asset from
operating expenditures supporting the implementation of
the asset.
Page 40 of 74
Headline Copy Goes Here
8
Question
•Does Council Finance Committee have additional questions or
guidance concerning the 2023 audit?
Page 41 of 74
Page 42 of 74
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Randy Bailey, Accounting Director
Trevor Nash, CPA, Controller
Josh Yde, CPA, Plante & Moran, PLLC
Timothy St. Andrew, CPA, Plante & Moran, PLLC
Date: October 3, 2024
SUBJECT FOR DISCUSSION
Independent Auditors’ Report on 2023 Financial Statements
Independent Auditors’ Report on Compliance for Major Federal Programs
EXECUTIVE SUMMARY
Plante & Moran will be presenting an overview of the Results of the 2023 Financial Statement
Audit.
This report covers the audit of the basic financial statements and compliance of the City of Fort
Collins for year-end December 31, 2023.
NOTE: The Annual Comprehensive Financial Report is available in print on request, and
accessible online here:
https://www.fcgov.com/finance/files/fy23-acfr-final-web-version.pdf?1724173021
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Staff seeks input on areas of priority or concern, other than those established in this Report to the
City Council, for matters of recordkeeping and/or the City’s internal control environment.
Otherwise, there are no specific questions to be answered as this is a 2023 year-end report.
BACKGROUND/DISCUSSION
In compliance with Government Auditing Standards, the City undergoes an independent external
audit on an annual basis. Plante & Moran finalized its financial statement audit and compliance
report on June 29, 2024, and the firm is required to report the results of the audit to those charged
with governance.
Attachment 1 to this agenda item contains the full report, findings of note are summarized below:
Identified Deficiencies (Attachment 1, pages 3-5):
Other findings/deficiencies identified by the auditors but not rising to the level of a significant
deficiency can be found in the Report to the City Council. Staff will provide a written response
to the audit findings at a fourth quarter Council Finance Committee meeting.
The final 2023 Single Audit report on Compliance for Major Federal Programs is expected to
complete by the third week of October and will be provided to Council Finance Committee at
that time.
ATTACHMENTS
1. Results of the 2022 Financial Statement Audit
Page 43 of 74
1
June 29, 2024
To the Honorable Mayor and
Members of the City Council
City of Fort Collins, Colorado
We have audited the financial statements of the City of Fort Collins, Colorado (the “City”) as of and for the
year ended December 31, 2023 and have issued our report thereon dated June 29, 2024. Professional
standards require that we provide you with the following information related to our audit, which is divided
into the following sections:
Section I - Required Communications with Those Charged with Governance
Section II - Legislative and Informational Items
Section I communicates significant matters related to the audit that are, in our professional judgment,
relevant to your responsibilities in overseeing the financial reporting process.
Section II presents legislative and other general information. These comments are offered in the interest of
helping the City in its efforts toward continuous improvement.
We would like to take this opportunity to thank the City’s staff for the cooperation and courtesy extended to
us during our audit. Their assistance and professionalism are invaluable.
This report is intended solely for the use of the City Council and management of the City of Fort Collins,
Colorado and is not intended to be and should not be used by anyone other than these specified parties.
We welcome any questions you may have regarding the following communications, and we would be willing
to discuss these or any other questions that you might have at your convenience.
Very truly yours,
Plante & Moran, PLLC
Timothy St. Andrew, CPA
Partner
Joshua L. Yde, CPA
Principal
Page 44 of 74
2
Section I - Required Communications with Those Charged with Governance
Our Responsibility Under U.S. Generally Accepted Auditing Standards
As stated in our engagement letter dated March 22, 2024, our responsibility, as described by professional
standards, is to express an opinion about whether the financial statements prepared by management with
your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted
accounting principles. Our audit of the financial statements does not relieve you or management of your
responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute,
assurance that the financial statements are free of material misstatement.
As part of our audit, we considered the internal control of the City. Such considerations were solely for the
purpose of determining our audit procedures and not to provide any assurance concerning such internal
control.
We are responsible for communicating significant matters related to the audit that are, in our professional
judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are
not required to design procedures specifically to identify such matters.
Our audit of the City’s financial statements has also been conducted in accordance with Government
Auditing Standards, issued by the Comptroller General of the United States. Under Government Auditing
Standards, we are obligated to communicate certain matters that come to our attention related to our audit
to those responsible for the governance of the City, including compliance with certain provisions of laws,
regulations, contracts, and grant agreements; certain instances of error or fraud; illegal acts applicable to
government agencies; and significant deficiencies in internal control that we identify during our audit.
Toward this end, we issued a separate letter dated June 29, 2024 regarding our consideration of the City’s
internal control over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements.
Planned Scope and Timing of the Audit
We performed the audit according to the planned scope and timing previously communicated to you in our
letter about planning matters dated May 21, 2024.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. In accordance with
the terms of our engagement letter, we will advise management about the appropriateness of accounting
policies and their application. The significant accounting policies used by the City are described in Note I
to the financial statements.
As described in Note I, the City changed accounting policies related to the implementation of the following:
GASB Statement No. 96, Subscription-Based Information Technology Arrangements. This statement
provides guidance on accounting and financial reporting for subscription-based information technology
arrangements. Under this statement, the City is required to recognize a right-of-use subscription asset
and corresponding subscription liability. Accordingly, the accounting change has been retrospectively
applied to prior periods presented as if the policy had always been used.
We noted no transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus.
There are no significant transactions that have been recognized in the financial statements in a different
period than when the transaction occurred.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ significantly
from those expected.
Page 45 of 74
3
Section I - Required Communications with Those Charged with Governance
(Continued)
The most sensitive estimate affecting the financial statements was the net pension liability and associated
balances. Management’s estimate is based on discount rates, rate of return, and other assumptions, which
are used by an actuary to calculate the net pension liability. We evaluated the key factors and assumptions
used to develop the estimate in determining that it is reasonable in relation to the financial statements taken
as a whole.
The disclosures in the financial statements are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in performing and completing our audit.
Disagreements with Management
For the purpose of this letter, professional standards define a disagreement with management as a financial
accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant
to the financial statements or the auditor’s report.
We are pleased to report that no such disagreements arose during the course of our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management.
The following material misstatements detected as a result of audit procedures were corrected by
management.
The City had recorded a right-of-use asset and liability for a software-based information technology
arrangement for which the subscription period had not commenced, rather than recording a prepaid
item until the subscription commences.
The City had recorded unavailable revenue and receivables related to grants for which expenditures
had been incurred but for which the grants had not been formally executed. These unavailable revenue
and receivable have been removed.
The Tourism Improvement District is being included in the City’s financial statements as a discretely
presented component unit.
The attached schedule summarizes uncorrected misstatements of the financial statements. Management
has determined that their effects are immaterial, both individually and in the aggregate, to the financial
statements taken as a whole. However, uncorrected misstatements or matters underlying those
uncorrected misstatements could potentially cause future period financial statements to be materially
misstated.
Significant Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, business conditions affecting the City, and business plans and strategies that may affect the
risks of material misstatement, with management each year prior to our retention as the City’s auditors.
However, these discussions occurred in the normal course of our professional relationship, and our
responses were not a condition of our retention.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated June 29, 2024.
Page 46 of 74
4
Section I - Required Communications with Those Charged with Governance
(Continued)
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a second opinion on certain situations. If a consultation involves application of
an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion
that may be expressed on those statements, our professional standards require the consulting accountant
to check with us to determine that the consultant has all the relevant facts.
To our knowledge, there were no such consultations with other accountants.
Other Information Included in Annual Reports
Our responsibility for other information included in annual reports does not extend beyond the financial
statements, and we do not express an opinion or any form of assurance on the other information. However,
we read the introductory section, statistical section, and other schedules of the Annual Comprehensive
Financial Report, and nothing came to our attention that caused us to believe that such information, or its
manner of presentation, is materially misstated or materially inconsistent with the information or manner of
its presentation appearing in the financial statements.
Page 47 of 74
5
Attachments
Client:City of Fort Collins, Colorado
Opinion Unit:Governmental Activities
Y/E:12/31/2023
Ref. #Description of Misstatement
Current
Assets
Long-term
Assets
Deferred
Outflows of
Resources
Current
Liabilities
Long-term
Liabilities
Deferred
Inflows of
Resources Equity Revenue Expenses
Net Income
Statement
Impact
FACTUAL MISSTATEMENTS:
A1
New SBITAs and leases should be booked as
other financing sources on fund statements and
not as revenues on full accrual statements (5,447,261)$ (5,447,261)$ -$
A2 Entry to correct accumulated depreciation for
mechanical equipment purchased but not
entered into fixed asset system (1,127,489)$ 1,127,489 (1,127,489)
-
JUDGMENTAL ADJUSTMENTS:-
B1 None -
-
PROJECTED ADJUSTMENTS:
C1 None -
-$ - -$ -$ -$-$ -$ -- -
Total -$ (1,127,489)$ -$ -$ -$-$ -$ (5,447,261)$ (4,319,772)$ (1,127,489)$
D1
The effect of misstatements and classification errors identified would be to increase (decrease) the reported amounts in the financial statement
categories identified below:
SUMMARY OF UNRECORDED POSSIBLE ADJUSTMENTS
PASSED DISCLOSURES AND FINANCIAL STATEMENT PRESENTATION ISSUES:
The financial reporting presentation of the Sales and Use Tax Fund is not consistent with GAAP (GASB 54, para. 30).
Client:City of Fort Collins, Colorado
Opinion Unit:General Fund
Y/E:12/31/2023
Ref. # Description of Misstatement Current Assets
Long-term
Assets
Deferred
Outflows of
Resources
Current
Liabilities
Long-term
Liabilities
Deferred
Inflows of
Resources Equity Revenue Expenses
Net Income
Statement
Impact
FACTUAL MISSTATEMENTS:
A1 New SBITAs and leases should be booked as
other financing sources and capital outlay on
fund statements 584,781$ 584,781$ -$
-
JUDGMENTAL ADJUSTMENTS:-
B1 None -
-
PROJECTED ADJUSTMENTS:
C1 None -
-$ -$-$-$-$ -$-$ -- -
Total -$ -$-$-$-$ -$-$584,781$ 584,781$ -$
D1
SUMMARY OF UNRECORDED POSSIBLE ADJUSTMENTS
The effect of misstatements and classification errors identified would be to increase (decrease) the reported amounts in the financial statement
categories identified below:
PASSED DISCLOSURES AND FINANCIAL STATEMENT PRESENTATION ISSUES:
The financial reporting presentation of the Sales and Use Tax Fund is not consistent with GAAP (GASB 54, para. 30).
Client:City of Fort Collins, Colorado
Opinion Unit:Aggregate Remaining Fund Info
Y/E:12/31/2023
Ref. #Description of Misstatement Current Assets
Long-term
Assets
Deferred
Outflows of
Resources
Current
Liabilities
Long-term
Liabilities
Deferred
Inflows of
Resources Equity Revenue Expenses
Net Income
Statement
Impact
FACTUAL MISSTATEMENTS:
A1 New SBITAs and leases should be booked as
other financing sources on fund statements and
not as revenues on full accrual statements
(4,038,720)$ (4,038,720)$ -$
-
JUDGMENTAL ADJUSTMENTS:-
B1 None -
-
PROJECTED ADJUSTMENTS:
C1 None -
-$ -$-$-$-$-$-$ -- -
Total -$ -$-$-$-$-$-$(4,038,720)$ (4,038,720)$ -$
D1
SUMMARY OF UNRECORDED POSSIBLE ADJUSTMENTS
The effect of misstatements and classification errors identified would be to increase (decrease) the reported amounts in the financial statement categories
identified below:
PASSED DISCLOSURES AND FINANCIAL STATEMENT PRESENTATION ISSUES:
None
Page 48 of 74
6
Section II - Legislative and Informational Items
Monitoring Lease, SBITA, and PPP Activity
GASB Statements No. 87, Leases; No. 96, Subscription-Based Information Technology Arrangements
(SBITAs); and No. 94, Public-Private and Public-Public Partnerships (PPP) and Availability Payment
Arrangements, were effective in fiscal years 2022 and 2023. Although significant analyses were performed
to determine the applicability of the new standards and record any necessary adjustments, we want to
stress the importance of implementing ongoing monitoring procedures over lease, SBITA, and PPP activity.
When the City enters into new leases, SBITAs, or PPPs; existing agreements are modified; or other facts
and circumstances change, consideration must be given to the impact those changes will have on lease,
SBITA, and PPP accounting. In order to do so, the City must ensure there is a process in place to identify
and appropriately account for new leases, SBITAs, or PPPs or changes to existing agreements on an
ongoing basis or at least at the end of each year.
Cybersecurity and Information Technology Controls
Cyberattacks are on the rise across the globe, and the cost of these attacks is ever increasing. Because of
these attacks, municipalities stand to lose their reputation, the ability to operate efficiently, and proprietary
information or assets. Communities potentially can also be subject to financial and legal liabilities. Managing
this issue is especially challenging because even a municipality with a highly mature cybersecurity risk
management program still has a residual risk that a material cybersecurity breach could occur and not be
detected in a timely manner. We understand that the technology department continues to monitor and
evaluate this risk, which are critical best practices. Additionally, periodic assessment of the system in order
to verify that the control environment is working as intended is a key part of measuring associated business
risk. We encourage administration and those charged with governance to work with the technology team
on this very important topic. If we can be of assistance in the process, we would be happy to do so.
OMB Proposed Revisions to the Uniform Guidance
In October 2023, the Office of Management and Budget (OMB) posted proposed revisions for the Uniform
Guidance for federal grants and agreements. The proposed guidance clarifies the applicability of
requirements and terminology and includes some relaxation and clarification of certain requirements that
required prior approval from federal regulators. A few key proposed changes include the following:
Increase the audit threshold to $1 million from $750,000
Increase the de minimis indirect cost rate from 10 percent to 15 percent
Require the schedule of expenditures of federal awards (SEFA) to identify recipient of federal award
for audits that cover multiple recipients
The proposed changes are included in more detail within the federal register at https://www.federalregister
.gov/documents/2023/10/05/2023-21078/guidance-for-grants-and-agreements.
Plante & Moran, PLLC will continue to monitor any changes to the Uniform Guidance, and we encourage
the City to monitor developments in this area.
Other New Guidance
Upcoming Accounting Standards Requiring Preparation
We actively monitor new Governmental Accounting Standards Board (GASB) standards and due process
documents and provide periodic updates to help you understand how the latest financial reporting
developments will impact the City. In addition to the summaries below and to stay up to date, Plante &
Moran, PLLC issues a biannual GASB accounting standard update. The most recent update and a link to
previous fall and spring updates are available here.
Page 49 of 74
7
Section II - Legislative and Informational Items
(Continued)
GASB Statement No. 99 - Omnibus 2022
This new accounting pronouncement has various effective dates. This statement addresses accounting
and financial reporting requirements for specific issues related to financial guarantees, derivative
instruments, leases, public-public and public-private partnerships (PPPs), subscription-based information
technology arrangements (SBITAs), the transition from the London Interbank Offered Rate (LIBOR), the
Supplemental Nutrition Assistance Program (SNAP), nonmonetary transactions, pledges of future revenue,
the focus of government-wide financial statements, and terminology.
GASB Statement No. 100 - Accounting Changes and Error Corrections
This new accounting pronouncement will be effective for fiscal years ending June 30, 2024 and after. This
statement enhances the accounting and financial reporting requirements for accounting changes and error
corrections.
GASB Statement No. 101 - Compensated Absences
This new accounting pronouncement will be effective for fiscal years ending December 31, 2024 and after.
The statement requires all compensated absences be reported under a new unified model that provides
recognition and measurement guidance for all compensated absences that meet certain criteria. This is a
major shift from the prior standards that provided different recognition and measurement guidance for
vacation leave versus sick leave. Under the new standard, all compensated absences (with some
exceptions like parental leave and military leave) that meet three criteria are to be recognized (accrued).
The three criteria are (1) the absence accumulates, (2) the absence is attributed to services already
performed, and (3) the absence is more likely than not to be either paid or settled through other means.
A few of the more significant changes from prior guidance include the elimination of specific recognition
criteria for sick leave (GASB 16’s termination payment method and vesting method) in lieu of standard
recognition criteria for all types of compensated absences that meet the criteria. In addition, the prior
standards used the “probable criteria” as a measurement stick for recognition; GASB 101 lowers that
threshold to more likely than not. More likely than not means a likelihood of more than 50 percent. Because
GASB 101 does not prescribe the manner in which these leave liabilities are estimated once the criteria are
met, organizations will have significant latitude in how these estimates are determined. Because of this,
there may be additional reporting and additional disaggregation of historical employee leave usage
information that may be required in order to come up with an accurate estimate of these liabilities. We
strongly suggest organizations start thinking about these changes now, brainstorm estimation
methodologies, and begin gathering the necessary information in order to successfully adopt this new
standard.
GASB Statement No. 102 - Certain Risk Disclosures
This new accounting pronouncement will be effective for fiscal years ending June 30, 2025 and after. This
statement requires a government to assess whether a concentration or constraint makes the primary
government or other reporting units that report a liability for revenue debt vulnerable to the risk of a
substantial impact. It also requires a government to assess whether an event or events associated with a
concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or
are more likely than not to begin to occur within 12 months of the date of the financial statements are issued.
If certain criteria are met for a concentration or constraint, disclosures are required in the notes to the
financial statements.
GASB Statement No. 103 - Financial Reporting Model Improvements
This new accounting pronouncement will be effective for fiscal years ending June 30, 2026 and after. This
statement establishes new accounting and financial reporting requirements, or modifies existing
requirements, related to the following: management’s discussion and analysis; unusual or infrequent items;
presentation of the proprietary fund statement of revenue, expenses, and changes in fund net position;
information about major component units in basic financial statements; budgetary comparison information;
and financial trends information in the statistical section.
Page 50 of 74
8
Section II - Legislative and Informational Items
(Continued)
Significant GASB Proposals Worth Watching
The Revenue and Expense Recognition project aims to develop a comprehensive accounting and financial
reporting model for transactions that result in revenue and expenses. The GASB has issued a preliminary
views document that proposes a new categorization framework that replaces the exchange/nonexchange
transaction notion with a four-step categorization process for classifying a transaction. In addition to this
new framework, the proposal also addresses recognition and measurement of revenue and expense
transactions. The exposure draft for this project is expected sometime in 2025.
Plante & Moran, PLLC has spent significant time digesting this new proposed standard and recently testified
to the GASB about our feedback. We strongly encourage the City to monitor developments with this
standard, as the potential impact is quite broad.
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Page 51 of 74
City of Fort CollinsDecember 31, 2023Audit Presentation to City Council Finance Committee
1Page 52 of 74
Agenda
Financial Statement Audit
Required Post-AuditCommunications
Federal Single Audit
2Page 53 of 74
Financial Statement Audit
•Unmodified opinion
•New accounting standard implemented –GASB 96: Subscription-Based InformationTechnology Arrangements
•Audit results
3Page 54 of 74
Required Post-Audit Communications
•Significant Audit Findings
•No transactions entered into by the City lackingauthoritative guidance
•No significant transactions that have been recognizedin a different period than when the transactionoccurred
•No difficulties encountered in performing the audit
•No disagreements with management
•Summary of Unrecorded Possible Adjustmentsincludes adjustments related to subscription-based ITarrangements, accumulated depreciation, and year-end activity related to the Tourism ImprovementDistrict
4Page 55 of 74
Required Post-Audit Communications
•Significant Audit Findings
•Material Weaknesses
The City reported deferred inflows of resources and areceivable for several Federal Transit Authority (FTA)grants under which pre-award spending had begun priorto the end of the reporting period but grant agreementshad not been executed
The Tourism Improvement District had been improperlyexcluded from the financial statements
5Page 56 of 74
Federal Single Audit
6
•Federal expenditures of $29.4 million
•Three major programs tested in 2023
o ALN 14.218 – Community Development Block Grants
o ALN 20.205 – Highway Planning and Construction
o ALN 21.027 – Coronavirus State and Local Fiscal RecoveryFunds
•Unmodified opinions expected
•Federal award findings – material weakness relatedto reporting of expenditures on the SEFA prior toexecuted grant agreements
Page 57 of 74
Thank you
Timothy.StAndrew@plantemoran.com - 313.496.8542
Josh.Yde@plantemoran.com - 734.302.6921
7Page 58 of 74
Page 59 of 74
Council Committee Agenda Item Summary – City of Fort Collins Page 1 of 2
April 3, 2025
Finance Committee
STAFF
Josh Birks, Deputy Director, Sustainability Services &
The Fort Collins Urban Renewal Authority (the “Authority”) will be issuing additional bonds against the
North College projected tax increment revenues. The bond proceeds will be used to fund the acquisition
of blighted properties, support blight remediation through redevelopment of the same properties, and
igation
bond ratings and
Council would consider a Replenishment Resolution that
STAFF RECOMMENDATION
Staff recommends forwarding the item to the full City Council for consideration at an upcoming meeting.
BACKGROUND / DISCUSSION
In 2018, the Authority commissioned a professional third-party analysis of opportunities for potential
investment within the North College Urban Renewal Plan Area (the “Plan Area”). The analysis culminated
in a report, and in 2019, the report was followed and considered by key community stakeholders. The
report culminated with three categories of proposed investment and targeted allocations for each:
1. Complete, Vibrant neighborhoods (25%)
2. Community Hub (50%)
3. Infrastructure Improvements (25%)
Since 2020 and the completion of the Community Investment Plan, an assortment of opportunities,
challenges, and policy objectives have emerged. The Authority has responded to these opportunities by
entering into purchase and sale agreements for two blighted properties, pursuing additional blighted
properties within the plan area, considering support of a proposed middle income deed restricted housing
project, support of pedestrian improvements at the intersection of Jerome and Vine Drive.
Page 60 of 74
Council Committee Agenda Item Summary – City of Fort Collins Page 2 of 2
Current Authority Plans
At this time, the Authority is considering a range of investments that could total over $19.2 million.
Current cash on hand (approximately $8.0 million) falls short of this amount. At the end of 2024, Authority
staff ask the Authority’s municipal advisor (Melissa Buck with UMB) to analyze a number of scenarios to
fund the proposed projects. These scenarios included pay-as-you-go and issuing bonds. The projected
cash balance, both now and in the future, will not fund the projects based on current anticipated timing.
However, an initial analysis suggests that the projected TIF to be collected within the Plan Area could be
leveraged into a bond issuance of approximately $12.4 million. This would create cash-on-hand sufficient
to meet the projected needs of the Authority.
City’s Moral Obligation Pledge
The Authority is seeking a moral obligation from the City to receive a more favorable bond rating and
interest rate. The moral obligation expresses the City’s intent to meet any debt service obligations under
the bond issuance in the event the Authority defaults. However, the City will not be legally obligated to
make any debt service payments in the event of default by the Authority. In addition, any such payments
by the City will be subject to appropriation by City Council, which the Council may elect in its sole
discretion to do or not. Furthermore, the City and Authority will enter into a Cooperation Agreement to
govern the terms and conditions surrounding any payments made by the City should the Authority default
on the bonds.
Past Moral Obligation Pledges
The City has provided moral obligations pledges on all previous Authority revenue bonds. These include
both the North College Series 2013 Revenue Bonds and the Prospect South Series 2019 Revenue
Bonds. Since those pledges, the Authority has made on-time and full payments on each of those Bonds.
Additionally, current financial forecasts indicate that the Authority will have sufficient revenue – barring
any unforeseen changes in property values – to make all remaining payments.
CITY FINANCIAL IMPACTS
The City’s moral obligation result in more favorable bond rating and interest rate for the Authority. This
will enable the Authority to expend more of the available TIF on blight remediation and improvements to
the Plan Area. At the termination of the TIF collection period, this will result in increased property tax
revenues to the City and may translate into additional revenues through sales tax or other sources.
The moral obligation pledge remains contingent upon further Council action – most importantly the need
to appropriate any funds necessary to meet the debt service obligations of the Authority under the bonds.
The financial risk to the City comes from any potential changes to TIF collection or property values in the
area. At this time, the Authority is not aware of any recent events or factors that might affect the tax base
of the Plan Area or Authority’s operations or financial condition.
PUBLIC OUTREACH
None
ATTACHMENTS
1.Proforma for Proposed North College Series 2025 Revenue Bonds
2.Staff Presentation
Page 61 of 74
Headline Copy Goes Here
Deputy Director, Sustainability Services
Acting Exec. Director, Fort Collins Urban
Renewal Authority
Josh Birks
North College:
2025 URA Bond
Issuance
04-03-2025
Page 62 of 74
Headline Copy Goes Here
2
Overview and Request
Action Requested
Advance the
consideration of a
“Moral Obligation Pledge”
to Council.
Bottom Line
Bond proceeds will finance
critical projects to
remediate blight and
nuisance properties.
Outcome
Supports North College
revitalization with minimal
City financial risk, in line
with past Council support for
urban renewal projects.
Page 63 of 74
Headline Copy Goes Here
3
Moral Obligation Pledge – A Proven Approach
What It Is
•A pledge to consider replenishing the URA’s debt service reserve if ever needed, subject to annual appropriation (not a legally binding debt guarantee). This mechanism boosts investor confidence and lowers the URA’s interest costs.
Consistent with City Policy
•Used only for “highest priority projects” where City risk is minimal and credit standing is not impacted. Fort Collins has successfully utilized moral obligation pledges in past URA revitalization efforts (e.g. North College Series 2013 and South Prospect Series 2019).
No Impact on City’s Budget Unless Needed
•The City is not obligated to pay under this pledge unless TIF revenues fall short (an unlikely scenario given strong financial projections). This approach mirrors past City actions and demonstrates our continued partnership.
Page 64 of 74
Headline Copy Goes HereMitigating Blight Within the North College TID
4
Item Amount
Bond Capital $12,400,000
Cash Balance $8,000,000
Available for Use $20,400,000
Less: Known/Potential Projects
Albertson’s Acquisition ($7,700,000)
1513 N. College Acquisition ($2,150,000)
Supporting 302 Conifer ($3,200,000)
Subtotal ($13,050,000)
Less: Additional Blight Remediation
Activities ($6,000,000)
Remaining Balance $1,350,000
•Authority Cash
Balance. Insufficient
to meet immediate
needs
•Additional blight
remediation actions.
~$6.0 million
•Projected Short Fall.
$11.15 million
•Activities planned for
the next 12-24
months.
Page 65 of 74
Headline Copy Goes Here
5
Leveraging TIF Before It Expires
1 2
5 46
8
START
2004
Establishment
North College
TID created
2013
APRIL 3rdAPRIL 22ndAPRIL 24th
MAY 30th
First Issuance
URA issued bonds
with City moral
obligation pledge
Council Consent
Consider
Replenishment
Resolution
Authorization
URA Approves
Bond Sale
Closing
Anticipated
Delivery of
Funds.
END
Council Finance
Request Moral
Obligation
7
May 15th
Bond Sale
Target Bond
Sale Date
3
Jan. 9th
URA Finance
Initial Discussion
9
2029
TID Expires
Property Tax
Increment
Received
Through 2030.Page 66 of 74
Headline Copy Goes Here
FYE 2025 2026 2027 2028 2029 2030 2031
Revenues
TIF 4,204,451 4,288,540 4,288,540 4,374,310 4,374,310 4,461,797 -
Bond Proceeds (New money net of COI, etc.)12,400,000 - - - - - -
Other (Investment Income, etc.)16,000 12,000 12,000 10,000 10,000 -
Total 16,620,451 4,300,540 4,300,540 4,384,310 4,384,310 4,461,797 -
Expenditures
Cash Funded Projects (8,000,000)
Bond Funded Projects (12,400,000) -
Series 2013 Debt Service (946,363) (945,363) (948,163) (944,563) (948,675)
Series 2025 Debt Service* (2,323,179) (2,389,500) (2,383,250) (2,452,750) (2,449,000) (3,470,250)
Other Debt Service (27,591)
Operations & Project Supplements (From FCURA Financial Forecast)*(594,827) (360,510) (377,727) (391,742) (400,353) 86,678
Trustee Fees*(4,000) (4,000) (4,000) (4,000) (4,000) (4,000)
County Collection Fee (2.00%)(84,089) (85,771) (85,771) (87,486) (87,486) (89,236) -
Developer Payments (From FCURA Financial Forecast)(26,791) (28,311) (29,406) (30,187) (31,338) (32,167) (35,241)
Total (24,406,840) (3,813,454) (3,828,316) (3,910,728) (3,920,852) (3,508,975) (35,241)
Operating Income Over/(Under)(7,786,389) 487,085 472,223 473,583 463,458 952,822 (35,241)
BOP Net Available Fund Balance 10,489,588 2,703,199 3,190,284 3,662,507 4,136,090 4,599,548 5,552,370
2,703,199 3,190,284 3,662,507 4,136,090 4,599,548 5,552,370 5,517,129 Ending Net Available Fund Balance
URA Financial Stability and Debt Service Coverage
6
Strong Revenue Stream: Forecasts show revenues sufficient to cover existing and proposed debt, City’s
pledge unlikely to ever been called upon.
Healthy Reserves: The URA is projected to hold ~$2.6M (2025), growing to ~$5.5M (2030).
* Preliminary, subject to change. Assumes City of Fort Collins Moral Obligation on proposed Series 2025 Bonds. Page 67 of 74
Headline Copy Goes Here
7
Key Takeaways
Remedies Blight Now
•Enables critical projects and acquisitions without delay
•Creating the opportunity for community revitalization
Leverages Existing Taxes
•Smartly uses TIF revenues before they expire
Financially Sound Plan
•Proposed debt is conservatively sized
•Conservative forecast keep’s City’s financial exposure very low
•“Moral Obligation Pledge” follows established practices, involves no new
taxes, or voter approved debt
Strengthens Partnership with the City
•Similar City support has empowered the URA in the past
•URA’s objectives align with the City’s vision for safe, vibrant, and inclusive
neighborhoods
Page 68 of 74
Headline Copy Goes HereRecommended Direction
Advance consideration of a “Moral Obligation Pledge”
for the URA 2025 Revenue Bonds to the full Council.
Page 69 of 74
Headline Copy Goes Here
Page 70 of 74
Headline Copy Goes Here
10
Financing Options
Pay As You Go
Projected short fall of
$11.5M
URA may only be
able to acquire
and remediate
some of the
target properties in the near term
Does not allow
URA to fully
leverage TIF
revenues before
TID expiration
Issue Additional Bonds
Targeted Blight
Remediation
Enables the URA
to acquire and
redevelop several
blighted
“nuisance”
properties.
These sites have histories of crime, code issues, and disinvestment.
Community Impact
Improves public
safety and
neighborhood
image
Redevelopment
could include new
affordable/attaina
ble housing,
community hubs,
or businesses to
take root where
only blight
previously
existed.
Aligns with
City Priorities
Addresses
properties
identified under
the City’s public
nuisance
ordinance, turning
liabilities into
community assets
Page 71 of 74
Page 72 of 74
Community Services
215 N. Mason
Fort Collins, CO 80522
fcgov.com
MEMORANDUM
DATE: April 3, 2025
TO: Council Finance Committee
FROM: Katie Donahue, Natural Areas Director
RE: Natural Areas Annual Reappropriation
______________________________________________________________________
The purpose of this memorandum is to inform the Council Finance Committee of a
request for the Natural Areas annual reappropriation.
Background
This is the annual reappropriation and appropriation of Natural Areas Department (NAD)
reserves into 2025. This proposal addresses funding for the Natural Areas Department
for purposes other than capital projects, which lapse each year if not spent. Unspent
prior year funds and unanticipated revenues need to be appropriated into the
following year’s budget before they can be used. The former City CFO recommended
sharing this information with the Council Finance Committee ahead of first reading for
the full City Council.
A total of $6,179,035 is being requested in this year’s proposal. Of this amount:
• $5,736,035 is from unspent funds that have already been appropriated for the same
purpose in previous years.
• $443,000 is being requested for new appropriations to cover additional projects and
needs.
Anticipated use of the funds are as follows:
Purpose Total
Requested Previously New Description
$5,100,000 $5,100,000 $0
Grassland
Health $439,636 $439,636 $0 deconstruction of structures,
Strategic
Framework $136,399 $136,399 $0 Framework and Arapaho Bend
Page 73 of 74
New
Cameras &
Equipment
and Electric
Vehicle Fleet
$303,000 $60,000 $243,000
Purchase of new cameras for
several natural areas and
equipment replacement.
Addition of vehicles needed for
field work.
Asset
Management $200,000 $200,000 lifecycle and planning capital
These appropriations will allow the NAD to continue its critical work in land
conservation, asset management, and necessary updates to equipment and
infrastructure.
Next Steps
Staff will schedule these items for 1st Reading on the April 15, 2025 Council Meeting for
consideration by Council.
Page 74 of 74