HomeMy WebLinkAbout1985-174-10/01/1985-ADOPTING THE FINANCIAL AND MANAGEMENT POLICIES RELATING TO THE 1986 FINAL BUDGET ' •i
RESOLUTION 85- 174
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE FINANCIAL AND MANAGEMENT
POLICIES RELATING TO THE 1986 FINAL BUDGET
WHEREAS, the City Manager and City Council have reviewed various
financial and management policies in conjunction with the annual budget
process and five year plan; and
WHEREAS, the City of Fort Collins is committed to sound financial
planning and direction; and
WHEREAS, these policies form the basis for various decisions affecting
the 1986 final budget; and
WHEREAS, City Council wishes to formally adopt these financial and
management policies in conjunction with the adoption of the budget ending
fiscal year 1986.
NOW, THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the following financial and management policies be, and the
same hereby are, adopted as the basis for the resolution adopting the 1986
Budget for the City of Fort Collins:
FINANCIAL AND MANAGEMENT POLICIES
RELATING TO THE 1986 RECOMMENDED BUDGET
INDEX
Page
I . General
1. Form of Government . . . . . . . . . . . . . . . . . . . .Q-3
2. City Council . . . . . . . . . . . . . . . . . . . . . . .Q-3
3. City Manager . . . . . . . . . . . . . . . . . . . . . . .Q-4
4. Budget . . . . . . . . . . . . . . .Q-5
5. Categorization of City Services . . . . . . . . . . . . .Q-5
II. Revenues
1. Revenue Policy . . . . . . . . . . . . . . . .Q-7
2. Sales & Use Tax Distribution . . . . . . . . . . . . . . .Q-7
3. General Fund Fees and Taxes. . . . . . . . . . . . . . .Q-9
4. Revenue Sharing. . . . . . . . . . . . . . . . . . . . .Q-9
5. Private Contributions. . . . . . . . . . . . . . . . . . .Q-9
III. Expenditures
1. Administrative Charges . . . . . . . . . . . . . . . . . .Q-10
2. Affordable Housing . . . . . . . . . . . . . . . . . . . .Q-10
3. Art in Public Places . . . . . . . . . . . . . . . . . . .Q-10
4. Building Maintenance Costs . . . . . . . . . . . . . . . .Q-I1
5. Energy . . . . . . . . . . . . . . . . . . . .Q-11
6. Improvement Districts. . . . . . . . . . . . . . . . . . .Q-13
7. Lease/Purchase . . . . . . . . . . . . . . . . . . . . . .Q-16
8. Medical Insurance. . . . . . . . . . . . . . . . . . . . .Q-17
9. Open Space & Trails. . . . . . . . . . . . . . . . . . . .Q-17
10. Payment-in-Lieu-of-Taxes . . . . . . . . . . . . . . . . .Q-17
11. Pensions . . . . . . . . . .Q-1£
12. Performance Pay Plan/Comparable Worth. . . . . . . . .Q-1S
13. Poudre Fire Authority-Revenue Allocation Formula . . . . .Q-20
14. Rebate Programs. . . . . . . . . . . . . . . . . . . . . .Q-20
15. Transfort. . . . . . . . . . . . . . . . . . . . . . . . .Q- 21
IV. Reserve Policies. . . . . . . . . . . . . . . . . . . . . . . .Q-23
V. Investment Policy . . . . . . . . . . . . . . . . . . . . . . .Q-25
VI. Debt Policy . . . . . . . . . . . . . . . . . . . . . . . . . .Q-26
VII . Capital Improvement Policy. . . . . . . . . . . . . . . . . . .Q-27
VIII. Various Funds . . . . . . . . . . . . . . . . . . . . . . . . .Q-30
1. Enterprise Funds . . . . . . . . . . . . . . . . . . . . .Q-30
2. Light & Power. . . . . . . . . . . . . . . . . . . . . . .Q-30
3. Water & Sewer. .Q-32
4. Storm Drainage .Q-33
5. Cultural Services & Facilities Fee Policy. .Q-34
6. Parks and Recreation Fee Policy. . . . . . . . . . . . . .Q-35
7. Parkland Fund Policies . . . . . . . . . . . . . . . . . .Q-36
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The following section contains the Financial and Management Policies which
form the foundation upon which the 1986 Recommended Budget is built.
Changes to the policies which were adopted by Council by Resolution 84-86,
as a companion to the 1985 Budget are as follows:
I.5. CATEGORIZATION OF CITY SERVICES
Natural Resources has been added, under the category of
Maintenance of Effort Services.
VIII.7. PARKLAND FUND POLICIES
This new section has been added to reflect Council direction
relating to Parkland Fund.
II.2. SALES AND USE TAX DISTRIBUTION
Has been revised to reflect accounting mechanisms relating to Bond
Anticipation Notes (BANS) to be issued in 1985 for the Pool/Ice
Rink facility. Sales and Use Taxes from the 0.25 cent tax will be
transferred to the Debt Service Fund, rather than she Capital
Projects Fund, to repay the BANS.
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GENERAL
I.1. FORM OF GOVERNMENT
The municipal government provided by the Charter of the City of
Fort Collins is known as the "Council-Manager government."
Pursuant to its provisions and subject only to the limitations
imposed by the State Constitution and by the Charter, all powers of
the City shall be vested in an elective Council , hereinafter
referred to as "the Council ." All powers of the City of Fort
Collins shall be exercised in the manner prescribed by the Charter,
or if the manner be not therein prescribed, then in such manner as
may be prescribed by ordinance.
Powers of the City
The City shall have all powers granted to municipal corporations
and to cities by the constitution and general laws of this State,
together with all the implied powers necessary to carry into
execution all the powers granted.
Powers of the City Council
All the powers of the City and the determination of all matters of
policy shall be vested in the Council except as otherwise provided
by the Charter of the City of Fort Collins.
I.2. CITY COUNCIL
Membership
As provided by the City Charter, the Council has seven members .
Three of the Council members are nominated and elected from the
City at large. The remaining four members are nominated by each of
the City's four districts and are elected from each district by
the City at large. The term of office of all members of the City
Council is four years each.
The Councils elects a Mayor and assistant Mayor from among
Councilmembers, for a term of one year each.
Powers
As provided by the City Charter, all powers of the City and the —
determination of all matters of policy are vested in the Council
except as otherwise provided by the City Charter. Without
limitation of the foregoing, the Council shall have the power to:
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(a) Appoint and remove the City Manager;
(b) ' By ordinance create, change, consolidate and abolish offices ,
departments or agencies , whether created by the Charter or
otherwise, and to assign functions and duties to the same and
to any offices, departments or agencies established by the
Charter; provided that the functions established in the
Charter for any department shall not be abolished;
(c) Adopt the budget of the City;
(d) Authorize the issuance of bonds by ordinance as provided by
the Charter;
(e) Inquire into and investigate any office, department, or agency
of the City and the official acts of any officer or
employee thereof, and to compel by subpoena attendance and
testimony of witnesses and production of books and documents;
(f) Adopt plats;
(g) Adopt and modify the official map of the City;
(h) Provide for independent audits of all funds and accounts of
the City.
I.3. CITY MANAGER
Powers
As provided by the City Charter, the City Manager shall be
responsible to the Council for the proper administration of all
affairs of the City and to that end shall have power and be
required to:
(a) Appoint and, when necessary for the good of the service,
remove all heads of departments and employees of the City
except as otherwise provided by the Charter;
(b) Prepare the budget annually and submit it to the Council and
be responsible for its administration after adoption;
(c) Participate in discussions of the Council in an advisory
capacity; —
(d) Prepare and submit to the Council as of the end of the fiscal
year a complete report on the finances and administrative
activities of the City for the preceding year, and make
written or oral reports to the Council when required by it as
to any particular matter relating to the affairs of the City
within his supervision;
(e) Keep the Council advised of the financial condition and the
future needs of the City, and make recommendations to the
Council ;
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(f) Enforce the laws and ordinances of the City;
(g) Perform such other duties as may be prescribed by the Charter
or required of him by the Council not inconsistent with the
Charter.
I.4. BUDGET
On or before the first Monday in September of each year, the City
Manager shall submit to the Council a proposed budget for the next
ensuing budget year with an explanatory message. The proposed
budget shall provide a complete financial plan for each fund of the
City and shall include appropriate financial statements for each
type of fund showing comparative figures for the last completed
fiscal year, comparative figures for the current year, and the City
Manager's recommendation for the ensuing year.
The budget estimates are open to the public for inspection and
copy. Within ten days, Council sets times for public hearings, at
which time the public may comment upon the proposed budget. After
the public hearings, and before the last day of October of each
year, the Council shall adopt the budget for the ensuing fiscal
year.
I.5. CATEGORIZATION OF CITY SERVICES
In 1983, the City Council reviewed and categorized all City
services in order to set priorities for allocating available money.
These categories are:
Basic or Core Services - these are services that are best
performed at the local level and are most closely linked to
protecting the health and safety of citizens. Legally mandated
services or commitments are also included in this category.
Maintenance of Effort Services - these are services which the City
has traditionally provided or which reflect a major capital
investment requiring an expenditure of funds to maintain.
Quality of life - these are activities which are provided for more
specialized groups and enhance the desirability of Fort Collins as
a place to live.
These categories were applied to City services in the following
manner:
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Basic or Core Services
Debt Payments
Fire
Light and Power -
Police
Storm Drainage
Streets
Water and Sewer
Maintenance of Effort Services
Cemeteries
Engineering
Facilities
General Administrative Services
Internal Service Activities
Library
Natural Resources
Park Maintenance
Street Lighting
Transfort
Quality of Life
Community Services
Golf
Lincoln Center
Museum
Open Space
Recreation
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REVENUES
II.1. REVENUE POLICY
Generally, the City reviews estimated revenue and fee schedules as
part of the budget process . Estimated revenue is conservatively
projected for five years and updated annually. Proposed rate
increases are based upon:
- Fee policies applicable to each fund or activity.
- The related cost of the service provided.
- The impact of inflation in the provision of services .
- Equity of comparable fees.
The Revenue Policy of the City of Fort Collins includes these
informal policies with the addition of:
- Maintenance of a diversified and stable revenue system to
shelter the City from short run fluctuations in any one
revenue source.
II.2. SALES & USE TAX DISTRIBUTION
In 1986, the City's Sales & Use Tax totals 2.75 cents, developed as
follows:
1968-General City uses 1.00 2
1980-General City uses 1.00
1982-General City uses .25
1984-"Necessary " General City Capital Projects .25*
1985-Pool/Ice Rink Facility .25*
TOTAL 2.75 2
*Excluding sales of grocery food.
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Revenue generated by the Sales & Use Tax will be distributed based
on adopted budgets, as follows:
TAX ON ALL SALES & USES: 2.25 cents
Sales & Use Tax Fund Reserves - fixed dollar amount
Debt Service Fund - fixed dollar amount
Fort Collins Loveland/Airport Authority - fixed dollar amount
Balance remaining after coverage of fixed dollar amounts
distributed to:
General Fund
Seven Year Capital 0 & M 15%
Transfort 5%
Other 64%
Capital Projects Fund
General City Capital Projects (essential ) 16%
TOTAL 100%
Actual Sales & Use Tax revenue generated by the 2.25 cents tax in
excess of budgeted amounts will be transferred to the General Fund.
TAX ON ALL SALES & USES - EXCLUDING GROCERY FOOD: 0.50 cents
Capital Projects Fund
General City Capital Projects (necessary) 50%
Debt Service Fund
Pool/Ice Rink Facility 50%
TOTAL 100%
Actual Sales & Use Tax revenue generated by the 0.25 cent tax for
General City Capital Projects (necessary) will be transferred to,and be retained in, Capital Projects Fund until all authorized
projects have been completed. Upon completion of the designated
projects , excess revenue will be transferred to the General Fund
to reduce property taxes.
Actual Sales & Use Tax revenue generated by the 0.25 cent tax for
the Pool/Ice Rink facility will be transferred to, and be retained
in, the Debt Service Fund until the $9,000,000 of Bond Anticipation
Notes (BANs) issued in 1985 to construct this facility have been
retired. Upon retirement of the BANs, excess revenue will be
transferred to the General Fund for operation of the facility.
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II.3. GENERAL FUND FEES AND TAXES
The City of Fort Collins imposes a number of miscellaneous
licenses, fees and taxes, which are reviewed annually in
conjunction with the Revenue Policy, to determine rates and fee
schedules for the ensuing year.
II.4. REVENUE SHARING
In order to avoid dependency upon federal funds, which may not
continue, for basic or core service areas, the City currently
utilizes Revenue Sharing monies only for one-time and/or capital
costs. The exception to this policy is the use of Revenue Sharing
funds for social service programs on an on-going basis C .e. ,
private non-profit agency contracts , Rebate Programs for Property
Tax, Utility bills, Sales Tax on Food, and the Volunteer program) .
II.5 PRIVATE CONTRIBUTIONS
The City's services in the category of Quality of Life consist of
the following:
Community Services
Golf
Lincoln Center
Museum
Open Space
Recreation
Quality of Life programs represent an "extra" that we have been
able to provide in Fort Collins in the past and may not be able to
provide at the same level without additional support in the future.
Therefore, efforts should be made to secure private contributions
in support of these programs and services, as these contributions
are an integral part of their successful operation.
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EXPENDITURES
III.1. ADMINSTRATIVE CHARGES
The General Fund provides services to all funds, requiring a
formula for the allocation of Administrative Charges . The formula
utilized in the allocation is as follows:
- Allocation of 50% of the cost based upon the ratio of each
fund' s budget (operation , maintenance, and capital ) to the
total City budget (excluding Light & Power's Purchased Power);
and
- Allocation of 50% of the cost based upon the number of City
employees in each fund to the total number of City employees.
This policy is applied to all funds in 1986, with the exception of
those funds which are subsidized by the General Fund.
III.2. AFFORDABLE HOUSING
There are many families within the City of Fort Collins who are
unable to afford adequate housing. With the difficulty of reaching
families in the lowest income range with private financing, and the
low probability of renewed federal funds in the near future, the
City has made a commitment to assist those families in need of
Affordable Housing through the Housing Authority.
Based upon the availability of City resources, the City will
provide the Housing Authority with funds to support a rental
subsidy program, as well as a program to construct housing for
low-income families in the City.
III.3 ART IN PUBLIC PLACES
The City of Fort Collins is encouraging the development of the arts
not only as a highly satisfying end in itself, but also to improve
the quality of life via creative surroundings in the community.
Visually, a community is sterile until the quality of the
environment is enhanced by the addition of visual arts to public
buildings, parks, and plazas. To this end, City Council and staff
have developed a program to provide art in public places for the
City of Fort Collins.
1. Art in Public Buildings
An art acquisition program for the City's major public
buildings housing employees and for public gathering places
was developed in 1982. As appropriate works of art are
identified, staff will make the necessary recommendations to
Council .
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i •
2. Art in the Parks
The budget for each new park will include $1,000 to $5,000
for active sculptures and passive art as a part of the unique
park experience. This is to be designed into the new park
construction schedule.
3. Jury Policy
A policy for a jury of at least three persons with
diversified professional arts backgrounds has been
established to determine commissions and selections of
artworks for public places.
4. Center for the Study of Contemporary Art
The City staff and community will be encouraged to become
involved with CSU in the development of the Center for
Contemporary Art. This should expand the community's
awareness and appreciation of contemporary art.
II1.4. BUILDING MAINTENANCE COSTS
As part of the 1985 Budget process , Council considered the City's
policy relating to the maintenance of City buildings. Such
maintenance has been classified into three categories:
1. General
2. Renovation
A. Minor
B. Major
3. Replacement
Priorities associated with the categories have also been
established:
1. Life/Health and Safety
2. Repair
3. Protecting Capital Investment
4. Quality/Enhancement
III.5. ENERGY
The City recognizes a responsibility in energy management _
conservation. The City assumes a multi-faceted role in this area.
The City's roles are: 1) a consumer of energy in municipal
facilities, 2) a corporate agency of the community to facilitate
energy objectives of the community, and 3) a supplier of energy and
energy services.
As a consumer, the City does building retrofits, utilizes
alternative fuels and modifies operating practices. These efforts
save energy as well as money and/or enable the City to benefit from
new technologies.
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As a corporate agency of the community, the City has developed
various ordinances and development guidelines to encourage energy
conservation and the use of renewable energy.
As a supplier of energy and energy services, the City has initiated
an aggressive outreach effort to provide energy education and
facilitate the expanded use of conservation and renewable energy.
Toward these ends, the City Council will look for implementation of
the following programs and policies:
1. The in-house Energy Management Program will continue to hold a
high priority. The decentralized approach has worked well , and
because this strategy promotes more innovation and greater
departmental involvement, it remains the preferred approach.
2. The principal goal of the program is cost savings. To this end,
funds are budgeted annually for energy conservation retrofit
work in City facilities.
3. Whenever possible, and to the extent practical , life cycle
costing will be used in developing bid specifications and
awarding contracts.
4. The greatest long-term benefits from energy conservation will
result from broad participation by the community. To facilitate
this participation, the CHOICE program has been initiated. The
program, which relies heavily upon a citizen's committee,
provides the means to look at broad community energy concerns
and provide citizen input and leadership.
5. To further encourage energy conservation, City Council will look
for ways to channel community resources for community problems .
The use of CDBG monies for the zero interest loan program is one
example. The HOT SHOT program provides another example, wherein
the electric utility front-ended the cost of this program and
savings are used to pay off the "loan" and provide a rebate to
participants . In addition, the Solar Conservation and Other
Renewable Energy (SCORE) Loan Program was initiated in 1985.
Low-interest loans are made available to residents for
installation of energy-related improvements . The loans are
financed through the sale of small denomination bonds
(mini-bonds) to the public.
6. The, City Council recognizes the important role of the private
sector in long-term energy conservation and will take steps to
be involved with the community in a way which encourages energy
conservation in building design and community layout. In
cooperation with Everitt Enterprises, a Fort Collins developer,
and the American Public Power Association (APPA) , the Fort
Collins Light and Power Utility is trying to demonstrate an
energy efficient, mixed-use community being developed on the
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287-acre OakRidge property owned by the Everitt firm in
southeast Fort Collins. The demonstration effort began in
January, 1984 and will likely continue into 1986. It is being
accomplished with the assistance of a $20,000 grant from the
APPA's Demonstrate Energy-Efficient Developments (DEED) Program.
7. The alternate fuels program will be continued and expanded,
ensuring operation cost savings and a reduction of vulnerability
through foreign oil reliance.
III.6. IMPROVEMENT DISTRICTS
The City occasionally determines that certain road and related
improvements can best be accomplished through the creation of a
Special Improvement District (SID) . The costs of such districts
are shared between the City and property owners in the district.
The following outlines the benefits of creating SIDS:
- Improvements to arterial and collector streets are constructed
in a coordinated manner. There are fewer gaps in the
improvements and the motoring public has a better street
system for travel .
- The Street Oversizing payments to developers can be more
closely associated with the revenue derived from the
completed developments . Districts give the City the
opportunity to defer all or part of the repayment that it is
obligated to make to developers who construct arterial
streets. In effect, the oversizing payments become a part of
the assessment. When the actual building permits are taken
out, the normal oversizing fee is waived. This process can
have a significant positive impact on the cash flow of the
Street Oversizing Fund.
- The cost of development is reduced. At present, there is a
measurable difference in the interest rates between an
Improvement District and conventional financing. If districts
are generally accepted and used, staff believes that the cost
savings will be passed on to the ultimate buyer by market
pressures.
- A less tangible, but still significant, benefit is a reduction
in staff time required to administer a Special Improvement
District compared to a standard district formed and _
administered by the City. In the Special Improvement
District process , the developer and his engineers and
attorneys do most of the work. City staff still is involved
in the review; however, this is much less intensive than
actual administration.
The result of the districts will be miles of improved arterial and
collector streets that will be available to the public much sooner
than if the developments had put in each segment on their own
schedule.
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0
By Resolution 84-91, dated June 5, 1984, Council adopted the
following relating to SIDs:
1. All public improvements as described in Chapter 16 of the City
Code shall be eligible for inclusion in an improvement district.
However, the City may exclude certain improvements when it deems
such improvements are not in the best interest of the City.
The improvements considered are water and sewer mains , storm
drainage facilities , sidewalks , curb and gutter, pavement, street
lighting, and bridges. All of these improvements must be included
in dedicated public rights-of-way or easements . Gas , telephone,
cable TV, and electrical lines are excluded.
Specific improvements that are otherwise eligible may be excluded,
if their benefit to the public cannot be shown , the timing is not
right, or for some other reason, the improvement would not be
appropriate to include within the district.
2. The City reserves the right to deny for cause the creation of
any district.
This policy gives the Council the opportunity to deny the petition
to create a district for any reason it chooses. Developers have a
concern that the reason for any denial not be arbitrary. Staff is
certain Council would not abuse this power.
3. The proposed district should be consistent with the Master
Street Plan and other planning documents of the City. The district
should have an approved Master Plan. An approved preliminary plan
may be required if local street or utility improvements are to be
included within the district. The City may also require a storm
drainage plan to be submitted.
This policy gives the staff and the Planning and Zoning Board an
opportunity to consider the proposed improvements and their
compatibility with surrounding and future infrastructure and
environment of the City. The staff must have a certain amount of
technical information in order to evaluate the proposed district.
4. The total cost of the district should not exceed the appraised
value of the improvements and the land to be included in the
district.
This policy prevents the overloading of future owners of the
lands in the district with assessments that are greater than the
value of the improvements and the land.
5. The amount of encumbrances on the land in the district including
the assessments of the district should not exceed 90% of the value
of the land including the improvements without being acknowledged
by subordinate lien holders , or the posting of a surety from a
recognized company for 100% of the principal and interest of the
construction cost of the district.
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Petitioners for the district should have a substantial equity
interest in the lands of the district. This policy is intended to
protect lenders who have liens that are prior in time to the
district but are junior by operation of law.
6. The cost to be borne by the City in a district must be currently
available or minimized and/or deferred through credits or other
mechanisms.
The various costs to the City for water, sewer, or street
oversizing must be available before the City can commit to a
project. If the City does not have the funds, then some means of
arranging for credits against projected fees must be provided.
7. The City has the option to require property owners within the
district to manage construction of the improvements themselves or
through professional engineers where it is to the City' s advantage
to do so and the proposed managers can demonstrate experience and
competence.
Where developers are experienced in managing the construction
activities, the City can avoid additional burden on the staff or
havi ng to i ncrease staff, by al 1 owi ng the devel oper �o manage the
actual construction either directly or through the services of a
professional engineer. The City' s role can be that of a
coordinator or overseer of the process. The developer has a keen
interest in swift completion of the project, and the City still
retains control of the funds and has final approval of the work.
8. The City has the option to require privately-managed districts
to bid and award contracts for construction of the public
improvements when provided for in the District's Master Agreement
and performed in conformance with the City Charter.
This policy is justifiable on the same basis as the preceeding
policy.
9. Construction activities of district improvements should not
cause extraordinary inconvenience to properties choosing not to be
a party to the district.
Frequently in large voluntary districts , there are smaller
developed parcels that are not ready or able to participate in the
cost of improvements. This policy protects the interests of those —
outparcels in terms of maintaining access to their property,
reducing or mitigating environmental effects , or causing financial
harm. This policy is not intended to forgive those excluded
properties from paying for improvements installed by the district
for which repay agreements have been submitted by the district
property owners and approved by the City.
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10. Should a default in the assessment payments of a district
occur, the City shall have the right to immediately proceed with
all legal remedies including a tax deed and sale of the affected
land.
This policy commits the City to protecting the interests of the
bondholders who have financed the district. It also protects the
interests of the other citizens of the community who could be
burdened by coming to the aid of property owners being assessed for
improvements.
11. The City Manager may establish administrative policies and
procedures for the improvement district process and may recoumend
appropriate fees to the City Council .
The City Manager would establish routine procedures such as
submittal deadlines for documents, etc. related to the processing
of applications . The City Manager may also bring to the Council
recommendations for application fees or other charges. This was
another very controversial policy statement to the development
community. Staff wants to analyze the question of appropriate fees
further.
12. Proposed improvements should be of benefit to the City within a
reasonable timeframe.
Proposed districts should demonstrate some merit or benefit to
the community in order to be considered for the district process.
Such benefit could be completion of an integral segment of the
street system, water distribution system, wastewater collection
system, or contribute to some significant land use planning goal of
the City.
III.7. LEASE/PURCHASE
The City of Fort Collins has used lease/purchase financing for the
provision of new and replacement equipment, vehicles and rolling
stock in order to ensure the timely replacement of equipment and
vehicles.
Other advantages that lease/purchase financing can offer over the
traditional cash method of financing are;
1. Decreasing the impact of inflation on the purchase of new and —
replacement equipment.
2. Reducing the initial impact of the cost to user departments
by enabling acquisition costs to be spread over the useful
life of the equipment.
3. Safeguarding the opportunity to use cash assets to earn
higher interest than the interest cost of lease/purchasing.
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Finally, it should be noted that the City is able to discontinue
the equipment leases at its discretion so that future City Councils
will have the option to continue or discontinue the policy of
lease/purchasing City equipment.
III .8. MEDICAL INSURANCE
The City of Fort Collins entered into a partially self-funded
medical insurance program in October, 1981. This program allowed
the City to cut out profit paid to a private carrier, invest
available money (at higher rates), and maintain better cash flow.
The initial savings were as high as expected and the program
continues to provide a cost effective and very desirable employee
fringe benefit.
The partially self-funded insurance program is enhanced by a
consortium of cities to collectively bid administrative services ,
stop-loss insurance for unexpected emergencies , and life and
accidental death and dismemberment insurance, resulting in lower
rates.
III.9 OPEN SPACE AND TRAILS - ACQUISITION AND DEVELOPMENT
The City of Fort Collins is committed to preserving valuable
remaining open space resources.
In 1983, the Subcommittee on Open Space was formed in response to a
need for effective action in preserving such valuable remaining
open space resources. Each year, the committee recommends to
Council specific applications of Colorado State Lottery funds for
the acquisition and development of open space and trails, which is
the Council-approved use of such lottery funds received by the
Ci ty.
Resources are provided within the Capital Improvement Program
(Conservation Trust Fund and General City Capital "Necessary"
Improvements portion of the Capital Projects Fund) in the 1986
Budget for expenditures relating to the acquisition and development
of open space and trails.
Amounts appropriated for expenditure in the Capital Projects Fund
in the 1986 Budget are intended to supplement the expenditures
authorized by Council from lottery funds in the Conservation Trust
Fund.
III.10 PAYMENT IN LIEU OF TAXES (PILOT)
In accordance with the City Charter (Art.IX Sec.6) regarding
municipal utility rates and finances, the water, sewer, and
electric utilities "pay into the General Fund in lieu of taxes an
amount at least equivalent to City taxes and franchise permits if
the utility were privately owned."
Q-17
The PILOT rate, as established by Council , for the Water, Sewer, and
Light and Power Utilities is 5% of operating revenues per year for
each utility. The 5% PILOT rate accomplishes the following
objectives:
- Establishes a rate approximately one and one-half (1 1/2)
times the rate that would be charged if the !tilities were
privately owned; and
- Provides a more consistent rate for all utilities.
III.11. PENSIONS
The City of Fort Collins contributes to five (5) pension plans ,
including:
- Police
- Fire
- General Employee Retirement
- State Pension - Police
- State Pension - Fire
The Police, Fire , and General Employee Retirement Plans are
administered by the City of Fort Collins. The rate of contribution
for the City administered plans is based upon an annual actuarial
analysis for the the normal cost and unfunded liability of the
number of employees participating in each pension plan.
The City's current pension consists of the following provisions:
1. The City will maintain contribution rates at a level
sufficient to meet all current normal costs of each pension
plan.
2. Any unfunded liability incurred by the individual pension
funds will be amortized over a period not to exceed twenty
(20) years.
Q-18
3. A thrift plan for City employees is an adjunct to the general
employee retirement plan, to maintain comparability with
benefits provided by other Front Range communities. Employee
participation in this plan is optional .
The 1986 Budget incorporates the following rate requirements to
continue this policy:
General Employee
Normal Costs Police Fire Employee Thrift Plan
'es t-im lea)
City Contribution 8% 8% 4.385% 3%
Employee Contribution 8% 8% -- 30
TOTAL 16% 16% 4.385% 6%
General
Unfunded Liability Police Fire Employee Total
City Contribution $46,000 $125,000 $227,000 $398,000
III.12. PERFORMANCE PAY PLAN
The City' s goal as an employer is to attract and keep quality
employees. To help accomplish this goal , the City has established
a performance pay plan. The performance pay philosophy has been
maintained for five general reasons:
1. To attract quality employees,
2. to retain quality employees,
3. to operate the City with fewer employees than comparable
jurisdictions,
4. to provide an incentive and a reward for productivity, and
5. to recognize cost savings generated by productive employees.
Every effort will be made to provide the economic adjustment
necessary for the performance pay plan by January of each year. If
this is not financially feasible, as much as can be provided (given
the priority demands on available resources) will be given in
January.
In the area of compensation, the City will initiate a three-year
program, beginning in 1986, to address the issue of comparable
worth, which is concerned with compensation of individuals based
upon their comparable worth to the organization.
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III.13. POUDRE FIRE AUTHORITY - REVENUE ALLOCATION FORMULA
In December, 1981, the City entered into an agreement with the
Poudre Valley Fire Protection District, creating the Poudre Fire
Authority (PFA) , which provides fire protection services to the
City.
By Resolution 83-7, passed on January 1, 1983, Council adopted the
following Revenue Allocation Formula as the City's contribution to
the PFA for the years 1983-1987:
REVENUE ALLOCATION FORMULA
Annual Operation and Maintenance Budget - the City will
contribute to the Poudre Fire Authority a sum equal to .303 of 1
cent of existing Sales and Use Tax and 6 mills of existing
property tax from the General Fund to provide for the annual
operation and maintenance of Poudre Fire Authority. (These
funds are in addition to funds contributed by Poudre Valley Fire
Protection District. )
The City revised its property tax mill levy in 1984 and 1985, and,
accordingly, the 1986 Budget includes an allocation of property tax
to the PFA, maintaining the relative proportion of property tax
mills as allocated to the PFA in Resolution 83-7.
The City also increased the Sales and Use Tax rate by 0.25 cent
(excluding grocery food) on July 1, 1984, for "necessary" General
City Capital projects and by another 0.25 cent (excluding grocery
food) on January 1, 1985 for a Pool/Ice Rink Facility. Since the
revenues generated by these increases are dedicated for the
specific purposes intended, the 1986 Budget includes an allocation
of 0.303 of 1 cent of the City' s 2.25 cents Sales and Use Tax
applicable to all taxable sales and uses to the PFA, in accordance
with Resolution 83-7.
Since the Revenue Allocation Formula represents the City' s
contribution to the PFA for its operation and maintenance costs
only, the City's 1986-1990 Capital Improvement Program provides for
additional contributions to the PFA for capital expenditures, in
the Capital Projects Fund.
III.14. REBATE PROGRAMS
The City is sensitive to the fact that certain segments of its
population, specifically the handicapped and senior citizens on
fixed incomes, may be unable to keep pace with increasing taxes and
utility costs. The City also recognizes that the Sales Tax on Food
has a relatively greater impact on low-income residents than it may
have on other residents. In an effort to partially offset the cost
of Property Taxes, utility billings and Sales Taxes on these
segments of its population, the City has established several rebate
programs, as follows:
Q-20
Property Tax and Utility Charge Rebate Program
To provide financial assistance to those applicants (handicapped
and senior citizens ) who qualify under established guidelines
(e.g. , income, residential , disability certification, etc. ) . Income
guidelines are adjusted periodically in accordance with State
income levels established for such programs.
Sales Tax Rebate on Food Program
The City recognized the regressiveness of the Sales Tax on food and
specifically excluded the sale of grocery food when enacting a
voter-approved 0.25 cent Sales and Use Tax increase for Capital
Projects, on July 1, 1984 and another 0.25 cent on January 1,
1985, for a Pool/Ice Rink Facility.
In addition to these measures, the City implemented a Sales Tax
Rebate on Food Program with the 1985 Budget, providing for an
annual rebate to members of qualifying households in the City, on
the basis of residency and income guidelines.
III.15 TRANSFORT
The City's current Transfort System is financed by:
- A contract with CSU
- User fees (non-CSU)
- Federal Revenues
- A General Fund operating subsidy
The 1986 Budget includes a continuation of this City's commitment
to the Transfort and Care-A-Van services. A General Fund subsidy
of $709,617 is expected to be partially offset by incoming Federal
revenues of $383,990,- resulting in reduced City subsidies of
$315,127 for Transfort and $10,500 for Care-A-Van. Federal mass
transit funding (Surface Transportation Assistance Act of 1982) has
been formally approved through 1986. Because of the uncertainties
in the federal budget, our 1986-90 financial statements do not
include federal funding beyond 1986. Marketing efforts are planned
during 1986, with a goal of continuing to improve Transfort
ridership and decreasing the needed City subsidy accordingly.
Q-21
The City will continue to work toward establishing a Quality
Transfort System as soon as is practicable, to be phased in as
funds become available. Such a system could provide for the
following;
- Nine peak-hour buses serving 85N of the community and all
major service areas at reasonable intervals.
- Operation of the system 14 hours per day, 6 days a week.
- Operation of a downtown shuttle.
- Partial funding by fares.
Working toward the Quality Transfort System, the City designates
Transfort to be an essential service to all the community, and will
pursue coordination efforts with Care-A-Van and the School
District, grant awards where available, and increased revenues
through advertising and contracts.
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IV. RESERVE POLICIES
Formally adopted reserve policies are an important factor in
maintaining the City of Fort Collins in good fiscal health.
There are three primary types of reserves:
A. Operating Reserves
B. Capital Reserves
C . Debt Reserves
The degree of need for these reserves differs based upon the type
of fund or operation involved. However, one policy statement for
each type of reserve can be uniformly applied to most funds. (Refer
to Policies VIII .2 and VIII .3 for Light and Power and Water and
Sewer Utilities' policies. )
A. OPERATING RESERVES
There are two types of operating reserves:
1. An appropriated contingency which provides for unexpected or
unanticipated expenditures during the years . It is typically
budgeted at an amount equal to 2% of the annual operating
budget by fund, but may be a fixed amount depending upon
available funds.
2. Revenue reserve of working capital is established to provide
for unforeseen revenue losses. If something happens to the
economy, there is flexibility without worrying that current
expenditures will exceed the total revenue available. The
revenue reserve is calculated at an amount equal to 2% of
projected annual operating revenue by fund.
This revenue reserve is not appropriated as part of the
annual budget, but may be utilized at the end of the fiscal
year, if necessary.
B. CAPITAL RESERVES
Capital reserves are established in order to provide for
normal replacement of existing capital plant and additional
capital improvements financed on a pay-as-you-go basis.The amount of the reserve is determined by averaging the dollar
value of capital needs as shown in the Capital Improvement
Program.
A second type of capital reserve is appropriated capital
contingency, typically 5% of the amount annually appropriated
for capital construction, which provides for the conceptual
study and preliminary design of unanticipated capital
improvements.
Q-23
Debt financed capital improvements by definition are financed
by the proceeds of bond issues and do not require capital
reserves.
NOTE: Because of the incorporation of Project RECAP
recommendations into the 1986 Budget process , the reserves
retained annually in the General City Capital Projects portion
of the Capital Projects Fund for the years 1986-1990 are
determined by the excess of resources over identified
expenditures.
C. DEBT RESERVES
Debt reserves are established to protect bond holders from
payment defaults . Adequate debt reserves are essential in
maintaining good bond ratings and the marketability of bonds.
The amount of debt reserves are established by bond ordinance in
association with each bond issuance.
These policy statements are intended to apply to various funds
of the City. However, it is recognized that various Federal ,
State, and local laws and regulations, and specific financial
policies may supercede these policies.
Q-24
V. INVESTMENT POLICY
The City operates under the following Investment Policies:
1. The City analyzes the cash flow of all funds on a regular
basis to ensure maximum cash availability.
2. In order to obtain the best possible return on all cash
investments, the City pools cash from several different funds
for investment purposes.
3. Market conditions and investment securities are analyzed on a
daily basis to determine the maximum yield to be obtained.
4. The City invests at least 99% of its idle cash on a
continuous basis.
5. The City invests in quality issues and complies with the City
Charter and State Statutes regarding investment requirements.
6. The City's investment decisions as to the types of
investments purchased and the banks, trust companies,
brokerage firms or other financial institutions utilized
shall be made in accordance with Resolution 85-134 of the
council regarding the Republic of South Africa.
Q-25
VI. DEBT POLICY
The City of Fort Collins will use debt financing when it is
appropriate. It will be judged appropriate only when the following
conditions exist:
1. When non-continuous capital improvements are desired.
2. When it can be determined that future citizens will receive
a benefit from the improvement.
When the City of Fort Collins utilizes long-term debt financing it
will ensure that the debt is soundly financed by:
1. Conservatively projecting the revenue sources that will be
utilized to pay the debt.
2. Financing the improvement over a period not greater than the
useful life of the improvement.
3. Determining that the cost benefit of the improvement,
including interest cost, is positive.
Auditionally, the City has the following policies in relation to
debt financing:
1. Total general obligation debt will not exceed 10% of assessed
valuation in accordance with the City Charter.
2. Where possible, the City uses special assessment, revenue, or
other self-supporting bonds instead of general obligation
bonds .
3. Fort Collins maintains good communications with bond rating
agencies about its financial conditions.
Annual budgets include debt service payments and reserve
requirements for all debt currently outstanding for all proposed
debt issues.
Q-26
VII. CAPITAL IMPROVEMENT POLICY
Citizen participation
The development of the Capital Improvement Program was
significantly modified in the 1984, 1985 and 1986 Budgets by
Resolution #83-86, dated May 3, 1983. Council stated its intention
"to develop and implement a program for soliciting citizen
involvement and participation in formulating a Capital Improvements
Program and the funding thereof." This was accomplished with the
adoption of Resolution 83-94, dated June 7, 1983, creating a
Citizens' Advisory Committee on Project RECAP (REevaluation of
CApital Projects ) . Council directed the Citizens' Advisory
Committee on Project RECAP to make recommendations on the capital
improvement needs of the community. The Project RECAP Committee
was instrumental in the determination of the General City Capital
projects to be accomplished in the 1985-1989 Capital Improvement
Program. On February 21, 1984, Council passed Resolution #84-38,
indicating specific General City Capital projects to be
incorporated into the 1985-1989 Capital Improvement Program.
Appropriations for each year's expenditures will be authorized with
the adoption of the City's annual budget for each of these years.
In addition, at the City's May 1, 1984 election , the City's voters
approved the imposition of a 0.25 cent increase in the Sales & Use
Tax rate (excluding grocery food) , effective for a five-year period
commencing July 1, 1984, to finance "necessary" General City
Capital projects, as well as a 0.25 cent increase in the Sales &
Use Tax rate (excluding grocery food) , effective for a five-year
period commencing January 1, 1985, to finance the construction of a
Pool/Ice Rink Facility in the City.
Capital Improvement Policy
With the above-mentioned modifications to the process of
identifying the City's capital needs, the City will continue to
operate under its existing Capital Improvement Policy:
1. The City will develop a multi-year plan for capital
improvements and update it annually.
2. The City will make all capital improvements in accordance
with the adopted Capital Improvement Program and the Capital
Project Management Control System.
3. The City will identify estimated costs and funding sources
for each capital project requested before it is submitted to
City Council .
4. The City will use intergovernmental assistance to finance
only those capital improvements that are consistent with the
Capital Improvement Plan and City priorities and whose
operating and maintenance costs have been included in the
operating budget forecasts.
Q-27
Capital Financing
The financing of capital projects is generally based upon the
different types of capital improvements (see Section VIII of these
policies for specifics on Water, Sewer, and Light & Power capital
policies) . Capital Projects are categorized as follows , with
financing as noted for each category:
1. REPLACEMENT - capital expenditures relating to normal
replacement of worn or obsolete capital plant.
In general , capital expenditures relating to the normal
replacement of worn or obsolete capital plant will be
financed on a pay-as-you-go basis , with debt financing
considered where appropriate.
2. EXPANSION - capital expenditures relating to the construction
of new or expanded facilities necessitated by growth.
Capital expenditures relating to the construction of new or
expanded facilities necessitated by growth will be financed
primarily on a pay-as-you-go basis , Lot when the City' s share
of the new improvements can be determined to benefit the
overall population in the future , debt financing may be
appropriate.
3. UNUSUAL - capital expenditures for improvements that enhance
the quality of life in Fort Collins and are consistent with
the City's goals but cannot be categorized as essential for
the provision of basic services or maintenance of life.
The policy relating to unusual capital expenditures directs
the City to look-to the ultimate beneficiary of each capital
improvement in order to determine the source of funding. As
- projects are identified, they will be funneled through a
decision process in order to:
a. determine whether projects are acceptable from the point
of view of municipal goal achievements or cost benefit
analysis ,
b. evaluate each capital project' s relevant cash flow in
order to determine if a project is financially viable, and —
c. prioritize capital improvements based upon these findings.
Prioritization of General City Capital Projects
With the incorporation of the recommendations of the Citizens'
Advisory Committee on Project RECAP into the 1984, 1985 and 1986
Budget processes, a new mechanism for categorizing General City
Capital projects was developed in order to determine priorities for
the allocation of available funds to projects.
Q-28
•
General City Capital needs are first identified as relating to one
of the Council-adopted "categories of service," as detailed in
Policy I .3.:
I . Basic (or Core)
II . Maintenance of Effort
III . Quality of Life
Within each category, projects are then ranked as:
A. Essential
B. Necessary
C. Desirable
The following matrix demonstrates the resulting order of priority
in terms of access to available funds:
MAINTENANCE QUALITY
BASIC SERVICES OF EFFORT OF LIFE
Essential (1) Essential (2) Essential (3)
Necessary (4) Necessary (5) Necessary (6)
Desirable (7) Desirable (8) Desirable (9)
Basic service essential projects are considered top priority and
Quality of Life desirable projects last priority.
Q-29
VARIOUS FUNDS
VIII.1. ENTERPRISE FUNDS
The City currently has six Enterprise Funds: Cemeteries , Golf,
Light and Power, Sewer, Storm Drainage, and Water. The Enterprise
Fund classification has been used to account for various services
for which there exists a significant potential for financing
through user charges. In many of these funds , a subsidy from the
General Fund has been necessary to cover operating expenses .
Historically, services were accounted for in an enterprise fund
only if they were financed more than 50% by user charges. In the
1986 Budget, all Enterprise Funds, except for Cemeteries, are
recovering 100% of their costs in 1986-1990. Cemeteries Fund
anticipates recovery rates of 70 - 73% in the upcoming five-year
period.
There has been a nationwide trend toward the regulation of the
demand for governmental services through user fee mechanisms . The
Fort Collins City Council supports this concept. The long term
goal of all enterprise accounts is self-sufficiency. Toward this
end, those funds which are not presently self-sustaining shall
incrementally adjust their rate structures to achieve a positive
income position.
Those operations which cannot achieve a positive income position
within a five-year timeframe may be accounted for as
subsidized operations and not as Enterprise Funds . In the case of
the Cemeteries Fund, efforts will be undertaken to improve recovery
rates in 1986, and beyond. Possible reclassification will be
considered, if needed.
VIII.2. LIGHT AND POWER UTILITY
The financial policies of the Light and Power Utility are
administered in accordance with the City Charter as more
specifically defined in Resolution 77-68, as amended from time to
time by City Council action.
The 1986 Budget/Five Year Plan was prepared in compliance with the
following:
A. FUNDAMENTAL PURPOSE _
"To efficiently manage the City of Fort Collins' energy
systems and services with sensitivity to the environment, the
community, and conservation of resources. To enhance the
quality of life for the consumers and the community through
provision of sufficient electrical energy, reliably and
economically."
Q-30
B. ELECTRIC RATES
Electric rates will be based upon the cost of service
approach to reflect full distribution of costs to appropriate
rate classes in order to effect equitable sharing of costs .
Rates shall be established and maintained at a level
sufficient:
1. To pay the full cost of operation and maintain the
electric utility in good repair and working order;
2. To provide an operating reserve equal to eight percent
(8%) of budgeted operating expenditures , excluding the
cost of purchased power;
3. To provide a future capital improvements reserve in an
amount which shall , as nearly as possible, be equal to the
average annual cost (excluding debt financing) of the
approved five-year capital improvement plan, considering
any changes which, from time to time, may be made in such
plan provided, however, that the amount in such reserve
shall be be permitted to vary from year to year if
approved by the Council during the annual budget process
for the purposes of achieving stability and predictability
in rates and to minimize changes adverse to electric
consuners;
4. To pay into the General Fund of the City of Fort Collins
in lieu of taxes and franchise permits a percentage of
revenue from the sale of electric energy equivalent to
five percent (5%) of operating revenues.
C. EXCESS RETAINED EARNINGS
After retained earnings are reserved as specified above, any
excess retained earnings shall be added to the future capital
improvements reserve.
D. OPERATING RECORDS
1. The Light and Power Utility will maintain a standard
system of accounting which shall , at all times, correctly
reflect all financial operations of the system and keep
other such records and data as are generally used by the —
electric utility industry.
2. The accounts of the Light and Power Utility shall be kept
separate and distinct from all other accounts of the City
and shall contain proportionate charges for all services
performed by other departments as well as proportionate
credits for all services rendered to other departments.
Q-31
VIII.3. WATER AND SEWER UTILITIES
Formally adopted financial policies are an important factor in
planning the financial operations of the Water and Sewer Utilities.
Comprehensive financial policies include statements concerning:
A. Net Income Requirements
B. Rate Requirements
C. Reserve Requirements
D. Capital Cost Financing
Policy statements have been developed for each area listed above
and incorporated into the five-year financial plans for the Water
and Sewer Utilities as follows:
A. NET INCOME
The net income of the Water and Sewer Utilities shall be at
least equal to the annual cost of the following:
1. Principal reductions of outstanding bonds ,
2. Loan requirements to Federal or State agencies, and
3. Annual operating reserve increases .
B. RATE REQUIREMENTS
Utility rates shall be set at a level to provide for the net
income requirement in each fiscal year. Levelized rate
increases are preferred and, when possible, should be
achieved through levelized expenditures.
C. RESERVES
The following reserves shall be established and maintained in
the applicable utility.
1. Operating Reserve - at least equal to two percent (2%) of
flie projectedannual operating revenue.
2. Plant Investment Fee Reserve - equal to the annual fees
less annual cost allocated to System Expansions.
3. Capital Reserve - equal to the amount of bond proceeds
avai ao-Te at ne end of one fiscal year to be expended in
the next fiscal year. —
4. Debt Reserve - equal to the amount required by individual
bon office.
Q-32
D. CAPITAL COST FINANCING
Annual capital cost shall be identified as one of three
types , and financed as noted:
1. Normal replacement of the existing system.
Financed on a Pay-As-You-Go basis from a reserve for
depreciation funded from current rates.
2. System improvements that benefit the existing and future
population.
Debt financed over the life of the improvement and the
annual debt service shall be funded from current rates.
3. System expansions that benefit future populations.
Debt financed over the life of the expansion , and annual
debt service shall be funded from a combination of Plant
Investment Fees and Contributions in Aid of Construction.
Federal and/or State grants may be utilized to fund portions
of, or all of, capital costs .
VIII.4. STORM DRAINAGE FUND
The primary purpose of the Storm Drainage Fund is to meet the
public need for effective stormwater management, including flood
control , capital improvements and the operation and maintenance of
drainage facilities. Financial policies have been developed
for the following categories:
A. Operation and Maintenance Requirements
B. Capital Project Needs
C. Capital Cost Financing
D. Reserves
A. OPERATION AND MAINTENANCE REQUIREMENTS
Utility rates will be set at a level to provide for the
operation and maintenance requirement for each fiscal year. The
rate is structured on a base rate of $.000384 per square foot
per month and on a rate factor compiled at the category of —
development, such as very light, light, moderate, heavy and very
heavy.
Q-33
B. CAPITAL PROJECT NEEDS
A master plan has been developed for each basin to identify
drainage needs, set fees , and determine capital improvement
requirements . In the effort to balance storm drainage risk and
liability, a 20-year storm drainage capital program has been
developed that relates to the system requirements of each basin
where a positive cost/benefit ratio exists.
To finance this capital program, a one-time basin fee is
collected with new development and a monthly capital fee from
property owners.
C. CAPITAL COST FINANCING
The financing of capital improvements will be accomplished
through the following:
1. A one-time basin fee that is collected with new development.
2. Monthly capital fee collected from property owners.
3. Bond issues that will be financed over the life of the
improvement.
The annual debt service will be provided from the existing
monthly capital fees.
D. RESERVES
The following reserves have been established:
1. Capital Reserve - equal to the amount of bond proceeds,
monthly capita fees, and one-time new development fees
available at the end of one fiscal year to be expended in the
next fiscal year.-
2. Operating Revenue Reserve - equal to 2% of the projected
annua opera ing revenue.
3. Debt Reserve - equal to the amount required by the individual
bon office.
VIII.5. CULTURAL SERVICES & FACILITIES FEE POLICY
The Cultural Services and Facilities Fund shall budget to recover a -
minimum of 40% of its total cost in revenue generated through
implementing the following policy:
1. Total revenue from fees and charges shall cover a minimum of
55% of Lincoln Center operation and maintenance and
Performing and Visual Arts Programming Budgets . This includes
revenues generated at the Lincoln Center from rentals,
equipment, concessions and other miscellaneous sources and
all total direct revenues from the Performing and Visual Arts
Programming. The difference between 55% and 100% will be
funded by a transfer from the General Fund.
Q-34
2. The Cultural Services and Facilities Administration and
Museum budgets provide minimal financial support and will be
funded by a transfer from the General Fund.
3. Major capital improvements and renovations will be financed
through sources other than Cultural Services and Facilities
Fund.
4. Solicitation of funds through donations, fund-raising events ,
and non-traditional sources shall be encouraged by the City
staff, Lincoln Center League,the Cultural Resources Board and
the City Council .
Funding collected for any special purpose shall be earmarked
for that purpose and those funds will be processed through
the Fort Collins Foundation.
YIII.6. PARKS AND RECREATION FEE POLICY
In 1981, the City Council adopted the following fee policy for
Parks and Recreation, which continues in effect.
1. The Recreation Division shall recover a minimum of 50% of its
total costs in revenue generated through fees and charges.
2. Total direct revenue from all Recreation programs shall not
fall below a 100% recovery of total direct costs.
3. Categories have been created for the Recreation programs in
order to evaluate which programs must cover total or partial
expenditures. These categories are:
A. Total Support
1. Sports
2. Dance and Fitness
B. Partial Support
1. Aquatics
2. Outdoor Recreation
3. Arts and Crafts
4. Special Interests
C. Minimal Support
1. Senior Citizens
2. Special Events
3. Therapeutics
4. Youth Centers
5. Northside Recreation
Q-35
Total revenue from fees and charges shall cover a minimum
of 80% of "Total " and "Partial " support program costs . The
difference between 80% and 100% will be supported by the
General Fund as well as for those programs requiring
minimal support.
4. Revenue generated from rentals , concessions, and other
miscellaneous sources shall be considered an equal
priority with class registrations when establishing fees
and charges .
5. The Recreation Division shall provide designated programs
for senior citizens and developmentally disabled persons
at 1/2 the established fee, and to low-income citizens at
1/3 the established fee.
6. The Recreation Divison shall charge rental for rooms ,
pool time, gym, ball field, and special equipment, as
specified in written policies.
7. An admission fee shall be charged at the Northside
Community Center for use of the weight room, locker room,
and gym, during drop-in hours .
8. Solicitation of funds through donations, fund raising
events , non-traditional sources , and various other needs
shall be encouraged by the Parks and Recreation Advisory
Board and City Council .
Funding collected for , any special purpose shall be
earmarked for that purpose, and the utilization of
foundations for the furtherance of this goal shall
likewise be encouraged.
YIII.7. PARKLAND FUND POLICIES
The Parkland Fund was created by City Council in September 1969.
The Parkland Fund receives a fee from developers for each new
dwelling unit established within the city limits. Parkland fees
are to be used primarily for the acquisition and development of
neighborhood parks in those areas of the city that are contributing
to the Parkland Fund. The acquisition and development of
neighborhood parkland in growth areas is of critical concern . It
is a goal that each square mile of the city should be served by a —
neighborhood park of five to 30 acres in size.
A. FEES
1. An average neighborhood park is generally 12 acres in size,
and serves the residential development within one square
mile. Parkland Fees are computed using an established base
rate formula (established in 1980) which projects the average
number of acres of parkland per square mile, multiplied by
the average cost per acre of parkland acquisition and
development, divided by the average number of dwelling units
Q-36
per square mile. The 1980 base rate fee is to be adjusted
periodically as future acquisition and construction costs
change.
2. Outside of the city limits, but within the Urban Growth Area,
Larimer County collects a park fee equivalent to the Parkland
Fee collected by the City. According to the UGA
Intergovernmental Agreement, the County holds these fees
until the City annexes the land, at which time the City will
receive the funding collected.
3. In lieu of paying fees, developers may negotiate for the
dedication of lands to be used for park purposes. This could
include construction of a neighborhood park site to meet City
specifications, as well . In the event that a satisfactory
agreement is reached for the dedication of such lands, the
price established for such lands may be credited against the
regular fees to be charged. A developer may also be allowed
to construct and maintain a public neighborhood park as a
part of a master plan (PUD) approved by the City, which could
eliminate all or a portion of Parkland Fees. The park would
then serve in-lieu of a City owned and maintained facility,
but still fully accessible to the general public at all
times.
B. ACQUISITION OF PARKLANDS
1. The acquisition of neighborhood parklands within the City and
Urban Growth Area is a critical concern. To best serve the
citizens of Fort Collins, and to maximize financial
efficiency, the following general guidelines are set forth as
acquisition standards for neighborhood park sites:
a. Each square mile of the city should be served by a
neighborhood park of five to 30 acres.
b. Neighborhood parks should be centrally or strategically
located within the square mile.
c. Park acreage should not necessarily include detention
areas or drainage paths. _
d. Parks should be served on at least two sides by local
streets.
e. Pedestrian and bicycle access to park sites should be
provided through residential areas.
f. List all easements and other restrictions on the property.
g. Secure a comparable cost or appraisal of the site.
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h. Review location criteria such as topography, vegetation,
water amenities, views, etc.
i . Have a title search done and get the warranty deed.
j . Have a legal description drawn and verify this with a
field survey.
2. If a park site appears favorable, the City pursues the
acquisition. The site is reviewed by the Parks and
Recreation Board, and brought to the City Council for final
determination.
3. As it is a land acquisition matter, there is generally no
public discussion until a proposed acquisition reaches the
Parks and Recreation Board or City Council . Park site
acquisitions are not labeled by name and specific location as
it would severely limit the ability of the City to
realistically and fairly negotiate for land purchases. A
proportionate amount of funding should be earmarked annually
for acquisitions, with sites to be determined. It is a goal
to acquire at least one to two neighborhood park site(s)
annually especially during high growth years. In some years ,
it is posssible that no new site may be acquired.
4. Neighborhood park sites can be purchased several years before
anticipated development of said sites. In certain approved
instances, becoming more speculative in land purchases may be
appropriate. A Neighborhood park site could be acquired with
the intention of buying more acreage than needed, then
selling off a portion of the site and using the proceeds for
the development of that park site.
C. DEVELOPMENT OF PARKLANDS
1. The Community Development Department will annually provide to
Parks and Recreation a count on the number of new permitted
residential units which have paid Parkland Fees in each
section of the City where an undeveloped park site exists.
a. Housing counts will be taken as of January 1 of each year,
and the data will be incorporated into the budgetary
process for the next fiscal year.
b. The section with the highest number of new units built
since 1969 is rated as the first priority for park
construction. The section with the next highest number of
units built is rated as second priority, and so on.
c. Park sites will be annually prioritized and projected for
construction in future budget years. However, actual
development of parks in those later years are subject to
change because the annual housing unit counts will
objectively determine the fastest growing areas and those
that have experienced setbacks.
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y. _
d. Park site development within a section will not begin
until residential construction has reached at least 30 to
40 percent.
2. It is a goal to develop at least one neighborhood park site
annually. Other factors which can influence when a
neighborhood park site is developed include some of the
following:
a. Economic conditions and funding ability.
b. The professional judgment, experience and expertise of
the Parks and Recreation Department.
c. Input and requests from the Parks and Recreation Board,
citizens and/or developers.
d. When the City Council and/or the City Manager designate a
site for development.
e. It is also preferable to have the streets and utilities of
the residential area installed prior to park development.
This allows park contractors easier access and use of
utilities for park construction.
D. FUND USAGE
1. Funds generated from the Parkland Fee shall be primarily
spent for the acquisition and development of neighborhood
parks in those areas of the city that are contributing to the
Parkland Fund. Alternate methods and sources of financing
other than Parkland Fee funds will be used for the
acquisition and development of community parks, parks outside
of growth areas, medians , streetscapes and frontage road
development, major park renovation work, detention ponds,
etc. , unless they are serving as neighborhood parks.
a. Expenditures from the Parkland Fund may be made in
community parks for partial acquisition and development to
the extent that such expenditures accommodate the
neighborhood park elements of a community park. A
community park will in fact also serve the local area
neighbors as their neighborhood park. Those residents —
within one square mile of the community park have either
already contributed or will contribute fees to the
Parkland Fund.
b. Expenditures from the Parkland Fund may be made in
detention pond parks and other special use areas for
development to the extent that these sites specifically
serve as neighbhorhood parks.
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2. All monies in the Parkland Fund shall be expended solely for
the purposes of acquiring, developing and administering
parklands in such a manner as shall be directed by the City
Council of the City of Fort Collins . Expenditures for the
acquisition and development of parklands may include
purchases or new or replacement park site equipment,
plantings, and administration costs relating to Parkland
Fund management.
E. COST OF GROWTH
The cost of growth because of parkland acquisitions and
developments is hereby recognized, and will be reflected in the
operation and maintenance budgets to adequately maintain such
Parklands to acceptable standards.
Passed and adopted at a regular meeting of the City Council held this
1st day of October, A.D. 1985. n
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ATTEST-,
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City Clerk (13