HomeMy WebLinkAboutAgenda - Mail Packet - 9/22/2015 - Council Finance Committee And Ura Finance Committee Agenda- September 21, 2015Council Finance Committee & URA Finance Committee
Agenda Planning Calendar 2015
RVSD 09/14 mnb
Sep 21 TOPIC TIME WHO
CFC
Natural Gas Franchise 15 min A. Gavaldon
Annual Adjustment Ordinance (clean-up) Review 15 min L. Pollack
Transfort Bus Payment 30 min K. Ravenschlag
Sales Tax Code Changes 15 min P. Streeter
URA
Oct 26 TOPIC TIME WHO
CFC
Downtown Parking Structure Financing 30 min M. Beckstead
J. Birks
Sales Tax Recapture – review opportunities 30 min M. Beckstead
J. Birks
Policy Updates – Metro District & Pension Funding 15 min J. Voss
URA TIF Assistance Proposal 30 min J. Birks
Nov 16 TOPIC TIME WHO
CFC
Strategic Risk Assessment 30 min A. Gavaldon
Street Oversizing Impact Fee Update 45 min D. Cunningham
County Road & Bridge / I25 Proposal 30 min M. Jackson
Policy Formalizing Use Tax Current Practices 15 min T. Storin
URA
Dec 21 TOPIC TIME WHO
CFC
Response Plan to 2014 Audit Findings 20 min T. Storin
URA
Future Council Finance Committee Topics:
Revenue Diversification - Sales Tax on Services, Admissions Tax,
Future URA Committee Topics:
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
AGENDA
Council Finance & Audit Committee
September 21, 2015
10:15 a.m. - Noon
CIC Room – City Hall
Approval of the Minutes from the August 24, 2015 meeting
1. Natural Gas Franchise 15 minutes A. Gavaldon
2. Annual Adjustment Ordinance (clean-up) Review 15 minutes L. Pollack
3. Transfort Bus Payment 30 minutes K. Ravenschlag
4. Sales Tax Code Changes 15 minutes P. Streeter
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
08/24/15
10:00 - Noon
Community Room
Council Attendees: Mayor Wade Troxell (Had to leave early), Gerry Horack
Staff: Mike Beckstead, Jeff Mihelich, John Duvall, John Voss, Josh Birks, Laurie Kadrich, John
Hutto, Wendy Williams, Kevin Gertig, Carrie Daggett, Kelly D’Martino, Jackie Kozak-Thiel,
Lawrence Pollack, Travis Storin, Peggy Streeter, Nancy James
Others: Kevin Jones – Chamber of Commerce
Absent: Ross Cunniff
APPROVAL OF MINUTES
Gerry Horack made a motion to approve the July 20, 2015 Council Finance Committee minutes. Wade Troxel
made a second to the motion. The minutes were approved unanimously.
2016 BUDGET REVISIONS
Lawrence Pollack presented the recommended revisions to the 2016 Budget in an effort to familiarize and seek
feedback from the Council Finance Committee before the recommendations are reviewed at the September 22
Council Work Session. The Appropriation Ordinance goes to first reading on November 3 and second reading on
November 17.
City-Wide supplemental appropriations being recommended total $29.2 million. The General Fund share is
$4.2M, $1.3M is from the Keep Fort Collins Great Fund, $9.1M is from Utility funds, $8.0M is from
Transportation, and the remaining $6.6M is from other various funds. Following are the key objectives which
the recommendations are intended to address:
• Council priorities
• Projected revenue from the renewal of the ¼ cent street maintenance tax
• Capital project and other needs not known at the time of the adoption of the 2015-16 Budget (e.g.
Climate Action Plan)
• Fiduciary responsibilities in the Self Insurance Fund and the Benefits Fund
• Maintaining fund balances to support future needs and economic uncertainty
2
The recommended 2016 Budget Revisions meet these goals.
Sales and use tax, as well as property tax revenues are expected to be higher than originally anticipated for 2015
and 2016. 2015 sales tax collections are now forecasted to be $5.0M higher while use tax collections are
anticipated to be $7.1M higher. Those amounts are then split into General Fund (approximately 60%), and the
dedicated voter approved taxes (e.g. Keep Fort Collins Great, OpenSpace Yes!, etc.). The City has been notified
by Larimer County that property taxes are anticipated to be nearly $1.0M higher in 2015.
Looking ahead to 2016, sales tax is forecasted to grow 3.5% over the new 2015 base and use tax is being held
flat to the $17.0M originally forecasted due to the significant volatility of that revenue stream. 2016 property
tax is forecasted to be 10% over the 2015 base, although 2/3s of that increase will go to PFA in 2017 per our IGA.
Mike spoke to the proposed Revenue Forecast, indicating that the last time Council Finance met in July, it was
discussed having a confidence factor of 90%. In the last three days, one of the global events that the committee
previously discussed, has potentially happened. Mike suggested adjusting the forecast a little bit, however, by
doing so, this will have zero impact on the recommended proposals.
Darin clarified that the purpose of a mid-year budget adjustment is based on two criteria: Council request
(Climate Action Plan, etc.); or items that Darin has been sharing with ELT that relate to Council.
Large Capital Projects:
Laurie will provide more information to Council regarding the Prospect Road and College Avenue Intersection
Improvements. Gerry requested more clarification on the amount that CSU will be contributing to the project.
Prioritization of the Spring Creek and Mail Creek projects was also discussed.
Climate Action Plan (CAP) Offers:
Lawrence stated that the more “action-oriented” offers would be considered in this cycle. Wade requested that
staff work to see how this can be illustrated (measured) on an on-going basis. Jackie clarified that they do have
these actions in place; Wade suggested adding in a piece with regard to time.
Human Resource Offers:
Darin spoke to the Chief Human Resources Officer Position offer, by stating that we have a transactional
responsibility and a strategic responsibility. In the past we have had great transactional HR work, but minimal
strategic work. Kelly D. has been the interim HR director. The gap is around human capital; we are being held
back in certain areas as Kelly is being spread very thin. Strategic issues needs to be looked at for the
organization; Darin doesn’t feel that this can wait until the next budget cycle and needs to be addressed now.
Gerry stated that the labeling of “ongoing” offer amounts is confusing. Mike stated that he will work on the re-
labeling of the offers.
3
Kelly spoke to the Total Rewards Offer. The current foundational HR systems (how we benchmark jobs, how we
define pay structure and career progression), is 10-13 years old, and has not been revisited. These topics do
come up frequently in exit interviews, and is becoming an increasing need in our organization. The pilot
program was completed in Finance and resulted in some very good information about changes that need to be
made. However, changes should not be made to just one part of the organization without knowing that staff
can move forward with implementing changes at a broader level. This would be phase-two of a three-phase
project, to keep that work moving forward.
Mike stated that there has been a dramatic increase in the benefits cost. Benefits reduced reserves faster than
anticipated in 2014. There was a consolidation to one plan (from two plans), to manage results in significant
increases to staff’s portion in the Core plan, which is the lower tiered plan. Core plan participants will see
approximately a 30% increase in premiums. After much discussion, Gerry requested that the impact of what the
different policies are to the City be brought before Council first, with the back-up available, if necessary.
After discussion regarding new offers being brought forward for transparency, Gerry requested an overview of
how the budget is managed at one of the CFC meetings.
Other Recommended 2016 Budget Revision Offers:
Offers needing further discussion: Community Recycle Center O&M and 111, and Regional Training Facility
Design.
The City Manager’s Recommended Budget Maintains a Healthy Fund Balance.
USE TAX UTILIZATION POLICY – DISCUSSION
Travis Storin gave a presentation on the City’s Use Tax Utilization Policy. The current trajectory for 2015
suggests that we will have $7.1M in net Use Tax receipts above budget. Of this, $4.1M will go to the General
Fund. Staff has included this as available revenue in the 2016 Budget Revision Process. Past Councils have not
adopted a formal policy on this revenue, so the excess over budget defaults to one-time funding in the budget
process. Staff seeks either confirmation of current practices or input on policy considerations if a more
prescriptive policy is desired.
The background on this item is that Use Tax receipts, net of rebates, have grown increasingly volatile in recent
years, including an unusually high growth year in recent years, including an unusually high growth year in 2014.
City Staff budgets conservatively to minimize the risk of a revenue shortfall.
After discussion regarding how any available fund balance from the prior year is used, Gerry requested that staff
document the current practice and put into a policy. Mike stated that staff will take action to draft a policy and
bring that back to CFC in a few months.
4
SALES TAX ON CLOUD/INTERNET PRODUCTS
Peggy Streeter gave a presentation regarding the taxability of sales made over the internet and cloud based
products.
Council requested clarification on the specifics of the City of Fort Collins’ ability to capture sales tax on items
purchased over the internet. If an organization is engaged in business in Fort Collins they are required to collect
the City of Fort Collins sales tax. In general, if a business has a physical presence in the City of Fort Collins, they
are engaged in business. The following are examples of situations that meet these guidelines:
• Brick and mortar
• Rents or leases tangible personal property to customers in Fort Collins
• Delivers items in own vehicle (not 3rd party carrier)
Examples of items that do not currently meet these requirements are electronic movies delivered to theaters
(which is currently in District Court), and electronic delivered software (which is going to a hearing in the near
future).
Gerry asked if it was possible to tax rental properties. John D. stated that it would require an amendment to our
code. If it were a change in tax policy it would be a tabor issue.
WOODWARD REBATE – DISCUSSION TO SUBMIT TO COUNCIL
Mike stated that we have historically brought the rebates to Council Finance before we have brought the
appropriation to Council for adoption. The application was just received last week for the January through June
rebate, which is $180,000.00, which has also been verified. Gerry concurred that this is not necessary as there is
an existing agreement and policy in place, and they have met the rules and required criteria.
OTHER BUSINESS
Council meeting dates will need to be shifted due to the parking structure on the hotel and when it will go
through the P&Z appeal window. This item has been pushed to early October. Mike apologized for the meeting
date changes.
Meeting Adjourned at 11:51 a.m.
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Andres Gavaldon
Date: 21 September, 2015
SUBJECT FOR DISCUSSION
Natural Gas Franchise Agreement Implications
EXECUTIVE SUMMARY
Staff has evaluated the current Occupational Tax and City code arrangement with Xcel compared
with the operational and financial implications of developing a Franchise Agreement for natural
gas that would replace the Occupational Tax.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Next steps and direction – maintain the status quo or further explore a Franchise Agreement
BACKGROUND/DISCUSSION
Reference attached memo dated July 1 2015 and Nov 3, 2014
ATTACHMENTS
Attachment 1 – memo dated July 1, 2015
Attachment 2 – memo dated Nov 3, 2014
CFC – Natural Gas Franchise
9/21/15
Natural Gas Alternatives:
1. Occupation Tax & Current Code
2. Franchise Agreement
Code & Occupation Tax
3
Current vs Future State org charts xxx..pptm September 2015
• Construction: Inspection, street damage remediation, excavation &
construction timely restoration
• Activity Coordination: Periodic coordination of capital projects
• City Requested Relocation: Xcel required to relocate facilities at their
expense per City request
• Audit Rights & Information Requests: Access to certain books & records
• Xcel Facilities: Maintained in good working order & not interfere with City
facilities
Franchise Agreement
4
Current vs Future State org charts xxx..pptm September 2015
• City facilities excluded from paying Franchise Fee
• City receives lowest charge for similar service
• City receives highest Franchise Fee rate imposed across the State
• Assurance of adequate supply
• Restoration of service & interruption reporting
• Service expanded as territorial boundaries expand
• City can use utility service facilities – i.e. trenches
• City expenses for Franchise ordinance related worked reimbursed
• The Public Utilities Commission establishes Customer Service
requirements & Franchise Agreements do not include CS requirements
Financial Difference
5
Current vs Future State org charts xxx..pptm September 2015
Occupational Tax
• Governed by TABOR
• Citizen vote required to change
• Tax set in 1987 at $445k per year
Franchise Fee
• Franchise rate set as % of revenue
• Fee revenue increases with volume
• 3% rate would generate $1.2M year
Issue Occupational Tax Franchise Fee
Revenue $445,000/yr Est.@ 3% = $1,200,000/yr
Adjusts automatically with gross revenue
Cost to Implement $0; Already implemented TBD; legal and consulting fees will be
incurred if customization of agreement
required
Who pays? Natural Gas customers Natural Gas customers
Flexibility TABOR requires vote to change Minimal changes during term, typical
term is 15-20 yrs
Recommendation
6
Current vs Future State org charts xxx..pptm September 2015
• To better analyze non-franchise options the City’s legal department
may need to prepare memo outlining available legal options
including:
Changes to Occupation Tax via City Code
Franchise Agreement and Tax combination
Customer Service possibilities within a Franchise Agreement
• If Direction to move forward, create 2016 BFO Offer to fund
consulting and legal support
• Engage Xcel regarding Franchise Agreement in 2017
• Evaluate current Xcel master standard agreement for possible
modifications which could lead to advisor expense and negotiation
costs
September 21, 2015 Page 1
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Mike Beckstead and Lawrence Pollack
Date: September 21, 2015
SUBJECT FOR DISCUSSION
First Reading of Ordinances No. , 2015, Appropriating Prior Year Reserves and Unanticipated Revenue
in Various City Funds and Authorizing the Transfer of Appropriated Amounts between Funds or Projects.
EXECUTIVE SUMMARY
The purpose of this annual Budget Adjustment Ordinance is to combine dedicated and unanticipated
revenues or reserves that need to be appropriated before the end of the year to cover the related
expenses that were not anticipated and, therefore, not included in the 2015 annual budget appropriation.
The unanticipated revenue is primarily from fees, charges, rents, contributions and grants that have been
paid to City departments to offset specific expenses.
GENERAL DIRECTION SOUGHT
What questions do Council Finance Committee members have about the specific items included in the
Annual Budget Adjustment Ordinance?
BACKGROUND/DISCUSSION
This Ordinance appropriates prior year reserves and unanticipated revenue in various City funds, and
authorizes the transfer of appropriated amounts between funds. The City Charter permits the City
Council to provide, by ordinance, for payment of any expense from prior year reserves. The Charter also
permits the City Council to appropriate unanticipated revenue received as a result of rate or fee increases
or new revenue sources. Additionally, it authorizes the City Council to transfer any unexpended
appropriated amounts from one fund to another upon recommendation of the City Manager, provided that
the purpose for which the transferred funds are to be expended remains unchanged; the purpose for
which they were initially appropriated no longer exists; or the proposed transfer is from a fund or capital
project account in which the amount appropriated exceeds the amount needed to accomplish the purpose
specified in the appropriation ordinance.
If these appropriations are not approved, the City will have to reduce expenditures even though revenue
and reimbursements have been received to cover those expenditures.
The table below is a summary of the expenses in each fund that make up the increase in requested
appropriations. Also included are intra-fund transfers which do not increase total appropriations, but per
the City Charter require City Council approval to make the transfer. A table with the specific use of prior
year reserves appears at the end of the AIS.
September 21, 2015 Page 2
A. GENERAL FUND
1. Fort Collins Police Services (FCPS) has received revenue from various sources which need to be
appropriated to cover the related expenditures. A listing of these items follows:
a. $34,711 – In 2015 Police received an additional award from the Rocky Mountain High Drug
Trafficking Area for $34,711. The funding was used to offset some of the costs for a case worked
by the Northern Colorado Drug Task Force.
b. $6,660 – 2015 Seatbelt Grant - In 2015, Fort Collins Police received a grant from the Colorado
Department of Transportation for two waves of Seatbelt Enforcement. The grant paid for officers
to work overtime to conduct enforcement activities.
c. $16,544 – 2015 High Visibility DUI Grant – In 2015, Fort Collins Police received $16,544 in grant
funds from the Colorado Department of Transportation to pay for overtime for DUI enforcement.
d. $7,027 – 2014 Law Enforcement Assistance Funds (LEAF) DUI Grant - For the January through
June 2015 timeframe, Fort Collins Police received $7,027 in grant funding from the Colorado
Department of Transportation to pay for overtime for DUI enforcement through June 30, 2015.
e. $143,750 – Police Overtime and Straight Time Reimbursement - In 2015, Police Services
received reimbursement from various entities for overtime expenses. The different activities
include: CSU football traffic control, Tour De Fat, Brew Fest, New West Fest, regional auto theft
case investigations, Poudre School District school board meetings, MAX implementation, and
noise ordinance violation workshops. Additionally, in 2015 FCPS partnered with Larimer County
to staff events at The Ranch. Additionally, Police Services implemented a new CAD system in
conjunction with Larimer County where a significant amount of overtime was incurred to install the
system, troubleshoot problems and train staff.
f. $54,875 – Police Report Fees - Police reports purchased by the public and insurance agencies
generate revenue of approximately $7.50 a report. For 2015, it is estimated that $54,875 will be
collected. The revenue from this fee is used to subsidize the cost of copy machine rental
expenses.
g. $23,640 – Poudre Valley Hospital Dispatch Contract Revenue (PVH) - This request is to
appropriate revenue received from PVH that is in excess of what was estimated. Every year the
hospital contracts with FCPS to provide dispatch service. The contracted amount is based on the
total budget multiplied by the percentage of calls received for ambulance service. The revenue
was used in 2015 to pay for Fort Collins 911 Center maintenance expenses.
Funding Unanticipated
Revenue
Prior Year
Reserves
Transfers
between
Funds
Transfer of
Approp funds TOTAL
General Fund $1,256,224 $1,142,913 $0 $339,000 $2,738,137
Sales & Use Tax Fund $0 $2,678,088 $0 $0 $2,678,088
Benefits Fund $0 $1,900,000 $0 $0 $1,900,000
Capital Projects Fund $96,795 $0 $373,157 $0 $469,952
Eqipment Fund $82,485 $0 $0 $0 $82,485
Golf Fund $149,000 $0 $0 $0 $149,000
Natural Areas Fund $64,209 $0 $1,339,044 $0 $1,403,253
Recreation Fund $202,709 $17,000 $0 $0 $219,709
Street Oversizing $0 $34,157 $0 $0 $34,157
Transit Services Fund $1,295,220 $0 $0 $0 $1,295,220
Transportation Fund $553,000 $1,525,667 $0 $0 $2,078,667
Transportation Fund (Snow Removal) $0 $500,000 $0 $0 $500,000
GRAND TOTAL $3,699,642 $7,797,825 $1,712,201 $339,000 $13,548,668
September 21, 2015 Page 3
h. $174,963 - Larimer County Share of CRISP Maintenance Costs - The IGA between The City of
Fort Collins and Larimer County states that Larimer County will pay for 50% of the annual
maintenance agreement for the Tiburon/CAD system. In prior years, the city only expensed half
the contract cost, as that was the net expense to the City. Starting with 2015, the City will
recognize the full expense for the contract as well as the revenue from the county. This change
was made after the adoption of the 2015 budget, therefore additional appropriation needs to be
made to allow the City to pay the full amount.
FROM: Unanticipated Revenue (Miscellaneous Police) $397,228
FROM: Unanticipated Revenue (High Intensity Drug Traffic Grant) $34,711
FROM: Unanticipated Revenue (2015 Seatbelt Grant) $6,660
FROM: Unanticipated Revenue (2015 High Visibility DUI Grant) $16,544
FROM: Unanticipated Revenue (2014 LEAF DUI Grant) $7,027
FOR: Police Services $198,625
FOR: Fort Collins 911 Center Maintenance expenses $23,640
FOR: Tiburon/CAD system $174,963
FOR: High Intensity Drug Traffic Grant $34,711
FOR: Seatbelt Grant $6,660
FOR: High Visibility DUI Grant $16,544
FOR: LEAF DUI Grant $7,027
2. Operation Services is requesting funds for:
a. $339,000 - Transfer for Epic Pool Improvements (Major Maintenance) - This item is related to the
EPIC water quality and bulkhead improvements. Currently $339,000 resides in the Facilities
operating budget. Since this is a capital project, we are requesting it to be transferred to the
Capital Projects Fund. This allows us to have the entire cost of the project budgeted in one
Capital Project. There is no increase to the Citywide appropriation.
b. $23,451 - Investigation Replacement Unit - Police Investigation totaled a unit this spring (not a
patrol vehicle). We are requesting a budget increase for the cost of a Nissan Leaf that replaced
the vehicle. We will be using insurance money to pay for the Leaf.
c. $37,853 - Police Patrol Replacement Unit - Police Patrol totaled a unit this spring. We are
requesting a budget increase for the cost of a new patrol vehicle that replaced the totaled vehicle.
We will be using insurance money to pay the expense of the new vehicle and equipment.
d. $75,000 - Building Repair and Maintenance (BRM) Additional Revenue and Expense -
Unanticipated revenue from work that was not planned in non-general fund departments. We are
requesting $75,000 appropriation for this additional revenue.
FROM: Existing Appropriations $339,000
FROM: Unanticipated Revenue (insurance proceeds) $61,304
FROM: Unanticipated Revenue (WFO) $75,000
FOR: Transfer to the Capital Projects Fund for Epic Pool Improvements $339,000
FOR: Police Vehicle Purchases $61,304
FOR: WFO Building Repair and Maintenance $75,000
September 21, 2015 Page 4
3. This request is to appropriate $389,913 to cover the payment of rebates made in 2015. In
accordance with Chapter 25, Article II, Division 5, Manufacturing Equipment Use Tax Rebates were paid
out in August 2015 for the 2013 rebate program. The rebate program was established to encourage
investment in new manufacturing equipment by local manufacturing firms. Vendors have until December
31st of the following year to file for the rebate. This item appropriates the use tax funds to cover the
payment of the rebates.
FROM: Prior Year Reserves (Manufacturing Use Tax Rebate) $389,913
FOR: Manufacturing Use Tax Rebates $389,913
4. This request is to appropriate $700,000 from General Fund reserves for payouts on claims
incurred over this and previous years that resulted in payments of substantial legal fees and claims
settlements. The budgeted amount of $1,200,000 in 2015, based upon our experience in previous years,
will not be adequate to cover 2015 expenses and all claim payments incurred in 2015 regardless of their
year of occurrence. The projection is based upon a review of five prior years plus current year to date
claims information as well as external actuarial reports. As an internal services department, revenue in
the form of department allocations is not adequate to cover claim payments which will be addressed in
the next budget cycle. A supplemental appropriation of $700,000 is being requested for 2015.
FROM: Prior Year Reserves $700,000
FOR: Settlement and Claims $700,000
5. Environmental Services sells radon test kits at cost as part of its program to reduce lung cancer
risk from in-home radon exposure. This appropriation would recover kit sales revenue for the purpose of
restocking radon test kits.
FROM: Unanticipated Revenue (from radon kit sales) $4,276
FOR: Radon Test Kits $4,276
6. The City of Fort Collins received the David R. Keller Prize for Innovation in Sustainability for
adopting updated, ambitious community greenhouse gas goals in March 2015. The $5,000 cash award
will be used to support the work being done by A-Train Marketing Communications Inc. to develop
messaging to inspire community action to reduce greenhouse gas emissions.
FROM: Unanticipated Revenue (grants) $5,000
FOR: Reduction of Greenhouse Gas Emissions projects $5,000
7. In 2015, the City of Fort Collins received $500,000 in Brownsfield grant funds from the
Environmental Protection Agency to conduct environmental assessments of property within the City and
County. These funds have been targeted for assessments in the North College Urban Renewal Area and
River District portion of Old Town. Partners on the grant include the Downtown Development Authority
and Larimer County. This is a reimbursable grant.
FROM: Unanticipated Revenue (grants) $500,000
FOR: Environmental assessments in the North College Urban Renewal $500,000
Area and River District portion of Old Town
8. The Forestry Department requests to appropriate unanticipated revenue from reimbursement
claims for damages to trees caused by accidents.
FROM: Unanticipated Revenue $2,809
FOR: Forestry Maintenance $2,809
September 21, 2015 Page 5
9. The Gardens on Spring Creek request appropriations of unanticipated revenues. Revenues
increased beyond projections due to increased programs such as the Spring Plant Sale and Youth
Summer Camps and increased donations due to the popularity of the Gardens. Appropriations are
needed for the additional cost of expanded programs including staffing, supplies, credit card fees, etc.
FROM: Unanticipated Revenue $49,000
FOR: Gardens on Spring Creek Programs and Operations $49,000
10. Pursuant to state law, District 6 candidate Carl Wangsvick requested and paid for a recount of the
votes cast in the District 6 Council race. The actual cost of that recount was $8,902. This appropriates
those funds into the City Clerk's Election budget to offset the recount expenses.
FROM: Unanticipated Revenue $8,902
FOR: Election Recount Expenses $8,902
11. This request is intended to cover expenses related to land bank property maintenance needs for
2015. As expenses vary from year-to-year, funding is requested annually mid-year to cover these costs.
Expenses for 2015 include general maintenance of properties, raw water and sewer expenses, market
analysis and property appraisals. In addition, substantial deferred maintenance must be completed
before a land bank property can be rented out again. This land bank parcel is being held for future
development, which is not likely to occur for at least two years.
FROM: Prior Year Reserves (Land Bank Reserve) $53,000
FOR: Land Bank Expenses $53,000
12. The Fort Collins Convention and Visitors Bureau (FCCVB) has been awarded an $87,764 grant
from the Colorado Welcome Center through the State of Colorado. These funds will be disbursed by the
State of Colorado and directed through the City of Fort Collins, pursuant to State of Colorado
requirements, then paid to the FCCVB. The grant period will run from July 1, 2015 through June 30,
2016.
FROM: Unanticipated Revenue (grant) $87,764
FOR: Fort Collins Convention and Visitors Bureau $87,764
B. SALES AND USE TAX FUND
1. The sales and use tax revenue received in 2014 was higher than projected and existing
appropriations were not adequate to make the full transfer from the Sales and Use Tax Fund to the
Capital Projects Fund for the one quarter cent Building on Basics tax, and to the Natural Areas Fund for
the one quarter cent Natural Areas tax. Adjustments to other funds are not needed because the tax
revenues are recorded directly into those funds. This item appropriates additional funds in the amount of
$2,678,088 from prior year reserves for transfer from the Sales and Use Tax Fund to the Capital Projects
Fund for the Building on Basics tax of $1,339,044, and for transfer to the Natural Areas Fund for the
Natural Areas tax of $1,339,044.
FROM: Prior Year Reserves (Sales & Use Tax Fund) $2,678,088
FOR: Transfer to Capital Projects - Building on Basics $1,339,044
FOR: Transfer to Natural Areas Fund $1,339,044
September 21, 2015 Page 6
C. BENEFITS FUND
1. An additional appropriation of approximately $1.9M is requested from reserves in the Benefits
Fund. Benefit costs are increasing greater than anticipated, driven by both additional staff covered by the
Affordable Health Care Act in 2015/16 and claims costs continuing to grow at a greater rate than
forecasted. On average, medical claims grew approximately 5.5% per year from 2009 through 2012. In
2013 and 2014, claims increased 9% and 7.5% respectively. In looking at the first eight months of 2015,
the growth in medical claims is trending toward an increase in excess of 8% or more, compared to 2014.
Claims expenditures are projected to exceed budgeted appropriations by $1.7M. Additional
appropriations of approximately $200,000 are also needed to cover estimated fees associated with the
Affordable Care Act (“ACA”). It is anticipated that the additional request of $1.9M will not adversely affect
the minimum fund balance requirement necessary at the end of 2015.
FROM: Prior Year Reserves $1,900,000
FOR: Benefits Fund Expenses $1,900,000
D. CAPITAL PROJECTS FUND
1. As part of the Lincoln Avenue Improvements Project, additional funds have been received from 2
developers, Odell Brewing Co. & McKee Brothers, Inc., as payment to construct the local street
improvements for Lincoln Avenue adjacent to Odell Brewing Co. & In-Situ Subdivision. (See Street
Oversizing Fund Item #I1)
FROM: Unanticipated Revenue (Contributions in Aid) $96,795
FROM: Transfer from the Street Oversizing Fund $34,157
FOR: Construction of local street improvements for Lincoln Ave. $130,952
adjacent to Odell Brewing Co. & In-Situ Subdivision.
2. This item is related to the EPIC water quality and bulkhead improvements. Currently $339,000
resides in the Facilities operating budget. Since this is a capital project, we are requesting it to be
transferred to the Capital Projects Fund. This allows us to have the entire cost of the project budgeted in
one Capital Project. There is no increase to the Citywide appropriation. (See General Fund Item #2a).
FROM: Transfer from General Fund (Op Svcs) $339,000
FOR: EPIC Water Quality and Bulkhead Improvements $339,000
E. EQUIPMENT FUND
1. Appropriation of unanticipated grant revenue from the Regional Air Quality Council to purchase
compressed Natural Gas vehicles: One semi-tractor, four tandem dump trucks, and two Utility Line trucks.
The total amount of grant funding is $82,485 with a 20% match covered by the departments’ existing
appropriations. This is a reimbursable grant.
FROM: Unanticipated Revenue (grant) $82,485
FROM: CNG Vehicles $82,485
F. GOLF FUND
1. This item is to appropriate unanticipated revenue in the Golf Fund to replace the three range ball
machines that are 15 to 20 years old. New technology in range ball machines will allow interfacing with
the City's GolfTrac System, provide reports on use, improve overall accountability and internal controls
over the driving range revenue, and improve customer service. With improved accountability and internal
controls, revenue increases should provide a full return of this investment within the next five years. The
September 21, 2015 Page 7
current machines are not reliable and any issues with the machines will impact customer service. This is
an immediate unanticipated issue that needs to be address by year end. This request includes electrical
work that needs to be done at each course to accommodate the machines and the cost of the machines.
FROM: Unanticipated Revenue $58,000
FOR: Golf Driving Range Ball Machines $58,000
2. During 2014 all golf pro contracts and the Collindale restaurant concessionaire contract were
renegotiated. Several unanticipated expenses have occurred due to these contract negotiations and the
Golf Division’s assuming full responsibility and control over the three driving ranges. Unanticipated
projects included carpet at Collindale as part of the negotiation with Potts - $26,000, renovation of the
SouthRidge driving range, which was a necessary improvement for the City to maximize its revenues and
improve customer service - $19,000, and replacement of the rangeball picker machine at Collindale -
$11,000. It was also determined this summer that the kitchen floor and drain at the Collindale Clubhouse
has been leaking into the basement ceiling. The drain and the tile floor need to be resealed to eliminate
the leaking. This work needs to occur during warm weather for proper ventilation and the clubhouse will
need to be closed to the public for approximately one week during this time. It is the least impactful to the
golfing community if the clubhouse is closed this fall instead of next spring. This issue is unanticipated
and needs to be mitigated as soon as possible. The cost is estimated to be $35,000. Unanticipated 2015
revenue in the Golf Fund will be used to cover these costs.
FROM: Unanticipated Revenue $91,000
FOR: Carpet at Collindale $26,000
FOR: Renovation of Southridge Driving Range $19,000
FOR: Replacement of Rangeball Picker Machine at Collindale $11,000
FOR: Kitchen Drain and Tile Floor Resealing at Collindale Clubhouse $35,000
G. NATURAL AREAS FUND
1. The sales and use tax revenue received in 2014 was higher than projected and existing
appropriations were not adequate to make the full transfer from the Sales and Use Tax Fund to the
Natural Areas Fund for the one quarter cent Natural Areas tax. (See Sales & Use Tax Fund Item #1)
This item appropriates funds in the amount of $1,339,044 transferred from the Sales and Use Tax Fund
to the Natural Areas Fund for Land Conservation expenses.
FROM: Unanticipated Revenue (Transfer In) $1,339,044
FOR: Natural Areas Expenses $1,339,044
2. The City of Fort Collins Natural Areas Department has been awarded a grant of $10,000 from the
History Colorado State Historical Fund. The grant will be used to fund a Historic Structure Assessment of
the Great Western Sugar Company Effluent Flume and Bridge, which spans the Cache la Poudre River
on Kingfisher Point Natural Area. The Historic Structure Assessment will be performed by an engineering
firm with experience in restoration of historic structures and will take approximately 6 months to complete.
FROM: Unanticipated Revenue (grant) $10,000
FOR: Historic Structure Assessment of the Great Western $10,000
Sugar Company Effluent Flume and Bridge
3. Grant from Rocky Mountain Bird Observatory for revegetation of Sterling Natural Area for the
purposes of grading important bird habitat.
FROM: Unanticipated Revenue (grant) $4,209
FOR: Revegetation of Sterling Natural Area $4,209
September 21, 2015 Page 8
4. Wetlands for Wildlife Grant for work done at the Shields Pit Restoration project.
FROM: Unanticipated Revenue (grant) $50,000
FOR: Shields Pit Restoration Project $50,000
H. RECREATION FUND
1. The purpose of this item is to appropriate sub-grant funds from the Colorado Department of
Public Health and Environment through Poudre Valley Health Foundation and the Coalition for Activity
and Nutrition to Defeat Obesity (CANDO). The Vida Sana Program addresses health disparities among
community members in Fort Collins. Specific interventions include providing culturally congruent exercise
programming through the Northside Aztlan Community Center. The grant is reimbursable upon
expenditure by Recreation.
FROM: Unanticipated Revenue (grant) $64,709
FOR: Vida Sana Recreation Programs $64,709
2. Fitness programs at Northside Aztlan and the newly expanded Senior Center have been very
successful this year which increased revenues and created related increases in expenses. The Trips and
Travel program geared to the 50+ population has also been successful. The additional expenses are
offset by an increase in revenue through participation fees.
FROM: Unanticipated Revenue $138,000
FOR: Recreation Programs $138,000
3. The purpose of this item is to appropriate $17,000 in interest earnings received in December
2014 from the Community Foundation of Northern Colorado - Senior Center Endowment Fund to replace
chairs at the Senior Center.
FROM: Prior Year Reserves $17,000
FOR: Chair Replacement at Senior Center $17,000
I. STREET OVERSIZING FUND
1. As part of the Lincoln Avenue Improvements Project, additional funds have been received from 2
developers, Odell Brewing Co. & McKee Brothers, Inc., as payment to construct the local street
improvements for Lincoln Ave. adjacent to Odell Brewing Co. & In-Situ Subdivision. This appropriation is
for the transfer of previously received funds from the Street Oversizing Fund to the Capital Projects fund
to be used for Lincoln Avenue improvements. (See Sales & Use Tax Fund Item #1)
FROM: Prior Year Reserves $34,157
FOR: Transfer to the Capital Projects Fund $34,157
J. TRANSIT SERVICES FUND
1. The City of Fort Collins has entered into agreements with each of its three Transportation
Management Area (TMA) partners (Loveland, Berthoud, & the North Front Range Metropolitan Planning
Organization (NFRMPO)) to transfer local funds to the partners in exchange for the partner's allocation of
federal formula funding. These agreements are specific to Federal Fiscal Year (FFY) 2015 FTA Section
5307 and Section 5339 formula grants. This request for additional appropriations to match the sum of the
September 21, 2015 Page 9
agreed-upon local funds exchange is fully funded with additional federal funding.
FROM: Unanticipated Revenue (grant) $1,230,505
FOR: Pass-Thru Funding to Transportation Management Area $1,230,505
2. The City of Fort Collins is the recipient of $40,000 in unanticipated 2015 FTA Section 5304 funds
administered by CDOT. The funding was awarded to the City, in a competitive grant award process by
CDOT, to fund, at an 80% capital match ratio, a comprehensive route improvement study.
FROM: Unanticipated Revenue (grant) $40,000
FOR: Comprehensive Route Improvement Study $40,000
3. Transfort has entered into an agreement with Colorado State University (CSU) to provide
additional service for the HORN bus route. This request will fund the first half of the 2015-2016 school
year with a further request due in 2016 for the entirety of additional service in 2016.
FROM: Unanticipated Revenue (CSU) $24,715
FOR: HORN Bus Route Service $24,715
K. TRANSPORTATION SERVICES FUND
1. The PVH and MCR Foundation provided $3,000 to be used to support the FC Bikes Bicycle
Ambassador Program. This funding will support bicycle education and outreach initiatives to advance
bicycle safety in Fort Collins.
FROM: Unanticipated Revenue (grant) $3,000
FOR: FC Bikes Bicycle Ambassador Program $3,000
2. The Planning, Development and Transportation Work for Others is a self-supported program for
all “Work for Others” (WFO) activities within Streets, Traffic and Engineering. Expenses are tracked and
billed out to other city departments, Poudre School District, CSU, CDOT, Larimer County, developers and
other public agencies. The original budget of $2,943,000 was an estimate based on scheduled projects.
Additional unanticipated projects were added in 2015. In addition, the Streets Department is anticipating
traffic control and patching projects for other departments similar to 2014. Additional appropriations of
$550,000 are needed to cover labor, material and equipment costs that will be recovered upon
completion of the various projects.
FROM: Unanticipated Revenue (WFO) $550,000
FOR: Traffic Construction $250,000
FOR: Streets WFO $300,000
3. The Parking Fund was created in 2015 to segregate parking revenues and expenditures that
were previously reported in the Transportation Fund. This provides greater transparency for Parking
activities. This action transfers prior year reserves previously identified for Parking from the
Transportation Fund to the Parking Fund in the amount of $1,525,667.
FROM: Prior Year Reserves (Parking) $1,525,667
FOR: Transfer to the Parking Fund $1,525,667
4. Due to the number of storms in January and February 2015, the 2015 snow budget has been
depleted. There were ten storms and approximately 20” of snow in this timeframe. February 2015 had
the heaviest snowfall since 1923. Extensive ice cutting was required because of the weather pattern.
September 21, 2015 Page 10
Warmer days, bitter cold nights, and waves of freezing rain or snow every few days caused ice to build up
in gutters blocking drainage and causing ice dams and ice potholes. Clearing sidewalks and pedestrian
access ramps also significantly impacted the snow removal budget. Additional funding of $500,000 is
needed to provide snow removal services during the winter months of October through December 2015.
This will cover labor, equipment and materials.
FROM: Prior Year Reserves $500,000
FOR: Snow Removal $500,000
FINANCIAL / ECONOMIC IMPACTS
This Ordinance increases total City 2015 appropriations by $13,548,668. Of that amount, this Ordinance
increases General Fund 2015 appropriations by $2,738,137 including use of $1,142,913 in prior year
reserves. Funding for the total City appropriations is $3,699,642 from unanticipated revenue, $7,797,825
from prior year reserves, and $2,051,201 transferred from other funds.
The following is a summary of the items requesting prior year reserves:
ATTACHMENTS
Attachment #1 – Presentation to City Council Finance Committee
Item # Fund Use Amount
A3 General Manufacturing Equipment Use Tax Rebate 389,913
A4 General
2015 higher than anticipated payouts on claims incurred
over this and previous years 700,000
A11 General Land Bank Property Maintenance 53,000
B1
Sales & Use Tax Transfer of 2014 sales tax revenue for BOB & Natural
Areas
2,678,088
C1 Benefits Additional Benefits costs 1,900,000
H3
Recreation Appropriate interest earnings from the Community
Foundation of Northern Colorado - Senior Center
Endowment Fund to replace chairs at the Senior Center
17,000
I1
Street Oversizing Lincoln Ave. Improvements, 1st to Lemay Project -
additional funds from developers transfer to Capital
Projects Fund
34,157
K3
Transportation Parking Fund - transfers prior year reserves previously
identified for Parking from the Transportation Fund to the
Parking Fund
1,525,667
K4 Transportation Snow Removal 500,000
Total Use of Prior Year Reserves: 7,797,825
2015 Annual Adjustment Ordinance
Mike Beckstead - CFO
September 21, 2015
Attachment #1
2015 Annual Adjustment Ordinance
2
The recommended 2015 Annual Adjustment
Ordinance are intended to address:
• 2015 unanticipated revenues (e.g. grants)
• Appropriation of unassigned reserves to fund unanticipated
expenditures associated with approved expenses related to 2015
appropriations
• Should be routine and non-controversial
• Items approved by the ordinance need to be spent within the
calendar year (i.e. by December 31, 2015)
2015 Annual Adjustment Ordinance
3
City-wide Ordinance No. , 2015 increases total
City 2015 appropriations by $13,548,668
• This Ordinance increases General Fund 2015 appropriations by
$2,738,137 including the use of $1,142,913 in prior year reserves
• Funding for the total City appropriations is:
o $3,699,642 from additional revenue
o $7,797,825 from prior year reserves
o $1,712,201 transferred between funds
2015 Annual Adjustment Ordinance
Offer Summary
4
Funding Unanticipated
Revenue
Prior Year
Reserves
Transfers
between
Funds
Transfer of
Approp
funds
TOTAL
General Fund $1,256,224 $1,142,913 $0 $339,000 $2,738,137
Sales & Use Tax Fund $0 $2,678,088 $0 $0 $2,678,088
Benefits Fund $0 $1,900,000 $0 $0 $1,900,000
Capital Projects Fund $96,795 $0 $373,157 $0 $469,952
Equipment Fund $82,485 $0 $0 $0 $82,485
Golf Fund $149,000 $0 $0 $0 $149,000
Natural Areas Fund $64,209 $0 $1,339,044 $0 $1,403,253
Recreation Fund $202,709 $17,000 $0 $0 $219,709
Street Oversizing $0 $34,157 $0 $0 $34,157
Transit Services Fund $1,295,220 $0 $0 $0 $1,295,220
Transportation Fund $553,000 $1,525,667 $0 $0 $2,078,667
Transportation Fund (Snow Removal) $0 $500,000 $0 $0 $500,000
GRAND TOTAL $3,699,642 $7,797,825 $1,712,201 $339,000 $13,548,668
2015 Annual Adjustment Ordinance
Large $ Offers
5
General
Fund
Sales &
Use Tax
Fund
Benefits
Fund
Transit
Services
Fund
Transpor-
tation
Fund
Other TOTAL
2015 Higher Payouts on Claims (SSRM) 0.7 - - - - - $0.7
Brownsfield Grant from EPA for assessements
in the North College Urban Renewal Area and
River District portion of Old Town
0.5 - - - - - $0.5
Sales & Use Tax Fund - BOB & Natural Areas
Transfer
- 2.7 - - - - $2.7
Additional Benefits Costs - - 1.9 - - - $1.9
Pass-Thru Local Funds for Federal Funds
Transfer - with Transportation Management
Area (TMA) partners (Loveland, Berthoud, &
the NFRMPO) to transfer local funds to the
partners funded from federal funds
- - - 1.2 - - $1.2
Traffic Construction - additional revenue from
Work for Others (WFO)
- - - - 0.6 - $0.6
Parking Fund - transfers prior year reserves
previously identified for Parking from the
Transportation Fund to the Parking Fund
- - - - 1.5 - $1.5
Snow Removal - - - - 0.5 - $0.5
Sub-Total $1.2 $2.7 $1.9 $1.2 $2.6 $9.6
All Other Recommended Items 1.5 - - 0.1 0.0 2.4 $4.0
$2.7 $2.7 $1.9 $1.3 $2.6 $2.4 $13.5
Offer
TOTAL
2015 Annual Adjustment Ordinance
6
Questions
Agenda Item
Item # Page 1
AGENDA ITEM SUMMARY October 20, 2015
City Council
STAFF
Karl Gannon, Financial Analyst
SUBJECT
First Reading of Ordinance No. , 2015, Appropriating Funds for the Purchase of Two Buses for the Bus Rapid
Transit.
EXECUTIVE SUMMARY
The purpose of this item is to request an appropriation in the amount of $1,734,598 to pay for two Bus Rapid
Transit (BRT) 60' Compressed Natural Gas (CNG) buses for MAX. The requested funding sources and
amounts are as follows: MAX Local Project Funds; $260,711, Transportation Fund Reserves; $741,288 and
Transit Fund Reserves; $732,599.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
After the MAX Guideway was constructed it became clear that the originally-projected travel time of
20 minutes could not be met utilizing five (5) buses as originally planned. In practice, bus operators
were taking as long as 30 minutes to travel the Guideway. There were various reasons for the longer
travel times, but the primary issue was slower travel times through major intersections than had been
anticipated. Consequently, two additional BRT buses were added to the operations in order to meet
the frequency of service required by the Project Construction Grant Requirement (PCGA). The
PCGA is the official contract between the City and the FTA for the MAX project. The PCGA set
forth the scope of the undertaking of the project as well as the budgeted funding amounts across a
number of expense classification codes.
When all six (6) BRT buses were put into service there were no spare vehicles designed for BRT
operations. Transfort staff informed Federal Transit Administration (FTA) of this issue and made an
eligibility request to purchase two additional BRT buses with remaining federal MAX project funds
to provide an adequate spare ratio. On September 5, 2014, the FTA sent a letter of concurrence to the
City, allowing for the purchase of up to three more buses. After receiving the letter of concurrence
from FTA the City entered into an agreement with NABI (bus manufacturer) to purchase two
additional BRT buses within two weeks of receipt of the FTA letter.
Shortly after the purchase of the two additional BRT buses, FTA contacted Transfort to express
concern that the City may not be eligible for additional bus funding. Staff was surprised by this
questioning as we thought this funding arrangement was very clear in our Financial Management
Plan, as well as the justification used by FTA themselves to allow us to purchase the two additional
buses. FTA informed us that their concern stemmed from the fact that the PCGA’s budget referenced
Agenda Item
Item # Page 2
the six bus requirement as being funded at an 80% level with federal funds and not at the 50% level
as stated in the Financial Management Plan. At the time, it was pre-supposed that a routine PCGA
budget revision of the federal allocation would amend the oversight.
In April 2015 the FTA notified Transfort that the two additional BRT buses purchased would not be
eligible for federal funds within the MAX project due to the above referenced reasoning, and that
FTA needed to retain 80% interest in all six of the original buses purchased for MAX. FTA could not
authorize a revision to the PCGA without authorization from Congress. FTA staff does not
recommend asking Congress for a revision such as this.
Therefore, staff is requesting a new appropriation of funds to purchase the BRT buses as the buses are
essential for MAX operations.
CITY FINANCIAL IMPACTS
The cost of the two BRT buses will be allocated among two separate City Funds and the MAX project. .
Specifically:
Appropriations Required in the Following Funds:
Fund 290 Transit Capital Reserves - $732,599
Fund 292 Transportation Fund - $741,288
Fund 400 Capital Projects Fund - $1,473,887
Transfers Required In To:
Fund 400 Capital Projects Fund - $1,473,887
Source of Transfers:
Fund 290 Transit Capital Reserves - $732,599
Fund 292 Transportation Fund - $741,288
The two buses will be owned by the City and will have a minimum service life of 12 years.
ATTACHMENTS
1. MAX Fleet Management Plan (PDF)
2. MAX Finance Management Plan (PDF)
3. MAX Contract with the FTA (MSG)
4. MAX - Notes from Meeting with the FTA (MSG)
5. MAX - FTA Approval to Purchase Buses (PDF)
MAX BUS PROCUREMENT
TRANSFORT BUS PAYMENT
Proposed Agenda Item Summary for the Appropriation
of Local Funds to Pay for Two (2) New Buses for MAX
Service
MAX BUS PROCUREMENT
APPROPRIATIONS REQUIRED:
1.Fund 290 Transit Fund Reserves ($732,599)
2.Fund 292 Transportation Fund ($741,288)
3.Fund 400 Capital Projects Fund ($1,473,887)
MAX BUS PROCUREMENT
TO PAY FOR:
2 x Compressed Natural Gas Powered 60’ Buses
For MAX Service
MAX BUS PROCUREMENT
REASONS FOR BUS PROCUREMENT:
• Longer than Anticipated Travel Times on Guideway
• Need for Spare Vehicle
• Current MAX Ridership Capacities
MAX BUS PROCUREMENT
WHY USE LOCAL FUNDING?
Constraints of MAX Contract with the Federal Transit
Administration;
1.Limited to 6 Buses
2.80% Federal Match Requirement for Current Fleet
3.Act of Congress Required for Further Federal Funding
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
Staff: Peggy L. Streeter, Interim Revenue Manager
Date: September 21, 2015
SUBJECT FOR DISCUSSION
Consideration of potential code changes to Chapter 25 of the Municipal Code to correct the
expiration date of the .85% Keep Fort Collins Tax (KFCG), to update the expiration date for the
street maintenance tax, and to amend the due date for the manufacturing equipment use tax
rebate application.
EXECUTIVE SUMMARY
The expiration date for the KFCG .85% tax rate was listed as December 31, 2021, but the ballot
language specifically states December 30, 2020.
The street maintenance tax was extended through December 31, 2025, by voter approval.
The current deadline for the manufacturing equipment use tax rebate (MUTR) is listed as
December 31. It is being recommended this date be changed to June 30.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Staff is seeking the following direction from the Council Finance Committee (CFC):
1. Does the CFC support the proposed code changes?
BACKGROUND/DISCUSSION
KFCG Expiration Date
The City of Fort Collins took a ballot initiative to the citizens for a tax increase of .85% with an
expiration date of December 31, 2020. When the ordinance was written the expiration date was
inadvertently listed as December 31, 2021.
Street Maintenance Tax Expiration Date
The City of Fort Collins took a ballot initiative to the citizens to extend the .25% street
maintenance tax from December 31, 2015, to December 31, 2025.
MUTR Due Date
In March 2007 the City of Fort Collins adopted a permanent MUTR program allowing
manufacturers to apply for a rebate of use tax paid on qualifying equipment. Manufacturers
apply for this rebate the year subsequent to when the use tax was paid. Per Municipal Code, the
deadline for filing for the rebate is December 31. This due date results in rebates being
processed up to 2 years after the use tax was paid by the manufacturer. It also results in a lag
between posting the use tax received by the City of Fort Collins and the payment of the rebate
out of the General Fund.
Current process:
• Manufacturer pays use tax in 2015
• Manufacturer applies for the rebate between August and December 2016
• Manufacturer receives rebate payment in 2017
Proposed process:
• Manufacturer pays use tax in 2015
• Manufacturer applies for the rebate between January and June 30, 2016
• Manufacturer receives rebate payment in 2016
Conclusion
The Code change for the expiration date is necessary to be in compliance with what was
approved by the voters.
The Code amendment to change the expiration date for the street maintenance tax is necessary in
order to extend the tax through December 31, 2025.
The Code revision to the MUTR application date would result in the payment of rebates in a
timelier manner and a closer time frame between the receipt of the revenue and the payment of
the rebate.
ATTACHMENTS
1
Code Changes
Peggy Streeter
5-24-15
Date Changes within the Code
• Keep Fort Collins Great expiration date
• Update Municipal Code to reflect expiration date listed on
ballot - December 31, 2020
• Street Maintenance Tax expiration date
• Citizens extended through December 31, 2025
• Manufacturing Equipment Use Tax Rebate Deadline
• Bring date forward from December 31 to June 30
2
Manufacturing Equipment Use Tax Rebate
• Current Process
• Manufacturer pays use tax in 2015, applies for the rebate by
December 31, 2016, and receives rebate in 2017
• Proposed Process
• Manufacturer pays use tax in 2015, applies for the rebate by
June 30, 2016, and receives rebate by December 31, 2016
• Manufacturer’s would receive rebates in a timelier manner
• Time frame between receipt of the revenue by the City and the
payment of rebate would be reduced
3
Questions for Council Finance
• Does CFC support the proposed code changes?
• Does CFC support staff bringing an Ordinance forward to Council?
4