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HomeMy WebLinkAboutStudy Session Agenda Packet 08-06-2018 STUDY SESSION AGENDA CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO 7500 W. 29th Ave. Wheat Ridge CO August 6, 2018 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. Action Center Update 2. Localworks Budget Presentation 3. Body Worn Camera Grant Update 4. 2018 Budget Update 5. Broadband and TABOR Excess Revenue Ballot Questions 6. Staff Report(s) 7. Elected Officials’ Report(s) ADJOURNMENT Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager DATE: July 25, 2018 (for August 6, 2018 Study Session) SUBJECT: The Action Center Update ISSUE: Since 1968, The Action Center has helped hundreds of thousands of people in Jefferson County facing difficulties with issues related to hunger, homelessness and financial stability. The Center’s mission is to provide an immediate response to basic human needs and promote pathways to self-sufficiency. The Center has recently started a six-month campaign to raise $1.0 million to address a shortfall in meeting current financial needs. Pam Brier, Executive Director, and board members from the Center will provide further details to City Council at the August 6 study session in regard to the fundraising campaign. BACKGROUND: The Action Center has had a very good track record for many years as a nonprofit organization with a high level of privately funded support. The Executive Director and Board members have presented the following reasons for their current financial condition: • A recent capital campaign may have deterred attention from fundraising for ongoing operations. • The former Executive Director left and there was a vacancy for several months before Ms. Brier was hired and assumed leadership of the organization in June. • Development efforts associated with the former Executive Director’s personal attention contributed to the decline in contributed income. • In addition to the vacancy of the Executive Director, the former Development Director left as well and was vacant for four months leaving two key leadership positions vacant. • As a result of these conditions The Action Center depleted their cash reserves and now have a $1 million deficit. The Action Center presents their current request as a “one-time” ask based on the following actions that have been implemented: • The key leadership positions of Executive Director and Development Director have been filled; the new Development Director will begin her service next week. • The Executive Director and Board have restructured services by reducing expenditures approximately 20% from $4.9 million to $3.2 million which is consistent with their historical fundraising performance and therefore they believe is sustainable. • The service restructure included closing the 22-bed family shelter which provided “wrap around” supportive services to help families transition to permanent housing and employment and was very expensive to operate. • The strategy associated with the current campaign is to offset the cash loss and build an approximate two-month reserve. • Additional fundraising implemented by the new Development Director will be implemented to increase the two-month reserve. Thus far, The Action Center has generated a $50,000 grant from Jefferson County authorized by a unanimous vote by the Board of County Commissioners. The Commissioners have also reserved an additional $200,000 as a match to funds that would be generated through contributions from the cities. Therefore, the current campaign and ask of the cities is very important to The Action Center. In addition, the Jefferson County Economic Development Corporation has initiated a campaign to generate contributions of $200,000 from local businesses. ATTACHMENTS: 1. Take Action Now Presentation, The Action Center Take Action Now ATTACHMENT 1 Our Need •We have a $1 Million shortfall in meeting our current financial needs. •We have cut important programs, including our family shelter, to address an immediate cash flow problem. •We have begun a six-month campaign to raise $1 Million to get us back on track. •We are a healthy organization providing a necessary function for the community. •We need help to regain our footing while we reestablish our management team and return to more solid financial planning. What Caused This Situation •Since repurposing our facilities in 2015, we have experienced 7% growth in demand for services. We have been trying to meet that demand. •We made changes to control costs, but we poorly implemented our donor cultivation program, so revenues fell below expectations. •Delays in government grants have stalled some streams of funding, and recent changes in tax laws may be hindering donations. •All that, and we had an unforeseen change in staff leadership in early 2018, losing our most capable fundraiser. •We estimate revenues will underrun expenses by about $500,000 in FY 2018, even after recent emergency cuts, including the shelter program. •Thus, by the end of this summer, we will exhaust our line of credit unless we take action to cover the revenue shortfall. •In addition, in 2015 we exhausted the $1 million cash reserves in place prior to the capital campaign (undertaken to repurpose our facilities). •Restoring half that amount will give us the ability to meet future cash timing issues and unforeseen challenges. What We Do Is Important Intervention Address acute needs, including food, clothing, rent, utilities, and shelter. Prevention Prevent crisis conditions by alleviating difficult choices involving school supplies, Santa Shop, and Thanksgiving food. Connection Assist individuals in breaking the cycle of poverty through community partnerships. Examples include workforce development, education, and health care. Our Impact in 2017 Our Strengths •50-year-old 501(c)(3) organization •Colorado Enterprise Zone status •Highest Charity Navigator ratings •90% or higher asset conversion •325-member Self-Sufficiency Society (multi-year committed donors) contributing about $375,000/year •Beautiful Junk sale contributing about $80,000/year •Broad donor base •45-member staff with an array of skills, including social work and counseling Our Equity Position •Net worth exceeds $5.1 Million •Current Assets exceed $1.1 Million •Current Liabilities are low ($112,000) •In the last three fiscal years, revenues exceeded expenses by 5% •We have over $1 Million in donor pledges on our books Our Get-Well Plan •The Board of Directors has adopted a two-phase approach. •In the next six months, we seek a cash infusion of $1 Million over and above the current rate of donations and pledges. •In the next three years, beginning now, we are returning to our proven method of sustainable long-term fundraising. •Our new Executive Director, Pam Brier, joined us this month. She has a proven record in management and fundraising for non-profits. •We are rebuilding our development staff. •We enlisted the aid of a cadre of past board members with proven financial experience. •We have returned to balanced budgeting at a sustainable revenue level for FY 2019. What You Can Do •We seek one-time cash gifts, over and above commitments already made. •We know the size of such gifts will vary by donor. •This table provides an example of gift sizes and numbers that would achieve our six-month $1 Million goal. •We ask for your thoughtful consideration. We perform a unique and vital service for our community and we need your help to continue to do so. Lead Gifts Number Subtotal Jefferson County 1 $200,000 Cities 4 $200,000 Foundations 4 $200,000 Business Community 4 $200,000 Major Gifts Number Subtotal $20,000 4 $80,000 $10,000 8 $80,000 Community Gifts Number Subtotal $1,000 20 $20,000 <$1,000 many $20,000 Total =$1,000,000 Questions? Changes in Expenses and Revenues 2015 Expenses 1 2018 Expenses 1 $3,078,500 $3,300,900 2015 Revenues 2 2018 Revenues 2 $3,418,500 $2,744,200 1)Cash Expenses (excl. depreciation, bad debt) 2)Total Revenue, including pledges (not cash) 2018 amounts are projections based on actual results the first 9 months of the fiscal year Our Mission The Action Center’s mission is to provide an immediate response to basic human needs and promote pathways to self-sufficiency. Since 1968, The Action Center has helped hundreds of thousands of people in Jefferson County facing difficulties with issues related to hunger, homelessness, and financial instability. Our History •Founded in 1968, The Action Center worked out of churches throughout the county, serving approximately 70 families a month. •As demand grew, so did space constraints. In1973, The Action Center purchased its first building from Lowry Air Force Base with Green Stamps. •By 1992 the organization was serving 40 families a day. To meet these needs The Action Center purchased and renovated the old Lakewood Post Office. •After outgrowing the Post Office building, the organization launched a capital campaign to buy and renovate a Program Services Building, which opened in 2015. Localworks 2019 Budget Request Page 1 City Budget Considerations for Localworks – 2019 Budget Thank you for the continued partnership of the City of Wheat Ridge in advancing Wheat Ridge as a vibrant and sustainable community. The five-year goals of the City of Wheat Ridge align well with many areas of Localworks’ mission and strategic plan. In 2019, we request funding for specific programs that aid us in leveraging community volunteers, local business support and our professional expertise to achieve goals for our organizations. Core Localworks Programs – $217,500 $80,000 – Localworks Building Up Business Loans (BUBL). These low-interest loans continue to support property improvements to commercial properties throughout the City of Wheat Ridge. These investments are leveraged by private dollars, equity from the property owner and other program dollars, such as the Wheat Ridge Business District Revitalization Incentive Program for commercial property applicants. Note: Localworks proposes to suspend focus on its Home Investment Loan Program (HIP) until the completion of the NRS Reaffirmation. City Vision Topic 4; Goal 2: Provide support to existing commercial areas Loan Administration 3,500 Marketing 1,500 Business and Home Loans 75,000 Overhead (100% in-kind) 0 $40,000 – Live Local Wheat Ridge events and program support for Localworks Active, Harvest, and community building events. The Live Local Wheat Ridge program continues to connect residents to one another and to local businesses to build a stronger community. City Vision Topic 3; Goal 2: Facilitate neighbor-to-neighbor relations City Vision Topic 8: Wheat Ridge residents enjoy an active, healthy lifestyle Program and Volunteer Management 20,000 Event Costs 7,500 Printed Materials 4,500 Ads, refreshments, supplies, other costs 5,000 Overhead (65% in-kind) 3,000 $40,000 – Community Outreach and Education – leadership capacity building and academies. Localworks added 20 more graduates to its Wheaties Academy alumni in 2018, who we intend to keep engaged via Localworks’ committees and programming such as Pints & Policy, Partners in Progress, and the NRS Reaffirmation. Via this involvement, we aim to identify and develop leaders working together to further the mission of Localworks to advance Wheat Ridge as a vibrant and sustainable community. City Vision Topic 3; Goal 1: Set a clear policy to achieve diverse housing options City Vision Topic 7; Goals 2 and 3 Localworks 2019 Budget Request Page 2 Program and Volunteer Management 22,500 Facilitation, speakers, training 7,500 Materials 2,500 Rentals, refreshments, other costs 5,000 Overhead (71% in-kind) 2,500 $22,500 – Community Marketing and Positioning Tours – Mid Century and Modern Tour, Welcome to Wheat Ridge Tour, Explore Wheat Ridge Tour. This includes time and preparation for outreach meetings to target audiences to showcase what is happening in the Wheat Ridge community. City Vision Topic 4: Wheat Ridge has a choice of economically viable commercial areas City Vision Topic 7: Wheat Ridge residents are proud of their hometown Personnel and Volunteer Management 10,000 Event Costs 4,000 Printed Materials 4,000 Refreshments, supplies, other costs 2,000 Overhead (46% in-kind) 2,500 $30,000 – TLC Wheat Ridge – Continue to implement a small grant program for block improvements and clean ups in continued partnership with the WRPD and to areas in the City as targeted by WRPD. We will build upon the success of adding recycling to the trash collection and explore including options for electronics recycling and hazardous waste pick up. City Vision Topic 1; Goal 4: Expand proactive code enforcement City Vision Topic 3; Goal 2: Facilitate neighbor-to-neighbor relations Personnel and Volunteer Management 10,000 Event & grant costs 17,000 Printed Materials, supplies, other costs 3,000 Overhead (100% in-kind) 0 $5,000 – Facility rental for Localworks programs like Live Local specific events: Fitness in the Park events at city parks, community input meetings (at Active Adult or WR Rec Center), meetings at park shelters, Wheaties Academy and possibly a few LL, TLC, Activate 38, or RA38 meetings where a larger facility is needed. Strategic Plan Program Investments and City Priority Support – $103,750 $30,000 – HEAL and Active Living Coalition and Plan Support – Localworks has been awarded a two- year Active Living Neighborhood Grant from Kaiser Permanente. The grant focuses on improving infrastructure west of Kipling on 38th Avenue and extending back to the surrounding neighborhoods. The goal is to reduce barriers to walking, biking and wheelchair rolling as forms of commuting and transportation to nearby amenities such as schools, parks, shopping areas and Wheat Ridge Recreation Center. Several local organizations, including the City of Wheat Ridge and the HEAL Committee, are Localworks 2019 Budget Request Page 3 working as partners to implement our Active Living Plan in 2019-2020. We are asking the City to continue to invest $30,000 in 2019 help fund this collaborative work. This investment helps us leverage additional funding over the two-year grant period to elevate the execution of the project. City Vision Topic 8: Wheat Ridge residents enjoy an active, healthy lifestyle City Vision Topic 5: Wheat Ridge has diverse transportation $13,750 – Neighborhood Revitalization Strategy Reaffirmation Process – The City of Wheat Ridge commissioned the update of several economic and community profile factors as reported in the Neighborhood Revitalization Strategy (NRS) in 2005. City staff leadership indicated interest in a community engagement process to get input from community members on what parts of the NRS still reflect the vision for the community and if there are any parts that are no longer applicable or do not fit the community vision. Localworks, as the nonprofit partner created by the NRS, would like to offer our services to share the story of the NRS and accomplishments to date, conduct community surveying, partner with councilmembers in conducting district meetings gathering information and conducting focus groups with neighbors and businesses resulting in a final report on community affirmations and suggested changes in the vision for Wheat Ridge as articulated by the NRS. This work will begin in July of 2018 and is due to be completed in July of 2019. City Strategic Priority: Update the Neighborhood Revitalization Strategy Personnel and Volunteer Management 8,000 Printed Materials, design and mailing costs 4,000 Ads, refreshments, supplies, other costs 1,750 Overhead (100% in-kind) 0 $50,000 – Community Engagement and Communication – We help position Wheat Ridge as a community of choice and provide support for City of Wheat Ridge priorities like Neighborhood Identification and Improvement. Localworks will continue to place additional emphasis on engaging the community and communicating results. In particular, our event postcards have been well received in the community and plan to continue this method of promotion in 2019. In addition, our newly launched Community Engagement Committee is focused on outreach and relationship building with residents, property owners, business owners, community organizations, business organizations and the surrounding communities. The goal is to collaborate with ambassadors of Localworks to engage and retain members, volunteers, sponsors and partnerships to advance our mission. We will place added focus on these initiatives in 2019, including the introduction of a tiered membership program. City Strategic Priority: Update the Neighborhood Revitalization Strategy Personnel and Volunteer Management 15,500 Printed Materials, design and mailing costs 25,000 Ads, refreshments, supplies, other costs 5,000 Overhead (57% in-kind) 4,500 Localworks 2019 Budget Request Page 4 $10,000 – 50th Anniversary of the City of Wheat Ridge Event and Program Planning. In 2019 the City of Wheat Ridge will celebrate 50 years since incorporation. It is an important time to mark the history and accomplishments of the City of Wheat Ridge while looking forward to the next 50 years. City Vision Topic 7: Wheat Ridge Residents are proud of their hometown Planning for 2019 Events, Gala, Programs 10,000 Overhead (100% in-kind) 0 Ridge at 38 Events – $160,000 Over 19,000 people have attended our events on Ridge at 38 in the past twelve months. All the events have been growing and evolving to meet economic development goals. The recent Ridge at 38 Criterium had its third year with the growing Brewfest. In 2018 we were proud to host the State Championship for the second time. We saw over 6,500 people attend and enjoy the community spirit as our main street was flowing with people. This growth has been positive for businesses and sales tax revenue but also comes with additional costs. In 2016 we reached the limits of what our Wheat Ridge Police Department can provide for the Criterium and started to supplement with private security. As this event and others grow we have additional security and barricading costs as well as communication costs like the variable message boards along the street. In addition, the WRPD has found its in-kind staffing to be stretched, so we are budgeting for temporary staffing to help with intersection control and other roles. The community and business feedback has been overwhelmingly positive. These events continue to help define the Ridge at 38 and bring people out to celebrate what makes Wheat Ridge unique. Sales tax collections are up in the 38th Avenue main street corridor and businesses report increased sales from events. Based on feedback from the event partners, volunteers, and attendees, we are asking for increased support in 2019 to accommodate the continued growth and success of this important community development programming. We will also continue to find ways to reduce costs as well as secure sponsors who are attracted to the Ridge at 38 brand and complement it. City Vision Topic 1: Wheat Ridge is an attractive and inviting city City Vision Topic 3; Goal 2: Facilitate neighbor-to-neighbor relations City Vision Topic 4; Goal 2: Provide support to existing commercial areas City Vision Topic 7: Wheat Ridge Residents are proud of their hometown Event Total Event Cost Request to City Criterium and Brewfest 71,000 61,000 Friday Night Live 25,000 20,000 RidgeFest 43,000 38,000 Trunk or Treat 8,000 7,000 Holiday Celebration 28,000 25,000 Overhead (75% in-kind) 40,000 9,000 *TOTAL 215,000 160,000 *Localworks will aim to increase its sponsor support of these events, to accommodate for the difference. Localworks 2019 Budget Request Page 5 Ridge at 38 – $83,000 We will continue to provide staffing for Ridge at 38 Leadership Committee priorities and staff their committees. The Ridge at 38 has been covered in The Denver Post, 5280 Magazine, Westword, The Denver Business Journal, radio and other local and online publications. City Vision Topic 4; Goal 2: Provide support to existing commercial areas Banners and Lights 25,000 Business outreach and Leadership Committee 15,000 Marketing materials and plan implementation 30,000 Website, app, social media, online ads 10,000 Overhead (84% in-kind) 3,000 If all requests were fully funded, the total is $564,250. Localworks has over 200 active volunteers, over 1,900 members and produces more than 80 events a year. Trends across events include an increase in attendance. We see increased sponsor interest and with our additional event track record and more time dedicated to development, we plan to see increases in event income. While the first several years of events are a bigger investment, with ongoing stewardship we hope to see steady progress. In-kind support assumptions: • City staff time for assistance and coordination on media, RA38 events, economic development activities and community education. (as currently provided, as needed) • City staff time to put up and take down banners along RA38 and banner arm repair in public works budget • City staff time to assist with RA38 events (day of volunteers needed for set up and tear down, including trash and picnic tables, for Criterium and RidgeFest, Holiday Celebration is as budgeted by Parks and Rec already) police presence needed at Criterium, RidgeFest, Trunk or Treat and Holiday Celebration • City staff time to assist with the creation of maps (GIS) as needed for programs • RA38 banner fees waived Event permit fees waived • Inclusion of Localworks information in City economic development advertising with the West Chamber (Best In Business, Wellness Living) and Applewood Business Association • Inclusion in Channel 8 videography and programming • Professional Services for signage guidelines for the RA38 District in community development budget • Speed and traffic counts along west 38th Avenue. Collaboration and coordination of staff in the Activate 38: West of Kipling pedestrian, bike and wheelchair access improvements project. Localworks 2019 Budget Request Page 6 Footnote: We would like to specifically express support for the Public Works request for variable message boards. These are very useful communication devices for transportation projects, but also for transportation impacts related to large events like the ones on Ridge at 38, races, and the Carnation Festival. We believe this investment helps with an informed citizenry and safer streets. 01-105 Economic Development Program Budget Account Detailed Explanation 2014 Adopted 2015 Adopted 2016 Adopted 2017 Adopted 2018 Adopted 2018 Estimated 2019 Proposed Core Localworks Programs 721 Business and Home Loans 50,000 50,000 50,000 50,000 50,000 50,000 80,000 721 Live Local 35,000 40,000 50,000 50,000 50,000 35,000 40,000 721 Communications, Education, Outreach 20,000 20,000 35,000 35,000 40,000 40,000 40,000 721 Marketing/Positioning Tours 15,000 15,000 20,000 20,000 20,000 10,000 22,500 721 Block Improvement Program - TLC WR 15,000 35,000 40,000 40,000 40,000 30,000 30,000 721 Rental City Facilities 4,000 5,000 4,000 4,000 4,000 4,000 5,000 704 Economic and Business Development 0 12,000 0 0 0 0 0 Subtotal $139,000 $177,000 $199,000 $199,000 $204,000 $169,000 $217,500 Strategic Plan Program Investments and City Priority Support 721 HEAL and Active Living Coalition and Plan Suppor 0 0 0 20,000 30,000 30,000 30,000 721 NRS Reaffirmation 0 0 0 27,500 27,500 13,750 13,750 721 Community Engagment and Communications 0 0 25,000 30,000 30,000 30,000 50,000 721 Capacity Building and Accountability 0 0 0 3,500 3,500 0 0 704 Planning for 2019 50th Anniversary events/Gala 0 0 0 0 10,000 10,000 10,000 704 Photo Contest to generate images for 50th Ann.0 0 0 0 0 0 0 704 Illuminated prop 50 and campaign planning 0 0 0 0 0 0 0 Subtotal $0 $0 $25,000 $81,000 $101,000 $83,750 $103,750 Ridge at 38-Business Improvement District 704 BID matching funding 0 0 0 0 0 0 0 721 BID Feasibility Study 10,000 0 0 0 0 0 0 704 BID Project management 0 10,000 0 0 6,000 0 0 Subtotal $10,000 $10,000 $0 $0 $6,000 $0 $0 Ridge at 38 Events 710 Ridge at 38 Events 70,000 88,600 120,000 140,000 140,000 140,000 160,000 710 Ridge at 38 Map and Directory 7,000 0 0 0 0 0 0 710 Wheat Ridge Business District 45,000 45,000 0 0 0 0 0 Subtotal $122,000 $133,600 $120,000 $140,000 $140,000 $140,000 $160,000 Ridge at 38 Plan Implementation 721 38th Ave. Banners and Lights 25,000 15,000 25,000 25,000 25,000 25,000 25,000 721 38th Ave. Leadership Committee 18,000 17,500 12,000 12,000 12,000 12,000 18,000 721 38th Ave. Marketing Materials 25,000 20,000 30,000 30,000 30,000 30,000 30,000 721 38th Ave. Digital Media Support 10,000 7,500 10,000 10,000 10,000 10,000 10,000 721 Commerical Improvement Program 15,000 0 0 0 0 0 0 Subtotal $93,000 $60,000 $77,000 $77,000 $77,000 $77,000 $83,000 OVERALL TOTALS:$364,000 $380,600 $421,000 $497,000 $528,000 $469,750 $564,250 704 Contractual Services $0 $22,000 $0 $0 $16,000 $10,000 $10,000 710 Marketing and Sponsorships $122,000 $133,600 $120,000 $140,000 $140,000 $140,000 $160,000 721 NRS Implementation $242,000 $225,000 $301,000 $353,500 $372,000 $319,750 $394,250 Total $364,000 $380,600 $421,000 $493,500 $528,000 $469,750 $564,250 ATTACHMENT 1 Localworks Proposed Budget 2019 Summary of funding from above: Memorandum TO: Mayor Bud Starker and City Council FROM: Daniel Brennan, Chief of Police DATE: July 30, 2018 SUBJECT: Staff Report: Body-Worn Cameras The purpose of this staff report is to update City Council on the body-worn camera (BWC) grant. In October 2017, City Council directed the police department to accept federal grant funding and move forward with the implementation of a body-worn camera (BWC) program. A number of conditions were attached to the award by the Bureau of Justice Assistance (BJA), each of which was required prior to the release of federal funds: • Approval of department policy governing the use of BWC • Approval of the submitted budget narrative • A memorandum disclosing any pending applications • Attendance at a national and regional training conference • A current System for Award Management registration • A signed Memorandum Of Understanding (MOU) between the cities of Wheat Ridge, Golden, and the 1st Judicial District Attorney’s Office Since that time, police department personnel tasked with the implementation of this project have worked diligently to satisfy each of these requirements. All have been completed and approved by the BJA, with the exception of the signed MOU, the final item on the list. In addition, the police department has taken the following steps to prepare for the impending implementation of the BWC project: • An additional Records Management Specialist has been hired to alleviate the anticipated increased workload of managing digital images. • The assigned Program Manager and Records Management Specialist from both the Wheat Ridge and Golden police departments, as well as a representative from the District Attorney’s Office, attended a national Body-Worn Camera conference in Washington, D.C. • The Training and Technical Assistance group of the BJA traveled to the District Attorney’s Office and presented additional training on the implementation and management of BWC programs. Ongoing communications between the city Purchasing Department and Axon, the preferred distributor, have also taken place. Both the cities of Wheat Ridge and Golden are members of NPP.org, a nationwide government purchasing agency that compiles RFPs from prospective vendors. Axon currently has the award for governmental purchasing agreements for Body-Worn Staff Report Body Worn Cameras July 30, 2018 Page 2 of 2 Cameras, and it is anticipated that, upon the release of funds, the equipment may be purchased without further delay. I anticipate implementing the BWC program no later than the first quarter of 2019. Staff is in the process of developing a curriculum to train officers on the BWC policy, case law, Colorado Open Record Laws, and training on the use of the cameras, downloading and storing video, and requirements to access BWC video. DB Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager DATE: July 23, 2018 (for August 6, 2018 study session) SUBJECT: Budget Report for the Six Months Ending June 30, 2018 In this document we present the six month budget report based on revenues received and appropriations expended through June 30, 2018. The purpose of this report is to apprise the City’s policy makers and Department Directors of the current budgetary status. General Fund Revenue Analysis of Projected Revenue – Pro-Rated to Historic Average The City does not receive its revenue evenly throughout the year. In other words, we cannot simply divide total projected revenues for the year by 12 to determine what monthly revenues will be. Each revenue source is unique and is collected by the City on different timeframes. For example, the historic average percentage for sales tax revenues for the first six months of the budget year is 38.8%. This means that, on average, 38.8% of sales tax revenues are received during the first six months of the year and 61.2% are received during the second six months of the year. As an example from the table on the next page, multiply the historic average percentage for sales tax revenues (38.8%) by the 2018 Projected Revenue ($19,384,538) which gives you the Pro- Rated Revenues for January to June ($7,521,201) or what revenues should be coming in based on historic averages. Next, compare Pro-Rated Revenues with Actual Revenues for January to June ($7,418,001) to determine if the revenue source is over or under projections. In this example, sales tax revenues are $103,200 under pro-rated revenues or 99% of pro-rated revenues. A pro-rated revenues percentage at or above 100% means the revenues are being collected as projected or are exceeding projections. A pro-rated revenues percentage below 100% means that the revenues being collected are not meeting projections for the first six months of the budget year. 2018 Second Quarter Budget Report July 23, 2018 Page 2 Sales Tax $19,384,538 $7,521,201 $7,418,001 ($103,200)99% Other Taxes $3,906,132 $1,976,503 $1,736,938 ($239,565)88% Use Taxes $4,014,218 $1,601,673 $2,217,036 $615,363 138% Licenses $1,855,090 $806,964 $899,977 $93,013 112% Intergovernmental $1,786,551 $587,775 $803,456 $215,681 137% Services $1,325,309 $661,329 $844,295 $182,966 128% Fines & Forfeitures $719,400 $371,210 $168,306 ($202,904)45% Other $1,281,310 $530,462 $308,858 ($221,604)58% Total $34,272,548 $14,057,118 $14,396,867 $339,749 102% (Under) Over Pro-Rated Revenues % Pro-Rated Revenues Revenues 2018 Projected Revenue Pro-Rated Revenues Jan-June Actual Revenues Jan- June 2018 Projected Revenue: projected General Fund revenues for fiscal year 2017. Pro-Rated Revenues Jan-June: what collected revenues should be for the first six months based on the historic average of revenues collected for the first six months of the year. Historic averages: Sales Tax (38.8%); Other Taxes (50.6%); Use Taxes (39.9%); Licenses (43.5%); Intergovernmental (32.9%); Services (49.9%); Fines & Forfeitures (51.6%); Other (41.4%); Total (40.4%). Actual Revenues Jan-June: General Fund revenues received through June 30, 2018. (Under) Over Budget Pro-Rated Revenues: revenues under or over pro-rated revenues. % Pro-Rated Revenues: 100% indicates revenues are on schedule; < 100% indicates revenues are less than projected; > 100% indicates revenues are greater than projected. Overall, General Fund revenues are $339,749 over pro-rated revenues or 102% for the first six months of 2018. General Fund Expenditure Analysis of 2018 Adjusted Budget – Pro-Rated to Historic Averages General Fund expenditures can be analyzed in the same way as revenue; however, the lower the pro-rated expenditure percentage the better. Overall, General Fund expenditures are $2.4 million under pro-rated expenditures or 86% for the first six months of 2018. 2018 Second Quarter Budget Report July 23, 2018 Page 3 General Gov't $12,445,991 $7,305,797 $5,490,776 ($1,815,021)75% Community Dev $2,049,821 $959,316 $864,751 ($94,565)90% Police $10,508,106 $4,959,826 $5,070,099 $110,273 102% Public Works $4,900,655 $2,367,016 $2,320,931 ($46,085)98% Parks & Rec $5,237,481 $2,414,479 $1,816,965 ($597,514)75% Total $35,142,054 $18,006,434 $15,563,522 ($2,442,912)86% (Under) Over Pro-Rated Expenditures % Pro-Rated Expenditures Expenditures 2018 Adjusted Budget Pro-Rated Expenditures Jan-June Actual Expenditures Jan-June 2018 Adjusted Budget: 2018 budget as adopted by City Council with the addition of supplemental budget appropriations through June 30, 2018. Pro-Rated Expenditures Jan-June: what expenditures should be for the first six months based on the historic average of expenditures for the first six months of the year. Historic Averages: General Gov’t (58.7%); Community Dev (46.8%); Police (47.2%); Public Works (48.3%); Parks & Rec (46.1%); Total (49.9%). Actual Expenditures Jan-June: General Fund expenditures through June 30, 2018. (Under) Over Budget Pro-Rated Expenditures: expenditures under or over pro- rated expenditures. % Pro-Rated Expenditures: 100% indicates expenditures are on schedule; < 100% indicates expenditures are less than projected; > 100% indicates expenditures are greater than projected. General Gov’t: includes Legislative, City Manager’s Office/Economic Development, City Attorney, City Clerk’s Office, City Treasurer, Central Charges, Municipal Court and Administrative Services. General Fund Revenue Analysis – 2017 and 2018 Comparison Total General Fund revenues are up 4.4% ($601,981) for the first six months of 2018 compared to the same period in 2017. 2018 Second Quarter Budget Report July 23, 2018 Page 4 Sales Tax $7,561,323 $7,418,002 -1.9% Other Taxes $1,662,211 $1,736,938 4.5% Use Taxes $1,767,588 $2,217,036 25.4% Licenses $918,206 $899,977 -2.0% Intergovernmental $805,074 $803,458 -0.2% Services $613,902 $844,295 37.5% Fines & Forfeitures $285,956 $168,306 -41.1% Other $180,629 $308,858 71.0% Total $13,794,889 $14,396,870 4.4% Revenue 2017 6-Months 2018 6-Months Percentage Change $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 Sales Tax Other Taxes Use Taxes Licenses Intergovernmental Services Fines & Forfeitures Other 2017 2018  Total sales tax revenue is down compared to the same period last year experiencing a 1.9% decrease and is at 99% of pro-rated revenues. Walmart closed on July 7, 2017, which accounts for the decreased revenue in 2018. Factoring out the Walmart closure, sales tax revenue is up 5.8% compared to 2017.  Other tax revenue is up 4.5% primarily due to increases in property tax. Overall, other taxes are tracking lower than expected at 88% of pro-rated revenues primarily due to a decrease in lodgers’ tax revenue.  Use tax revenue is up approximately 25% primarily due to increases in general and building use tax from the continued growth in commercial and residential development and redevelopment. Total use tax revenue is at 138% of pro-rated revenues. 2018 Second Quarter Budget Report July 23, 2018 Page 5  License revenue is down 2%. Total license revenue is at 112% of pro-rated revenues.  Intergovernmental revenue is relatively flat. Total intergovernmental revenue is at 137% of pro-rated revenues.  Service revenue is up approximately 37% primarily due to plan review fees. Total service revenue is at 128% of pro-rated revenues.  Fines & Forfeitures revenue is down approximately 41% across a majority of municipal court fines but primarily for traffic fines due to an inconsistent availability of staffing for traffic enforcement. Total fines and forfeitures revenue is at 45% of pro-rated revenues.  Other revenue is up 71% primarily due to interest revenue because of the City Treasurer’s prudent investment strategies. Total other revenue is at 58% of pro-rated revenues primarily due to the timing of when insurance proceeds from the 2017 hailstorm will be received. Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager DATE: July 25, 2018 (for August 6, 2018 Study Session) SUBJECT: Draft Ballot Questions for Internet Services and TABOR Excess Revenues ISSUE: Consensus was reached by City Council at the July 16 and July 23 meetings to direct the City Manager and City Attorney to bring forth draft resolutions submitting ballot questions for the November 6, 2018 special municipal election to authorize the City to provide high speed internet services and to retain the excess revenues received in 2017 from the 2016 2E sales tax increase, respectively. Attached are draft resolutions for City Council consideration. Ballot language is due to Jefferson County by September 5. Both ballot questions are scheduled for final City Council consideration on August 13. HIGH SPEED INTERNET: In 2005, the Colorado General Assembly enacted Senate Bill 05-152 (SB 152), which prohibits local governments such as the City of Wheat Ridge from providing cable television services, telecommunication services, or high speed internet services (advanced services), either directly or indirectly, unless such services are authorized by the electorate. SB 152 has been interpreted by some as prohibiting local governments from providing a wide spectrum of services, including such things as internet service in city libraries, parks and community centers; leveraging government infrastructure and partnering with private businesses to provide affordable and high speed internet services throughout the community; and direct provision of broadband services by municipal government where needed. A voter approved exemption from SB 152 would restore local independence and the ability for the City to evaluate all possibilities for next generation broadband services in the City of Wheat Ridge. Since the passage of SB 152, voters in 92 towns and cities and 23 counties have overwhelmingly approved measures to allow their local government to decide whether to offer broadband services to their residents. TABOR EXCESS REVENUE: The “underestimate clause” is a provision of the Taxpayer’s Bill of Rights (TABOR) that states if a new tax brings in more revenue in its first year than projected in an election notice, the taxing entity must refund the excess money and change the rate of the tax to match the actual revenue amount. A government may seek voter approval to keep the excess revenues and keep the tax rate the same. Draft Ballot Questions for Internet Services and TABOR Excess Revenues July 25, 2018 Page 2 The City included a question on the November 2016 ballot to increase debt by up to $33,000,000 and increase the City’s sales and use tax rate by 0.5% for 12 years or when $38,500,000 is raised for the Investing 4 the Future infrastructure projects. The required TABOR election notice was provided to all voters, which provided, among other information, an estimate of $3,700,000 as the amount the tax increase would generate in 2017. The actual amount of new tax revenue received by the City in 2017 was $4,157,931, which is $457,931 over the TABOR allowed amount. Consensus was reached by City Council to refer a question to the November 2018 ballot asking voters to allow the City to keep the excess revenue and temporary tax rate. This question will be considered a TABOR question, which requires the issuance of a TABOR notice. In addition, it has been determined that 2E Bond proceeds can be used for election expenses. ATTACHMENTS: 1. High Speed Internet Draft Resolution 2. TABOR Excess Revenue Draft Resolutions CITY OF WHEAT RIDGE, COLORADO RESOLUTION ___ Series of 2018 TITLE: A RESOLUTION GIVING NOTICE OF AND CALLING FOR A SPECIAL MUNICIPAL ELECTION TO BE HELD NOVEMBER 6, 2018 AND SUBMITTING A BALLOT QUESTION AUTHORIZING THE CITY TO PROVIDE HIGH SPEED INTERNET SERVICES WHEREAS, the Home Rule Charter for the City of Wheat Ridge, Section 2.2 requires that a special election shall be called by resolution or ordinance of the City Council no less than 60 days in advance of such special election; and WHEREAS, the Council is authorized to refer questions to the voters by the Home Rule Charter and by CRS 31-11-111; and WHEREAS, the Council desires to give notice of and call a special election to be held on the same date as and coordinated with the general election on November 6, 2018. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Special election called. Pursuant to the Wheat Ridge City Charter Sections 2.2 and 6.3, and CRS 31-10- 501 and 31-11-111, the City hereby gives notice of and calls a Special Municipal Election to be held November 6, 2018 for the purpose of referring the Ballot Question set forth in Section 2 to the voters of the City in the manner set forth below: Date: November 6, 2018 Qualifications of persons entitled to vote: 18 years of age registered to vote Section 2. Ballot question referred to voters. Ballot Question and Title: “SHALL THE CITY OF WHEAT RIDGE, WITHOUT INCREASING TAXES BY THIS MEASURE, AND TO RESTORE LOCAL AUTHORITY THAT WAS DENIED TO LOCAL GOVERNMENTS BY THE COLORADO GENERAL ASSEMBLY AND FOSTER A MORE COMPETITIVE MARKETPLACE, BE AUTHORIZED TO PROVIDE HIGH-SPEED INTERNET, INCLUDING IMPROVED HIGH BANDWIDTH SERVICES BASED ON NEW TECHNOLOGIES, TELECOMMUNICATIONS SERVICES, AND/OR CABLE TELEVISION SERVICES TO RESIDENTS, BUSINESSES, SCHOOLS, ATTACHMENT 1 LIBRARIES, NON-PROFIT ENTITIES AND OTHER USERS OF SUCH SERVICES EITHER DIRECTLY OR INDIRECTLY WITH PUBLIC OR PRIVATE SECTOR PARTNERS, AS EXPRESSLY PERMITTED BY ARTICLE 27, TITLE 29 OF THE COLORADO REVISED STATUTES” Section 3. Effective Date. This Resolution shall take effect upon adoption and signature by the Mayor. DONE AND RESOLVED this _____ day of ______________ 2018. ____________________________________ Bud Starker, Mayor ATTEST: Janelle Shaver, City Clerk DRAFT VERSION NO. 1 CITY OF WHEAT RIDGE, COLORADO Resolution _____ Series of 2018 TITLE: AN RESOLUTION GIVING NOTICE OF AND CALLING FOR A SPECIAL MUNICIPAL ELECTION TO BE HELD NOVEMBER 6, 2018 AND SUBMITTING A BALLOT QUESTION AUTHORIZING THE CITY TO RETAIN REVENUES IN CONNECTION WITH 2016 BALLOT QUESTION 2E WHEREAS, the Home Rule Charter for the City of Wheat Ridge, Section 2.2 requires that a special election shall be called by resolution or ordinance of the City Council no less than 60 days in advance of such special election; and WHEREAS, the Council is authorized to refer questions to the voters by the Home Rule Charter and by CRS 31-11-111; and WHEREAS, the Council desires to give notice of and call a special election to be held on the same date as and coordinated with the general election on November 6, 2018. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Special election called Pursuant to the Wheat Ridge City Charter Sections 2.2 and 6.3 and CRS 31-10-501 and 31-11-111, the City hereby gives notice of and calls a Special Municipal Election to be held November 6, 2018 for the purpose of referring the Ballot Questions set forth in Section 2 to the voters of the City in the manner set forth below: Date: November 6, 2018 Qualifications of persons entitled to vote: 18 years of age registered to vote Section 2. Ballot question referred to voters Ballot Question and Title: “SHALL THE CITY OF WHEAT RIDGE BE ENTITLED TO RETAIN ALL REVENUES FROM THE 2016 VOTER-APPROVED BALLOT QUESTION 2E "INVESTING 4 THE FUTURE" .50% SALES AND USE TAX, AND TO CONTINUE TO COLLECT THE TAX AT THE .50% RATE AND EXPEND SAID REVENUES INCLUDING ANY INTEREST AND INVESTMENT INCOME THEREFROM, IN THE FOLLOWING WAYS DIRECTED BY THE VOTERS IN 2016: • ANDERSON PARK IMPROVEMENTS; ATTACHMENT 2 • WADSWORTH BOULEVARD RECONSTRUCTION – 35TH AVENUE TO INTERSTATE-70; • WHEAT RIDGE – WARD COMMUTER RAIL STATION AREA; • CLEAR CREEK CROSSING – MIXED-USE DEVELOPMENT SITE ON THE WEST SIDE OF I-70 AT 38TH AND YOUNGFIELD; WITHOUT REFUNDING ANY AMOUNT FOR EXCEEDING THE REVENUE ESTIMATES IN THE ELECTION NOTICE MAILED TO VOTERS IN 2016? _______ YES _______ NO Section 3. Effective Date. This Resolution shall take effect upon adoption. DONE AND RESOLVED this ____ day of ____________, 2018. Bud Starker, Mayor ATTEST: Janelle Shaver, City Clerk DRAFT VERSION NO. 2 CITY OF WHEAT RIDGE, COLORADO Resolution _____ Series of 2018 TITLE: AN RESOLUTION GIVING NOTICE OF AND CALLING FOR A SPECIAL MUNICIPAL ELECTION TO BE HELD NOVEMBER 6, 2018 AND SUBMITTING A BALLOT QUESTION AUTHORIZING THE CITY TO RETAIN REVENUES IN CONNECTION WITH 2016 BALLOT QUESTION 2E WHEREAS, the Home Rule Charter for the City of Wheat Ridge, Section 2.2 requires that a special election shall be called by resolution or ordinance of the City Council no less than 60 days in advance of such special election; and WHEREAS, the Council is authorized to refer questions to the voters by the Home Rule Charter and by CRS 31-11-111; and WHEREAS, the Council desires to give notice of and call a special election to be held on the same date as and coordinated with the general election on November 6, 2018. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Special election called Pursuant to the Wheat Ridge City Charter Sections 2.2 and 6.3 and CRS 31-10-501 and 31-11-111, the City hereby gives notice of and calls a Special Municipal Election to be held November 6, 2018 for the purpose of referring the Ballot Questions set forth in Section 2 to the voters of the City in the manner set forth below: Date: November 6, 2018 Qualifications of persons entitled to vote: 18 years of age registered to vote Section 2. Ballot question referred to voters Ballot Question and Title: “SHALL THE CITY OF WHEAT RIDGE BE ENTITLED TO RETAIN ALL REVENUES FROM THE 2016 VOTER-APPROVED BALLOT QUESTION 2E "INVESTING 4 THE FUTURE" .50% SALES AND USE TAX, AND TO CONTINUE TO COLLECT THE TAX AT THE .50% RATE AND EXPEND SAID REVENUES INCLUDING ANY INTEREST AND INVESTMENT INCOME THEREFROM, IN THE FOLLOWING WAYS DIRECTED BY THE VOTERS IN 2016: ATTACHMENT 3 • 12% FOR ANDERSON PARK IMPROVEMENTS; • 21% FOR WADSWORTH BOULEVARD RECONSTRUCTION – 35TH AVENUE TO INTERSTATE-70; • 37% FOR WHEAT RIDGE – WARD COMMUTER RAIL STATION AREA; • 30% FOR CLEAR CREEK CROSSING – MIXED-USE DEVELOPMENT SITE ON THE WEST SIDE OF I-70 AT 38TH AND YOUNGFIELD; WITHOUT REFUNDING ANY AMOUNT FOR EXCEEDING THE REVENUE ESTIMATES IN THE ELECTION NOTICE MAILED TO VOTERS IN 2016? _______ YES _______ NO Section 3.Effective Date. This Resolution shall take effect upon adoption. DONE AND RESOLVED this ____ day of ____________, 2018. Bud Starker, Mayor ATTEST: Janelle Shaver, City Clerk