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Home My WebLink AboutAgenda - Mail Packet - 3/14/2013 - 3. Council Finance Committee & Ura Finance Committee Agenda March 18, 2013Council Finance Committee & URA Finance Committee Agenda Planning Calendar 2013 M a C r F . C 1 8 Financial Highlights 2012 T O P RVSD I C 3/14/13 KW 45 T I min M E J. Voss W H O Financial Policy Structure (materials provided at meeting) 30 min J. Voss Grocery, Property Tax and Utility Rebate Program - 2012 recap 15 min J. Ping- USmall A p r R . A 1 5 T O P I C T I M E W H O C F C 2012 Fund Balance Review 30 min J. Voss Annual Pension Valuation Report (GERP) M UMilliman a C y R F A C 2 0 Refinancing Structure T O P I C 30 30 T I min min M E J. Voss W H O R e v e n u e P o l i c y R e v i e w 30 min J. Ping- Small Budget Policy Update 30 min L. Pollack M U a y R A 2 0 Debt Policy Update T O P I C 20 T I min M E J. Voss W H O UPollack C R F A C C o m m u n i t y D a s h b o a r d 45 min L. Future Council Finance Committee Topics: x Auditor’s Report on 2012 Financial Statements (July 2013) x RFP for Audit Services, 5 year contract (August 2013) x Policy review – Reserve/Fund Balances (QIII 2013) x Revenue Implications of Annexation x Financial Management Policy Reviews during 2013 – Quarterly Commitments Future URA Committee Topics: Finance Administration 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com AGENDA Council Finance & Audit Committee March 18, 2013 10:00 to 12:00 noon CIC Room – City Hall Approval of the Minutes from the January 14, 2013 Meeting 1. Financial Highlights 2012 45 minutes J. Voss 2. Financial Policy Structure 30 minutes J. Voss 3. Grocery, Property Tax and Utility Rebate Program – 2012 Recap 15 minutes J. Ping-Small 1 2012 Financial Highlights Council Finance Committee March 18, 2013 2 Contents • Revenue • Expenditures • Debt • Fund Balances (selected) 3 Revenue 4 5 66 7 8 9 10 11 Expenditures 12 13 14 Governmental Service Areas 2012 Service Area Expense in thousands Percent of Year 100% December Year to Date Actual (Over)/ Under (Inc)/Dec Actual Actual + PO's Act+PO's (Over)/ Under Act 2012 vs Act 2011 % Budget Spent & Committed 2012 2012 Bud 2011 2012 2012 2012 Bud (Inc)/Dec by PO's Police Services $ 3,328 $ 1,266 $ 35,566 $ 37,090 $ 771 $ (3,562) 98% Financial Services 506 726 5,739 5,848 680 490 90% Community & Operation Servi 6,391 1,014 57,225 59,725 9,257 (1,778) 87% Planning, Dev & Trans Service 4,740 (399) 39,676 41,769 1,949 (5,103) 96% ELJS 363 103 4,562 4,644 70 (285) 99% Employee & Comm Services 2,800 (553) 22,544 23,009 2,950 (1,529) 89% Sustainability Services 815 472 5,253 6,208 713 2,946 90% Other 69 (23) 7,289 8,091 585 (287) 93% Poudre Fire Authority 1,607 (25) 19,283 19,283 0 (289) 100% 20,619 0 2,582 197,136 205,666 16,980 (9,374) 92% Non-lapsing Expenses 14,075 (9,499) 49,121 104,200 (2,572) TOTAL $ 34,694 $ (6,917) $ 246,257 $ 309,866 $ (11,946) Variance Analysis: Please see the individual Service Area reports for variance analysis and highlights Natural Areas Land Puchases 3,402 Medical and Dental Claims 2,398 Property and Works Compensation Claims 704 Capital purchases 2,223 Contingency Underspending 8,727 15 Governmental Service Areas 2012 Expense Type in thousands Percent of Year 100% December Year to Date Actual (Over)/ Under (Inc)/Dec Actual Actual + PO's Act+PO's (Over)/ Under Act 2012 vs Act 2011 % Budget Spent & Committed 2012 2012 Bud 2011 2012 2012 2012 Bud (Inc)/Dec by PO's Salaries & Wages $ 5,646 $ 1,671 $ 57,571 $ 57,571 $ 1,874 $ (3,936) 97% Overtime 172 226 2,744 2,744 (569) 126 126% Benefits 1,653 459 16,483 16,483 226 (1,127) 99% Professional & Tech Services 2,835 9 30,456 31,941 1,597 (623) 95% Property Services 2,974 184 23,772 25,892 1,691 2,687 94% Other Services 3,422 (412) 25,744 26,053 3,557 (1,108) 88% Supplies 2,543 (641) 17,322 18,141 (99) (1,931) 101% Travel, Training & Education 233 (92) 1,130 1,225 290 (308) 81% Capital Purchases 541 1,433 11,479 14,456 6,170 (2,739) 70% Other 225 (166) 3,086 3,812 1,991 (544) 66% Debt Service 375 (89) 7,347 7,347 251 128 97% 20,619 0 2,582 197,136 205,666 16,980 (9,374) 92% Non-lapsing Expenses 14,075 (9,499) 49,121 104,200 (2,572) TOTAL $ 34,694 $ (6,917) $ 246,257 $ 309,866 $ (11,946) Variance Analysis: Please see the individual Service Area reports for variance analysis and highlights 16 Personnel Costs 17 18 19 Debt Status 20 21 22 Selected Fund Balances 23 2011 Total 2012 Total Appropriated, Min. Policy, or Scheduled Available but with some Constraints Available for Nearly Any Purpose General Fund $ 40.2 $ 55.3 $ 43.5 $ 1.7 $ 10.1 Capital Expansion Fund 14.6 16.7 6.2 10.5 - Keep Fort Collins Great Fund 6.3 11.1 7.7 3.4 - Transportation 13.2 13.6 6.2 0.5 6.9 Capital Projects Fund 20.1 20.4 20.3 0.1 - Benefits Fund 11.9 12.6 10.1 0.1 2.4 All City Funds - Year End 2012 24 2011 Total 2012 Total Appropriated, Min. Policy, or Scheduled Available but with some Constraints Available for Nearly Any Purpose Assigned - Minimum 60 day Policy $ 17.3 $ 18.8 $ 18.8 $ - Non-spendable Advances 5.5 5.5 5.5 - Landbank inventory 3.0 3.0 3.0 - Restricted TABOR Emergency 4.3 4.5 4.5 - Police Programs 2.2 1.3 0.5 0.8 Donations 0.5 0.7 0.1 0.6 Economic Rebates 3.0 3.0 - Committed Traffic Calming 0.5 0.5 0.2 0.3 Culture & Recreation 0.1 0.1 0.1 - Assigned Prior Year Purchase Orders 5.5 4.4 4.4 - N. College (Conifer to Willox) 5.7 - 5.7 DPS/Comm System 1.1 1.7 0.1 - 1.6 Camera Radar 0.8 0.9 0.3 - 0.6 Affordable Housing Land Bank 0.2 0.2 - - 0.2 Waste Innovation 0.2 0.3 0.1 - 0.2 Unassigned (1.0) 4.7 2.9 - 1.8 Year End Total $ 40.2 $ 55.3 $ 43.5 $ 1.7 $ 10.1 General Fund - Year End 2012 - $55.3 25 COUNCIL FINANCE COMMITTEE AGENDA ITEM SUMMARY Staff: Jessica Ping-Small, Revenue and Project Manager Katie Wiggett, Finance Assistant SUBJECT FOR DISCUSSION Sales Tax on Food, Property Tax/Rental and Utility Rebate Program Update EXECUTIVE SUMMARY The Finance Department currently administers three rebate programs for low income, senior and disabled residents. The rebates are for Property Tax, Utilities and Sales Tax on Food which were created in 1972, 1975 and 1985 respectively. In May of 2012, City Council approved changes to the ordinances which improved consistency amongst the rebates, allowed an increased number of residents to qualify for the Property Tax and Utility Refund and simplified the process for applicants. The Sales Tax on Food Rebate was also increased from $40 to $54. In 2012, the number of rebates issued increased 13%. Staff attributes the increase to the improvements made to the program and the additional outreach that occurred. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED None, update to the Council Finance Committee. BACKGROUND/DISCUSSION History Property Tax Rebate x Established in 1972 for low income senior (65 and over) residents x Expanded in 1980 to include low income disabled residents x Eligible property owners are entitled to a refund of all City property taxes paid in the preceding year x Eligible renters are entitled to a rebate of 1.44% of rental payments for property on which City property taxes were paid x The 1.44% rebate for renters was the percentage of total rent at the time that resulted in a rebate amount equal to that of property owners which was calculated at $33.33 in 1972. x Income eligibility level updated in 2012 to 50% of the area median income (AMI) as reported by HUD on an annual basis Utility Rebate x Established in 1975 for low income senior residents x Program applies to owners and lessees of property for which City of Fort Collins utilities have been paid x Amount of refund is based on average monthly residential consumption of water, wastewater, stormwater and electric service updated annually x Income eligibility level updated in 2012 to 50% of the area median income (AMI) as reported by HUD on an annual basis Sales Tax on Food Rebate x Established in 1984 and rebate amount set at $25 per person in eligible household x Income eligibility level updated in 2005 to 50% of the area median income (AMI) as reported by HUD on an annual basis x In 2005 per Council direction, staff researched and recommended changes to the income level for the Sales Tax on Food Rebate only. The goal was to increase the number of households that qualified x Rebate amount updated to $54 per person in 2012 2012 Rebate Summary Total Applications Received 1312 Total Qualified Applications Processed 1273 Average Rebate Amount $176 Total Food Tax Rebate $135,432 Total Property Tax/Rental Rebate 53,019 Total Utility Rebate 35,170 Total Rebate for 2012 $223,621 Year # of Rebates Issued Total Rebate Amount Average Rebate Amount 2012 1273 $223,621 $176 2011 1126 $138,654 $123 2010 1101 $142,510 $122 2009 1284 $157,146 $122 2008 1312 $167,426 $128 The number or rebates issued in 2012 increased 13% over 2011. Improvements to the program and an increased level of outreach were key factors to the rise in participation. In addition to the increased program consistency, staff worked to simplify the application and make it more dynamic. 2012 Outreach x Advertisements in the Coloradoan and on Coloradoan website x Articles in local newsletters like the Aspen Club and Senior Voice x City webpage with downloadable application x Partnerships with local agencies such as the Larimer Food Bank, Volunteers of America, Meals on Wheels, Larimer Health and Human Services, etc x Application forms are distributed to the Senior Center, Aztlan Center, Utility Billing Office and the Workforce Center x Applications mailed out to all applicants from the prior year x Distributed over 1,500 applications to low income PSD elementary schools Goals for 2013 In addition to the standard outreach, staff intends to partner with PSD during their Back-to- School program to distribute information about the rebates. Staff considers this a more focused approach then blanket application distribution. The application will also be translated into Spanish to reach a larger demographic. ATTACHMENTS Power Point Presentation 1 2 Program Overview Sales Tax on Food Rebate: • Established in 1984 – Rebate to lower income citizens • $54 per eligible household member – last updated in 2012 Property Tax/Rental Rebate: • Established in 1972 – Rebate to senior and disabled lower income citizens • City portion of applicants property tax levy OR • 1.44% of rental payment for year Utility Rebate: • Established in 1975 - Rebate to senior and disabled lower income citizens • Based on billing data for average monthly consumption for water, wastewater, stormwater and electric service 3 All Programs: • Fort Collins Residency – prior year up to application date • US Citizenship • Proof of ID required for all household members 18 years old or older Sales Tax on Food Rebate: • Income – 50% of the Local Area Median Income per household size Property Tax / Rental Rebate: • 65 or over or Disabled • Income – 50% of the Local Area Median Income per household size Utility Rebate: • 65 or over or Disabled • Customer of Fort Collins utility • Income – 50% of the Local Area Median Income per household size 4 • Raised the income level for Property Tax Rebate and Utility Rebate from 30% of AMI to 50% of AMI – consistent with the Sales Tax on Food Rebate • Increased Sales Tax on Food Rebate amount from $40 to $54 per person in qualified households • Indexed future Sales Tax on Food Rebate amount to the local Consumer Price Index (CPI) • Revamped application to be more streamlined and dynamic Improvements simplified and streamlined the application process 5 Total Applications Received 1312 Total Qualified Applications Processed 1273 Average Rebate Per Application $176 Total Food Tax Rebate $135,432 Total Property Tax/Rent $53,019 Total Utility Rebate $35,170 Total Rebate For 2012 $223,621 2011 1126 $138,654 $123 2010 1101 $142,510 $129 2009 1284 $157,146 $122 2008 1312 $167,426 $128 Rebates issued in 2012 increased 13% over 2011 6 • Advertisements in the Coloradoan and on the Coloradoan website • Articles in local newsletters such as Aspen Club and Senior Voice • Webpage with downloadable application on City Website • Application forms are distributed to the Senior Center, Aztlan Center, Utility Billing office, and the Workforce Center 7 • Partnership with local agencies to assist in distributing information: • Larimer Food Bank • Volunteers of America • Meals on Wheels • Catholic Charities • Workforce Center • Larimer Health and Human Services Department • Provided on site help at the DMA Plaza • Distributed new application focusing on low income families at six elementary schools – over 1,500 applications distributed PSD outreach and onsite low income housing assistance were both new and effective outreach methods in 2012. 8 • Outcome of 2012 Program Improvements: • Consistency across rebates • Increased rebate amount for Sales Tax on Food • Higher income levels for Property Tax and Utility Rebate – allows more applicants to qualify • 13% increase in rebates issued • Goals for 2013: • Continue with proven outreach strategies • Partner with PSD for targeted “Back to School” outreach • Translate application into Spanish to reach larger demographic • Increase on-site application assistance at low income housing and Senior Center