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2023 Recommended Budget Presentation2023 Recommended Budget CITY COUNCIL STUDY SESSION SEPTEMBER 8 , 2022 Agenda 1.Budget Process & Foundations 2.OpenGov Introduction & Navigation 3.2023 Recommended Budget Overview •Budget Overview •Key Themes •Capital Improvement Program Overview •Investments by Goal Area 4.Future Budget & Policy Considerations •Ongoing Funding Implications (2023 Budget & ARPA) •Expiring Taxes •Master Plan Process Alignment •Underfunded Needs •Potential Library Budget Reallocation 29/8/2022 2023 RECOMMENDED BUDGET Budget Process & Foundations 9/8/2022 32023 RECOMMENDED BUDGET Council Budget Approval Process 9/8/2022 4 City Manager prepares & submits a Recommended Budget to City Council By Charter, the budget must be adopted by December 1 Annual formal Council actions •Ordinance adopting 2023 Budget •Ordinance appropriating monies by Fund “Annual Appropriations Ordinance” (expenditure authority) •Resolution setting the property tax mill levy •Ordinance setting fees Appropriations lapse at end of year except •Capital projects -due to the typical length of capital projects •Operating funds encumbered by contract Annual Budget adjusted during the year through “Adjustments to Base” 2023 RECOMMENDED BUDGET City of Boulder Funds 9/8/2022 6 Fiduciary Funds General Fund Capital Project Funds Enterprise Funds Internal Service Funds Pension Trust Funds .25 Cent Sales Tax Community Development Block Grant Planning & Development Services Boulder Junction Improvement Boulder Junction Access GID Parking Compensated Absences Fire Pension Affordable Housing Community Housing Assistance Program Recreation Activity Community, Culture, Resilience, & Safety Tax Downtown Commercial District Computer Replacement Police Pension Airport Eviction Prevention & Rental Assistance Services Sugar Sweetened Beverage Distribution Tax Governmental Capital Stormwater/Flood Management Utility Dental Self-Insurance Boulder Junction Access GID TDM HOME Investment Partnership Grant Transit Pass GID Permanent Park & Recreation University Hill Commercial District Equipment Replacement Boulder Municipal Property Authority Library Transportation Development Wastewater Utility Facility Renovation & Replacement Capital Development Lottery Transportation Water Utility Fleet Operations & Replacement Climate Action Plan Open Space Medical Self-Insurance Property & Casualty Insurance Telecommunication Workers' Compensation Insurance Proprietary FundsGovernmental Funds Special Revenue Funds 2023 RECOMMENDED BUDGET City of Boulder Funds –% of 2023 Budget 9/8/2022 72023 RECOMMENDED BUDGET Revenue Types 8 Ongoing •Taxes •Charges for services •Intergovernmental revenue -formula One-time •Grants •Fund balance •Tax or fee with short expiration 9/8/2022 2023 RECOMMENDED BUDGET Expense Types 9 Personnel Operating Capital Ongoing – requires ongoing revenue •Standard FTE •Recurring seasonal and temporary staff •Supplies to support staff •Recurring contract services •Facilities maintenance •Major maintenance •Apparatus/Equipment replacement One-time – can be funded with ongoing or one-time revenue •Fixed-term FTE for pilots or projects •Temporary staff for events or projects •Supplies and contract services for pilots and specific projects •Projects 9/8/2022 2023 RECOMMENDED BUDGET 10 Sustainability + Resilience Framework Council Retreat & Priorities Set Department Work and Budget Planning Peer Review Team & Central Budget Development Executive Budget Team Review Council Study Session Public Hearing/First & Second Reading/ Adoption Budget Cycle January January - May May-June June-July September October 9/8/2022 2023 RECOMMENDED BUDGET Sustainability, Equity, and Resilience Framework 9/8/2022 112023 RECOMMENDED BUDGET Budgeting for Community Resilience Citywide program & project inventory and alignment Revised budget process and enhanced decision- making process Development of outcomes & key performance indicators Implementation of new budgeting & Transparency tool 9/8/2022 122023 RECOMMENDED BUDGET New Budgeting Process –Early Returns •Ensure Availability of Resources for Core Work •Adequate Investment in Staff and Positions •Address Known Inflationary Pressures Department Base Budgets •More Accurate Personnel Budgeting •Opportunities for Central Service Delivery •Better Budget-to-Actuals Performance Improved and Enhanced Expenditure Forecasting •Cross-Departmental Solutions Earlier in Process •Enhanced Creativity to Meet Demand New and Expanded Collaborations 9/8/2022 132023 RECOMMENDED BUDGET •Executive Budget Team (EBT) sets priorities for budget development •Key assumptions are developed to begin to understand structure of budget •Budget team works closely with departments to develop proposals aligned with citywide goals •EBT prioritizes and develops funding strategies to maximize reach of budget investments Strategic Budget Development –Process Enhancements 2023 Recommended Budget Funding Strategy Review of Intended Outcomes Alignment with Citywide Goals & Council Priorities Overall Budget Development Guidance Department Collaborations & Submissions 9/8/2022 152023 RECOMMENDED BUDGET Towards Performance & Budget Year 1 •Comprehensive Program/Project Inventory •Greater Transparency •Improved Decision-Making Process Year 2 •All Programs Specify Intended Outcomes and Associated Measurements •Citywide KPIs are Identified Year 3 •KPIs are Utilized to Guide Budget Decisions •Focus on Realignment of Resources to Achieve Intended Outcomes 9/8/2022 162023 RECOMMENDED BUDGET Boulder OpenGov INTRODUCTION AND NAVIGATION 9/8/2022 172023 RECOMMENDED BUDGET Major Assumptions/Drivers 9/8/2022 182023 RECOMMENDED BUDGET Summary of Major Assumptions/Drivers Less cautious Retail Sales Tax forecast –provides more ongoing dollars available Spend down Fund Balance after Reserves for one-time priority projects and pilot programs Achieve 20% General Fund Emergency Reserve levels 2023 “Base Budget” Includes 2022 adjustments to base (ATBs) that are ongoing Improves expenditure forecasting to maximize use of resources to invest in community Proactively addresses inflationary pressures Continues investments in city staff to effectively retain, reward, and recruit talent 9/8/2022 202023 RECOMMENDED BUDGET 2023 Sources 9/8/2022 212023 RECOMMENDED BUDGET Sales Tax Forecast •University of Colorado Leeds School of Business •Econometric Model •National economic indicators –Moody’s Analytics •State and local economic indicators •City of Boulder historical sales and use tax collections •Output is a range of possible values •High •Medium –most likely •Low •Because of uncertainty –utilized the average of the medium/low for 2020-2022 budgets 9/8/2022 222023 RECOMMENDED BUDGET 9/8/2022 26 •2023 Budget based upon 2023 Medium •Actual collections have outperformed the model •Caution already built into CU’s current model •Using Moody’s Scenario for inputs that includes a mild recession •Risks remain, staff will continue to monitor actual collections 23.6 26.6 26.5 27 27.5 24.2 27.3 27.2 27.7 28.2 7.9 8.9 8.8 9 9.29.5 10.6 10.6 10.8 11 56.4 63.4 63.3 64.4 65.5 0 20 40 60 80 100 120 140 160 2021 Actuals 2022 Revised 2023 Med-Low 2023 Med-Low/Mid 2023 Medium 2023 Retail Sales Tax Scenarios Transportation Open Space 0.25 Parks & Rec CCRS General Fund 1.5%3.4%-0.1%12.5% 2023 RECOMMENDED BUDGET General Fund Emergency Reserves 28 •Vulnerability to extreme events •Revenue source stability •Expenditure vulnerability/ opportunities GFOA Best Practice minimum 16.7% adjusted for specific risk factors •Borrowing for major capital investmentsBond Ratings Factor > 15% Very Strong •Recreation Activity Fund •Planning & Development Services FundSupport for Other Funds “Reserves … provide a government with options to respond to unexpected issues and afford a buffer against shocks and other forms of risk.” GFOA •Council Goal •2023 Recommended Budget 20% 9/8/2022 2023 RECOMMENDED BUDGET General Fund –Reserve Levels 30 Key takeaways: •Long-standing Council goal to achieve 20% emergency reserve level •Drawing down Fund Balance After Reserves – one-time funding -to fund priority pilot programs and projects19% $25.6 $23.1 $27.0 $30.3 $33.4 $34.4 $15.0 $7.9 $11.8 $7.3 $8.0 $6.4 $10.3 $0.0 $2.3 $18.9 $8.1 $0.0 $0 $10 $20 $30 $40 $50 $60 2019 Actuals 2020 Revised 2020 Actuals 2021 Actuals 2022 Projected 2023 Proposed Emergency Reserves Restricted Reserves Fund Balance After Reserves 19.5%16.7%19.5%20%20% 2022 Adjustments-to-Base & 2023 Base Budget 2022 Mid-Year Adjustments: $6.9 million in one- time adjustments $2.3 million in ongoing adjustments •2023 Base personnel up 7.3% over 2022 Budget •Other drivers: Utilities debt service, property & casualty insurance, other inflationary/ contractual obligations 9/8/2022 31 173.3 186.0 104.9 98.8 31.4 33.8 0 50 100 150 200 250 300 350 2022 Adopted 2023 Base Budget 2022 Adopted vs. 2023 Base Budget Personnel Operating Debt Service 2023 RECOMMENDED BUDGET Questions? 9/8/2022 332023 RECOMMENDED BUDGET 2023 Recommended Budget Overview BOULDER OPENGOV 9/8/2022 342023 RECOMMENDED BUDGET 9/8/2022 35 2021 Actuals 2022 Adopted 2023 Proposed Revenue Overview (Excl. Internal Transfers) $399.8M $473.9M $491.0M 2023 RECOMMENDED BUDGET Expenditure Overview(Excl. Internal Transfers) 9/8/2022 36 2021 Actuals 2022 Adopted 2023 Proposed $342.2M $462.5M $513.5M 2023 RECOMMENDED BUDGET TOTAL USES TOTAL USES WITHOUT UTILITIES 9/8/2022 38 2023 Uses Overview 2023 RECOMMENDED BUDGET 2023 v. 2019 (Pre-pandemic) Adjusted for inflation 9/8/2022 40 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 2019 2020 2021 2022 2023 (Proposed) 2019 Budget Adjusted with CPI Annual Budget 2023 RECOMMENDED BUDGET 2023 General Fund Uses Overview 9/8/2022 41 $188.0 Million 2023 RECOMMENDED BUDGET Staffing by Departments 9/8/2022 44 STAFFING LEVELS BY DEPARTMENT 2021 Revised 2022 Approved 2022 Revised 2023 New 2023 Recommended Staffing City Attorney's Office 24.00 24.00 25.00 25.00 City Council 1.00 1.00 1.00 1.00 City Manager's Office 15.73 17.73 18.73 18.73 Climate Initiatives 18.00 19.00 18.00 18.00 Communication & Engagement 17.50 20.50 28.25 1.00 29.25 Community Vitality 40.88 41.88 46.88 0.38 47.26 Facilities & Fleet 39.19 42.19 45.17 1.00 46.17 Finance 43.00 45.00 47.00 2.00 49.00 Fire-Rescue 130.00 133.00 134.00 4.00 138.00 Housing & Human Services 45.10 49.10 57.00 4.25 61.25 Human Resources 22.00 24.00 28.00 2.00 30.00 Innovation & Technology 43.00 46.50 48.20 1.00 49.20 Library 67.50 77.75 75.00 11.00 86.00 Municipal Court 16.35 16.35 16.35 2.00 18.35 Open Space & Mountain Parks 126.35 127.35 128.35 1.00 129.35 Parks & Recreation 125.75 134.00 135.00 5.00 140.00 Planning & Development Services 89.36 92.36 89.90 6.75 96.65 Police 286.40 288.90 287.05 2.00 289.05 Transportation & Mobility 79.02 81.52 89.86 2.00 91.86 Utilities 172.07 178.57 170.97 5.00 175.97 Totals 1,402.20 1,460.70 1,489.71 46.38 1,540.09 2023 RECOMMENDED BUDGET Questions? 9/8/2022 452023 RECOMMENDED BUDGET Budget Highlights 9/8/2022 462023 RECOMMENDED BUDGET 2023 Budget: Highlights Continuation of Core Services/Investments in Staff Wildfire Resilience/Emergency Response Behavioral Health Response Homelessness Services Safe & Managed Spaces Advancing Key Infrastructure Investments Facilities Master Plan CCRS Projects Other Highlights by Goal Area Future Budget Considerations 9/8/2022 482023 RECOMMENDED BUDGET Core Operations, Investments in City Staff INVESTMENTS IN CITY STAFF •Cost of living, job market, and job demands have increased pressure on employee wages over past two years •2023 Recommended Budget continues investments in competitive pay practices and other citywide retention and recruitment strategies •Restorations in training and travel for professional development included •Staff is developing additional strategies to continue to address recruitment and retention issues CONTINUED CORE OPERATIONS •2023 Base Budget includes funding of core operations including: •Water Resources & Treatment ($18 million) •Resources &Stewardship ($6.2 million) •Homelessness Services ($4.2 million) •Eviction Protection & Resolution ($1.0 million) •Patrol Services ($17.8 million) •Recreation & Parks Operations ($17.1 million) •Library Public Services ($3.6 million) •Older Adult & Family Services ($2.5 million) •Risk Management ($7.8 million) •Facility Operational Maintenance ($2.6 million) 9/8/2022 492023 RECOMMENDED BUDGET Wildfire Resilience & Emergency Response BUDGET ENHANCEMENTS = $2,072,811 •$1.1 million to support Emergency Operations (3 new Firefighter positions, continued implementation of ALS) •Additional funds ($420,000) to support Fire Support Services, such as recruitment efforts, training, and wellness •$377,917 to support enhanced urban- wildland interface management through Open Space & Mountain Parks 9/8/2022 502023 RECOMMENDED BUDGET Wildfire Resilience Efforts, Cont. FUTURE FUNDING IMPLICATIONS •Departments submitted over $4.5 million in requests related to wildfire resilience, preparedness, and emergency response •Included in these requests were enhanced community outreach & education, land & property management/mitigation, and response efforts •General Fund not in position to supportallrequests in year one •Council recommended new Climate Tax would support at least $1.5 million in additional wildfire resilience efforts 9/8/2022 512023 RECOMMENDED BUDGET Homelessness Solutions & Behavioral Health Response TOTAL ENHANCEMENTS: $1.7 MILLION •Homelessness Solutions •$750,000 for 2023 operational expenses associated with a day service center •Capital costs will be incurred,but notcurrentlyincluded in 2023 budget •Behavioral Health Response •$965,000 to fund a non-law enforcement response pilot program •The “Community Alternative Response Program” will focus on dispatching EMS and clinicians to certain types of calls for service 9/8/2022 522023 RECOMMENDED BUDGET Case Management & Community Court •Boulder Municipal Court started the community court program in early 2020 •Department of Justice grant ($400,000) received in October 2020 for program, expires in September 2023 •Program focuses on a combination of alternative sanctions, connections to supportive housing, services, and other strategies to reduce quality-of-live violations and barriers to successful interaction with the Court •2023 Budget recommended funding to continue program after grant funding ends and to allow for permanent hires for community court coordination and case management services ($372,874) 9/8/2022 532023 RECOMMENDED BUDGET Safe & Managed Spaces TOTAL ENHANCEMENTS: $1.3 MILLION 2023 Recommended Budget proposed extension and expansion of safe & managed spaces programming: •Encampment Management •Urban Parks Ranger Program •Downtown Ambassador Program 9/8/2022 542023 RECOMMENDED BUDGET Safe & Managed Spaces –Budget Detail PILOT FUNDING AUTHORIZED IN MAY 2021 (18-MONTH COSTS) •Encampment Management ($530,000) •Ambassador Program ($568,000) •Urban Parks Ranger Program ($186,000) •Pro-Rated Dedicated Police Unit ($384,860) Ongoing funding authorized in 2022 Budget: •$1.3 million for dedicated police unit •~$300,000 for encampment management team (funded in Stormwater & Flood Management Fund) PROPOSED FUNDING IN 2023 BUDGET One-Time Funding for Pilot Extension: •Ambassador Program ($372,000) •Urban Parks Ranger Program ($305,506) Ongoing Funding Proposal: •Encampment management additional team and equipment ($445,786 ongoing; $270,000 one-time –funded in General Fund) 9/8/2022 552023 RECOMMENDED BUDGET Safe & Managed Spaces –Budget Detail PILOT FUNDING AUTHORIZED IN MAY 2021 (18-MONTH COSTS) •Encampment Management ($530,000) •Ambassador Program ($568,000) •Urban Parks Ranger Program ($186,000) •Pro-Rated Dedicated Police Unit ($384,860) Ongoing funding authorized in 2022 Budget: •$1.3 million for dedicated police unit •~$300,000 for encampment management team (funded in Stormwater & Flood Management Fund) PROPOSED FUNDING IN 2023 BUDGET One-Time Funding for Pilot Extension: •Ambassador Program ($372,000) •Urban Parks Ranger Program ($305,506) Proposed Budget Enhancement: •Encampment management additional team and equipment ($445,786 ongoing; $270,000 one-time –funded in General Fund) 9/8/2022 562023 RECOMMENDED BUDGET Capital Improvement Program Overview •2023-28 Capital Improvement Program •$159.3 million in new appropriation for 2023 •$745.2 million in planned spending over the six-year period supporting over 200 capital projects •Community, Culture, Resilience, Safety Tax •$28.1 million in 2023 for capital project investments and community non-profit grants •$47.1 million in planned spending for 14 projects over the six-year CIP 9/8/2022 572023 RECOMMENDED BUDGET CIP Financial Overview by Department $745.2 million in planned spending over six-year horizon for 200 projects Utilities and Transportation projects comprise over 70% of CIP $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 $200,000,000 2023 2024 2025 2026 2027 2028 2023-2028 Capital Improvement Program by Department Utilities Transportation Fire Parks and Recreation Open Space & Mountain Parks Innovation & Technology Facilities & Fleet Community Vitality Fundwide / Citywide 9/8/2022 582023 RECOMMENDED BUDGET CIP Financial Overview by Type Over 85% of planned spending to support capital enhancements and capital maintenance $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 $200,000,000 2023 2024 2025 2026 2027 2028 2023-2028 Capital Improvement Program by Project Type New Facility/Infrastructure Land Acquisition Capital Planning Studies Capital Maintenance Capital Enhancement 9/8/2022 602023 RECOMMENDED BUDGET Capital Improvement Program: 2023 Project Highlights 9/8/2022 61 Fire Station 3 Alpine-Balsam Implementation Key Capital Planning Initiatives Multi-Modal Transportation Enhancements •Continued investment in relocation and replacement of Fire Station 3 ($14.5 million in 2023) •Construction complete Q1 2024 •Implementation of the Facilities Master Plan and Alpine-Balsam Area Plan •Includes $7.3 million in 2023 for continued planning, flood mitigation, and maintenance •Key CCRS planning investments for East Boulder Community Center ($1.5 million) and Civic Area Phase II ($0.5 million) •Investments for 30th St. Corridor Improvements ($4.8 million), 28th St. & Colorado Avenue Improvements ($2.5 million) and East Arapahoe Multi- Use Path and Transit ($1.3 million) 2023 RECOMMENDED BUDGET Governmental Capital Fund Overview –2023 Proposed 9/8/2022 62 Financial system replacement Alpine-Balsam Implementation (Western Hub Planning & Flood Mitigation) Council Chambers AV System Upgrade Public Art Signage Police Robot Replacement 2023 RECOMMENDED BUDGET Community, Culture, Resilience, Safety (CCRS) –CIP Overview 9/8/2022 63 Fire Station 3 Xcel Energy Streetlight Acquisition Non-Profit Support Program Planning for Boulder Creek, Civic Area Phase II, East Boulder Community Center Safer Main Streets: 30th Street Improvements and 28th Street Improvements 2023 RECOMMENDED BUDGET Questions? 9/8/2022 642023 RECOMMENDED BUDGET Budget by Goal Area 9/8/2022 652023 RECOMMENDED BUDGET Sustainability, Equity, and Resilience Framework 9/8/2022 662023 RECOMMENDED BUDGET Livable $24.5 million base budget $18.5 million in new investments •(New)Homeless Services & Partnerships ($750,000). New investment in day center services. The funding reflects one-time funding to cover likely service needs in 2023; however, this is likely an ongoing service addition. Capital funding is also likely needed and the location and type of facility are currently under development through a facilitated community process. •(New)Behavioral Health Response ($965,000). New pilot program for non-law enforcement response to behavioral health- related calls and other circumstances better suited for medical and/or clinician response. •Community Investments (Affordable Housing) & Compliance ($29.0 million). Programs invest in affordable housing development projects, Community Development Block Grant (CDBG) projects and programs, housing assistance, and human services fund grants. Approx. $15 million reflects as new in budget due to new method of budgeting to better reflect actual expenditures. 9/8/2022 672023 RECOMMENDED BUDGET Healthy & Socially Thriving $40.5 million base budget $3.6 million in new investments •(New)Library Public Services ($715,722). The 2023 budget includes the addition of operations for the North Boulder Library Branch, expected in late 2023. •(New) Arts & Culture ($300,000). New funding in 2023 to advance the Experiments in Public Art Program and bolster public art maintenance activities. Other investments in the CIP include public art signage and new public art installations through CCRS. •(New)Recreation & Parks Operations ($1.1 million). New investments include restoration of swimming lessons at recreation centers, staffing to meet demand of sports and recreation programming, and maintenance activities in parks, including Valmont City Park. •Older Adult and Family Services ($2.5 million). In addition to these safety net services,the East Age Well Center (New) hours will be restored as a part of the proposed 2023 budget. 9/8/2022 682023 RECOMMENDED BUDGET Accessible & Connected $57.3 million base budget $3.0 million in new investments •(New)Transportation Planning & Operations ($12.0 million; $1.6 million new). Includes HOP transit service restorations and transportation demand management (TDM) programming and planning. •(New)Community Engagement ($230,454). Expansion of funding for stipends and programming for the award- winning community connectors program. •(New)Library Community Literacy & Outreach ($276,691). Expanding the community literacy program through the Library including bilingual outreach. •Media & External Communications and Video Services ($2.7 million). These programs provide external communications and other services such as Channel 8. 9/8/2022 692023 RECOMMENDED BUDGET Environmentally Sustainable $53.4 million base budget $2.5 million in new investments •(New)Open Space Wildfire Resilience ($377,917). Investments in enhanced urban-wildland interface management. •(New)Planning & Ecological Services ($783,974). Investments include enhanced forestry maintenance and extension and expansion of the urban parks rangers program to help manage safe public spaces. •Water Resources & Treatment ($18.0 million). Core operations in utilities ensures our clean drinking water and to environmentally sustainable wastewater best practices. •Resources & Stewardship ($6.2 million). Continued investments in ecological restorations, agricultural management, and trail maintenance and related capital projects on city open space. 9/8/2022 702023 RECOMMENDED BUDGET Safe $80.3 million base budget $3.7 million in new investments •(New)Fire-Rescue Emergency Operations ($18.1 million; $1.1 million new). Fire-Rescue emergency operations provide critical life-safety response across the community. •(New) Distribution & Collection System Maintenance ($715,786). Managed by Utilities, this is an expansion of the engagement management team to keep up with demand across public spaces. •(New) Alternative Police Response ($281,552). This program includes enhancements to the animal protection unit and expands the red-light camera program. •Patrol Services ($17.8 million). Police patrol services contribute to the safety of the community through proactive and engaging policing. 9/8/2022 712023 RECOMMENDED BUDGET Responsibly Governed $85.4 million base budget $2.0 million in new investments •(New)City Clerk Administration ($250,000). The budget includes for implementation of ranked-choice voting. •IT Infrastructure Services ($5.8 million). This program provides backbone support for the organization to carry out community services and projects. •Risk Management ($7.8 million). This includes our insurance coverage and ADA compliance efforts. •Facility Operational Maintenance ($2.6 million). This program is the main maintenance function for city facilities. 9/8/2022 722023 RECOMMENDED BUDGET Economically Vital $17.2 million base budget $508,572 in new investments •-(New) Budget ($129,572). Added in the 2023 budget is a citywide grant position to help obtain federal, state, and philanthropic grant dollars to advance critical city programs and projects. •-Economic Vitality & District Management ($3.9 million). These programs support a healthy and sustainable local business environment and the complementary services and programs within special general improvement districts. For 2023, this includes the extension of the downtown ambassador program through Downtown Boulder Partnership. 9/8/2022 732023 RECOMMENDED BUDGET 2023 Recommended Budget Recap Exciting budget process improvements Advances our commitment to equity Crucial investments in city staff Addresses top community and council priorities Maintains commitment to core services 9/8/2022 742023 RECOMMENDED BUDGET Future Budget & Policy Considerations Ongoing Funding Implications (2023 Budget & ARPA) Underfunded & Unfunded Needs Master Plan Process Alignment Expiring Taxes Potential Library Budget Reallocation 9/8/2022 752023 RECOMMENDED BUDGET Ongoing Funding Implications 2023 BUDGET •Significant investments in key priority areas •The use of one-time funding has allowed several priorities to advance in 2023 •However,many have ongoing fundingimplications, such as •Day services center •Behavioral health response •Recreation services •Safe & managed spaces AMERICAN RESCUE PLAN ACT (ARPA) •ARPA has allowed for current and potential transformative investments in key areas to support community •Investments are allowed to be committed through 2024 and expended through 2026 •Several currently approved or recommended investments have ongoing implications: •Strengthening mental/behavioral health partners •Guaranteed income program •Economic vitality programming 9/8/2022 762023 RECOMMENDED BUDGET Underfunded & Unfunded Ongoing Needs 9/8/2022 77 Program/Initiative Cost Estimate Permanent Behavioral Health Response Program $600,000 -$750,000 Day Services Center Operations >$750,000 Core Operations –Address Current Service Level Demands >$4 million -$5 million Advanced Life Support/EMS Implementation & Other Fire Master Plan >$2 million Implementation of Facilities Master Plan (“Maintain Well”)>$700,000 Recreation Services $1 million -$2 million Continued Investments in City Staff $1 million -$5 million Permanent Safe & Managed Spaces Program $700,000 -$1 million Strengthening Behavioral/Mental Health Partners >$1 million Economic Vitality Initiatives >$1 million Guaranteed Income Unknown 2023 RECOMMENDED BUDGET Master Plans & Budget Process Alignment •12 active or soon to be active master plans •Varied approaches to identifying funding requirements •Most common outlines three tiers –constrained, action, and vision •Inconsistency in definition of three tiers •2023 Recommended Budget continues to address many recommendations across plans •Analysis currently being conducted to determine unfunded needs •After budget adoption, suggested process to work with FSC to better align budget strategy and master plans 9/8/2022 782023 RECOMMENDED BUDGET Expiring Taxes March 2023: Existing Climate Action Plan Tax ($1.9 million) December 2024: 0.15% General Fund Sales Tax December 2025: Existing Utility Occupation Tax ($2.0 million) 9/8/2022 802023 RECOMMENDED BUDGET Potential Library Budget Reallocation Study Session item scheduled for September 22 Availability of library-related budget for reallocation depends on November ballot initiative to create Library District Process will focus on needs inventory and prioritization in advance of the 2024 Budget cycle 9/8/2022 812023 RECOMMENDED BUDGET Overview of Recommended Approach FSC Reviews Process (August) Department Inventory of Funding Needs (August-October) Council Reviews Preliminary Process (September) Prioritization of Needs with FSC (November-December) Council Reviews FSC Recommendations (January) Recommendations Inform 2024 Budget (May-Oct 2023) 9/8/2022 822023 RECOMMENDED BUDGET Potential Categorization for General Fund Needs Core Operational Needs Program/Service Enhancements Aligned with Established Policy New Investments Aligned with Established Policy New or Expanded Investments to Meet Emerging Community Needs Tax Relief & Rebate Considerations 9/8/2022 832023 RECOMMENDED BUDGET Towards Performance & Budget Year 1 •Comprehensive Program/Project Inventory •Greater Transparency •Improved Decision-Making Process Year 2 •All Programs Specify Intended Outcomes and Associated Measurements •Citywide KPIs are Identified Year 3 •KPIs are Utilized to Guide Budget Decisions •Focus on Realignment of Resources to Achieve Intended Outcomes 9/8/2022 842023 RECOMMENDED BUDGET Recommended Process/ Upcoming Key Dates September 23: Deadline for Hotline Proposed Changes September 28: Final Memo/Approp. Ordinance Due for October 6 Meeting October 6: 1st Reading & Public Hearing October 20: 2nd Reading & Budget Adoption 9/8/2022 852023 RECOMMENDED BUDGET Council Questions 1.Is Council comfortable with the process for any proposed budget changes (if necessary)? 2.Does Council have any suggested substantive changes to bring forward on October 6? 9/8/2022 862023 RECOMMENDED BUDGET