Fort Collins adopts budget despite reservations about reserves

By Dan MacArthur
Fossil Creek Current

Concerns about a lack of financial discipline prompted a pair of city council members to dissent in adoption of Fort Collins' 2008-2009 budget.

"There isn't a priority around what we're funding," protested council member Wade Troxell. "I do believe some things are more important than others."

Troxell was particularly vocal in his criticism of the funding level for the city's Transfort bus system.

"I believe there are efficiencies out there," concurred council member Diggs Brown. "If we turn over every rock we can find them."

Brown also shared Troxell's objection to balancing the budget with reserves in the belief that they can be replenished with future increases in tax revenue.

"My concern is if we slip into a recession we're going to be in big trouble," he said.

The new budget was constructed from the beginning with $3 million in reserve funds. Additional reserves were later tapped to fund another $1.3 million in programs.

"It's easy to spend money on something that makes you feel good," said Brown. "I'm cautious with other people's money."

Then late in the budget process Fort Collins learned of yet another potential demand on its reserves. Larimer County informed Fort Collins and other municipalities that it would retain the specific ownership tax the county had previously shared with cities and towns.

Those revenues from the vehicle tax instead will be directed into the county's road and bridge fund, boosting it by $2 million in two years. Fort Collins will lose about $1.1 million when the tax retention is fully phased in.

The adopted budget is not dramatically different than the previous one other than the funding for the Mulberry Wastewater Plant and more than $63 million for the Mason Corridor. Including those one-time expenditures, the budget totals $569.6 million in 2008 and $537.3 million in 2009.

The general fund, which reflects the city core operation, is nearly $107.8 million in 2008 and $110.3 million in 2009. Sales and use tax revenues --the city's primary source of revenue - are predicted to increase just over 2 percent and 2.6 percent, respectively. Fort Collins' 9.797 property tax mill levy will remain the same.

Wastewater rates will increase 12 percent this year and 11 percent the following year to pay for reconstruction of the Mulberry Wastewater Plant. The rate hike on average is estimated to cost customers an additional $2.37 a month in 2008 and $2.33 a month in 2009.