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HomeMy WebLinkAboutMemo - Mail Packet - 10/14/2025 - Memorandum from Lawrence Pollack re September 23 Council work session follow up questions and requests regarding the 2026 Budget Revisions 1 Work Session Memorandum Date: October 9, 2025 To: Mayor and City Councilmembers Through: Kelly DiMartino, City Manager Caleb Weitz, Chief Financial Officer From: Lawrence Pollack, Budget Director Subject: September 23 Council work session follow up questions and requests regarding the 2026 Budget Revisions The 2026 Budget Revisions were presented to City Council at their September 23 work session. Councilmembers raised concerns about a few of the proposed reductions and staff will provide additional information at the next work session. This memo contains the follow up questions and requests that were not addressed during the conversation. The next step of the 2026 Budget Revision process is the Council work session scheduled for October 14. That conversation will include a focus on the Utilities’ financial performance in 2025 and 2026 rate increases currently included in the adopted 2025-2026 Budget. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1) Please clarify the difference between frozen positions and eliminated positions, as well as any overlap between those Response: Attachment #1 lists all vacant frozen positions as of September 30. It includes visibility to which of those positions are also proposed for elimination in the 2026 Budget Revisions. The temporary hiring freeze is proposed to be in force in full for the rest of 2025 and through Q1 2026, while allowing for City Manager approvals for positions deemed critical to move forward with hiring. Similarly, as additional vacancies occur during the rest of 2025 and in Q1 2026, the City Manager will be able to approve Service Area Director requests to swap out a new vacant position for one that is going to be eliminated. This executive level flexibility helps ensure staff can prioritize Council priorities throughout 2026 and provide the best service levels to our community. To clarify, the positions listed on the attachment that are not also indicated to be eliminated are anticipated to enter the hiring process starting in Q2 2026. In respect to internal processes and known resource limitations, this ‘thaw’ of the hiring freeze will be managed in a phased approach, again with City Manager approvals.\ Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 2 2) Please provide more information on the proposed position reductions in Sustainability Services Response: The following table displays the Historical Net Change in Environmental Service Department (ESD) positions: Staffing Changes of Note: - During 2024: ESD shifted two (2.0 FTE) environmental compliance positions to Community Development & Neighborhood Services for alignment with Code Compliance work. - 2025-2026 Original Budget: ESD’s funded budget offers include an expansion of 5.0 FTE, primarily from dedicated funding:  3.0 FTE from 2050 Tax: two positions to support implementation of Our Climate Future (Lead Specialist, Specialist), and one position to support Healthy Homes program (Sr. Specialist).  1.0 FTE supporting the contracted waste program (Specialist, funded from the administrative fee).  1.0 FTE supporting the Single Use Plastics Reduction implementation (Specialist, funded from Disposable Bag Fees). - 2026 Eliminated Positions: 2.0 FTE from General Fund (Lead Specialist, Data Analyst). - Currently Frozen Positions: 3.0 FTE – Department Director (General Fund), Healthy Homes Navigator (2050 Tax) and Zero Waste Lead Specialist (Disposable Bag Fees). Impacts on Work/Priorities from Eliminating Positions The proposed revised budget for 2026 eliminates 3.0 Full-Time Equivalents from Sustainability Services heading into next year. The impact of each is briefly described below: - Lead Specialist, Environmental Services (1.0 FTE) – This position is being eliminated following the transition of the incumbent into a new Lead Specialist role funded by the 2050 Tax to support implementation of Our Climate Future (OCF), as approved in the 2025/2026 budget. The individual will now focus fully on OCF implementation, including municipal sustainability and climate adaptation efforts. This reduction of a General Fund 1.0 FTE decreases the department’s capacity for other project, policy, and program development. In 2024, Environmental Services shifted from a domain-based structure (e.g., waste, air, climate) to a more flexible, function-based model (e.g., policy, program design, outreach). While the department Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 3 remains committed to Zero Waste, Carbon Reduction, and Air Quality goals, this change reduces project management capacity by approximately 25%. Previously, the team managed 18–24 major efforts annually; two of those—OCF strategic refresh and strategic funding plan—will continue under the incumbent’s new role. - Data Analyst, Environmental Services (1.0 FTE) – This position became vacant when the staff resigned to enter a Graduate Degree program. To avoid significant impact on the department, a Senior Financial Analyst was reassigned from Sustainability Services Admin to ESD. The reassignment will provide backfill of many of the duties left unassigned due to departure of the Data Analyst as well as bring new knowledge, skills, and abilities to the department. Specifically, the transferred position will be used to support the OCF Strategic Funding plan, development and maintenance. Additionally, the departing staff member has been hired in a part-time hourly role to support the 2024 Greenhouse Gas inventory process and to smooth the overall data analysis and reporting transition. - Senior Specialist, Economic Health (1.0 FTE) – This position became vacant when the staff resigned to enter a Graduate Degree program. The role primarily supported (1) data analysis for Economic Health programs and (2) responses to business RFIs (Requests for Information) related to relocation to Fort Collins. A separate 1.0 FTE Lead Specialist position focused on Business Retention, Expansion, and Attraction (BREA) will remain frozen until December 2025 when the recruitment process begins. In the interim, other staff have taken on RFI responsibilities, managing their own data and contributing to BREA efforts as capacity allows. This shift reduces overall capacity for proactive engagement with existing primary employers, limiting EHO’s ability to support retention and expansion efforts. Instead, the team will rely more on employers initiating contact. Staff will continue responding to RFIs from prospective employers but may need to prioritize responses more strategically. Long-Term Resource Strategy for Sustainability Services. As Sustainability Services prepares for ongoing resources constraints one strategy is to identify knowledge, skills, and abilities that are core to the work of the service area regardless of the department. This effort enables the service area to hire individuals that could be shifted across departmental boundaries depending on priorities and capacity need. This cross-functional approach not only embodies the concept of triple-bottom-line but also enables flexibility and responsiveness that hiring specific subject matter experts does not afford. This does not mean that the service area will abandon all subject matter expertise positions, just that we are trying to be more judicious about when an SME is really needed versus solid capabilities that can support a wide range of activities, in service of delivering results for the community. 3) Please provide more information on the Camera Radar Red Light program Response: On July 2, 2024, Council adopted Ordinance No 97, 2024 to implement Automated Vehicle Identification Systems (AVIS) on specific roadways allowing for issuing of citations for drivers going more than 10 mph over the speed limit. Speed corridors were Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 4 identified throughout the city based on historical data related to motor vehicle crashes and speeding incidents. Speed enforcement was incorporated into the existing red-light cameras at intersections throughout the city in October 2024. Those intersections are: o College & Drake - January 1997 red light enforcement o Harmony & Timberline – July 2007 red light enforcement o Mulberry & Shields – July 2020 red light enforcement o Prospect & Shields – September 2020 red light enforcement o Harmony & Shields – September 2023 red light enforcement o Drake & Lemay – November 2023 red light enforcement Two transportable mobile camera radar systems were approved to be included in the approach to speed enforcement. The vendor, Verra Mobility, initially estimated deployment of the systems as late 2024 to early 2025 but those dates were delayed. On Feb 20, 2025, Verra Mobility said the units would be made by the end of February then deployed mid-March. They then communicated that they did not have a location to store or charge the batteries and asked if the City could provide a location. Police Services quickly identified a location and navigated the required PFA approval and electrical upgrade (at Verra Mobility’s expense). This effort took time. The transportables were delivered to FCPS on April 3, 2025 and the vendor then had delays in getting the charging equipment and batteries. The units were first deployed on June 2, 2025. It should be noted that Verra Mobility has expanded significantly in this area, and in Colorado generally, which may have contributed to the delays. Both systems are operational, and tickets have been issued to violators since July 2025 after a 30-day warning period was completed. In July and August, combined, there were a total of 6,252 citations issued, with a potential revenue of $250,080 if all issued citations are paid. This compares to a monthly forecast of $333k per month for the 2nd half of the year. Historically, there have been many factors identified that contribute to the lack of receipt of payment for all issued citations, some of those include dismissal by court, errors on the citation, refusal to pay and inability to contact the driver of the offender vehicle. These situations result in less revenue being received than citations issued. In general, speed violations at the fixed intersections have trended down since their deployment in November 2024. 4) What are the proposed reduced hours for the Hard to Recycle Yard at the Timberline Recycling Center (TRC) and what community impact is expected? Response: This budget reduction would shorten public hours for the Hard-to-Recycle Yard of the TRC. Summer hours would be reduced from 8:00 a.m. - 6:00 p.m. to 9:00 a.m. - 5:00 p.m., and winter hours would shift from 8:00 a.m. - 4:30 p.m. to 8:00 a.m. - 4:00 p.m. While these changes reduce community access, they focus reductions on the center’s least busy times of day. Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 5 5) What work will not get done from eliminating the Code Compliance position in Community Development? Response: There will not be work eliminated from the Code Compliance division but rather Level of Service changes. The work of this position will become reactive versus proactive and will be shared across the other Code Compliance positions. To accommodate the shared work for this position, we are also looking at other service level reductions for code compliance responsibilities. 6) Please provide comparable staffing data with other Sales and Use Tax Audit programs along the Front Range Response: Due to a lean audit staff, the city is missing opportunities to collect tax due to the City. Compared to the largest cities in Colorado, Fort Collins continues to have one of the leanest sales tax departmental staffing levels (see below) and collected less audit revenue in 2024 as a percentage of total collections. The addition of an auditor will bring the city closer to the audit staffing levels of peer cities. This offer is also self-funded through a net increase in audit revenue for the City. 7) Please provide an updated chart on the Digital Inclusion reserve balance estimates and information on the ability of that funding to cover the estimated 2026 shortfall of the Grocery Tax Rebate program Response: The chart on the left below includes $320k of Grocery Tax Rebate funding in 2025 and $415k in 2026. The chart on the right includes both of those numbers plus the $22K alternative reduction instead of the legal defense funds. Both charts include projected underspend in Digital Inclusion spending for 2025 and 2026, as well as the same assumptions for growth in Connexion Digital Equity customers. Both result in a positive cash balance in the Digital Inclusion reserve in 2030, $747K for the first scenario and $725K for the second. Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 6 8) Please provide more information about the Poudre Flows offer and why staff believes the delay in the planned 2026 funding is not an issue for the City Response: Through the launch of the Poudre Flows Project, regional partners, including Fort Collins, will dedicate water rights to alleviate dry up conditions and flow depletions on the Poudre River. These water rights will be used to protect instream flows while enhancing river health, water quality, and recreation. To operate the Poudre Flows Project, existing diversion structures must be upgraded. The original 2025-2026 offer of $850,000 ($550,000 for 2025 and $300,000) intended to support design and permitting costs to upgrade the Arthur Diversion structure located downstream of North Taft Hill Road. The proposed budget reduction shifts the timing of implementation, allowing staff to continue making progress in relationship building with the Arthur Irrigating Company and project design, with the intention of submitting request for 2027-28 budget process after agreement with the Arthur Irrigating Company is reached. Staff plan to reappropriate the unspent funds from the 2025 Natural Areas and Water Funds in 2026 to continue supporting this work. The Poudre Flows Project has not changed, and this reduction will not impact the vision and long-term viability of the plan. 9) Please provide more information about the impacts to the community from the proposed reductions in the 2026 Revisions Response: Please refer to Attachment #2, which includes updates to the impacts to the community from the proposed reductions in the 2026 Budget. Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 Attachment #1 Frozen Positions as of 30 Sept with which are proposed for elimination Department Job Title Proposed for Elimination in the 2026 Budget Accounting and Treasury Sr Analyst, Bus Intelligence Broadband Rep II, Customer Support Sr Manager, Network Engineerng Sr Specialist, Sales Budget Analyst II, Budget City Attorney's Office Assistant City Attorney II Legal Assistant Supervisor, Office Management To be deferred until '27 City Clerk's Office Spec, Regulatory Licensing City Manager's Office Sr Specialist, Digital Inclsn Supervisor, Administration Yes Comm Dev & Neigh Svcs Business Support III Yes Inspector, Code Compliance Yes Planner, City Technician I, Bldg Dev Review Cultural Services Coordinator, Cultural Services Lead Spec, Ed & Engagement Sr Coordinator, Public Engage Sr Mgr, Ops Arts & Culture Economic Health Office Lead Spc, Econ Sustainability Sr Specialist, Econ Sustain Yes Emergency Preparedness Emergency Management Officer Sr Specialist, Security Engineering Civil Engineer I Civil Engineer II Supervisor, Land Surveying Environmental Services Data Analyst, Enviro Sustain Yes Dir, Environ Sustainability Lead Spc, Env Sustainability Sr Specialist, Enviro Sustain Lead Specialist, Environ Sustain Yes Finance Administration Director, Fin Planning & Analysis Yes Human Resources Sr Specialist, Recruiter Yes Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 Department Job Title Proposed for Elimination in the 2026 Budget Information Technology Administrator I, Systems Yes Analyst I, Apps Software Analyst II, Apps Software Analyst II, IT Assets Yes Engineer I, Systems Yes Sr Administrator, Database Sr Technician, Client Services L&P Electric Field Services Line Groundworker L&P Electrical Engineering Assoc Elec Project Engineer Electric Meter System Tech Municipal Court Court Clerk Court Security Officer Natural Areas Planner, Environmental Operation Services Business Support III Fleet Maintenance Technician Sr Specialist, Real Estate Technician II, Facilities Worker II, Fleet Parks Director, Parks Manager, Forestry Park Ranger Yes Sr Manager, Parks Worker I, Parks PDT Administration Analyst I, Finance Sr Analyst, Finance Police Administration Police Sergeant Police Criminal Investigations Criminalist Yes Police Corporal Tech II, Processing Support Yes Police Information Services Emergency Commun Dispatcher Rep II, Police Records Police Patrol Police Officer Police Sergeant Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 Department Job Title Proposed for Elimination in the 2026 Budget Police Special Operations Police Officer Purchasing Sr Buyer Recreation Sr Coordinator, Recreation Sr Supervisor, Recreation Technician I, Recreation Social Sustainability Coordinator, Rental Housing Streets Operator I, Transportation Ops Yes Yes Operator II, Transportation Op Rep II, Customer Support Sr Inspector, Construction Sr Operator, Transport Ops Technician I, Traffic Control Yes Technician II, Traffic Control Worker I, Traffic Control Worker I, Transportation Ops Traffic Business Support II City Traffic Engineer Operator I, Traffic Ops Operator I, Transportation Ops Civil Engineer II Yes Network Engineer II Yes Transfort Officer III, Enforcement Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 Department Job Title Proposed for Elimination in the 2026 Budget Operator I, Transit Planner, Transit Service Yes Data Analyst, Transit Yes Ut Collection System Div Sr Crew Chief Ut Water Systems Engr Div Civil Engineer III Director, Civil Engineering Ut Wtr Reclama & Biosolids Div Sr Specialist, Sciences Technician II, Maintenance Ut Customer Connections Rep II, Customer Support Sr Project Manager Sr Project Mgr, Customer Exp Sr Supervisor, Public Engage Sr Technician, Sciences Utilities Management Utilities Executive Director Utility Financial Operations Sr Coordinator, AR/Billing Note: These 5 positions had been planned as new FTE in 2026 that will be eliminated instead: Department Job Title To be Eliminated Parks Worker I, Parks Yes Police Services Records Supervisor Yes Police Officer Yes Police Officer Yes Streets Traffic Control Technician Yes Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 Attachment #2 2026 Budget Revisions Citywide – $5,000,000 Personnel Savings Citywide adjustments can all be characterized as personnel savings through actions that impact talent. Slowing the thaw of the Citywide hiring freeze to recoup additional savings and reducing pay increases constitute the largest amount of budget reductions. Reductions  $2,600,000 – Extend Hiring Freeze through Q1 2026; partial thereafter  $1,200,000 – Reduce merit increase to 2.0%  $500,000 – Benefits Holiday (one pay period of no premium for Employer/Employee)  $500,000 – Lower insurance premium increase for 2026 (no impact to benefit offerings)  $200,000 – Organizational restructuring of yet to be determined positions OVERALL IMPACT: This package of Citywide reductions is a major lever in meeting budget. Impacts will range across employees in the short term. While most of these reductions are not generally sustainable long-term strategies, they are appropriate for short-term rightsizing the budget. Community Services – $1,548,655 Many of the changes for various Community Services programs are either through reducing General Fund contributions or increasing earned revenue. The intent of these decisions is to focus on areas that have opportunities for further cost recovery and to minimize impact on access or programming. Service level reductions for medians, tree replacement and park maintenance are expected. Reductions  $353,900 – 2.0 FTE - Parks Staffing and Services IMPACT: Vacancies will result in reduced levels of service ) for the community. Examples could include shortening season for seasonal restrooms, eliminating portable bathrooms in most neighborhood parks, reduced water feature season, decreased trash removal frequencies, less frequent mowing in certain areas, longer response times for park service requests, and potential reduction of events such as elimination of the 4th of July parade. This may result in a decreased ability for staff to maintain parks to their current levels.  $325,000 – Shift Parks funding to earned revenues and dedicated funding sources IMPACT: This will have no direct impact on service levels and is a reallocation of funds.  $185,000 – Reduce Forestry Management & Infrastructure Replacement Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 IMPACT: This reduction will cause a reduction in tree planting, delays in maintenance, program implementation, and public outreach initiatives. This is an approximately 6% reduction to the overall forestry budget.  $180,000 – Arts & Culture and Recreation – Reduce transfer to General Fund (replace with earned revenue) IMPACT: This shift is a reallocation of funds and will not have a direct community or staff impact.  $140,415 – Delay Poudre Flows Initiative and reduce General Fund supported river staff work IMPACT: Reducing river-related services is expected to allow additional time for negotiations with the ditch company related to the Poudre Flows project and will shift staff support across the organization for some river-related efforts.  $79,000 – Reduce Center for Creativity and Gardens advertising, programming, and supplies IMPACT: Reduction could impact collected revenue totals due to a lack of awareness or limited community accessibility and ability to patron the Center for Creativity.  $75,000 – Reduce medians streetscape maintenance IMPACT: Reduction will reduce the level of maintenance on medians around the city and may result in additional complaints and/or code violations.  $63,540 – Redeploy Arts & Culture Sr. Manager and related funding source IMPACT: This change will reduce management resources at the Museum of Discovery, but measurable community impact is not anticipated.  $58,800 – Reduced Parks discretionary spending IMPACT: Reduction will reduce the needed resources for their department. This will have no direct service level impact, but will likely have some internal impact.  $55,500 – Reduce Lincoln Center Box Office Hours  IMPACT: Reduction will result in decreased access to box office for phone and in-person sales. This will reduce the level of human customer service provided by the Lincoln Center and may decrease community engagement and support.  $32,500 – Reduced Cemetery and Forestry discretionary spending IMPACT: This offer will have no impact on direct levels of service. Executive Services – $239,000 Executive Services reductions result in less programmatic spend, workforce appreciation and consistent fall engagement with DC-based agencies and Congressional staff. Additionally, some service level reductions will occur because of reducing headcount by 1 FTE. Reductions  $108,000 – 1.0 FTE City Manager’s Office Administrative Support Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 IMPACT: This vacant position will result in an evaluation of the level of service that can be delivered with remaining staff.  $35,000 – Reduce Customer Experience consultant services IMPACT: Reduction may result in delays in customer service improvements due to less department and project implementation support. Project timelines will be extended.  $35,000 – Reduce Equity Office program spending, including less support for community led initiatives, internal training efforts and language access IMPACT: This is a 50% reduction to the programmatic budget, leading to less financial support provided to community groups hosting events, reduction in language access services, and less funding to cover rental and meeting space fees for community meetings. Internally, the Equity Office will have reduced capacity to deliver education and training programs for staff.  $36,000 – Eliminate Holiday Party for City employees (includes $10k from budget in Information and Employee Services) IMPACT: Reduction eliminates yearly employee holiday party for City staff.  $20,000 – Eliminate redundant software expenses IMPACT: No impact on current service levels.  $15,000 – Eliminate City Council's fall lobbying trip IMPACT: Reduction eliminates City Council’s fall lobbying trip which decreases relational capacity with federal staff. This would not eliminate those relationships but would result in less frequent contact and relational development. Financial Services – $393,363 Reductions for Finance can be summarized as management decisions related to leadership structure in the Service Area and best-placed funding sources for the near-term work of the Transformation Management Office. Additionally, staff believe an additional auditor position can more than cover salary and be a net revenue generator for legally owed taxes. Key Reductions / Additional Revenue  $192,300 – 1.0 FTE – Financial Planning & Analysis Director IMPACT: Reduction will result in temporary reduced capacity for fiscal analysis as long-term financial services organization determines the most effective staffing structure to support the new budget process. The function of this vacancy is one that is likely to be prioritized for hire as other lower priority vacancies become available.  $121,063 – Shift General Fund support for Transformation Management Office to Utilities funding IMPACT: This funding shift will constrain the TMO focus primarily on utilities projects and limit capacity to focus on Governmental Fund projects. There is sufficient workload in the Utilities space for TMO in 2026 to support this funding structure. $80,000 – Adding 1.0 FTE - Sales Tax Auditor is estimated to cover expenses and contribute additional revenue of $80k IMPACT: This addition will increase revenue and service provisions for businesses around the city. In addition, the position will help increase revenue to account for sales tax revenue audits. Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 Information & Employee Services – $3,071,000 Adjustments within the internal service departments involve numerous decisions to shift funding sources (fleet reserves covering General Fund for 2026) or capture efficiency savings because of how prices or contracts have moved (e.g., fuel, custodial). There are numerous vacant positions being reduced across the service area and some deferment of planned capital projects on City facilities. Reductions  $500,000 – Shift Fleet replacements from General Fund to Fleet Fund Reserves IMPACT: This will delay 7 totally upfitted Police Patrol vehicles that are due for replacement to a future budget cycle which may increase maintenance costs.  $435,000 – City Building Custodial and Utilities efficiency savings/reductions IMPACT: Efficiency improvements for both custodial services and utility usage results in this reduction having minimal impact on the current level of service provided to City facilities.  $388,500 – 3.0 FTE - Information Technology Administrator I, Analyst II, Engineer I IMPACT: Slower device patching and software deployment, reduced IT asset accuracy and license turnaround, less depth for 24x7 infrastructure support, and delay of upgrades that extend use of aging systems. This lowers project delivery capacity and increases response times for noncritical requests. Critical City services will be prioritized.  $300,000 – 2026 City Fleet Fuel savings (price-based) IMPACT: This reduction is a result of lower fuel costs than previously forecast.  $175,000 – Network Professional Services and IT Reserve Support IMPACT: Fewer external specialists and a smaller contingency buffer will lengthen timelines for specialized network work and some incident responses, with modest risk of short service interruptions during hardware failures or urgent fixes.  $650,000 – Defer 2026 Facility Modifications and Improvements IMPACT: This reduction will delay improvements made on City facilities and buildings as the budget is reduced one-time. This will add to the asset management backlog for City facilities and require additional future investment.  $125,000 – Virtual Chief Information Security Officer and Endpoint Management IMPACT: This reduction will have no impact on the City’s planned or current cybersecurity services and will have no outward facing service impact.  $115,000 – 1.0 FTE – Human Resources Recruitment Specialist IMPACT: This vacancy will reduce the City’s ability to efficiently support hiring managers and may lengthen staff intake processes. As hiring increases in the future, this vacancy will not be sustainable without slower recruitment, delayed onboarding of critical roles, and reduced organizational agility in meeting community needs.  $105,000 – Reduce Expanded Communication Methods & Digital Implementation Support IMPACT: Reduction will cause a decrease in community outreach. It will also decrease support and development for digital implementation experiences and systems which may impact staff and community members. Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77  $100,000 – Retire AirWatch and CyberArk mobile device systems IMPACT: This reduction will not have any impact on current service levels. The existing infrastructure will be maintained. $70,000 – Decrease Talent Acquisition and Development Programming  IMPACT: This reduction affects our sourcing strategies and decreases the development programs currently offered. We have strategies in place to mitigate impact.  $60,000 – Continue 0.5 FTE funding shift to Benefits Fund IMPACT: This shift will have no impact on current service levels or staff.  $25,000 – Reduce Emergency Preparedness outreach, preventative maintenance and hourly support IMPACT: Reduction will cause delayed maintenance of infrastructure and service to departments including security camera maintenance, access control card reader upgrades, and finalizing new ID badges. Call center technology that EPS & volunteer programs operate will not be purchased. EPS has reduced capacity to respond to new projects and department needs.  $12,500 – Move State of the City event to every other year IMPACT: Reduced opportunity for annual community outreach and potential touchpoints with City leadership and staff.  $10,000 – Included above in Exec Services for the Holiday Party IMPACT: Reduction eliminates yearly employee holiday party for City staff. Judicial Services – $30,000 Reductions for Municipal Court relate to discretionary spending. Reductions  $30,000 – Reduced discretionary spending IMPACT: Reduction will reduce the purchase of needed resources for their department. This will have no direct service level impact, yet will have some internal impact. Legal Services – $123,000 The City Attorney’s Office plans to defer hiring their office manager role until 2027. Reductions  $123,000 – 1.0 FTE – City Attorney’s Office defer hiring Office Management Supervisor IMPACT: Requires other staff to take on administrative roles and reduces staff capacity. Reduced efficiency of staff decreases response times. Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 Planning, Development & Transportation – $3,209,380 PDT’s adjustments will impact levels of service in some areas of strategic planning, permitting and compliance. The transportation asset management reductions will impact typical levels of service for road maintenance and snow removal. Our bus operations (Transfort) will also experience reduced route service hours and frequency. The service area will reduce vacant headcount by eight (8) FTEs. This includes the planned deployment of 2 FTEs funded by camera radar for the 2026 Budget. Reductions  $1,087,333 – Reduced street maintenance & snow removal IMPACT: Fewer lane miles resurfaced; slower response for sidewalk snow removal and ice cutting; shift to complaint-based operations for graffiti abatement and alley maintenance; reduced hours at Timberline Recycling Center on hard to recycle side of the facility  $410,326 – Reduced Level of Service - Transfort Routes 11 & 12, FLEX program IMPACT: Route 11/12, serving Horsetooth, will remain suspended, resulting in a projected loss of about 60k riders and increased wait times for bus stop to bus stop service (rising from an average of 7 minutes to 12–15 minutes). FLEX service levels will also decrease, with Loveland operating direct service between Loveland and Fort Collins. FLEX will continue to serve the full corridor to Boulder, 7 trips per weekday and 5 trips on Saturdays.  $323,277 – 2.0 FTE – Streets Asphalt Patching & 2.0 FTE – Streets Traffic Control Technicians IMPACT: Reduced volume of annual maintenance work and reduced cost-savings to internal services with partners. Long-term reduced service will impact the safety and upkeep of asphalt.  $287,000 – Unfund 1041’s and Water Adequacy IMPACT: These were pre-appropriated in advance of any applications, which recover the cost of the work. Should applications be received, staff will ensure appropriations come forward and work is completed.  $198,103 – 2.0 FTE - Transfort Analyst & Transit Service Planner IMPACT: Delay Transfort’s service level capacity and response to community members. Delayed project timelines, deferred technology maintenance, and decrease data analysis to optimize service for customers.  $178,263 – 2.0 FTE – Traffic Vision Zero staffing IMPACT: Increased workloads for current staff and discontinuation of small-scale events. Delayed implementation of some Vision Zero tactics such as network updates. These positions were funded by the camera radar revenue.  $175,000 – Reduce level of service to Neighborhood Traffic Safety Program IMPACT: Reduces the number and scale of residential areas served. Some of this program was funded by the camera radar revenue.  $149,748 – 2.0 FTE - Business Support & Code Compliance Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 IMPACT: Increases workload for current administration and code compliance staff. Service level impacts would be in response times to customers and levels of voluntary compliance.  $147,070 – Maintain 60-minute frequency on Transfort Route 16 IMPACT: Route 16, which operates on the Harmony corridor, will continue to experience 60-minute frequencies (from 30-minute frequencies) and a potential decrease in ridership of about 49k.  $95,000 – Eliminate Neighborhood Mini-Grants, Landmark Preservation programs, and Contractual Building Inspection IMPACT: Eliminates funding to assist neighbors with abatement of code violations (i.e. high weeds and grass), as well as the Historic Preservation Design Assistance and the Landmark Rehabilitation Loan programs. The reduction in the Contractual Building Inspection services will reduce our ability to quickly deploy contractor support in circumstances of high volume .  $60,000 – Shift contracted mowing services for road shoulders City staff IMPACT: Shifts current contracted mowing service to an in-house system. This increases workload for staff which may result in a decrease in additional project capacity.  $53,760 – Reduce hourly Transfort Project Specialist staffing IMPACT: Existing staff will have an increased work burden from reallocated responsibilities. This will result in longer lead times and project delays.  $35,000 – Reduce Engineering programing spend IMPACT: Reduction will reduce the purchase of needed resources for their department. This will have no direct service level impact, will have some internal impact.  $9,500 – Eliminate asphalt art program IMPACT: Eliminates addition of new asphalt art installations for 2026 and may lead to program elimination in the future. Police Services – $1,124,897 Police reductions in this personnel-heavy budget include a reduction of 5 budgeted FTE in 2026 that could impact time to resolve some cases or requests handled by the civilian positions. Additionally, Police plan to cut their discretionary spending across several areas. Reductions  $461,500 – Reduce service across Medical, Security, Language, Animal Care, IT, & Police Vehicle service/support IMPACT: This reduction results in a loss of service resources, health and safety supplies, and other critical infrastructure developments needed to operate a ‘no-fail’ emergency service organization.  $343,397 – 3.0 FTE - Records Supervisor, Criminalist, Property & Evidence Technician IMPACT: Decrease in current capacity and level of service to victims and detectives. This will increase workload for current staff, delayed investigations and processing of materials.  $320,000 – 2.0 FTE - HOPE officers IMPACT: The HOPE team has been a pilot project comprised of personnel from other units (Patrol, SOD, etc.) These positions would have backfilled the other units keeping the HOPE Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 officers full-time. With this reduction, FCPS will not transfer the two back to their parent teams, which will result in fewer resources for general Patrol-related calls for service. The HOPE team will remain in a partial pilot status. Sustainability Services – $667,053 Within Sustainability Services, reductions include 3 vacant positions related to data analysis and project management. Reduced hourly budget and shifting funding sources are intended to minimize service reductions externally while resulting in some increased time spent by remaining staff on other items. Additionally, reductions in grants and other marketing will mean fewer dollars than have recently been provided to community groups and organizations. Reductions  $354,983 – 2.0 FTE – Environmental Services Data Analyst and Specialist, and 1.0 FTE Economic Health Specialist (Data Analyst) and Reduced Hourly Support IMPACT: Reduced frequency of responses to resident and business data requests, decreased capacity to manage project quantity, new project development, and program maintenance.  $81,570 – Reduce Affordable Housing, Human Services & Neighborhood grants and programming IMPACT: Reduces level of financial support the City is able to provide to different organizations through grants and programming. This may lead to decreased capacity for these organizations to operate.  $75,000 – Reduce Hourly support and Utilize State Air Quality Monitoring Funding IMPACT: Reduces earmarked funding for air quality monitoring by $29,000 with no anticipated impact on results. Staff has been able to find other ways to meet the need for air quality monitoring through efficiencies and partnerships. Monitoring is increasingly being conducted by regional partners (Larimer County, Colorado State University, others) and through grants. Additionally, Council approved funds in the last budget cycle from the 2050 tax to support one- time investments that leverage these regional partnerships and grant opportunities without adding ongoing costs. The remaining reduction relates to hourly staffing that will not be completed by dedicated staff approved through the last budget cycle and funded by either disposable bag fee revenue or the 2050 tax.  $60,000 – Shift Downtown flowers funding from General Fund to GID #1 IMPACT: The GID can absorb this expense in the short-term without major strategy shifts. Were this cost to become a permanent expense there would be a reduction in downtown maintenance (curbs, sidewalks) and enhancements.  $43,500 – Reduce Economic Health marketing, sponsorships and MBEC program funding IMPACT: Reduction in public outreach materials such as postcards, signs and collateral materials; reduction in event sponsorship; reduction in language services. This is approximately a 5% reduction in Economic Health’s non-personnel budget.  $30,000 – Reduced Discretionary Spend Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77 IMPACT: Reduction will reduce funding to purchase needed resources. This will have no direct service level impact, but will have some internal impact.  $22,000 – 5% decrease in immigration and eviction legal funds IMPACT: Reduction in the level of financial support the City provides to the organizations conducting this work. Docusign Envelope ID: 1CF08A54-5D69-4F02-BF95-76241D95AC77