HomeMy WebLinkAboutAgenda - Mail Packet - 8/20/2013 - Council Finance Committee & Ura Finance Committee Agenda - August 19, 2013Finance Administration
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PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
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AGENDA
Council Finance & Audit Committee
August 19, 2013
10:00 to noon
CIC Room – City Hall
Approval of the Minutes from the July 15, 2013 and the August 2, 2013 meetings
1. 2014 Budget Revisions – in advance
of the 9/10 work session 30 minutes L. Pollack
2. Review Utility Rates 40 minutes L. Smith
3. Bob II Update 30 minutes D. Jones
4. Debt Policy Update 15 minutes J. Voss
5. DDA IGA to Support Woodward Project 02 minutes M. Beckstead
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Council Audit & Finance Committee
Draft of Minutes
7/15/13
10:00 to 12:00
CIC Room
Council Attendees: Mayor Karen Weitkunat, Ross Cunniff, Bob Overbeck
Staff: Darin Atteberry, Mike Beckstead, Josh Birks, Mindy
Pleiger, SeonAh Kendall, Lance Smith, Jon Haukaas,
John Voss, Katie Wiggett
Others: Dale Adamy, Mike Freeman (RMI), Kevin Jones
(Chamber of Commerce), Kevin Smith (McGladrey)
Approval of the Minutes of June 17, 2013
Ross Cunniff moved to approve the minutes for the June 17, 2013 meeting. Bob Overbeck seconded the
motion. Minutes were approved unanimously.
RMI Review—Status Financing & RMI Performance
At the request of council, Mike Freeman, CEO of Rocky Mountain Innosphere (RMI), presented an
overview and update of RMI. RMI is a 501c3 non-profit technology incubator formed to accelerate the
success of high-impact scientific and technology startup companies and promote the development of a
regional entrepreneurial ecosystem. The City has been a key player in RMI’s evolution since its
beginning as a small incubator in 1998.
RMI is focused on Biosciences, Software and, most recently, Cleantech in the Front Range and Northern
Colorado area. The Innosphere works on a nonprofit funding model with many diverse funding
partners. Two new funding sources are Cleantech and Powerhouse. Powerhouse is a no-risk leasing
deal RMI has made with CSU that will begin bringing in funding in the near future. Councilman Overbeck
asked if he could see a breakdown of the contributions RMI receives; Mike Freeman said he would
follow up with that information.
Mike reported that 95%+ of RMI’s new building was leased as of June 2013. They are ahead of budget
now, but one major lease is ending soon. RMI expects 90% to be leased by September 1, and will keep
the remaining leasing a priority for the 4th Quarter of 2013. RMI is on track to meet adopted budget for
net income. RMI’s next steps for the building are (1) to complete the mandatory 7 year New Market Tax
Credit Term, (2) either refinance or pay off debt by end of 7 years and (3) see the building become an
asset to the nonprofit after year 7.
Ross Cunniff said that he would like to see more about RMI’s financing, specifically funding from the
City, and feels that financing slides should be shown at the upcoming work session.
FCLWD Agreement
2
Jon Haukaas and Lance Smith presented potential water sharing and capacity sales agreements with Fort
Collins Loveland Water District. Jon noted that, for the past year, Utilities Staff has been negotiating
with FCLWD to restructure the existing water sharing agreement and amend it to include the sale of
excess water treatment capacity. With the current agreement, FCLWD is able to take excess water from
Fort Collins Utilities during peak times then replenish the water in the shoulder seasons. Staff is
suggesting revising the agreement to insure that FCLWD pays for the water they take on a month by
month basis, meaning they will have to pay for the excess water they take during the peak seasson. The
suggested revisions to this agreement will benefit the customers of Fort Collins Utilities (FCU) through
incremental revenues and the customers of FCLWD by increasing the amount of water that can be
delivered through the agreement to them. The Water Board has reviewed the proposed amendments
and recommends approval.
Darin Atteberry noted that the City has partnered with FCLWD because they have been a good steward
of their resources. The revisions to this agreement are for the benefit of both parties.
Auditor 2012 Report
Kevin Jones of McGladrey presented the 2012 Audit findings. He reported that McGladrey was able to
give the City an unmodified opinion, which is the highest opinion it can give.
Kevin said that he Compliance Report which deals primarily with grants notes some findings in CBDG,
none of which were cost impactful or significant internal control deficiencies. These findings were
mailing documentation issues and didn’t affect McGladrey’s final opinion. Mike Beckstead noted that
Staff has met with the CBDG twice since the audit to clean up the documentation issues that were listed
in the Report. The City has also hired a Grants Compliance Administrator to help avoid any further
issues.
Kevin reported that audit adjustments were proposed. City Staff did well getting the necessary
information into McGladrey’s hands; the bookkeeping was clean, thorough and transparent.
Councilmember Overbeck asked if the URA Fund was also audited and if the URA was viewed as a viable
instrument. Kevin answered that the URA is considered to be a blended component unit, separate but
viable.
Calendar Review—What Should Come to CFC?
Mike Beckstead asked the Council Finance Committee for clarification on the types of issues and topics
that should be brought to Council Finance. Because Council Finance only meets once a month for two
hours, staff can only put the most pertinent items on the calendar. The Committee discussed the issue
and came up with three categories that items coming to Council Finance should fall into: 1) financial and
fiduciary policy and status review (i.e. annual fund balance, external audit, GERP, policy changes, etc.) ,
2) programs and transactions that have a significant financial impact (i.e. initial On-Bill Financing
Program, Bond Issuance, FCLWD Share Agreement, etc.) and 3) items of potential controversy that
would benefit from a financial discussion.
Assistance Package for Local Company
SeonAh Kendall and Josh Birks presented Custom Blending’s request for a business assistance package.
Custom Blending, Inc., is a primary employer in Fort Collins and is seeking assistance of $43,500 to aid in
expanding their current facility by 34,000 square feet and in making substantial equipment purchases,
3
representing a total investment of approximately $5.9 million and adding an additional 16 full-time jobs
in Fort Collins. The estimated $43,500 package includes $31,100 in manufacturing use tax rebates and
$12,400 in personal property tax rebates.
City Plan identifies the support of job creation as a priority to enhance the community’s economic base
and job creation by focusing on retention, expansion, incubation and recruitment efforts that bring jobs
and import incomes or dollars to the community. This Business Assistance Package addresses the
Economic Health Office’s goal of facilitating a stronger business support network for existing employers,
new businesses, and small business. The EHSP recognizes that the existing employers and small
businesses are the backbone of the Fort Collins economy. The Economic Health Office believes that this
assistance is a sound investment in strengthening the support network, and diversifying the
employment and tax base of the community.
Mayor Weitkunat noted that the City does a lot of big packages. This would be a good example of how
the City can help small businesses, and this package may help the City establish a strong set of policies
for helping such companies in the future.
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Council Audit & Finance Committee
Minutes
8/6/2013
10:00 to 12:00
CIC Room
Council Attendees: Ross Cunniff, Bob Overbeck
Staff: Mike Beckstead, Gerry Paul, Mindy Pfleiger, John
Voss
Poudre River Public Library
District Staff:
Jeff Barnes
Interview Audit Firms
The Finance Committee heard presentations from three audit firms for selection of the City’s auditor for
the next 5 years. The firms were:
• McGladrey, LLP
• Clifton Larson Allen, LLP
• BKD, LLP
Each firm gave a 15 minute presentation and the Committee took 45 minutes to ask questions.
The firms were rated using the rating criteria listed in the request for proposal.
The highest ranked firm was McGladrey, LLP.
Ross Cunniff and Bob Overbeck both recommend to the City Council that McGladrey, LLP be the City
auditor for the next 5 year period.
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Mike Beckstead, Chief Financial Officer
SUBJECT FOR DISCUSSION
2014 Budget Revision Recommendations
EXECUTIVE SUMMARY
The purpose of this agenda item is to familiarize and seek feedback from the Council Finance
Committee with the City Manager’s recommended revisions to the 2014 Budget before the
Appropriations Ordinance goes to first reading October 15 and second reading November 5.
General
Fund
Ongoing
General
Fund
One
time KFCG
Light &
Power
All Other
Funds
Total
(in $M)
Funding Sources
Sales & Use Tax: Projection compared to budget (G.F. only) $ 1.1 $ 2.2 $ 3.3
Development Review revenue 2.5 2.5
Previously assigned General Fund reserves for North College 5.2 5.2
Revenue from demand increase 5.8 5.8
Light and Power PILOTs 0.2 0.2
KFCG Reserves 1.2 1.2
Other Revenue Changes (0.3) (2.2) (2.5)
Total of Revenue Changes $ 1.0 $ 7.7 $ 1.2 $ 5.8 $ - $ 15.7
2014 Recommended Budget Revision Requests
North College Improvements - Conifer to Willox $ (4.3)$ (4.3)
Light & Power Purchase Power (0.7) (0.7)
Arthur Ditch Culvert Replacement at Mulberry Pool (0.5) (0.5)
City Attorney Office Staffing (0.1) (0.2) (0.3)
Development Review Staffing - Contractual (0.3) (0.3)
PFA 2014 Budget Revision Offer (0.3) (0.3)
Light and Power Payments in Lieu of Taxes (0.3) (0.3)
Senior Center Expansion (0.2) (0.2)
All Other 2014 Requests (0.2) (0.6) (0.3) (0.1) (1.2)
Total of Supplemental Appropriations $ (0.6)$ (5.4)$ (0.8)$ (1.0)$ (0.3)$ (8.1)
2014 Budget Revision Net Impact to Fund Balance $ 0.5 $ 2.3 $ 0.4 $ 4.8 $ (0.3)$ 7.7
Additional Offers for Council Consideration
Sum of 2 Transfort MAX Budget Rev Requests - Ongoing (0.1) - (0.4) (0.5)
2014 Budget Revision Summary
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
To seek feedback from the Council Finance Committee on the City Manager’s recommended
revisions to the 2014 Budget.
BACKGROUND/DISCUSSION
City-wide, supplemental appropriations being recommended total $8.1 million. The General Fund
share is $6.2M, $0.8M is from the Keep Fort Collins Great Fund, $1M is from Utility funds, and the
remaining $0.1M is from the Data and Communications Fund. A complete packet of requests is
attached. Following are key objectives which the recommendations are intended to:
• Address stated Council priorities
• Cover increased costs for power
• Complete funding for North College Improvements
• Maintain fund balances and start rebuilding reserves in the General Fund to
support future needs and economic uncertainty
The recommended 2014 budget supplemental appropriations meet these goals.
Several major revenues are expected to be higher than originally anticipated for 2013 and 2014.
Sales tax collections are $2.1M higher; Use tax collections are $1.2M higher in 2013, Building
permit and inspection fees for 2013 and 2014 are $2.5M higher, and Utility revenue is expected to be
$5.8M higher due to demand driven revenue. In addition to the revenue increases there is $5.2M
that was previously reserved in the General Fund for anticipated North College costs, and $1.2M of
Keep Fort Collins Great Fund reserves that are available.
For the 2014 Budget Revision Requests, staff recommends using approximately $6.3 million from
reserves and one time revenue increases. The requests include $97k from Data & Communications
Fund reserves, $761k from Keep Fort Collins Great reserves, and $5.4 million from the General
Fund reserve balance and one-time revenue. The updated revenue and expenses, as well as the
individual offers, are summarized on pages 1 through 4. Descriptions of the recommended requests
follow the summary pages.
For the Revision process only major revenue sources are updated. Any excess revenues that are not
budgeted will increase the fund balance. Staff recommends using the excess revenue to build the
City’s reserves based on the philosophy that we should save resources when we have a good year
because it will provide us flexibility for our future needs.
The revision process is not part of our official biennial Budgeting for Outcomes process, so there
was no review by BFO Results Teams or Boards and Commissions. However, the Executive
Leadership Team and City Manager conducted a comprehensive review to determine which requests
should be forwarded on for Council's consideration. Revised revenue projections and anticipated
fund reserves were carefully considered when making these recommendations.
2014 BUDGET REVISION REQUESTS
2014 BUDGET REVISION REQUESTS
TABLE OF CONTENTS
SUMMARY OVERVIEWS
Revision Request Summary by BFO Outcome .................................................................... 1
Revision Request Summary by Fund ................................................................................... 2
Revenue / Expense Revision Summary - All Funds……………………………………….. ....4
GENERAL FUND REVISION REQUESTS
Agenda Management System ............................................................................................. 5
Arthur Ditch Culvert Replacement at Mulberry Pool ........................................................... 6
City Attorney Office Staffing ................................................................................................ 7
Development Review – IT Systems Staffing ....................................................................... 8
Development Review Staffing ............................................................................................. 9
Fort Collins 150 Year Museum Exhibition ......................................................................... 10
Medical Marijuana Licensing Expenses ............................................................................ 11
Nature in the City………………………… .......................................................................... 12
North College Improvements – Conifer to Willox…………………………………………… .13
November 2014 Special Election ...................................................................................... 14
Police Senior Systems Administrator ................................................................................ 15
School Resource Officer ................................................................................................... 16
Train Horn Waiver – College to Laurel .............................................................................. 17
OTHER FUND REVISION REQUESTS (unless already listed above)
Keep Fort Collins Great Fund
PFA 2014 Budget Revision Offer ............................................................................ 18
Senior Center Expansion ........................................................................................ 20
Climate Action Planning .......................................................................................... 21
Museum Local History Exhibit Cases ...................................................................... 22
Forestry Work Backlog Catchup ............................................................................. 23
Inclusionary Zoning for Affordable Housing Analysis & Ord. Recommendation ..... 24
Oil and Gas Inspection and Monitoring Program .................................................... 25
Triple Bottom Line (TBL) Decision Framework & Toolbox ...................................... 26
Light & Power Fund
Light and Power Payments in Lieu of Taxes .......................................................... 27
Light and Power Purchase Power .......................................................................... 28
Data & Communications Fund
PC Replacement Builds .......................................................................................... 29
ADDITIONAL OFFERS FOR COUNCIL CONSIDERATION
Transit and Transportation Services Fund
East-West Transit Connections .............................................................................. 30
Evening Hour Service for East-West Transit Connections ..................................... 31
Results Page Related
Area Number Offer # Adjustment Requested Ongoing $ One-Time $
Culture, Parks & Recreation
10 New Fort Collins 150 Year Museum Exhibition $0 $100,000
22 121.1 Museum Local History Exhibit Cases $0 $50,000
23 195.1 Forestry Work Backlog Catchup $0 $50,000
20 49.6 Senior Center Expansion $0 $210,971
$0 $410,971
Economic Health
8 132.8 Development Review - IT Systems Staffing (1.5 FTE
Contractual)
$147,270 $0
9 132.1 & 2 Development Review Staffing (3.0 FTE - Contractual) $200,000 $0
$347,270 $0
Environmental Health
25 197.2 Oil and Gas Inspection and Monitoring Program $0 $30,000
17 New Train Horn Waiver - College to Laurel $0 $125,000
$0 $155,000
High Performing Government
5 68.3 Agenda Management System $25,000 $0
6 New Arthur Ditch Culvert Replacement at Mulberry Pool $0 $500,000
7 176.1 City Attorney Office Staffing (2.5 FTE) $283,483 $0
21 238.2 Climate Action Planning $0 $60,000
11 New Medical Marijuana Licensing Expenses $20,000 $0
14 68.2 November 2014 Special Election $0 $175,000
29 36.2 PC Replacement Builds (1.0 FTE - Contractual) $0 $97,000
15 35.1 Police Senior Systems Administrator (1.0 FTE) $108,536 $0
26 238.2 Triple Bottom Line (TBL) Decision Framework & Toolbox $0 $20,000
$437,019 $852,000
Neighborhood Livability
24 New Inclusionary Zoning for Affordable Housing Analysis and
Ordinance Recommendation
$0 $60,000
12 40.1 Nature in the City $0 $129,700
$0 $189,700
Safe Community
27 56.1 Light and Power Payments in Lieu of Taxes $0 $262,400
28 57.1 Light and Power Purchase Power $0 $740,168
18 222.1 PFA 2014 Budget Revision Offer $0 $279,760
16 157.2 School Resource Officer (1.0 FTE) $55,970 $88,925
$55,970 $1,371,253
Transportation
13 105.9 North College Improvements -- Conifer to Willox $0 $4,300,000
$0 $4,300,000
$840,259 $7,278,924
$8,119,183
Results Page Related
Area Number Offer # Adjustment Requested Ongoing $ One-Time $
Additional Offers for Council Consideration
Transportation
30 119.8 East-West Transit Connections $149,766 $110,234
31 119.8 Evening Hour Service for East-West Transit Connections $240,000 $0
$389,766 $110,234
$500,000
NOTE: The above requests include an increase of 4.5 classified FTE and 5.5 contractual FTE.
2014 Budget Revision Requests - BY BFO OUTCOME
Revision Requests
Revision Requests
1
Page Related
Fund Number Offer # Adjustment Requested Ongoing $ One-Time $ TOTAL $
General Fund 5 68.3 Agenda Management System $25,000 $0
6 New Arthur Ditch Culvert Replacement at Mulberry Pool $0 $500,000
7 176.1 City Attorney Office Staffing (2.5 FTE) $73,000 $0
8 132.8 Development Review - IT Systems Staffing (1.5 FTE Contractu $147,270 $0
9 132.1 Development Review Staffing (3.0 FTE - Contractual) $200,000 $0
10 New Fort Collins 150 Year Museum Exhibition $0 $50,000
11 New Medical Marijuana Licensing Expenses $20,000 $0
12 40.1 Nature in the City $0 $129,700
13 105.9 North College Improvements -- Conifer to Willox $0 $4,300,000
14 68.2 November 2014 Special Election $0 $175,000
15 35.1 Police Senior Systems Administrator (1.0 FTE) $108,536 $0
16 157.2 School Resource Officer (1.0 FTE) $55,970 $88,925
17 New Train Horn Waiver - College to Laurel $0 $125,000
Total General Fund $629,776 $5,368,625 $5,998,401
KFCG Fund
Fire & Emergency 18 222.14 PFA 2014 Budget Revision Offer $0 $279,760
Sub-Total Fire & Emergency $0 $279,760 $279,760
Parks & Recreation 20 49.6 Senior Center Expansion $0 $210,971
Sub-Total Parks & Recreation $0 $210,971 $210,971
Other Community 21 238.2 Climate Action Planning $0 $60,000
Priorities 22 121.1 Museum Local History Exhibit Cases $0 $50,000
23 195.1 Forestry Work Backlog Catch-up $0 $50,000
24 New
Inclusionary Zoning for Affordable Housing Analysis and
Ordinance Recommendation $0 $60,000
25 197.2 Oil and Gas Inspection and Monitoring Program $0 $30,000
26 238.2 Triple Bottom Line (TBL) Decision Framework & Toolbox $0 $20,000
Sub-Total Other Community Priorities $0 $270,000 $270,000
Total KFCG Fund $0 $760,731 $760,731
Museum Fund 10 New Fort Collins 150 Year Museum Exhibition $0 $50,000
$0 $50,000 $50,000
2014 Budget Revision Requests - BY FUND
Revision Requests
2
Page Related
Fund Number Offer # Adjustment Requested Ongoing $ One-Time $ TOTAL $
2014 Budget Revision Requests - BY FUND
Revision Requests
Light & Power 27 56.1 Light and Power Payments in Lieu of Taxes $0 $262,400
28 57.1 Light and Power Purchase Power $0 $740,168
Total Light & Power Fund $0 $1,002,568 $1,002,568
Water Fund 7 176.1 City Attorney Office Staffing (1.5 FTE) $210,483 $0
$210,483 $0 $210,483
Data & 29 36.2 PC Replacement Builds (1 FTE - Contractual) $0 $97,000
Communications Total Data & Communications Fund $0 $97,000 $97,000
Total All Funds $840,259 $7,278,924 $8,119,183
Page Related
Fund Number Offer # Adjustment Requested Ongoing $ One-Time $ TOTAL $
Additional Offers for Council Consideration
KFCG - Other Transportation 30 119.8 East-West Transit Connections $0 $110,234
Sub-Total Other Transportation $0 $110,234 $110,234
Transit Services 30 119.8 East-West Transit Connections $125,293 $0
31 119.8 Evening Hour Service for East-West Transit Connections $180,235 $0
Total Transit Services Fund $305,528 $0 $305,528
Transportation 30 119.8 East-West Transit Connections $24,473 $0
31 119.8 Evening Hour Service for East-West Transit Connections $59,765 $0
Total Transit Services Fund $84,238 $0 $84,238
Total Additional Items $389,766 $110,234 $500,000
NOTE: The above requests include an increase of 4.5 classified FTE and 5.5 contractual FTE.
Revision Requests
3
4
Description
General
Fund -
Ongoing
General
Fund -
One Time
General
Fund (Dev.
Review)
KFCG -
Other Tran
KFCG -
Fire
KFCG -
Parks and
Recreation
KFCG -
Other Comm
Priorities
Transit
Services
Transpor-
tation
Light &
Power Water
Data &
Communica-
tions
Other
Various
Funds TOTAL
Funding Sources
Sales & Use Tax: Projection compared to budget $ 1,063,723 $ 2,193,940 $ 3,257,662
Development Review revenue 2,520,000 $ 2,520,000
Previously assigned General Fund reserves for North College 5,200,000 $ 5,200,000
Light and Power revenue increases (See note 4) 5,802,705 $ 5,802,705
Light and Power PILOTs 262,400 $ 262,400
KFCG - Other Transportation Reserves 272,159 $ 272,159
KFCG - Fire and Emergency Reserves 279,760 $ 279,760
KFCG - Parks and Recreation Reserves 326,378 $ 326,378
KFCG - Other Community Priorities Reserves 303,817 $ 303,817
Reduction in 2013 revenue forecast for Municipal Court (249,000) $ (249,000)
Data and Communications Reserves 97,000 $ 97,000
Art in Public Places - Artwork revenue (12,947) $ (12,947)
Art in Public Places-Admin. revenue to be funded from APP Reserves (136,242) $ (136,242)
Transportation - Work for Others (250,000) $ (250,000)
Transportation - Fees 185,000 $ 185,000
Equipment - Charges to Transfort (will receive if revision approved 67,903 $ 67,903
General Fund 2012 unassigned fund balance shortfall (300,000) $ (300,000)
Woodward General Fund Phase I Backfill (990,000) $ (910,000) $ (1,900,000)
Total of Revenue Changes 1,026,123 6,154,940 1,610,000 272,159 279,760 326,378 303,817 - (65,000) 5,802,705 - 97,000 (81,286) 15,726,595
2014 Recommended Budget Revision Requests
Sum of 2014 Budget Revision Requests - Ongoing (282,506) (347,270) - - - - - - - - - (629,776)
Sum of 2014 Budget Revision Requests - One-time - (5,368,625) - - (279,760) (210,971) (270,000) - - (1,002,568) (210,483) (97,000) (50,000) (7,489,407)
Total of Supplemental Appropriations (282,506) (5,368,625) (347,270) - (279,760) (210,971) (270,000) - - (1,002,568) (210,483) (97,000) (50,000) (8,119,183)
2014 Budget Revision Net Impact to Fund Balance $ 743,617 $ 786,315 $ 1,262,730 $ 272,159 $ - $ 115,407 $ 33,817 $ - $ (65,000) $ 4,800,137 $ (210,483) $ - $ (131,286) $ 7,607,412
Additional Offers for Council Consideration
Sum of 2 Transfort MAX Budget Revision Requests - Ongoing $ (110,234) $ (305,528) $ (84,238) $ (500,000)
Revision Title:
Fund: Contact: Wanda Nelson
Outcome: Package/Offer #: 68.3
Funding Source #1: Total Amount: $25,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Agenda Management System
None
As a part of the 2013-2014 budget process, the City Clerk's Office submitted an enhancement offer for
Council agenda improvements. The offer was not funded.
During late 2012 and early 2013, staff continued to investigate software solutions to automate agenda
production. A vendor was selected and the City Manager authorized staff to proceed with procurement
of the selected system. The agenda management system is offered by the vendor as software-as-a-
service, and monthly subscription fees for 2014 are $25,000.
This revision would establish funding for 2014.
100 - GENERAL FUND
High Performing Government
General Fund - Ongoing
5
Revision Title:
Fund: Contact: Tracy Oschner
Outcome: Package/Offer #: None
Funding Source #1: Total Amount: $500,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Arthur Ditch Culvert Replacement at Mulberry Pool
None
This request is fund the Arthur Ditch box culvert that runs underneath the Mulberry Pool Parking lot.
Recently, the parking lot started sinking (caving-in) near the west entrance. The City’s engineering
department determined that it is the City’s responsibly to replace this underground culvert and
estimated the cost to be $500,000. Design is underway and replacement is scheduled for Spring 2014.
The area in the parking lot that is sinking has been closed until the replacement is complete.
100 - GENERAL FUND
High Performing Government
General Fund - Reserves
6
Revision Title:
Fund: Contact: Mary Donaldson
Outcome: Package/Offer #: 176.1
Funding Source #1: Funding Amount #1: $73,000
Funding Source #2: Funding Amount #2: $210,483
Total Amount: $283,483
FTE Requested:
1.0 FTE - Senior City Attorney
1.0 FTE - Paralegal
Description:
2014 BUDGET REVISION REQUEST
City Attorney Office Staffing
0.5 FTE - Legal Secretary
In the 2013-14 budget cycle, the City Council approved the following additional personnel for the City
Attorney’s Office: 1.0 FTE Attorney, 1.0 FTE paralegal, 0.25 FTE legal assistant. The new attorney position
has been filled, an existing legal assistant position has been increased by 0.25 FTE, and the office is in the
process of hiring the funded paralegal.
Even with these additional resources, it has become apparent that the organization’s need for legal services
has increased to a level that requires more personnel if the current service level is to be maintained.
Factors that appear to have contributed to the increase include: projects that entail extensive negotiations
and complicated financial transactions; a very active Urban Renewal Authority; increased citizen
involvement and a corresponding increase in the number of legal opinions that the office provides; office
participation in numerous management teams and work groups; and the fact that new technology calls for
quicker turnaround time.
To meet these needs, the office has undertaken a comprehensive review of its operations. It appears that
the most pressing need for additional personnel is in the Utilities area. That need can best be addressed by
the addition of a seasoned water law attorney and a Utilities paralegal, to be funded by Utility Services. An
in-house water attorney and Utilities paralegal would take over some of the water law work that has
previously been handled by outside counsel, and would also handle other needs of the Water Utility. In
addition, support staff would be further augmented by the addition of another .5 FTE legal assistant. These
changes would allow for the current workload to be distributed among more people, and would also allow
the more senior attorneys in the office to take on mentoring and supervisory responsibilities.
Finally, $15,751 is being requested to increase the amount available for 2014 compensation increases from
2% to 3.5%, and $5,000 to increase the annual amount available for outside legal counsel services from
$13,000 to $18,000, so that such services can be more regularly utilized.
100 - GENERAL FUND
High Performing Government
General Fund - Ongoing
Utilities and Natural Areas
7
Revision Title:
Fund: Contact: Delynn Coldiron
Outcome: Package/Offer #: 132/132.8
Funding Source #1: Total Amount: $147,270
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Development Review - IT Systems Staffing
1.0 FTE - Systems Specialist - Contractual
This request funds additional technical staff to support technology efforts associated with the Development
Review Center and Code Enforcement activities. The development review, permitting, inspection,
contractor licensing and enforcement functions provided by these groups have become fully automated
over the past four years. This has included the consolidation of multiple disparate systems into one, which
has enabled us to provide better service to customers, more efficiently, and with more transparency and
predictability. Numerous departments work simultaneously in the system on each project, permit or case,
to enter review comments, holds and approvals. This system also tracks specific project data, parcel and
owner information, professionals associated with a project, inspection and related results, fees and
payments, special notices and conditions, and City-specific information such as historic districts, floodplain,
river buffers, zoning, etc.
In addition to new jobs, these activities also provide ongoing revenues to the City through fees and taxes.
This technology is critical to our ability to deliver our services to the Community. Funding this request will
result in the ability to refine existing system functionality together with the ability to develop and
implement new system functionality. Examples of this include: 1) expanding current processes associated
with landscape and environmental inspections, 2) tracking and monitoring items associated with final
project compliance such as Development Agreement specifics, 3) implementation of e-review, 4)
implementation of on-line permits for items that do not require plan review, 5) automation of rental
housing and dangerous building inspection and related program activities, 6) configuration of a licensing
module to increase timeliness and efficiency of contractor licensing and renewal activities, 7) automating
Home Occupation licensing and 8) automating banner permit activities. Increased accuracy, timeliness and
efficiency around data reporting and analysis, support for I-Pad and I-Phone apps, and additional assistance
for system upgrades, testing, troubleshooting and maintenance are additional benefits that will be realized.
Development Review revenues are approximately $900,000 over projected levels as of June 30, 2013. The
General Fund portion of this is $665,000. It is expected that these revenues will continue to come in at a
sufficient level to fund these additional items at 100%.
100 - GENERAL FUND
Economic Health
General Fund - Ongoing (Dev. Review)
0.5 FTE - Systems Specialist - Contractual
8
Revision Title:
Fund: Contact: Delynn Coldiron
Outcome: Package/Offer #: 132.1 & 132.2
Funding Source #1: Total Amount: $200,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Development Review Staffing
1.0 FTE - Planning Intern - Contractual
This request funds additional support staff for the City's Development Review Center. As of June 30, 2013,
Development Review submittals were up 25% over 2013 projections and up 65% over 2012 actuals.
Conceptual reviews were up 44% over 2013 projections and up 55% over 2012 actuals. During the year,
we have also realized an increase in project appeals, approved grant projects, financial responsibilities
related to the Restorative Justice grants, and an overall need for additional support services to
accommodate the workload and increased demands for service. Funding this request will help ensure:
1) Timely assistance to customers and related submittal processing
2) support for administrative hearings
3) support for neighborhood meetings
4) additional coverage for Boards & Commission regular and special meetings (P&Z Board has increased
time and number of meetings)
5) support for historic preservation and Restorative Justice grants
6) additional assistance for records management, especially related to appeals
7) assisting City Planners with presentation materials, maps, neighborhood mailings and special events
8) County Referral reviews
9) timely turnaround for things such as project and permit fee estimates
10) more timely web and form/brochure updates
11) adequate support for the additional duties related to Long Range Planning support
12) a reduction in over-time and comp-time accruals.
Funding this request will also help ensure that performance measures related to turn-around times are
met, as well as to help staff accommodate the special requests for quicker turn around times that are
being received more frequently. It is anticipated that this level of activity will continue for several years.
Development Review revenues are approximately $1.1M over projected levels as of July 31, 2013. The
General Fund portion of this is $800,000. It is expected that these revenues will continue to come in at a
sufficient level to fund these additional items at 100%. Staff received approval from the City Manager in
April, 2013, to move forward with additional staffing to help accommodate the increased service levels
currently being experienced. This is a continuation of that approval with the exception that the positions
requested have been changed from hourly to contractual, and the Building & Development Review Tech
position has been changed from 0.5 FTE to 1.0 FTE based on need.
100 - GENERAL FUND
Economic Health
General Fund - Ongoing (Dev. Review)
1.0 FTE - Admin Assistant - Contractual
1.0 FTE - Building & Develop Review Tech - Contractual
9
Revision Title:
Fund: Contact: Cheryl Donaldson
Outcome: Package/Offer #: 121.1
Funding Source #1: Funding Amount #1: $50,000
Funding Source #2: Museum Fund - Reserves Funding Amount #2: $50,000
Total Amount: $100,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Fort Collins 150 Year Museum Exhibition
None
2014 marks the 150th anniversary of Fort Collins and the Fort Collins Museum of Discovery is planning on
celebrating that milestone with a community-driven exhibit that explores the question "what makes Fort
Collins Fort Collins?" The money will be used to provide infrastructure needed in the gallery and for exhibit
design and fabrication.
100 - GENERAL FUND
Culture, Parks and Recreation
General Fund - Reserves
10
Revision Title:
Fund: Contact: Rita Harris
Outcome: Package/Offer #: None
Funding Source #1: Total Amount: $20,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Medical Marijuana Licensing Expenses
None
In November 2012, voters approved the reinstatement of medical marijuana licenses in Fort Collins. At
that same election, voters statewide approved use and possession of recreational marijuana and
established a retail marijuana licensing scheme.
Pursuant to Initiative 301 (medical marijuana licensing), the City has contracted with a law firm in
Centennial (the sole respondent to a Request for Proposals) to serve as the local licensing authority for
Fort Collins at a rate of $175 per hour. Application and license fees collected in first quarter 2013 have
been appropriated to defray costs in 2013. However, due to a cap on the number of medical marijuana
licenses (which previous business owners have met and exceeded pursuant to Initiative 301), revenue in
2014 will be significantly lower because licensed business will be subject to renewal application fees,
rather than new application fees. It is anticipated that the role of the Authority in renewal matters will be
minimal; however, the potential exists for disciplinary hearings, for which there is no fee received. In
addition, there are other types of license transactions that the Authority will need to consider, such as
manager changes, ownership changes, location changes, etc. Staff is requesting $20,000 in base funding
in 2014 to cover the cost of services provided by the Medical Marijuana Licensing Authority.
As of the writing of this request, Council had not yet indicated its desire with regard to retail marijuana
licensing. This revision does not include funding for retail marijuana licensing.
Costs associated with medical marijuana licensing are offset by sales and use tax revenue collected. Over
a 29-month period, over $662,000 in sales and use tax was collected from medical marijuana businesses.
Direct revenue, in the form of license renewal fees for existing businesses, is estimated to be $27,250 in
2014.
100 - GENERAL FUND
High Performing Government
General Fund - Ongoing
11
Revision Title:
Fund: Contact: Lindsay Ex
Outcome: Package/Offer #: 40.1
Funding Source #1: Total Amount: $129,700
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Nature in the City
None
The 2013 work program for Planning Services (Offer 40.1) included a limited scope (8 months) to conduct
the Nature in the City study, based on direction from City Plan Policy LIV 14.1. The intent of this Policy is to
integrate design elements such as natural groupings of planting areas, water features, and rooftop gardens
within public spaces, specifically in mixed-use activity centers.
Based on discussions with several Councilmembers, an expanded scope has been prepared to develop a
Nature in the City Strategic Plan. This plan will facilitate a connected system of public and private lands,
weaving together the natural elements throughout our City. As our community develops, especially with
higher densities, the potential for losing these special features are directly threatened unless we take
action to ensure they are preserved. The intent of this plan is to develop a triple bottom line approach to
preserve, enhance, and add to those natural areas within our community that are so important to creating
our sense of place to make sure we always provide nature within the City.
The expanded proposal consists of three phases that (1) assesses our existing Nature in the City assets and
gaps, identifies opportunities for integrating new landscape features into public spaces; (2) develops a
strategic plan for how to build upon our assets and bridge the nature gaps, and (3) initiates plan
implementation.
This offer is enhanced by strategic partnerships, both internally through a multi-disciplinary staff team, and
externally through the involvement of Colorado State University. An extensive public engagement effort
would be undertaken to develop the strategic plan, including a Citizens Advisory Committee, to guide the
plan's development throughout the life of the project.
Project budget items include:
$50,000 - Salaries and Benefits (Contractual Environmental Planning Technician, Field Technician)
$60,000 - Consultants (Colorado State University and Graphics Assistance)
$700 - Vehicle Mileage
$7,000 - Supplies and Equipment (Field equipment, meeting supplies, mailings, and room rentals)
$12,000 - Contingency (10% of project costs)
100 - GENERAL FUND
Neighborhood Livability
General Fund - Reserves
12
Revision Title:
Fund: Contact: Dean Klingner
Outcome: Package/Offer #: 105.9
Funding Source Total Amount: $4,300,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
North College Improvements -- Conifer to Willox
None
Design of multi-modal roadway, landscaping, urban design and median improvements for North College
between Conifer and Willox is underway. Construction is scheduled to start in 2014. The total project
budget is $11.8 M including design, right of way acquisition, and construction. Given other funding
sources listed below, the remaining project cost is $4.3M. Staff has submitted an application for
additional State funding that could offset part of the $4.3M, however the City won't receive confirmation
on the additional funding until October of 2013.
The project funding is summarized below:
$11,800,000 Total project cost
1,752,481 Previous appropriation - 2012 Federal funds plus local match
1,940,000 Previous appropriation in 2013 for ROW and Design
$ 8,107,519 Remaining amount to be appropriated
1,508,360 Future Anticipated Appropriation in late 2013 - Construction Federal funds
1,000,000 Future Anticipated Appropriation in late 2013 - CDOT Resurfacing funds
1,300,000 Future Anticipated Appropriation in late 2013 - Estimated Savings from Vine to Conifer
Project
$ 4,299,159 Remaining unfunded need
100 - GENERAL FUND
Transportation
General Fund - Reserves
13
Revision Title:
Fund: Contact: Rita Harris
Outcome: Package/Offer #: 68.2
Funding Source #1: Total Amount: $175,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
November 2014 Special Election
None
In November 2004, voters approved a .25% sales and use tax for capital projects, commonly referred to as
the Building on Basics (BOB) tax. The tax was for established for 10 years (January 1, 2006 through
December 31, 2015).
It is anticipated that Council will want to ask the voters to extend the BOB tax at a special election to be
held in conjunction with the Larimer County General Election in November 2014.
This revision seeks to establish estimated funding for a November 2014 election in the amount of
$175,000. It is difficult to accurately estimate the cost, as the City and County have no prior experience
with the costs associated with conducting a General Election by mail ballot. All future County elections
must now be held by mail ballot, and ballots will be mailed to a larger segment of voters, pursuant to
legislation passed by the General Assembly in 2013. The estimated amount is based on the cost to
participate in the 2010 General Election, when Keep Fort Collins Great was approved by the voters, plus
additional funds for inflation.
100 - GENERAL FUND
High Performing Government
General Fund - Reserves
14
Revision Title:
Fund: Contact: Chris Banister
Outcome: Package/Offer #: 35.1
Funding Source: Total Amount: $108,536
FTE Requested:
Description:
1.0 FTE - Senior Systems Administrator
Police Services is highly dependent on technology solutions to deliver superior public safety and security
outcomes. They are currently involved in an upgrade to the Tiburon system, which supports dispatch, mobile
communication and records management and is the link between law enforcement and fire and rescue.
While previous contracts with Tiburon included system backup, the new contract does not. The new system
consists of approximately 30 servers that will require a substantial regimen of monitoring and backups to
ensure its successful ongoing operations. It will be the City’s responsibility to ensure that the systems and
servers are available and functioning correctly 24/7, and will require an additional staff person in order to
accomplish this.
This request covers the costs associated with hiring a Senior Systems Administrator to manage the 30+ servers
required for the Tiburon upgrade and provide the required system support and backup.
2014 BUDGET REVISION REQUEST
Police Senior Systems Administrator
603 - DATA AND COMMUNICATIONS FUND
High Performing Government
General Fund - Ongoing
15
Revision Title:
Fund: Contact: Lt. Jim Byrne
Outcome: Package/Offer #: 157.2
Funding Source #1: Total Amount: $144,895
FTE Requested:
Description:
Since 1995, Police Services has partnered with the Poudre School District to assign School Resource Officers
(SRO) to the schools. The cost of this program is split 50/50 between PSD funding and City funding. These
officers work cases that develop in the schools that would otherwise be assigned to patrol officers and
detectives. They also engage in many other tasks that keep the schools safe and build relationships among the
school staff members, students, families and neighbors of the schools. The program is designed to assign SROs
to each traditional high school (4) and middle school (7); the officers also work with the feeder schools for each
of their assigned schools. In 2006 PSD opened the seventh middle school, Kinard Middle School.
Due to budget conditions on both sides of this partnership, we have been unable to assign an SRO to this
school. Currently there are ten funded School Resource Officer (SRO) positions with one Police Sergeant
supervising the unit. With this year's focus on school safety following more violent tragedies in schools around
the country, and the improving budget conditions of both entities, this proposal to properly staff all of the
schools by adding 1 additional SRO.
In collaboration with Poudre School District, this offer would fund an additional SRO to be assigned to the
newest middle school starting in July 2014. (After a new officer has been hired and trained.) PSD has
committed to funding the other 50%, ultimately costing the City only half the cost it would otherwise pay for
an additional officer.
During the summer the SROs are assigned to other units and shifts throughout the department, which is an
additional benefit to the City given the cost sharing of the officers.
2014 Total Cost: $144,895 (Includes $32,956 in start-up costs.) 2015 Total Cost: $111,939
2014 General Fund: $117,002 2015 General Fund $56,153
2014 PSD: $27,893 (50% of ongoing costs for July - December) 2015 PSD: $55,786
2014 BUDGET REVISION REQUEST
School Resource Officer
1.0 FTE - School Resource Officer
100 - GENERAL FUND
Safe Community
General Fund - Ongoing
16
Revision Title:
Fund: Contact: Dan Weinheimer
Outcome: Package/Offer #: None
Funding Source #1: Total Amount: $125,000
FTE Requested:
Description:
None
Since 2005, the Federal Railroad Administration (FRA) has addressed highway-rail grade safety by requiring
trains to sound their horns at a higher decibel level and specific pattern of two long blasts, one short blast
and one long blast which has increased both the noise output and frequency of noise from engines. In
areas with a short distance between crossings, such as Downtown and the River District, the requirements
of the Rule result in prolonged train noise.
FRA officials have recommended that, for downtown Fort Collins between College Avenue and Laurel
Street, Fort Collins pursue a Waiver of Compliance from the Final Rule. A waiver will require Fort Collins
identify and implement structural improvements to maintain rail crossing safety. The Downtown Quiet
Zone Feasibility Study (completed in 2013) identified several combinations of improvements that could be
the basis of a waiver configuration.
This offer would fund technical assistance for the conceptual engineering and transportation planning as
well as a robust public engagement program. The funding for the related technical work is recommended
to be $100,000 while the public engagement portion of the offer is recommended at $25,000. This offer
would build on the Downtown Quiet Zone Feasibility Study but does require new RFPs for both technical
and public engagement work. An offer in a future BFO cycle would address funding needed for
infrastructure improvements associated with an approved waiver.
Technical work would include:
• Developing several conceptual options that meet FRA conditions for waivers
• Working with the FRA offices in Kansas City (Region 6) and Washington, DC (safety division HQ) on
technical questions
• Drafting the waiver application and collecting necessary supporting documentation
• Processing the waiver application through the complete FRA process
Public engagement work would include:
• Citizen and business community engagement
• Conducting several public meetings and an open house
• Drafting related collateral material
• Facilitation of sessions
2014 BUDGET REVISION REQUEST
Train Horn Waiver - College to Laurel
100 - GENERAL FUND
Economic Health
General Fund - Reserves
17
Revision Title:
Fund: Contact: Kirsten Howard
Outcome: Package/Offer #: 222.14
Funding Source #1: Total Amount: $279,760
FTE Requested:
Description:
Following are priorities and options for the 2014 budget revision request, which Chief DeMint will be
discussing with his staff and the PFA Board of Directors for allocation in the PFA 2014 budget.
TOP PRIORITY (in priority order)
PFA Accreditation Manager - $125,100 - PFA has determined that the appropriate method to meet the quest
of excellence is through an accreditation process, which is a prescriptive self-evaluation process that drives the
organization to develop new performance measures as well as an evaluation of new and existing services and
deployment. An accreditation manager is currently paid from PFA overtime funds, however, funding for this
position expires in 2013, therefore the request is being made for a one-year extension in funding for the
accreditation manager position.
PFA Public Educator (two-year contractual position) - $154,270 -The need exists for a professional educator
who can bring the latest educational theory to PFA programs and greatly enhance the public educational
efforts. This position would be responsible for creating and developing innovative outreach initiatives and
materials; analyzing and interpreting statistical data; implementing processes that will increase community
preparedness and participation; and coordinate and participate in community engagement activities.
Half-Time Wildland Coordinator (one-year contractual position) - $31,200 - This position would focus on
community mitigation in the wildland arena, including community education, prevention, and command and
control of wildland fire situations.
OTHER PRIORITIES/OPTIONS (in financial order, not priority order)
Enhance Training Opportunities - $15,000 - Enhance training opportunities through scholarships for two to
four personnel to attend conferences such as Fire Department Instructors Conference, Firehouse, Fire Rescue
International, and Women in the Fire Service.
Continued on next page->
2014 BUDGET REVISION REQUEST
PFA 2014 Budget Revision Offer
Not Applicable
840 - POUDRE FIRE AUTHORITY
Safe Community
KFCG Fire & Emergency - Reserves
18
Remote Automatic Weather Station (RAWS) - $20,200 - A RAWS provides automatic hourly weather
conditions via a satellite uplink as well as extensive fire data including fuel moistures, which help predict fire
behavior and firefighter safety. Adding a RAWS to the eastern side of the PFA jurisdiction (PFA has a RAWS on
the western side of the jurisdiction) would greatly enhance the understanding of varying fire conditions
experienced within the different and distinct climatic zones.
SIM Table - $30,000 - A modern-day sand table that simulates real fire behavior onto real topography and
communities. This technology improves training methods by providing real-time, direct access to fuels data,
detailed topography and 3-D satellite imagery.
Wildland Personal Protective Equipment for Uniformed Personnel - $50,000 - Recent wildfire seasons have
brought forth the need for an increased amount of Personal Protective Equipment (PPE). In large incidents of
this nature the need for additional PPE quickly outstrips the availability. The move toward a system where all
uniformed personnel would be issued a wildland pack, fire shelter, canteen, headlamp and gloves is important.
Type 6 Fire Engine (Brush Truck) - $135,000 - These heavy duty pick-ups with a water tank and pump on the
back are used in the wildland interface areas for firefighting. PFA's fleet of Type 6 engines have been heavily
used over the past years due to heavy wildfire seasons. Due to numerous instances of insufficient apparatus of
this type the need for an additional Type 6 Engine has been identified, and is on PFA's unfunded priorities list
as a high priority.
19
Revision Title:
Fund: Contact: Janice Saeger
Outcome: Package/Offer #: 49.6
Funding Source: Total Amount: $210,971
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Senior Center Expansion
None
The Senior Center Expansion Project is progressing on schedule with a design that meets the ballot
language approved by voters in 2005. However, some elements of the expansion are currently
unfunded including these items:
- Additional 100 parking spaces needed;
- Finish expanded space as a multi-purpose room or upgrade to a theater/presentation room;
- Add upstairs unisex restroom;
- Enclose atrium attached to social gathering space; and
- Additional 800 square foot storage/green room area.
The total of these items range from $1,164,000 to $1,568,000 depending on the finish of a multi-
purpose room or theater/presentation room. These components would add substantial value to the
community and signify completion of Phase II of the Senior Center.
The Senior Center Expansion Committee has applied for several grants which are pending and has
raised over $150,000 to date through other fundraising efforts. Appropriating the Parks and
Recreation KFCG Reserves of $210,971 towards this project combined with the Expansion Committee's
grant and fundraising efforts will address a significant potion of the priorities listed above.
Specifically, the KFCG Reserve appropriation will be applied to completing the multi-purpose room
without the additional components needed as a theater or presentation space. This portion of the
project is estimated at a total cost of $296,000.
254 - KEEP FORT COLLINS GREAT FUND
Culture & Recreation
KFCG Parks & Recreation - Reserves
20
Revision Title:
Fund: Contact: Lucinda Smith
Outcome: Package/Offer #: 238.2
Funding Source: Total Amount: $60,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Climate Action Planning
None
2013/2014 is an optimal time for Fort Collins to re-evaluate its community greenhouse gas (GHG) goals
and update its Climate Action plan (CAP). Three compelling reasons are that scientific data indicates
increasing urgency to address climate change, new technological opportunities have arisen since 2008
(smart meter, etc.), and the City's Energy Policy is being updated in 2013. A limited amount of funding is
available to evaluate the community GHG goals from the existing Sustainability Strategic Plan offer.
However, $60,000 in additional funding is being sought to update the Climate Action Plan. This funding
would be used for consulting assistance to research national and international best practices applicable
to Fort Collins (smart grid, district heat and energy, deep energy retrofits, geothermal, etc.), assess the
technical and financial feasibility of these strategies, compile various scenarios to meet desired GHG
goals, update the GHG emissions forecast, conduct a triple bottom line analysis of a draft CAP, and a
prepare a draft document. A small portion of the funding would be used to implement public outreach.
254 - KEEP FORT COLLINS GREAT FUND
High Performing Government
KFCG Other Comm. Priorities - Reserves
21
Revision Title:
Fund: Contact: Cheryl Donaldson
Outcome: Culture and Recreation Package/Offer #: 121.1
Funding Source #1: Total Amount: $50,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Museum Local History Exhibit Cases
None
In an effort to feature more local history stories on the exhibition floor, FCMoD requests funding to
implement the following: the completed design of the growth of the city area; the purchase and
installation of an artifact case in the beet shack; and the purchase and installation of an artifact case to
feature artifacts that reflect historic innovation.
254 - KEEP FORT COLLINS GREAT FUND
KFCG Other Comm. Priorities - Reserves
22
Revision Title:
Fund: Contact: Tim Buchanan
Outcome: Package/Offer #: 195.1
Funding Source: Total Amount: $50,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Forestry Work Backlog Catchup
None
This budget revision request is to perform critical tree pruning and removal work to reduce the
Forestry backlog of work. This backlog has resulted from the October 2011 storm where Forestry
resouces were diverted for six months, a City tree inventory that has been growing by 600-900 trees
per year and from the increased maintenance needed on maturing and declining trees. Since many
of these jobs will correct serious safety issues it is important to address this work as soon as possible.
With a long pruning cycle mature trees often have dead and weak limbs that can be a serious public
safety hazard. In some cases trees have declined and need to be removed.
Work will be performed with contract crews and will focus on jobs that improve tree health and those
that correct serious public safety situations. Improving public safety is an important part of this
request.
254 - KEEP FORT COLLINS GREAT FUND
Culture & Recreation
KFCG Other Comm. Priorities - Reserves
23
Revision Title:
Fund: Contact: Sue Beck-Ferkiss
Outcome: Package/Offer #: None
Funding Source: Total Amount: $60,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Inclusionary Zoning for Affordable Housing Analysis and Ordinance Recommendation
None
This offer is a one time offer to hire a consulting firm to investigate the potential benefits of Inclusionary
Zoning in assisting the community in expanding its affordable housing stock. Use of a consulting firm for
this effort eliminates the need for retaining FTEs for a single time effort.
City Council has identified affordable housing funding as a priority. Affordable housing inventory has been
lagging behind the demand for affordable housing. In combination with community growth and university
growth projections, the demand is expected to increase. Existing development incentives and current
public funding alone is not enough to entice developers to build new, needed affordable housing. It is
anticipated providing affordable housing to meet current and future needs will require a combination of
existing incentives, public funding, impact fees and new strategies.
This offer is intended to partially address housing needs through a new policy or ordinance that would
assist in meeting community affordable housing needs. Following are the key steps that would lead to the
preparation of an ordinance or policy which would come to Council for consideration:
1. Develop a baseline of best practices. Research successful and unsuccessful models in use in other
communities. The study would include multiple alternatives 2. Review model ordinances. 3. Gather public
input through open houses and focus groups. 4. Develop alternatives and vet them with the public. 5.
Bring preferred alternatives to Council in a work session. Draft Final ordinance/policy for Council
consideration.
254 - KEEP FORT COLLINS GREAT FUND
Neighborhood Livability
KFCG Other Comm. Priorities - Reserves
24
Revision Title:
Fund: Contact: Laurie Kadrich
Outcome: Package/Offer #: 197.2
Funding Source: Total Amount: $30,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Oil and Gas Inspection and Monitoring Program
None
This offer provides additional funding for an inspection and monitoring program related to oil and gas
development in Fort Collins. Offer 197.2, funded in the 2013-2014 budget, allocates $80,000 toward the
development of regulations, monitoring, and inspection of oil and gas operations. In 2013, staff has
conducted public outreach related to oil and gas development ($10,000) and plans to utilize the
remaining 2013 funds ($30,000) to conduct an assessment of Prospect Energy's compliance with the
operator agreement (approved May 2013).
In 2014, the existing project budget will support ongoing air quality monitoring and follow-up monitoring
in accordance with the approved operator agreement. Based on Council direction to assess all current
environmental conditions, this offer requests an additional $30,000 to assess current environmental
conditions related to water quality.
The water quality assessment includes a review of site hydrogeology, site characterization, sampling and
analysis of 12 existing wells for standard water quality parameters and BTEX, and a site assessment
report.
The requested funds will be utilized to hire a third party contractor to carry out these activities. Current
staff will coordinate the work of the contractor and conduct any necessary outreach related to findings.
254 - KEEP FORT COLLINS GREAT FUND
Environmental Health
KFCG Other Comm. Priorities - Reserves
25
Revision Title:
Fund: Contact: Bonnie Pierce
Outcome: Package/Offer #: 238.2
Funding Source: Total Amount: $20,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Triple Bottom Line (TBL) Decision Framework & Toolbox
None
A TBL Decision Framework is needed to inform the City's decision-making process by evaluating
sustainability benefits and tradeoffs associated with decisions. This request is to fund the research and
development of a "TBL Decision Framework and Toolbox" that will evaluate the TBL impacts of policies,
plans, strategies or projects. The overall aim of the TBL Decision Framework is to facilitate progress
towards the City's major sustainability goals. It should reveal synergies (win:win) between TBL spheres,
or as a secondary aim, it should demonstrate that improvements are possible in one sphere with small or
no impact in the other two bottom lines. It should support active decision-making, with complexity,
rather than a status quo approach. The framework will encourage early collaboration and integration
across departments and should address a range of policy priorities (e.g. climate change impact
assessment, poverty impact assessment, etc.).
254 - KEEP FORT COLLINS GREAT FUND
High Performing Government
KFCG Other Comm. Priorities - Reserves
26
Revision Title:
Fund: Contact: Ellen Switzer
Outcome: Package/Offer #: 56.1
Funding Source: Total Amount: $262,400
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Light and Power Payments in Lieu of Taxes
None
By Charter, the Light and Power Utility makes a contribution to the General Fund as a payment in lieu
of taxes (PILOTs). City Code sets PILOTs at 6% of operating revenues. When the 2013-2014 Budget
was developed, the 2014 PILOTs budget was based on the 2014 revenues projected at that time.
Since last year, the 2014 projected electric operating revenues have increased $4.6 million due to
higher than anticipated growth in 2012 and 2013 and projected growth in 2014. The increase in
growth is somewhat offset by smaller than projected wholesale and retail rate increases. The revised
revenue projection results in PILOTs increases of $262,400 for 2014.
501 - LIGHT & POWER FUND
Safe Community
Light & Power - Ongoing Revenue
27
Revision Title:
Fund: Contact: Ellen Switzer
Outcome: Package/Offer #: 57.1
Funding Source: Total Amount: $740,168
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Light and Power Purchase Power
None
Since the development of the 2013-2014 budget, staff has revised growth estimates for energy sales
and purchases from Platte River Power Authority from 0.7% per year to about 1.5% per year in 2014.
This is based on both on the increases experienced in 2012 and the new development occurring and
planned through out the city. In addition, Platte River Power Authority has revised the purchase
power wholesale rate projection for 2014 down from 4.0% to 2.19%. The combined result of the
revised projections is an increase in annual purchase power cost of $740,168. This appropriation is
required to meet contractual obligations to Platte River Power Authority for the purchase of power
should the increased growth occur as projected. With this revision, the total purchase power cost is
projected at $82,921,858 for 2014. Retail rate and revenue projections have been revised accordingly.
501 - LIGHT & POWER FUND
Safe Community
Light & Power - Ongoing Revenue
28
Revision Title:
Fund: Contact: Chris Banister
Outcome: Package/Offer #: 36.2
Funding Source: Total Amount: $97,000
FTE Requested:
Description:
1.0 FTE - PC Hardware/Software Specialist - Contractual
This request covers the 2014 lease payments for 300 personal computers to be delivered Q4, 2013. It also
includes one temporary contract resource to ensure these machines (and others) are built and efficiently
deployed, and address the needs and specifications of the employee user and the organization.
As a note, the previous replacement cycle for personal computers was set at 5 years or older. The failure rate
on machines over 5 years of age is greater than anticipated. When machines fail, it seriously inhibits
employees' ability to conduct critical business operations. The machines funded in this offer will help replace
equipment that is or will be older than 5 years.
2014 BUDGET REVISION REQUEST
PC Replacement Builds
603 - DATA AND COMMUNICATIONS FUND
High Performing Government
Data and Communication - Reserves
29
Revision Title:
Fund: Contact: Kurt Ravenschlag
Outcome: Package/Offer #: 119.8
Funding Source #1: KFCG Other Transportation - Reserves Funding Amount #1: $110,234
Funding Source #2: Funding Amount #2: $125,293
Funding Source #3: Funding Amount #3: $24,473
Total Amount: $260,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
East-West Transit Connections
None
MAX is intended to be part of an overall, integrated land use and transportation system. In order to realize the
full potential of MAX and to support the economic health of Downtown and Midtown, the new high frequency
transit service along the community’s central spine needs to be fed by robust east-west connections. This
budget revision request provides 30-minute service on Drake, Horsetooth, and Harmony roads so that MAX
riders can reach important destinations beyond the MAX corridor. Without the changes, east-west feeder
service to MAX would be limited in location and frequencies would be as low as 60 minutes. A similar budget
offer submitted during the 2013-2014 BFO cycle was ranked immediately below the funding line. Despite the
lack of funding, east-west transit connections continue to be a high priority that will affect the success of MAX
and the overall transit network. This request as revised removes service on Timberline Road between
Prospect and Harmony. The Timberline route is the least productive of all Transfort routes, and is operating
below the performance standard of 20 passengers per revenue hour. In addition, the Timberline route has
been identified for elimination under the proposed May 2014 MAX route alignments. The request would fund
a partial year of service (.66 of a full year's expense) to reflect east-west service changes beginning in mid-May,
2014.
This budget exception request supports the City’s goals toward Triple Bottom Line in the following ways:
1) Economic: MAX and its east-west feeders provide the essential infrastructure to support Transit Oriented
Development in Midtown and Downtown. Many residents, students, workers, and shoppers riding MAX will
need to be able to transfer to and from feeder bus service in order to reach their ultimate destinations. The
investment in additional service will provide significant community benefits in terms of increased retail and
development activity.
2) Social: In addition to serving transit-dependent riders, the MAX supported by strong east-west connections
will increase ridership by people who have multiple travel options, as the new transit services provide flexibility
for reaching important destinations, allowing quicker trips and less wait times.
3) Environmental: The investment in transit service is estimated to generate 155,197 annual rides. This
translates into significant benefits for air quality, congestion relief, and less parking and impervious surface,
allowing for higher densities in infill development and fewer environmental impacts.
290 - TRANSIT SERVICES FUND
Transportation
Transit Services Fund
Transportation Services Fund
30
Revision Title:
Fund: Contact: Kurt Ravenschlag
Outcome: Package/Offer #: 119.8
Funding Source #1: Funding Amount #1: $180,235
Funding Source #2: Transportation Services Fund Funding Amount #2: $59,765
Total Amount: $240,000
FTE Requested:
Description:
2014 BUDGET REVISION REQUEST
Evening Hour Service for East-West Transit Connections
None
As currently budgeted in May of 2014, MAX service will be the only Transfort route in operation between 6:30 PM and
12:00 AM. Other bus routes run until 6:30 PM. The lack of evening service on feeder routes will force riders of the
MAX to find other means of travel to reach their destination in the evening, and discourage others from riding MAX
altogether. This is an especially important issue for Downtown, where evening patrons may easily reach a restaurant
or other venue before dinner, but may be unable to return home due to the lack of evening service on the same transit
route that they used to get to MAX. Evening shift workers throughout the community will be equally impacted and
will have difficulty returning home using the transit network.
This budget request would extend service hours into the evening for up to eight MAX feeder routes. The added hours
provides more consistent transit service between MAX and the feeder routes, eliminating confusion and boosting
ridership. The request as revised reduces the number of routes provided with evening service and the length of the
evening service (from 10:30 PM to 8:30 PM). The request would fund a partial year of service (.66 of a full year's
expense) to reflect evening service beginning in mid-May, 2014.
This budget exception request supports the City’s goals toward Triple Bottom Line in the following ways:
1) Economic: MAX is the largest infrastructure investment in the City’s history and is paramount in providing a
systematic land use and transportation system as identified in City Plan. Evening service on east-west connections will
enable MAX to reach its full potential and provide support for existing and new development. Customers and workers
who utilize MAX will be able to reach businesses throughout the community in the evening and night hours.
2) Social: Transit is one of the most equitable modes of transportation as it provides accessible service to all people in
our community, regardless of socioeconomic status. Extending hours of operation for additional feeder routes into
MAX will not only empower people to utilize MAX, it will provide an accessible ride to evening activities for seniors,
residents with disabilities, facilitate job accessibility for people dependent on transit, provide flexibility for Downtown
visitors, and enhance social interactions between friends and neighbors.
3) Environmental: The Transfort system reduced vehicle miles traveled by over 3 million miles in 2012, resulting in
fuel cost savings and road wear and tear as well as reducing greenhouse gas emissions by over 1,400 MT CO2. The
additional investment in transit is estimated to increase ridership by 110,784 which will boost the resulting
environmental benefit (2012 Climate Status Report, Fort Collins).
290 - TRANSIT SERVICES FUND
Transportation
Transit Services Fund
31
1
Budget For Outcomes
2014 Revisions
August 19, 2013
2
Revenue Update
Relatively Conservative Forecast….
Additional Revenue Will Flow to Fund Balance
• Updated Major Revenue Elements Only – Revision Process
• Sales Tax Based on 2013 YTD Actuals, Maintained 2.5% 2014 Increase
• Use Tax for 2013, No Change to 2014
• Building Permit & Inspection 2013 & 2014
• Utility Demand and Rate Adjustment
• Did Not Update 2014 Use Tax, KFCG, Marijuana Tax, Other Small
Revenue Sources
General
Fund
Ongoing
General
Fund
One Time
KFCG
Light &
Power
Total
Sales & Use Tax (GF Only) $ 1.1 $ 2.2 $ 3.3
Development Review 2.5 2.5
GF Assigned - No College 5.2 5.2
Light & Power - Demand & Rates 5.8 5.8
KFCG Reserves 2012 1.2 1.2
Other (0.1) (2.2) (2.3)
TOTAL $ 1.0 $ 7.7 $ 1.2 $ 5.8 $ 15.7
3
Year End General Fund Balance
Building Fund Balance Provides Flexibility to Support Projects
Like North College & Woodward
2011 2012
Total Year End Fund Balance $ 47.6 $ 57.2
60 Day/Non Spendable/Restricted/Committed 33.4 39.5
Prior Year Purchases 5.5 4.4
No College Assigned 5.2
Woodward Reserve Assigned 2.3
Staff Assigned 2.3 2.3
Other 6.4 3.5
Year End General Fund &
Sales Tax Fund Balance
• Staff Recommendation – Build Fund Balance with Excess Revenue
• Philosophy – Save in the Good Times
• Provide Flexibility for Future Needs
4
Recommended Budget Revisions
Revenue Update Supports All Recommended Budget Revisions
General
Fund
Ongoing
General
Fund
One Time
KFCG
Other
Funds
Utilities Total
North College Improvements $ 4.3 $ 4.3
Light & Power Purchased Power & PILOT 1.0 1.0
Arthur Ditch at Mulberry Pool 0.5 0.5
Development Review Staffing - Contractual 0.3 0.3
Legal Staff & Support 0.1 0.2 0.3
PFA KFCG Reserve Offer 0.3 0.3
Senior Center Expansion 0.2 0.2
All Other 2014 Budget Revisions 0.2 0.6 0.3 0.1 1.2
TOTAL $ 0.6 $ 5.4 $ 0.8 $ 0.1 $ 1.2 $ 8.1
5
Additional Offers – Council Consideration
• Offers Proposed Support MAX Success – Feed Ridership to BRT
• Offers Provide Service for Partial Year – Beginning May 2014
• Annual Cost Estimated at $0.8M for Full Year Service
Challenge…..
Balance BRT Requirements for Success With Long Term Funding Needs
General
Fund
Ongoing
General
Fund
One Time
KFCG
Other
Funds
Utilities Total
East-West Transit Connection $ 0.1 $ 0.2 $ 0.3
Evening Service for East-West Transit 0.2 0.2
-
TOTAL $ - $ - $ 0.1 $ 0.4 $ - $ 0.5
6
2014 Budget Revision Summary
General
Fund
Ongoing
General
Fund
One Time
KFCG
Other
Funds
Utilities Total
Revenue Update $ 1.0 $ 7.7 $ 1.2 $ 5.8 $ 15.7
-
Recommended Budget Revisions 0.6 5.4 0.8 0.1 1.2 8.1
-
Net Impact on Fund Balance $ 0.4 $ 2.3 $ 0.4 $ (0.1)$ 4.6 $ 7.6
Consideration Budget Revisions 0.1 0.4 0.5
-
TOTAL Net Impact Fund Balance $ 0.4 $ 2.3 $ 0.3 $ (0.5)$ 4.6 $ 7.1
• Additional Anticipated New Revenue Supports Recommended Revisions
• Reserves Used to Support Additional Transit Services
• Opportunity to Build Reserves for Future Needs:
• Available for the 2015/2016 BFO Process
Recommended Revisions Aligned with Council Objectives….
Anticipated New Revenue Supports the Majority of Proposed Revisions
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Lance Smith, Utility Strategic Financial Planning Manager
Steve Catanach, Light & Power Operations Manager
Kevin Gertig, Water Resources and Treatment Operations Manager
Jon Haukaas, Water Engineering and Field Operations Manager
SUBJECT FOR DISCUSSION
Review 2014 Utility Rate Changes
EXECUTIVE SUMMARY
The 2013-14 City Budget included rate increases as shown below for the Water and Wastewater
utilities. The increase for the Electric utility includes an increase for wholesale purchased power.
A new development fee is being proposed for the Water Fund to provide sufficient funding to
fully utilize accepted water rights throughout the year. An increase in the permit fees associated
with the Stormwater utility to better reflect actual costs for reviewing those permits is also being
proposed.
The First Reading of the 2014 Utility Rate Ordinances is scheduled for October 15
th
.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Does City Council support the proposed Water Right Utilization Fee?
BACKGROUND/DISCUSSION
The proposed rate increases for 2014 are necessary to fund the capital improvements and
ongoing operating expenses as outlined in the 2013-14 City Budget. The rate increases being
proposed here for the Water and Wastewater utilities are the same as those outlined in the
adopted budget. The 4% for the Water utility can be broken into two parts with 3% being for
Utility
Proposed 2014 Rate
Increase
Fees to be
Adjusted?
Electric 2.0% Yes
Water 4.0% Yes
Wastewater 3.0% Yes
Stormwater 0.0% Yes
capital improvements and 1% for ongoing potential expenses related to the High Park Fire. Plant
Investment Fees (PIFs) should be adjusted based on the 2013 cost of service studies for the
Water and Wastewater utilities. These studies will be completed over the next month so that the
2014 rate changes, if adopted, can be made by rate class rather than a flat increase for all rate
classes.
A new fee is being proposed for the Water utility. This fee, called the Water Right Utilization
Fee (WRUF), is necessary to ensure that new development not only provides water rights
necessary to serve the development but also the capital associated with developing the water
storage required to fully utilize those water rights. Currently the City of Fort Collins accepts
water rights from several different irrigation companies to meet the raw water requirements for
development purposes. Some of these water rights come with short-term storage, but most do
not have any storage associated with them. Many of these rights are for ditches which only flow
during the peak runoff each year. In order to fully utilize those rights to meet the demand for
water throughout the year it is necessary to have sufficient storage capacity. Because the
duration and magnitude of the flows from each of the irrigation ditch companies is unique, the
amount of such storage depends on the specific water rights. Thus, the new fee will vary by the
water right source.
For the Electric utility, the increase is composed of a 1.5% increase from Platte River Power
Authority and $500,000 for the second phase of the Fort Collins Solar Purchased Power
Program. Electric Development Fees are being reviewed for 2014 and will be included in the
Electric Rate Ordinance on October 15th.
Although no rate adjustment is proposed for the Stormwater utility in 2014, Chapter 10 (Flood
Prevention and Protection) of the City Code specifies three review fees associated with
floodplain administration:
• An applicant for a floodplain use permit shall pay twenty-five dollars ($25);
• An applicant who is required to furnish a floodplain modeling analysis shall pay an
additional fee of three hundred dollars ($300.); and
• An applicant who is requesting a variance shall pay a variance processing fee of three
hundred dollars ($300).
These fees and their respective dollar amounts have not increased since they were originally
adopted. The current fees do not provide a mechanism to properly account for the significant
review times associated with certain types of floodplain reviews including Conditional Letters of
Map Revision (CLOMRs), Letters of Map Revision (LOMRs) and variance requests. Stormwater
Master Planning and Floodplain Administrative (Stormwater) staff recommend that a new fee
structure be established to better assign costs to floodplain review applicants.
Staff has presented the proposed changes in rates and fees to the Energy Board on August 8
th
and
the Water Board on August 15
th
for their preliminary review. No action was requested of the
Boards at these meetings. Staff will meet with these Boards again before the First Reading of the
Rate Ordinances in October and provide the Board recommendations with the Ordinances.
Staff will present the rate class specific increases and the proposed changes to the development
fees to City Council at the September 24th Work Session.
1
2014 Utility Rates & Fees
Presented to Council Finance Committee
August 19, 2013
2
Overview
– 2014 Proposed Rate Increases:
• Electric 2.0%
• Wastewater 3.0%
• Water 4.0%
• Stormwater 0.0%
– Fees updated
– Other changes by Fund
3
Light & Power Fund
• Two components in 2.0% rate increase
+ 1.5% retail impact from Platte River Power
Authority’s wholesale rate increase
+ 0.5% for the Fort Collins Solar Program
• Development fees are being reviewed
• Residential Time of Use rates are being developed
4
Impacts by Rate Class & Season
5
Residential Time of Use Rates
– Pilot in 2014
• After deployment of the AMI Web Portal
• Covering the Summer months
• Intended to limit risk of revenue shortfall
– All Residential Customers in 2015
• Present pilot study findings and recommended
TOU rate to City Council in Fall 2014
• Implement Residential TOU 1/1/2015
6
Water Fund
– Per 2014 City Budget 4.0% rate increase
– Cost of Service study being completed to
determine rate class specific adjustments
– Increase consists of 3% for capital improvements
and 1% for ongoing costs associated with High
Park Fire
7
Water Fund
– Other issues
– Ongoing soil remediation efforts associated with
High Park Fire
– Water Right Utilization Fee
– In addition to Raw Water Requirement
– Necessary to fully utilize accepted water rights
– Specific to the irrigation company
8
Wastewater Fund
– Per 2014 City Budget 3.0% rate increase
– Cost of Service study being completed to
determine rate class specific adjustments
– Increase necessary for capital improvements
– System renewal rate > 250 years currently
– Plant Investment Fees for 3” connections
development specific like > 3” connections
9
Stormwater Fund
– Per 2014 City Budget no rate increase
– Proposed adjustments to Floodplain Permit fees
– No changes to these fees since adoption
– New rates based on actual cost of reviews
10
Next Steps
– Finish Cost of Service studies for Water and
Wastewater
– Take rate class specific increases to Energy and
Water Boards for action
– City Council Work Session September 24th
– First Reading of Rate Ordinances on October 15th
1
BOB II Update
August 19, 2013
2
BOB II – Ginny Sawyer
Develop list of projects and
vet financial cost and
feasibility
Transportation –
Jessica Ping-Small
Evaluate alternatives,
possible structure and
methodology for fee
Council Work Session
Nov 26
• Decision on fee or ¼ cent
• Trail impact fee
• Park maintenance fee
• Parking impact fee
• Transit fee
Spring 2014
Revenue Diversification
Fee Discussion:
• Transportation fee
• Trail impact fee
• Park maintenance fee
• Parking impact fee
• Transit fee
If ¼ Cent – Integrate with CMO Efforts
Council Review &
Direction
• BOB II Projects
• Transportation Maint
Public Outreach
• BOB II Projects
• Transportation Maint
BOB II & Transportation Maintenance
¼ Cent Renewal Efforts
Revenue Diversification
3
Tax Initiative History
Capital Project Fee Has Been Renewed Each Year Since xxxx….
Transportation Fee has been Renewed Each Year Since xxxx
• Various Tax Initiatives that aggregate to 3.85%
• Base Sales Tax Rate = 2.25%...Does Not Expire
• Capital ¼ Cent began in 1984 – Expires in 2015
• Street Maintenance ¼ Cent began in 1990 – Expires in 2015
• Natural Areas ¼ Cent began in 1993 – Expires in 2030
• Voter history of renewal of each of the ¼ Cent taxes
4
Tax Wedding Cake
Tax Wedding Cake as an Attachment
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
Sales Tax Rate
Sale and Use Tax Rate, 1968-2035
1/4% BCC Community Enhancements,
Voter Approved
1% by City Council Ordinance 140, 1979
1% DTT Voter Approved
Capital
1% General, Voter Approved
1/4% by City Council Ordinance 149, 1981
1/4% Necessary Capital
(RECAP) Voter Approved
1/4% EPIC,
Voter
Approved
1/4% Choices 95
Capital Program,
Voter Approved
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: John Voss, Controller/Assistant Financial Officer
SUBJECT FOR DISCUSSION: Policy on Issuing Debt
EXECUTIVE SUMMARY: The Debt Policy has not been modified in many years. Staff
has developed a new framework for updating, controlling, formatting and publishing financial
policies. This is one of first policies to use this new format. Under the new policy the
governmental funds are limited to $70M more debt, compared to $150M under the existing
policy.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Are there any questions about the new policy?
2. Are there any changes requested?
3. Is the policy ready to bring to City Council for consideration and approval?
BACKGROUND/DISCUSSION The current debt policy evolved as part of the Budget
document. In that context it focused on explaining debt concepts rather than setting policy.
This is the first policy using the new format. Because of the major overhaul, it was impractical
to use strike through and underline new text. The major changes to the policy are as follows:
A. Changed method of limiting governmental debt, from percent of General Fund revenue to
percent of governmental fund revenue.
B. Added capacity guidelines for enterprise funds, i.e. the utility funds.
C. Added information about Moral Obligation Pledge and when it may be used.
D. Added language about goal to keep the City’s overall credit rating at AAA.
E. Added guidance on refinancing.
Under the current policy the City governmental funds could borrow an additional $150 million,
whereas the new policy limits new debt to $70 million.
ATTACHMENTS
1. PowerPoint presentation
2. New Debt Policy (proposed)
3. Old Debt Policy (current)
1
Debt Policy
Council Finance Committee
August 19, 2013
2
New Policy Framework
• Uses newly created format
• Assign persons responsible for policy
• Keep language simple
• Eliminate or minimize non-policy language
• Tracks policy versions
• Provides direction on where to seek help interpreting policy
Staff Will Bring Additional Policy Revisions to
Council Finance Using the New Framework
3
Changes
• Changed method of limiting governmental debt, from percent of General
Fund revenue to percent of governmental fund revenue.
• Added capacity guidelines for enterprise funds, i.e. the utility funds.
• Added information about Moral Obligation Pledge and when it may be
used.
• Added goal to maintain the City’s overall credit rating at AAA.
• Added guidance on refinancing.
No Significant Changes to the Policy – Review & Update
Under Proposed Policy City Can Borrow Another $70M….
4
Closing
• Recommended by Government Finance Office Association.
• Having policy on debt is important factor to credit agencies.
• Future Policy revisions coming to Council Finance:
• Revenue Policy – Oct 2013
• Investment Policy – Nov 2013
• Budget Policy – Dec 2013
Financial Management Policy 1
Issuing Debt Issue Date:
Version: 2
Issued by: Controller/
Assistant Financial
Officer
Financial Policy 1 – Issuing Debt
1
1.1 Authorization for Municipal Borrowing
The City Charter (Article V. Part II) authorizes the borrowing of money and the issuance of long
term debt. The Charter and State Constitution determine which securities may be issued and when
a vote of the electors of the City and approved by a majority of those voting on the issue.
1.2 Purpose and Uses of Debt
Long term obligations should only be used to finance larger capital acquisitions and/or
construction costs that are for high priority projects. Debt will not be used for operating purposes.
Debt financing of capital improvements and equipment will be done only when the following
conditions exist:
a) When non-continuous projects (those not requiring continuous annual
appropriations) are desired;
b) When it can be determined that future users will receive a significant benefit from the
improvement;
c) When it is necessary to provide critical basic services to residents and taxpayers (for
example, purchase of water rights);
d) When total debt, including that issued by overlapping governmental entities, does not
constitute an unreasonable burden to the residents and taxpayers.
Objective:
The purpose of this policy is to establish parameters and provide guidance governing the issuance
of all debt obligations issued by the City of Fort Collins (City).
Applicability:
This debt policy applies to all funds and Service Areas of the City and closely related agencies such
as the Downtown Development Authority (DDA), Fort Collins Leasing Corporation and the Fort
Collins Urban Renewal Authority (URA).
Authorized by:
City Council Resolutions, 1994-174, 2013-XXX
Financial Policy 1 – Issuing Debt
2
1.3 Types of Debt and Financing Agreements
The types of debt permitted are outlined in State statute. The City will avoid derivative type
instruments. In general the following debt types are used by the City:
a) General obligation bonds—backed by the credit and taxing power of the City and not
from revenues of any specific project. Colorado law limits general obligation debt to
10% of the City’s assessed valuation. Under TABOR this type of debt must be approved
by voters.
b) Revenue Bonds—issued and backed by the revenues of a specific project, tax
increment district (TIF), enterprise fund, etc. The holders of these bonds can only
consider this revenue source for repayment. TABOR does not require that voters
approve these types of debt.
c) Lease Purchase—issued whereby the asset acquired is used as collateral. Examples
include Certificates of Participation (COP), Assignment of Lease Payments (ALP) and
equipment leases. TABOR does not require that voters approve these types of
agreements.
d) Moral Obligation Pledge—a pledge to consider replenishing a debt reserve fund of
another government agency if the reserve was used to make debt payments. This type
of commitment will only be used to support the highest priority projects, or when the
financial risk to the City does not increase significantly, or when the City’s overall
credit rating is not expected to be negatively impacted. Because it is a pledge to
consider replenishing, it is not a pledge of the City’s credit, and as such is not a
violation of State statutes and City Charter. However, decision makers should keep in
mind that not honoring a Moral Obligation Pledge will almost certainly negatively
impact the City’s overall credit rating. TABOR does not require that voters approve
these types of agreements.
e) Interagency Borrowing—issued when the credit of an agency (DDA, URA) of the City
does not permit financing at affordable terms. Usually used to facilitate a project until
the revenue stream is established and investors can offer better terms to the agency.
Program parameters are outlined in City’s Investment Policy. TABOR does not require
that voters approve these types of agreements.
f) Conduit Debt—Typically limited to Qualified Private Activity Bonds (PAB) defined by
the IRS and limited to the annual allocation received from the State. Low income
housing is one example of a qualified use of PAB. There is no pledge or guarantee to
pay by the City.
g) Any other securities not in contravention with City Charter or State statute.
1.4 Debt Structure and Terms
The following are guidelines, and may be modified by the City to meet the particulars of the
financial markets at the time of the issuance of a debt obligation:
a) Term of the Debt: The length of the financing will not exceed the useful life of the asset
or average life of a group of assets, or 30 years, whichever is less. Terms longer than
20 years should be limited to the highest priority projects.
b) Structure of Debt: Level debt service will be used unless otherwise dictated by the
Financial Policy 1 – Issuing Debt
3
useful life of the asset(s) and/or upon the advice of the City's financial advisor.
c) Credit Enhancements: The City will not use credit enhancements unless the cost of the
enhancement is less than the differential between the net present value of the debt
service without enhancement and the net present value of the debt service with the
enhancement.
d) Variable Rate Debt: The City will normally not issue variable rate debt, meaning debt
at rates that may adjust depending upon changed market conditions. However, it is
recognized that certain circumstances may warrant the issuance of variable rate debt,
but the City will attempt to stabilize the debt service payments through the use of an
appropriate stabilization arrangement.
e) Derivative type instruments and terms will be avoided.
f) Interest during construction will be capitalized when the debt is in an enterprise fund.
1.5 Refinancing Debt
Refunding of outstanding debt will only be done if there is a resultant economic gain regardless of
whether there is an accounting gain or loss, or a subsequent reduction or increase in cash flows.
The net present value savings shall be at least 3%, preferably 5% or more. In an advanced
refunding (before the call date), the ratio of present value savings to the negative arbitrage costs
should be at least 2.
1.6 Debt Limitations and Capacity
Debt capacity will be evaluated by the annual dollar amount paid and the total amount outstanding
with the goal to maintain the City’s overall issuer rating at the very highest rating, AAA. Parameters
are different for Governmental Funds, Enterprise Funds, and Related Agencies.
a. Governmental Funds—Annual debt service (principal and interest) will not exceed
7% of annual revenues. For calculation, revenues will not include internal charges,
transfers and large one-time grants. Outstanding debt in relation to population and
assessed value will be monitored.
b. Enterprise Funds—Each fund is unique and will be evaluated independently. Each
fund’s debt will be managed to maintain a credit score of at least an A rating. These
funds typically issue revenue bonds and investors closely watch revenue coverage
ratio. Coverage ratios are usually published in the Statistical Section of the City’s
Comprehensive Annual Financial Statement.
c. Related Agencies—Each agency will be evaluated independently, taking into account
City Charter, State statutes, market conditions and financial feasibility.
Financial Policy 1 – Issuing Debt
4
1.7 Debt Issuance Process
When the City utilizes debt financing, it will ensure that the debt is soundly financed by:
a) Selecting an independent financial advisor to assist with determining the method of
sale and the selection of other financing team members
b) Conservatively projecting the revenue sources that will be used to pay the debt;
c) Maintaining a debt service coverage ratio which ensures that combined debt service
requirements will not exceed revenues pledged for the payment of debt.
d) Evaluating proposed debt against the target debt indicators.
1.8 Other
Debt Management - The City will also have an Administrative Policy and Procedure that
includes guidance on:
a) Investment of bond proceeds
b) Market disclosure practices to primary and secondary markets, including annual
certifications
c) Arbitrage rebate monitoring and filing
d) Federal and State law compliance practices
e) Ongoing Market and investor relations efforts
Financial Policy 1 – Issuing Debt
5
Definitions
Conduit Debt: when a government agency issues municipal securities to raise capital for revenue-
generating projects where the funds generated are used by a third party (known as the "conduit
borrower") to make payments to investors.. If a project fails and the security goes into default, it
falls to the conduit borrower's financial obligation, not the conduit issuer (City). Common types of
conduit financing include industrial development revenue bonds (IDRBs), private activity bonds and
housing revenue bonds (both for single-family and multifamily projects). Most conduit-issued
securities are for projects to benefit the public at large (i.e. airports, docks, sewage facilities) or
specific population segments (i.e. students, low-income home buyers, veterans).
Credit Enhancements: is usually bond insurance, but can be also subordination of other debt, reserve
accounts, or other types of collateral.
Agency: although the term is not normally used by local governments, an agency is an organization created
by the City with separate powers and authorities.
Debt Service Coverage Ratio: is a common measure of the ability to make debt service payments. The
formula is net operating income (operating revenue – operating expense) divided by debt service
(annual principal and interest)
Getting Help
Please contact the Controller/Assistant Financial Officer with any questions at 970.221.6772.
Related Policies/References
- The City of Fort Collins Charter (Article V., Part II)
- Financial Policy 2 – Debt Management and Compliance
DEBT POLICIES
7.1. POLICY STATEMENT
The City of Fort Collins recognizes the primary purpose of capital facilities is to support
provision of services to its residents. Using debt financing to meet the capital needs of
the community must be evaluated according to two tests - efficiency and equity. The
test of efficiency equates to the highest rate of return for a given investment of
resources. The test of equity requires a determination of who should pay for the cost of
capital improvements. In meeting the demand for additional capital facilities, the City will
strive to balance the load between debt financing and "pay as you go" methods. The
City realizes failure to meet the demands of growth may inhibit its continued economic
viability, but also realizes too much debt may have detrimental effects. Through the
rigorous testing of the need for additional debt financed facilities and the means by
which the debt will be repaid, the City will strike an appropriate balance between service
demands and the amount of debt. The City of Fort Collins uses lease purchase
financing for the provision of new and replacement equipment, vehicles and rolling stock
to ensure the timely replacement of equipment and vehicles and to decrease the impact
of the cost to the user department by spreading the costs over several years. This
method may also be used to acquire real property. The type of lease that the City uses
is termed a conditional sales lease, in effect a purchase rather than a rental of property.
The annual installments for all leases are appropriated by the Council each year. For
purposes of securing credit ratings and monitoring annual debt service as a percentage
of operating expenditures; lease purchase financing is considered a long-term liability of
the City and therefore will be issued under the same conditions as long-term debt.
7.2. AUTHORIZATION FOR MUNICIPAL BORROWING
The Charter authorizes the borrowing of money and the issuance of the following
securities to evidence indebtedness:
1. short-term notes,
2. general obligation securities,
3. revenue securities,
4. refunding securities,
5. special assessment securities,
6. tax increment securities, and
7. any other securities not in contravention of the Charter.
The Charter and State Constitution determine which securities may be issued only after
a vote of the electors of the City and approved by a majority of those voting on the issue.
7.3. CONDITIONS FOR USING DEBT
Debt financing of capital improvements and equipment will be done only when the
following conditions exist:
1. When non-continuous projects (those not requiring continuous annual
appropriations) are desired;
2. When it can be determined that future users will receive a benefit from the
improvement;
3. When it is necessary to provide basic services to residents and taxpayers (for
example, purchase of water rights);
4. When the rights of bond buyers and subsequent investors are protected through
full disclosure; and
5. When total debt, including that issued by overlapping governmental entities, does
not constitute an unreasonable burden to the residents and taxpayers.
7.4. DEBT INDICATORS AND TARGET LEVELS OF DEBT
While no absolute measures of debt burden exist, the City recognizes that municipal
bond rating agencies and financial analysts have established key debt indicators by
which they evaluate the credit strength of issuers. Since debt issued by entities sharing
the same geographic area, for example, Poudre R-1 School District, cannot be
controlled by the City, the indicator that will be used will be calculated using only direct
debt issued by the City itself. The indicator does not include debt issued by the City or
by the City Council as the Board of Directors for the City's utilities, as the revenue
collected for services are the source of repayment. The City Council has chosen to
use direct debt service as a percent of General Fund and debt service expenditures to
monitor its debt.
This indicator measures how the City's debt burden compares to financial operations.
As debt service requirements increase, the flexibility to make decisions regarding other
expenditures is reduced. Excessive debt may be indicated if the percentage is
maintained at very high levels. A debt service to operating budget expenses ratio of 10
to 15 percent is considered fair; over 15 percent is generally considered poor.
THE TARGET INDICATOR IS:
Direct debt service as a percent of operating expense: 15 percent for the
2004-2008 period.
Using the debt indicator as defined above, the City will have some debt capacity. This
means the City could use some of its operating revenue to support additional debt during
the five-year projection period.
Since the City=s sustained growth causes demand for capital improvements financed
through debt or lease financing, the City target is set at a level slightly above the median
for cities of comparable size. The indicator is a full loading of governmental debt and is
calculated in the same manner that rating agencies use.
7.5. SOUND FINANCING OF DEBT
When the City utilizes debt financing, it will ensure that the debt is soundly financed by:
1. Conservatively projecting the revenue sources that will be used to pay the debt;
2. Financing the improvement over a period not greater than the useful life of the
improvements;
3. Determining that the benefits of the improvement exceed the costs, including
interest costs;
4. Maintaining a debt service coverage ratio which ensures that combined debt
service requirements will not exceed revenues pledged for the payment of debt;
and
5. Evaluating proposed debt against the target debt indicators.
7.6. FINANCING METHODS
The City maintains the following policies in relation to methods of financing used to issue
debt:
1. Total General Obligation (payable from Property Tax levies) debt will not exceed
10% of assessed valuation per the City Charter;
2. Where possible, the City will use revenue or other self-supporting bonds instead of
General Obligation Bonds;
3. When appropriate, the City will issue non-obligation debt, for example, Industrial
Development Revenue Bonds, to promote community stability and economic
growth;
4. Staff will maintain open communications with bond rating agencies about its
financial condition and whenever possible, issue rated securities; and
5. Staff will exchange information with Larimer County, Poudre R-1 School District,
the Poudre Valley Hospital District and other entities whose debt would contribute
to the overlapping debt indicators for the purpose of monitoring such debt burdens.
The budget includes appropriations for debt service payments and reserve requirements
for all outstanding debt and for debt anticipated to be issued within the ensuing budget
term.
7.7. BOND MARKET DISCLOSURE
The Securities and Exchange Commission (SEC) requires the City of Fort Collins to
covenant in its bond documents to provide bondholders certain annual financial
information. The provision of the information is done through qualified information
repositories. The SEC rule did not establish a standard format for the financial
information. The required information may be presented in an appropriate disclosure
document determined by the City in consultation with legal counsel.
In addition to annual financial information, the City is required to covenant in the bond
documents that it will provide notice of the following Amaterial events@ to the information
repositories, with respect to the City=s bonds:
1. principal and interest payment delinquencies;
2. non-payment related defaults;
3. unscheduled draws on debt service reserves reflecting financial difficulties;
4. unscheduled draws on credit enhancements reflecting financial difficulties;
5. substitution of credit or liquidity providers, or their failure to perform;
6. adverse tax opinions or events affecting the tax-exempt status of the City=s bonds;
7. modifications to rights of the owners of City bonds or bond calls; or
8. rating changes.
The City is further required to covenant that it will provide notice in a timely manner if it
fails to comply with its disclosure undertakings.
The City considers its Comprehensive and Financial Report (CAFR) to be the most
appropriate document in which to provide the continuing disclosure information. In
addition to the required annual financial information, the CAFR contains financial and
statistical information and related disclosures that are useful to existing and potential
investors in the secondary bond market as required by the rule. In accordance with the
City=s bond ordinances, the Financial Officer is authorized and directed to report all
material events, as defined above, to the appropriate information repositories.
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
AGENDA
Urban Renewal Authority Board Finance Committee
August 19, 2013
11:50 to noon
CIC Room – City Hall
Approval of the Minutes from the May 20, 2013 Meeting
1. The Summit (Capstone) – Memo & Questions 05 minutes M. Bolin
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
URA Finance Committee Meeting
Draft of Minutes
5/20/13
11:00 to Noon
CIC Room
Council Attendees: Mayor Karen Weitkunat, Ross Cunniff, Bob Overbeck
Staff: Darin Atteberry, Mike Beckstead, Carrie Daggett,
Ingrid Decker, Chris Donegon, Harold Hall, John Voss,
Katie Wiggett
Others: Jim Manire, Joel Stewart
Approval of the Minutes of March 18, 2013
Ross Cunniff moved to approve the minutes for the December 17, 2013 meeting. Bob Overbeck
seconded the motion. Minutes were approved unanimously.
Election of Officers
Ross Cunniff nominated Mayor Karen Weitkunat as chair of the URA Committee. Bob Overbeck
seconded the nomination.
URA North College Refinance
John Voss presented the URA’s plan to refinance approximately $11.2 million of the debt it originally
borrowed from the City in relation to the North College area. Because an established revenue stream
can be shown to investors, private money can be used to replace City money. The 2013 bonds require
the URA to establish a debt reserve fund. To better enhance the credit rating on the replacement debt,
the City must pledge to replenish the URA’s debt reserve fund if the URA ever uses the funds to make
debt payments. With the City’s pledge, the new URA debt is expected to have an effective interest rate
of 2.98% and a credit rating of Aa3. Without the City’s pledge, the interest rate would likely be 5% or
higher. The refinancing of this debt will improve the cash flows of the URA and is expected to save
$922,000 through 2029.
City staff have communicated to the URA that going forward the City intends to only loan money when
alternative financing agreements are not feasible. The reimbursement agreement recently approved for
Aspen Heights is an example of the preferred approach for future development agreements.
The City’s pledge includes a commitment to maintain an unrestricted fund balance in the General Fund
in an amount at least equal to the Reserve Fund Requirement, estimated at $961,000. The General
Fund can easily meet that requirement: at the end of 2012, the collective unrestricted fund balances in
2
the General Fund totaled $37 million. Property tax revenue in the North College URA plan area is
unlikely to decline enough to trigger the use of the Debt Service Reserve Fund.
Ross Cunniff asked how this restriction in the General Fund would be noted if a special reserve fund
were not created. John Voss said that there will be a note within the general fund, setting aside the
reserve fund money. A future CFC topic on Fund Balance will explain this further.
Council Finance Committee reviewed and tentatively approved the refinancing and the concept of a
debt reserve replenishment pledge at their meeting on December 17, 2012. Staff recommends that this
topic be brought to council on June 4 because it is a time sensitive issue.
Projected Timeline –
May 16 Send rating documents to Moody’s
May 29 Receive credit rating from Moody’s
June 4 City Council and URA Board approve refinancing actions
June 6 Publish Preliminary Official Statement on internet sites
June 18-19 Market Bonds
July 9 Closing
Council Direction / Next Steps
The Council Finance supports the URA Refinance and recommends that it be brought to Council on
June 4.
1/4% BCC Natural Areas and
Parks, Voter Approved
1/4% BCC Streets &
Transportation, Voter
Approved
1/4% Street Maintenance,
Voter Approved
1/4% BOB Community Enhancments,
Voter Approved
1/4% City Natural Areas,
Voter Approved
1/4%Pavement Management,
Voter Approved
1/4% Open Space, Yes,
Voter Approved
.85% KFCG
Voter Approved
updated January 2011
Notes:
1) A $250,000 repayment from the DDA for the FCMoD was recorded in the Capital Projects Fund revenue in 2014 and will be changed to the General Fund. Therefore, the funding source for
the project funded by this revenue also needs to be changed.
2) If Woodward goes forward with Phases II and IV it will release $2.3M of currently assigned General Fund Balance
3) The 2014 revenue revisions do not include any anticipated revenue from sales tax on medical marijuana
4) Increased L&P revenue due to increased demand and rate adjustments.
2014 Budget Revision Summary