2021 Adopted Budget
A Message from the City Administrator
To Honorable Mayor, City Council, and Residents of the City of Salida,
Presented here is a draft of the proposed budget that City staff have worked on. The budget plan looks at past history, progress in the current year, and projections for 2021. In recent months our city has not been immune to the global economic impacts of the COVID-19 pandemic. However, Salida has not been hit fiscally as hard as some. Sales tax revenue, a major funding source for the City, remains strong. Recreational and event fees have been the hardest hit revenue sources and we expect to see these reductions continue into 2021. Overall, we are projecting a 3% decline in recurring revenue sources for our Governmental Funds.
Due to having healthy reserves, the City has the financial confidence to not overreact to the Covid-19 health crisis. The City believes it is important to the fiscal health of the community to keep important projects moving forward and to keep City staff employed and productive. We have changed how we work to keep everyone healthy. We have made efforts to help local businesses so important to our economy through such initiatives as the COVID-19 Business Relief Program, Closure of F Street, and temporary modification of premises with liquor fee reimbursement. We have waived utility late fees for all and provided funding for the Emergency Relief Fund managed by Chaffee County Community Foundation.
The 2021 budget continues to move the City forward in a positive manner. The City’s budget is complex with a total of 9 funds and just under 2,000 accounts. It is hoped that this presentation will be engaging and informative. As you work through the details, questions will undoubtedly come up, please feel free to email any questions to [email protected] or [email protected].
City of Salida Mission
To guide the future of the City through thoughtful and inclusive decision‐making, preserving what makes Salida unique and focusing on positive outcomes.
City of Salida Goals
Fiscal Responsibility
- Make information available on a regular basis to make decisions
- Stability in City Hall
- Investment Strategy
- Revenue diversification through enhanced economic development activities
Community Infrastructure
- Enhance quality of life through services and amenities
- Preserve character of the City
- Maintain a stable, professional, and quality staff
- Ensure proper asset management controls
Communication
- Getting information out to citizens
- Develop communications strategy
- Information leads to trust of City Council from citizens
- Create an environment to gather public input
Housing Goals
- Affordable rentals and ownership (60% and below AMI)
- Increase stock of rentals and a variety of housing options
- Incentivizing development
- Establish long-term housing administration structure
2021 General Fund
The General Fund is the City's primary operating fund. It accounts for all financial resources of the City except those required to be accounted for in another fund.
The fund frequently provides support to the Capital Improvement Fund via interfund transfers and receives support for the Pool and recreation from the Lodging Tax Fund. These interfund transfers have not yet been built in.
Most departments within this fund receive some fee income for services performed, but services are mostly supported by the shared revenue streams of City generated 3% sales tax (58% of total goes to the General Fund), County shared sales tax, investment earnings, franchise fees, and state shared taxes and fees.
The major departments of the General Fund are shown below.
Administration
The Administration department consists of Expenses of the City Council, City Administrator, Finance, City Clerk, Lodging, liquor licenses and Legal Council. Includes 5.5 full time equivalent employees. In addition to normal operating, the 2021 budget includes:
- New intern or Communication Mgr ($20K to $47K plus benefits)
- Clothing allowance for Salida specific clothing for front line staff ($5K)
- Document imaging of vital records $53.1k)
Community Development
The Community Development Department helps realize the vision of the community as outlined in the Comprehensive Plan. This is accomplished by implementing the requirements of the Land Use and Development Code and supporting the City Council and the Boards and Commissions tasked with making land use decisions and recommendations. Salida partners with Chaffee County Development Services to issue building permits and inspect new construction conformance with Salida development standards and building safety codes.
This department has 3.3 full time equivalent employees. 2021 Budget includes costs for hiring a consultant to assist with Vandaveer Planning ($125K) in addition to normal operating expenses for the department.
Police Department
The Police department includes 21 full time employees and all other operating and capital expenses associated with running the department. Major new budget initiatives include:
- Employee promotions and market adjustments. ($37,500)
- Additional cameras and storage for body camera system ($6,000)
- Patrol car replacement ($47,500)
Fire Department
The Fire department includes 14 full time employees and all other operating and capital expenses associated with running the department. Major new budget requests include:
- Addition of one Firefighter ($68,000)
- Market pay adjustment ($7,000)
- Promotion of Fire Inspector to Deputy Chief ($12,400)
- Purchase of a replacement Cardiac Monitor ($34,000)
- Lexipol Policy and training assistance ($11,350)
Arts & Culture
The Arts & Culture department, previously known as the "SteamPlant Enterprise Fund", includes 3 full time employees and numerous part time employees (varies by availability and need). This department includes the operations of the SteamPlant Events Center, the Riverside Park Events, the Scout Hut and management of the creative district. Revenues have been impacted due to COVID-19 and thus new spending is at a minimum. The following projects are rolled over from the 2020 budget:
- Repair to brickwork of the SteamPlant facade ($70,000)
- Public Art Project ($10,000)
- Continued phasing of A/V upgrades at SteamPlant and Scout Hut.
Parks & Recreation
Parks & Recreation includes 12 full time employees and numerous part time employees. This budget houses the operating expenses of the Pool, Recreation Programs and maintenance for Parks, Facilities and Grounds. Pool revenues are expected to be low due to COVID-19 so minimal new requests have been made:
- River Trail repairs ($50,000)
- River Park Master Plan ($15,000)
See also the budget for the Capital Improvement Fund for capital project work requested in the 2021 budget.
All Other
Also in the General Fund are the departments of 'Public Works' and 'Other' which includes costs associated with general fund support of city-wide public works activities (I.e. Utilities for City Buildings, Mechanical work for all vehicles, tree maintenance throughout the City, Debt Service on large equipment purchases). The City share of the City/County Airport is recorded in the Other Department as well as Community Support Grants. There is one employee allocated here.
The City of Salida Water and Wastewater Funds are entirely supported by user fees; no tax revenues are applied. The fee structure is complex and needs to accommodate system maintenance as well as future capital upgrades and expansions necessary to serve the Citizens. A consultant with the expertise necessary to evaluate our rates has been hired to perform a rate study, the result of this study is expected later this year.
A major project in the works is the $1.9M Gallery Transmission Main Piping Line improvement which will be funded with a low interest state sponsored loan program. The City will also be replacing the wastewater plant bar screen ($260K), and will perform Digester Cleaning ($60K) in addition to normal maintenance and repairs.
15.5 full time equivalent employees are allocated here.
2021 Streets Fund
32% of the 3% sales tax is accounted for in this fund and must be spent solely on the construction, operation, maintenance and repair of city streets and street-related infrastructure. State HUTF fees and grants also fund the spending within this fund. 4.5 full time equivalent employees are allocated here.
Major spending for 2021 is described below.
Highway 50 Phase IV Streetscape ($1.062 M)
This project is a partnership with Colorado Department of Transportation (CDOT). 2020 bid results were over budget so no award was made. Budget increase requested for 2021 and rebid is planned.
Street Reconstruction ($800K)
- Poncha/3rd modifications
- B St (1st To Park Ave)
- I St. (Sacket to 1st)
- Potentially other street work including 10th/12th streets depending on bid results
Asphalt/Overlay and Sidewalk/Curb/ADA Rehab ($600K)
This is a budget placeholder for continuing work at a similar pace to prior years.
2021 Capital Improvement Fund Highlights
Eight percent (8%) of proceeds received from the three percent (3%) sales tax imposed by the City of Salida is allocated to the Capital Improvement Fund to be used to provide capital improvements, other than streets, or to pay debt service bonds or other obligations of the City issued to provide for such capital improvements. "Capital improvements" is defined as expenditures on items or improvements over five thousand dollars ($5,000.00) and with a useful life of longer than three (3) years.
Soaking Pools
A significant discussion planned for the October 5 Council Worksession is to look at this project in relation to other upcoming projects and to determine realistic cost estimates and decide how best to fit this project into spending plans
Skatepark completion
The $400,000 shown as "other park projections" is a conservative estimate of what may need to be rolled over from the current year into 2021 to complete the Skatepark project. There are revenue offsets in the form of grants and donations (60%, or $240,000 is included in Revenue).
Other Projects
The remaining portion of this budget is the grant funded caboose restoration ($250K), purchase of a toolcat and mini-excavator to help with annual park projects ($100K), a boiler replacement at the Pool ($65K) and funds for other projects totaling $175.5 such as replacing pool main drain, possibly adding trails at Vandaveer, continuation of ice skating rink development, and various possible park projects.
All Other Funds
In addition to the above, Salida also utilizes the following funds:
- Lodging Tax fund to record revenues from Lodging Tax Receipts. These revenues are generally transferred to the General Fund in order to support the operations of the Pool and Arts Events as required by City Ordinance. The 2021 proposed budget anticipates receiving $420,000 in revenues.
- Conservation Trust Fund to account for lottery money received from the state which is restricted for the "acquisition, development, and maintenance of new conservation sites or for capital improvement or maintenance for recreational purposes on any public site". For 2021, the proposed budget anticipates receiving $60,000 from the state and plans to spend the current year allocation as well as funds built up in previous years on trails and other City park projects yet to be determined.
- Housing fund to hold inclusionary housing fee in lieu payments to be used for the creation and maintenance of housing opportunities in Salida for households whose income is at or below 80% or less of the Area Median Income in Chaffee County
Fund Balance Analysis
Upcoming Budget Work Sessions / Hearings
The budget process takes several months and occurs during public meetings when residents are encouraged to attend. Follow along, ask questions and provide feedback at any of our upcoming budget work sessions on Sept. 14, Oct. 5 or Oct. 19. Or, attend a public budget hearing on Oct. 20. All meetings will take place in the Council Chambers at the Touber building, 448 E. First Street.