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