HomeMy WebLinkAboutMemo - Read Before Packet - 10/12/2021 - Memorandum Lawrence Pollack Re: Slide Presentation For The October 12 Work Session In The 2022 Budget
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Financial Services
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Fort Collins, CO 80522
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M E M O R A N D U M
Date: October 8, 2021
To: Mayor Arndt and City Councilmembers
Through: Kelly DiMartino, Interim City Manager
Travis Storin, Chief Financial Officer
From: Lawrence Pollack, Budget Director
Re: Slide presentation for the October 12 work session on the 2022 Budget
The slide presentation for the City Council work session on October 12 to continue
discussions on the 2022 Budget is attached. These materials will also be updated to the
online agenda materials.
2022 Budget ReviewCity Council Work Session October 12, 2021Attachment #1
22021 Council Budget MeetingsSeptember 14thWork SessionCulture and RecreationEconomic HealthEnvironmental HealthTransportation and MobilitySeptember 28thWork SessionNeighborhood Livability and Social HealthSafe CommunityHigh Performing GovernmentSeptember 21stCouncil MeetingBudget Public Hearing #1 of 2October 12thWork SessionBudget Public Hearing #2 of 2October 5thCouncil MeetingGeneral Discussion Final Council DirectionNovember 2ndCouncil MeetingFirst ReadingNovember 16thCouncil MeetingSecond ReadingWe are here
3Public Engagement SummaryMethods:Two public hearingsThree online forumsOnline surveys, idea generators & engagement activitiesSocial media & digital More accessible information viaoBudget-in-Briefs at www.fcgov.com/budgetoBudget 101 videos at ourcity.fcgov.com/2022budgetCommunity SurveyParticipation:2,400 page visits to ourcity.fcgov.com/2022budgeto112 survey responseso161 funding/service ideas submitted153,500 social media reachNew Budget in BriefPublished in Spanish and English24 pagesAvailable in hard copywww.fcgov.com/budget
4Public Engagement SummaryAsked community about specific budget items, community priorities, pandemic/recovery impactsDue to off-cycle budget, engagement designed to inform both the 2022 Budget and 2022 Strategic Plan updateCommon response themes:Expand transit and bicycling opportunitiesAddress housing cost/availability & invest in homelessness servicesMaintain and enhance park, recreation & trail amenitiesIncrease air quality monitoringSupport local businesses & economic recovery
5Summary of Council Requested Follow Ups
6ARPA Funded Offers Ongoing CostsWhile funding expected ongoing expenses with the one-time nature of ARPA is not sustainable, there will be a significant consideration in the 2023-24 Budget where the remaining ARPA money is expected to fund budget requests associated with the Recovery Plan.
7ARPA Funded Offers One-Time Costs
8Additional Offers of Interest by Council
9Additional Offers of Interest by CouncilCity Council has expressed interest in finding a way to fund several Recommended BudgetStaff has reviewed these requests comprehensively and organized them into three categoriesA. Offers to include for 1stReading withspecific funding source recommendationsB. Offers to include for 1stReading funded by options available to CouncilC. Offers of interest to Council More discussion needed
10A) Offers to include for 1st Reading with specific funding sourcesAll values in 1,000s
11B) Offers to include for 1st Reading funded by options available to CouncilAll values in 1,000s
12C) Offers of interest to Council More information neededAll values in 1,000s
Existing Air Quality Related Offers13Funds 4.0 FTE for Air Quality DivisionSupports existing indoor and outdoor air quality programsAdditional low-cost particle sensorsUpdated web data to support regional displaysTargets spatial representation of impacts from wildfires$200K from Environmental Protection Agency (EPA)Indoor air quality and energy efficiency focusTargets Environmental Justice communitiesOffer 48.3: Air Quality ($451,785)Offer 48.13 : Local and regional air quality monitoring ($35K)EPA Grant: Indoor Air Quality and Energy Efficiency ($0)
Additional AQ Options14Flexibility in objectives and prioritiesInformed by additional community engagementScope and cost TBDAnticipated to only partially fund regional effortsMay require additional funding (e.g., grants or other partners)Option 1: AQ Monitoring Fund ($100-$400K)Option 2: Air Toxics Monitoring Study ($418K)Option 3: AQ Education and Outreach Coordinator ($115K)Fully funded 2-year studyAligned with community requestsMonitoring scope already developed (CSU, City and State)Large City investment for research effort, may inform ongoing monitoring needsImproved AQ messaging and outreachIncrease connections with community partnersAligns with regional needsAnticipated as ongoing needStaff Recommendation: $100K from Option 1 + Option 3Total = $215K
Existing HHW Resources and Options15Typical HHW is accepted at Larimer County residents for free, such as:PaintLawn chemicalsAutomotive fluidsBatteriesCleanersLarimer County Household Hazardous Waste ProgramTimberline Recycling CenterHard to Recycle Materials Yard open 5 days/weekAccepts at No Charge:PaintAntifreezeOilBatteriesOther materials ($5 gate fee), e.g., electronicsAdditional OptionsPaint Stewardship and Recycling (6 locations)Automotive Fluids accepted most auto shops-Z recycling tool: https://www.fcgov.com/a-zRecent utility bill insert sent to over 40,000 households
Incorporating a HHW Event 16Continued support, funding, and promotion of TRC ABOP program at $20,000 to allow residents year-round options.Continued exploration of partnership opportunities with Larimer County to promote other options for the community.Maintain Existing Options Incorporate Hosting 1 HHW Event in 2022Gives residents opportunity to drop off all of their household hazardous waste at one central location on a Saturday. Restores a popular event to the community.Cost $180,000 for Contractor Support, Staff and Disposal Costs.Needed funding of Offer 1.22 (ERA Technician) to open up staff capacity to support event and address increasing environmental compliance needs at $93,000.
Climate Action1745 offers advance climate action Multiple outcome areas Impact of reducing GHG emissions by ~2.7%Investments and Actions Beyond BudgetPartnerships, e.g., Platte River, CC4CA, etc.Policies, e.g., building and land use codesCommunity-led initiatives Additional Opportunities to Advance GoalsCouncil Priority and OCF Implementation
Additional Offers Recommended18Expands an existing City brandFocus on travel demand management (TDM)Includes $$ for staff, consulting, programmingNote scaled offerFully restores Energy Services funding to pre-pandemic levels Program marketingCustomer incentives 1-time LED fixture conversion of 47 house lights in Performance HallReduce energy costs, energy use, and GHG emissionsOffer 13.8: Shift Your Ride Travel Options Program ($200K)Offer 1.16: Energy Services -Full RESTORE (+$99K)Offer 55.14: Lincoln Center Efficient Hall Lighting ($174K)Additional recommendations for climate investments = $473K and additional 0.2% impact
19Funding Options
20Available FundingThe executive team convened to discuss all available funding optionsRecommended funding includes:
21Why is this Funding Available Now?1. Increasing the 2022 Sales Tax revenue forecast2022 year-to-date revenue intake unprecedently greater than budgeted2. General Fund Reserves (from 2021 underspend)Future anticipated reserves not historically used in the budget3. Potentially unused, previously appropriated 2021 ARPAIn advance of the Recovery Plan, applications to utilize the appropriated $4.3M are estimated at $2.6M, leaving $1.7M available under that appropriation 4. Additional 2022 ARPA via Revenue Replacement eligibilityThe plan to use $4.3 in 2021 / $4.1 in 2022 was initial recommendation; primarily saving the majority for the 2023-24 Budget to resource the Recovery PlanThese non-traditional funding sources are all available to CouncilNot considered available at the time for use in the Recommended Budget
22$ 130.8 $ 147.5 $ 151.8 $ 139.9 $ 152.6 $ 152.6 - 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0As of March (2021 Budget)As of May(2021 4+8)As of Oct 5(2021 8+4)Sales/Use Tax Forecasts Throughout 2021(in millions)20212022$154.9favorable development, could add $2.3MOption 1 : Re-baseline 2022 Revenue Forecast -OngoingFunding based on Year-to-Date Actual Results & New 8-4 Analysis
23Option 2: Increase 2022 Reserves -1-Time Funding based on 2021 Underspend and New 8+4 AnalysisHistoric practice is to not use anticipated current-year reserve increases in the -the-Current-year reserve generation would apply to the 2023-2024 BFO CycleBLT recommended $4.0M of 2020year-end General Fund reserves in the 2022 budgetIn the case of 2022, BLT applied approximately $1.3M of anticipated 2021reserve generation2021 Budget predicted $56.2M of year-end General Fund reserves; excluding ARPA, current projections amount to $73.5.
City of Fort Collins$28.1M Total Allocation from ARPA State and Local Fiscal Recovery FundCouncil Approved Ordinance No. 079, 2021$4.3M for short-term, immediate needsDevelopment of Fort Collins Recovery PlanApplication for these funds availableOption 3:Anticipate using approximately $2.6M in 2021Council Approval of Fort Collins Recovery Plan, December 2021~$19.8M for long-term recovery and resilienceRemaining funds tied to the recovery plan2023 - 2024~$4M for mid-term response and recoveryIdentified opportunities to utilize ARPA funding sourceRecommendation to BLTOption 4:Able to close 2022 gaps under revenue recovery eligibilityOptions 3 & 4 increased use of ARPA -1-Time Funding based on 2021 Usage and 2022 Availability
25Questions for City Council1. Which offers does Council have interest in including in 1streading of the 2022 Budget, including preferred funding sources?2. What clarifying questions does City Council have on any of the Offers in the seven Outcomes discussed in the previous budget work sessions?
262021 Council Budget MeetingsSeptember 14thWork SessionCulture and RecreationEconomic HealthEnvironmental HealthTransportation and MobilitySeptember 28thWork SessionNeighborhood Livability and Social HealthSafe CommunityHigh Performing GovernmentSeptember 21stCouncil MeetingBudget Public Hearing #1 of 2October 12thWork SessionBudget Public Hearing #2 of 2October 5thCouncil MeetingGeneral Discussion Final Council DirectionNovember 2ndCouncil MeetingFirst ReadingNovember 16thCouncil MeetingSecond ReadingWe are here