WORK SESSION ITEM City Council

Transcription

1 DATE: STAFF: January 22, 2019 Ginny Sawyer, Policy and Project Manager WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Keep Fort Collins Great Sunset. EXECUTIVE SUMMARY The purpose of this work session is to present Council with options for renewing/maintaining Keep Fort Collins Great revenue once the 0.85 tax sunsets on December 31, April 2019 is the anticipated election for a potential ballot related question to address funding needs. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Which revenue replacement option would Council like to move forward? 2. If Option B, what should be the length of the term? BACKGROUND / DISCUSSION Since 2011, KFCG has funded basic operations and enabled the City to both maintain a desired level of service and respond to community desires in an environment of population growth and annual inflation. The revenues from this tax are, by ballot, distributed to the following areas: 33% Street Maintenance and Repair 17% Other Transportation Needs 17% Police Services 11% Parks and Recreation 11% Other Community Priorities 11% Poudre Fire Authority Prior to the 2020 sunset of KFCG, and before building the budget, the City has been engaging the community in the decision of how to fund current service levels or make alternative plans for a lower service level at a lower cost. If the desire is to replace KFCG funds in full this can be achieved through a dedicated tax, an increase to the on-going base rate, or a combination of these. If City Council or the community decide NOT to replace KFCG revenue in full then reduced levels of service will need to be identified during the 2020 budget process for budgets. Options The following two options are being brought forward following a year-plus process that included Council Finance meetings, Council meetings, public meetings, and interaction with 18 City Boards.

2 January 22, 2019 Page 2 Option A - Increase the City base sales tax rate by 0.85%. This option would be a one-time vote to increase the base rate tax by 0.85%. This revenue would be general fund revenue and would be prioritized and allocated by Council and the community to address needs and desires through the budgeting process. Option B - Increase the City base sales tax rate by 0.60% and put forward a 0.25% renewable tax. This option includes a one-time vote to increase the base sales tax by 0.6% and a vote to consider a 0.25% dedicated, renewable tax. The 0.6% amount covers all but 0.01% of current level KFCG contributions for Police, Streets, Fire, and Parks and Recreation programs and services. To maintain existing KFCG programs and services, the remaining 0.25% tax would support Other Transportation and Sustainability programs and services. Ballot Language Both options would include ballot language to honor and continue to provide funding for Fire Protection and Emergency services at an 11% of 0.85% amount. Neither option would result in an increase to tax on groceries or prescription drugs. The current 0.85 tax exempts manufacturing and current ballot language will reflect the same exemption. Both options would trigger TABOR election notice requirements. Outreach Staff has been heavily engaged in public outreach on this topic. Specific outreach has included: Boards and Commissions Business/Community Groups Other Meetings Economic Advisory Commission Campus West Merchants Six open meetings (one in each Council district) Women s Commission UniverCity Connections Three open meetings for Golf Board Visit Fort Collins Board CityWork Alumni Parks and Recreation Board Zoning Board of Appeals Downtown Development Authority Air Quality Board Transportation Board Housing Catalyst Board Affordable Housing Board North Fort Collins Business Association Fort Collins Chamber Legislative Committee Downtown Business Association (Board & Members) Leadership Fort Collins Poudre Fire District Board Coloradoan Editorial Board January 10, 2019 open meeting

3 January 22, 2019 Page 3 Land Conservation and Stewardship Board Senior Advisory Board Youth Advisory Board CDBG Commission Commission on Disability Planning & Zoning Board Natural Resources Board Landmark Preservation Commission All of these events have included background information and varying data related to KFCG and City and financial information over time. The general questions put to these groups focused on do residents like the current level of service they experience, and do they feel the service is provided at the right price. Discussions also focus on the functions and specifics of base rate and dedicated taxes. In general, feedback highlights include: Overall support for replacing most if not all revenue. Some trepidation of losing dedicated funding for particular services but an understanding that greater flexibility in funding could be a benefit. Encouragement to keep the ballot and ballot language as simple as possible. Overall support for an increase to the base rate (particularly to cover police, streets, and fire.) City revenue and expense is a challenging conversation for the public to be able to provide specific revenue options. Majority like level of service with limited suggestions for where to reduce. Next Steps February 5 regular meeting- Last day to refer language for April 2019 election. ATTACHMENTS 1. January 2, 2019 Work Session Summary (PDF) 2. Description of Ballot Options A and B (PDF) 3. PowerPoint Presentation (PDF)

4 ATTACHMENT 1

5

6

7 DRILLING PLATFORMS - FUNDED OFFERS All KFCG OCP and OT goes away = $6.9M ongoing and $1.2M one-time as of 1/3/2019 entire offer is eliminated reduction amount funding for offer is reduced TARGET REDUCTION Rank Offer # - Offer Description FTE Offer Type Offer Total General Fund Ongoing General Fund 1-Time & Reserves KFCG Dedicated KFCG OCP KFCG OT Other Notes / Funds included in "Other" Ongoing One-Time Total NEIGHBORHOOD LIVABILITY & SOCIAL HEALTH Social Sustainability O 1,659,853 1,091, , Neighborhood Programs and Services O 1,683,469 1,503, ,000 80, Development Review Programs and Services O 6,743,330 5,634, ,000 1,007, K Trans, 202k Data & Comm Low Income, Senior and Disabled Rebate Programs O 269, , Graffiti Abatement Program O 144, , Larimer Humane Society Contract O 830, , , West Nile Virus Management Program O 359, , , , ENHANCEMENT: Poudre School District After-School Programs for Title E 75,000 75, , ,000 1 Schools ENHANCEMENT: Homelessness Initiatives E 294,000 50, , , , , ENHANCEMENT: Wireless Communications Plan E 50, , ,000 50, KFCG ENHANCEMENT: 1.0 FTE Contractual - Historic Preservation 1.00 E 89, ,564 89, ,564 Building Survey ENHANCEMENT: Human Services Program Grant Funding E 250, , , , , , KFCG ENHANCEMENT: West Nile Virus - Adult Mosquito Treatment E 20, , ,000 20,000 Efficacy Study KFCG ENHANCEMENT: Murphy Center Expansion & Housing Placement System E 88, , ,000 88, REDUCTION: -1.0 FTE - Planning Technician & Intern (vacant) (1.00) R (84,475) (84,475) 0 0 Excluded Reduction Offer REDUCTION: -1.0 FTE - Compliance Inspector (vacant) (1.00) R (64,505) (64,505) 0 0 Excluded Reduction Offer Funded Subtotal (1.00) $12,406,894 $9,401,683 $691,670 $1,305,773 $1,007,768 $673,645 $552,000 $1,225, ,645 CULTURE & RECREATION Recreation Activities and Programs O 5,036, ,007, ,029,322 Recreation Fund Recreation Administration and Communication Services O 1,213, , , ,674 Recreation Fund Museum of Discovery O 1,074, , ,535 Museum Fund Gardens on Spring Creek O 1,010, ,068 91, , Parks, Trails and Facility Grounds Maintenance O 7,846,699 6,192, , ,716 65, ,000 Con Trust Fund Ice & Aquatics O 2,718, , ,221,520 Recreation Fund Memorial Parks O 838, , , ,472 Cemeteries, Perpetual Care Cultural Facilities: Utilities and Custodial O 1,809,221 1,809, Cultural Services O 4,557,344 1,581, ,975,435 Cultural Svcs Parks Life Cycle Program O 550, , Urban Forest Management O 2,079,565 1,880, , Community Services Administration and Technology Support O 356, , , KFCG ENHANCEMENT: 2.0 FTE - Park Maintenance Workers and Maintenance of New Parks and Trails 2.00 E 172, , ENHANCEMENT: 4.5 FTE (Multiple positions) - Gardens on Spring Creek 4.50 E 233, , , ,985 Expanded Programming and Operations KFCG ENHANCEMENT: 0.25 FTE Increase - Adaptive Recreation Coordinator 0.25 E 14, , KFCG dedicated to Culture & Recreation ENHANCEMENT: Design and Cost Estimates for Irrigation System E 125, , Skipped due to needing ongoing Replacement at SouthRidge and City Park Nine ENHANCEMENT: Increased Contractual Pruning of Larger Trees E 200, , Skipped due to needing ongoing 1/9/2019 Page 1 of 5

8 DRILLING PLATFORMS - FUNDED OFFERS All KFCG OCP and OT goes away = $6.9M ongoing and $1.2M one-time as of 1/3/2019 entire offer is eliminated reduction amount funding for offer is reduced TARGET REDUCTION Rank Offer # - Offer Description FTE Offer Type Offer Total General Fund Ongoing General Fund 1-Time & Reserves KFCG Dedicated KFCG OCP KFCG OT Other Notes / Funds included in "Other" Ongoing One-Time Total ENHANCEMENT: Improving Playground Accessibility for All E 125, , Skipped due to needing ongoing ENHANCEMENT: Forestry Emerald Ash Borer Pre-Infestation Program E 50, , ,000 50, ENHANCEMENT: Poudre River Downtown Master Plan Reach 4 E 100, , , ,000 Feasibility Study REDUCTION: Forestry Tree Replacement Plantings E (75,000) (75,000) Excluded Reduction Offer REDUCTION: -1.0 FTE EPIC Ice Leader Position (1.00) E (60,177) (60,177) Excluded Reduction Offer REDUCTION: FTE Recreation Coordinator (0.50) E (46,150) (46,150) Excluded Reduction Offer Funded Subtotal 5.25 $30,699,807 $14,299,056 $974,747 $3,508,858 $315,545 $10,833,631 $233,985 $150,000 $383,985 ECONOMIC HEALTH Economic Health Office O 889, , , Downtown Landscaping and Maintenance O 1,984,941 1,662,961 38, ,980 55,000 GID 228, , Downtown General Improvement District (GID) Core Offer O 112, ,000 Dedicated funding source Dedicated funding ENHANCEMENT: Use Tax and Business Personal Property Tax Rebates E 401, , Dedicated funding source Dedicated funding Convention and Visitors Services O 1,098,916 1,098, Dedicated funding source Dedicated funding Northern Colorado Regional Airport Operational Support O 177, ,257 66, Contractual obligation ENHANCEMENT: 2.0 FTE - Park Technician and Park Maintenance 2.00 E 173, ,498 38, ,498 38, ,998 Worker with Expansion of Downtown Maintenance ENHANCEMENT: Metro District Support E 87,500 87, , , ENHANCEMENT: Tourism Master Plan, Visitor and Convention Services E 50, , ,000 50,000 Funded Subtotal 2.00 $4,975,168 $3,685,888 $593,900 $0 $528,380 $167,000 $451,978 $88,500 $540,478 ENVIRONMENTAL HEALTH Timberline Recycling Center O 291, , Natural Areas - Department Management O 1,118,975 53, ,065,600 Natural Areas Fund Environmental Services O 1,624,914 1,441, , , , Natural Areas - Planning and Special Projects O 1,721,256 30, ,770 1,591,901 Natural Areas Fund 129, , ENHANCEMENT: CAPITAL - Utilities: Environmental Learning Center Dam Rehabilitation - Design & Permitting E 500, , ,500 Utilities Funds / Skipped due to needing ongoing ENHANCEMENT: 2030 Climate Action and Energy Policy Update Optimizing Policy, Targets and Strategies E 40, , ,000 Utilities Funds / Skipped due to needing ongoing ENHANCEMENT: Encampment Cleaning Services E 206, ,000 26,000 80,000 Utilities Funds 126, , ENHANCEMENT: Utilities: Legal and Consulting Services for Response to the Northern Integrated Supply Project E 150,000 75, ,000 Utilities Funds 75,000 75, KFCG ENHANCEMENT: Road to Zero Waste Plan Update E 15, , ,000 15, ENHANCEMENT: Accelerated Municipal Electric Lawn and Garden Equipment Fund 20, , ,000 20,000 Funded Subtotal 0.00 $5,688,061 $1,600,759 $306,500 $0 $614,801 $3,166,001 $454,355 $161,000 $615,355 SAFE COMMUNITY 1/9/2019 Page 2 of 5

9 DRILLING PLATFORMS - FUNDED OFFERS All KFCG OCP and OT goes away = $6.9M ongoing and $1.2M one-time as of 1/3/2019 entire offer is eliminated reduction amount funding for offer is reduced TARGET REDUCTION Rank Offer # - Offer Description FTE Offer Type Offer Total General Fund Ongoing General Fund 1-Time & Reserves KFCG Dedicated KFCG OCP KFCG OT Other Notes / Funds included in "Other" Ongoing One-Time Total Police Patrol Services O 16,972,937 15,876,625 91,431 1,004, Police Information Services O 8,019,397 6,657, ,361, Municipal Court Services O 1,131,144 1,049,582 9, , Poudre Fire Operation, Maintenance & Capital (General Fund) O 26,715,616 26,715, KFCG: Poudre Fire Authority Operation, Maintenance & Capital O 2,972, ,972, City Manager's Office: Office of Emergency Management FTE plus 2.50 O 357, ,638 49, ,000 Utilities Funds 2.0 FTE transfer from PFA Police Facilities Utilities and Building Operations O 422, ,515 36, Police Office of the Chief and Administration O 3,525,894 3,049, , Police Criminal Investigations Division O 7,275,807 5,688,208 85,000 1,502, Police Colorado Regional Information Sharing Project [CRISP] O 494, , Police Vehicle Program O 2,087,704 1,784, , , Police Community and Special Services O 5,268,946 3,729,172 25,000 1,514, ENHANCEMENT: CAPITAL REPLACEMENT - Police Services Uninterrupted Power Supply (UPS) Replacement - Minor Capital Replacement E 148, , ENHANCEMENT: Police Radio Infrastructure - Northern Colorado E 58, , Regional Communication Network [NCRCN] ENHANCEMENT: Event Log and Performance Monitoring Tool E 139, , ,304 Utilities Funds ENHANCEMENT: 0.2 FTE for Municipal Court Judge and Security 0.20 E 93,268 93, Screeners ENHANCEMENT: Police School Resource Officers for Poudre School E 110, , District ENHANCEMENT: Police Reports Voice-to-Text Transcription E 88,836 (3,890) 92, ENHANCEMENT: 8.0 FTE - Police Services Resources for a Growing 8.00 E 391, , Community ENHANCEMENT: Debt Service for Police Regional Training Facility E 661, , , Police Red Light & Camera Radar Program E 599, , ENHANCEMENT: Cyber Security Training, Monitoring and Measuring E 70, , ,200 Utilities Funds ENHANCEMENT: 1.0 FTE (0.75 FTE Attorney, 0.25 FTE Legal 1.00 E 175, ,683 20, ,683 20, ,683 Assistant) - Municipal Court Prosecution Resources ENHANCEMENT: Municipal Prosecution Technology Tools E 24,755 24, , , ENHANCEMENT: Police Camera Radar/Red Light Addition E 575, , Dedicated funding source Dedicated funding KFCG ENHANCEMENT: 1.0 FTE - FC911 Emergency Services Dispatcher 1.00 E 74, , KFCG dedicated to Fire Funded Subtotal $78,455,458 $67,333,133 $1,730,522 $9,077,547 $71,752 $242,504 $0 $180,438 $20,000 $200,438 TRANSPORTATION Transportation Capital Expansion Fee Program O 3,303, , ,054,698 TCEF Traffic Operations O 3,324, ,151 2,979,928 Transportation Fund Traffic Operations Equipment O 238, , Engineering Core Offer O 2,142, , ,759,507 Transportation Fund Transportation Planning Services O 485, , ,877 Transportation Fund Transit Local Fixed Route Network O 17,837,194 7,341, , ,177,516 8,168,940 Transit Fund Dial-A-Ride Service O 2,088, , ,227,920 Transportation Fund 250, ,000 1/9/2019 Page 3 of 5

10 DRILLING PLATFORMS - FUNDED OFFERS All KFCG OCP and OT goes away = $6.9M ongoing and $1.2M one-time as of 1/3/2019 entire offer is eliminated reduction amount funding for offer is reduced TARGET REDUCTION Rank Offer # - Offer Description FTE Offer Type Offer Total General Fund Ongoing General Fund 1-Time & Reserves KFCG Dedicated KFCG OCP KFCG OT Other Notes / Funds included in "Other" Ongoing One-Time Total Essential Street Operations O 3,114, , ,132,963 1,541,106 Transportation Fund 1,573, ,573, Street Maintenance Program O 15,885, ,606, ,279,493 Transportation Fund / KFCG Dedicated to Street Maintenance FC Bikes O 435, ,251 83,243 Transportation Fund 352, , Safe Routes to School Program O 169, , , , School Crossing Guard Program O 94, , , , Streetscape Maintenance O 760, , , , Signal Pole Inspection and Maintenance O 100, , , , Neighborhood Traffic Mitigation Program O 150,000 88, ,419 0 General Fund portion is dedicated to 61, ,419 this program KFCG City Bridge Program O 1,700, ,700, KFCG Dedicated to Street Maintenance KFCG ENHANCEMENT: Railroad Crossing Maintenance E 125, , , , ENHANCEMENT: Electric Bus Pilot E 880, , ,000 Transit Fund / Grant related ENHANCEMENT: Transfort Capital Asset Repair and Replacement E 2,387, , ,243,000 Transit Fund / Grant related ENHANCEMENT: Debt Service for Prospect & I-25 Interchange E 1,377, , , ,000 Transportation Fund 1,158, ,158, ENHANCEMENT: 1.0 FTE - Park Technician and New Streetscapes 1.00 E 162, , , , KFCG ENHANCEMENT: Adaptive Signal System Expansion E 57, , ,581 57, REDUCTION: Contractual Median Maintenance R (25,000) (25,000) Excluded Reduction Offer Funded Subtotal 1.00 $56,794,984 $10,936,407 $981,655 $9,306,019 $4,840,191 $30,730,712 $0 $4,708,521 $157,581 $4,866,102 2,772, ,000 1,993,371 HIGH PERFORMING GOVERNMENT Information Technology Application Services O 3,304,825 2,022, ,282,496 Data & Comm Information Technology Infrastructure Services O 3,155,915 1,383, ,772,467 Data & Comm Information Technology Client Services O 1,594,117 1,132, ,659 Data & Comm Information Technology Infrastructure Equipment O 1,610, , ,000 30, ,751 Data & Comm Information Technology Administration Services O 524, , ,154 Data & Comm HR Core Services O 2,399,883 2,056, , Utilities: Customer Service & Administration - Customer Connections O 6,710,985 50, ,660,241 Utilities Programs and Services City Clerk Services O 807, , Elections O 318, , Communications and Public Involvement (CPIO) O 1,848,005 1,763, , City Manager's Office O 2,303,336 2,123,118 18, , Financial Programs and Services O 3,929,009 3,820, , PDT Administration O 1,252, , , General Legal Services O 2,637,059 2,242, ,019 Utilities City Council O 177, , , Sustainability Services Admin O 501, , , Citywide Volunteer Services Program O 186, , Facilities Operations O 9,639,547 9,526, ,317 Equipment Fund Special Event Coordinator O 132, , Required Building Modifications O 600, , Performance & Program Evaluation (P&PE) O 108, , , , FC Lean - City of Fort Collins Continuous Improvement Program O 93,081 93, , ,081 1/9/2019 Page 4 of 5

11 DRILLING PLATFORMS - FUNDED OFFERS All KFCG OCP and OT goes away = $6.9M ongoing and $1.2M one-time as of 1/3/2019 entire offer is eliminated reduction amount funding for offer is reduced TARGET REDUCTION Rank Offer # - Offer Description FTE Offer Type Offer Total General Fund Ongoing General Fund 1-Time & Reserves KFCG Dedicated KFCG OCP KFCG OT Other Notes / Funds included in "Other" Ongoing One-Time Total ENHANCEMENT: Fleet Vehicle and Equipment Replacements E 664, ,648 9, , ,800 Equipment Fund / Skipped due to needing ongoing ENHANCEMENT: Facility Major Maintenance E 400, , Skipped due to needing ongoing ENHANCEMENT: 0.0 Net FTE Contractual to Classified Conversion - E 7,621 7, $7k is noise on an $8M task Facilities Construction Project Manager ENHANCEMENT: Arc Flash Hazard Analysis E 70, , ,000 70, ENHANCEMENT: City Give Program 1.0 FTE Contractual (formerly City Fund Foundation) 1.00 E 146, , ENHANCEMENT: Video Production Assistance Programs - Fort Collins E 15, , ,000 15,000 Public Access Network (FC Public Media) REDUCTION: Stop Doing - City News Newsletter R (26,000) (26,000) Excluded Reduction Offer REDUCTION: Scheduled Computer Replacements R (125,000) 0 (125,000) Excluded Reduction Offer Funded Subtotal 1.00 $44,988,832 $29,231,551 $2,433,047 $39,310 $349,363 $3,185 $12,932,376 $201,204 $85,000 $286, ,204 85, TOTAL ALL OUTCOMES $3,185,614 $4,843,376 $6,904,126 $1,214,081 $8,118,207 1/9/2019 Page 5 of 5

12 ATTACHMENT 2 Option A Ballot Question Shall City of Fort Collins taxes be increased by an estimated [dollar amount] for the first full fiscal year (2021), and by whatever additional amounts are raised annually thereafter, by extending, without an expiration date, the City s current.85% sales and use tax set to expire December 31, 2020; with this tax not applying to items exempt from the City s sales and use tax under the City Code, such as food for home consumption and prescription drugs, and the use tax not applying to manufacturing equipment; with the revenue from it used for any public purpose, except 11% of revenues shall be used to fund fire protection and related services in the City through the Poudre Fire Authority or other means; and with all the tax revenues, and investment earnings thereon, collected, retained and spent as a voter-approved revenue change notwithstanding the spending and revenue limitations of Article X, Section 20 of the Colorado Constitution and any other law? Option B Ballot Question Shall City of Fort Collins taxes be increased by an estimated [dollar amount] for the first full fiscal year (2021), and by whatever additional amounts are raised annually thereafter, by extending the City s current.85% sales and use tax set to expire December 31, 2020; with.60% of the tax rate having no expiration date and its revenues used for any public purpose, except 15.6% of revenues shall be used to fund fire protection and related services in the City through the Poudre Fire Authority or other means; with the remaining.25% of the rate used for the City s sustainability and transportation programs and expiring [date]; with the sales and use tax not applying to items exempt from the City s sales and use tax under the City Code, such as food for home consumption and prescription drugs, and the use tax not applying to manufacturing equipment; and with all the tax revenues, and investment earnings thereon, collected, retained and spent as a voter-approved revenue change notwithstanding the spending and revenue limitations of Article X, Section 20 of the Colorado Constitution and any other law?

13 ATTACHMENT 3 Keep Fort Collins Great-2020 Sunset City Council Work Session January 22,

14 Direction Sought 1. Which revenue replacement option would Council like to move forward? 2. If Option B: What should be the length of the term? 2

15 Timeline Last Day to Refer Ballot language- February 5, 2019 Election-April 2,

16 KFCG Conversation November 2017 Council Finance Committee Council Finance Committee Council Work Session Council Regular Meeting January 2019 Council Work Session 4

17 KFCG Sunset Key Elements Council direction to date: No additional tax on groceries Don t increase total tax burden Maintain financial commitments to Poudre Fire Authority 5

18 Options: Same Revenue Option A: Increase the City base sales tax rate by 0.85%. One-time vote to increase the base rate tax by 0.85%. Revenue prioritized and allocated by Council through budgeting process. Option B: Increase the City base sales tax rate by 0.60% and put forward a 0.25% dedicated, renewable tax One-time vote to increase the base sales tax by 0.6% and consideration of a 0.25% dedicated tax. To maintain existing KFCG programs and services the 0.25% would support Other Transportation and Sustainability programs and services. 6

19 Ballot Language Basics Both options would include ballot language to honor and continue to provide funding for Fire Protection and Emergency services. Neither option would result in an increase to tax on groceries or prescription drugs. The current 0.85 tax exempts manufacturing and current ballot language will reflect the same exemption. Both options would trigger TABOR election notice requirements. 7

20 Outreach Feedback Overall support for replacing most if not all revenue. Some trepidation of losing dedicated funding for particular services but an understanding that greater flexibility in funding could be a benefit. Support for keeping ballot question as simple as possible. Overall support for an increase to the base rate (particularly to cover police, streets, and fire.) City revenue and expense is a challenging conversation for the public to be able to provide specific revenue options. Majority like level of service with limited suggestions for where to reduce. 8

21 Direction Sought 1. Which revenue replacement option would Council like to move forward? 2. If Option B: What should be the length of the term? 9