5A - Ord 8500 Special Adjustment to Base PresentationCity of BoulderFinance DepartmentSpecial Adjustment-to-BaseBoulder City Council MeetingMarch 15, 2022
City of BoulderFinance Department1.Budget Adjustment Overview2.Process for Budget Adjustments3.Marshall Fire/Straight-Line Wind Event4.Community, Culture, Resilience and Safety (CCRS) Tax Initial Appropriation 5.American Rescue Plan Act (ARPA) Tranche 2 Appropriation Agenda2
City of BoulderFinance DepartmentMarshall Fire & Straight-Line Wind Event Expenses3
City of BoulderFinance Department•Many departments incurred direct expenses related to the fire/wind event•Up to 75% expenses are likely reimbursable under FEMA-Estimated lag time is 9-12 months•Supplemental Appropriation is needed now to ensure departments have adequate budget due to unforeseen expenses-Open Space & Mountain Parks: trailhead restoration, farm structure rebuilds, continued damage staff support ($1.7 million)-Parks & Recreation: Boulder Creek bridge replacement, debris removal ($379k)-Housing & Human Services: Manufactured housing support, meals ($48k)-Public Safety Overtime: Fire-Rescue ($52k), Police ($7k)Marshall Fire & Straight-Line Wind Event Expenses4
City of BoulderFinance DepartmentCommunity, Culture, Resilience, & Safety Tax Initial Appropriation5
City of BoulderFinance Department15-Year Tax$185,000,000City - 90% Non-Profits - 10%*$167,000,000 $18,000,000Avg. Annual Revenue**$11,100,000 $1,200,000Ballot Language & Funding Levels•Titled “Community, Culture, Resilience and Safety Tax”•Extended 15 years through 2036•Renewal of 0.3% sales and use tax•Ballot language flexibility•No specific “must do” projects and no specified funding levels by projects•Authorization to issue debt*Up to 10% of tax revenue**Assumes 3% Annual Revenue Growth – Approximately $10M in 2022
City of BoulderFinance Department•Over $66 million in capital projects was previously identified as “immediate”•Need to scoping and prioritize appropriate projects for borrowed funds-Most projects should have a timeline of completion within 3 years from debt issuance (~85% of total funding)•Ideally aligned with 2023-2028 CIP development and other federal resourcesPlanning for Debt Issuance & Resource Alignment2023-2028 Capital Improvement PlanCCRSInfrastructure BillARPA
City of BoulderFinance DepartmentEarly 2022• Identify Projects for Initial Appropriation:• Shovel-Ready• Meets a pressing community need• Aligns closely with ballot language March-June 2022• Identification of projects eligible for CCRS and within 3-5 yr time horizon• Determine if debt issuance is required and at what level• Aligned with CIP process to determine best source of fundingJune - October 2022• Discuss potential structure of the non-profit support component with Council (June)• Begin engagement activities• Set up structure for program and prepare to launch 2023+• Identify CCRS eligible projects and ensure scoping and planning through regular process• Provide consistent, timely updates to community and council Process for CCRS Funding
City of BoulderFinance Department•Constituent Relationship Management (CRM) Software -$450,000 in CCRS (total project cost = $750,000)-Complete replacement of current system-Significant upgrade to industry leading platform to greatly improve how residents can interact with the City•Enterprise Data Platform-$650,000 in CCRS (total project cost = $1.65 million)-Continued development of the City’s cloud-based enterprise data platform-Project goal is to streamline and automate data analysisInitial CCRS Appropriation9
City of BoulderFinance Department•Safer Main Streets Multimodal Projects-$550,000 in CCRS (total project costs = $10.2 million)-30thStreet Multimodal Project and safety enhancements at 28thStreet & Colorado Ave.-Projects funded through CCRS, Transportation Fund, CDOT, and DRCOG-Projects must be completed by June 2024•Fire Station 3-No CCRS funding currently being appropriated -In this adjustment, funds set aside, but not yet appropriated from Governmental Capital Fund ($5.4 million) and Capital Development Fund ($2.3 million)-Construction likely to being this summer-Future gap of $11-12 million likely to be requested from CCRSInitial CCRS Appropriation10
City of BoulderFinance DepartmentARPA Tranche 2 Recommended Funding 11
Area of Focus/Outcome AreaTranche 2 InitiativeRecommended ARPA FundingPublic Health & SafetyContinued Housing and Human Services Recovery Programming $500,000Affordability & Service AccessEmergency Response Connectors Program $191,000Guaranteed Income Pilot Exploration $250,000Building Home Project $1,500,000Fiber/Smart City Phase 2 Design $50,000Childcare Industry Stabilization $100,000Community & Economic Resilience Continued Economic Recovery Programming $900,000Economic Recovery Planning – Strategy Development $100,000Arts & Culture Industry Support - Workforce Incentive Grants $915,000Reestablish Programs for Artists, COVID-19 Work Projects $300,000Total Recommended Tranche 2 Funding$4,806,000Tranche 2 Recommendations
City of BoulderFinance Department•Guaranteed Income Pilot Exploration-Amount not changed, but May 24 Study Session added prior to any expenditure•Move up $100,000 to support childcare industry -Start-up grants for SBDC program participants -Competitive grants to support existing providers in Boulder•Add $230,000 to economic recovery initiatives ($550,000 total)-BIPOC-owned business navigation assistance and commercial space opportunities-Targeted small business grants-Additional $100,000 to CVB for continued tourism, safe visitation promotion Overview of Proposed Changes (after study session)13
City of BoulderFinance DepartmentOverview of Recommended FundingTotal $20.15 million in two installmentsSecond installment of funding expected in July 2022Spending must be committed by December 2024Funds must be expended by December 2026Boulder Local Relief Funds Allocation14Service Restorations, $868,600 Immediate Needs, $2,108,400 Public Health Reserve, $1,000,000 Tranche 2, Continued Recovery Initiatives, $1,400,000 Tranche 2, Transformative Initiatives, $3,406,000 Remaining Funding/Tranche 3, $11,370,269 ARPA FUNDING OVERVIEWTranche 1 –Approved in September 2021,$3,957,000
City of BoulderFinance Department•Motion to Adopt, on First Reading, Ordinance 8500, Special Adjustment to Base for 2022Motion Language15