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March 2018

Each year, City staff prepares an in-depth report regarding Greeley city government’s financial condition and makes that report available in full via the City’s website at greeleygov.com. This special 4-page section highlights that extensive financial reporting, includes a summary of the community and budget priorities, as well as future project area priorities, all of which were established with public input. Input was received via recent resident surveys, the Parks, Trails and Open Lands master planning process, the Imagine Greeley 2017 Comprehensive Plan update process, and from the current Imagine Greeley capital improvements citizen committee.

Aligning Budget Priorities with Citizen Input Governance

Infrastructure

Public Safety

Well-Planned & Livable Community

Natural Resource Use

Recreational, Cultural, and Educational Opportunities

Economic Vitality


General Fund Expenditure by Department General Fund Expenditure by Department

The City spent and committed a total of $88.8 million in 2017 on an adopted budget of $93.9 million. Thus, departments underspent their budgets by $5 million.

Community Community Development Development 4% 4% Public Works Public10% Works 10%

These actual savings came in the following areas: • Salaries - $1.8 million; • Charges for services such as utilities - $1.1 million; • Purchased services - $2.1 million.

Police Police 30% 30%

Transfers Transfers 8%

8%

Administration

Administration 12% 12%

Culture, Parks &

Culture, Parks & Recreation Recreation 19% 19%

Fire Fire 17% 17%

General Fund Revenue The City estimated it would receive a total of $88.8 million in 2017. With one-time revenues from oil royalties included, a total of $96.5 million was received. More than $6 million of this revenue came from these one-time payments. Sales taxes on goods, building activity, and auto sales comprise nearly 57 percent of the City’s ongoing revenues to pay for high priority services, including police, fire, street maintenance, parks, recreation and other services. In 2017, a total of $51 million was collected in the sales and use tax category. The base amount collected was approximately 7 percent more than in 2016. The City also conducted several audits of large companies in 2017 and with that additional revenue, the overall sales taxes collected increased by 9 percent.

Major Sources of General Fund Revenue Major Sources of General Fund Revenue 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 Sales and Use Taxes

Property Taxes

Severance Tax

2017 Estimate

Fees, Fines and Charges

Oil Royalites

2017 Actual

Property taxes comprise approximately 11 percent of our ongoing revenue. In 2017, a total of $9.9 million was received from this source.

Oil & Gas Related Revenue The City completed an agreement for the transfer of property and oil royalty monies that accrued over a 5 year period. This provided $6.3 million in one-time royalty revenue. Given that these monies were collected over 5 years, the City will not receive this level of royalty payments in the future. All of this one-time revenue will be dedicated to one-time capital investments for the community. The larger ongoing challenge is the State of Colorado’s 2017 modification to the allocation formula for severance tax collections. While Weld County and Greeley generated a significant amount of oil and gas activity, the severance tax collections – used for ongoing City services – will be lower by at least $425,000 annually. With the decrease factored in, it is estimated that collections will total $1.5 million in 2018 and beyond.


Sales Tax The City collects a 4.11% sales tax on the retail sale of various goods and commodities; the state's sales tax rate is 2.9%. City sales tax revenue is distributed to the Public Safety Fund (0.16%), Quality of Life Fund (0.30%), Keep Greeley Moving Fund (0.65%) and General Fund (3.0%). The graph below displays revenue from the major sales tax categories.

Retail Sales Tax Revenue Sources Sources of Revenue Food Dining Out General Merchandise Motor Vehicles Bldg Materials Utilities Electronics Clothing Personal Care Sporting Goods/Hobbies Online Shopping 0

2,000,000

4,000,000 2017

Property Tax

6,000,000

8,000,000

10,000,000

2016 Property Tax Revenue

$10,000,000 $9,000,000 $8,000,000

The City levies property taxes based on Weld County's biennial property value appraisals. Property tax revenue in 2017 was virtually identical to 2016.

$7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Property Tax Revenue $7,000,000

Debt Payments This chart indicates that in upcoming years Greeley city government will have the financial ability to implement major community improvements if voters were to approve the continuation of current sales taxes. *COPs-Certification of Participation for City Center Phase 1

2013

2014

$8,740,996

$8,564,202

2015 Debt Payments $8,694,776

2016 $9,824,502

2017 Revised Budget $9,991,000

2017 $9,826,198

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

*

COPs

Police

Quality of Life

Sales Tax Bonds


Resident Input Indicates Three High Priority Funding Areas The 2018 Imagine Greeley citizen capital improvement committee is currently developing a list of recommended improvement projects and a suggested timeline for possible approval by voters. The question for voters could include the renewal of existing sales taxes to make these projects a reality. The committee has agreed on the three highest priority areas for consideration by the City Council and potentially by voters.

Public Safety Public input on several levels indicates that public safety is a local issue and area of concern that residents would like addressed by local government. The 2017 resident survey, the Imagine Greeley Comprehensive Plan update process, and the 2016 Weld County Community Health Survey all indicated that public safety should be a high priority. In fact, this area has been on the City Council’s top priority list for several years and will no doubt remain there attracting additional resources wherever and whenever possible. The budget priorities graphic on the cover of this section demonstrates that the Council, City staff, and the Imagine Greeley citizen committee understand the importance of this city government service area.

Mobility/Transportation Even after voter approval of the Keep Greeley Moving sales tax for road repairs in 2015, residents in Greeley still say that infrastructure improvements such as road capacity improvements to reduce traffic congestion, and bike lanes and pedestrian trails are high priorities. This mirrors in part, what was learned from responses to Weld County’s Community Health Survey. Those survey respondents noted that “support for bike and pedestrian infrastructure” was the top theme for Greeley-Evans and included the need for more bike paths and trails. Greeley-Evans Transit continues to see an upward trend in ridership, including an 8.4 percent increase in 2016 and a 16.7 percent increase in 2017. More than 750,000 rides are now being provided annually.

Parks/Open Space In 2015 and 2016, the city of Greeley embarked on a comprehensive public input process that allowed residents an opportunity to express their deep appreciation for local parks, trails and open lands. That appreciation demonstrates an understanding of the importance of open space that creates buffers between communities, while providing wildlife habitat and recreational features. It also indicates the value of urban recreational areas such as fishing ponds, sports fields, picnic areas, walking paths, and much more. Resident input collected during the process included the desire for more and better sidewalks, trails, neighborhood parks and more. More recently, three of the top five community objectives, identified by hundreds of residents who participated in the Imagine Greeley Comprehensive Plan process, support the parks and open space categories: Safe, healthy and connected neighborhoods, responsible stewardship of natural resources and the environment, and up-to-date infrastructure. We Aspire to be a City Achieving Community Excellence Morayma Cruz Aviles Morayma.CruzAviles@Greeleygov.com 970-350-9723

Additional info can be found at

GREELEYGOV.COM/FINANCE

Victoria Runkle Victoria.Runkle@Greeleygov.com 970-350-9730

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