HomeMy WebLinkAboutMemo - Read Before Packet - 9/13/2016 - Memorandum From Mike Beckstead Re: Updated Presentation For The September 13, 2016 Council Work Session On 2017-2018 Budget1
2017-2018 Budget Review
City Council Work Session – September 13, 2016
Attachment #1
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Governmental and Enterprise Fund Revenue
KFCG is a Critical Revenue Used to Provide Ongoing Programs and Services
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$70.5 $74.7 $77.8
$88.0 $89.0
$101.6 $108.0 $108.0 $109.6
$112.4
$19.8
$21.8 $22.8
$25.9
$26.3 $27.9 $28.0
$28.6
$70.5
$74.7
$97.6
$109.7 $111.8
$127.4
$134.3 $135.9 $137.6
$141.1
$0
$20
$40
$60
$80
$100
$120
$140
$160
2009 2010 2011 2012 2013 2014 2015 2016
Forecast
2017
Proposed
2018
Proposed
Sales & Use Tax* Revenue
($ millions)
Sales & Use Tax KFCG
* Excludes Use Tax – Economic Incentives
Sales & Use Tax Revenue
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Proposed Changes to Utility Rates
Light & Power – 2.2% and 1.8% in 2017-18, respectively, for Purchased Energy
Costs with additional 1.25% in 2017 to Support Infrastructure. Increases in
Water, Wastewater and Stormwater all support Capital and Infrastructure
Proposed Rate Changes:
Actual Actual Budget Budget
Utility 2015 2016 2017 2018
Light & Power 2.0% 2.0% 3.45% 1.8%
Water 0.0% 0.0% 5.0% 5.0%
Wastewater 3.0% 3.0% 3.0% 3.0%
Storm Water 0.0% 0.0% 5.0% 0.0%
Average residential customer bill impact: $6.26 $4.64
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Historical Use of Reserves
Fund 2013 2014 2015 2016 2017 2018
General Fund $4.0 $4.9 $6.2 $6.2 $6.5 $2.8
Capital Expansion 2.3 0.1 6.6 1.1 1.2 -
KFCG 2.6 0.9 2.7 2.8 5.2 4.4
Neighborhood Parkland 0.8 1.1 - - 2.4 -
Natural Areas 0.4 - 0.2 - 0.6 1.3
Transit 0.1 0.1 0.5 0.6 0.3 0.2
Street Oversizing - - - - 0.9 1.1
Transportation 0.6 0.2 1.3 0.5 1.4 2.8
L&P 6.3 7.1 6.1 8.2 9.5 4.5
Water 3.2 4.6 - 7.4 1.1 0.6
Wastewater 1.5 0.7 - 3.5 0.9 6.8
Stormwater - - 1.4 0.1 1.4 1.1
Sel Insurance 0.6 0.6 0.3 0.3 - -
Data & Communications 0.5 - 0.3 0.2 1.7 0.2
Benefits 1.7 1.6 0.2 0.2 - -
CSA 0.7 0.7 0.4 0.5 - -
All Other Funds 4.8 0.8 2.7 1.2 1.6 1.7
Grand Total $30.1 $23.5 $28.8 $32.7 $34.6 $27.4
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Price of Government
Slight Downward Trend over Time
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Net City Budget
Adopted
2016 ** 2017 % Change 2018 % Change
Operating $497.0 $540.8 8.8% $546.7 1.1%
Debt 21.6 24.5 13.3% 21.8 -11.1%
Capital*** 48.0 55.3 15.2% 45.9 -17.0%
Total City Appropriations* $566.6 $620.6 9.5% $614.4 -1.0%
Less Internal Service Funds (70.4) (74.8) 6.3% (77.2) 3.2%
Less Transfers to Other Funds (44.6) (53.4) 19.8% (47.8) -10.6%
Net City Budget $451.6 $492.3 9.0% $489.4 -0.6%
* This includes GID and URA which are appropriated in separate ordinances.
** 2016 is the Amended budget.
*** Capital dollars reflect non-lapsing capital project budgets.
TOTAL BUDGET (in millions)
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Total Allocation by Outcome
2017
* In addition to the allocation for each Outcome above, there is an additional $61.4M in 2017
for items like transfers between funds, debt service and insurance costs
FOUNDATIONAL
• Day to day, operational measures
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BFO Scorecard – 148 metrics in 55 Strategic Objectives
• 1.1 – Improve access to a broad range of quality housing that is
safe, accessible & affordable – 4 metrics
• Affordable Housing Inventory
• Winter Count Homeless Population,
Community Dashboard – 38 metrics in 7 Outcomes
• Neighborhood Livability & Social Health – 5 metrics
• Affordable Housing Inventory
• Noise Complaints
• Housing Opportunity Index
Why Metrics – Tool to Measure Progress Achieving Our Outcomes and Strategic Objectives
Metrics Hierarchy
• Graffiti
• Voluntary Code Compliance
• Housing Opportunity Index
• Availability of Affordable Housing
Community
Dashboard
Metrics for each
BFO Offers
Refine Metrics,
BFO Scorecard
Refine Metrics,
Quarterly Strategy Maps
Benchmark &
Establish Targets
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2013 2014 2015 2016 2017
• Review, edit & update Strategy Map Metrics
• Update Strategy Maps by QI 2017
• Incorporate Strategy Map performance discussion into QSAR process
• Develop appropriate benchmarks and establish targets
Progress and Continuous Improvement
Performance Metric Journey & Next Steps
Key Outcomes
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Strategic
Objectives
BFO Initiatives
Community Dashboard
• Indicate performance of KO’s
Strategy Maps
• Indicate performance of
SO’s
• Aligned with SO
Goal-focused
Approach
Results-driven
Approach
Linkage of
Strategic Objectives / Initiatives / Metrics
2016 Council Budget Meetings
September 13th
Work Session • Environmental Health
• Economic Health
• High Performing Government
September 27th
Work Session • Safe Community
• Transportation
• Culture and Recreation
September 20th
Council Meeting • Budget Public Hearing
October 4th
Council Meeting • Budget Public Hearing
October 11th
Work Session • Neighborhood Livability and Social Health
• General Discussion – Final Council Direction
November 1st
Council Meeting • First Reading
November 15th
Council Meeting • Second Reading
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Environmental Health – Funding Sources
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Environmental Health – Outcome Overview
• A sustainable environment includes:
Efforts to meet climate goals and reduce greenhouse gas emissions
Healthy watersheds
A sustainable, high quality water supply
Conserving resources, including energy and water, and cultivating a healthy ecosystem
Responsible stewardship and a comprehensive and connected system of open lands
and natural areas
Integrating renewable energy technologies for the electric grid
Monitoring local and regional air quality and supporting programs that improve air
quality, such as fugitive dust control measures
Solid waste reduction and diversion
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Environmental Health – Strategic Objectives
STRATEGIC OBJECTIVES
4.1 - Achieve Climate Action Plan (CAP) goals by reducing greenhouse gases (GHGs).
4.2 - Protect and provide a high quality water supply and implement appropriate
conservation efforts and long-term water storage capability.
4.3 - Engage citizens in ways to educate and encourage behaviors toward more
sustainable living practices.
4.4 - Implement indoor and outdoor air quality improvement initiatives.
4.5 Work towards long term net zero energy goals within the community and the City
organization using a systems approach.
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Environmental Health – Strategic Objectives
STRATEGIC OBJECTIVES
4.6 - Work towards long term net zero waste goals within the community and the City
organization.
4.7 - Increase the community’s preparedness and resiliency for changes in climate,
weather and resource availability.
4.8 - Expand, improve, restore and protect wildlife habitat, urban forests and the
ecosystems of the Poudre River and other urban ecosystems.
4.9 - Meet all regulatory requirements while supporting programs that go beyond
compliance.
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Environmental Health
Offer Linkage to Strategic Objectives
4.1 – Achieve Climate Action Plan (CAP) goals by reducing greenhouse gases (GHGs)
26.1 Environmental Services Department
26.8 Road to 2020 Pilot Programs and Innovation Fund
26.10 Community and Municipal Electric Vehicle Readiness Roadmap
26.17 City Energy Project – Matching Funds for Fort Collins Participation
67.1 Transfort Local Fixed Route Network (Transportation)
Multiple Bike Infrastructure Improvements (Transportation)
Multiple L&P Utility: Energy Services and Renewable Energy Rebate programs
4.2 - Protect and provide a high quality water supply and implement appropriate
conservation efforts and long-term water storage capability
6.27 Water Utility: Watershed Protection
6.28 Supply Vulnerability Assessment
Multiple Water Utility: Conservation Programs and Capital Infrastructure Projects
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Environmental Health
Offer Linkage to Strategic Objectives
4.3 - Engage citizens in ways to educate and encourage behaviors toward more
sustainable living practices
6.3 Water Utility: Conservation Programs
23.6 Messaging and Engagement Priorities (High Performing Government)
26.2 Timberline Recycling Center
26.11 Road to Zero Waste Support
61.1 Expanded Downtown Recycling
4.4 - Implement indoor and outdoor air quality improvement initiatives
26.1 Environmental Services Department
26.12 Indoor Air Quality- Evaluating and Enhancing Existing Programs to Reach More
Residents and Improve Program Outcomes
26.16 Alternative Fuel Municipal Lawn and Garden Equipment Fund
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Environmental Health
Offer Linkage to Strategic Objectives
4.5 - Work towards long-term net zero energy goals within the community and the City
organization using a systems approach
6.68 L&P Utility: Core Renewable Energy
6.87 Biogas to Co-Gen Update
26.7 Expanded Municipal Innovation Fund
Multiple L&P Utility: Energy Services and Renewable Energy Rebate Programs
4.6 - Work towards long-term zero waste goals within the community and the City
organization
26.11 Road to Zero Waste Support
26.2 Timberline Recycling Center
75.7 Neighborhood Livability - Code Compliance (Neighborhood Livability & Social Health)
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Environmental Health
Offer Linkage to Strategic Objectives
4.7 - Increase the community's preparedness and resiliency for changes in climate,
weather and resource availability
6.28 Water Utility: Supply Vulnerability Assessment
26.4 Municipal Resiliency and Adaptation Planning
Multiple Wastewater Utility: Collection System Projects
4.8 - Expand, improve, restore and protect wildlife habitat, urban forests and the
ecosystems of the Poudre River and other urban ecosystems
6.27 Water Utility: Watershed Protection
86.6 Natural Areas Shop Expansion
Multiple Natural Areas Land Conservation and River Health
Multiple Nature in the City Programs
Multiple Urban Forest Management (Culture & Recreation)
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Environmental Health
Offer Linkage to Strategic Objectives
4.9 - Meet all regulatory requirements while supporting programs that go beyond
compliance
6.1 Water Utility: Core Operations
6.40 Wastewater Utility: Core Operations
6.28 Stormwater Utility: Core Operations
22.5 State Government Advocacy (High Performing Government)
Multiple Wastewater Capital Infrastructure Projects
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Environmental Health – Offers Not Purchased
• Light & Power - Distributed Energy Resource Management System
• Wind and Solar Energy for Municipal Operations
• Utilities: Water - Water Treatment Solids Drying Pad
• Police Solar Panels/Covered Parking
• Leading By Example: Municipal Strategic Initiatives
• Water and Wastewater – Database Analyst
• Community Resiliency and Adaptation Planning – 2018
• Local Food Coordinator & Local Food Systems Program
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Council Discussion -
Environmental Health
Offers
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Economic Health – Funding Sources
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Economic Health – Outcome Overview
• Priorities for sustaining economic health are:
maintaining the City’s role as a regional economic center
continuing collaboration with CSU and other regional participants
• A sustainable economy exists in a community when:
residents can find employment and can afford housing
businesses are able and encouraged to start, remain and expand
there are quality City services and sustainable, attractive infrastructure
• A healthy and resilient economy includes:
diverse jobs that enable citizens and businesses to thrive
innovative and entrepreneurial atmosphere that builds new and creative industries
strong partnership and collaboration with the private sector, educational institutions
and other organizations
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Economic Health – Strategic Objectives
STRATEGIC OBJECTIVES
3.1 - Improve effectiveness of economic health initiatives through collaboration with
regional partners.
3.2 - Enhance employment opportunities through business retention, expansion,
incubation and attraction.
3.3 - Support workforce development and provide community amenities that support
citizens and employers within the city.
3.4 - Provide transparent, predictable and efficient processes for citizens and
businesses interacting with the City.
3.5 - Foster sustainable infill and redevelopment.
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Economic Health – Strategic Objectives
STRATEGIC OBJECTIVES
3.6 - Enhance the economic vitality of our community.
3.7 - Sustain high water quality to support the community and water-dependent
businesses.
3.8 - Maintain electric utility systems, services, infrastructure integrity and stable,
competitive rates.
3.9 - Encourage the development of reliable, high speed internet services throughout
the community.
3.10 - Identify strategies to reduce train horn noise.
Economic Health
Offer Linkage to Strategic Objectives
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- 3.1 - Improve effectiveness of economic health initiatives through collaboration with
regional partners
- 3.2 - Enhance employment opportunities through business retention, expansion,
incubation and attraction
- 3.3 - Support workforce development and provide community amenities that support
citizens and employers within the city
25.1 Economic Health Office
25.6 Implement New Fort Collins-Loveland Airport Strategic Plan
25.9 Additional Ongoing Support for the Fort Collins-Loveland Airport
25.13 Use Tax and Business Personal Property Tax Rebates
72.1 Convention and Visitor Services
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3.4 - Provide transparent, predictable and efficient processes for citizens and
businesses interacting with the City
7.24 Capital - Utilities: Customer Information Billing System (High Performing Government - HPG)
9.3 Enterprise Document Management System and Electronic Record Search (HPG)
9.9 Open Data Portal 2nd
Phase Implementation (HPG)
10.7 City Procurement and Vendor Payment Modernization Program (HPG)
78.10 Historic Preservation Ordinance Review
ECON 3.5 - Foster sustainable infill and redevelopment
28.1 Urban Renewal Authority (URA) Administration
28.3 North College Plan Area Strategic Investment Plan
78.1 Development Review Programs and Services
78.5 City Plan, Transportation Master Plan and Transit Operating Plan
78.7 Sign Code Amendments
Economic Health
Offer Linkage to Strategic Objectives
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3.6 - Enhance the economic vitality of our community
28.1 Urban Renewal Authority (URA) Administration
16.1 Downtown Landscaping and Maintenance
16.4 Expansion of Downtown Maintenance
69.2 Downtown Business Ambassador Program Support (Neighborhood Livability & Social Health)
80.1 Downtown General Improvement District (GID)
3.7 - Sustain high water quality to support the community and water-dependent
businesses
6.1 Water Utility Core Operations (Environmental Health)
6.28 Water Utility Water Supply Vulnerability Assessment (Environmental Health)
Multiple Water Utility Water Quality/Pollution Control Master Plan and Capital
Replacement Projects (Environmental Health)
Economic Health
Offer Linkage to Strategic Objectives
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3.8 - Maintain electric utility systems, services, infrastructure integrity and stable,
competitive rates
5.2 Light & Power Utility Core Operations
Multiple Light & Power Utility Capital Replacement Projects
Multiple Light & Power Utility enhancements for one-time and pilot projects including stray voltage
testing, corrosion mitigation and distributed battery program
3.9 - Encourage the development of reliable, high speed internet services throughout
the community
3.10 - Identify strategies to reduce train horn noise
22.2 City Manager’s Office – Core Operations (High Performing Government)
22.5 State Government Advocacy (High Performing Government)
Economic Health
Offer Linkage to Strategic Objectives
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Economic Health – Offers Not Purchased
• Planning and Implementation of Next Urban Renewal Plan Area
• Small Business Specialist
• Northern Colorado Regional Airport Commission Contingency Funding
• Car Barn Refurbishment
• Enhanced Innosphere Support
• Light & Power - Cut to Length Cable Program
• Downtown Parks Shop
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Council Discussion -
Economic Health
Offers
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High Performing Government – Funding Sources
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High Performing Government – Outcome Overview
• A high performing government includes:
Effective and efficient local governance where all community voices are valued
Fiscal sustainability and transparency
A collaborative and community-based approach to problem solving
Core processes that are consistently used across the organization
A high quality workforce that strives for continuous improvement in all areas
A systems approach, driven by data, to effectively solve problems, creatively
pursue opportunities for improvement and develop innovative solutions
Promoting a values-driven organizational culture that reinforces ethical behavior,
exercises transparency and maintains the public trust
Attracting and retaining the best and brightest workforce
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High Performing Government – Strategic Objectives
STRATEGIC OBJECTIVES
7.1 - Provide world-class services that meet the needs of the community.
7.2 - Promote a values-driven organizational culture that reinforces ethical behavior,
exercises transparency and maintains the public trust.
7.3 - Improve core Human Resource systems, develop a total reward system and
address workforce planning and career development.
7.4 - Develop and implement initiatives to achieve safety goals and continue to focus
on employee health and wellness.
7.5 - Broaden methods of public engagement to reach all segments of the community
by giving additional consideration to diverse backgrounds, languages and needs.
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High Performing Government – Strategic Objectives
STRATEGIC OBJECTIVES
7.6 - Enhance the use of performance metrics and benchmark data to assess results
and program effectiveness.
7.7 - Address long-term funding requirements by diversifying the revenue base and
finding new revenue sources.
7.8 - Optimize the use of City assets through capital improvement planning,
preventative maintenance and asset management.
7.9 - Proactively influence policy and legislative development at all levels of
government regulation.
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High Performing Government
Offer Linkage to Strategic Objectives
7.1 - Provide world-class services that meet the needs of the community
7.24 Utilities Customer Information Billing System
10.6 Financial Planning and Analysis Organizational Training
22.1 City Council
22.2 City Manager’s Office
62.1 Legal Services
Multiple City Clerk Administration and Elections
Multiple Various Information Technology Offers (Managed Print Services, Office 365, PCI Audit)
7.2 - Promote a values-driven organizational culture that reinforces ethical behavior,
exercises transparency and maintains the public trust
9.3 Enterprise Document Management System and Electronic Record Search
9.5 Budget Analysis Reporting Tool (BART) Assessment and Upgrade
22.1 City Council
22.2 City Manager’s Office
22.4 Employee Engagement/Recognition Week/Ethics Hotline
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High Performing Government
Offer Linkage to Strategic Objectives
7.3 - Improve core Human Resources systems, develop a total reward system and
address workforce planning and career development
42.1 HR Core and Learning & Organizational Development
42.3 Benefits and Wellness
42.6 Job Architecture and Enhanced Career Management Programs
42.12 Leadership Development – Maintain Current Level of Service
7.4 - Develop and implement initiatives to achieve safety goals and continue to
focus on employee health and wellness
10.4 Safety, Security & Risk Management Programs & Services
10.9 Safety, Security & Risk Management Information System
19.2 Facilities Operations
29.36 Proposed Police Training Facility (Safe Community)
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High Performing Government
Offer Linkage to Strategic Objectives
7.5 - Broaden methods of public engagement to reach all segments of the community
by giving additional consideration to diverse backgrounds, languages and needs
23.1 Communications and Public Involvement (CPIO)
23.4 Video Production Assistance Programs - Fort Collins Public Access Network (FC Public Media)
23.6 Messaging and Engagement Priorities
7.6 - Enhance the use of performance metrics and benchmark data to assess results
and program effectiveness
10.1 Financial Programs and Services
10.2 Program Performance Evaluation Analyst
10.7 City Procurement and Vendor Payment Modernization Program
10.8 Process Analysts supporting new Continuous Improvement Program
10.9 Safety, Security & Risk Management Information System
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High Performing Government
Offer Linkage to Strategic Objectives
7.7 - Address long-term funding requirements by diversifying the revenue base and
finding new revenue sources
10.1 Financial Programs and Services
7.8 - Optimize the use of City assets through capital improvement planning,
preventative maintenance and asset management
7.29 Utilities: Asset Register and Work Order Management System
19.5 City Facility Roof and HVAC Major Maintenance
19.6 Required Building Modifications
19.9 Compressed Natural Gas Fueling Site
19.23 Facility Maintenance for Utility Buildings
60.12 Streets: Capital Equipment Replacement (Transportation)
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High Performing Government
Offer Linkage to Strategic Objectives
7.9 - Proactively influence policy and legislative development at all levels of
government regulation
Representative Offers
22.1 City Council
22.2 City Manager's Office
22.5 State Government Advocacy
62.1 General Legal Services
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High Performing Government – Offers Not Purchased
• 3.5 FTE for IT: Network Engineer, PC Hardware/Software Specialist, ERP
Systems Analyst, PC Hardware/Software Specialist
• 9.0 FTE for Utilities Customer Service & Administration: Systems Analyst,
Systems Specialist, Utility Data Scientist, Environmental Regulatory
Technician, Environmental Regulatory Specialist, Web Programmer
Analyst, Publicity Marketing Technician, Program Coordinator Supervisor,
Strategic Account Specialist
• Recruitment Specialist - Talent Acquisition - Recruitment and Staffing
• Municipal Fleet Efficiency Fund
• Sustainability Integration and Impact & Program Incidentals
• IT Office Space Reconfiguration
• Volunteer Database Adjustments
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Council Discussion -
High Performing
Government Offers