City Works
3-31-16
Mike Beckstead
Big Picture
2013
2014
PLANNING
ACTIVITY
ELECTIONS
2015
2017
2018
2017
2018
ELECTIONS
On
Board
On
Board
Strategic
Plan
5 Yr. View
Strategic Plan
5 Yr. View
BFO
2015/2016
EXECUTION
ACTIVITY
2016
2013 Budget
2014 Budget
BFO Programs & Initiatives
BFO
2017-18
2015
2016
BFO Programs & Initiatives
BFO Programs & Initiatives
Cascade of Council Influence Starting with the On-Boarding Process
through Budgeting for Outcomes
2
Planning Calendar
Jan
Feb
Mar
Apr
May
Council
Elections
Council
Retreat
Jun
Jul
Aug
Sep
Nov
LT Financial Plan
Dept.
Inputs
Community Engagement
/ Citizen Survey
BFO Off Year Revision Process
Strategic Plan –
Core Team / ELT & Chairs
X
X
Even Years
Dec
Strategic Risk Assessment
Capital Improvement Plan
Odd Years
Oct
Public
Engagement
Revenue
Offer
Creation
BFO Teams
Public
Engagement
Revised
Revenue
BLT
Budget
Prep
Legend:
Inputs for the Strategic Plan
Strategic Planning Process
Budgeting for Outcomes
X = Council review of Strategic Plan at 2nd Work Session of the month
Council & Public Hearings
Strategic
Plan – Core
Team
Planning Framework
VOICE OF THE COMMUNITY
CITY COUNCIL &
BOARDS/ COMMISSIONS
City Plan
Area Master Plans
VISION
MISSION
Key
Outcomes
VALUES
Planning Efforts Align to “Key Outcome” Areas
Definitions
City Plan &
Area Master Plans
• Long term– 25 year
vision
• Based on citizen and staff
input
• Visionary in scope – over
125 objectives and 450
goals
• Guiding document of
intent with a broad focus
• Organized around 7
Outcome Areas
Strategic Plan
Budget
• Mid term– 5 years
• Short term– 2 years
• Based on an assessment
internal & external factors &
issues to be addressed to
achieve City & Master Plans
• Based on objectives & goals
from strategic plan
• Executable by defining
objectives & goals with
prescriptive solutions
• Grounded by Citizen Input
with a Balanced focus
across entire City
• Establish Metrics around
each Outcome
• Funded Plans & Priorities –
specific actions, initiatives &
programs with dates, owners
& support
• Accountability at the action &
initiative level
• Establish Metrics for each
Proposal/Offer
The Strategic Plan is Unique but Drives the Operating Plan….
The Strategic Plan Replaces BFO Purchasing Strategies…
Citizen Input &
Priorities
•
•
•
•
•
Squishy
Work
Environmental Scan
High Level Process – Strategic Planning
Citizen Survey
Focus Groups/Outreach
Boards & Commissions
City Plan
Citizen Priorities
Council Input &
Priorities
• Community Concerns
• Retreat Priorities
City & SA Input &
Priorities
•
•
•
•
•
Economics & Financials
Legislative
Emerging Trends / Issues
Organizational Issues
Area Master Plans
Strategic Work & Analysis:
• Implications, Conclusions, Challenges, Advantages, Priorities
• Define Issues to be addressed in Strategic Objectives
2104 Strategic Plan (5 Year Horizon):
• Outcomes – highest level focus areas
• Strategic Objectives – 8-12 per Outcome, helps achieve Outcome
• Linkage, Metrics & Targets – tied to Strategic Objectives
City Wide Strategic Plan Driven by Citizen,
Council and Staff Input & Priorities
Strategic Plan Summary - Objectives
Strategic Plan Sample – Outcome Overview
Strategic Plan Sample – Objectives Descriptions
Metric Hierarchy
STRATEGIC – Community Dashboard
•
•
•
Meaningful to citizens
Indicate performance to Outcomes
Phase I – 38 high level Metrics
BUSINESS PLAN – Strategy Maps
•
•
•
Aligned with programs, services & initiatives
funded in the budget
Indicate performance to strategic objectives
Phase II – several hundred metrics specific
to achieving Strategic Objectives
FOUNDATIONAL - Operational
•
Day to day, operational measures
http://www.fcgov.com/dashboard/
Community Dashboard
Community Dashboard
Strategy Maps - Sample
SO 1.1 – Improve access to a broad range of quality housing
that is safe, accessible and affordable
• CNL 3 – Affordable Housing Inventory
• CNL 4 – Fort Collins Housing Opportunity Index (HOI)
compared to western states region HOI
• CNL 39 – Winter Point in Time Count of Homeless Population
• CNL 57 - % of citizens responding very good/good to
Availability of affordable quality housing in FC
13
Strategy Maps - Sample
14
Budgeting for Outcomes (BFO) Process
City Strategic Plan
Defines Strategic
Objectives
BFO Teams:
• Use Strategic Plan to
Rank budget proposals
• Indicators, performance
measures
Departments:
• Create Offers (budget
requests) to achieve
Strategic Objectives
,
City Manager’s
Recommended Budget
Basket of programs and
services to be funded
BFO Teams:
Review and rank
Offers based on
Strategic Plan
Executive Team:
Fine tunes to develop
City Manager’s
Recommended Budget
City Council:
Reviews, changes &
adopts
FINAL BUDGET
2016 Council Budget Meetings
August 9th Work Session
• Budget Overview & Assumptions
September 13th Work Session
• Outcome Discussed - TBD
September 20rd Council Meeting
• Budget Public Hearing
September 27th Work Session
• Outcome Discussed - TBD
October 4th Council Meeting
• Budget Public Hearing
October 11th Work Session
• General Discussion – Final Direction
October 18th Council Meeting
• First Reading
November 1st Council Meeting
• Second Reading
Budget Overview
Adopted Budget
($ Millions)
2013
Operating
Debt
Capital
$
Total City Budget
$ 484.9
% Change from Prev Yr
Net City Budget
$ 387.9
% Change from Prev Yr
$
$ 112.9
22.7
17.0%
2015
$
$ 401.1
$ 436.9
22.6
-0.4%
$
$ 129.7
-3.8%
$ 428.0
-2.0%
$ 128.6
4.8%
$
26.6
477.8
21.4
36.2
$ 535.4
8.9%
9.7%
$
2016
10.4%
3.4%
$ 123.8
490.0
21.2
45.1
$ 556.3
3.9%
8.3%
$
451.9
20.7
31.4
$ 504.0
7.0%
% Change from Prev Yr
Keep Fort Collins Great
2014
11.8%
% Change from Prev Yr
General Fund
432.5
21.2
31.2
Proposed Budget
-0.8%
$
17.7%
2015 Growth Largely From One-Time Spending Projects….
Modest Increase in General Fund Spending
26.8
0.8%
Budget/Forecast Philosophy
• Sales Tax - Intentionally Forecast Conservatively
• Mid-year cuts would be necessary if tax is coming in under budget
• Sales Tax conservatively forecasted at 3% during recent growth years
• If we grow at 5%, additional $2M flows to fund balance – 60% GF
• Use Tax - 15’ & 16’ Budget Developed in early 2014
• Given volatility, conservatively forecasted at $18.7M and $17M
• <$14.5M used for on-going, >14.5M used for one-time only
• Revenue > Budget/Forecast goes to the fund balance for next
budget cycle
• Community priorities addressed using one-time revenue above forecast
The City Forecasts the Budget with 90% Confidence
to Avoid Disruption to Services Mid-Year
18
Sales Tax History
CAGR Since 2001
• Sales Tax w/o KFCG2.5%
• Sales Tax with KFCG
4.5%
• CPI & Population
4.1%
Sales Tax Revenues Largely Flat in 2000s……
Overall Growth of 4.5% Compares with CPI/Population of 4.1%
19
Use Tax History
Use Tax is Volatile and Challenging to Forecast….
Driven Largely by Development and Business Investment
20
Core and Dedicated Taxes
• 2015 Sales Tax Growth Forecast – 3.0%
• 2015 Use Tax Forecast - $18.7M
Actual Growth 4.9%
Actual $28.9M
• 2016 Sales Tax Growth Forecast – 4.5% (including Mall impact)
• 2016 Use Tax Forecast - $25M
21
Funding Opportunities Included in Budget
($ millions)
2015
On-Going One-Time
Funding Opportunities Included:
2014 Sales Tax Above Budget
2014 Use Tax Above Budget
North College Improvement Underspend
2016 Mall Sales Tax - Base & Dedicated
Mall Use Tax Paid in 2014 & 2015
Total Opportunities Included
$
2016
On-Going One-Time
2.7
6.7
2.9
2.0
2.7 $
2.5
12.1
$
2.0 $
Fund Balances reviewed with Council Finance June 2014
• All healthy at year end 2013 and forecast healthy year end 2014
• General Fund balance increased from $55.2M in 2012 to $60.7M in 2013
Unanticipated Revenue Included in Budget
-
Use of One-Time GF Reserves
Offers Funded with GF Reserves Within 2015/2016 Budget
•
•
•
•
•
•
$900k – Traffic calming, additional median & streetscape maintenance
$1.0M – Poudre river downtown project
$1.5M – Epic pool – bulk head replacement
$350k – Downtown restroom
$1.0M – Community recycle center
$1.8M – IT equipment replacement
Offers Funded or Assigned in 2015 or 2016 Revised Budget
•
•
•
•
•
•
•
$2.0M – Lincoln Corridor
$1.1M – Prospect/College intersection improvements
$600k – Self Insurance Fund
$1.0M – Benefits Fund
$1.0M – Assigned to support Police Regional Training Facility
$750k – Assigned to support downtown parking after community engagement
$1.5M – Assigned $500k each – bus replacement, irrigation replacement, police CAD
One-Time Revenue Used to Support Community Priorities
Within the Budget Process
23
Cost Assumptions
Budget Budget
2015
2016
General Inflation
2.0%
2.0%
Compensation
2.0%
2.0%
Benefits Cost
11.5%
3.7%
Pension Contributions
GERP Supplemental Contribution
No Change
$1.1M $1.1M
Moderate Inflation….Compensation Tied to Market….
Benefit Costs Increased Significantly in 2013 & 2014….
Wellness Clinic Should Reduce Benefit Cost Increase by 2016
Utility Rate Assumptions
Utility Rates:
Actual Actual Budget Budget
2013
2014
2015
2016
L&P *
4.3%
2.0%
2.0%
2.0%
Water **
4.0%
4.0%
0.0%
0.0%
Waste Water ***
0.0%
3.0%
3.0%
3.0%
Storm Water
0.0%
0.0%
0.0%
0.0%
2013 includes 3.83% PRPA & 0.50% Solar Program, 2014 1.5% PRPA & 0.50%
Solar Program, 2015-16 PRPA only
** 2013 includes 4% Fire Mitigation, 2014 includes 1% Fire Mitigation, 3% Capital
Improvements
*** 2014-16 Capital Improvements
*
L&P Driven by PRPA Pass Through
Waste Water Driven by Capital Improvements
2015 Allocations
Budget Themes
Overview:
City Fiscal Condition is Healthy: Appropriate fund balances, strong sales & use tax
KFCG: Fulfilling commitments to voters with KFCG revenues
Strategic Plan: Recommended Budget has strong linkages to the Strategic Plan
Themes:
Maintain High Quality Service & Stewardship of City Assets
•
•
•
•
Police Daytime Officers (3 FTE) & Alcohol and marijuana enforcement (2 FTE)
Police Training Facility Design
Asset management & Streets projects
Epic pool bulkheads, Lincoln Center asbestos removal
Budget Investment in Priority Areas
Neighborhood & Community Vitality
•
•
•
•
Additional affordable housing funding, Low Income Rebate Program
Lincoln Neighborhood Projects
Neighborhood Revitalization, Alley Maintenance
Broadband Strategic Plan
Environmental & Poudre River Restoration
•
•
•
•
Poudre River Restoration,
In stream Water Resource Specialist, NISP analysis
Integrated Recycling Facility & Green Built Environmental Coordinator
Climate Adaptation Planning & Air Quality Program support,
Transit & Mobility
•
•
•
•
Transit expanded hours and routes for full year & Improved Dial a Ride program,
New CSU funded student Transit services
Pedestrian sidewalks & College Avenue concrete work
Railroad Switching Operations Study
Budget Investment in Priority Areas
Sense of Place
•
•
•
•
Linden Design
Southeast Community Park
Old Town Square Renovation
Partnership for a New Downtown Plan Update
Infrastructure
•
•
•
•
Mulberry bridge
Vine & Lemay intersection design
Arthur Ditch master plan
Utility projects & project managers
Improved Internal Systems & Leveraging Resources
•
•
•
•
Safety Director & Occupational Health Professional
Business licensing software, IT infrastructure & HR Technology
Volunteer coordinator & Special Events coordinator
Lead 1.0 – Staff training and development
2015-16 Biennial Budget
Balanced and Fiscally Prudent Budget that Addresses
Multiple Community and Council Priorities
• Strengthens key services related to transportation, police, fire, parks
& recreation
• Enhances community priorities such as the environment, social
sustainability, transit, key city infrastructure and investment in
neighborhoods
• Continues the commitment made to voters who approved the Keep
Fort Collins Great sales tax increase in 2010
• Includes smart, long-term investments in the future including the
Poudre River, Southeast Community Park, and the Old Town Square
Renovation
Sales Tax Rate Comparison
Total Fort Collins Sales Tax Rate in the Bottom Third
$20
Mountain Parks
La Plata
Mountain View
Empire EA
Tri County
Gunnison Co
Sangre De Cristo
Black Hills
San Miguel
San Luis Valley
$40
Colorado Utilities with more than 7500 residential meters
Source: Colorado Association of Municipal Utilities, January 2014 data
Fort Collins Electric Rates Very Competitive
$60
Loveland
Fort Collins - Non Summer
Longmont
Fort Collins - Summer
Yampa Valley
Fountain
Xcel Energy
Holy Cross
Colorado Springs
Estes Park
Poudre Valley REA
United Power
Intermountain
Grand Valley
Delta-Montrose
$-
San Isabel
Electric Cost Comparison
Residential Electric Cost Comparison 700 kWh per Month
$140
$120
$100
$80
Cost of Government
Slight Downward Trend in the Price of Government