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HomeMy WebLinkAboutStudy Session Agenda Packet 10-02-17 STUDY SESSION AGENDA CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO 7500 W. 29th Ave. Wheat Ridge CO October 2, 2017 6:30 p.m. Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Call Sara Spaulding, Public Information Officer 303-235-2877 at least one week in advance of a meeting if you are interested in participating and need inclusion assistance. Citizen Comment on Agenda Items 1. Staff Report(s) 2. Presentation of 2018 Proposed Budget http://www.ci.wheatridge.co.us/DocumentCenter/View/27307 3. Elected Officials’ Report(s) ADJOURNMENT .. ~ ~ .. " .,, Cityof ~WheatJ34_dge ~Oma OF THE CrJY MANAGER Memorandum TO: Mayor and City Council Patrick Goll; City Manag~ FROM: DATE: September 27th (for Study Session of October znd) SUBJECT: Proposed 2018 City Budget On October 2, 2017, I will present the proposed 2018 City Budget. This memorandum includes my Budget Message along with an outline of the public engagement steps that have occurred to date. Citizen Budget Engagement Tools: Three citizen engagement tools were utilized in the budget process in order to provide citizen engagement and transparency of budget information: 1) second year of the Citizen Outside Agency Review Committee and 2) second year of the Balancing Act online budget engagement tool and 3) year three of Socrata online budget tool (in the process of being updated with 2018 data). A copy of the recommendations from the Outside Agency Review Committee were included with the Proposed Budget Books provided to City Council. Prior Action: • JulylO, 2017-first public meeting to provide opportunity for citizens to comment on the budget • August 14, 2017 -second public meeting to provide opportunity for citizens to comment on the budget • September 15, 2017 -proposed 2018 budget books were distributed to City Council and made available for public review. A hard copy was provided to the City Clerk's Office for public review. • September 18, 2017 -proposed 2018 budget made available online for the public to review. Future Action: • October 2, 2017 -City Manager presents balanced budget to City Council during the Study Session • October 9, 2017 -as required by Section 10. 7 of the Wheat Ridge City Charter a public hearing will be conducted to provide an additional opportunity for citizens to comment on the proposed budget prior to its adoption~ Notification of the public hearing will be made on the City Website, City Facebook page, and in the Wheat Ridge Transcript. • October 9, 2017 -as required by Section 10.9 of the Wheat Ridge City Charter requires that the budget be adopted by resolution on or before the final day (December 15, 2018) established by state statute for the certification of the next year's tax levy to the county. Proposed 2018 City Budget September 27, 2017 (for Study Session of October 2nd) Page2 The proposed 2018 budget includes the following: • A balanced General Fund budget in the amount of $34,037,540 • An unrestricted fund balance of$6,621,461 or 19.5% of expenditures (17 % minimum reserve level) • A General Fund transfer of $2,200,000 to the Capital Improvement Program (CIP) • An 8% increase in the General Fund budget compared to the adjusted 2017 Budget o This increase is primarily due to the $1.5 million budgeted in 2018 to repair City property damaged by the May gth hailstorm • Proposed CIP Fund in the amount of $6,425,000 • Proposed 2E Fund in the amount of$17,425,300 o Debt service in the amount of$3,505,300 • Special Revenue Funds in the amount of $7 ,506,687 • Proposed budget (all funds) in the amount of $65,394,527 Staff is looking for City Council direction and consensus on the proposed budget. If you have any questions prior to the October 2nd Study Session, please do not hesitate to let me know. The 2018 proposed budget message, found on page 11 -22 of the budget book, is included below: OVERALL SUMMARY The total 2018 Proposed Budget including the General Fund, the CIP Fund, 8 special revenue funds and the 2E Investing 4 the Future Fund is $65,394,527. The Budget is based on projected revenues of $48,386,184. The beginning fund balance for 2018 is projected at $47,133,393, which brings the total available funds to $95,519,577. This will provide for a projected ending fund balance of $30,125,050. General Fund $34,037,540 Capital Improvement Program (CIP) Fund $6,425,000 Special Revenue Funds $7,506,687 2E Investing 4 the Future Fund $17,425,300 Total $65,394,527 General Fund General Fund revenue is projected at $34,037,540, which is a 6% decrease compared to 2017 estimated revenues but a 2.3% increase compared to what was originally projected for 2017. The 6% decrease is primarily due to the increased building permit fee, building use tax and auto use tax revenue received in 2017 because of the May 8 hailstorm. In addition, the beginning fund balance for 2018 is projected at $10,795,244, which brings the total available funds for the General Fund to $44,832,784. General Fund expenditures total $34,037,540 excluding transfers. General Fund expenditures represent an 8% increase compared to the adjusted 2017 Budget. The 8% increase is primarily due to $1.5 million budgeted in 2018 to repair City property damaged by the May 8 hailstorm. Proposed 2018 City Budget September 27, 2017 (for Study Session of October 2nd) Page3 All $1.5 million, minus a $10,000 deductible, has been covered by the City's property/casualty insurance policy. The ending fund balance for the General Fund is projected at $8,595,244, of which $6,621,461 (19 .5% of operating expenditures) is considered unrestricted. The City's financial policies require that the City maintain a minimum unrestricted fund balance of at least two months or approximately 17% of its General Fund operating ~~penditures, as recommended by the Government Finance Officers Association. Capital Improvement Program (CIP) Fund CIP Fund revenue is projected at $5,456,000 ($2,200,000 transferred from the General Fund) which is a 45% increase compared to the 2017 estimated revenue. In addition, the beginning fund balance for 2018 is projected at $978,376, which brings the total available funds for the CIP Fund to $6,434,376. CIP expenditures total $6,425,000, which is an 8% increase, compared to the adjusted 2017 Budget and a 70% increase compared to the estimated 2017 Budget. This will provide for a projected ending fund balance of $9,376. The proposed 2018 CIP budget includes the following projects: • $2.0 million for completion of Wadsworth Environmental Assessment, identification of right-of-way and initiation of final design • $2.0 million for street preventative maintenance • $1.57 million for 29th Avenue and Fenton Street intersection improvements • $260,000 for drainage improvements at 26th and Fenton • $150,000 for municipal facility security upgrades • $145,000 for a new traffic signal at 32nd and Xenon • $100,000 for improvements to the Police Department evidence storage facility • $50,000 for citywide ADA infrastructure improvements • $50,000 for aerial photography and GIS updates • $25,000 for Clear Creek Master Plan update • $25,000 for completion of the environmental assessment re-evaluation for the Clear Creek Crossing project • $25,000 for gateway signage program • $15,000 for Neighborhood Traffic Management program • $10,000 for Maple Grove Reservoir emergency planning Special Revenue Fund -Open Space Open Space revenue is projected at $3,682,000 which is an 88% increase compared to the 2017 estimated revenue. The large increase is primarily due to a significant increase in development- related park fees and the sale of open space property at 38th and Kipling. The beginning fund balance for 2018 is projected at $327,547, which brings the total available funds for the Open Space Fund to $4,009,547. Open Space projects for 2018 include: • Renovation of Prospect Park -Phase 2 • Reconstruction of Anderson Park • Renovation of Stites Park Proposed 2018 City Budget September 27, 2017 (for Study Session of October 2nd) Page4 • Update to Open Space Management Plan • Repairs to Clear Creek Trail • Installation of a kiosk in Lewis Meadows • Contribution to the Jefferson County Open Space River Corridor project Funding is also appropriated for seven Parks maintenance workers and the Forestry and Open Space Supervisor. Open Space expenditures total $3,448,758, which is a 3% decrease compared to the adjusted 2017 Budget and a 1 % increase compared to the estimated 2017 Budget. This will provide for a projected ending fund balance of$439,529, of which $121,260 is restricted to park improvements at the Wheat Ridge Ward station area. The future five-year Open Space Budget proposes the continuation of miscellaneous open space improvements, parks maintenance projects, trail replacement and repair, Anderson Park improvements, improvements to the new public works and parks operations facility, master plan updates and funding for Parks employees. Special Revenue Fund -Conservation Trust Conservation Trust revenue is projected at $320,500, which is equal to the 2017 estimated revenue. In addition, the beginning fund balance for 2018 is projected at $479,979, which brings the total available funds for the Conservation Trust Fund to $800,479. Conservation Trust projects for 2018 include: • Renovation of Anderson Building • Recreation Center maintenance projects • New playground in Boyd's Crossing Park • Reconstruction of Apel Bacher tennis court and crack sealing of Panorama Creek tennis court Conservation Trust expenditures total $750,000, which is a 17% increase compared to the adjusted 2017 Budget and a 263% increase compared to the estimated 2017 Budget. This will provide for a projected ending fund balance of$50,479. The future Five-Year Conservation Trust Budget proposes to provide funds for the completion of the Anderson Building renovation, Recreation Center maintenance needs, parks maintenance projects, resurfacing of tennis/basketball courts, playground replacement, and facility improvements to the Parks Maintenance Shops. Special Revenue Fund -Recreation Center Recreation Center Operations revenue for 2017 is projected at $2,272,366, which is an increase of 4.5%, compared to the 2017 estimated revenue. In addition, the beginning fund balance for 2018 is projected at $480,000, which brings the total available funds for the Recreation Center Operations Fund to $2, 752,368. Recreation Center expenditures total $2,535,675, which is a 5% increase compared to the adjusted 2016 Budget and a 4% increase compared to the estimated 2017 Budget. This will provide for a projected ending fund balance of$216,693. Proposed 2018 City Budget September 27, 2017 (for Study Session of October 2nd) Pages Special Revenue Funds -Other Several other Special Revenue Funds are also included in this Budget to track revenues and expenditures that are designated by law to be used for specific purposes or are used to simplify the budgeting process. Those funds include Public Art, Police Investigation, Municipal Court, Equipment Replacement, and Crime Prevention/Code Enforcement. Detailed revenue and expenditure information for these funds can be found in the Special Revenue Funds and the Line Item Accounts sections of the Budget. 2E Investing 4 the Future Fund The 2E Investing 4 the Future Fund (Fund 31) was created in 2017 as a special fund to account for the 2E bond and debt activity. 2018 revenues from the 0.5% sales and use tax and interest are projected at $4,166,308. In addition, the beginning fund balance for 2018 is projected at $33,156,876, which brings the total available funds for the 2E Fund to $37,323,184. 2E Fund expenditures total $17,425,300, of which $13,920,000 is for 2E project expenditures and $3,505,300 is for debt service on the 2E bonds. This will provide for a projected ending fund balance of$19,897,884. 2E Investing 4 the Future projects for 2018 include: • Final construction of the hook ramps on 1-70 for the Clear Creek Crossing development • Construction plans and ROW acquisition for potential City constructed projects at the Gold Line Station (exact projects have not yet been identified) • Completion of the Wadsworth Boulevard Environmental Assessment • Design development and construction drawings for Anderson Building, bathhouse and park renovation SHORT-TERM FISCAL CHALLENGES/OPPORTUNITIES Sales Tax Sales tax, the City's largest revenue source, for 2018 is projected to increase by 1.8% compared to 2017 estimated revenue. Sales tax revenue is projected to decrease by 2.5% compared to what was originally budgeted in the 2017 budget. Overall, total General Fund revenues for 2018 are projected to decrease by 6% compared to 2017 estimated revenue and increase by 2.3% compared to what was originally budgeted in the 2017 budget. The closure of the W almart store is the primary reason for the minimal increase projected for sales tax in 2018. May 8th Hailstorm On May 8, 2017, the City of Wheat Ridge and the surrounding area experienced an extremely damaging hailstorm. In 2016, the Building Division processed a total of 1,597 building permits, of which 231 were for residential re-roofs. Conservatively, staff is estimating approximately 6,000 residential re-roof permits will be processed in 2017 and an additional 2,000 in 2018. To respond to the increased volume of permit processing and inspections, the City augmented staff resources through the City's contract inspection firm, Charles Abbott and Associates (CAA). CAA is providing an additional 4-6 inspectors and 2-4 permit technicians on a daily basis. A supplemental budget appropriation was approved by City Council in the amount of $841,330 on August 14th to pay for these contract services. Staff estimates an additional $200,000 will be required for building division contract services in 2018. Proposed 2018 City Budget September 27, 2017 (for Study Session of October 2nd) Page6 The hailstorm will also increase revenues above what was originally projected for the 2017 budget. Building use tax, auto use tax, building permit fees and contractor license fees are all projected to generate approximately $2.4 million in revenue to the City in 2017 and approximately $800,000 in 2018. Walmart Closure The proposed 2018 Budget reflects the closure of W almart on July 7, 2017, and the associated loss in sales tax revenue. As a result of the closure, City Departments identified over $500,000 in discretionary spending that was cut from the 2017 Budget. This revenue impact is reflected in the 2017 revenue estimates and the 2018 revenue projections. Regency Centers, the owners of the Applewood Shopping Center where Walmart was located, are actively pursuing retail tenants to backfill the W almart space; however, the proposed 2018 Budget does not include any revenues from potential new tenants. Communications Center Regionalization The City of Wheat Ridge currently operates a Communication Center to receive and process 911 emergency and non-emergency calls for service for police, fire and emergency medical response. The adjusted 2017 Communications Center (204) budget is $847,528 plus $92,434 for medical benefits and $82,000 for information technology expenses for a total of $1,021,962. The City currently employees 13.0 FTE to operate the Center. Regionalization efforts are currently underway to establish the Jefferson County Communications Center Authority (JEFFCOM) for the purposes of creating a single public safety call-taking and dispatch center for a number of police and fire agencies in Jefferson County. The 2018 projected cost for Wheat Ridge to receive services through JEFFCOM is $644,894, a savings of $377,068 compared to providing those services locally in Wheat Ridge. In addition, if the Colorado Public Utilities Commission approves a request from the Jefferson County Emergency Communications Authority to increase the monthly emergency telephone charge from $0.70 to $1.20 per phone line, Wheat Ridge's annual cost to receive services through JEFFCOM will decrease to $447,337. This decision will be made in late September or early October 2017. For budgeting purposes, the 2018 budget assumes the Wheat Ridge Communication Center will dissolve on June 30, 2018, and those functions will be transferred to JEFFCOM. Therefore, the 2018 budget includes a Communications Center budget for 6-months in the amount of$393,208 plus $46,217 for medical benefits and $56,000 for information technology expenses for a total of $495,425. In addition, $322,447 is budgeted in the Police Department Administration (201) budget to pay JEFFCOM for the 6-month period of July 1st to December 31st. Redevelopment Projects Several commercial redevelopment projects across the City are projected to increase sales and use tax revenues in the next several years. The Comers at Wheat Ridge is currently under construction and the anchor tenant and other retail shops are expected to open after mid-year 2018. The 2018 Budget includes three months of revenues from this project in the amount of $215,500. The Applewood Shopping Center is actively revitalizing its Center with new retail tenants. A new Starbucks drive thru and a King Soopers filling station are scheduled to open at the end of Proposed 2018 City Budget September 27, 2017 (for Study Session of October 2nd) Page7 2017. The Center is in negotiation with Hacienda Colorado to locate a restaurant in the Center which will act as an anchor tenant and draw customers from around the Denver metro area. The Center is also actively negotiating with tenants to back-fill the Walmart site. No specific increases to revenues have been included in the proposed 2018 Budget because of these projects but additional revenues can be anticipated starting in 2019. The Clear Creek Crossing project is currently under review and the developer is actively marketing the site for potential tenants to include retail, residential, office, hospitality and entertainment. It is unknown at this time what the potential revenue generation will be from this development. However, it is expected to be lower than originally projected since W almart pulled out of the project. No specific increases to revenues have been included in the proposed 2018 budget for this project. If the project continues to progress on schedule, 2019 would be the first fiscal year the City may receive new revenue as a result of this project. WHEAT RIDGE 2035 VISION TOPICS AND SMART GOALS The Mayor, City Council and staff work together periodically to develop and update a strategic plan that includes a vision, goals and priorities. City Council met in the spring of2017 and developed an updated Vision 2035 to include Vision Topics and Smart Goals. Staff used the most current vision topics to guide the development and prioritize projects for the 2018 Budget. Vision Topics: 1. Wheat Ridge is an attractive and inviting City 2. Wheat Ridge is a community for families 3. Wheat Ridge has a choice of economically viable commercial areas 4. Wheat Ridge has diverse transportation 5. Wheat Ridge is committed to environmental stewardship 6. Wheat Ridge residents enjoy an active, healthy lifestyle 7. ,Wheat Ridge residents are proud of their hometown Council's Smart Goals are outlined in the Budget in Brief section of this document. The proposed 2018 Budget includes several priority expenditures that play an important role in helping the City achieve the strategic vision. Strategic Priorities: • Urban renewal funding for Renewal Wheat Ridge (RWR) projects $300,000 (105 to RWR) • Enhanced Sales Tax Incentive Program (ESTIP)!fax Increment Financing (TIF) $550,000 (105) • Ridge at 38 public events $140,000 (105 to Localworks) • Wheat Ridge Business District (WRBD) grant program $45,000 (105 to WRBD) • Live Local events $50,000 (105 to Localworks) • Building up Business Loan Program (BUBL) $25,000 (105 to Localworks) • 44th Avenue Corridor marketing efforts $7,500 (105) • 29th Avenue Marketplace marketing efforts $5,000 (105) • 38th Avenue marketing $30,000 (105 to Localworks) • Neighborhood Revitalization Strategy update $77,500 (106 and 105 to Localworks) • Kipling/1-70 Corridor planning effort $150,000 (121) Proposed 2018 City Budget September 27, 2017 (for Study Session of October 2nd) Page 8 • Wadsworth reconstruction project $2.45 million (CIP) • Clear Creek Crossing hook ramps $9.75 million (2E) • Gold Line station public infrastructure $2.0 million (2E) • Preventative street maintenance $2.0 million (CIP) • Prospect Park improvements $2.4 million (OS) • Anderson Park renovation $2.62 million (OS, CTF, 2E) • Recreation Center maintenance $115,000 (CTF) • Traffic Safety, Life Quality and Crime Reduction (TLC) Program $40,000 (105 to WR2020) • Home Investment Loan Program (HIP) $25,000 (105 to WR2020) • ADA improvements citywide $50,000 (CIP) • Large-item pickup program $5,000 (303) • New street sweeper $201,000 (303) • Historic building management and maintenance $78,699 (625) • Wheat Ridge 50th Anniversary planning $20,000 ( 102 and 105 to Local works) • Carnation Festival contribution $80,000 staff overtime $25,500 (102) • Citizen Survey $35,000 (111) • Citizen Academy $5,000 (111) In 2016 City Council appointed a Citizen Review Committee to make recommendations for contributions to outside agencies. Following are the Committee's recommendations for 2018: • Senior Resource Center (SRC) circulator bus $25,600 (102) • Arvada Food Bank $11,300 (102) • The Action Center $2,200 (102) • Audio Information Network $1,400 (102) • Court Appointed Special Advocates $2,900 (102) • Colorado Senior Connections $4,600 (102) • Family Tree $4,400 (102) • Friends of Paha $1,100 (102) • Institute for Environmental Solutions $1,600 (102) • Jefferson County Library Foundation $1,600 (102) • Wheat Ridge Community Foundation $7,100 (102) • Wheat Ridge Optimist Club $1,200 (102) • Wheat Ridge High School STEAM $17 ,200 (102) • Feed the Future Backpack Program $8,000 (102) • Regional Air Quality $2,600 (102) • Exempla Lutheran Leaves of Hope event $3,800 (102) • Jefferson Center for Mental Health $3,100 (102) • Wheat Ridge High School Farmers 5000 $2,500 (102) • Wheat Ridge Active Transportation Advisory Committee $1,100 (102) • Outdoor Lab Foundation $19,400 (102) Proposed 2018 City Budget September 27, 2017 (for Study Session of October 2nd) Page9 Priority Based Budgeting In 2017, the City embarked on year six of the Priority Based Budgeting (PBB) process. The City has received national recognition and interest from other local governments who are considering switching to a priority-driven budget. The City engaged the Center for Priority Based Budgeting in 2012 to facilitate the transition from a more traditional incremental budgeting process to a priority-driven budgeting process. The Center's mission is to "lead communities to fiscal health and wellness." Priority Based Budgeting is another tool that will allow the City's management team to improve the programs and services provided by aligning resource allocation with the results the City is working to achieve. The primary area that we continue to integrate into the budget process is the focus on budget variances. Budget variances generally occur because certain line items must be budgeted based on projected use such as staffing, fuel, and utilities. However, circumstances such as employee turnover, the weather or the economy dictate what those true expenditures will be on an annual basis. For example, if we experience an unusually bad winter or fuel prices skyrocket, mid-year supplemental budget appropriations may be required. In addition to continuing the variance exercise for development of the 2018 Budget, staff added a contingency reduction exercise. Included in the City Manager's Budget is a management contingency fund in the amount of$100,000. In the past, contingency funds have been budgeted for carrying out policy direction by City Council that may not be planned for at the time of budget development. An example of this would be engineering or design work required for a public project. Overall, for the 2018 Budget, departmental budget requests were reduced by approximately $657,000 in order to fund those expenses that were considered critical to meeting the City's defined results. Collectively, the variance and contingency fund tools have played an important role in the continued integration of a priority-driven budget system. This process has enabled staff to look at the budget data through a different lens. DEBT At the regular general election held on November 8, 2016, the electorate of the City approved ballot question 2E, which temporarily increased the sales and use tax levied by the City by one- half of one percent (3% to 3.5%) for up to 12 years. It also authorized the issuance of debt to finance City investment in public infrastructure to facilitate economic development opportunities. Sales and use tax revenue bonds were issued on May 2, 2017 to finance four specific City investments including Anderson Park, Wadsworth Boulevard, Wheat Ridge Ward Gold Line station development and the Clear Creek Crossing development. The par amount of the bond issue was $30,595,000 with a net premium of $2,687,079 for a total of $33,282,079. Of this amount $33 million was deposited into Fund 31 for the four specific City investments, $152,975 was allocated for the underwriter's discount and $129,104 for costs associated with the bond issue. The maximum repayment cost of the bonds will not exceed $38,500,000 and maximum annual repayment cost will not exceed $3,700,000. In the proposed budget, $3,505,300 is budgeted for the 2018 annual debt service. Ballot question 2E restricted the increase of taxes in the 2017 fiscal year to $3, 700,000 and by whatever additional amount is received for the 11 years thereafter. Due to an increase in use tax Proposed 2018 City Budget September 27, 2017 (for Study Session of October 2nd) Page 10 revenues from the May 8 hailstorm, staff estimates 2E revenues will total $3,895,627 in 2017, which is $195,672 more than allowed. If actual revenues are higher than the $3,700,000 restriction, staff will provide recommendations at a later date to City Council on how to refund the excess tax revenue to Wheat Ridge residents. Additional information about the 2E ballot question and Fund 31 can be found behind the 2E Fund tab in this notebook. Additionally, the City has the following long-term financial obligations: Renewal Wheat Ridge The City's Urban Renewal Authority (Renewal Wheat Ridge), is a component unit of the City. Renewal Wheat Ridge provided a loan in the amount of $2.455 million for the Kipling Ridge commercial center development at 38th and Kipling. The term of this loan expires in 2023 and will be paid from sales and property tax incremental revenue from the Kipling Ridge project. The balance of the loan as of December 31, 2017, will be $2.010 million. Community Solar Garden On March 23, 2015, the City entered into an agreement to purchase electric generating capacity in a solar garden. The agreement was funded on April 13, 2015, with a lease agreement for $800,000. The solar power capacity is recorded as capital assets in the amount of $776,628. A portion of the loan proceeds was used to pay issuance costs of$23,372. Annual payments of$80,167.08, including principal and interest accruing at 5.75%, are due through May 1, 2030. As of December 31, 2017, the City has a capital lease outstanding amount of $707,215. For its participation, the City receives energy credits from Xcel to be used to pay this lease and against energy consumption at various facilities. Fruitdale School Lofts In 2016, the City Council approved a loan in the amount of $2.585 million from General Fund reserves to the Fruitdale School Partners. The loan was for the redevelopment of the Fruitdale School property into a mix of 16 market-rate and income-restricted rental housing units. Fruitdale School Partners are scheduled to payback $1.9 million of the loan in 2018. The remaining $685,000 will be paid over a 40-year period and, until that time, will remain as a restricted balance in the General Fund reserves. COMPENSATION, BENEFITS AND STAFFING Personnel-related expenses account for the largest portion of the City's Budget; therefore, maintaining this investment is a high priority. In 2013, the City launched a new compensation plan for full-time/part-time benefited employees that is financially sustainable and is a plan that will help the City recruit and retain top talent. Additionally, the compensation plan is market- based and fully aligned with the Performance Management Project (PMP) that has culminated in the full implementation of a pay-for-performance system. The City's pay-for-performance model is consistent with the culture and commitment to A.C.T.I.O.N! -the City's core values of Accountability-Change -Teamwork-Integrity-Opportunity-Now! It is important for the City to reward employees who exemplify these core values and who help achieve the City's strategic results. The compensation plan consists of two sub plans 1) a pay-for-performance open range plan, which includes civilian and police sergeants and higher ranks, and 2) a sworn step plan, which includes police officer I and II positions. Employees will be eligible for a performance increase Proposed 2018 City Budget September 27, 2017 (for Study Session of October 2nd) Page 11 on January 1, 2018, based on how well they meet the core values and competencies of the PMP system. The pay-for-performance budget is determined on an annual basis according to what comparable organizations are providing and what the City can afford for that fiscal year. The City will conduct the next biennial market review in 2018. The proposed 2018 budget includes $450,000 in the Central Charges budget to fund performance increases for both sub plans. The updated plan is under development and will be included in the final budget document. The City continues to provide a competitive benefits package to employees that includes medical, dental, life and disability benefits. Throughout the year, staff works closely with the City's benefit broker, IMA, to ensure that the City is controlling benefit costs while still providing a competitive benefits package to its employees, which is a vital part of the City's total compensation approach to pay. The City currently provides Kaiser Permanente plans for employee medical benefits. Medical premiums will increase by only 2.6% for 2018. There are several key factors that play a role in calculating the City's health care premium renewal. The City's Wellness Program is a positive contributing factor to the minimal premium increase. Historically, the City's premium increases ranged from 10 -15%, which continues to be the market average. The City will continue to encourage enrollment and active participation in the Wellness Program. There will be no increases to the dental and minimal increases to life and short-term disability premiums in 2018. In 2018, the City will continue to offer the High Deductible Health Plan (HDHP) and the Deductible HMO (DHMO) added in 2017. The HDHP plan was added in 2013 and is a consumer model of health care paired with a Health Savings Account (HSA). The goal of the consumer-driven HDHP and DHMO is to encourage employees to manage costs through effective use of health care. The 2018 staffing level will increase by a net of 2.5 FTE's for a total of240.375 FTE's in all funds. General Fund 1.0 FfE Human Resources Technician -Administrative Services This position is currently a 30-hour/week temporary, benefited employee and the request is to change it to a full-time 40-hour/week permanent, benefited employee. The net impact is an increase of 1.0 FTE but with a minimal budget increase of approximately $1,500. The Human Resources Division is currently staffed with three human resources positions. Organizations in the Denver metro area, similar to the size of Wheat Ridge, are staffed with four to six human resources positions. Best practices in human resources management recommend that an organization should dedicate 1.26 human resources employees to every 100 employees in the organization. Based on the number of full-time, part-time and seasonal intermittent workers (approximately 400) the City currently employees, the Human Resources Division should have at least five positions to adequately support the organization. Proposed 2018 City Budget September 27, 2017 (for Study Session of October 2na) Page 12 1.0 FTE Buyer II -Administrative Services This position is currently a 0.5 FTE benefited Purchasing Technician and the request is to replace it with a 1.0 FTE benefited Buyer II. The net impact is an increase of0.5 FTE and a budget increase of approximately $30,000. All formal procurement work is currently the responsibility of the Purchasing and Contracting Agent, with task assistance provided by the Purchasing Technician. Even with the recent increase to purchasing and approval thresholds, the number of formal bids, RFP's and RFQ's performed by the City requires the Purchasing and Contracting Agent to commit to an inappropriate amount of overtime hours to complete the work. This increase in staffing will improve purchasing and contracting support to the City's internal and external customers, allow for more complete office coverage during the day and for vacations and other leave, and will allow the Purchasing Division to participate in regional purchasing organizations more fully. 0.5 FfE Pool Manager -Parks and Recreation This position is currently a 0.5 FTE benefited Pool Manager budgeted in the Recreation Center Fund. The request is to increase it to a 1.0 FTE benefited Pool Manager with the increase budgeted in the General Fund. The net impact is an increase of 0.5 FTE and a budget increase of approximately $32,000. This position is being requested to support the Department's goal to strengthen the organizational structure in the Aquatics Division, in addition to reducing overtime and extra hour costs that are currently necessary to operate the outdoor pool. This position will help maintain a safe aquatic facility by providing consistent leadership, while offering exceptional customer service to patrons. 0.5 FfE Recreation Leader -Parks and Recreation This position is currently a 0.5 FTE benefited Recreation Leader in the Athletics Division and performs additional duties on a temporary pay basis as a Sun Camp Therapeutic Recreation Leader, Therapeutic Recreation Leader, Sun Camp Specialist and Licensed Pre-school Specialist. The request is to increase this position to a 1.0 FTE benefited Recreation Leader. The net impact is an increase of 0.5 FTE and a budget increase of less than $1,000. This request strengthens the mission of the Parks and Recreation Department in providing exceptional programs that enhance opportunities for personal growth, well-being and healthy lifestyles. This request also supports the Department's goal of strengthening organizational structure and systems. Eliminated Positions: 0.5 FTE Purchasing Technician -Administrative Services This allocated FTE is requested to be replaced with a 1.0 FTE Buyer II. 13.0 FTE Communications Center positions will be eliminated when the Communications Center dissolves and is transferred to JEFFCOM. This transfer of employees to JEFFCOM is expected to occur sometime between January 1, 2018 and June 30, 2018. These FTEs are still included in the proposed 2018 Budget. Proposed 2018 City Budget September 27, 2017 (for Study Session of October 2nd) Page 13 Other Non-budgeted Position Requests Three other new positions have also been requested for 2018. However, the 2018 Budget would not have been balanced with the inclusion of these additional positions. It is recommended that these positions be approved if the Colorado Public Utilities Commission approves a request from the Jefferson County Emergency Communications Authority to increase the monthly emergency telephone charge from $0. 70 to $1.20 per phone line. If approved, Wheat Ridge's annual cost to receive services through JEFFCOM will decrease to $447,337, decreasing the General Fund budget by $197,557. The fee increase decision will be made in late September or early October 2017. These additional positions include: 1.0 FTE Police Officer II -Police Department On January 1, 2017, the Police Department implemented a patrol staffing plan to create a new overlapping shift, based on call for service data. This shift puts more police officers on duty during the peak hours of service. As a result, an additional sergeant position was created from an existing police officer position to provide additional supervision for this new shift. This requested position will replace the police officer position that was promoted to a sergeant. The net impact is an increase of 1.0 FTE and a budget increase of approximately $74,616. 1.0 FTE Records Management Specialist -Police Department When the Wheat Ridge Police Department Communications Center is dissolved and transferred to JEFFCOM, some duties performed by the Communications Center will still be required to be performed by Wheat Ridge staff. Some of those duties include coordination with the Colorado Crime Information Center (CCIC), call-handling for administrative issues and routing of non- emergency calls and CCIC and National Crime Information Center (NCIC) data entry. This position will provide the additional staffing in the Police Department Records Division to fulfill these duties. The net impact is an increase of 1.0 FTE and a budget increase of approximately $57,880. 1.0 FTE Maintenance Worker II-Public Works This position will assist in the ever-growing demand for Public Works services including citywide graffiti removal, asphalt patching, snow and ice control, street sweeping, storm sewer cleaning, traffic sign and signal repair and maintenance, maintenance and repair of City-owned bus benches and shelters and the increasing number of City-owned LED street and pedestrian lights, maintenance of bicycle lane pavement markings, placement of speed trailers, installation of street banners and assistance at public events and festivals. Most importantly, this position will provide an additional staff member for snow and ice events which will provide for a safer three, 8-hour shift crew rotation. The net impact is an increase of 1.0 FTE and a budget increase of approximately $48,390. In the back of the Staffing section of this book you will find a proposed Five-Year Staffing Plan for 2019 to 2023. Over the last decade we have done our best to provide a level of service expected by City Council and the community. The City has typically operated with a very lean staff; however, as community expectations change we must ensure the City has adequate staffing to meet those demands. This Plan will be evaluated annually to determine the most cost- effective way to continue providing exceptional customer service and quality programs.