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HomeMy WebLinkAbout10-07-2024 - Study Session Agenda Packet STUDY SESSION AGENDA CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO 7500 W. 29th Ave. Wheat Ridge CO October 7, 2024 6:30 pm This meeting will be conducted as a virtual meeting, and in person, at 7500 West 29th Avenue, Municipal Building. City Council members and City staff members will be physically present at the Municipal building for this meeting. The public may participate in these ways: 1. Attend the meeting in person at City Hall. Use the appropriate roster to sign up to speak upon arrival. 2. Provide comment in advance at www.wheatridgespeaks.org (comment by noon on October 7, 2024) 3. Virtually attend and participate in the meeting through a device or phone: • Click here to pre-register and provide public comment by Zoom (You must preregister before 6:00 p.m. on October 7, 2024) 4. View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTube Live at https://www.ci.wheatridge.co.us/view Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Contact the Public Information Officer at 303-235-2877 or wrpio@ci.wheatridge.co.us with as much notice as possible if you are interested in participating in a meeting and need inclusion assistance. Public Comment on Agenda Items 1. Contractor Licensing – Proposed Updates 2. Lutheran Legacy Campus Zoning Requirements 3. 2024 Budget Update 4. Staff Report(s) 5. Elected Officials’ Report(s) Item No. 1 Memorandum TO: Mayor and City Council THROUGH: Patrick Goff, City Manager FROM: Lauren Mikulak, Community Development Director Maria D’Andrea, Director of Public Works Renee Meriaux, Chief Building Official DATE: September 27, 2024 (for October 7, 2024, Study Session) SUBJECT: Contractor Licensing – Proposed Updates ISSUE: The City of Wheat Ridge manages contractor licensing through both the Public Works and Community Development Departments. Contractors who complete work in the City’s rights-of-way obtain a municipal contractor license through Public Works. Contractors who complete work on private property obtain a building contractor license through the Building Division. Staff from both departments are working on the implementation of the new OpenGov software which will streamline permitting and licensing. In preparation for these changes, staff has identified a need to simplify the contractor licensing framework. The purpose of the October 7 study session is to seek Council concurrence on related code amendments and fee changes for building and municipal contractors. BACKGROUND: Building Contractors Current Code In the municipal code, Chapter 5 establishes building code regulations and Article IV regulates the licensing of building contractors. Anyone being paid for and completing work which is regulated by the International Building Code (IBC) is considered a contractor and is required to be licensed. (The only exception is for electricians who are licensed through the state and simply register with the City). Since at least 1996, the City’s approach to licensing has remained generally the same with over a dozen different contractor classifications. Section 5-117 of the Municipal Code defines each class and Section 5-121 establishes the annual license fee amount. These are summarized in Table 1 below. Study Session Memo – Contractor Licensing October 7, 2024 Page 2 Table 1. Summary of Building Contractor Licenses Class Name Description Annual Fee Testing Available Active Licenses as of 9/23/24 1 Building contractor Most broad general contractor license; authorized to perform all types of construction for all types of buildings $150 Yes, ICC 285 2 Building contractor Limited general contractor; limited to Type 3, 4, and 5 buildings; limited to 3 stories in height; does not include educational, institutional, and hazardous occupancies $125 Yes, ICC 292 3 Residential building contractor Limited to single-unit, duplex and townhome construction and accessory structures; limited to 3 stories in height $100 Yes, ICC 402 4 Building contractor For any type of work not covered by the City’s other license types (1-3 and 5-15) $75 No 299 5 Homeowner building contractor For any work on a single-unit home completed by the individual who owns the unit and resides in the unit for a period of 1 year after final inspection No fee No 2 6 Structure moving contractor For moving any type of structure $75 No 1 7 Demolition contractor For demolition of any structure $75 No 15 8 Plumbing contractor For any work related to sanitary sewer, potable water, gas piping, and appliances connected to such systems $100 Yes, State 455 9 Mechanical contractor For any work related to warm air heating, ductwork, ventilation, and evaporative cooling $100 Yes, ICC 482 10 Electrical contractor For any work related to electrical systems (per state law, this is a City registration not a license) No fee Yes, State 769 11 Sign contractor For any work related to fabricating, installing, or maintaining any sign type $75 No 70 12 Fire protection For any work related to automatic fire sprinkler systems and carbon dioxide systems $75 Yes, ICC 29 13 Lawn sprinkler This was removed from the municipal code in 2020 based on changes in state law. - - - 14 Roofing contractor For any work related to roofing including new roofs and reroofs $75 Yes, ICC 351 15 Electrical signal For any work related to fire detection, fire alarm, burglar alarm, pneumatic control and all signaling or control systems where the electrical voltage does not exceed fifty (50) volts $75 Yes, ICC 34 Total 3,487 Study Session Memo – Contractor Licensing October 7, 2024 Page 3 While the IBC establishes standards for building codes, it does not establish a standardized licensing framework, therefore contractor licensing requirements vary among peer cities. The Wheat Ridge Municipal Code establishes that the Building Division shall determine what qualifications are required for each license type and authorizes the Chief Building Official (CBO) to establish reasonable examination procedures. The International Code Council (ICC) has a Contractor/Trades Examination Program, but it does not apply to all trades and license types. The ICC testing program is designed to provide licensing agencies (like the City) with information regarding qualified contractors and trade professionals. ICC tests are available for general contractor licenses and for some specialty trades (as noted in the table above). Historically, in Wheat Ridge, contractors are required to submit insurance, payment, and proof of a passing score if an ICC test is available for their license type. Building Division staff track which peer communities also require testing, so reciprocity is available if a contractor has already obtained a license in certain peer communities. Most peer communities have significantly fewer license types than Wheat Ridge. Lakewood has only five (5) types, Arvada has 11, and most other communities fall somewhere in between, including Brighton, Denver, Englewood, Erie, Lafayette, Littleton, Louisville, and Northglenn. The median is nine (9) license types. Issues & Recommendations Staff has two key recommendations related to building contractor licensing and fees: • The licensing framework in the code is overly complex. It includes some specialty trades but omits others which are similarly regulated by the building code (such as drywall, windows, and siding). Class 4 licenses have historically been used as a catch-all category for any trade not specified. Staff recommends reducing the number of license classifications and simplifying the licensing framework into umbrella categories— tested and untested, general and specialty. Homeowner licenses are proposed to be removed because the building code already conditionally authorizes homeowners to obtain permits; no license is required. Because the code already authorizes the CBO to establish reasonable testing procedures, there is no need to create a separate license class for each tested specialty. This simplified approach is more consistent with peer communities and allows for some flexibility if or when the ICC creates tests for additional trades. The proposed approach is summarized in Table 2 below; it simplifies the licensing for specialty trades and will be a fairly easy transition from the current framework. • Fee amounts are published in both the municipal code and in the fee schedule. Staff recommends removing fee amounts from the municipal code such that any necessary fee updates can occur during the annual budgeting process without the need for an ordinance. License fees have been the same since 2003 for some classes and since 1996 for others. Current fees do not reflect the actual administrative costs to the City and are below peer communities. Staff recommends increasing fee amounts $25 to $50. Study Session Memo – Contractor Licensing October 7, 2024 Page 4 Table 2. Summary of Proposed Building Contractor Licenses Type Class Name Description Annual Fee Testing Tested - General 1 Unlimited General Most broad general contractor license; authorized to perform all types of construction for all types of buildings $170 Yes, ICC 2 Limited General Limited general contractor; limited to Type 3, 4, and 5 buildings; limited to 3 stories in height; does not include educational, institutional, and hazardous occupancies $150 Yes, ICC 3 Residential General Limited to single-unit, duplex and townhome construction and accessory structures; limited to 3 stories in height $125 Yes, ICC Tested - Specialty 4 Plumbing contractor For any work related to sanitary sewer, potable water, gas piping, and appliances connected to such systems $100 Yes, State 5 Mechanical contractor For any work related to warm air heating, ductwork, ventilation, and evaporative cooling $100 Yes, ICC 6 Electrical contractor For any work related to electrical systems (per state law, this is a City registration not a license) No fee Yes, State 7 Tested Trade For any specialty trade regulated by the City’s adopted building codes and for which an ICC or state test is available as determined by the Chief Building Official, such as roofing, gas piping, fire suppression, low voltage electrical $100 Yes, ICC or State Untested - Specialty 8 Untested Trade For all work which requires a permit but is not otherwise authorized under the other contractor licenses 1-8 $100 No, letter proof of experience Municipal Contractors Current Code Unlike building contractors, municipal contractors are specifically licensed to complete work in the City’s rights-of-way. This license holds contractors accountable to City standards for repair and restoration and has the additional requirement of a performance bond to ensure work is completed satisfactorily and no damage is caused to the City’s infrastructure. Until 2006, the regulation of municipal contractors was combined with building contractors and embedded in Chapter 5 (Buildings and Building Regulations). Ordinance 1361, approved in 2006, moved the three municipal contractor licenses to Chapter 21 (Streets and Sidewalks). Study Session Memo – Contractor Licensing October 7, 2024 Page 5 Either at that time or since, a fourth license class (to allow for occupation of a traffic lane) was created however, the municipal code was never amended to include it. The licensing framework is in Section 21-21 of the code and is summarized in Table 3 below. Table 3. Summary of Municipal Contractor Licenses Class Name Description Annual Fee Active Licenses as of 9/23/24 A Municipal contractor For installation of water mains, sewer mains, water and sewer service lines, storm drains, and related structures $200 75 B Municipal contractor For street, alley and roadway-related construction including excavation, grading, compaction, paving, curbing, potholing, concrete structures (curb, gutter, sidewalks, medians, etc.) and traffic signals $150 122 C Municipal contractor For installation of water and sewer service lines only, including excavation, pipe placement, and backfilling $125 25 D Traffic control & streetlights For non-roadway related construction, including traffic control, installation of street/pedestrian lights, tree trimming, and staging within the right-of-way $50 8 Total 230 Issues & Recommendations Staff has two key recommendations related to municipal contractor licensing and fees: • When the fourth classification was established, other code references were not updated accordingly. For example, the introductory sentence in Section 21-21 gives the Public Works Director authority to establish license qualifications only for classes A, B, and C, inadvertently omitting class D. Staff is recommending minor code amendments that acknowledge all license types in the appropriate places. • Staff recommends reducing the number of license classifications and simplifying the licensing framework into two categories based on whether there will be excavation or disturbance of City infrastructure or simply occupation of the right-of-way in order to simplify the process and be in alignment with other communities, as shown in the table below: Table 4. Summary of Proposed Municipal Contractor Licenses Class Name Description Annual Fee Bond Required A Excavation For any surface or sub-surface excavation, grading, compaction, or work that modifies the city infrastructure including pavements, sidewalks, curb & gutter, alleyways, etc. $300 Yes D ROW Occupation For non-excavation related construction, including traffic control, tree trimming, and staging within the right-of- way $100 Yes Study Session Memo – Contractor Licensing October 7, 2024 Page 6 • Similar to building contractors, fee amounts are published in both the municipal code and in the fee schedule. Staff recommends removing fee amounts from the municipal code such that any necessary updates can occur during the annual budgeting process without the need for an ordinance. License fees have remained the same since at least 2006. They do not reflect the actual administrative costs to the city and are lower than peer communities. Staff recommends increasing fee amounts to $300 and $100 respectively. A bi-annual process will be undertaken to assess the costs of issuing, reviewing, and monitoring licensees to verify the fee is in approximate alignment with the City’s costs. • The code needs to be modified to enhance the standards for repair and restoration. These are currently lacking in relation to other communities and has resulted in the city becoming obligated to repair street segments where the contractor’s repairs have settled or failed. Staff plans to make significant modifications to the code language in Section 21 to better reflect these requirements. Code language will also be modified to better reflect uses within the right-of-way, beyond permitted uses, such as work by private utilities and property owners and consequences for working without a permit and/or license. These code modifications will be brought before City Council for consideration late in 2024 or early-2025. NEXT STEPS: Because of the specialized nature of each kind of contractor, staff is proposing to retain both types of licenses—building and municipal. There are very few contractors who maintain licenses for both private property and right-of-way. The most common crossover occurs between licensed plumbers and Class C municipal contractors who work on water and sewer service lines which extend between private structures and mains within the right-of-way. For those who do have both, the use of OpenGov for both license types will create simplicity in obtaining and maintaining licenses. Staff is seeking Council concurrence on staff’s recommendations to • Revise the license categories, • Update the code and remove fee amounts from the code, and • Update fees in the proposed 2025 budget. If Council concurs with these recommendations, then staff will continue OpenGov implementation work and will have the software reflect the proposed licensing approach instead of the status quo. An ordinance will be presented to Council this fall with effective dates to align with the early 2025 OpenGov rollout. The fee schedule will be updated in the 2025 budget to align with this direction. Item No. 2 1 Memorandum TO: Mayor and City Council THROUGH: Jana Easley, Planning Manager Lauren Mikulak, Community Development Director Patrick Goff, City Manager FROM: Scott Cutler, Senior Planner Stephanie Stevens, Senior Planner Alayna Olivas-Loera, Planner II DATE: September 27, 2024 (October 7, 2024, Study Session) SUBJECT: Lutheran Legacy Campus Zoning Requirements PRIOR ACTIONS: On May 13, 2024, City Council passed Resolution 26-2024 in support of initiating a legislative zone change for the Lutheran Legacy Campus. The legislative zone change will be based on the Lutheran Legacy Campus Master Plan, adopted by City Council on October 25, 2021, through creation of a new mixed use zone district specifically for the campus. Staff presented a draft zoning framework to City Council on July 15, 2024 and Council gave consensus to proceed with the zoning framework presented, which will follow the recommendations of the Master Plan. Council also gave additional directions on some topics that were not specified in the Master Plan, such as signage and permitted uses. Staff presented the same zoning framework to Planning Commission on August 15, 2024, with some additional details based on the proposed ballot question language. On September 17, staff presented some details of the proposed zoning rules at the City Plan open house. This meeting also served as the required neighborhood meeting for the legislative zone change. Owners and occupants within 1000 feet of the property were invited; over 1700 postcards were mailed. The public was also invited to comment specifically about the zoning through an online form on What’s Up Wheat Ridge from September 3 to 17. PURPOSE: The purpose of this October 7, 2024, study session is to: 1) present the draft zoning requirements to Council which are based on prior consensus, additional research, and public comments, and 2) confirm policy direction on some topics that have come up since the drafting of the zone district requirements was initiated. 2 PROPOSED ZONING: The Planning Division is developing a custom zone district for the Lutheran Legacy Campus which will comply with the recommendations of the Master Plan. This zoning framework is similar to the current mixed-use zoning regulations in Article XI of Chapter 26 but is highly customized to include specific recommendations and requirements of the Master Plan. A new Article XIV (14) will be created in the zoning code, specific to the Lutheran Legacy Campus zoning to be named the “Mixed Use – Lutheran Legacy Campus (MU-LLC)” zone district. The below framework includes all the proposed sections of Article XIV. Section 26-1401 - Purpose Statement All zone districts include a purpose statement. The intent of this purpose statement is to recognize the goals of the Master Plan and zoning. The MU-LLC zoning: 1. Creates a balanced mix of land uses, including residential, institutional, civic, office, and neighborhood-serving commercial; 2. Improves the public realm through high-quality design; 3. Integrates existing assets, both built and natural; 4. Provides a network of open space, trails, and sidewalks; 5.Prioritizes pedestrians, bicyclists, and transit users; and 6.Respects the character and integrity of adjacent residential neighborhoods. Section 26-1402 - Districts Established This section establishes the MU-LLC zone district and overlay districts. This allows custom regulations to apply to different areas of the campus: •A “low-density overlay” will apply to the first row of development around the perimeterto ensure compatibility of land uses and building form, and to align with the Charterquestion regarding lower building heights around the perimeter (see Figures 1 and 2below). •The four zones presented in the Master Plan will be called “sub-districts” in the zoningcode (see Figure 3 below). The enables custom zoning regulations for each zone,particularly related to permitted uses and open space. Section 26-1403 - Applicability This section is based on existing Section 26-1103, which discusses how the MU-LLC standards apply to new development, to expansion of existing structures, and to nonconforming structures. This section specifically encourages the re-use of legally nonconforming or existing hospital structures such as the north tower, even though the City cannot require adaptive reuse. If the MU-LLC zoning is approved for the campus, it will result in legal nonconforming uses and structures—those which currently exist on the property but are not permitted in the future, such as the West Pines inpatient behavioral health and substance use disorder clinic. Per this code 3 Figure 2: This image shows the ballot measure proposal to lower the maximum allowed height for residential structures from 35 to 30 feet (2.5 stories) when in proximity to adjacent residential neighborhoods. The yellow aligns with the proposed “low-density overlay” shown in Figure 1. section, the current use will be permitted to continue, but a new residential clinic and treatment center could not open once West Pines closes. Figure 1: A map of the approximate location of the “low-density overlay” which applies to the first row of development around the perimeter. This overlay includes regulations on building height and form that will be described in later sections, to align with the Charter question. The overlay helps buffer existing low- density neighborhoods from the moderate and higher intensity uses allowed elsewhere on the campus. Figure 3: Chapter 5 of the Master Plan identifies four primary sub-geographies within the campus that will need to have custom regulations due to their locations and the existing/adjacent conditions (Zones 1, 2, 3 and 4). For the purposes of the zoning rules, they are called “sub-districts” 1 through 4, and permitted uses and open space requirements vary by zone. 4 Section 26-1404 - Building Height and Residential Density This section describes the permitted building heights throughout the campus. The draft code corresponds with the ballot question with the goal of tapering height between the center and perimeter of the site. This approach allows a variety of building heights and ensures taller buildings are not adjacent to existing surrounding residential areas. •In the low-density overlay, height is limited to 2.5 stories and 30 feet. •In the areas where the Charter limit would be lifted (shown in purple in Figure 2 above),height is limited to 70 feet (5 stories maximum). •In areas not exempted from the Charter limits and outside of the low-density overlay,height is limited to 35 feet for any building containing a residential use and 50 feet fornon-residential buildings. (This aligns with current Charter limitations.) •Accessory buildings in any area are limited to 15 feet for an accessory building or 25 feet for a detached ADU above a garage. (This aligns with current regulations throughout theCity’s residential zone districts.) This section also describes the density limitations. The campus as a whole cannot exceed 21 dwelling units per acre. This aligns with current Charter limitations. Section 26-1405 - Building Placement and Orientation This section contains requirements about building setbacks, placement of building entrances, activation of streets and open spaces, and standards for attached residential development. Thoughtful building placement and consideration of building entrances enhances the public realm and creates a walkable, human-scaled environment. The Master Plan clearly calls for more strict requirements on the perimeter of the site and more flexibility in the interior, and this code section reflects that desire with a customized approach. The existing and surrounding conditions also necessitate a customized approach—on the eastern side of the campus, new development abuts backyards and on the western side of the campus, new development faces a public street and front yards. The combined impact of this section and the following section (26-1406 regarding building design) is a set of strict requirements that mimic or even exceed the City’s current bulk-plane restrictions on residential development. The following setback requirements apply: •Along 38th Avenue:o New buildings must be set back as far from the street as they are tall. o For example, a 70-foot-tall building would need to be set back 70 feet from the property line. Sometimes a taller structure implements a stepped back design forupper stories. If a building is tiered, then upper stories would need to be steppedback farther from 38th Avenue the equivalent to the upper story height. Refer tographics below for examples (Figures 4 and 5). In short, the taller the building, the greater the distance from 38th Avenue. 5 •In the eastern and southern low-density overlay (adjacent to Allison Ct, Zephyr Ct,Balsam Street, 33rd Ave, 32nd Pl, and Cody Ct):o Primary structures must be set back 30 feet from the campus boundary. This willensure that a yard faces the adjacent backyards. This also ensures that the setbackis similar to the maximum height of the building, which is 30 feet (2.5 stories) in this area. o Single-story accessory buildings (such as sheds and garages) must be set back 5feet from the property line, which is the same requirement as in the adjacent R-2zone districts. Taller accessory structures must be set back 15 feet. Figure 4: Graphic illustrating that buildings must be set back as far from the street as they are tall. For example, a 70-foot-tall building would need to be set back at least 70 feet from the property line. Figure 5: Graphic illustrating upper story step-backs. If the building is tiered, the lower story setback is equivalent to the lower story height, and the upper story step-back is equivalent to the upper story height. 6 •In the western low-density overlay (parallel to Dudley Street):o Homes must have a front setback of 15 feet.o Dudley Street will be required to have on street parking and a continuous detached sidewalk. The setback will be measured from the back of the new sidewalk. •Interior setbacks:o In the interior of the site, setbacks align with standards throughout the city.o 10 feet of separation is required between townhome buildings. o Side setbacks are a minimum of 5 feet. The following requirements apply to building orientation and building entrances: •Buildings must have at least one (1) entry that faces a public or private street or public open space. For non-residential buildings or multi-unit residential buildings, this entrancemust be a public/primary entrance. This enhances the public realm. •Houses along Dudley Street must have their front door face Dudley Street. The onlyexception would be if open space is located along Dudley, then front doors may face that open space. Rear yards cannot face Dudley Street, which will prevent new development from “turning its back” on the neighborhood. Curb cuts will be limited on Dudley Streetto minimize the appearance of garages and to minimize sidewalk conflicts. •In the interior of the site, buildings must be oriented towards streets and open space (including the internal trail network) instead of turning their backs on public spaces or having large front setbacks. •As described more in the parking section below, parking lots cannot be placed betweenthe building and the street, which encourages an active and interesting street or openspace frontage. This requirement is intended to be flexible and mimic the City’s current “build-to” requirement for mixed-use zones. •The City’s current design requirements for townhomes (Section 26-1105.F) applies to thecampus to avoid “slot homes” and ensure that townhome front doors predominately facestreets or open space. Section 26-1406 - Building Design and Form This section describes requirements for building massing, façade, and materials; the building’s relationship to surrounding areas and the street; and how to emphasize human-scaled design. The following requirements apply for building design and form: •In the low-density overlay:o If structures are over 2 stories (up to the 2.5 story limit), pitched roofs arerequired. Flat or shed roofs are only permitted for single and two-story homes (refer to Figure 6 on the next page for examples). o Rooftop or 2nd story decks are prohibited in the low-density overlay where newdevelopment directly abuts existing residential development.o Additional design requirements to prevent cookie-cutter designs: Adjacent residential structures shall not be matching designs. Adjacent residential structures shall have variety in material and color. 7 Adjacent residential structures shall be offset from one another (i.e., theexact same setback from the street may not be used). Eaves are required for all pitched and shed roofs. Porches or other projecting features such as entry awnings are required for all residential structures. •For commercial uses: Transparency, human-scaled signage and lighting, enhancedentries, activated uses, and adjacent outdoor seating or spaces are all required. •For commercial and multi-unit residential: Material and material variation requirements apply. These standards match the existing code in Section 26-1106. •Screening of loading, service areas, and utilities is required. These standards match theexisting code in Section 26-1106.F. Section 26-1407 - Parking Requirements, Design Standards, and Quantities This section includes all standards related to parking with the goal of containing parking impacts on site. Most parking requirements align with the existing code in Sections 26-1107 and 1109. The following requirements apply for parking: •Parking areas must be located to the rear or side of buildings and may not be placedbetween the building and primary streets and open spaces of the development. Surfaceparking areas that are not screened by buildings must include a landscape buffer andscreen walls. The only exception to the parking placement requirement will be along 38th Avenue, where parking will be allowed in the large setbacks if screened, which also reflects the current conditions. •Shared parking is encouraged, and a regional parking approach is required forcommercial and civic uses, meaning common parking lots and not separate parking lotsfor each individual user or building to the greatest extent possible. Blanket parking easements with cross-access will be required for commercial surface parking. Figure 6: Graphic illustrating 2.5-story homes with pitched roofs. 8 •Traffic and parking studies are required with concept plan and site plan applications. Thedeveloper is responsible for any infrastructure improvements required to accommodatethe proposed development including sidewalks, streets, and off-street parking. o Street parking may be included on adjacent public and private streets to accommodate guest parking. Visitor parking shall be provided throughout thedevelopment.o Parking needs to be self-contained, meaning no additional spillover into existingneighborhoods, with the exception of allowing street parking on the east side of Dudley Street. •The minimum and maximum parking requirements from Section 26-1109 apply, withsome modifications and clarifications made for the types of uses allowed in the MU-LLCzoning. These requirements may need to be modified later in 2025 to comply with theState legislation regarding minimum parking requirements, but the maximum parking allowance can still apply. Maximum parking requirements ensures that developers do notbuild large swaths of parking which goes unused, which is typical of more suburban-style, big-box development. •The recently adopted bicycle parking and storage requirements and EV parking requirements in Section 26-501.E.4 and E.13 apply. Section 26-1408 - Site Circulation and Vehicular Access This section includes requirements for vehicle, pedestrian, and bicycle access and networks. The following requirements are included for site circulation: •Prohibition on vehicular street connections to adjacent residential streets such as 34th or35th Avenue at Dudley Street, 33rd Avenue or Balsam Street, Cody Court, and AllisonCourt. •Require a pedestrian and bike connection into the site at Dudley Street and allow at otherlocations. Secondary vehicular connections are allowed for fire/emergency access and/orindirect alley access; the latter would allow for alley-loaded garages, since garage doorsand driveways can’t face Dudley Street. •Require pedestrian and bicycle connections throughout the site to allow access wherevehicle access is more limited, including to open space, and to ensure people can easilyenter and access the site from surrounding neighborhoods. •Limitations on curb cut spacing on public and private streets to reduce conflicts between vehicles and pedestrians. o Prohibit individual driveway/garage curb cuts on Dudley Street to ensure homesare alley-loaded and garages don’t face Dudley Street. •Requirement for primary private/public streets to have sidewalks on both sides of the street a minimum of 6 feet in width. Section 26-1409 - Open Space and Landscaping Requirements This section establishes requirements for open space including requirements for parks and plazas to enhance the public realm. The Master Plan clearly establishes a community desire for public open space, so the MU-LLC code requires more than the City’s other mixed-use districts. 9 The following requirements apply for open space and landscaping: •Twenty (20) percent of the net development site area shall be “publicly accessible” open space. Net development site area means the total site area less public rights-of-way and tracts containing private streets (including the Parkways). o The term “publicly accessible” open space recognizes that public open space maybe owned and maintained by the City, or it may be owned and maintained by ametropolitan district with a recorded perpetual public access easement. •At least 75% of the required publicly accessible open space shall be “usable” whichincludes areas that can be used for passive or active recreation, and matches thepercentage required by Section 26-1110, such as:o Plazas, parks, outdoor dining areas, public courtyards, and community gardens.o Sport and play areas including athletic fields, playgrounds, and dog runs. o Walking paths or sidewalks at least 6 feet wide if part of a larger pedestrian orbicycle network (not just along the side of a road).o Natural areas with native landscapes that abut a walking path.Areas that would not be considered “usable” would include the below, even if included in “publicly accessible tracts: o Steep slopes. o Parking lot islands, medians, and buffers.o Most water detention ponds. •Total open space and landscaping area on the site will exceed 20% due to additional private open space and landscaping including: o Private yard space on low-density residential lots and all landscaped setbacks onprivate lots (they do not count towards the overall 20% requirement since they arenot accessible to the public).o Private amenity spaces for multi-unit residential buildings, such as pool decks, rooftop patios, or private courtyards, for the exclusive use of the occupants. o Required landscaping within streetscapes. o Landscaping which by virtue of its size and configuration does not qualify aspublicly accessible and/or usable open space such as parking lot islands or narrowlandscape buffer strips. •Publicly accessible open space shall be required along Dudley Street for at least 100 feetof street frontage with continuous ped/bike connections into the campus. •A regional stormwater system shall be provided, utilizing existing assets where feasible. Section 26-507 regarding low impact stormwater design shall apply. •All open space shall have a bike/ped route adjacent to it or through it, connecting tosurrounding areas. •A good faith coordination effort with Rocky Mountain Ditch shall be required to retain the open ditch and the trail amenity alongside the ditch to the greatest extent feasible. •An arborist analysis of existing trees shall be required as part of site plan applications anda good faith effort shall be made to preserve the healthy mature tree canopy to thegreatest extent feasible. 10 •Publicly accessible open space may fulfill a portion of the parkland dedicationrequirements of section 26-414, based on configuration, size, location, design, andamenities provided, at the sole discretion of the community development director. Section 26-1410 - Permitted Uses and Requirements for Mixed Use Development This section includes a list of permitted uses within the MU-LLC zone, including additional use restrictions within the low-density overlay. The section is similar to Section 26-1111 in Article XI, which is not intended to be overly prescriptive or exhaustive in providing a list of specific uses, but rather provide for a range of uses while emphasizing the importance of building form. Additionally, it requires a mix of uses in some sub-districts to ensure a range of uses is provided and the site will not be developed entirely as residential. The following requirements apply for permitted uses: •Generally, follow the permitted use chart from Article XI and allow for a wide range of uses, especially within the interior of the campus in line with the suitability mapsprovided in the Master Plan. Refer to the simplified table of uses below. •Prohibit auto-oriented uses including drive-throughs, gas stations, car washes, auto repairand auto sales. •Limit uses within the low-density overlay to single-unit homes, duplexes, open space,and civic/institutional uses only (to match those allowed in standard low-density zones),to provide assurance to the community about what types of development will be next tothem. No townhomes or apartments will be allowed in the low-density overlay. •Ensure a mix of uses by requiring the development to provide at least two different usegroups as primary uses from the following categories: Residential; Public, Civic, andInstitutional; Commercial Services and Retail; Hospitality and Entertainment; and Office. •Some uses require conditional approvals, following the current requirements of section 26-1118, to give staff additional leverage and give the public additional protection,because the suitability maps in the Master Plan do not align perfectly with the sub-districtboundaries. For example, retail uses in sub-district 4 may be appropriate in some areasnear 38th Avenue and with certain designs but should be reviewed on a case-by-casebasis. The below table of uses is a simplified version of what will appear in the zoning code. P = Permitted, NP = Not Permitted, and C = Conditional. Use Group Low-Density Overlay Sub-district 1 (outside of Low- Density Overlay) Sub-district 2 Sub-district 3 Sub-district 4 (outside of Low- Density Overlay) Residential Assisted living NP P P P P Single-unit and duplex P P NP NP P Townhome NP P P P P Multi-unit apartments NP NP P P C Civic Community buildings P P P P P Open space P P P P P 11 Schools and places of worship P P P P P Commercial Auto-oriented uses1 NP NP NP NP NP “Big box” retail2 NP NP NP NP NP “Small format” retail2 NP NP P P C Day Care Center C P P P P Eating establishment NP NP P P C Personal services NP C P P P Hospitality & Entertainment Studios and galleries NP C P P P Hotels NP NP C C NP Extended stay lodging and motels NP NP NP NP NP Office & Industrial Offices NP C P P P Medical and dental NP C P P P Outdoor storage NP NP NP NP NP Light industrial (including office/warehouse, wholesale, and self-storage) NP NP NP NP NP 1 Auto-oriented uses include but are not limited to drive-throughs, gas stations, car washes, and auto sales/repair. 2 The current mixed-use code differentiates between different sizes of retail spaces by gross square footage. The intent is to prohibit the larger format “big box” retail spaces while still allowing smaller retail spaces. Section 26-1411 - Preservation of Existing Buildings The blue house, chapel, and tuberculosis tent were identified as key community assets with historic value through the master planning process, but they are not designated on any historic registers. Understanding that there is a strong community desire to preserve the structures in some capacity, this section includes the following requirements: •As part of the concept plan application, the developer shall provide justification as to how they intend to comply with the intent of the Master Plan and the Council resolution related to the existing assets. •Approval of the concept plan (which gets recorded) would then bind the developer totheir commitment, and future site plan approvals shall show how the structures are beingrehabilitated and/or incorporated into new development. o Commitments to reuse or preserve can also be documented through adevelopment agreement between the City and developer, including someincentives to require preservation through Tax Increment Financing (TIF)agreements. 12 Section 26-1412 - Signs Signage is an important consideration for large-scaled developments to ensure some unity in design and standards. The City’s sign code (Chapter 26, Article VII) is best applied to single buildings on single lots but less applicable to a campuswide development. Given the low-density nature of the surrounding area, the MU-LLC will regulate signage to ensure limited visual impacts to neighborhoods. This section includes the following approach to signage: •Prohibit electronic messaging center (EMC) signage. This type of signage can have greater impacts on the surroundings and is more appropriate in a purely commercial area. •Require downcast lighting for signs and limit internally illuminated wall signs. •Limit the height of monument signs for commercial and multi-unit development to be pedestrian-scaled. •Allow regional identification or gateway signage at primary site entrances to createbranding for the overall development. •Require pedestrian-scaled wall signage including blade/arcade signs for commercial spaces. •Allow for significant flexibility on directional and wall signage to ensure buildings andtenant spaces internal to the site can be identified. Current code requirements are veryprescriptive and do not work well for mixed use development. Section 26-1413 – Exterior Lighting This section includes standards for lighting, including any changes from the City’s standard lighting requirements. The requirements align with Section 26-1114, including the need for full-cutoff fixtures and no uplighting to ensure limited spillover and low impacts on the night sky. All lighting shall be energy efficient and comply with the City’s adopted building codes. Section 26-1414 - Site Plan Review This section requires review of site plans for individual buildings or regions of the campus. No changes are proposed to the City’s standard site plan review. Section 26-1415 - Concept Plan Review This section requires a developer to submit a concept plan application prior to any individual site plan or building permit review. Specifically for this site, the concept plan must include: •Proposed circulation concepts including roads, access points, and major pedestrianroutes. •Proposed building areas and/or preliminary land use concepts. •Open space concepts. •Traffic study with specific land use assumptions. •Preservation concepts for the blue house, chapel, and TB tent. 13 Because concept plans are the first opportunity for staff and the public to see a proposed development approach, a neighborhood meeting is required for the developer to present their plan. Staff intends to use the City’s existing requirements for concept plans, including both the neighborhood meeting requirement and public notice. Additionally, significant amendments to an approved concept plan will require a new process, with a new neighborhood meeting and application. This will ensure that the community is aware of any overarching changes to the circulation, building, open space, and preservation concepts. Section 26-1416 - Administrative Adjustments Administrative adjustments are minor adjustments to some zoning standards intended to relieve unnecessary hardship in complying with the strict letter of the law, especially in cases where unique site or building characteristics exist. These types of minor adjustments include items like window transparency, minor setback changes, and landscaping types and quantities. This section will align with the relief already provided in Sections 26-502 and 26-1117. These adjustments can only be approved if the applicant proves that the alternate design is still consistent with the intent and goals of the MU-LLC zoning. Section 26-1417 - Definitions Definitions not already within the municipal code (in Section 26-123 and 26-1119) will be added. For example, a new definition will need to be added to clarify what “publicly-accessible open space” is and how it is different from other types of open space. NEXT STEPS Staff is looking for consensus on these requirements to complete an ordinance which will be presented to Planning Commission and City Council at future public hearings, pending the results of the Charter amendment ballot question. Based on feedback at this study session, staff will complete the MU-LLC zone district regulations. Ultimately, these regulations will need to be approved by ordinance—just like any other zoning code amendment—before the campus itself can be rezoned to the new MU-LLC zone district. Staff intends to continue working on the zoning code requirements, but no formal hearings would occur until after the outcome of any potential ballot question is known. Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager Allison Scheck, Deputy City Manager DATE: September 27, 2024 (for Study Session October 7, 2024) SUBJECT: 2024 Budget Update ISSUE: In this document, we present a financial update on the 2024 Fiscal Year so that the City’s decisionmakers can enter the 2025 budget process informed as to the current financial picture. This update is required per sec. 10.11 of the City’s Charter. The focus of this update is the City’s General Fund operating budget. PRIOR ACTION: None FINANCIAL IMPACT: The original 2024 General Fund Budget was adopted at $48,634,419. The current Adjusted 2024 General Fund Budget is $51,412,843. The reason the budget increased is mainly due to the reencumbrance of purchase orders from 2023 where work was in progress but not yet completed, and vehicles or other pieces of equipment or supplies which had been ordered but not received in 2023. The City also received grants, such as $200,000 from the Small Business Administration for the Clear Creek Makerspace, which increased expenditures but were offset by revenues. Council has a minimum unrestricted fund balance policy of 17%, or two-months’ worth of expenditures with a target of 25%, or three months' worth of expenditures. We expect to end 2024 with an unrestricted fund balance of approximately 17.8%. There are several factors that have contributed to the current financial picture and the unrestricted fund balance aligning to Council’s minimum rather than targeted level. The discussion the follows includes recent initiatives and economic factors, along with a high-level analysis of revenues and expenditures. DISCUSSION: The past five years have been a time of transformation for the City of Wheat Ridge. City Council has been a catalyst for several large and significant initiatives, demonstrated support for regional activities and supported staff on many key recommendations to strengthen the community and improve the quality of life of those who live, work and play in Wheat Ridge. Some of the key initiatives advanced in the last five years include: Item No. 3 Staff Report: Budget Update October 7, 2024 Page 2 •Let’s Talk – this award-winning program sprang from the 2019 NeighborhoodRevitalization Study and resulted in the addition of two full time employees. •Homelessness Response – this regional collaboration has resulted in Wheat Ridge helpingover 140 individuals find permanent housing and resulted in the addition of two full timeemployees. Staff and program expenses are currently offset by ARPA funding through 2026. •Sustainability – the City has invested more time and resources in the Sustainable Wheat Ridge Program, over the past five years, resulting in the creation of the SustainableNeighborhoods program and other key initiatives. This program was originally staffed with apart time employee in 2020 which was increased to full time in 2021. •Specialty Licensing Programs – to help improve corridors, neighborhoods and focus on a healthy community, Council added several specialty licensing programs including tobacco,short-term rentals, hotel and massage businesses, resulting in one additional full-timelicensing technician and the redeployment of an existing position from Code Enforcement(which was consistently unfilled) to Finance to focus on compliance issues. •Improved Service Delivery – to meet demands, the City added 1.75 employees in thePlanning division to help with plan review and landscape inspections and assistance. •Community Engagement – through the addition of Wheat Ridge 101/102, the CommunityPartners Grant Program and the new IDEA committee, the City added a Management Analyst to assist with workload and manage special projects. •Affordable Housing – Council adopted the Affordable Housing Action Plan and Strategy in2023 and approved a full time Housing Administrator to implement the Plan. Council alsodirected staff to divert lodgers’ tax revenue generated by short-term rentals from the GeneralFund to a new Wheat Ridge Housing Fund which has an annual impact on the General Fund of approximately $450,000. •Next Chapter Planning Efforts – several key planning efforts were funded over the lastseveral years including the City Plan, Lutheran Legacy Campus Master Plan, 44th AvenueSubarea Plan, Wheat Ridge Prosperity Plan, Sustainability Action Plan Update, Residential Waste Engagement, Parks and Recreation Pathway, Open Space Master Plan, FacilitiesMaster Plan, Facilities Feasibility Study and Stormwater Master Plan. •Systems Transformation – driven by the goal to improve and streamline permitting andlicensing, the City is currently in the process of moving from legacy systems to modern, user-friendly and secure permitting, licensing, revenue, personnel, core financial and court management systems. The City added one full-time IT Project Manager to implement andadminister these systems, in lieu of hiring a consultant, and set aside funding for initial costsof these modern systems. Annual costs for these new systems will be included in futurebudgets. •Public Safety – funded by ARPA through 2026, the City added two civilian telephone reporttakers to provide additional options for residents to report crime and keep sworn officers onthe streets. Additionally, the City added three officers since 2019, a drone program, mentalhealth resources for sworn employees, increased the sworn pension contribution 1.5% since Staff Report: Budget Update October 7, 2024 Page 2 2020 and invested in a more robust public information program with a full time Public Information Officer. • City Hall Security/Court Marshal Program – Municipal Court was originally staffed with two part-time Court Marshalls to collect prisoners and provide security in the court room. It was almost impossible to find qualified individuals to serve in these part time roles. Following acts of violence at other municipal buildings, the City created three full-time Court Marshalls to rotate between the City Hall customer service/security station, court room security and fulfilling traditional marshal duties. • Recreation Center Funding – Prior to 2020, The Wheat Ridge Recreation Center resided in a special fund which captured the revenues and expenditures of the center and its programming. The fund was self-sustaining due to good interest income yields from the original funding set aside for construction of the Recreation Center. By 2020, the special fund’s reserves were depleted, and the Recreation Center cost centers (facility, aquatics and fitness) and associated revenues were moved into the General Fund. While the Recreation Center charges fees for most services, they only cover approximately 60% of Recreation Center expenses. • Cyber Security – Thanks to the City’s excess cyber security insurance policy and the great partnership with CIRSA, the City was made whole from the 2022 ransomware attack and was able to restore and rebuild in a more robust and secure fashion. However, in order to prevent future attacks and preserve the integrity of data, the City is now expending additional resources on end-point monitoring and detection, updated software, network upgrades, infrastructure improvements and additional remediation. • Employer of Choice – in recent years, the City has prioritized becoming an employer of choice through competitive wages and benefits by aligning more strategically with the market. This has resulted in higher retention and full staffing in high impact areas such as the Police Department, but also higher salary costs and less salary savings from vacant positions. In 2019, the City’s staffing level was 236.375 full time equivalents (FTE) with an approximate annual salary and benefits total of $22,386,295, assuming full staffing. In 2024, the staffing level is 275.250 FTE with an approximate annual salary and benefits total cost of $29,486,035, assuming full staffing. Implementing these new programs and initiatives over the last five years has required substantial increases in capacity to provide the necessary staffing and other resources to be successful. We have been putting resources to work for the community, and we should be proud of these accomplishments. However, this has also resulted in increased General Fund expenditures which have depleted reserves closer to Council’s 17% minimum fund balance. 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 months to determine what monthly revenues will be. Each revenue source is unique and is collected by the City on different timeframes. For example, the five-year historic average percentage for sales tax revenues for the first eight months of the budget year is 56%. This means that, on average, 56% of sales tax revenues are received through August 31st and 44% are received during the remaining months of Staff Report: Budget Update October 7, 2024 Page 2 the year. As an example, from the table below, multiply the historic average percentage for sales tax revenues (56%) by the 2024 Projected Revenue ($26,0011,907) which gives you the Pro-Rated Revenues for January to August ($14,566,668) or what revenues should be received based on historic averages. Next, compare Pro-Rated Revenues with Actual Revenues for January to August ($14,898,296) to determine if the revenue source is over or under projections. In this example, sales tax revenues are $331,628 over pro-rated revenues or 102% 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 eight months of the budget year. Sales Tax $26,011,907 $14,566,668 $14,898,296 $331,628 102% Other Taxes $5,083,000 $3,253,120 $3,335,764 $82,644 103% Use Taxes $5,805,000 $4,469,850 $2,668,717 ($1,801,133)60% Licenses $2,624,100 $1,836,870 $1,093,947 ($742,923)60% Intergovernmental $2,061,391 $1,339,904 $1,690,851 $350,947 126% Services $3,943,752 $2,524,001 $2,921,044 $397,043 116% Fines & Forfeitures $202,500 $141,750 $174,002 $32,252 123% Other $1,424,297 $726,391 $1,403,051 $676,660 193% Total $47,155,947 $28,858,555 $28,185,672 ($672,883)98% (Under) Over Pro-Rated Revenues % Pro-Rated Revenues Revenues 2024 Projected Revenue Pro-Rated Revenues Jan-Aug Actual Revenues Jan- Aug 2024 Projected Revenue: projected General Fund revenues for fiscal year 2024. Pro-Rated Revenues Jan-August: what collected revenues should be for the first eight months based on the historic average of revenues over the last five years: Sales Tax (56%); Other Taxes (64%); Use Taxes (77%); Licenses (70%); Intergovernmental (70%); Services (64%); Fines & Forfeitures (70%); Other (51%); Total (61%). Actual Revenues Jan-August: General Fund revenues received through August 31, 2024. (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. Staff Report: Budget Update October 7, 2024 Page 2 Overall, General Fund revenues are $672,833 under pro-rated revenues or 98% for the first eight months of 2024. General Fund Expenditure Analysis of 2024 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 $556,028 under pro-rated expenditures or 98% for the first eight months of 2024. General Gov't $17,575,832 $11,072,774 $10,969,145 ($103,629)99% Community Dev $3,816,318 $2,213,464 $1,907,418 ($306,046)86% Police $15,146,961 $9,694,055 $10,023,910 $329,855 103% Public Works $7,546,058 $4,301,253 $3,799,231 ($502,022)88% Parks & Rec $7,487,307 $4,567,257 $4,593,072 $25,815 101% Total $51,572,476 $31,848,804 $31,292,776 ($556,028)98% (Under) Over Pro-Rated Expenditures % Pro-Rated Expenditures Expenditures 2024 Adjusted Budget Pro-Rated Expenditures Jan-Aug Actual Expenditures Jan-Aug 2024 Adjusted Budget: 2024 budget as adopted by City Council with the addition of supplemental budget appropriations through August 31, 2024. Pro-Rated Expenditures Jan-Aug: what expenditures should be for the first eight months based on the historic five-year average of expenditures for the eight months of the year. Historic Averages: General Gov’t (63%); Community Dev (58%); Police (64%); Public Works (57%); Parks & Rec (61%); Total (62%). Actual Expenditures Jan-Aug: General Fund expenditures through August 31, 2024. (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, City Attorney, City Clerk’s Office, City Treasurer, Central Charges, Municipal Court and Administrative Services. Staff Report: Budget Update October 7, 2024 Page 2 General Fund Revenue Analysis – 2023 and 2024 Comparison Total General Fund revenues are slightly higher (0.1%) for the first eight months of 2024 compared to the same period in 2023. Sales Tax $14,027,798 $14,898,296 6.2% Other Taxes $3,228,751 $3,335,764 3.3% Use Taxes $3,872,316 $2,668,717 -31.1% Licenses $1,680,735 $1,093,947 -34.9% Intergovernmental $1,374,747 $1,690,851 23.0% Services $2,602,734 $2,921,044 12.2% Fines & Forfeitures $125,523 $174,002 38.6% Other $1,249,732 $1,403,051 12.3% Total $28,162,336 $28,185,672 0.1% Revenue 2023 8-Months 2024 8-Months Percentage Change  Total sales tax revenue is up compared to the same period last year experiencing a 6.2% increase and is at 102% of pro-rated revenues. This is encouraging, because the City saw a decline in sales tax revenues in 2023 and did not meet the original 2023 budget by a deficit of 6% (-$1,554,084). The increased investment in retail development in Wheat Ridge is the primary reason for this increase.  Other tax revenue is up 3.3% compared to the same period of 2023. Overall, other taxes are tracking as projected at 103% of pro-rated revenues despite a decrease in telephone occupation tax revenue because of the per line reduction in 2023. The primary reason for $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$9,000,000$10,000,000$11,000,000$12,000,000$13,000,000$14,000,000$15,000,000$16,000,000 Sales Tax Other Taxes Use Taxes Licenses Intergovernmental Services Fines & Forfeitures Other 2023 2024 Staff Report: Budget Update October 7, 2024 Page 2 this increase is the increased valuation of property in Jefferson County which has increased property tax revenue approximately 22%.  Use tax revenue is down approximately 31.1% primarily due to a significant decrease in building use tax, both from the prior year and to the projected budget where this revenue category is at 60% of pro-rated revenues. While staff budgets for these revenues conservatively, several development projects that appeared to be moving forward in 2023 and 2024 have been delayed, accounting for this sharp decline. Most of these projects are still on track for development which will generate additional use tax revenue in 2025.  License revenue is down 34.9% primarily due to a decrease in building permit activity as described above. Total license revenue is at 60% of pro-rated revenues.  Intergovernmental revenue is up 23% primarily due to increases in Highway Users Tax, County Road and Bridge and a one-time $200,000 federal grant for the Clear Creek Maker Space. Total intergovernmental revenue is at 126% of pro-rated revenues.  Service revenue is up approximately 12.2% over the same period in 2023 primarily due to an increase in recreation-related fees and charges. Total service revenue is at 116% of pro-rated revenues.  Fines & Forfeitures revenue is up approximately 38.6%, primarily due to traffic enforcement. As the Police Department is fully staffed, personnel are available for enforcement activities which, in addition to keeping the community safe, yield revenue. Total fines and forfeitures revenue is at 123% of pro-rated revenues.  Other revenue is up 12.3% primarily due to interest revenue because of the City Treasurer’s prudent investment strategies, the renewed collection of Xcel Solar Garden credits, and miscellaneous income including the collection of restitution for damaged property and increased cell tower lease fees. Total other revenue is at 193% of pro-rated revenues. General Fund Expenditure Discussion In addition to the growth in services and personnel discussed earlier in this memo, the City, just like our neighboring jurisdictions, business owners and residents, has experienced some significant cost escalations in goods and services in the past few years, some in excess of 100%. A few examples include: • Property and casualty insurance has increased 98% due to the cost of law enforcement liability and wind and hail events in the region. In 2019, the City’s cost for property and casualty insurance was $283,062; in 2024, the cost is $562,750 for similar coverage. • Victim outreach services has increased 127% due to the lack of grant funds to support this work and the demand for services. In 2019, the City’s cost was approximately $75,000; in 2024, that cost is $170,316. Staff Report: Budget Update October 7, 2024 Page 2 • Enterprise-wide software, such as Microsoft licenses, has increased 115% due to general price increases and the migration towards the most updated and supported versions in order to stay secure. In 2019, the City spent $77,485 on Microsoft licenses. Today, the cost for Microsoft software is $163,115. • Personnel Costs have risen as discussed earlier. While the City has a pay for performance program that rewards employees based on performance, the City granted a cost-of-living wage increase in 2022 along with many neighboring jurisdictions that in turn increased costs in all future years. Costs for many core positions have increased between 20 and 35 percent in the last five years. Benefits have increased approximately 10 percent in the same period. General Fund Reserves and Overall Financial Position 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 expenditures, as recommended by the Government Finance Officers Association. The City’s maximum unrestricted fund balance shall not exceed 35% of General Fund operating expenditures. Not precluding the aforementioned minimum and maximum percentages, the City will annually target to maintain a 25% unrestricted fund balance percentage level as part of its annual budget process. The unrestricted fund balance at the end of fiscal year 2023 totaled $13,714,632 or 30.6% of General Fund operating expenditures. Fiscal year 2023 expenditures were approximately $5,000,000 less than budgeted and revenues were approximately $800,000 more than projected. The unrestricted fund balance at the end of 2024 is estimated to decrease to $8,792,045 or 17.8% of General Fund operating expenditures. The decrease in fund balance is due to several factors including the carryover of funds from 2023 for planning efforts (City Plan, Wheat Ridge Prosperity Plan, Sustainability Action Plan); vehicles that had been ordered but not received; and other budgeted projects that were not completed in 2023; all of which lowered 2023 actual expenditures but increased the 2024 budget. The additional revenue is attributed to an error in building use tax collection that was refunded to the customer by the contractor who collected the payment. This overcollection and subsequent repayment benefited the City and accounts for the overcollection of revenues. At the end of 2024, the City’s fund balance, inclusive of restricted amounts, is estimated to include the following: Reserved for emergencies (3%) $1,485,663 Reserved for ARPA uses $1,676,011 Reserved for Channel 8 $ 155,606 Fruitdale loan liability $1,085,000 Total Restricted $4,402,280 Staff Report: Budget Update October 7, 2024 Page 2 Conclusion For several reasons discussed in this memo, the City’s unrestricted fund balance is closer to Council’s minimum than the targeted 25%. The rationale behind the target is that the City is protected should it experience a devasting event (like a pandemic, ransomware attack or business closure) or should the region enter a recession. Due to a drop in sales tax in 2023 and building-related revenues in 2024, staff will provide recommendations to Council at the 2025 Budget study session on October 21, 2024 that deviate from prior direction in order to arrive at the 17% minimum unrestricted fund balance at the end of 2025. Additionally, the City leadership team recommends that the City actively works toward returning to the 25% target fund balance over the next two years. As demonstrated here, the City has much to be proud of. Our meaningful work over the past five years has resulted in a much deeper connection to the community, the expansion of services and progress on a number of Council-driven initiatives. The Next Chapter of Wheat Ridge is bright, and there is a strong pipeline of growth and development ahead. The City’s leadership team is excited to partner with Council to strategically manage within budgetary constraints while we rebuild the reserves so that we remain strong and resilient for years to come.