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HomeMy WebLinkAbout2022-09-26 (Special) Meeting Agenda Packet Please note: If you have a disability and need auxiliary aids or services, please notify the City of Englewood (303-762-2405) at least 48 hours in advance of when services are needed. Council Chambers Englewood, CO 80110 AGENDA City Council Special Meeting Monday, September 26, 2022 ♦ 6:00 PM Council dinner will be available at 5:30 p.m. To view the meeting, please follow this link to our YouTube live stream link: https://www.youtube.com/watch?v=MPg3CNEfEp4 I. Call to Order II. Pledge of Allegiance III. Roll Call IV. Englewood Downtown Development Authority 2023 Budget Presentation 6:05pm - 6:50pm a. Executive Director of the Englewood Downtown Development Authority Hilarie Portell will be present to discuss EDDA 2023 Budget Presentation IVa Information & Direction Presentation: 15 minutes Discussion: 30 minutes V. Public Rights of Way Discussion 6:50pm - 7:10pm a. Assistant City Manager Tim Dodd, Deputy Director-Engineering and Asset Management Tim Hoos and, Deputy Director-Operations and Maintenance Chris Edelstein will be present to discuss Public Rights of Way. Va Information & Direction Presentation: 10 minutes Discussion: 10 minutes VI. Contracting for Emergency On-Call Water Line Repair Services 7:10pm - 7:35pm a. Director of Utilities and South Platte Renew Pieter Van Ry, and Englewood Utilities and South Platte Renew and Interim Utilities Deputy Director - O&M Josh Roach will be present to provide information on On-Call Water Line Repair Services Contracts. VIa Information Presentation: 10 minutes Discussion: 15 minutes VII. Break - 10 minutes 7:35pm - 7:45pm Page 1 of 159 Englewood City Council Study Session Agenda September 26, 2022 Please note: If you have a disability and need auxiliary aids or services, please notify the City of Englewood (303-762-2405) at least 48 hours in advance of when services are needed. VIII. August 2022 Monthly Financial Report 7:45pm - 7:55pm a. Director of Finance Jackie Loh will be present to review the Monthly Financial Report VIIa Information Presentation: 5 minutes Discussion: 5 minutes IX. Budget Workshop to Finalize the Budget 7:55pm to 8:05pm a. Finance Director Jackie Loh will be present to discuss the 2023 Budget. IXa Information Presentation: 5 minutes Discussion: 5 minutes X. City Charter Review Project 8:05pm - 9:05pm a. Kathryn Sellers, outside legal consultant from Hoffmann, Parker, will be present to review a section of City Charter to determine if Council wishes to propose revisions for voter consideration. Xa Information & Direction Presentation: 30 minutes Discussion: 30 minutes XI. Break - 10 minutes 9:05pm - 9:15pm XII. Mayor’s Choice a. Executive Session for personnel matters under C.R.S. Section 24-6-402(4)(f)(1) specific to amendments to the City Attorney's contract, with outside counsel Kathryn Sellers. XIIa b. Executive Session to discuss the advisability of the acquisition of a real property interest pursuant to eminent domain under C.R.S. Section 24-6-402(4)(a). XIIb XIII. Reports from Board and Commission Council Liaisons XIV. Council Member’s Choice XV. City Manager’s Choice XVI. Adjournment Page 2 of 159 STUDY SESSION TO: Mayor and Council FROM: Hilarie Portell DEPARTMENT: Downtown Development Authority DATE: September 26, 2022 SUBJECT: EDDA 2023 Budget Presentation DESCRIPTION: EDDA 2023 Budget Presentation RECOMMENDATION: Hilarie Portell, EDDA Executive Director, and Troy Bernberg, Northland Public Finance/EDDA Financial Advisor will be present to discuss the EDDA 2023 Budget approved by the EDDA Board. PREVIOUS COUNCIL ACTION: • EDDA 2021 Budget, approved by motion on July 6, 2021 • Intergovernmental Agreement (IGA) between the EDDA and the City of Englewood, approved by ordinance on July 19, 2021 • 2021 EDDA Debt Authorization Ballot Measure, approved by ordinance on July 19, 2021, and subsequently approved by downtown electors on November 2, 2021 • Englewood Downtown Plan of Development, including activation of three tax increment subdistricts, approved by ordinance on September 20, 2021 • Memorandum of Understanding regarding advancement of funds for grant-funded improvements to the South Broadway paseos and crosswalk, approved by motion on November 15, 2021 • Loan Agreement between City of Englewood and Englewood Downtown Development authority, approved by ordinance on January 26, 2021. • EDDA 2022 Budget, approved by motion on February 22, 2022 • Cooperative Agreement with Englewood Public Schools, approved by ordinance on August 1, 2022 SUMMARY: The EDDA Board of Directors adopted its 2023 budget on August 24, 2022, in compliance with the Local Government Budget Law of Colorado, C.R.S. § 29-1-101, et seq. Per the DDA statute, specifically, C.R.S. § 31-25-816, the EDDA submits its proposed annual budget to the city for approval during the normal budget cycle. Due to changes in Arapahoe County’s calculation of tax increment payable to the EDDA in 2023, which changes were released after the EDDA Board’s adoption of the 2023 budget, the adopted budget reflects too much revenue and will need to be amended by the Board at its September 28, 2022, Board meeting. This change in total revenue only impacts the dollars to be put in the EDDA’s reserves; it does not impact any of the budgeted dollar amounts. The budget presented here includes the revised property tax increment revenue projection. Page 3 of 159 ANALYSIS: The EDDA Board of Directors approved the attached 2023 Operational Plan to support its budget with goals, strategies, and tactics. The plan and budget support current City of Englewood priorities and were developed with city department leadership. The operational plan is aligned with the goals and objectives of the adopted Englewood Downtown Plan. The 2023 EDDA operational plan and budget represent numerous ways the EDDA is partnering with city departments. This leverages resources and offsets costs that the city has committed to Downtown priority projects. For example: • The EDDA will continue to assist the Public Works Department with stakeholder outreach for the Old Hampden Complete Streets Project, an estimated offset of $20,000. The EDDA assisted the department with writing a DRCOG grant request for $9 million to undertake detailed planning and construction of improvements. The grant received preliminary approval in July and is pending final approval by the DRCOG Board of Commissioners on September 25. In the unlikely event that the full grant amount is not awarded, the EDDA has budgeted for a possible loan to finance project enhancements. • In response to concerns about ground floor vacancies, lack of foot traffic and safety in the CityCenter core area, the EDDA proposed and organized an interim program to improve the situation until redevelopment activities are underway. The vacant space activation program will involve three organizations focused on local history, small business development and the arts. The EDDA has budgeted for $50,000 to fund and promote this program. In addition, the EDDA is participating in coordinated security and homeless outreach initiatives in the area. • The EDDA is co-funding a micro-transit enhancements study with the Community Development Department for $20,000 each. The goal is to improve service, accessibility, and ridership of the Englewood Trolley. The EDDA is also budgeting $50,000 for detailed planning of the Little Dry Creek greenway project, following a Community Development Department conceptual planning project this fall. • The EDDA has budgeted $50,000 to plan for a permanent “Lights on Broadway” installation and holiday light enhancements on South Broadway. These funds supplement $30,000 allocated for this use in the CIP budget. The budget also includes $50,000 for a gateway sign to downtown at Hwy 285 and South Broadway. This leverages Parks Department budgets for South Broadway holiday lights and the Little Dry Creek Park redesign. • The EDDA will supplement maintenance provided by the city on South Broadway, the paseos, Lincoln Street parking lot, Old Hampden and the Little Dry Creek Plaza. This enhances safety and a sense of welcome on Downtown’s main streets and key entry points for $10,500. COUNCIL ACTION REQUESTED: The study session is intended to present the EDDA 2023 Budget to council and respond to comments or questions. FINANCIAL IMPLICATIONS: The work of the EDDA as represented in the proposed budget will help offset costs that would otherwise be borne by the General Fund through grants and service delivery that offsets or replaces work that would otherwise be performed by the City of Englewood. CONNECTION TO STRATEGIC PLAN: Page 4 of 159 Community Wellbeing Goals: • Build and install all primary secondary gateway elements as identified in the Wayfinding and Placemaking Masterplan • Support initiatives and programs to encourage public arts and culture Transportation and Infrastructure Goals: • Ensure access and increased opportunities for multi-modal transportation • Ensure the safety of all while traveling in Englewood Local Economy Goals: • Develop, implement, and maintain programs designed to retain businesses in Englewood • Support the vibrancy of commercial districts throughout the City • Redevelop and densify CityCenter ATTACHMENTS: EDDA 2023 Operational Plan EDDA 2023 Budget EDDA 2023 Budget Presentation Page 5 of 159 1 Englewood Downtown Development Authority 2023 Operational Plan OVERVIEW The Englewood Downtown Development Authority (EDDA) was approved by downtown voters in November 2020 following a year-long public process. In 2021, the EDDA started its work as a champion for Downtown, working to make it more economically vibrant, connected, safe and green. It set up operating systems and agreements, created a basic marketing program, completed supplementary maintenance on main streets and public spaces, and secured economic recovery grant funds for a public space enhancement project. The City of Englewood provided start-up funding in the form of a loan. Long term, sustainable funding was secured in fall 2021. Englewood City Council approved the Englewood Downtown Plan and authorized the start of tax increment collection in 2022 in the Wellness and South Broadway districts. In November, Downtown voters approved Ballot Measure 6D, authorizing the EDDA to incur debt of up to $70 million over a 30-year period to fund needed Downtown improvements. In 2022, the EDDA continued the momentum by supporting stakeholder engagement and communications for the Old Hampden Improvements Project, helping the city secure grant funding for a HAWK signal on South Broadway, supporting communications for the Little Dry Creek project, implementing a feasibility study for the Little Dry Creek Greenway trail, enhancing South Broadway holiday lighting, and undertaking a downtown parking study. The EDDA worked close with the CityCenter redevelopment project team to identify priorities and an interim vacant space activation strategy. The board approved a TIF investment policy to guide its use of tax increment and financing tools. The EDDA board of directors has identified major project priorities to guide their work in the next five years. These include: •South Broadway Subdistrict: Page 6 of 159 2 o Little Dry Creek Park enhancements o Streetscape and lighting improvements o Alley activation •Wellness Subdistrict o Old Hampden complete street improvements/wayfinding o Micro-transit service o Workforce housing •CityCenter Subdistrict: o An interim vacant space activation strategy o Multimodal connections and planning from CityCenter redevelopment to other downtown areas o Local identity enhancements within the CityCenter redevelopment o Attainable home ownership opportunities for middle class, essential workers within the CityCenter redevelopment Project priorities may shift in response to changing conditions and funding availability. GOALS: 1. Build on the momentum of years one and two 2. Leverage city investments in priority downtown projects 3. Determine financial role for CityCenter master development project 4. Seek eligible grant funding for priority downtown projects 5. Ensure professional administration of the DDA and its programs and projects STRATEGIES/ACTIONS Administrative •Ensure compliance with Colorado DDA Statute and Intergovernmental Agreement with the City of Englewood. •Submit 2024 budget in accordance with the city’s annual budget cycle. •Administer internal working procedures, systems and interface with city departments. •Continue short- and long-term financial planning and use of tax increment and debt. •Comply with Col HB21-1110 regarding website accessibility. Page 7 of 159 3 •Research and apply for state economic recovery and other grant opportunities. Economy, Jobs & Housing Strategically attract and leverage reinvestment in Downtown; Encourage development of a variety of home types at a range of price points to attract those who seek a walkable downtown lifestyle and to build a larger customer base for local business. •Implement CityCenter vacant space activation program in partnership with participating organizations. •Participate in Englewood City Center master developer agreement related to use of TIF funding. •Participate in Englewood unified development code update (CodeNext) as it relates to the regulatory framework for development in the downtown district. •Help recruit new businesses or developers to the downtown district, consistent with the Englewood Downtown Plan. •Track vacancies, new investment, and job creation in the downtown district, consistent with goals in the city’s strategic plan. Marketing Attract consumer spending and new investment to Downtown; Enhance visibility and access to Downtown destinations and amenities •Build awareness and support of downtown through EDDA website, social media, monthly e-newsletters, quarterly print newsletters and city-wide magazine. Enhance social media strategy and reach by adding part-time contractor assistance. •Promote tangible signs of economic recovery and momentum: business openings, expansions, relocations, new development. •Keep downtown stakeholders informed about DDA projects and programs, and opportunities to participate. •Provide grants to support key downtown events organized by other parties. •Design permanent Lights on Broadway installation in collaboration with the Public Works department. Page 8 of 159 4 •Contribute content to city communications department to extend the reach of Downtown communications & marketing to the local consumer market. Promote city content in downtown marketing tactics. •Fabricate and install gateway sign at HWY 285 and South Broadway as part of city’s Little Dry Creek Park improvements. Public Space Enhancements & Placemaking Ensure that the Downtown public realm is clean, safe and accessible to all; work to make design and safety improvements to existing public spaces as well as create new public spaces Downtown; improve the pedestrian experience throughout Downtown; build upon and enhance the sense of local identity for Downtown. •Work with Swedish Hospital, the city, and area stakeholders on conceptual planning for a community park in the Wellness District. •Plan for future funding of public art enhancements for Little Dry Creek Park. •In coordination with the Parks Department, provide supplementary maintenance to Downtown public spaces, including spot cleanup of sidewalks, benches, trash cans, bike racks, sweeping of curb/gutter, picking up litter, weeding, cleaning up graffiti. o Spring & fall cleanups along South Broadway and Old Hampden o Spring & Fall maintenance of South Broadway Paseos o Spring/Summer/Fall supplementary maintenance of Little Dry Creek Plaza o Summer cleanup around the Lincoln parking lot •Be a liaison to the Englewood Police Department, Englewood Environmental Foundation and Tri-City Homeless Action Plan regarding safety issues and responses in downtown areas. •Analyze and pursue grant funding options to leverage city and EDDA investments in downtown placemaking projects. Mobility & Transportation Strengthen the multimodal network between and throughout all districts in Downtown; support and improve the Englewood Trolley; Enhance multimodal mobility and accessibility for all residents through the improvement of transportation corridors; ensure adequate, well-distributed, and well-marked parking supply. Page 9 of 159 5 •Manage stakeholder engagement for the Old Hampden complete street design project; provide public information to downtown stakeholders during utility and surface construction. •Contribute to and participate in a city study to enhance Downtown micro transit service •Participate in city planning and conceptual design for the Little Dry Creek Greenway Trail and Englewood Parkway in the CityCenter area. •If feasible, undertake detailed planning for the Little Dry Creek Greenway Trail. •Plan for parking and multimodal improvements in the South Broadway and Wellness Districts. •Provide public information to downtown stakeholders for HWY 285 bridge project during construction. Land Use & Urban Design Focus redevelopment efforts within the Downtown core; attract high-quality development, encourage compact redevelopment models that promote walkability and best practices in urban design. •Participate in the city unified development code update as it relates to the regulatory framework for development in the Downtown district and alignment with the Downtown Plan. •Participate in CityCenter design guidelines and land use planning. •Serve on CityCenter development review committee. __________________________________________________________________________________ Advocacy Build partnerships to benefit all. •Meet monthly with the City of Englewood Community Development Department and Greater Englewood Chamber of Commerce leadership to share information and coordinate activities. •Work with other organizations and stakeholder groups to advocate and problem-solve in the downtown district. Page 10 of 159 Englewood Downtown Development Authority Proposed 2023 Budget Revenue 2022 Budget 2023 Budget Notes Starting balance 13,000 168,550 2022 rollover Tax increment--property 380,000 700,000 2023 Arapahoe Co, subject to Dec. 10 final tax increment report Tax increment--sales 220,000 250,000 estimated 2% increase over base City Grant Funds Advance 149,325 0 approved by City Council for reimbursement by CDOT Main Streets grant (paseo project) City Loan 150,000 0 start-up funds Government Grants Possible government or foundation grant funding TOTAL REVENUE 912,325 1,118,550 EXPENSES MANAGEMENT Executive Director 108,000 108,000 30 hours/wk, $75/hour, 48 wks. No taxes, insurance, benefits, office or equipment. Administrative Assistant 28,800 28,800 20 hours/wk, $30/hour, 48 wks. No taxes, insurance, benefits, office or equipment. Legal Services 57,000 45,000 Hoffmann, Parker, Wilson & Carberry, P.C. $2,500/mo general counsel, 15K master developer agreement review Financial services 45,000 45,000 Financial model, advising, TIF bonding gap anaysis, quarterly assessment analysis Subtotal 238,800 226,800 DEBT SERVICE City Loan 150,000 150,000 pay off city loan Old Hampden Improvements 0 36,150 Gap financing. First interest payment paid on 12/15/2023. Assumes a 20-year, $2.4 M loan at 6% interest. Starting 2024,annual payment approx $200K Subtotal 150,000 186,150 PROGRAMS Marketing Collateral 5,000 5,000 quarterly print newsletter-copywriting, graphic design. Quarterly magazine copywriting. Printing/mailing 10,200 10,200 quarterly newsletter, 1,900 pieces Digital marketing 15,000 25,000 quarterly website updates, 6 e-newsletters, subscription, advertising, website accessibility updates, ($2,500) social media assistance ($10K) Small projects 7,500 5,000 Event grants 20,000 20,000 Signage 0 50,000 285/Broadway gateway sign at LDC park Subtotal 57,700 115,200 Supplementary Maintenance Main street cleanups 2,000 2,000 Spring and fall supplementary maintenance, S Broadway and Old Hampden Paseos 1,500 3,000 Spring and Fall supplementary maintenance Little Dry Creek Plaza 4,000 4,000 Spring, summer, fall supplementary maintenance of plaza Lincoln parking lot 500 500 summer spot cleanup Misc maintenance, repairs 0 1,000 as needed Subtotal 8,000 10,500 PROJECTS Mobility & Transportation Paseo Improvement project 149,325 0 Micro transit improvements study 0 20,000 matching contribution w Community Development Parking study 30,000 0 Little Dry Creek greenway path 30,000 50,000 detailed planning Old Hampden Improvements 5,000 0 see gap funding detail above for a $2.4M loan CityCenter corridor study 0 2,000 community engagement, communications Public Space Enhancements/Placemaking Lights on Broadway 5,000 50,000 In coordination with Public Works, ($30k allocated in CIP budget). Holiday lights $15K Wellness District park 0 15,000 conceptual design. Possible partnership with Swedish Hospital Flowers on Broadway 5,000 0 Economy, Jobs & Homes Design services/site analysis 10,000 30,000 for possible projects City Center vacant space activation 0 50,000 Subtotal 234,325 217,000 OPERATIONS Supplies, misc expenses 3,000 5,000 County administrative fee 5,700 10,500 property tax collection (1.5%) City IT fees 3,150 3,150 EDDA email licenses (9) Insurance 3,100 3,100 Colorado SDA membership ($600), general/board liability insurance ($2,500) Subtotal 14,950 21,750 Contingency 40,000 50,000 TOTAL EXPENDITURES 743,775 827,400 Excess Revenues Over Expenses 168,550 291,150 Fund Balance - Assigned 168,550 459,700 Board designated fund balance for administration per EDDA Tax Increment Investment Policy. Page 11 of 159 Presented By: Hilarie Portell, Executive Director, EDDA 2023 Englewood Downtown Development Authority Budget Presentation Page 12 of 159 Agenda I.EDDA Overview II.Organizational Structure III.Englewood Downtown Plan Connection IV.2023 Budget V.2023 Enhancements Page 13 of 159 •Quasi-governmental entity formed in 2021 and charged with implementing the Englewood Downtown Plan. •A champion for Downtown, partnering with the City and others to make it more economically vibrant, connected, safe and green. •Led by a board of local business and civic leaders appointed by City Council. •Implement Englewood Downtown Plan •Regulated by Colorado Revised Statute §31-25-801. EDDA Overview Page 14 of 159 Downtown District Page 15 of 159 Organizational Structure EDDA Board of Directors Executive Director Administrative Assistant Contractors Projects Programs Marketing Maintenance City Council appoints Board C.R.S §31-25-801, et seq., governs EDDA Page 16 of 159 The Englewood Downtown Plan Economy, Jobs & Housing Marketing & Programming Public Spaces & Place Enhancements Mobility & Transportation Land Use & Urban Design Page 17 of 159 Englewood Downtown Plan Connection--2023 Plan Section How does the EDDA support the Downtown Plan in 2023? Economy, Jobs & Homes CityCenter vacant space activation project CityCenter public financing agreement Workforce housing partnerships Marketing & Programming Event grants & sponsorships Print and e-newsletters, Citizen magazine Social media Signage Public Spaces, Enhancements & Placemaking Lights on Broadway project Wellness District park conceptual planning Supplementary maintenance: Paseos, S Broadway, LDC Plaza, Old Hampden Safety partnerships Mobility, Parking & Transportation Old Hampden Complete Streets Improvements Micro-transit enhancements study Little Dry Creek Greenway Path planning Land Use & Urban Design CityCenter corridor planning Page 18 of 159 2023 Budget Summary 2022 Budget 2023 Budget Notes REVENUE 912,325 1,118,550 rollover funds, tax increment-property, tax increment-sales, no city loan or grants EXPENSES Management 238,800 226,800 Contract staff, legal services, financial services Programs 65,700 125,700 Marketing, supplementary maintenance Projects 234,325 217,000 See 2023 Operational Plan Debt Service 150,000 186,150 City loan payout, possible project loan Operational Costs 14,950 21,750 Office supplies, meetings, etc. Contingency 40,000 50,000 Opportunities, unexpected costs, matching grant funds TOTAL 743,775 827,400 Excess Rev. Over Exp.168,550 291,150 Project financing, priority projects, program expansion Fund Balance--Assigned 168,550 459,700 Board designated fund balance per EDDA TIF Policy Page 19 of 159 2023 Budget Enhancements Category One time or Ongoing Amount Programs Ongoing $ 60,000 Debt Service Ongoing $ 36,150 Operational Costs Ongoing $ 2,000 Contingency Ongoing $ 10,000 TOTAL $ 108,150 Page 20 of 159 Budget Increase:$ 60,000 Personnel:none Technology: none Description: Additional supplementary maintenance & marketing --spring/fall paseo cleanups --gateway sign --social media assistance •Gateway signage at Hwy 285 & S. Hampden Enhancement #1-Programs Page 21 of 159 Budget Increase:$ 36,150 Personnel:none Technology: none Description: Possible loan—Old Hampden Complete Streets project enhancements Enhancement #2-Debt Service Page 22 of 159 Budget Increase:$ 6,800 Personnel:none Technology: none Description: Office supplies, meetings, fees, insurance •Gateway signage at Hwy 285 & S. Hampden Enhancement #3-Operational Costs Page 23 of 159 Budget Increase:$ 10,000 Personnel:none Technology: none Description: Unexpected costs, opportunities, matching grant funds •Gateway signage at Hwy 285 & S. Hampden Enhancement #4-Contingency Page 24 of 159 •Project costs will increase as projects move from planning to construction •Debt service will increase as EDDA participates in CityCenter redevelopment bond financing and other project financing •Management costs will increase as EDDA expands programming Future Year Considerations Page 25 of 159 15 Questions?Page 26 of 159 STUDY SESSION TO: Mayor and Council FROM: Tim Dodd, Tim Hoos DEPARTMENT: Public Works DATE: September 26, 2022 SUBJECT: Public Rights of Way Discussion DESCRIPTION: Discussion of public rights of way RECOMMENDATION: Receive follow up presentation regarding usage of City Right of Way. PREVIOUS COUNCIL ACTION: This study session item is a follow up to a previous study session on January 24, 2022 regarding how the City regulates its Right-of-Way (ROW). SUMMARY: The City takes a two-prong approach to regulation of its ROW: (1) adoption of binding laws/regulations in Municipal Code; (2) authorizing specific uses and providing additional conditions of use through permitting, franchise agreements, use contracts, and/or licenses. As requested by Council, this study session presentation will focus on item two (2) above to describe how the City implements these conditions in practice. ANALYSIS: EMC Title 11 is dedicated to the regulation of the City’s public ROW and property. Chapter 7 of Title 11 addresses the sole topic of ROW permits and requirements. This Chapter, consisting of 26 pages of regulations, “provides principles, procedures and associated funding for the placement of structures and facilities, construction, excavation, encroachments and work activities within or upon any public right-of-way, and to protect the integrity of the road system and the City's infrastructure. To achieve these purposes, it is necessary to require permits of private users of the public rights-of-way, to establish permit procedures, and to fix and collect fees and charges.” See EMC 11-7-1(A). Contractor Licensing. There are various types of licenses for utility owners/operators to use the City's ROW to operate their system network as follows: Page 27 of 159 • Franchise Agreement • Master License Agreement ROW Construction Permits. The City issues three types of permits for construction work in the right of way • Occupancy • Excavation • Concrete Contractors applying for a permit are required to submit the following information • Completed permit application form • Proposed construction plans or site plan • Proposed traffic control plan • Proposed construction schedule • Proposed public notification letter of upcoming construction • Performance bond in the estimated dollar amount of the proposed construction • Certificate of insurance naming City as additional insured • Staff then reviews the application materials to ensure conformance with regulations before issuing the permit COUNCIL ACTION REQUESTED: None: this presentation is for information only. FINANCIAL IMPLICATIONS: This field is now required. Please contact City Clerk's office with questions. Page 28 of 159 City Right-of-Way (ROW) Licensing and Permitting Tim Dodd, Assistant City Manager, Interim Director of Public Works Tim Hoos, Deputy Director of Public Works – Engineering and Asset Management Page 29 of 159 Generally, ROW includes streets and sidewalks for pedestrian/vehicular traffic; property designated as ROW on plats; and areas acquired by the City for infrastructure and utilities. EMC 11-7-2 defines ROW as follows: Public Right-of-Way or Right-of-Way or Public Way:The total surface area, and the area above and below the surface that is dedicated, deeded, reserved by plat or otherwise owned or controlled by the City for public use for: infrastructure improvements, pedestrians, vehicular movement, parks, utilities, or storm drainage and runoff. Right-of-way:The entire width between the boundary lines of property owned by the City and dedicated by the City for vehicular or pedestrian traffic. What is Right-of-Way (ROW)?Page 30 of 159 The City takes a 2-prong approach to regulation of its ROW: (1) adoption of binding laws/regulations in Municipal Code; and (2) authorizing specific uses and providing additional conditions of use through permitting, use contracts, franchise agreements and/or license agreements. City regulation of ROW Page 31 of 159 The Master License Agreement is a 24-page contractual framework for ROW users not currently covered under a franchise agreement incorporating EMC ROW provisions. The Agreement governs approved usage standards, permitting, construction, notification to citizens, emergencies, public safety, damage, term, termination, abandonment, damages, indemnification, payment to the City, maintenance, traffic control, relocation, mapping of usage, and other various matters. The Agreement also requires a specific individual site license agreement for each specific City ROW location utilized by the licensee. City ROW License Agreement Page 32 of 159 An Agreement to operate a private utility network within the City’s right of way. Existing Franchise Agreements: Xcel Energy Comcast The Agreement governs approved usage standards, permitting, emergencies, public safety, damage, term, termination, abandonment, damages, indemnification, maintenance, traffic control, relocation, mapping of usage, and other various matters. City ROW Franchise Agreement Page 33 of 159 EMC Title 11 is dedicated to the regulation of the City’s public ROW and property. Chapter 7 of Title 11 addresses the sole topic of ROW permits and requirements. This Chapter, consisting of 26 pages of regulations, “provides principles, procedures and associated funding for the placement of structures and facilities, construction, excavation, encroachments and work activities within or upon any public right-of-way, and to protect the integrity of the road system and the City's infrastructure. To achieve these purposes, it is necessary to require permits of private users of the public rights-of-way, to establish permit procedures, and to fix and collect fees and charges.” See EMC 11-7-1(A). EMC Title 11, Chapter 7: ROW Page 34 of 159 All private contractors working in City ROW must obtain a contractor’s license from the City prior to being issued a permit. All work in City ROW requires a permit, except certain routine maintenance (EMC 11-7-4G). Work without a permit must immediately cease, obtain permit, and pay surcharge for unpermitted work. EMC 11-7-4:Permit Required Page 35 of 159 Public Works currently issues three types of permits for construction work in the City’s ROW Occupancy Excavation Concrete Types of ROW permits Page 36 of 159 Completed application form Proposed construction plans or site plan Proposed traffic control plan during construction Proposed construction schedule Proposed public notification letter of upcoming construction Performance bond Certificate of insurance naming City as additional insured Permit application submittal requirements Page 37 of 159 Permit Fees Page 38 of 159 Construction permit language requires the permit holder to provide written notification of construction work that will affect public parking or access to driveways. Contractor contact information is also provided. Public Notification requirements Page 39 of 159 City shall have the right to inspect ROW work at any time to ensure conformance with approved plans or specifications City may reject any defective work or materials, or if it does not meet the requirements of EMC EMC 11-7-11:Inspections Page 40 of 159 Work must be completed by the deadline stated in the permit. Permit is considered void if work hasn’t started within 6 months after issuance, unless extension is granted. EMC 11-7-13:Time of Completion Page 41 of 159 Utility service providers must submit an initial excavation master plan within 60 days of permit application. ROW users meet annually with City regarding master excavation plan. Allow coordination of excavations to reduce disruption, interference, construction activities. ROW users must submit map of ROW usage. Excavations should coordinate with City repaving plan when possible. ROW users must mark their facilities within 7 days of request. EMC 11-7-16: Coordination of Excavations: Joint Planning and Construction Page 42 of 159 Permits revoked for: 1. Violation of any condition of the permit or EMC. 2. Violation of state/local law. 3. Life/safety/property damage issue. Stop Work Orders.Effective immediately, issued for: 1. Working without a required permit. 2. Work in violation of state/local law. 3. Acts that endanger life or property. EMC 11-7-23:Revocation of Permits and Stop Work Orders Page 43 of 159 DISCUSSION - QUESTIONS?Page 44 of 159 STUDY SESSION TO: Mayor and Council FROM: Josh Roach, Pieter Van Ry DEPARTMENT: Utilities DATE: September 26, 2022 SUBJECT: Contracting for Emergency On-Call Water Line Repair Services DESCRIPTION: On-call contracts used for emergency water line repairs on the City’s Water Distribution System. RECOMMENDATION: Utilities staff will be providing background information on three on-call Contracts for Services used for emergency water line repair services for the City’s Water Distribution System. PREVIOUS COUNCIL ACTION: • June 27, 2022 – Change Order No. 1 for Global Underground Corp., Brannan Construction Company and C&L Water Solutions, Inc., to the 2022 Purchase Orders. • March 7, 2022 – Emergency Change Order No. 2 for Global Underground Corp., to the 2021 Purchase Order. SUMMARY: Utilities has historically averaged approximately 40 emergency water main breaks annually, which require an immediate response to mitigate property damage, impacts to the public, and restore water service as quickly as possible. Utilities Distribution & Collections (D&C) staff currently repair water main breaks as resources and staffing are available. However, on-call contracts provide an increased means to rapidly respond to main breaks. In November 2021, Utilities staff competitively solicited for on-call contractor services through a Request for Proposal (RFP) process to identify qualified contractors to assist City staff with urgent repairs to aging water distribution system mains. Three contractors were selected: Global Underground Corp., Brannan Construction Company, and C&L Water Solutions, Inc. City Council approved change orders to the three on-call contracts with the selected firms in the amount of $130,000 each for 2022. Utilities Staff has been balancing the use of contractors and City staff to efficiently repair water line breaks. Since these on-call contracts have been in place, there have been 58 line breaks addressed to date by the contractors and Utilities staff within 48 hours. Utilities staff recommends the continued use of on-call contractors as there has been a rising trend in water main breaks due to the age of the distribution system. The number of water main breaks per year over the last five years is demonstrated in Figure 1. Page 45 of 159 Figure 1: 5 Year Water Main Breaks Trend As can be seen from the graph, there is an upward trend in the number of water main breaks over the last five years. The American Water Works Association (AWWA) standard for number of water main breaks annually is 34 per every 10,000 customer accounts. With approximately 11,000 customer accounts, the number of water main breaks within the City’s system is approaching double the AWWA standard for line breaks in 2022. In addition to tracking the number of main breaks, Utilities staff tracks the location of each break to determine the frequency of breaks on any given main. This can be used identify high-priority capital project areas within the City. These breaks are identified by a red ‘X’ in Figure 2 and have occurred throughout the City over the last five years. Utilities staff is using this information to identify and prioritize replacement of critical water lines as the City ramps up its annual Water Line Replacement Program. Staff recommends the continued use of on-call contracts to supplement the capacity of Utilities D&C staff’s efficiency to rapidly respond to service interruptions and line breaks. Page 46 of 159 Figure 2: 5 Year Water Main Break Locations ANALYSIS: Utilities staff presented a package of three new contracts to perform emergency on-call water line repair services on the City’s Water Distribution System to the Water Sewer Board (Board) during its September 13, 2022 meeting. The Board recommended City Council approve this package of contracts, as each are necessary to respond quickly and efficiently to water line breaks for the remainder of 2022 and in 2023. A summary of the contracts are as follows, and justification memos for each recommended contract are provided as an attachment: On-Call Water Line Repair Contracts – Competitively Selected • New contract for $200,000 for the following contractors: o Brannan Construction Company o C&L Water Solutions, Inc. o Global Underground Corp. While these on-call contracts are being executed, the choice to utilize contractors will be determined on a case-by-case basis depending on the availability of Utilities D&C staff and the complexity of the repair. Entering into these contracts does not guarantee any work will be Page 47 of 159 authorized for all contractors nor does it commit a minimum amount of payment to the contractors by the City. COUNCIL ACTION REQUESTED: Informational item only. Utilities staff will be bringing contracts before Council for consideration during the October 3, 2022 City Council Regular Session. FINANCIAL IMPLICATIONS: Funding for these three CFSs are included in the Utilities 2022 budget and in the 2023 proposed budget. The total for all three contracts is $600,000, which if fully utilized will not exceed the total Water Fund appropriation in 2022 or in 2023. Source of Funds Line Item Description 2022 Line Item Budget 2022 YTD Line Item Expensed 2023 Proposed Budget Purchase Order Amount 40-1605- 61262 Water Fund, O&M, Water Distribution System $100,000 $241,878 $250,000 $100,000 40-1609- 61264 Water Fund, Engineering, Annual Asset Renewal $2,000,000 $0 $2,000,000 $500,000 PROCUREMENT INFORMATION Account Number: 40-1605-61262, 40-1609-61264 Project Number: 40 10003 Task Number: 001 CONNECTION TO STRATEGIC PLAN: Infrastructure: • Ensure protection of the City's water infrastructure Sustainability: • Maintaining infrastructure Safety: • Ensure safe drinking water is delivered to customers ATTACHMENTS: Justification Memo for Brannan Justification Memo for C&L Justification Memo for Global PowerPoint Presentation Page 48 of 159 TO: Mayor and Council FROM: Pieter Van Ry, Englewood Utilities and South Platte Renew Director Josh Roach, Interim Utilities Deputy Director – Operations and Maintenance DATE: September 26, 2022 Re: On-Call Contract for Services with Brannan Construction Company for As-Needed Emergency Water Line Repairs EXECUTIVE SUMMARY Utilities staff is seeking City Council approval to award a Contract for Services (CFS) with Brannan Construction Company (Brannan) for emergency on-call water line repair services, in an amount not to exceed $200,000. BACKGROUND Utilities has historically averaged approximately 40 emergency water main breaks annually, which require an immediate response to mitigate property damage, impacts to the public, and restore water service as quickly as possible. Utilities Distribution & Collections (D&C) staff currently repair water main breaks as resources and staffing are available. However, on-call contracts provide an increased means to rapidly respond to main breaks. In November 2021, Utilities staff competitively solicited for on-call contractor services through a Request for Proposal (RFP) process to identify qualified contractors to assist City staff with urgent repairs to aging water distribution system mains. Three contractors were selected: Global Underground Corp., Brannan Construction Company, and C&L Water Solutions, Inc. Staff recommends award of a new CFS with each of these contractors to allow for continued assistance with water main break repairs, as needed, through October 2023. ANALYSIS An on-call CFS for emergency water line repair reduces the risk of service interruptions and increases the efficiency and capacity by which the D&C staff can respond to line breaks. Utilities staff recommends entering into new CFS in the amount of $200,000 with Brannan. Since these on-call contracts have been in place, there have been forty (40) line breaks addressed within 48 hours. The estimated cost of an emergency water line repairs is $11,000 per event when performed by a contractor. It is anticipated a CFS in the amount of $200,000 will adequately cover approximately 20 repairs over the next year. Utilities staff determines when a contractor will be used to address water main breaks on a case-by-case basis, depending on the availability of D&C staff and the complexity of the repair. Entering into the CFS does not guarantee any work will be authorized for the contractor nor does it commit a minimum amount of payment to the contractor by the City. Per the agreement, the contractor must visit the worksite within two (2) hours to assess the repair and begin repairs within 24 hours. Page 49 of 159 FINANCIAL IMPLICATIONS Funding for this CFS is included in the Utilities 2022 budget and 2023 proposed budget. Three (3) separate $200,000 contracts are proposed to be executed with Global Underground Corp., Brannan Construction and C&L Water Solutions, Inc. The total for all three (3) contracts is $600,000, which if fully utilized, will not exceed the total Water Fund appropriation in 2022 or in 2023. Source of Funds Line Item Description 2022 Line Item Budget 2022 YTD Line Item Expensed 2023 Proposed Budget Purchase Order Amount 40- 1605- 61262 Water Fund, O&M, Water Distribution System $100,000 $241,878 $250,000 $100,000 40- 1609- 61264 Water Fund, Engineering, Annual Asset Renewal $2,000,000 $0 $2,000,000 $500,000 PROCUREMENT INFORMATION Account Number: 40-1605-61262, 40-1609-61264 Project Number: 40 10003 Task Number: 001 CONNECTION TO STRATEGIC PLAN Infrastructure: • Ensure protection of the City's water infrastructure Sustainability: • Maintaining infrastructure Safety: • Ensure safe drinking water is delivered to customers PROPOSED MOTION Move to approve, by Motion, a Contract for Services with Brannan Construction Company for emergency on-call water line repair services, in an amount not to exceed $200,000. ATTACHMENTS Contract Approval Summary (CAS) CFS-22-108 with Brannan Construction Company Page 50 of 159 TO: Mayor and Council FROM: Pieter Van Ry, Englewood Utilities and South Platte Renew Director Josh Roach, Interim Utilities Deputy Director – Operations and Maintenance DATE: September 26, 2022 Re: On-Call Contract for Services with C&L Water Solutions, Inc. for As-Needed Emergency Water Line Repairs EXECUTIVE SUMMARY Utilities staff is seeking City Council approval to award a Contract for Services (CFS) with C&L Water Solutions, Inc. (C&L) for emergency on-call water line repair services, in an amount not to exceed $200,000. BACKGROUND Utilities has historically averaged approximately 40 emergency water main breaks annually, which require an immediate response to mitigate property damage, impacts to the public, and restore water service as quickly as possible. Utilities Distribution & Collections (D&C) staff currently repair water main breaks as resources and staffing are available. However, on-call contracts provide an increased means to rapidly respond to main breaks. In November 2021, Utilities staff competitively solicited for on-call contractor services through a Request for Proposal (RFP) process to identify qualified contractors to assist City staff with urgent repairs to aging water distribution system mains. Three contractors were selected: Global Underground Corp., Brannan Construction Company, and C&L Water Solutions, Inc. Staff recommends award of a new CFS with each of these contractors to allow for continued assistance with water main break repairs, as needed, through October 2023. ANALYSIS An on-call CFS for emergency water line repair reduces the risk of service interruptions and increases the efficiency and capacity by which the D&C staff can respond to line breaks. Utilities staff recommends entering into new CFS in the amount of $200,000 with C&L. Since these on-call contracts have been in place, there have been forty (40) line breaks addressed within 48 hours. The estimated cost of an emergency water line repairs is $11,000 per event when performed by a contractor. It is anticipated a CFS in the amount of $200,000 will adequately cover approximately 20 repairs over the next year. Utilities staff determines when a contractor will be used to address water main breaks on a case-by-case basis, depending on the availability of D&C staff and the complexity of the repair. Entering into the CFS does not guarantee any work will be authorized for the contractor nor does it commit a minimum amount of payment to the contractor by the City. Per the agreement, the contractor must visit the worksite within two (2) hours to assess the repair and begin repairs within 24 hours. Page 51 of 159 FINANCIAL IMPLICATIONS Funding for this CFS is included in the Utilities 2022 budget and 2023 proposed budget. Three (3) separate $200,000 contracts are proposed to be executed with Global Underground Corp., Brannan Construction and C&L Water Solutions, Inc. The total for all three (3) contracts is $600,000, which if fully utilized, will not exceed the total Water Fund appropriation in 2022 or in 2023. Source of Funds Line Item Description 2022 Line Item Budget 2022 YTD Line Item Expensed 2023 Proposed Budget Purchase Order Amount 40- 1605- 61262 Water Fund, O&M, Water Distribution System $100,000 $241,878 $250,000 $100,000 40- 1609- 61264 Water Fund, Engineering, Annual Asset Renewal $2,000,000 $0 $2,000,000 $500,000 PROCUREMENT INFORMATION Account Number: 40-1605-61262, 40-1609-61264 Project Number: 40 10003 Task Number: 001 CONNECTION TO STRATEGIC PLAN Infrastructure: • Ensure protection of the City's water infrastructure Sustainability: • Maintaining infrastructure Safety: • Ensure safe drinking water is delivered to customers PROPOSED MOTION Move to approve, by Motion, a Contract for Services with C&L Water Solutions Inc., for emergency on-call water line repair services, in an amount not to exceed $200,000. ATTACHMENTS Contract Approval Summary (CAS) CFS-22-109 with C&L Water Solutions, Inc. Page 52 of 159 TO: Mayor and Council FROM: Pieter Van Ry, Englewood Utilities and South Platte Renew Director Josh Roach, Interim Utilities Deputy Director – Operations and Maintenance DATE: September 26, 2022 Re: On-Call Contract for Services with Global Underground Corp., for As-Needed Emergency Water Line Repairs EXECUTIVE SUMMARY Utilities staff is seeking City Council approval to award a Contract for Services (CFS) with Global Underground Corp., (Global) for emergency on-call water line repair services, in an amount not to exceed $200,000. BACKGROUND Utilities has historically averaged approximately 40 emergency water main breaks annually, which require an immediate response to mitigate property damage, impacts to the public, and restore water service as quickly as possible. Utilities Distribution and Collections (D&C) staff currently repair water main breaks as resources and staffing are available. However, on-call contracts provide an increased means to rapidly respond to main breaks. In November 2021, Utilities staff competitively solicited for on-call contractor services through a Request for Proposal (RFP) process to identify qualified contractors to assist City staff with urgent repairs to aging water distribution system mains. Three (3) contractors were selected: Global Underground Corp., Brannan Construction Company, and C&L Water Solutions, Inc. Staff recommends award of a new CFS with each of these contractors to allow for continued assistance with water main break repairs, as needed, through October 2023. ANALYSIS An on-call CFS for emergency water line repair reduces the risk of service interruptions and increases the efficiency and capacity by which the D&C staff can respond to line breaks. Utilities staff recommends entering into new CFS in the amount of $200,000 with Global. Since these on-call contracts have been in place, there have been forty (40) line breaks addressed within 48 hours. The estimated cost of an emergency water line repairs is $11,000 per event when performed by a contractor. It is anticipated a CFS in the amount of $200,000 will adequately cover approximately 20 repairs over the next year. Utilities staff determines when a contractor will be used to address water main breaks on a case-by-case basis, depending on the availability of D&C staff and the complexity of the repair. Entering into the CFS does not guarantee any work will be authorized for the contractor nor does it commit a minimum amount of payment to the contractor by the City. Per the agreement, the contractor must visit the worksite within two (2) hours to assess the repair and begin repairs within 24 hours. Page 53 of 159 FINANCIAL IMPLICATIONS Funding for this CFS is included in the Utilities 2022 budget and 2023 proposed budget. Three (3) separate $200,000 contracts are proposed to be executed with Global Underground Corp., Brannan Construction and C&L Water Solutions, Inc. The total for all three (3) contracts is $600,000, which if fully utilized, will not exceed the total Water Fund appropriation in 2022 or in 2023. Source of Funds Line Item Description 2022 Line Item Budget 2022 YTD Line Item Expensed 2023 Proposed Budget Purchase Order Amount 40- 1605- 61262 Water Fund, O&M, Water Distribution System $100,000 $241,878 $250,000 $100,000 40- 1609- 61264 Water Fund, Engineering, Annual Asset Renewal $2,000,000 $0 $2,000,000 $500,000 PROCUREMENT INFORMATION Account Number: 40-1605-61262, 40-1609-61264 Project Number: 40 10003 Task Number: 001 CONNECTION TO STRATEGIC PLAN Infrastructure: • Ensure protection of the City's water infrastructure Sustainability: • Maintaining infrastructure Safety: • Ensure safe drinking water is delivered to customers PROPOSED MOTION Move to approve, by Motion, a Contract for Services with Global Underground Corp., for emergency on-call water line repair services, in an amount not to exceed $200,000. ATTACHMENTS Contract Approval Summary (CAS) CFS-22-110 with Global Underground Corp. Page 54 of 159 Emergency On-Call Water Line Repair Services City Council, Study Session Meeting Pieter Van Ry, Englewood Utilities and South Platte Renew DirectorJoshRoach, Utilities Interim Deputy Director –O&M September 26, 2022Page 55 of 159 Agenda Water Main Breaks Background Emergency On-Call Water Line Repair Services Page 56 of 159 Water Main Breaks Background Page 57 of 159 Water Main Break Frequency •58 breaks to date in 2022 •Higher than industry standard (AWWA) •Upward 5–year trend Page 58 of 159 5-Year Break Locations •204 total main breaks •Hotspots identified and prioritized •Critical mains are first priority X’s indicate main break locations Page 59 of 159 High Consequence Line •16–inch transmission main between South Platte River and W. Chenango •21 failures since 1997 •High-priority project •Design to begin Q4 2022Page 60 of 159 Pipe Break Causes •Ferrous or iron materials make up 95% of the system •Corrosion is significant factor Corrosion 19% Full Circle 52% Pressure Split 20% Service Line Failure 9% Break Causes Ductile/cast iron 87% Steel 4% Copper/lead 9% Pipe Materials Page 61 of 159 Financial Impacts $308,000 $122,000 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Contractor Utilities Staff Total Cost $11,000 $5,000 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 Contractor Utilities Staff Avg. Cost Per Event Page 62 of 159 Internal staff vs. contractor considerations •Staff vacancies •Typical break requires five staff members •Breaks often happen after work hours or weekends •Preventative maintenance work can get deprioritized Optimized Break Response Page 63 of 159 Path Forward Master Plan Programs •Valve inspection and exercising •Hydrant flushing and testing •Flat rate account meter installations •Lead line replacements Asset Management Integration •Focus on programmatic maintenance •Hire technical staff •Develop systematic programs and structure Page 64 of 159 Emergency On-Call Water Line Repair Services Page 65 of 159 Contractor Selection •Request for proposals -November 2021 •Selected 3 contractors for on-call contracts in 2021 and 2022 •Brannan •C&L •Global Page 66 of 159 Summary and Recommendation •58 breaks since Jan 2022 •Analysis of priority lines •Analysis of pressure spikes •Three on-call contractors •$200,000 per contract Page 67 of 159 Questions?Page 68 of 159 Thank you Page 69 of 159 STUDY SESSION TO: Mayor and Council FROM: Jackie Loh DEPARTMENT: Finance DATE: September 26, 2022 SUBJECT: August 2022 Monthly Financial Report DESCRIPTION: Finance Director Jackie Loh to review with City Council the August 2022 Financial Report RECOMMENDATION: Director of Finance, Jackie C. Loh, will review the 2022 August Financial Report. PREVIOUS COUNCIL ACTION: Staff provides financial updates to City Council each month. During the Study Session discussion, the Director of Finance will review the 2022 August General Fund financials by revenues and expenditures. Sales & Use Tax by areas are also included in the Appendix of the attached presentation. SUMMARY: Through August 2022, the City of Englewood's General Fund operating receipts total $43,010,000. This amount is 75.9% of budgeted revenues, or $4,960,000 higher than the same period in 2021. Total operating revenue YTD is tracking 13.0% higher than the same period in 2021. Operating expenditures YTD are $36,613,000 or 61.7% of the budgeted expenditures. The total operating expenditures YTD are $930,000, or 2.6%, higher than those in 2021. Per Council request, one-time revenue and expenditures for 2022 and 2021 have been removed from the operating slides as noted. ANALYSIS: Revenue highlights are below: • Through August 2022, the city has received $8,732,000 in property taxes. Of that total, $5,170,000 went to the General Fund, $385,000 to the EDDA, and the rest to debt service for the Parks and Recreation and Police Building General Obligation (GO) bonds. • Sales & Use Tax remittances total $26,228,000 and are 74.4% of fiscal budgeted revenue; Sales & Use Tax received is $3,420,000 higher than the same time last year. Additionally, the Sales & Use Tax audits and voluntary disclosure collections amount to $205,000. • Marijuana Sales Tax accounts for $1,080,000 of the total Sales & Use Tax revenue YTD and is ($223,000) lower than 2021. Page 70 of 159 • Cigarette Tax was overpaid in 2021; therefore, the 2022 allocation from the state will be withheld until the difference is reconciled. • Licenses and Permits revenue is $659,000 higher in 2022 due to one large building permit that was issued in 2022.The revenue budget was increase $1,200,000 by budget supplemental #2.This revenue will offset additional review costs. • Charges for Services revenue is $606,000 higher in 2022.This is primarily due to an increase in the administrative fee that is charged to the city’s Water and Sewer funds. • Intergovernmental Revenue is lower in 2022 by ($72,000). This is primarily due to a one- time extra Highway User Tax that was received in 2021 in the amount of $110,000. • American Rescue Plan Act (ARPA) - the city has been awarded $8,776,000 which will be received in two allocations of $4,338,000 each. The second allocation was received on August 5th 2022. The US Department of Treasury issued the final ARPA rule, in early April 2022. The final rule contains a “Standard Allowance” which permits all cities with populations less than 50,000 to use up to $10 million under the Lost Revenue Provision. For 2021, the General Fund has recognized $404,000 of the ARPA funds; of which, $50,000 is committed for Workforce Training, $30,000 for Vaccines, and $324,000 for Homelessness. • Investment Earnings are negative ($302,000), due to a rapid rise in interest rates. These negative returns are due to Unrealized Losses. The portfolio, predominantly invested in bonds, is valued at market value each month, so earnings can fluctuate when interest rates move in either direction. Below is the recent history of unrealized gains/(losses): Expenditures highlights are below: • Across all departments, part of the variance is due to the 3.5% salary increase per the Englewood Police Bargaining Association (EPBA) and Englewood Employee Association (EEA) contracts and 3.5% for the rest of the staff. • Debt service includes $2,812,000 for the COP payoff. Paying off the COP debt early saved the city $30,000 in interest costs. The YTD Operating Surplus (Excess Revenues over/(under) Expenditures) is $6,397,000, compared to the Amended Budgeted Operating Deficit of ($2,648,000). There is a $134,000 transfer from the Public Improvement Fund for Debt Service and transfers out of ($396,000) for capital projects and ($150,000) to the EDDA for the 2022 portion of the city’s loan. This Operating Deficit excludes one-time items. Page 71 of 159 The General Fund – Fund Balance Composition, slide #16, shows a YTD Total Surplus of $4,658,000, including the Operating Surplus of $6,397,000 and a net transfer out of ($412,000). This surplus also includes one-time items. COUNCIL ACTION REQUESTED: Information only FINANCIAL IMPLICATIONS: Information included above. CONNECTION TO STRATEGIC PLAN: Governance: Assist the City to become fiscally accountable, effective and efficient. ATTACHMENTS: 2022 August Financial Report Page 72 of 159 August 2022Monthly Financial Report Jackie Loh, Director of FinancePage 73 of 159 •Through August 2022, year-to-date revenues are 75.9% of the Fiscal Year 2022 budget. •Through August 2021, year-to-date revenues were 67.9% of the total Fiscal Year 2021 revenues. •Sales and Use Tax Revenue is higher in 2022 than at this time of the year in both 2021 and 2020. •Operating revenues exclude one-time items as noted General Fund Operating Revenues Page 74 of 159 General Fund Operating Revenues •Excludes $188,000 for sale of Fire Training Academy (2022) •Excludes $138,000 for health insurance savings (2022) •Excludes $251,000 for health insurance savings (2021) 2022 2021 Amended Budget Aug-22 % Budget Dec-21 Aug-21 % YTD $ Diff % Diff Operating Revenues Property Tax 5,171,000 5,170,000 100.0%4,644,000 4,587,000 98.8%583,000 0.0% Specific Ownership Tax 530,000 306,000 57.7%524,000 307,000 58.6%(1,000) 0.0% Sales & Use Taxes 33,779,000 25,148,000 74.4%32,362,000 21,505,000 66.5%3,643,000 16.9% Sales Tax - Marijuana - 1,080,000 1,898,000 1,303,000 0.0%(223,000) -17.1% Cigarette Tax 170,000 44,000 25.9%182,000 102,000 56.0%(58,000) -56.9% Franchise Fees 3,665,000 2,418,000 66.0%3,826,000 2,294,000 60.0%124,000 5.4% Hotel/Motel Tax 20,000 42,000 210.0%28,000 17,000 60.7%25,000 147.1% Licenses & Permits 3,029,000 2,163,000 71.4%2,218,000 1,504,000 67.8%659,000 43.8% Intergovernmental Revenue 1,208,000 676,000 56.0%2,088,000 748,000 35.8%(72,000) -9.6% Charges for Services 3,401,000 2,120,000 62.3%2,638,000 1,514,000 57.4%606,000 40.0% Parks and Recreation 2,619,000 2,069,000 79.0%2,308,000 2,039,000 88.3%30,000 1.5% Fines & Forfeitures 531,000 262,000 49.3%516,000 368,000 71.3%(106,000) -28.8% Investment Earnings 55,000 (302,000) -549.1%(73,000) (6,000) 8.2%(296,000) 4933.3% EMRF Rents 1,700,000 1,218,000 71.6%1,762,000 1,158,000 65.7%60,000 5.2% Miscellaneous 806,000 596,000 73.9%1,135,000 610,000 53.7%(14,000) -2.3% Total Revenues 56,684,000 43,010,000 75.9%56,056,000 38,050,000 67.9%4,960,000 13.0% 2022 vs 2021 Page 75 of 159 Sales and Use Tax Revenues Page 76 of 159 Sales and Use Tax Revenues Page 77 of 159 2018-2022 Cumulative Change in Sales and Use Tax Collected $7.8 million increase since 2018 Page 78 of 159 City of Englewood Sales Tax Area Map Page 79 of 159 YTD Sales & Use Tax Collections by Area Busines s Area $ YTD Variance CY vs PY % YTD Variance CY vs PY YTD New Businesses YTD Closed Businesses YTD Net New (Closed) Businesses Comments Area 1 (92,240) -3.74%21 (26) (5) Area 2 216,715 12.43%11 (17) (6) Area 3 213,186 9.97%21 (24) (3) Area 4 128,053 14.91%2 (4) (2) Area 5 (159,795) -11.08%8 (9) (1) Area 6 744,422 25.82%94 (92) 2 Area 7 1,080,157 12.55%413 (467) (54) Contains opened and closed businesses that are not within the city limits. Area 8 109,081 10.38%- - - Area 13 (7,183) -2.65%1 (1) - Area 14 1,086,571 300.00%4 (4) - Marketplace Facilitators were added to this area in 2022. Regular Use (14,381) -0.97%N/A N/A N/A Use tax revenue fluctuates depending on the timing of when businesses replace large ticket items such as operating machinery and equipment. If items purchased outside of Englewood at a local tax rate less than 3.5%, then the tax payer is liable for the difference between the local tax paid and 3.5% tax due. Totals 3,304,585 14.33%575 (644) (69) Page 80 of 159 YTD Sales & Use Collections by Area 2018-2022 2021 2022 % Change $ Change Total Sales & Use Tax Collected 23,053,219$ 26,357,805$ 14.3%3,304,585$ Refunds 155,518$ 88,651$ -43.0%(66,866)$ Unearned Sales Tax 2,050,000$ 2,050,000$ 0.0%-$ Page 81 of 159 3 Year Avg YTD Sales Tax Collected by Area Area 13 $270,285 Area 14 $458,227Page 82 of 159 •Through August 2022, year-to-date expenditures are 61.7% of the Fiscal Year 2022 budget. •Through August 2021, year-to-date expenditures were 67.3% of the total Fiscal Year 2021 expenditures. •To date, a net of $412,000 has been transferred out of the General Fund. General Fund Operating Expenditures Page 83 of 159 General Fund Operating Expenditures •Excludes one-time pension contribution credits of $236,000 (2022)•Excludes one-time COP debt service of $1,418,000 which represents the 2023 final payment amount made in 2022. 2022 2021 Amended Budget Aug-22 % Budget Dec-21 Aug-21 % YTD $ Diff % Diff Operating Expenditures Legislation 322,000 162,000 50.3%285,000 153,000 53.7%9,000 5.9% Administration 1,262,000 704,000 55.8%1,084,000 630,000 58.1%74,000 11.7% City Attorney 1,092,000 593,000 54.3%923,000 562,000 60.9%31,000 5.5% Court 1,516,000 711,000 46.9%1,133,000 719,000 63.5%(8,000) -1.1% Human Resources 1,659,000 756,000 45.6%1,100,000 727,000 66.1%29,000 4.0% Finance 2,035,000 1,145,000 56.3%1,548,000 991,000 64.0%154,000 15.5% Information Technology 3,721,000 2,588,000 69.6%3,533,000 2,397,000 67.8%191,000 8.0% Community Development 3,422,000 1,782,000 52.1%2,946,000 1,882,000 63.9%(100,000) -5.3% Public Works 7,949,000 5,034,000 63.3%7,437,000 4,848,000 65.2%186,000 3.8% Police 15,994,000 10,040,000 62.8%15,379,000 10,024,000 65.2%16,000 0.2% Fire and Emergency Management 7,571,000 5,438,000 71.8%7,247,000 5,300,000 73.1%138,000 2.6% Parks, Recreation and Library 8,693,000 5,522,000 63.5%7,848,000 5,284,000 67.3%238,000 4.5% Communications 830,000 447,000 53.9%728,000 475,000 65.2%(28,000) -5.9% Debt Service 3,034,000 1,525,000 50.3%1,569,000 1,510,000 96.2%15,000 1.0% Contingency 232,000 166,000 71.6%294,000 181,000 61.6%(15,000) 0.0% Total Expenditures 59,332,000 36,613,000 61.7%53,054,000 35,683,000 67.3%930,000 2.6% 2022 vs 2021 Page 84 of 159 General Fund Operating Expenditures by Category •The Contractual Services Expenditure category includes items such as the fire and emergency services contract, software maintenance agreements and insurance costs. •The Commodities Expenditure category includes items such as fuel, chemicals and building supplies. •The General Fund Capital Expenditure category is primarily CERF vehicle replacement cost. Operating Expenditures Amended Budget Aug-22 % Budget 12/31/2021-Actual Aug-21 % YTD $ Diff % Diff Personnel 35,209,000 20,711,000 58.8%31,867,000 20,244,000 63.5%467,000 2.3% Commodities 2,092,000 1,355,000 64.8%2,285,000 1,341,000 58.7%14,000 1.0% Contractual Services 18,086,000 12,424,000 68.7%16,343,000 11,822,000 72.3%602,000 5.1% Capital 911,000 833,000 91.4%919,000 766,000 83.4%67,000 8.7% Debt Service 3,034,000 1,525,000 50.3%1,568,000 1,510,000 96.3%15,000 1.0% Total Operating Expenditures 59,332,000 36,848,000 62.1%52,982,000 35,683,000 67.3%1,165,000 3.3% 2022 vs 202120222021 Page 85 of 159 General Fund Operating Surplus (Deficit) •Through August 2022, year-to-date operating revenues exceeded operating expenditures by $6,397,000. •Through August 2021, year-to-date operating revenues exceeded operating expenditures by $2,367,000. 2022 2021 Amended Budget Aug-22 % Budget 12/31/2021-Actual Aug-21 % YTD $ Diff % Diff Total Operating Revenues 56,684,000 43,010,000 75.9%56,056,000 38,050,000 67.9%4,960,000 13.0% Total Operating Expenditures 59,332,000 36,613,000 61.7%52,982,000 35,683,000 67.3%930,000 2.6% Operating Surplus (Deficit)(2,648,000) 6,397,000 3,074,000 2,367,000 2022 vs 2021 Page 86 of 159 General Fund Transfers 2022 Transfers into the General Fund From the Public Improvement Fund for debt service 134,000$ Total transfers into the General Fund 134,000 2022 Transfers out of the General Fund To the Capital Projects Fund for capital projects 396,000 To EDDA for 2022 portion of the ($300,000) loan 150,000 Total transfers out of the General Fund 546,000$ Net General Fund Transfers (412,000)$ Page 87 of 159 General Fund-Fund Balance Composition (in millions)General Fund –Fund Balance Comparison 2018 2019 2020 2021 2022 YTD Actual Balances Beginning total fund balance 14,130,000$ $ 20,418,000 $ 22,131,000 $ 24,936,000 $ 17,043,000 Net change in fund balance 6,288,000 1,713,000 2,805,000 (7,893,000) $ 4,658,000 Ending total fund balance 20,418,000 22,131,000 24,936,000 17,043,000 21,701,000 Designated fund balance TABOR - Restricted (1,740,000) (1,730,000) (1,720,000) (1,800,000) (1,800,000) LTAR - Committed (4,995,000) (4,995,000) (4,995,000) (95,000) (95,000) ARPA funding - Restricted - - - (404,000) (404,000) Unrestricted Reserve = 16.7% of total revenues (8,558,000) (8,614,000) (8,985,000) (9,258,000) (9,951,000) Total designated fund balance (15,293,000) (15,339,000) (15,700,000) (11,557,000) (12,250,000) Unassigned fund balance 5,125,000$ 6,792,000$ 9,236,000$ 5,486,000$ 9,451,000$ $1.7 $1.7 $1.7 $1.8 $1.8 $5.0 $5.0 $5.0 $0.4 $0.4 $8.6 $8.6 $9.0 $9.3 $10.0 $5.1 $6.8 $9.2 $5.5 $9.5 $0.0 $2.5 $5.0 $7.5 $10.0 $12.5 $15.0 $17.5 $20.0 $22.5 $25.0 2018 2019 2020 2021 2022 YTD Balance TABOR - Restricted LTAR - Committed ARPA funding-Restricted Unrestricted Reserve = 16.7% of total revenues Unassigned fund balance Page 88 of 159 Appendix-Area Sales Tax Slides Page 89 of 159 Area 1 Sales Tax CityCenter (Formerly Cinderella City) 2,436,577 2,460,969 2,316,921 2,467,033 2,374,793 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2018 2019 2020 2021 2022Page 90 of 159 Area 2 Sales Tax South of Yale, north & south side of Jefferson Ave/US 285 between Bannock and Sherman 1,502,904 1,590,200 1,569,673 1,743,882 1,960,597 0 500,000 1,000,000 1,500,000 2,000,000 2018 2019 2020 2021 2022 Page 91 of 159 Area 3 Sales Tax S of Jefferson Ave/US 285 between Bannock & Sherman and north side of Belleview between Logan & Delaware 1,640,614 1,700,067 1,819,644 2,137,895 2,351,081 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2018 2019 2020 2021 2022 Page 92 of 159 Area 4 Sales Tax Broadway and Belleview (Between Fox and Sherman and south of Belleview and to the southern City Limits) 858,012 820,668 797,741 858,930 986,982 0 250,000 500,000 750,000 1,000,000 2018 2019 2020 2021 2022Page 93 of 159 Area 5 Sales Tax Area 5 -Federal and Belleview W of Santa Fe Drive 999,154 1,195,465 1,478,047 1,442,672 1,282,877 0 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 2018 2019 2020 2021 2022Page 94 of 159 Area 6 Sales Tax Area 6 -All other City locations 2,976,432 2,897,780 2,689,683 2,882,892 3,627,313 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 2018 2019 2020 2021 2022 Page 95 of 159 Area 7 Sales Tax Area 7 -Outside City limits 6,699,964 7,491,890 7,848,382 8,604,187 9,684,344 0 1,500,000 3,000,000 4,500,000 6,000,000 7,500,000 9,000,000 2018 2019 2020 2021 2022Page 96 of 159 Area 8 Sales Tax Public Utilities 989,501 1,002,512 918,790 1,050,567 1,159,648 0 250,000 500,000 750,000 1,000,000 1,250,000 2018 2019 2020 2021 2022 Page 97 of 159 Area 13 Sales Tax Area 13 -Hampden Avenue (US 285) and University Boulevard 292,619 307,547 275,797 271,121 263,938 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2018 2019 2020 2021 2022 Page 98 of 159 Area 14 Sales Tax Online Sales Footnote: Most of the online sales collected are included in Area 7 slide. In 2022 the Marketplace Facilitators were added to this reporting area. 142,206 98,372 80,376 103,867 1,190,437 0 250,000 500,000 750,000 1,000,000 1,250,000 2018 2019 2020 2021 2022 Page 99 of 159 Regular Use Tax 2,318,104 2,153,808 1,787,130 1,490,170 1,475,790 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2018 2019 2020 2021 2022Page 100 of 159 STUDY SESSION TO: Mayor and Council FROM: Jackie Loh DEPARTMENT: Finance DATE: September 26, 2022 SUBJECT: Budget Workshop to Finalize the 2023 Budget DESCRIPTION: Budget Workshop to Finalize the 2023 Budget RECOMMENDATION: Finance Director Jackie Loh is present to discuss with City Council potential adjustments to close the 2023 General Fund's operating budget funding gap. PREVIOUS COUNCIL ACTION: City Council has been provided the following opportunities to review the preliminary and proposed 2023 operating and capital budget priorities and to provide input to Staff: • January 29, 2022 - Visioning and 2023 City Council Goal Setting Workshop • April 11, 2022 - Study Session on preliminary 2023-2027 revenue and expenditures forecast assumptions • April 25, 2022 - Study Session on preliminary 2023-2027 Capital Improvement Plan at the Joint Study Session with Boards, Commissions and Committees tasked with capital review • June 20, 2022 - The first of two Study Sessions to discuss staff's preliminary 2023 operating budget requests and to review the 2023 Capital Improvement Plan (CIP) request matrix • June 27, 2022 - The second of two Study Sessions to discuss staff's preliminary 2023 operating budget requests and to review the 2023 Capital Improvement Plan (CIP) request matrix and there was consensus to include the capital projects listed for the following funds in the Draft 2023 Proposed Budget: Conservation Trust Fund, Open Space Fund, Water Fund, Sewer Fund, Stormwater Drainage Fund, Golf Course Fund, Concrete Utility Fund, Servicenter Fund and Capital Equipment Replacement Fund • July 25, 2022 - Study Session to follow-up with City Council regarding additional funding and questions for specific 2023 capital projects for inclusion in the Public Improvement Fund (PIF) and the Capital Projects Fund budgets. City Council directed staff to transfer $1M from the General Fund Unassigned Fund Balance to finance the gap between capital projects requests and monies available after delaying the Fiber Network capital request. • August 8, 2022 - Study Session where staff and City Council reviewed the Draft Proposed 2023 Operating and Capital Budget to incorporate any final changes before Page 101 of 159 printing the Proposed 2023 Budget documents for distribution on Tuesday, September 6, 2022 • September 19, 2022 - Budget Public Hearing to obtain citizen input regarding the city's 2023 operating and capital budgets. Staff provided an overview of the city's 2023 budget and responded to City Council questions. SUMMARY: The table below identifies the 2023 General Fund's operating budget shortfall and the potential adjustments to fund the gap. In addition to $100,000 anticipated from collections efforts, the City's negotiations with Kaiser has resulted in an increase of 1.9% instead of the projected 10%, saving the budget an additional $277,750. Lastly, Englewood's portion of the 2% shareback to cities and counties from the sale of the Denver Broncos equals $1,000,000, which must be spent on "youth activity programs." With Council approval, the City plans to spend $616,828 for our youth summer camps, summer drama programs and other youth programs and services at the Library, Rec Center, Pirates Cove and Parks Divisions. 9/6/2022 General Fund Operating Shortfall ($994,578) Adjustments to fund the gap: • Other revenue due to collection efforts $100,000 • Medical premium savings from 10% to 1.9% $277,750 Total Adjustments $377,750 9/26/2022 General Fund Operating Shortfall - Adjusted ($616,828)** **Off-Set by $616,828 from the General Fund’s Unassigned Fund Balance due to Englewood’s 2022 $1M receipt from the Denver Broncos sale proceeds restricted for youth activity ANALYSIS: The city's budget is based on revenue and expenditure estimates as of a point in time. The actual results may differ from the planned projections. The 2023 General Fund's operating budget shortfall is approximately ($994,578). Staff believes the additional recommended adjustments could be incorporated into the budget without severely impacting service level delivery. • The city's collection process is currently being reviewed by city departments. The collection efforts of city departments with the assistance from the City Attorney's Office is anticipated to yield approximately $100K. This amount was not previously included in the proposed 2023 budget as the collection process review is not yet complete. • An update from the healthcare broker has indicated that if the city were to contract with a single provider, the medical premiums year-over-year increase from 2022 to 2023 could be reduced from 10% to 1.9% or by $277,750. • The $4.65 billion dollar sale of the Denver Broncos has resulted in a $41 million refund to cities and counties in the metro area. A provision of the lease and management agreement between PDB Sports, LTD and the stadium district called for owner Pat Bowlen to share some of the profit should the franchise be sold. The contract called for Page 102 of 159 2% of the net profit to be shared with the district. Englewood just learned that the City's portion of that refund is $1,000,000, and staff is proposing that $616,828 of that funding be used for youth summer camps, the summer drama program and other youth programs and services within the Library, Rec Center, Pirates Cove and Parks Divisions. Other options for further reductions: • The Police Department FTE-related enhancements could be removed pending the outcome of the November 2022 election. We look forward to discuss these adjustment ideas as well as other ideas City Council may have to resolve the 2023 General Fund's operating budget shortfall. Future Discussion Topics: 1.General Fund’s Fund Balance • Unrestricted Reserve Range (12% to 21.4%) – what rate do we use for reporting purposes? • Under what circumstances and for what purposes will we use o Unassigned Fund Balance o Unrestricted Reserve 2.City’s allocation of the remaining $383,172 of the $1 million receipt from the Denver Broncos team sale proceeds. COUNCIL ACTION REQUESTED: Staff seeks City Council's direction whether to move forward with the potential adjustments as provided to reduce or eliminate the estimated 2023 General Fund budget operations shortfall. FINANCIAL IMPLICATIONS: Please refer to the Summary and Analysis Sections above. CONNECTION TO STRATEGIC PLAN: The 2023 budget impacts in part the following community results/outcomes: • Sustainability - A city that stewards its resources for the benefit of current and future generations • Governance - A city government that serves the community by being efficient, effective, accountable, and adaptable • Neighborhoods - Vibrant engaged, and connected neighborhoods as part of the Englewood community • Safety - A city that protects and serves the community and its people with professionalism and responsiveness • Local Economy - A city that that retains and supporting existing businesses while attracting and promoting new business ventures • Infrastructure & Transportation - A city that proactively and in a cost-effective manner invests in, maintains, improves, and plans to protect its infrastructure • Community Wellbeing- A city that provides satisfying opportunities for the vitality, enrichment, welfare, and happiness of the community ATTACHMENTS: Page 103 of 159 Sep 26, 2022 Workshop to Finalize the 2023 Budget Presentation Page 104 of 159 Workshop to Finalize 2023 Budget September 26, 2022 Presented by Shawn Lewis and Jackie Loh Page 105 of 159 9/6/2022 General Fund Operating Shortfall ($994,578) Adjustments to fund the gap: •Other Revenue due to collection efforts $100,000 •Medical Premiums Savings 10% to 1.9%$277,750 •Total Adjustments $377,750 9/26/2022 Adjusted General Fund Operating Shortfall ($616,828)** ** Off-Set by the General Fund’s Unassigned Fund Balance due to Englewood’s 2022 $1M receipt from the Denver Broncos sale proceeds restricted for youth activity General Fund: 2023 Operations Budget Gap Page 106 of 159 General Fund: 2023 Operations Budget Gap 9/6/2022 Amount Additions Deletions 9/26/2022 Amount Notes/Comments Beginning Fund Balance 17,074,439$ 1,000,000$ 18,074,439$ $1M Denver Broncos sale proceeds to Englewood for youth activity Revenues 61,298,315$ 61,298,315$ Other Revenue 100,000$ 100,000$ Additional revenue due to collections efforts Total Revenues 61,298,315$ 100,000$ -$ 61,398,315$ Expenditures 62,430,710$ 62,430,710$ Personnel Costs (277,750)$ (277,750)$ Medical Premium Savings from 10% to 1.9% Total Expenditures 62,430,710$ -$ (277,750)$ 62,152,960$ Operating Surplus (Shortfall)(1,132,395)$ 100,000$ 277,750$ (754,645)$ This shortfall is off-set by $616,828 of the $1M receipt from the Denver Broncos sales proceeds Other Financing Sources (Uses) Transfers-In 137,817$ 137,817$ PIF Transfer In for Debt Service Transfers-Out (1,000,000)$ (1,000,000)$ Transfer Out to PIF for Identified Capital Projects Net Other Financing Sources (Uses)(862,183)$ -$ -$ (862,183)$ -$ Net Change in Fund Balance (1,994,578)$ 100,000$ 277,750$ (1,616,828)$ -$ Ending Fund Balance 15,079,861$ 1,100,000$ 277,750$ 16,457,611$ Page 107 of 159 1.General Fund’s Fund Balance •Unrestricted Reserve Range (12% to 21.4%) –what rate do we use for reporting purposes? •Under what circumstances and for what purposes will we use Unassigned Fund Balance Unrestricted Reserve 2.City’s allocation of the remaining $383,172 of the $1 million receipt from the Denver Broncos team sale proceeds Quick Poll: Continue to print hard copies for Council Members of the budget documents for the proposed and final documents? Future Discussion Topics Page 108 of 159 Appendix Sep 19, 2022 Public Hearing Presentation Page 109 of 159 •2023 Budget Calendar •Funds Structure Overview •General Fund Recap •General Fund Enhancements •Other Funds Enhancements •Capital Funds Recap •Appendix Agenda Page 110 of 159 2023 City Council Budget Calendar Q1 Jan-Mar •City Council 2023 Vision/Goal Setting Workshop-Jan 29, 2022 Q2 Apr-Jun •Preliminary 2023 Revenue and Expenditure Underlying Forecast Assumptions–Apr 11, 2022 •Review Preliminary 2023 Capital Projects List with CC* and BC&C*–Apr 25, 2022 •Review Preliminary 2023 Operating & Staff Prioritized Capital Requests–Jun 20 and 27, 2022 Q3 Jul-Sep •Budget Advisory Committee Annual Report Review–Aug 1, 2022 •Draft Proposed 2023 Operating & Capital Budget & Follow-up Discussion as needed–Aug 8 and (if needed) Aug 22, 2022 •Submit Proposed 2023 Budget–Sep 6, 2022 •Proposed 2023 Budget Public Hearing–Sep 19, 2022 •Budget Workshop to finalize 2023 Budget (Placeholder)–Sep 26, 2022 Q4 Oct-Dec •2023 Budget Ordinances First Reading–Oct 3, 2022 •2023 Budget Ordinances Second Reading–Oct 17, 2022 * CC = City Council * BC&C = Boards, Commissions and Committees Other Budget Input •2023-2027 Capital Improvement Plan (CIP) recommended project list to City Manager from the following: Planning and Zoning Commission, Library Board, Transportation Advisory Committee, Parks & Recreation Commission and Budget Advisory Committee -Jun 9, 2022 •BC&C operating budget update: Library Board, Transportation Advisory Committee, Parks & Recreation Commission and Budget Advisory Committee –no later than Aug 1, 2022Page 111 of 159 Funds Structure Overview Page 112 of 159 All Funds –2023 Sources and Uses (in millions) General Fund $61.4 43% Special Revenue Funds $2.0 1%Debt Service Funds $2.8 2% Capital Projects Funds $10.6 7% Enterprise Funds $53.6 38% Internal Service Funds $12.2 9%General Fund $63.4 35% Special Revenue Fund $2.6 1% Debt Service Funds $2.9 2% Capital Projects Funds $12.1 7% Enterprise Funds $87.4 48% Internal Service Funds $13.3 7% USESSOURCES Page 113 of 159 All Funds –2023 Sources and Uses (in millions)Page 114 of 159 General Fund Budget Recap Page 115 of 159 General Fund SummaryProposed 2023 Budget Assumptions 2023 Revenue Sources:Apr 11th Jun 20th Aug 8th Aug 19th Sales and Use Tax Revenue (increase applied to 2022 revenue estimate) Recreational Marijuana Sales/Use Tax Rate remains at 10% Medical Marijuana Sales/Use Tax Rate remains at 3.5% +4.0%4.0%4.5%4.5% Property Tax Revenue *+0.0%0.0%0.0%0.0% All Other Revenue Sources ++2.0%2.0%(3.7%)(1.5%) 2023 Expenditure Uses:+4.0%4.0%14.9%5.0% 2023 Sales Tax related TIF Transfer to EDDA (estimate)$197K $197K * 2023 is an appraisal year and the anticipated increase will impact fiscal/calendar year 2024 + Major decrease ($1.8M) is due to lower licenses and permits revenue estimates in 2023 vs 2022Page 116 of 159 General Fund –Sources of Funds2023 Budget (in millions) Transfer-In Contribution from Component Units Other Income Interest Income Fines & Forfeitures Library Fines Recreation Program Fees Charges for Services Intergovernmental Revenue Licenses & Permits Hotel Franchise Fees Sales & Use Taxes Specific Ownership Tax Property Tax $- $10 $20 $30 $40 Revenue Source 9/6/2022 2023 Proposed % Property Tax 5.2$ 8.4% Specific Ownership Tax 0.5$ 0.9% Sales & Use Taxes 38.7$ 63.0% Franchise Fees 3.9$ 6.3% Hotel 0.0$ 0.0% Licenses & Permits 1.4$ 2.3% Intergovernmental Revenue 1.4$ 2.3% Charges for Services 4.0$ 6.5% Recreation Program Fees 3.1$ 5.0% Library Fines 0.0$ 0.0% Fines & Forfeitures 0.4$ 0.7% Interest Income 0.2$ 0.3% Other Income 0.7$ 1.1% Contribution from Component Units 1.8$ 2.9% Transfer-In 0.1$ 0.2% Total Sources of Funds 61.5$ 100.0%Page 117 of 159 General Fund SummaryProposed 2023 Budget Expenditure Assumptions Expenditure Uses: Salary/Wages +​5.0%​ Medical Insurance +10.0% Non-Personnel +3.5% Enhancement requests +4.3% Expenditure Savings Dental Insurance +0.0% Vacancy & Other One-Time Savings -2.9%Page 118 of 159 2023 Salary / Wage Increase Overview Employers of choice attract and retain employees, in part, by: Offering competitive compensation Offering competitive benefits Informational Data: •Englewood Employee Groups Salary/Wage Increases Englewood Police Benefits Association –5% Englewood Employee Association –5% Englewood All Others –5% •Colorado State Salary/Wage Increase for Fiscal Year (FY) 2022-2023 –3.0% across the board and no merit increase •Colorado Economic Indicators Wage and Salary Income Percent Change (Public & Private Sectors) 2023 Increase –6.1% 3 Year Average Increase (2021-2023) –8.4% 5 Year Average Increase (2019-2023) –6.9% Sources: Colorado Legislative Council Staff June 2022 Economic & Revenue Forecast, June 21, 2022, pg 66 and Colorado Joint Budget Committee Appropriations Report Fiscal Year 2022/2023 pg C-3Page 119 of 159 General Fund Salary & Benefit Increases 2023 vs 2022 Salaries $30.7 Salaries $27.4 Benefits $10.7 Benefits $8.7 $- $9.0 $18.0 $27.0 $36.0 2023 2022 Benefits Salaries (in millions)Page 120 of 159 General Fund –Uses of Funds2023 Budget (in millions) Expenditure Use 9/6/2022 2023 Proposed % Legislation 0.3$ 0.5% Administration 1.4$ 2.2% City Attorney's Office 1.2$ 1.9% Municipal Court 1.6$ 2.5% Human Resources 0.9$ 1.4% Finance 2.2$ 3.5% Information Technology 4.7$ 7.4% Community Development 3.1$ 4.9% Public Works 9.1$ 14.3% Police 25.6$ 40.3% Parks, Recreation, Library and Golf 8.9$ 14.0% Communications 0.9$ 1.4% Contingency**2.3$ 3.6% Debt Service 0.1$ 0.2% Transfer Out to PIF and EDDA 1.2$ 1.9% Total Uses of Funds 63.5$ 100.0% **Contingency Fund is earmarked for compensation adjustments, IT equipment for new hires, PTO/annual leave payments to employees separating from the City and centralized programs Transfer Out to PIF and EDDA Debt Service Contingency** Communications Parks, Recreation, Library and Golf Police Public Works Community Development Information Technology Finance Human Resources Municipal Court City Attorney's Office Administration Legislation $- $8 $15 $23 $30Page 121 of 159 2023 General Fund (Fund Balance in Millions) As of 8/8/2022 As of 9/6/2022 2022 Estimated Year End Fund Balance +$ 17.1 + $ 17.1 2023 Revenue Budget +$ 60.9 + $ 61.3 2023 Expenditure Appropriation Budget -$ 68.1 -$ 62.2 2023 Adjustments +$ 4.9 + $ 0.0 2023 Net transfer-in(out) from(to) PIF +$ 0.1 -$ 0.9 2023 Net transfer-out to EDDA -$ 0.2 -$ 0.2 2023 Net Change in Fund Balance -$ 2.4 -$ 2.0 2023 Estimated Year End Fund Balance =$ 14.7 = $ 15.1 Please Note:In 2023,due to the Sales Tax TIF, the city is estimating a $197K transfer to EDDAPage 122 of 159 General Fund 2022 vs 2023 D E F 2=D+E-F G H 3= 2+G-H Current Forecast Current Forecast Jan 1, 2022 Estimate Estimate Dec 31, 2022 Proposed Proposed Dec 31, 2023 Balance Sources Uses Balance Sources Uses Balance General Fund 02 General Fund 17,043,290$ 59,588,215$ 59,557,066$ 17,074,439$ 61,436,132$ 63,430,711$ 15,079,860$ Total Revenues/Expenditures 59,454,093$ 59,232,066$ 61,298,315$ 62,233,711$ Total Other Financing Sources/Uses 134,122$ 325,000$ 137,817$ 1,197,000$ Restricted Reserves 1,800,000$ 1,800,000$ 1,800,000$ Unrestricted Reserve 9,928,834$ 10,236,819$ 10,236,819$ Unrestricted Reserve % of Revenues 16.7%16.7%16.7% Unassigned Fund Balance 5,314,456$ 5,037,620$ 3,043,041$ Fund Balance 17,043,290$ 17,074,439$ 15,079,860$ GOVERNMENTAL FUND TYPE (Fund Balance* = Total Assets - Total Liabilities)Page 123 of 159 General FundBudget Enhancements Page 124 of 159 General Fund: Funded Personnel Changes Department Position Title FTE Ongoing One Time Included Administration Sustainability Coordinator 0.2 16,000$ -$ Yes Administration Accessibility Coordinator 0.0 -$ 20,000$ Yes Police Civilian Support Officer 1.0 85,000$ -$ Yes Police Additional Sworn Police Officers 2.0 240,000$ -$ Yes Grand Totals 3.2 341,000$ 20,000$ Continues on next slidePage 125 of 159 Department Enhancement Title Ongoing One Time Included Community Development Building Code Books -$ 4,500$ Yes Community Development CityCenter Redevelopment-Legal Services -$ 75,000$ Yes Community Development CityCenter Redevelopment-Financial Services -$ 25,000$ Yes Community Development Community Outreach -$ 2,500$ Yes Community Development Trolley 69,058$ 20,000$ Yes Community Development Memberships and Dues 3,000$ -$ Yes Community Development Training 1,500$ -$ Yes PRLG Parks Fuels and Lubricants 4,000$ -$ Yes PRLG Parks Bulk Chemicals 3,200$ -$ Yes PRLG Parks Water Charges 5,691$ -$ Yes PRLG Parks R&M Charges 8,960$ -$ Yes PRLG Parks Vehicle Maintenance 102,400$ -$ Yes PRLG Parks Division Total Adjustment 52,075$ 5,000$ Yes PRLG Pirates Cove Bulk Chemicals 6,080$ -$ Yes PRLG Pirates Cove Food 7,520$ -$ Yes PRLG Malley Recreation Center Total Adjustment 43,586$ -$ Yes Page 1 Subtotals 307,070$ 132,000$ Continued from previous slide General Fund: Funded Non-Personnel Changes Page 126 of 159 Department Enhancement Title Ongoing One Time Included Finance Licensing Materials/Mailing Costs 6,650$ -$ Yes Finance Travel for Procurement Division 3,000$ -$ Yes Finance Mileage & Parking for Procurement 200$ -$ Yes Finance Clothing for Procurement 100$ -$ Yes Finance CPA Audit Assistance 900$ 10,000$ Yes Finance Audit Expense 6,000$ -$ Yes Finance Financial Advisory Services -$ 30,000$ Yes Finance Professional Services (26,900)$ -$ Yes Finance 15K Internal Audit - Accounting 15,000$ -$ Yes Finance Finance Department Line Items Affected by Inflationary Price Increases (67,975)$ -$ Yes Municipal Court Weekend Bond Hearings 20,000$ -$ Yes Information Technology Software Maintenance Increases 658,256$ -$ Yes Information Technology Communication 60,000$ -$ Yes Page 2 Subtotals 675,231$ 40,000$ Continued from previous slide General Fund: Funded Non-Personnel Changes Page 127 of 159 Department Enhancement Title Ongoing One Time Included Police Increase to Several G/L Lines 13,556$ -$ Yes Police Mental Health Counseling 26,000$ -$ Yes Police Victim's Assistance - Aid to Individuals 3,440$ -$ Yes Police Increase Professional Services G/L 130,422$ -$ Yes Police Increase Denver Fire Contract (3%)33,158$ -$ Yes Police Increase in Utility Costs 1,546$ -$ Yes Public Works Asset Management -$ 10,000$ Yes Public Works Inflation Request 118,441$ -$ Yes Public Works Sanitation 5,600$ -$ Yes Public Works CERF Vehicle and Equipment Replacement 9,399$ -$ Yes Public Works Increase Professional Services 265,462$ -$ Yes Public Works Inflation Adjustments for the Streets Maintenance Division 195,228$ -$ Yes Public Works Traffic Engineering Division Inflation 198,428$ -$ Yes Public Works Increase to CERF Charges - Streets Maintenance 61,912$ -$ Yes Page 3 Subtotals 1,062,592$ 10,000$ Continued from previous slide General Fund: Funded Non-Personnel Changes Page 128 of 159 Enhancement Title Ongoing One Time Slide 1 Total 307,070$ 132,000$ Slide 2 Total 675,231$ 40,000$ Slide 3 Total 1,062,592$ 10,000$ Grand Total 2,044,893$ 182,000$ Continued from previous slide General Fund: Funded Non-Personnel Changes Page 129 of 159 General Fund: Revenue Changes Department Revenue Source % / $ Increase Ongoing One Time Included Police Plan Review Fees 25.00%25,000$ -$ Yes Administration Annual Marijuana License Fee $500.00 3,000$ -$ Yes Administration Annual Marijuana Application Fee $500.00 3,000$ -$ Yes Finance Waste Transfer Surcharge $0.13/cubic yard 217,086$ -$ Yes PRLG Kids Connection Summer Camp $10/week & $10/day 7,000$ -$ Yes PRLG Excursions 5%3,225$ -$ Yes PRLG Events Application Fee $50 2,000$ -$ Yes PRLG Set-up Rental Fee $5-$50 500$ PRLG General Fitness Classes 3%4,000$ -$ Yes PRLG Pirates Cove Daily Admission $1.00 90,000$ -$ Yes Subtotal Slide 1 354,811$ -$ Page 130 of 159 General Fund: Revenue Changes Department Revenue Source % / $ Increase Ongoing One Time Included Information Technology SPR Internal Charges $117,740 117,740$ $- Yes Information Technology Utilities Internal Charges $118,484 118,484$ $- Yes Information Technology Concrete Utility $191,583 191,583$ -$ Yes Information Technology Servicenter $28,340 28,340$ -$ Yes Information Technology Stormwater $16,705 16,705$ -$ Yes Information Technology Golf $17,947 17,947$ -$ Yes Subtotal Slide 2 490,799$ -$ Subtotal Slide 1 354,811$ -$ Grand Total 845,610$ -$ Continued from previous slidePage 131 of 159 Other FundsBudget Enhancements Page 132 of 159 Water Fund •4.5% annual rate increase / 3.25% connection fee increase •4.5% administrative fee increase •Capital Investment Fee Increase -$1/month (from $15 to $16 per month) •Revenue increase -$465,394 •Estimated WIFIA Loan Proceeds -$1,350,000 •2023 estimated year-end funds available balance -$2.5 million Sewer Fund •4.5% annual rate increase / 3.25% connection fee increase •Revenue increase -$930,937 •Estimated WIFIA Loan Proceeds -$7,500,000 •2023 estimated year-end funds available balance -$2.2 million Stormwater Drainage Fund •$14.00 quarterly rate increase (from $43.74 to $57.74) •Revenue increase -$800,000 •2023 estimated year-end funds available balance -$9.8 million 2023 Enterprise Funds Highlights Supporting Infrastructure Needs WIFIA –Water Infrastructure Finance and Innovation Act of 2014 administered by the Environmental Protection Agency (EPA)Page 133 of 159 Other Funds: Personnel Changes Department Position Title FTE Ongoing One Time Included PRLG - Golf Course Fund Golf Wages for PT/Seasonal Staff 0.0 105,000$ -$ Yes Public Works - Stormwater Fund Stormwater Engineer 1.0 125,000$ 5,000$ Yes Utilities - Sewer Fund 1 FTE Senior Billing Specialist, 2 FTEs Billing Specialists, 0.6 FTE Utility System Tech, 0.1 FTE Senior Construction Inspector 3.7 297,300$ -$ Yes Utilities - Water Fund 1 FTE Water Plant Operator, 1.4 FTEs Utility System Tech, 0.9 FTE Senior Construction Inspector 3.3 477,700$ -$ Yes South Platte Renew Implementation of 2022 Comp/Class Study 0.0 600,000$ -$ Yes Grand Total 8.0 1,605,000$ 5,000$ Continues on next slidePage 134 of 159 Other Funds: Non-Personnel Changes Department Enhancement Title Ongoing One Time Included PRLG-Golf Course Golf Fuels and Lubricants 5,000$ -$ Yes PRLG-Golf Course Golf Bulk Chemicals 3,500$ -$ Yes PRLG-Golf Course Golf Operating Supplies 50,000$ -$ Yes PRLG-Golf Course Golf R&M - General -$ 37,000$ Yes PRLG - Golf Course Golf Course Operations and Maintenance Total 102,497$ 13,500$ Yes Public Works-Servicenter ServiCenter Vehicle Lift Maintenance -$ 110,000$ Yes Public Works-Servicenter Servicenter Inflation Adjustments 41,940$ -$ Yes Public Works-Servicenter Servicenter Garage Inflation 65,590$ -$ Yes Public Works-Stormwater Cartegraph Storm Sewer Module -$ 10,000$ Yes South Platte Renew Treatment Chemicals 915,100$ -$ Yes South Platte Renew Master Plan -$ 500,000$ Yes South Platte Renew Gas and Electric 476,000$ -$ Yes Utilities-Sewer Fund Commodities, Contractural, Capital (Not CIP)955,200$ -$ Yes Utilities-Water Fund Commodities, Contractural, Capital (Not CIP)1,206,601$ -$ Yes Grand Total 3,821,428$ 670,500$ Continued from previous slidePage 135 of 159 Other Funds: Revenue Changes Fund Department Revenue Source % / $ Increase Ongoing One Time Included 42 Public Works Stormwater Maintenance Fees 32.00%1,033,000$ $- Yes 40 Utilities Water Rates 4.50%215,500$ $- Yes 40 Utilities Water Connection Fee 3.25%26,000$ $- Yes 40 Utilities Capital Investment Fee $1.00 160,300$ $- Yes 41 Utilities Sewer Rates 4.50%933,333$ $- Yes 41 Utilities Sewer Connection Fee $3.25 12,000$ $- Yes 43 PRLG Broken Tee Golf Course Green Fees $1-$2 40,000$ $- Yes 43 PRLG Broken Tee Golf Course Cart Fees $1 23,000$ $- Yes 43 PRLG Broken Tee Golf Course Driving Range Fees $1 15,000$ $- Yes Grand Totals 2,458,133$ -$ Page 136 of 159 Capital Projects Fund -$10 million Page 137 of 159 2023 Capital ProjectsPublic Improvement Fund (30) Priority Dept Project Name Request 2023 Tier 1 PW Road & Bridge 300,000$ Tier 1 PW Concrete Utility City Share 350,000$ Tier 1 PW Walk & Wheel Implementation 294,000$ Tier 1 PW Traffic Signal Program 150,000$ Tier 1 PW Dartmouth Ave Reconstruction East of Santa Fe Dr 1,000,000$ Tier 1 PW Union Avenue Bridge Rehabilitation 400,000$ Tier 1 PW Concrete Program Accessible Ramps 350,000$ Tier 1 PW Alley Maintenance 150,000$ Tier 1 PW Pavement Maintenance by Area 3,000,000$ Tier 1 PW Old Hampden Ave Complete Streets (Grant Project)1,825,000$ Tier 1 PW Broadway Corridor Study 50,000$ Tier 1 PW S Broadway Streetscapes (Grant Project)611,000$ Tier 1 PRLG ERC Upgrades 200,000$ Tier 1 PRLG Parks & Rec Parking Lot Maint 60,000$ Total Public Improvement Fund (30)8,740,000$ Main Sources of Funds •Vehicle Use Tax •Building Use Tax •Arapahoe County Road and Bridge Tax Page 138 of 159 2023 Capital ProjectsCapital Projects Fund (31) Priority Dept Project Name Request 2023 Tier 1 PRLG Art in Public Places 1% Recreation 11,540$ Tier 1 PRLG Feasibility Study for a single entry/exit on east side of Library 15,000$ Tier 1 IT Network Development IT 210,000$ Tier 1 IT PC Replacement IT 90,000$ Tier 1 IT Security Cameras 25,000$ Tier 1 PW Facilities and Operations General 664,000$ Tier 1 PW Back-Up Generators 150,000$ Total Capital Projects Fund (31) 1,165,540$ Main Sources of Funds •Transfer-In from General Fund or Public Improvement Fund Page 139 of 159 Capital Projects Funds -$10 million Fund Amount 30 Public Improvement Fund Projects List Subtotal 8,740,000$ 31 Capital Projects Fund Projects List Subtotal 1,165,540$ Grand Total 9,905,540$ D E F 2=D+E-F G H 3= 2+G-H Current Forecast Current Forecast Jan 1, 2022 Estimate Estimate Dec 31, 2022 Proposed Proposed Dec 31, 2023 Balance Sources Uses Balance Sources Uses Balance Capital Projects Funds 30 Public Improvement Fund 18,870,873$ 5,000,000$ 21,731,470$ 2,139,403$ 9,050,000$ 10,394,136$ 795,267$ 31 Capital Projects Fund 2,924,379$ 1,725,642$ 4,270,903$ 379,118$ 1,505,000$ 1,165,540$ 718,578$ 34 Police Building Construction Fd 3,044,149$ -$ 220,000$ 2,824,149$ -$ 500,600$ 2,323,549$ Totals 24,839,401$ 6,725,642$ 26,222,373$ 5,342,670$ 10,555,000$ 12,060,276$ 3,837,394$ GOVERNMENTAL FUND TYPE (Fund Balance* = Total Assets - Total Liabilities)Page 140 of 159 Appendix Page 141 of 159 Governmental Fund Types D E F 2=D+E-F G H 3= 2+G-H Current Forecast Current Forecast Jan 1, 2022 Estimate Estimate Dec 31, 2022 Proposed Proposed Dec 31, 2023 Balance Sources Uses Balance Sources Uses Balance General Fund 02 General Fund 17,043,290$ 59,588,215$ 59,557,066$ 17,074,439$ 61,436,132$ 63,430,711$ 15,079,860$ Special Revenue Funds 03 Conservation Trust Fund 2,353,926$ 310,000$ 2,112,602$ 551,324$ 310,000$ 608,825$ 252,499$ 04 Donors Fund 676,191$ 107,923$ 71,000$ 713,114$ 113,100$ 413,500$ 412,714$ 07 Parks & Recreation Trust Fund 141,096$ 2,000$ 5,500$ 137,596$ 2,500$ 15,000$ 125,096$ 08 Malley Center Trust Fund 457,356$ 3,000$ 35,000$ 425,356$ 3,000$ 35,000$ 393,356$ 10 Open Space Fund 2,455,452$ 1,400,000$ 3,255,096$ 600,356$ 1,552,845$ 1,501,405$ 651,796$ Totals 6,084,021$ 1,822,923$ 5,479,198$ 2,427,746$ 1,981,445$ 2,573,730$ 1,835,461$ Debt Service Funds 20 Rec General Obligation Bond 93,692$ 1,100,200$ 1,101,800$ 92,092$ 550,500$ 626,800$ 15,792$ 25 Police General Obligation Bond 160,958$ 2,150,500$ 2,224,800$ 86,658$ 2,202,000$ 2,232,300$ 56,358$ Totals 254,650$ 3,250,700$ 3,326,600$ 178,750$ 2,752,500$ 2,859,100$ 72,150$ Capital Projects Funds 30 Public Improvement Fund 18,870,873$ 5,000,000$ 21,731,470$ 2,139,403$ 9,050,000$ 10,394,136$ 795,267$ 31 Capital Projects Fund 2,924,379$ 1,725,642$ 4,270,903$ 379,118$ 1,505,000$ 1,165,540$ 718,578$ 34 Police Building Construction Fd 3,044,149$ -$ 220,000$ 2,824,149$ -$ 500,600$ 2,323,549$ Totals 24,839,401$ 6,725,642$ 26,222,373$ 5,342,670$ 10,555,000$ 12,060,276$ 3,837,394$ GOVERNMENTAL FUND TYPE (Fund Balance* = Total Assets - Total Liabilities)Page 142 of 159 Proprietary Fund Types D E F 2=D+E-F G H 3= 2+G-H Current Forecast Current Forecast Jan 1, 2022 Estimate Estimate Dec 31, 2022 Proposed Proposed Dec 31, 2023 Balance Sources Uses Balance Sources Uses Balance Enterprise Funds 40 Water Fund 22,297,097$ 13,180,132$ 18,553,595$ 16,923,634$ 16,736,451$ 31,131,931$ 2,528,154$ 41 Sewer Fund 7,726,230$ 20,701,379$ 26,013,547$ 2,414,062$ 29,443,815$ 29,697,399$ 2,160,478$ 42 Storm Drainage Fund 11,798,792$ 28,975,500$ 12,178,734$ 28,595,558$ 3,399,000$ 22,227,184$ 9,767,374$ 43 Golf Course Fund 1,800,048$ 2,727,783$ 3,720,173$ 807,658$ 2,789,296$ 2,800,248$ 796,706$ 44 Concrete Utility Fund 1,806,950$ 1,002,999$ 1,096,669$ 1,713,280$ 1,057,600$ 1,159,502$ 1,611,378$ 45-46 Housing Rehabilitation Fund 1,216,127$ 125,400$ 490,150$ 851,377$ 133,250$ 350,150$ 634,477$ Totals 46,645,244$ 66,713,193$ 62,052,868$ 51,305,569$ 53,559,412$ 87,366,414$ 17,498,567$ Internal Service Funds 61 ServiCenter Fund 725,214$ 1,279,903$ 1,937,613$ 67,504$ 2,523,961$ 2,560,285$ 31,180$ 62 Capital Equipment Replacement 4,251,352$ 1,334,999$ 3,151,756$ 2,434,595$ 1,360,962$ 1,878,195$ 1,917,362$ 63 Risk Management Fund 1,601,233$ 1,534,429$ 1,888,196$ 1,247,466$ 1,551,187$ 2,062,274$ 736,379$ 64 Employee Benefits Fund 672,312$ 5,447,161$ 5,669,137$ 450,336$ 6,805,381$ 6,832,312$ 423,405$ Totals 7,250,111$ 9,596,492$ 12,646,702$ 4,199,901$ 12,241,491$ 13,333,066$ 3,108,326$ PROPRIETARY FUND TYPE (Funds Available Balance* = Current Assets - Current Liabilities + Current Principal Portion of Debt Service)Page 143 of 159 STUDY SESSION TO: Mayor and Council FROM: Tamara Niles DEPARTMENT: City Attorney's Office DATE: September 26, 2022 SUBJECT: Presentation 2, Phase II of City Charter review project: Beginning- to-end review of Charter Provisions DESCRIPTION: Kathryn Sellers, outside legal consultant from Hoffmann, Parker, will be present to review a section of City Charter to determine if Council wishes to propose revisions for voter consideration. RECOMMENDATION: Continue to review Englewood City Charter, and discuss whether it may be appropriate to place proposed substantive revisions on the November, 2023 ballot. SUMMARY: City Council has embarked upon a multi-phase, multi-year project to review the Englewood City Charter, to determine if proposed amendments are appropriate. In Phase I, City Council reviewed sections of the Charter that were no longer legally enforceable or advisable, and adopted an ordinance approving various amendments for citizen approval on the November, 2022 ballot. This presentation is part of Phase II, to study potential substantive revisions to the Charter that may be advisable or have citizen support. Initially, 9 study sessions were scheduled on the 4th Monday of each month between August 2022 and May 2023 to review the City Charter from beginning to end and discuss whether proposed amendments may be advisable to reflect current law, current trends, or provide maximum protection or flexibility to the City and its Citizens. Should City Council determine proposed revisions are advisable and/or have Citizen support, Council will adopt an ordinance creating one or more ballot questions for Citizen consideration on the November, 2023 ballot (or later ballots, at Council's discretion). Currently, there is an agenda placeholder for consideration of an ordinance with ballot questions in June, 2023. COUNCIL ACTION REQUESTED: Consider presentation and provide direction regarding potential revisions to Englewood City Charter for citizen ballot. FINANCIAL IMPLICATIONS: Page 144 of 159 Using the City Attorney's Outside Counsel budget, outside counsel with legal expertise in Colorado City Charters is overseeing this project. Total cost is dependent upon their time spent. No other financial implications are anticipated. ATTACHMENTS: PowerPoint Page 145 of 159 Home Rule Project in Englewood Page 146 of 159 ARTICLE II ELECTIONS Possible Provisions to Review Suggested Revised (clean-up) language. Section 10: General. "All municipal elections shall be governed by the provisions of the Colorado Election Laws Municipal Election Code,unless otherwise determined by Council,and as hereafter amended or modified,except as otherwise provide in this Charter.The Council may adopt by ordinance such rules and regulations in respect to elections including by reference any laws of the State of Colorado not inconsistent with applicable law,as may be recommended by the Election Commission."Page 147 of 159 ARTICLE II ELECTIONS Possible Provisions to Review Initial Question is does Council want to keep the Commission? If so, suggested minor revisions below: Section 11: Election Commission. There is hereby created an Election Commission consisting of the City Clerk and four qualified electors of the City.Said electors,during their tenure in office,shall not be City officials or employees or candidates for elective City office.Council shall make two additional appointments, one term of appointment to terminate January 1,1983 and one term of appointment to terminate January 1,1985;thereafter appointments shall be for four-year terms.The Commission shall elect a chairperson from its membership. The Election Commission shall establish precincts and appoint the election judges and clerks for each precinct as provided in the Colorado Election Laws Municipal Election Code and have charge of all other activities and duties required of it by law or this Charter. Where municipal election procedure is in doubt, the Election Commission shall prescribe the procedure to be followed in conformity with applicable law.Page 148 of 159 ARTICLE II ELECTIONS Possible Provisions to Review Subsection (1) of Section 14–Consider deleting language dictated by State law and TABOR as set forth below: Section 14.Special Elections (1)General Provisions.Subject to the limitations imposed by this Charter,Council may call special elections as necessary either by resolution or by ordinance.Notice of such special elections shall be published and shall cite the section of this Charter which governs the proposition to be submitted to the electors.No special election shall be held within ninety (90)days before or forty- five (45)days after a general municipal or state election.General state elections may be used for submission of city propositions,except as limited by this Charter,and shall not be considered as special elections for city purposes.Any proposal,question,or proposition may be submitted at any general or special municipal election except as hereinafter limited by this Charter.The ballot for all elections,except election of officers,shall state briefly the nature of the proposition and shall provide appropriate means to vote for or against the proposition.Page 149 of 159 ARTICLE II ELECTIONS Possible Provisions to Review Subsection (2) of Section 14 –Consider deleting language – confusing. Discussion about need for limitation and consistency with State law. Section 14.Special Elections (2)Number; Limited.Limit on Number of Special Elections. A.Not more than one special election shall be held,under provisions of Section 46 of this Charter,during any twelve month period;provided,however,that proposed initiated ordinances,questions or measures may be submitted at any general municipal or state elections,or at special elections called under provision of other sections of this Charter as limited in Section 14(3)hereof. B.Any proposition submitted under Section 77 of this Charter shall not again be submitted under Section 77 for one year thereafter –NOTE.Will recommend deletion of Section 77 also…Page 150 of 159 ARTICLE II ELECTIONS Possible Provisions to Review Subsection (3) of Section 14 –Consider deleting language –Is there a need? Section 14.Special Elections (3)Subject,Limited.Elections held under provisions of Section 6,Section 77 and Section 104 of this Charter shall be held separate and apart from all other elections and shall be limited to submission of only one proposition in any one election.Page 151 of 159 ARTICLE II ELECTIONS Possible Provisions to Review Consider combining into one paragraph and one suggested minor revision. Section 15. Nominations for elective municipal office. Each candidate for an elective municipal office shall be nominated by petition signed by at least fifty registered electors residing within the municipality,or the district,from which the officer is to be elected. Petitions shall be circulated and filed in accordance with Colorado Election Laws Municipal Election Code.Page 152 of 159 ARTICLE III LEGISLATIVE BODY Possible Provisions to Review Section 21. Salaries. The monthly salaries of the Councilmen Council Members are hereby initially fixed in the following amounts until may be changed by ordinance,but shall not be increased during the current term of a Councilmen Council Member enacting such ordinance: Mayor: $75.00. Member of Council: $50.00.Page 153 of 159 ARTICLE III LEGISLATIVE BODY Possible Provisions to Review Question:Does Council want to keep the age restriction for a member of Council as 25 years of age? Section 23. Qualifications of Councilpersons. No person shall be eligible for the office of Councilperson unless at the time of the election the person is a citizen of the United States,at least twenty-five (25)years of age,shall have been for one year immediately preceding such election a registered elector of the City.Councilpersons elected by Districts shall also be residents and registered electors of their districts.No member of the Council shall hold any other public office or employment for which compensation is paid from any municipality.Page 154 of 159 ARTICLE III LEGISLATIVE BODY Possible Provisions to Review Question:Does Council want to require Council to fill a vacancy?State law provides for Council filling such vacancy or by special election if Council is unable to fill the vacancy. In addition,the language below does not reference a Council Member resigning. Section 28. Vacancies. An elected officer shall continue to hold his office until his successor is duly qualified.An elective office shall become vacant whenever any officer becomes incapacitated,or if a Councilman shall remove from or become a non-resident of the district in which he was elected during the term of his office.In case of a vacancy,the remaining Councilmen shall choose,by majority vote and within thirty days after such vacancy occurs,a duly qualified person to fill such vacancy.He shall serve until his successor,elected for the remainder of the term at the next ensuing general municipal election has,been duly qualified.If three or more vacancies exist in the Council simultaneously,such vacancies shall be filled for the respective unexpired terms at a special election.Page 155 of 159 ARTICLE III LEGISLATIVE BODY Possible Provisions to Review Question:Does Council want to require Council to fill a vacancy?State law provides for Council filling such vacancy or by special election if Council is unable to fill the vacancy. In addition,the language below does not reference a Council Member resigning. Section 28. Vacancies. An elected officer shall continue to hold his office until his successor is duly qualified.An elective office shall become vacant whenever any officer becomes incapacitated,or if a Councilman shall remove from or become a non-resident of the district in which he was elected during the term of his office.In case of a vacancy,the remaining Councilmen shall choose,by majority vote and within thirty days after such vacancy occurs,a duly qualified person to fill such vacancy.He shall serve until his successor elected for the remainder of the term at the next ensuing general municipal election has been duly qualified.If three or more vacancies exist in the Council simultaneously,such vacancies shall be filled for the respective unexpired terms at a special election.Page 156 of 159 Questions?Page 157 of 159 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Tamara Niles DEPARTMENT: City Attorney's Office DATE: September 26, 2022 SUBJECT: Executive Session to discuss (a) a personnel matter regarding an employment contract negotiation, and (b) a matter of attorney- client privilege regarding litigation, eminent domain regarding real property. DESCRIPTION: Executive Session to discuss (a) a personnel matter matter regarding an employment contract negotiation matter, and (b) a matter of attorney-client privilege regarding litigation, eminent domain regarding real property. RECOMMENDATION: Move to go into executive session for (a) for determining positions relative to matters that may be subject to negotiation with an employee, developing strategy for and receiving reports on the progress of such negotiations, and instructing negotiators under C.R.S. Section 24-6-402(3)(a)(V), specific to the City Attorney's contract; and (b) A conference with the City Attorney concerning disputes involving the public body that are the subject of pending or imminent court action, specifically regarding the acquisition of property pursuant to eminent domain. SUMMARY: CRS 24-4-402, the Colorado Open Meetings Law, requires the following for City Council executive sessions: announcement of topic for discussion, citation to authorizing law, and a two- thirds vote of the members present. Discussions held in an executive session must be electronically recorded, except that no record or electronic recording is required to be kept of the portion of a discussion in executive session that constitutes a privileged attorney-client communication. For the executive session portion regarding employment negotiations with the City Attorney, outside law firm Hoffman Parker has represented the City. Kathryn Sellers from that firm may be available to attend that executive session; but if not, Hoffman Parker will provide legal analysis and other necessary services on the issue. COUNCIL ACTION REQUESTED: Move to go into executive session for the designated topics FINANCIAL IMPLICATIONS: None anticipated Page 158 of 159 COUNCIL COMMUNICATION TO: Mayor and Council FROM: Tamara Niles DEPARTMENT: City Attorney's Office DATE: September 26, 2022 SUBJECT: Executive Session to discuss (a) a personnel matter regarding an employment contract negotiation, and (b) a matter of attorney- client privilege regarding litigation, eminent domain regarding real property. DESCRIPTION: Executive Session to discuss (a) a personnel matter matter regarding an employment contract negotiation matter, and (b) a matter of attorney-client privilege regarding litigation, eminent domain regarding real property. RECOMMENDATION: Move to go into executive session for (a) for determining positions relative to matters that may be subject to negotiation with an employee, developing strategy for and receiving reports on the progress of such negotiations, and instructing negotiators under C.R.S. Section 24-6-402(3)(a)(V), specific to the City Attorney's contract; and (b) A conference with the City Attorney concerning disputes involving the public body that are the subject of pending or imminent court action, specifically regarding the acquisition of property pursuant to eminent domain. SUMMARY: CRS 24-4-402, the Colorado Open Meetings Law, requires the following for City Council executive sessions: announcement of topic for discussion, citation to authorizing law, and a two- thirds vote of the members present. Discussions held in an executive session must be electronically recorded, except that no record or electronic recording is required to be kept of the portion of a discussion in executive session that constitutes a privileged attorney-client communication. For the executive session portion regarding employment negotiations with the City Attorney, outside law firm Hoffman Parker has represented the City. Kathryn Sellers from that firm may be available to attend that executive session; but if not, Hoffman Parker will provide legal analysis and other necessary services on the issue. COUNCIL ACTION REQUESTED: Move to go into executive session for the designated topics FINANCIAL IMPLICATIONS: None anticipated Page 159 of 159