On Nov. 20, 2007, City Council approved (5-2) the adoption of the 2008-2009 Budget. Click here for full voting results.
On Sept. 4 City Manager Darin Atteberry presented his recommended 2008-2009 Budget to City Council. Highlights from the 2008-2009 Recommended Budget include:
maintains current service levels
gives higher priority to public safety
includes operation and maintenance for the new police building, new Northside Aztlan Center, and Spring Canyon Community Park
funds the local match for the mason Corridor
uses a limited amount of City reserve funds to meet a projected shortfall of revenue during the budget period
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The City has been faced with budget challenges since 2001. To address slower than anticipated revenue growth, the City used a combination of approaches:
Implemented approximately $5.9 million of budget reductions in 2003 and 2004 using an across the board approach to cuts
Suspended employee compensation increases for three years, excluding some Police positions
Used one-time reserve money to fill the budget gap.
In 2005, it became apparent that the City could no longer maintain the existing levels of service. Short term and long term needs and demands, coupled with declining resources, required a complete re-thinking and re-tooling of our budget preparation and process. The Budgeting for Outcomes (BFO) process was introduced.
BFO allocates dollars based on community priorities and results. It doesn’t simply increase last year’s spending or continue across the board cuts. Using this new process, the City made further cuts in the 2006-2007 Budget. Nearly 100 staff positions were eliminated, and among other things, Youth Activity Center funding was eliminated, neighborhood street sweeping was reduced, Parks maintenance was reduced, Dial-a-Ride service was reduced, Cable 14’s Showcase Fort Collins program was eliminated and the Human Rights and Education Office was eliminated.
The City has made across the board cuts in the past; however, this is not a sustainable approach and it would ultimately lead to mediocre services. Instead, BFO provides a clear and transparent way to evaluate the choices for which City services should be funded, and at what level they should be provided.
In 2006, the City faced a $5.8 Million revenue shortfall for the 2007 Budget. The City Council considered several methods for balancing the 2007 Budget. Alternatives included budget reductions such as eliminating further programs, adding both a Transportation Maintenance Fee and a Parks Maintenance Fee, increasing Electric Utility PILOTS, and seeking voter approval for Property or Sales Tax increases. City Council had elected to make some budget reductions and was near adoption of the Transportation and Parks Maintenance Fees totaling $3.4 million per year when voters approved the new Library District.
By eliminating City expenses for the Library, City Council was able to avoid implementing the two new fees and avoided additional budget cuts that would have been required to balance the 2007 budget.
The Mason Corridor project provides the City with an opportunity to leverage more than $62 million of grant money.
When the concept of the Mason Corridor was first introduced to the community, the project focused mainly on transportation. Today, however, the Mason Corridor project is much more than just a transportation initiative. It focuses on economic development and redevelopment of businesses along the corridor. The Mason Corridor has the potential to link the major economic hubs of Fort Collins via trails, transit, and road.
For an investment of $2.5 million, the City of Fort Collins has the opportunity to receive nearly $54 million in federal grants and $8 million in state funding.
In 2005, City Council adopted an economic vision: a healthy economy reflecting the values of our unique community in a changing world. The City used this vision to create economic strategies and actions including:
Cluster Development – In 2006 the City completed a target industry study that identified industry clusters that have the greatest potential for success and could contribute most significantly to the Fort Collins economy. Five clusters were identified: Bioscience, Clean Energy, Chip Design, Software, and Uniquely Fort Collins. With support from the City, four of the five clusters have organized into cohesive groups that are implementing strategies to strengthen their respective industries in Fort Collins.
Community Branding Project – the City of Fort Collins in partnership with fellow community organizations, commissioned a branding study to determine Fort Collins’ core identity and unique selling points. The City is currently using the new brand to develop business recruitment materials, to attract visitors to the area, and to encourage residents to support local businesses.
Focus on Primary Employment – The City continues to focus on growing and attracting business that provide primary employment, or companies who have more than 50% of their revenues come from outside the region.
Support Retail when Appropriate
Front Range Village – this multi-faceted retail development broke ground in 2006 and will ultimately house a Super Target and Lowes. The City partnered with developers to provide the needed infrastructure to move forward.
Foothills Mall Urban Renewal Authority – Earlier this year, Council declared a URA for the Foothills Mall paving the way for redevelopment of the area.
The implementation of Budgeting for Outcomes helped the City identify community priorities and efficiencies, and funded those services accordingly.
City services are divided into key results, or desired community outcomes. Every service within the key result is then ranked according to community priorities. Services are then funded according to priority until available funds are spent. Therefore, increasing services in one area would mean that the City would need to cut services in another. Simply put, Police, Fire, and Transportation funding needs compete with other City services.
Furthermore, both Police and Fire services are funded exclusively through the general tax resources. There is not a dedicated funding source to support them. These dollars are used to fund a wide variety of City services from safety to parks, neighborhood services to environmental programs; General Fund dollars are limited and many services compete for dollars from this fund. Again, to allocate more dollars to Police and Fire, the City would have to cut services from another area.
The old Police building was outdated and too small for our current Police Force; if we were to allocate money to hire new officers, we simply would not have the space to house them. Further, the new Police Building will actually increase the efficiency of our Police Department by providing modern forensic labs, improved communication technology, and other tools to help keep our community safe. The building is also a long-term investment in our community as it is designed to meet department and community needs for at least the next 30 years.
Also, the new police building is a capital expense, debt financed over many years through Certificates of Participation. To use this funding method, the dollars must be used specifically for construction of the police building and cannot be used to hire new officers or other operational needs.
