budget adopted 2020 - city of cortez

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www.CityofCortez.com

City of Cortez

BUDGET 2020

“A budget is telling your money where to go instead of wondering where it went [7]”

ADOPTED

CITY OF CORTEZ DRAFT 2020 DRAFT BUDGET

INTRODUCTION ................................................................................................................... 10 City of Cortez Profile: ..................................................................................................................................... 10 City Organizational Structure: ........................................................................................................................ 13 Governing Body: ............................................................................................................................................. 14 Budget and Financial Information: ................................................................................................................. 14

Fund Accounting ........................................................................................................................................... 14 Basis of Budgeting ........................................................................................................................................ 15 Basis of Accounting ....................................................................................................................................... 15 Basis of Budgeting vs Basis of Accounting ................................................................................................... 16 Budgetary Information ................................................................................................................................. 16 Budget Process .............................................................................................................................................. 16

BUDGET OVERVIEW ............................................................................................................. 17 Chart of Funds for the City of Cortez .............................................................................................................. 17 Property Tax Levy for the General Fund ......................................................................................................... 18 Comparative Staffing Levels: .......................................................................................................................... 18 Fund Balance Projects – All Funds: ................................................................................................................. 19 Comparative Expense Classification Summary for All Funds: .......................................................................... 20

GENERAL FUND: .................................................................................................................. 22 Summary of Revenues & Expenditures: .......................................................................................................... 22 Revenues:....................................................................................................................................................... 23 General Fund Consolidated Cost Categories: .................................................................................................. 25 Expenditures by Department: ........................................................................................................................ 26

City Council ................................................................................................................................................... 26 City Manager ................................................................................................................................................. 27 Human Resources ......................................................................................................................................... 27 Municipal Court ............................................................................................................................................ 28 City Clerk ....................................................................................................................................................... 29 Finance Department ..................................................................................................................................... 30 General Services ........................................................................................................................................... 31 Police Department ........................................................................................................................................ 33 Public Works ................................................................................................................................................. 36 Parks & Recreation ....................................................................................................................................... 38 Library ........................................................................................................................................................... 41 Planning & Building ...................................................................................................................................... 42 Marketing ...................................................................................................................................................... 43 Welcome Center ........................................................................................................................................... 44 Interfund Services ......................................................................................................................................... 44

INTERNAL SERVICES FUNDS: ................................................................................................ 45 Shop Fund ...................................................................................................................................................... 45 Technology Fund: ........................................................................................................................................... 48 Self-Insured Health Fund: ............................................................................................................................... 50

ENTERPRISE FUNDS: ............................................................................................................ 51


Airport Fund: .................................................................................................................................................. 51 Cortez Community Network Fund: ................................................................................................................. 53 Dispatch Fund: ............................................................................................................................................... 55 Hydro Plant Fund: .......................................................................................................................................... 57 Recreation Center Fund: ................................................................................................................................. 58 Refuse Fund: .................................................................................................................................................. 61 Water Fund: ................................................................................................................................................... 64

SPECIAL REVENUE FUNDS: ................................................................................................... 68 Conservation Trust Fund: ............................................................................................................................... 68 Equipment Fund: ............................................................................................................................................ 69 Lodgers Tax Fund: .......................................................................................................................................... 70 Street Improvement Fund: ............................................................................................................................. 71

CAPITAL PROJECTS: ............................................................................................................. 72 Capital Project 2020 Investments ................................................................................................................... 72 Five Year Capital Project Plan ......................................................................................................................... 74

APPENDIX: .......................................................................................................................... 77 Bibliography ................................................................................................................................................... 77


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Honorable Mayor and Council Members: The development of the proposed 2020 fiscal year budget (2020 budget) is the beginning of a long journey for the City of Cortez (the City). The City is on a journey to build a disciplined, deliberate, efficient, transparent, and accountable government in delivering services to the community. To start us on our journey I requested two items from the new Finance Director, hired in January of 2019. Those two requests were, to develop:

1. A budget in accordance with the Government Finance Officers Association (GFOA) best practices 2. A Comprehensive Annual Financial Report (CAFR) complying with Governmental Accounting Standards

Board (GASB) Implementing these two requests require both improvement of financial processes and controls. These two efforts will take time to complete. You will notice the 2020 budget is much different from years past. The budget changes here-in have started us on our journey. 2020 Budget Perspective In developing the 2020 budget, Finance identified prior year revenue estimates were significantly over actual revenues. As would be expected, expenditures were budgeted based on those revenue estimates. Additionally, as financial statement audits are delayed for the years 2016 – present, I have little confidence in the fund balances depicted in previous budgets. Out of an abundance of caution, the 2020 budget was developed on the basis that revenues and expenditures balance (i.e. expenditures do not exceed revenues). City Staff made difficult, but necessary, decisions to create a balanced budget. Statewide and national economic growth have been robust over the last several years. However, that growth is not reflected in local sales or lodgers tax collections. As of mid-2019, the month over month of sales and lodgers tax collections are trending even with 2018 collections. From 2014 to 2018, the City has seen an increase in the average tax collection of approximately 3%, keeping pace with inflation. Economic indicators, market volatility, and geopolitical unrest and instability are raising concerns over future growth, with discussion of possible recession in the near future. The 2020 budget assumes revenues are flat with 2018 actual revenues, with the adjustment for inflation. In the event of a recession and revenue shortfalls, expenditures will be assessed, and revised, as needed. 2020 Budget Highlights

• Balanced budget • Sales Tax revenues flat with 2018 actuals, adjusted for inflation • Expenses decreased to balance with revenue projections • Implementation of revised rates, city wide • Maintaining current service levels • Implementation of Human Capital Management (HCM) solution to improve Finance processes and

controls • Begin the process of allocating costs of services from the General Fund to other funds • Capital projects are limited to those funds with surplus revenues (e.g. Street Improvement, Water, and

Refuse Funds)


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Following are several charts showing where General Fund revenues and expenses come from and go. General Fund % of Revenues by Type

General Fund % of Expenses by Department

Sales Tax Revenues Highlights In preparing the 2020 Budget, City staff analyzed the sales tax actual to budget revenues. Upon completion, sales tax revenues were noted as coming in under budget (Chart 1). In 2018 and 2019, the budget vs actual shortfall was approximately $730k and $1,213K respectively. With economic indicators, suggesting slowing growth, and the

79%

10%

4%2%

2%1%

1%

1% 0.27%

0.14%

Taxes

Intergovernmental

Recreation

Licenses and Permits

Miscellaneous

Interfund Services Revenues

Grants

Fines and Forfeits

Charges for Service

Interest

34%

15%14%

10%

5%

4%

4%

3%3% 2%

2% 1%1%

1%1% Police

Interfund Services ProvidedParks & RecreationPublic WorksLibraryGeneral ServicesPlanning & BuildingCity CouncilFinanceCity ManagerMunicipal CourtMarketingCity ClerkHuman ResourcesWelcome Center-CityGrant Administrator


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results of the sales tax revenue analysis, the City proposes sales tax revenue forecasts be flat, adjusted for inflation, with actual 2018 sales tax revenues. Chart 1

Beginning in fiscal year (FY) 2020 the City is implementing a best practice of performing periodic audits of sales, lodgers, and use tax collections and remittances. To my knowledge, since being incorporated as a city, the City of Cortez has never performed a tax audit. Tax audits are important for several reasons. First, and foremost, is to support and ensure, a “level playing field” among all vendors who collect sales, lodgers, and use taxes on behalf of the City of Cortez. Non-compliance of tax collection and remittance codes create an unfair competitive advantage for vendors by illegally profiting on taxes owed to the City. Second, the City may be missing revenues used to support services to city residents. Allocation of General Fund Services In early 2019, I brought to City Council the idea of allocating General Fund service costs to other funds (e.g. payroll and human resources). The allocation of service costs within the City is not new. For example, the city allocates costs related to information technology and Shop (i.e. building and fleet maintenance) across funds. However, allocations have been inconsistent as applied to services and costs. As the City had a new Finance Director who was just getting his “feet wet”, we decided that the initiative be put off for the following year. However, to balance the 2020 budget and not impact services or personnel, the need to allocate General Fund service costs was necessary. The Finance Department developed a strategy by which General Fund costs for City Manager, City Clerk, Human Resources, and Finance to allocate service costs to other funds. The allocation of service costs across the city government will continue to be refined and improved. Capital Improvement Highlights With the reduction of budgeted revenues, challenges of developing a balanced budget and having unclear fund balances, City Staff and myself propose that capital improvements out of the General Fund be deferred to future years except for development of the park on the old High School lot. The park development is budgeted for

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2014 2015 2016 2017 2018 2019

Mill

ions

General Fund Sales Tax Revenues

Actuals (2019 Forecast) Budget


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funding from both the General Fund and the Conservation Trust Fund (CTF). Funding for the park development out of the General Fund will reimbursed through the Great Outdoors Colorado grant the City received in March 2019, with the remaining funds coming from CTF Fund. Annually, the City receives CTF revenues from the State from taxes imposed on lottery proceeds. Investments in capital improvement projects are proposed to continue in funds where revenues cover such investments. For example, Street Improvement and Equipment fund revenues cover the capital investments. Cortez Community Network Highlights The Cortez Community Network (CCN) is a fiber optic network installed by the City of Cortez. The City continues to operate and maintain the network. In 2019, the City began discussions with Allo Fiber, a Nelnet business, in a public-private partnership to advance the fiber optic network. Discussions are ongoing and staff are hopeful an agreement will come to fruition by the end of the 2020 year. The CCN budget herein is based on current operations and does not take into account any agreement that may arise from negotiations with Allo. In the event a public-private partnership fails, the expansion of CCN customers will be limited to adding customers to current fiber lines (i.e. line drops). Further expansion of fiber lines are deferred to future years. Staffing and Personnel Highlights It is important that the City remain competitive with wages and benefits, as the City is a service-oriented organization where little can happen without professionals delivering quality services. Accordingly, the City commissioned a wage study that was completed in 2018. The results of the wage study conveyed City pay scales, at all levels, are not matching nor keeping up with market pay scales for similar positions. To remain competitive, the City would very much like to adjust the pay scales for all levels but recognize budget pressures prevent doing so. However, the City has budgeted an increase for a limited number of positions where pay was far below the recommended pay scale. More than half of the positions impacted were within the police patrol and dispatch departments. Minimum wage has steadily been increasing year over year contributing to additional budget pressures. The average year over year increase of minimum wage was approximately seven percent for the last five years (Table 1). Table 1

Effective Date Minimum Wage

Annual % Increase

1-Jan-20 $12.00 8%

1-Jan-19 $11.10 8%

1-Jan-18 $10.20 9%

1-Jan-17 $9.30 11%

1-Jan-16 $8.31 1%

To retain and attract a skilled and professional workforce to deliver quality services and meet citizen expectations the City will need to continue to review pay scales at all levels and make adjustments accordingly. Of course, adjustments will be in context with budget allowances and service needs. I believe with a bit of creativity the City can look to improving benefits (e.g. vacation and sick leave), rather than only salaries, supplementing compensation packages as means to retain and attract personnel.


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Staffing levels within the 2020 Budget overall have decreased from 2019 Budget by 9.5 full-time employees (FTE), details are within the Comparative Staffing Levels section. The decrease is not due to the termination of roles or positions within the City. Rather, the decrease is due to the use of position based budgeting, modification to the methodology of accounting for FTEs, and consistency in the application accounting for positions. Additionally, the adopted 2019 budget included positions requested by departments but denied by council. With the changes, the accuracy of budgeted staffing levels within the 2020 budget is much improved. Staffing changes and headcount requests included within the budget are as follows: General Fund:

• The City Manager Department is requesting to convert the internship position into a full-time position, Assistant to the City Manager. The position would increase personnel service costs by approximately $30k as the internship position is partially offset by Department of Local Affairs (DOLA) grants, which the City would no longer receive.

• The Accounts Payable Clerk position was moved from Finance Department to report to the City Clerk. The position change has no impact to the budget, as the move is an organizational change.

• The City proposes to defer the replacement of the Planning and Building Director who resigned in 2019. The Director of Public Works is currently providing oversight and direction to Planning and Building staff. The budget impact is approximately a reduction of $75k.

• Welcome Center staffing levels are reduced by three to zero, as the City has contracted with Mesa Verde Country to manage and operate the Welcome Center. The impact to the budget is approximately a reduction of $93k in personnel services.

Dispatch Fund:

• Dispatch is requesting a new part-time position for a dispatcher. The position increases personnel services budget by approximately $35k - $40k. Dispatch services are fully billed out to consumers of dispatch services. As such, revenues received for dispatch services offset the increased personnel service costs.

Refuse Fund:

• Public Works is requesting a seasonal part-time position to support refuse activities. The position increases personnel services budget by approximately $12k - $15k.

Water Fund:

• Public Works is requesting an additional position of Water Treatment Operator for succession planning purposes. Hiring a Water Treatment Plant Operator now allows for training and learning of water treatment operations for a smooth and successful transition to a new superintendent. The position increases personnel services budget by approximately $40k - $50k. In 2019, a request for an Assistant City Engineer was denied by Council but was not removed from the Water Fund 2019 Budget. As such, from a budget perspective the additional position of Water Treatment Operator is partially offset by removing the Assistant City Engineer position from the 2020 Budget.

Finance Department and Administration Highlights January 2019 saw a new Finance Director join the City of Cortez. One of the first things the Finance Director did was review the current state of the Finance Department and understand why financial reports were delayed. The Finance Director discovered financial processes and controls are informal, lacking, and/or are not performed timely. Not only did the deficiencies result in the delay in financial statement audits but also allowed for the ability and occurrence of fraud and embezzlement to occur. Previously we all understood the delay in financial reporting was due to a poor implementation of a new financial system, Caselle, in 2016. The implementation of Caselle was poor and negatively affected our current financial


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reporting abilities. However, the lack of best practices within financial processes and controls only exacerbated the implementation issues. Due to the size and nature of the City, the Finance Department is small, consisting of five employees. Including the Finance Director. Currently, the department does not have a full time accountant as the current accountant position performs both accounting and payroll duties. The payroll duties of the accountant comprise 60-70% of the accountant’s time annually. To implement and perform financial best practices the department needs a full time accountant. After reviewing multiple options and thorough research, this can be achieved without adding a new position, by outsourcing payroll as part of a Human Capital Management (HCM) solution. Outsourcing payroll will allow current staff to assume additional accounting duties (e.g. month-end close procedures) and assist with oversight of City funds and reporting. In addition to allowing current staff to focus on accounting duties, an HCM solution will also implement financial best practices surrounding payroll processes and controls, ensure compliance with labor regulations, and improve payroll services to employees. For example, segregation of duties (a key internal control used to review and catch errors as well as to prevent fraud) is currently lacking within the payroll process, which would be resolved with the implementation of an HCM solution. The HCM solution also includes best practices and technology to support Human Resource activities. Currently, the City does not utilize technology to support such efforts. For example, all personnel files and related employee information are managed and maintained in paper files, much of which is documented using a typewriter. Through the implementation of best practices, an HCM solution minimizes compliance risk with labor regulations, improves HR services to employees, and creates opportunities for process efficiency and optimization. An additional benefit of implementing an HCM solution, the City expects to reduce General Fund personnel service costs by a little over 2% or $170,000 annually. The reductions are obtained with the use of time clocks and other automated processes that reduce time entry error rates. The reductions, of $170,000 are included in the 2020 Budget. An additional 5% or $376,000 is possible for personnel savings but is more difficult to attain. The 2020 Budget does not include the additional $376,000 in potential savings. The City will follow the Request for Proposal (RFP) process, as such; the return on investment may vary based upon the HCM solution provider selected. Much research and analysis was put into reviewing various options, including an HCM solution. A return on investment (ROI) analysis was performed over multiple options, revealing an HCM solution has the best ROI with and two to three month payoff, occurring annually. Having a strong ROI and the potential for increased annual savings the City should pursue and implement and HCM solution. Acknowledgements Developing the 2020 budget was no easy task. I greatly appreciate the dedication and tough decisions made by every Department Head and others involved in developing the budget. Everyone’s support is much appreciated. Managing and administering the budget into 2020 will be challenging. I know together we can be disciplined, deliberate, efficient, transparent, and accountable in governing and delivering services to the community. Respectfully submitted, John A Dougherty Ben Burkett City Manager Finance Director


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Introduction

City of Cortez Profile: Surrounded by a diverse landscape and rich in culture and history, Cortez, is located within the high desert of the four corners region. Activities abound within the region; from archaeological sites to mountain biking, from vineyards and breweries to fishing and rafting, there is something for everyone. The richness of the area has attracted people to Cortez from prehistoric times to present. Those who have settled here know Cortez as a great place to live and raise a family. Those who are traveling and visiting the area get to experience everything the area has to offer. Platted in 1886, incorporated in 1902, and becoming a city in 1952, the founding date of Cortez is up to interpretation. Regardless, Cortez is rich in history. Cortez is a home rule municipality and is the county seat for Montezuma County. The city charter, adopted in June 1957, provides for a “council-manager government.” The council, of which, one is appointed mayor, is comprised of seven members who embody the legislative and governing body of the City. Council members have the power and authority to:

• Appoint and remove the city manager • By ordinance create, change, and abolish

offices, departments, or agencies, and assign additional functions to offices, departments or agencies established by the Charter, but not to discontinue any office, department, or agency established by the Charter

• Adopt the budget of the city • Authorize the issuance of bonds by

ordinance as provided by this Charter • Inquire into and investigate any office,

department, or agency of the city and the official acts of any officer or employee thereof, and to compel by subpoena attendance and testimony of witnesses and production of books and documents

• Adopt plats • Adopt and modify the official map of the

city

• Provide for independent audits of all funds and accounts of the city

Appointed by City Council, the City Manager is the Chief Executive Officer and head of the Administrative branch of the City with overall responsibility for City operations.

http://co-cortez2.civicplus.com/386/Maps-Available-Online




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Land Area [1]: City of Cortez 6.21 sq. miles Montezuma County 2,029 sq. miles Population [1]: City of Cortez – est. 2018 8,721 Montezuma County– est. 2018 26,158 Age [2]: Under 5 years 7.9% 5 to 9 7.1% 10 to 14 6.5% 15 to 19 5.8% 20 to 24 6.1% 25 to 29 6.6% 30 to 34 6.4% 35 to 39 5.9% 40 to 44 5.1% 45 to 49 6.1% 50 to 54 6.4% 55 to 59 6.8% 60 to 64 5.7% 65 to 69 4.2% 70 to 74 3.7% 74 to 79 3.7% 80 to 84 2.8% 85 years and over 3.4% Median age (years) 38.3 Sex [2]: Male 48.1% Female 51.9% Race [3]: Caucasian alone 66.4% American Indian alone 15.1% Hispanic 13.6% Two or more races 4.0% Other .09% Housing [2]: Housing Units 3,885 Occupied Units 3,590 Vacant Units 295 Owner Occupied Units 61.6% Renter-Occupied Units 38.4% Median Home Listing Price [4] $208,800 Households [2]: Number of Households 2,234

Family Households 62.2% Non-Family Households 37.8% Average household size 2.33 Average family size 2.92 Education [1]: Population 18 to 24 years: Less than high school graduate 19.7% High school graduate or equivalent 56.0% Some college or associates degree 17.3% Bachelor’s degree or higher 7.0% Population 25 years and over: Less than high school graduate 12.7% High school graduate or equivalent 28.8% Some college or associates degree 34.1% Bachelor’s degree 14.1% Graduate or professional degree 10.3% Schools: Montezuma – Cortez School District RE1 Southwest Colorado Community College Nearby: Fort Lewis College Household Income [2]: Less than $10,000 6.3% $10,000 to $14,999 8.2% $15,000 to $24,999 14.4% $25,000 to $34,999 10.7% $35,000 to $49,999 22.1% $50,000 to $74,999 17.7% $75,000 to $99,999 10.3% $100,000 to $149,999 7.9% $150,000 to $199,999 2.0% $200,000 or more 0.5% Median household income $40,183 Mean household income $50,891 Persons in poverty 22.6% Health Insurance [2]: Covered by health insurance 87.2% No health insurance coverage 12.8%


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Workforce [2]: Workforce by industry: Educational services and healthcare and social assistance 24.2% Arts, entertainment, and recreation, and accommodation and food services 14.7% Retail trade 11.5% Construction 10.4% Public administration 9.6% Professional, scientific, and management, and administrative and waste management services 7.2% Agriculture, forestry, fishing and hunting and mining 7.0% Wholesale trade 3.6% Manufacturing 2.7% Finance and Insurance, and real estate and rental and leasing 2.6% Other services 2.6% Transportation and warehousing, and utilities 2.6% Information 1.3% Unemployment rate (March 2019): Cortez 5.7% Colorado 3.0% Workforce by classification: Private wage & salary workers 72.6% Government workers 18.7% Self-employed 8.5%

Major Employers (2016) [4]: Montezuma Cortez School Dist. RE1 463 Southwest Memorial Hospital 385 Walmart 340 Montezuma County 273 City of Cortez 164 Pasco SW Inc. 123 City Market 115

Recreation [5]: 600 acres of parks Recreation Center Outdoor Pool 18 hole Golf Course

Attractions: Mesa Verde National Park Hovenweep National Monument Canyon of the Ancients Crow Canyon Archeological Center Four Corners Monument Telluride Ski Resort Phil’s World Dolores River


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City Organizational Structure:

Citizens

City Council

City Manager

Airport City Clerk

Finance General Service

Human Resources Library

Municipal Court Administration Parks & Recreation

Planning and Building Police

Public Works

City Attorney Municipal Judge Boards and Commissions

Adjustments & Appeals Golf

Historic Preservation Library

Parks, Recration & Forestry Planning & Zoning

Public Arts Committee

Cortez Youth Commission


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Governing Body: By charter and ordinance, Cortez is a home rule municipality with an established council-manager government. City Council is comprised of seven members. One of whom, as chosen by council members, is designated as mayor for a two-year term. General municipal elections are in April of even numbered years, on the first Tuesday after the first Monday. All general municipal elections require the election of four council members. The three candidates receiving the highest number of votes are elected to four-year terms. The fourth candidate is elected to a two-year term.

Budget and Financial Information:

Fund Accounting City activities are categorized into separate funds (i.e. fund accounting). Separate funds are used to maintain control over resources that have been segregated for specific activities or objectives. Fund accounting ensures and demonstrates compliance with finance related legal requisites. City funds are categorized as either Governmental Funds or Proprietary Funds. Both fund categories are further classified into more detailed fund types.

Governmental Funds Governmental fund reporting focuses on the allocation of resources in support of governmental services provided through tax revenues. Balances of those resources at the end of a fiscal year are known as the fund balance. Governmental funds are further classified as General Fund and Special Revenue Funds. The General Fund is the primary operating fund for the City of Cortez. The General Fund tracks revenues and investments into core/basic City services, including but not limited to: Police, Public Works, Parks and Recreation, and Municipal Court. General Fund also tracks activities related to running the City, such as Finance and Human Resources. Services provided via the General Fund are funded through general tax revenues and other revenues. Such revenues are considered unrestricted and can be allocated or distributed to support the needs of the community based on City Councils approval and direction.

Gary Noyes

Karen Sheek Mayor

Orly Lucero Mayor Pro-tem

Ty Keel

Mike Lavey

Sue Betts Jill Carlson


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Special Revenue Funds receive revenues that are legally restricted to support specific purposes or activities. The City has four special revenue funds:

1. Equipment Fund 2. Lodgers Tax Fund 3. Street Improvement Fund 4. Conservation Trust Fund.

Proprietary Funds Proprietary funds account for business-like activities where services are provided for a fee. Proprietary fund reporting focuses on operating income, changes in net assets, financial position, and cash flows. Proprietary funds are further classified as Enterprise Funds and Internal Service Funds. Enterprise Funds provide goods or services to the public for a fee, similar to that of a private business. The intent of enterprise funds is that the fund is self-sustaining. As such, revenues collected in providing services should offset incurred expenses. At times revenues may be insufficient to cover the operating expenses of Enterprise Funds. In such cases, transfers may occur from other fund types to support operating losses of Enterprise Funds. The City has seven Enterprise Funds:

1. Water Fund 2. Hydro Plant Fund 3. Refuse Fund 4. Dispatch Fund 5. Airport Fund 6. Recreation Center Fund 7. Cortez Community Network (CCN) Fund

Internal Service Funds track efforts and activities of support services provided to other City departments. Internal Service funds provide services on a cost-reimbursement basis. The City has three Internal Service Funds:

1. Shop Fund 2. Technology Fund 3. Self-Insured Health Fund

Basis of Budgeting The City of Cortez budgets on a cash basis. That is, revenues and expenditures are budgeted for when monies are collected and spent during the period. Using a cash basis budget, the City can compare revenues and expenditures to determine whether revenues cover expenditures, or if fund balances are sufficient to cover deficits. For budgetary purposes, depreciation, accrued liabilities for accumulated leave balances, and market value adjustments to City investments are not included in calculating fund balances.

Basis of Accounting The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when liabilities are incurred, regardless of when the related cash flows occur. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Expenditures are recorded when the liability is incurred.


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Basis of Budgeting vs Basis of Accounting The difference between basis of budgeting from basis of accounting comes down to the timing of when revenues and expenditures are recognized. The budget, being cash basis, assumes revenues and expenditures are received or spent during the budget period. Unlike, basis of accounting which recognizes revenues and expenditures when they are measurable and available. Cash may not be received or expended at the same time.

Budgetary Information The budget is a tool used by the City for financial planning and control. Adopted by City Council, the budget has the force of law and must be balanced. A balanced budget is one where expenditures do not exceed budgeted revenues and unappropriated fund balance surplus. The adopted budget is done annually and at the fund level for each individual fund. Any change in total to a fund or departmental appropriation within a fund requires City Council approval. All unexpended annual appropriations lapse at year-end.

Budget Process The City follows the following procedures in establishing the annual budget:

• On or before the first Monday in November of each year, the City Manager shall submit to the Council a proposed budget for the next ensuing budget year with an explanatory message. The proposed budget provides a complete financial plan for the City and includes:

o the proposed expenditures for each office, department and agency for the ensuing year; o debt service requirements for the ensuring fiscal year; o an estimate of the amount of anticipated income from all sources during the ensuing fiscal year,

including estimated surplus cash at the end of the current year. • The budget is required to be in sufficient detail to show each fund’s estimated revenues by source and

estimated expenditures. The budget shall be arranged to show comparative figures for receipts and expenditures for the last completed fiscal year, estimates for the current year, and the City Manager’s recommendations for the ensuing fiscal year.

• A public hearing is conducted to obtain taxpayer comments. • No later than the last day of December, the budget is legally adopted and appropriations are enacted by

ordinance. • The City Manager is authorized to transfer budgeted amounts between departments within any fund;

however, any revisions that alter the total expenditures of any fund must be approved by City Council. • The level on which expenditures may not legally exceed appropriations is the legally adopted annual

operating budget for the fund in total. • The City Council may legally amend the budget by ordinance once it has been approved. Budgeted amounts

are shown as adopted by the City Council, including all amendments. • All appropriations lapse at year-end. • Budgets are legally adopted for all non-fiduciary funds of the City. Budgets for the General and Special

Revenue Funds are adopted on a basis consistent with Generally Accepted Accounting Principles (GAAP). Budgetary comparisons presented for the Enterprise and Internal Service Funds are presented on a non-GAAP budgetary basis. Tap fees, grant revenues and debt proceeds are recognized as revenue for budget purposes. Capital outlay is budgeted as an expenditure.


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Budget Overview

Chart of Funds for the City of Cortez

Proprietary Funds

Enterprise Funds

Airport FundCortez Community

Network (CCN) Fund

Dispatch Fund Hydro Plant Fund

Recreation Center Fund Refuse Fund

Water Fund

Internal Service Funds

Self-Insured Health Fund

Shop Fund

Technology Fund

Governmental Funds

General Fund Special Revenue Funds

Conservation Trust Fund

Equipment Fund

Lodgers Tax Fund

Street Improvement Fund


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Property Tax Levy for the General Fund

2018 2019 2020

Valuation 87,319,880 88,128,980 90,839,730 Mill Levy 1.24 1.21 1.29

General Property Tax $ 108,277 $ 114,598 $ 117,547

Comparative Staffing Levels:

2018 2018 2019 2020 Budget Actuals Budget Budget GENERAL FUND City Clerk 1.0 1.0 1.0 2.0 City Manager 3.0 3.1 3.0 3.0 Finance 5.0 5.0 5.0 4.0 General Services 4.0 4.0 4.0 4.0 Human Resources 2.0 2.0 2.0 2.0 Library 9.3 8.3 9.3 7.9 Marketing 1.0 1.0 1.0 1.0 Municipal Court 3.0 3.0 3.0 3.0 Parks & Recreation 22.9 20.3 23.1 22.1 Planning &Development 6.5 6.4 6.5 5.8 Police 44.6 42.9 44.6 43.0 Public Works 10.6 11.8 10.1 10.5

Welcome Center 3.0 3.0 3.0 0.0 TOTAL GENERAL FUND 115.9 111.8 115.6 108.2

ENTERPRISE FUNDS Airport Fund 2.0 2.0 2.0 2.0 Cortez Community Network Fund 1.0 1.0 1.0 1.0 Dispatch Fund 11.6 11.9 11.6 12.1 Hydro Plant Fund 0.0 0.0 0.0 0.0 Recreation Center Fund 25.9 19.7 26.1 22.8 Refuse Fund 11.0 10.0 11.0 11.5

Water Fund 11.6 10.8 12.8 13.0 TOTAL ENTERPRISE FUNDS 63.1 55.4 64.5 62.4

INTERNAL SERVICE FUNDS Self-Insured Health Fund 0.0 0.0 0.0 0.0 Shop Fund 5.0 4.8 5.0 5.0

Technology Fund 3.0 3.0 3.0 3.0 TOTAL INTERNAL SERVICE FUND 8.0 7.8 8.0 8.0

SPECIAL REVENUE FUNDS Conservation Trust Fund 0.0 0.0 0.0 0.0 Equipment Fund 0.0 0.0 0.0 0.0 Lodgers Tax Fund 0.0 0.0 0.0 0.0

Street Improvement Fund 2.0 1.5 2.0 2.0 TOTAL SPECIAL REVENUE FUNDS 2.0 1.5 2.0 2.0

TOTAL 189.0 176.6 190.1 180.6


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Fund Balance Projections – All Funds: Fund Balance Estimated

Revenue Estimated

Expenditures Projected

Fund Balance Proposed Revenues

Proposed Expenditures*

Proposed Fund Balance

$ Surplus / (Deficit)

12/31/2018 2019 2019 12/31/2019 2020 2020 12/31/2020 OPERATING FUND General Fund 4,672,194 13,313,352 (13,694,370) 4,291,176 12,251,036 (12,251,035) 4,291,176 0 TOTAL OPERATING FUND 4,672,194 13,313,352 (13,694,370) 4,291,176 12,251,036 (12,251,035) 4,291,176 0 ENTERPRISE FUNDS Airport Fund 146,411 1,632,165 (1,676,513) 102,063 2,119,656 (2,156,629) 65,090 (36,973) Cortez Community Network Fund 222,699 417,726 (599,176) 41,249 468,351 (368,459) 141,141 99,892 Dispatch Fund 75,522 913,323 (923,077) 65,768 980,409 (964,409) 81,768 16,000 Hydro Plant Fund 49,131 72,000 (77,405) 43,726 72,000 (78,479) 37,247 (6,479) Recreation Center Fund 1,211,573 2,255,482 (2,310,552) 1,156,503 2,288,028 (2,166,027) 1,278,504 122,001 Refuse Fund 795,281 1,481,150 (1,540,096) 736,335 1,449,576 (1,652,446) 533,465 (202,870) Water Fund 1,862,951 3,432,411 (3,379,512) 1,915,850 3,594,807 (3,099,246) 2,411,410 495,560 TOTAL ENTERPRISE FUNDS 4,363,568 10,204,257 (10,506,331) 4,061,494 10,972,826 (10,485,696) 4,548,624 487,130 INTERNAL SERVICE FUNDS Self-Insured Health Fund 656,685 2,805,031 (3,018,530) 443,186 2,853,400 (2,501,820) 794,766 351,580 Shop Fund 162,812 876,150 (933,846) 105,116 915,136 (973,480) 46,772 (58,344) Technology Fund 256,459 745,030 (885,773) 115,716 662,442 (694,087) 84,071 (31,645) TOTAL INTERNAL SERVICE FUNDS 1,075,956 4,426,211 (4,838,149) 664,018 4,430,978 (4,169,386) 925,610 261,592 SPECIAL REVENUE FUNDS Conservation Trust Fund 59,183 85,015 (112,500) 31,698 255,000 (255,000) 31,698 - Equipment Fund 1,229,568 356,110 (477,250) 1,108,428 341,860 (340,369) 1,109,919 1,491 Lodgers Tax Fund 23,613 225,000 (242,621) 5,992 219,612 (219,245) 6,359 367 Street Improvement Fund 2,243,160 1,397,148 (1,830,514) 1,809,794 1,410,060 (1,305,066) 1,914,788 104,994 TOTAL SPECIAL REVENUE FUNDS 3,555,524 2,063,273 (2,662,885) 2,955,912 2,226,531 (2,119,679) 3,062,764 106,852 TOTAL ALL FUNDS 13,667,242 30,007,093 (31,701,735) 11,972,600 29,881,372 (29,025,797) 12,828,174 855,574 *Excludes Depreciation


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Comparative Expense Classification Summary for All Funds:

2020 Personnel Services Charges & Services

Materials & Supplies

Intergovernmental & Grants

Capital Outlay Debt Service Total

OPERATING FUND General Fund 7,673,146 1,439,056 1,596,225 1,034,608 300,000 208,000 12,251,035 TOTAL OPERATING FUND 7,673,146 1,439,056 1,596,225 1,034,608 300,000 208,000 12,251,035 ENTERPRISE FUNDS Airport Fund 169,580 12,200 36,516 5,000 1,933,333 - 2,156,629 Cortez Community Network Fund 90,682 113,130 70,631 94,016 - - 368,459 Dispatch Fund 879,245 32,864 52,300 - - - 964,409 Hydro Plant Fund - 4,000 1,000 - 3,000 70,479 78,479 Recreation Center Fund 965,767 42,808 338,662 111,740 97,000 610,050 2,166,027 Refuse Fund 822,392 373,773 47,301 248,979 160,000 - 1,652,446 Water Fund 1,022,829 208,092 395,260 381,713 556,000 535,353 3,099,246 TOTAL ENTERPRISE FUNDS 3,950,495 786,867 941,670 841,449 2,749,333 1,215,882 10,485,696 INTERNAL SERVICE FUNDS Self-Insured Health Fund - 2,501,820 - - - - 2,501,820 Shop Fund 420,343 41,904 447,606 63,627 - - 973,480 Technology Fund 248,171 248,200 75,733 69,838 52,145 - 694,087 TOTAL INTERNAL SERVICE FUNDS 668,513 2,791,924 523,339 133,465 52,145 - 4,169,386 SPECIAL REVENUE FUNDS Conservation Trust Fund - - - - 255,000 - 255,000 Equipment Fund - 324 - 8,045 332,000 - 340,369 Lodgers Tax Fund - 175,324 - 43,921 - - 219,245 Street Improvement Fund 200,493 1,800 - 97,773 1,005,000 - 1,305,066 TOTAL SPECIAL REVENUE FUNDS 200,493 177,448 - 149,739 1,592,000 - 2,119,679 TOTAL ALL FUNDS 12,492,647 5,195,295 3,061,234 2,159,261 4,693,478 1,423,882 29,025,797

*Excludes Depreciation


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2019 Personnel Services

Charges & Services

Materials & Supplies

Intergovernmental & Grants

Capital Outlay

Debt Service Total

OPERATING FUND General Fund 7,898,760 1,280,892 1,838,267 1,580,111 884,340 212,000 13,694,370 TOTAL OPERATING FUND 7,898,760 1,280,892 1,838,267 1,580,111 884,340 212,000 13,694,370 ENTERPRISE FUNDS Airport Fund 164,199 12,100 39,250 - 1,460,964 - 1,676,513 Cortez Community Network Fund 84,085 255,490 109,101 6,500 144,000 - 599,176 Dispatch Fund 819,308 32,664 46,105 - 25,000 - 923,077 Hydro Plant Fund - 4,000 1,000 - 3,000 69,405 77,405 Recreation Center Fund 862,206 49,750 366,446 - 422,100 610,050 2,310,552 Refuse Fund 785,583 373,367 176,501 44,645 160,000 - 1,540,096 Water Fund 871,313 202,954 419,045 252,545 1,098,525 535,130 3,379,512 TOTAL ENTERPRISE FUNDS 3,422,495 918,225 1,118,198 303,690 1,852,625 1,214,585 8,829,818 INTERNAL SERVICE FUNDS Self-Insured Health Fund - 3,018,530 - - - - 3,018,530 Shop Fund 394,721 52,475 431,850 2,800 52,000 - 933,846 Technology Fund 252,328 212,000 87,300 - 334,145 - 885,773 TOTAL INTERNAL SERVICE FUNDS 647,049 3,283,005 519,150 2,800 386,145 - 4,838,149 SPECIAL REVENUE FUNDS Conservation Trust Fund - - - - 112,500 - 112,500 Equipment Fund - 250 - 125,000 352,000 - 477,250 Lodgers Tax Fund - 207,210 - 35,411 - - 242,621 Street Improvement Fund 223,714 1,800 - - 1,605,000 - 1,830,514 TOTAL SPECIAL REVENUE FUNDS 223,714 209,260 - 160,411 2,069,500 - 2,662,885 TOTAL ALL FUNDS 12,192,018 5,691,382 3,475,615 2,047,012 5,192,610 1,426,585 30,025,222

*Excludes Depreciation


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General Fund:

Summary of Revenues & Expenditures: FY 2018 FY 2018 FY 2019 FY 2020 Actuals Budget Budget Budget Beginning Fund Balance 5,112,139 5,112,139 4,672,194 4,291,176 Revenues Taxes 8,870,795 9,674,012 10,109,334 9,476,985 Licenses and Permits 234,366 429,790 414,875 228,025 Intergovernmental 1,215,806 1,300,810 1,307,700 1,230,500 Recreation 485,969 494,817 496,500 515,740 Charges for Service 33,061 30,300 30,300 32,627 Fines and Forfeits 54,564 79,000 74,700 70,438 Interest 17,354 12,000 12,000 17,000 Miscellaneous 101,413 221,262 121,443 160,800 Grants 403,952 614,021 530,000 405,000 Interfund Services Revenues - 205,224 216,500 113,921 TOTAL REVENUE 11,417,281 13,061,236 13,313,352 12,251,036 TOTAL AVAILABLE 16,529,420 18,173,375 17,985,546 16,542,212 Operating Expenditures City Council (321,244) (388,632) (382,281) (444,270) Municipal Court (170,683) (172,748) (189,018) (183,777) Marketing (121,960) (122,372) (143,636) (143,159) City Manager (341,404) (353,410) (325,450) (147,667) Human Resources (230,209) (217,040) (231,371) (131,690) City Clerk (162,143) (156,562) (156,024) (139,376) Finance (486,987) (483,185) (499,709) (292,342) Grant Administrator (22,301) (20,247) (28,354) - General Services (478,897) (529,259) (567,118) (503,872) Police (3,642,768) (3,928,021) (4,097,759) (4,004,557) Public Works (1,226,199) (1,263,881) (1,297,687) (1,168,244) Planning & Building (472,898) (513,286) (614,383) (500,591) Parks & Recreation (1,580,133) (1,592,021) (1,668,241) (1,658,585) Library (640,721) (640,787) (656,754) (623,345) Welcome Center-City (135,329) (151,653) (162,134) (80,080) Interfund Services Provided (1,426,213) (1,483,432) (1,537,611) (1,695,481) TOTAL OPERATING EXPENDITURES (11,460,091) (12,016,536) (12,557,530) (11,717,035) Other Expenditures Capital Projects/Capital Items (636,454) (1,222,110) (884,340) (300,000) Grants/Support Programs (36,195) (46,535) (40,500) (26,000) Roger Smith Ave - Debt Service (16,000) (216,000) (212,000) (208,000) Depreciation - - - - Transfer to CCN Fund - - - - TOTAL OTHER EXPENDITURES (688,649) (1,484,645) (1,136,840) (534,000) TOTAL EXPENDITURES (12,148,740) (13,501,181) (13,694,370) (12,251,035) CHANGE IN NET POSITION (731,459) (439,945) (381,018) 0 ENDING FUND BALANCE 4,380,680 4,672,194 4,291,176 4,291,176 FUND BALANCE REQUIREMENTS 2,292,018 2,403,307 2,511,506 2,343,407 20% of Operating Expenditures


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Revenues: FY 2018 FY 2018 FY 2019 FY 2020

Actuals Budget Budget Budget TAXES Current Year 44,320 108,500 108,500 280,000 Prior Year 2 50 50 - Interest (312) 500 335 - S.O. Motor Vehicle - 40,000 40,000 33,000 Sales Tax 8,025,551 8,744,381 9,181,600 8,405,841 Cigarette 27,769 55,691 61,260 25,000 Cable TV 14,890 14,890 14,890 14,000 Empire Electric 522,295 490,000 490,000 526,313 ATMOS Energy 107,701 100,000 100,000 105,000 Qwest 12,000 12,000 12,000 12,000 CREA - Vendor's Fee (136,663) (146,016) (153,317) (179,169) Marijuana Tax 253,243 254,016 254,016 255,000 TOTAL TAXES 8,870,795 9,674,012 10,109,334 9,476,985 LICENSES AND PERMITS Liquor Occupation 17,429 10,500 10,500 11,675 Sales/Lodgers Tax Permit 1,560 1,500 1,500 1,500 Billboard Signs 3,076 3,000 3,000 1,500 Building 148,689 340,000 340,000 150,000 Misc. Bus, Lic & Permits 1,963 2,300 2,300 - P.W. Maps/Publications 3,566 3,000 3,000 2,000 Liquor 53,509 50,000 50,000 57,250 Gas/Plumber 550 475 475 825 Dog/Cat Licenses 3,305 3,600 3,600 3,000 Misc. Business Licenses 675 500 500 275 Gas/Plumbing Inspect Fee 45 1,265 - - TOTAL LICENSES AND PERMITS 234,366 429,790 414,875 228,025 INTERGOVERNMENTAL Highway User Tax 311,328 312,000 312,000 320,000 State Of Co Snow Removal Reimb 3,194 5,000 5,000 3,500 Local Govt Severance Tax 71,247 71,247 65,000 72,000 Mineral Leasing Tax 668,368 668,368 650,000 670,000 Welcome Center 63,210 76,695 110,700 - Road And Bridge 47,958 117,000 117,000 117,000 Kennel Services 27,500 27,500 25,000 25,000 School Resource Officer 23,000 23,000 23,000 23,000 Joint Billing Agreement - - - - TOTAL INTERGOVERNMENTAL 1,215,806 1,300,810 1,307,700 1,230,500 RECREATION Outdoor Pool Concessions 7,760 7,514 6,000 7,800 Recreation Programs 5,335 6,000 6,000 12,100 Green Fees 149,122 148,000 150,000 150,000 Passes/Tickets 157,168 167,500 167,500 175,000 Golf Cart Revenue 46,373 46,373 50,000 47,925 Pool 53,494 53,476 54,000 52,500 Rec Facility Use 630 1,600 1,600 2,515 Playground Days 38,320 37,654 38,000 44,510 Basketball 6,730 6,200 6,400 6,600 Softball 7,900 7,900 5,000 7,800 Volleyball 7,648 7,000 7,000 5,990 Vehicle Inspection Fees 940 600 - - Park Rental Fees 4,550 5,000 5,000 3,000 TOTAL RECREATION 485,969 494,817 496,500 515,740 CHARGES FOR SERVICE Kennel Adoption Fees 4,225 4,000 4,000 3,827 Spay/Neuter Program 20,141 17,000 17,000 20,000 Rabies Deposit 975 1,300 1,300 1,000 Annual Impound Fees 7,720 8,000 8,000 7,800 TOTAL CHARGES FOR SERVICE 33,061 30,300 30,300 32,627


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FINES AND FORFEITS Municipal Court 34,506 52,000 52,000 44,700 DUI/Seat Belt - County 1,880 7,300 3,000 7,414 Overtime Parking 1,075 1,200 1,200 1,000 D.A.R.E Fines 997 1,500 1,500 1,000 Library 16,106 17,000 17,000 16,324 TOTAL FINES AND FORFEITS 54,564 79,000 74,700 70,438 INTEREST Investments 17,354 12,000 12,000 17,000 TOTAL INTEREST 17,354 12,000 12,000 17,000 MISCELLANEOUS Pinon Project - Interest Repay 12,439 14,593 - 4,300 Pinon Project - Principal Pay 4,258 - 14,593 12,000 Rodeo Drive Maintenance 4,190 5,200 5,200 4,500 Overage/Shortage 207 200 200 - Tree Donations 550 750 750 - Library Donations 22,622 24,000 1,500 1,000 Kennel Donations 8,985 10,200 10,000 10,000 Parks & Recreation Donations 10,320 8,745 3,500 - Miscellaneous Sales & Fee 35,409 75,000 75,000 110,000 Welcome Center Rents - 10,000 10,000 15,000 Sale Of Equipment 2,300 100 100 - Surplus Auction 133 600 600 - Sale Of High School Property - 71,874 - - TOTAL MISCELLANEOUS 101,413 221,262 121,443 160,800 GRANTS Colorado Historical Soc - 6,800 20,000 10,000 Pet Overpopulation Fund - 12,000 12,000 - Police Grants 41,340 35,000 35,000 35,000 Dola Grant F15G7575 - 13,945 - - DOLA Fs18S85856 11,471 21,000 - - GOCO Old High School 169,304 169,276 350,000 300,000 Goco Grant - Playground - 95,000 - - Dola - Library Needs Assessment 1,829 12,500 - - 2015-Va-16-013651-22 Vict Resp 14,656 57,000 57,000 - Voca Grant 13-Va-22-98 2,500 2,500 - - 2015-Va-16-013651-22 (Voca) 19,593 20,000 20,000 20,000 V.A.L.E. Grant 35,258 36,000 36,000 36,000 Grants-Library - 25,000 - 4,000 GOCO Grant (Pickleball Courts) 108,000 108,000 - - TOTAL GRANTS 403,952 614,021 530,000 405,000 INTERFUND SERVICES REVENUES Water Fund - 153,733 166,500 60,000 Lodgers Tax Fund - 38,000 40,000 43,921 Solid Waste Fund - 13,391 10,000 10,000 TOTAL INTERFUND SERVICES REVENUES - 205,124 216,500 113,921 TOTAL REVENUES 11,417,281 13,061,136 13,313,352 12,251,036


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General Fund Consolidated Cost Categories:

2020 Personnel Services

Charges & Services

Materials & Supplies Intergovernmental & Grants Capital Outlay Debt Service Total

City Council 40,814 359,156 44,300 26,000 - 208,000 678,270 Municipal Court 156,317 25,100 2,360 - - - 183,777 Marketing 82,664 5,675 54,820 - - - 143,159 City Manager 250,745 30,700 20,639 (154,417) - - 147,667 Human Resources 193,745 17,150 25,670 (104,875) - - 131,690 City Clerk 175,890 25,700 48,155 (110,369) - - 139,376 Finance 355,223 235,500 19,830 (318,212) - - 292,342 Grant Administrator - - - - - - - General Services 360,427 78,175 64,270 1,000 - - 503,872 Police 3,397,029 261,689 345,839 - - - 4,004,557 Public Works 747,924 115,320 305,000 - - - 1,168,244 Planning & Building 403,306 35,950 61,335 - - - 500,591 Parks & Recreation 1,065,282 158,161 435,141 - 300,000 - 1,958,585 Library 443,780 36,640 142,925 - - - 623,345 Welcome Center-City - 54,140 25,940 - - - 80,080 Interfund Services Provided - - - 1,695,481 - - 1,695,481 TOTAL GENERAL FUND 7,673,146 1,439,056 1,596,225 1,034,608 300,000 208,000 12,251,035


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Expenditures by Department: City Council Consisting of seven members, City Council acts as the governing, legislative branch, and policy-making body for Cortez. Council develops goals and objectives in line with community needs through the enactment of ordinances and resolutions providing direction to the City Manager, City Departments, and support staff.

Expenditures

FY 2018 FY 2018 FY 2019 FY 2020 2020/2019 Budget % Change Actuals* Budget Budget Budget

Personnel Services 35,194 39,312 39,361 40,814 4% Charges & Services 228,962 279,100 278,100 359,156 29% Materials & Supplies 57,088 70,220 64,820 44,300 -32% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants 36,035 36,035 31,500 26,000 -17% Debt Service 16,000 216,000 212,000 208,000 -2% Depreciation - - - - 0% Total 373,279 640,667 625,781 678,270 8%

FTE - - - - 0%

Changes compared to prior year adopted budget:

Amount Increase or (Decrease) Cost Category Description

1,450 Increase Personnel Services Personnel services increase due to an extra pay period occurring in the year

(47,000) Decrease Charges & Services

Mesa Verde Country receives funds from the City to support marketing programs. Monies paid to Mesa Verde Country are funded from both the General and Lodgers Tax Fund. For FY 2020, the City proposes to increase funding from the Lodgers Tax Fund while reducing funding from the General Fund. Additionally, the City proposes to reduce FY 2020 funding by 10% from 2019 budget (i.e. reduce from $384k to $345k).

30,000 Increase Charges & Services Increase in attorney fees 3,000 Increase Charges & Services Increase in insurance premiums

(8,000) Decrease Charges & Services Reduction in contract services purchased for what is needed/forecasted

(3,600) Decrease Materials & Supplies Reduced meals for Council and Planning and Zoning meetings

(2,100) Decrease Materials & Supplies Reduced memberships by eliminating memberships to the Chamber of Commerce and Club 20

(1,500) Decrease Materials & Supplies Reduced youth commission budget to $1,000 from $2,500

(4,000) Decrease Materials & Supplies Removed contingency amount from budget

(16,000) Decrease Materials & Supplies Reduction in Materials & Supplies overall (e.g. postage, office supplies

(5,000) Decrease Materials & Supplies Trimmed community support grants from $31.5k to $26k

(52, 750) Decrease Total Change


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City Manager The City Manager is Chief Executive Officer and head of the Administrative Branch of the municipal government. All city department heads report directly to the City Manager as the Chief Administrative Officer. The City Manager is directly responsible to the council for the administration of the City.

Expenditures

FY 2018 FY 2018 FY 2019 FY 2020 2020/2019 Budget % Change Actuals* Budget Budget Budget

Personnel Services 254,537 311,689 294,726 250,745 -15% Charges & Services 48,117 7,891 5,959 30,700 415% Materials & Supplies 38,750 33,830 24,765 20,639 -17% Intergovernmental - - - (154,417) 0% Capital Outlay - - - - 20% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 341,404 353,410 325,450 147,667 -55%

FTE 3.1 3.0 3.0 2.2 -28%



28,500 Increase Personnel Services Personnel services increase due to average merit increase of 3.5% and an extra pay period occurring in the year

25,000 Increase Charges & Services Consolidated Grant Administrator budget into City Manager budget

(5,000) Decrease Materials & Supplies Reduced travel and training expenses (154,417) Decrease Intergovernmental Allocation of City Manager services to other funds (105,917) Decrease Total Change

Human Resources One of the most important assets of the City of Cortez are our people. Human Resources supports the City’s success by supporting both the organization and employees through benefits management, employee relations, recruitment, talent management, employee development, and compliance with regulations.

Expenditures FY 2018 FY 2018 FY 2019 FY 2020 2020/ 2019

Budget % Change Actuals* Budget Budget Budget Personnel Services 177,786 178,847 183,831 193,745 5% Charges & Services 14,836 26,065 21,300 17,150 -19% Materials & Supplies 10,369 12,128 26,240 25,670 -2% Intergovernmental - - - (104,875) 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 202,991 217,040 231,371 131,690 -43%

FTE 2.0 2.0 2.0 2.0 0%


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Investment into Human Capital Management (HCM) subscription services and technology. FY 2020 HCM investment is for a half-year of services. Cost savings in personnel services is expected to be reduced by 2% annually and is reflected within the budget. Additional savings are expected with the use of HCM services and technology but are not included in the budget currently. For example, the use of time clocks to accurately track and record worked hours may reduce personnel service costs by an additional 1% conservatively.

(104,874) Decrease Intergovernmental Allocation of Human Resource services to other funds (99,874) Decrease Total Change

Municipal Court The Cortez Municipal Court assists in the operation of the judicial system of Cortez by processing moving and parking traffic violations and misdemeanor charges, which occur in the city limits. The Cortez Municipal Court has jurisdiction over a variety of municipal ordinances including, but not limited to:

• Traffic • Parking • Animal Protection (violations) • Shoplifting • Trespassing • Disturbing the Peace • Indecent Exposure • Underage Consumption/Possession • Open Container • Intoxicated Pedestrian in Roadway • Resisting Arrest/Interfering with Police

Officer • Land Use Code Enforcement

The Cortez municipal court judge is appointed by city council. The municipal court clerk serves as court administrator. The administrator and staff act as support to the municipal judge and handle the daily administrative duties of the court.


Budget % Change Actuals* Budget Budget Budget Personnel Services 145,488 144,706 148,833 156,317 5% Charges & Services 21,861 24,232 34,795 25,100 -28% Materials & Supplies 3,335 3,810 5,390 2,360 -56% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 170,683 172,748 189,018 183,777 -3%

FTE 3.0 3.0 3.0 3.0 0%


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(9,700) Decrease Charges & Services Reduction in budget for Court Appointed Attorneys and First appearances to match actuals

(3,000) Decrease Materials & Supplies Trimmed budget for general office supplies

(5,200) Decrease Total Change

City Clerk The City Clerk’s Office supports the Cortez City Council as the official record keeper and custodian of city records. The City Clerk prepares agenda packets and minutes for the City Council meetings as well as processes public notices, ordinances, and resolutions. The City Clerk is also responsible for the administration and management of the following licenses:

• Liquor establishments (including special events) • Medical & Retail Marijuana • Pawnbrokers • Plumber/gas fitters • Tree pruners

Additionally, the City Clerk is the elections officer for all city elections.


Budget % Change Actuals* Budget Budget Budget Personnel Services 104,000 98,612 106,174 175,890 66% Charges & Services 18,271 18,300 7,300 25,700 252% Materials & Supplies 38,540 38,450 41,550 48,155 16% Intergovernmental 1,333 1,200 1,000 (110,369) -11137% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 162,143 156,562 156,024 139,376 -11%

FTE 1.0 1.0 1.0 2.0 100%


70,000 Increase Personnel Services

Personnel services increase due to moving Account Payable Clerk from Finance department to City Clerk department, average merit increase of 3.5%, and an extra pay period occurring in the year

18,000 Increase Charges & Services 2020 is an election year, requiring an increase in election related services

6,600 Increase Materials & Supplies Increase to City wellness program

(1,500) Decrease Materials & Supplies

Removed attendance to deputy Clerk Conference in 2020


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(110,000) Decrease Intergovernmental Allocation of City Clerk services to other funds (16,900) Decrease Total Change

Finance Department The Finance Department is responsible for supporting City Council, City Manager, and department leadership with the financial administration and management for the City of Cortez. The department is responsible for the following processes while executing financial controls:

• Financial Administration & Operations • Accounting & Treasury • Financial Reporting • Financial Statement Audit • Budget

• Accounts Payable/Receivable • Payroll • Revenue Administration • Utility Billing

Expenditures

FY 2018 FY 2018 FY 2019 FY 2020 2020/ 2019 Budget %

Change Actuals* Budget Budget Budget

Personnel Services 423,416 426,762 432,658 355,223 -18% Charges & Services 47,423 40,955 49,543 235,500 375% Materials & Supplies 16,054 15,468 17,508 19,830 13% Intergovernmental 94 - - (318,212) 0% Capital Outlay - - - - 0% Grants 160 10,500 9,000 - -100% Debt Service - - - - 0% Depreciation - - - - 0% Total 487,147 493,685 508,709 292,342 -43%

FTE 5.0 5.0 5.0 4.0 -20%



(77,000) Decrease Personnel Services

Personnel services decreased due to: moving Accounts Payable Clerk from Finance department to City Clerk department, new Finance Director at a lower salary than previous Director. The decrease is partially offset by increases in salaries due to average merit increase of 3.5%, and an extra pay period occurring in the year

20,000 Increase Charges & Services

Investment associated in contracting tax audit services to audit vendors for sales, lodgers, & use tax compliance. Costs are expected to be offset by an increase in tax revenues through improved vendor compliance


Financial Statement audits from 2016 to present are delinquent. The investment is to support Finance Department in correcting and preparing past years financials for financial audit review


Investment into Human Capital Management (HCM) subscription services and technology. FY 2020 HCM investment is for half-year of services. Cost savings in personnel services is expected to be reduced by 2% annually and is reflected within the budget. Additional


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savings are expected with the use of HCM services and technology but are not included in the budget currently. For example, the use of time clocks accurately track and record worked hours may reduce personnel service costs by an additional 1% conservatively.

25,000 Increase Charges & Services One-time implementation fee of HCM subscription service (including payroll and timesheets)

19,000 Increase Charges & Services Budget for financial auditors was moved to be budgeted for in the Finance Department

(318,212) Decrease Intergovernmental Allocation of Finance services to other funds

(9,000) Decrease Grants

Prior budgets have appropriated money for grants made from the Finance department budget. However, no monies have been expended. As such, FY 2020 budget reduction reflects actuals


General Services The General Services Department comprises several divisions. These divisions are Administration, Building Maintenance, Shop Rotary, Fiber Network, and the Equipment Fund. Each of these divisions has a specific area of responsibility and charge of work. In addition to these divisions, the Department also undertakes special projects for the City (i.e. Fiber Optics, Library Expansion).

Expenditures FY 2018 FY 2018 FY 2019 FY 2020 2020/2019

Budget % Change Actuals* Budget Budget Budget Personnel Services 345,987 346,633 356,303 360,427 1% Charges & Services 57,089 56,178 83,545 78,175 -6% Materials & Supplies 68,677 125,448 126,270 64,270 -49% Intergovernmental - 1,000 1,000 1,000 0% Capital Outlay 425,541 999,000 670,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 897,294 1,528,259 1,237,118 503,872 -59%

FTE 4.0 4.0 4.0 4.0 0%




(7,000) Decrease Charges & Services Cancelled contract to clean walkway rugs throughout City Hall

(20,000) Decrease Materials & Services

For transparency and ease, intergovernmental shop fund costs were moved to be accounted for within the Intergovernmental department budget

(2,500) Decrease Material & Supplies Trimmed professional development trainings


Reduction in costs for repairs and maintenance and items under $5k (e.g. furniture and equipment)


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Reduction in electric charges due to solar electricity at City Hall


Reduction in office supplies (e.g. postage, paper, printer cartridges, etc.)

(670,000) Decrease Capital Outlay No capital projects projected for FY 2020 (733,000) Decrease Total Change

Administration The Administration division handles large bids for the City goods and services. This may take the form of purchasing commodities such as vehicles and chemicals for the City to use, or developing Request for Proposals for new buildings and infrastructure. The division also overseas various contracts for these type of purchases, developing specifications, negotiations, and making sure the City is covered by bonded contractors, and making sure the various bonds are correct. This division is also responsible for some of the City’s Capital Projects and special Projects. The division also is in charge of the fiber optic Cortez Community Network.

Expenditures FY 2018 FY 2018 FY 2019 FY 2020 2020/2019 Budget

% Change Actuals* Budget Budget Budget Personnel Services $123,286 $122,878 $126,395 $131,402 4% Charges & Services $3,967 $4,548 $4,765 $4,800 1% Materials & Supplies $5,939 $25,950 $25,950 $2,960 -89% Intergovernmental $0 $1,000 $1,000 $1,000 0% Capital Outlay 412,124 979,000 650,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 545,316 1,133,376 808,110 140,162 -83%

FTE 1.0 1.0 1.0 1.0 0%

Building Maintenance The Building Maintenance division handles the maintenance and small construction projects for all the City’s buildings. The division covers all of the main City buildings and the park and golf facilities. This charge of work covers items from the restroom on the number three tee at the golf course to maintaining City Hall, Police Building, Service Center, Welcome Center, and the Library.


% Change Actuals* Budget Budget Budget Personnel Services 222,701 223,755 229,908 229,025 0% Charges & Services 1,630 1,630 1,780 2,175 22% Materials & Supplies 2,895 9,678 10,500 6,200 -41% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 227,225 235,063 242,188 237,400 -2%

FTE 3.0 3.0 3.0 3.0 0%


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City Hall Operations The City Hall Operations division exists to budget for and capture expenses related to the maintenance and operations of City Hall building. Expenses within the division include such items as solar electricity, janitorial, security, fiber/internet, water, refuse, sanitation, general building repairs and maintenance, and office supplies.


% Change Actuals* Budget Budget Budget Personnel Services - - - - 0% Charges & Services 51,492 50,000 77,000 71,200 -8% Materials & Supplies 59,843 89,820 89,820 55,110 -39% Intergovernmental - - - - 0% Capital Outlay 13,417 20,000 20,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 124,752 159,820 186,820 126,310 -32%

FTE - - - - 0%

Police Department The Police Department is responsible for the preservation of public peace, prevention of crime, apprehension of criminals, protection of the rights of persons and property, and enforcement of the City charter and ordinances.


Budget % Change Actuals* Budget Budget Budget Personnel Services 3,091,203 3,299,628 3,396,976 3,397,029 0% Charges & Services 222,723 274,312 346,702 261,689 -25% Materials & Supplies 328,843 354,081 354,081 345,839 -2% Intergovernmental - - - - 0% Capital Outlay 21,955 27,840 27,840 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 3,664,724 3,955,861 4,125,599 4,004,557 -3%

FTE 42.9 44.6 44.6 43.0 -4%



(102,000) Decrease Charges & Services Reduced service costs provided by Montezuma County for prisoner custody to match what the City is actually paying and receiving

12,000 Increase Charges & Services Moved budget for police uniform cleaning service to Charges & Services from Materials & Supplies

3,500 Increase Charges & Services Increase to Spay/Neuter program to match actuals from 2018

(7,700) Decrease Charges & Services Trimmed general materials and supplies to match actuals

15,000 Increase Materials & Supplies Increased purchases of items under $5,000 for body armor, vehicle repairs, computer and office equipment


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(14,000) Decrease Materials & Supplies Reduction in repairs and maintenance to police building

(27,840) Decrease Capital Outlay Deferment of capital projects (121,040) Decrease Total Change

Administration


Budget % Change Actuals* Budget Budget Budget Personnel Services 324,069 335,977 346,778 371,666 7% Charges & Services 27,366 33,130 33,877 34,560 2% Materials & Supplies 63,260 63,406 63,406 67,280 6% Intergovernmental - - - - 0% Capital Outlay 10,476 9,840 9,840 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 425,171 442,353 453,901 473,506 4%

FTE 3.5 3.6 3.6 3.4 -6%

Patrol


Budget % Change Actuals* Budget Budget Budget Personnel Services 1,925,827 2,064,457 2,124,440 2,081,717 -2% Charges & Services 47,834 52,740 54,252 70,900 31% Materials & Supplies 108,811 125,645 125,645 132,900 6% Intergovernmental - - - - 0% Capital Outlay - 3,000 3,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 2,082,471 2,245,842 2,307,337 2,285,517 -1%

FTE 26.2 26.0 26.0 26.0 0%

Support Services


Budget % Change Actuals* Budget Budget Budget Personnel Services 182,277 208,396 214,722 210,146 -2% Charges & Services 115 114 118 150 27% Materials & Supplies 3,777 3,500 3,500 4,580 31% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 186,168 212,010 218,340 214,876 -2%

FTE 2.9 3.0 3.0 3.0 0%


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Detectives


Budget % Change Actuals* Budget Budget Budget Personnel Services 485,203 500,842 515,640 537,685 4% Charges & Services 2,725 4,632 4,721 2,600 -45% Materials & Supplies 19,412 26,000 26,000 23,620 -9% Intergovernmental - - - - 0% Capital Outlay - 3,000 3,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 507,340 534,474 549,361 563,905 3%

FTE 6.1 6.0 6.0 6.0 0%

Corrections


Budget % Change Actuals* Budget Budget Budget Personnel Services - - - - 0% Charges & Services 104,189 140,500 210,500 108,200 -49% Materials & Supplies - - - - 0% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 104,189 140,500 210,500 108,200 -49%

FTE - - - - 0%

Building


Budget % Change Actuals* Budget Budget Budget Personnel Services - - - - 0% Charges & Services 26,802 29,500 29,500 28,020 -5% Materials & Supplies 103,451 103,255 103,255 85,743 -17% Intergovernmental - - - - 0% Capital Outlay 11,479 12,000 12,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 141,733 144,755 144,755 113,763 -21%

FTE - - - - 0%


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Kennel


Budget % Change Actuals* Budget Budget Budget Personnel Services 173,827 189,956 195,396 195,814 0% Charges & Services 13,693 13,696 13,734 17,259 26% Materials & Supplies 30,132 32,275 32,275 31,716 -2% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 217,652 235,927 241,405 244,789 1%

FTE 4.3 6.0 6.0 4.6 -23%

Public Works The Public Works Department is responsible for the administration and management of the City’s infrastructure including streets, traffic management, and storm water collection systems. The public services include:

• Street maintenance • Storm drain maintenance • Street painting • Tree trimming • Traffic sign maintenance • Street light maintenance • Snow plowing and related materials • Street cleaning


Budget % Change Actuals* Budget Budget Budget Personnel Services 876,252 859,923 852,259 747,924 -12% Charges & Services 70,117 69,775 113,028 115,320 2% Materials & Supplies 279,830 334,183 332,400 305,000 -8% Intergovernmental - - - - 0% Capital Outlay 10,038 10,000 15,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 1,236,237 1,273,881 1,312,687 1,168,244 -11%

FTE 11.8 10.6 10.1 10.5 4%




Reduction in Personnel Services costs due improved budget calculations of personnel costs (e.g. payroll and healthcare). Additional cost savings of approximately $50k due to implementation of HCM services

(3,000) Decrease Charges & Services Reduced services to match actual spend

(54,000) Decrease Materials & Supplies For transparency and ease intergovernmental shop fund costs were moved to be accounted for within the Intergovernmental department budget

10,000 Increase Materials & Supplies Increased costs of landfill fees for city wide clean-up


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10,000 Increase Materials & Supplies Street painting and striping costs were increased for FY 2020 for planned work

11,500 Increase Materials & Supplies Increase in general supplies for street cleaning, snow & ice removal, and traffic services


Administration


Budget % Change Actuals* Budget Budget Budget Personnel Services 311,079 270,979 246,353 234,629 -5% Charges & Services 42,092 47,875 47,394 44,790 -5% Materials & Supplies 29,050 67,583 73,300 18,250 -75% Intergovernmental - - - - 0% Capital Outlay 1,324 5,000 5,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 383,545 391,437 372,047 297,669 -20%

FTE 4.0 3.5 3.0 3.0 0%

Streets & Utilities


Budget % Change Actuals* Budget Budget Budget Personnel Services 408,178 433,271 445,613 368,265 -17% Charges & Services 18,752 13,000 21,981 24,400 11% Materials & Supplies 58,657 52,300 52,200 61,600 18% Intergovernmental - - - - 0% Capital Outlay 8,713 5,000 10,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 494,301 503,571 529,794 454,265 -14%

FTE 5.7 5.1 5.1 5.5 8%

Traffic Services


Budget % Change Actuals* Budget Budget Budget Personnel Services - - - - 0% Charges & Services - - - - 0% Materials & Supplies 172,019 172,500 173,000 184,000 6% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 172,019 172,500 173,000 184,000 6%

FTE - - - - 0%


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Snow and Ice Removal


Budget % Change Actuals* Budget Budget Budget Personnel Services 5,031 8,130 8,130 - -100% Charges & Services 7,852 7,900 42,653 43,530 2% Materials & Supplies 4,330 26,200 28,200 30,200 7% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 17,212 42,230 78,983 73,730 -7%

FTE - - - - 0%

Street Cleaning


Budget % Change Actuals* Budget Budget Budget Personnel Services 151,964 147,543 152,163 145,030 -5% Charges & Services 1,421 1,000 1,000 2,600 160% Materials & Supplies 15,773 15,600 5,700 10,950 92% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 169,158 164,143 158,863 158,580 0%

FTE 2.0 2.0 2.0 2.0 0%

Parks & Recreation The Cortez Parks and Recreation Department provides the community with the opportunity to participate in quality recreational programs and to enjoy well-maintained parks, facilities, and golf course. The Cortez Parks and Recreation Department is responsible for the oversight of the parks, trails, open space, ball fields, outdoor swimming pool, golf course, recreation center, recreation programs, and a shared responsibility with the Cortez Public Works Department in addressing the community forestry program. The department is responsible for over 600 acres of parkland, natural areas, golf course, lakes, and undeveloped park space. The City of Cortez has a public tree population of 2,458 trees. Of these, 1,032 are street trees and the remaining 1,426 trees are located within the park system or on the Conquistador Golf Course. The Cortez Parks and Recreation Department offers youth and adult sport programs, including youth tennis, youth and adult basketball, adult softball, adult volleyball, and adult pickle ball. In addition, Parks & Recreation offer general recreation programs, including swimming lessons, exercise classes, a youth day camp during the summer months, a youth after school club, senior day trips, a fishing derby, and a skate park competition.

https://www.cityofcortez.com/Facilities/Facility/Details/Cortez-Municipal-Outdoor-Pool-41

https://www.cityofcortez.com/Facilities/Facility/Details/Conquistador-Golf-Course-55

https://www.cityofcortez.com/176/Sports-Leagues

https://www.cityofcortez.com/DocumentCenter/View/1520


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Expenditures FY 2018 FY 2018 FY 2019 FY 2020 2020/2019

Budget % Change Actuals* Budget Budget Budget Personnel Services 942,037 961,965 1,002,738 1,065,282 6% Charges & Services 174,695 162,783 171,927 158,161 -8% Materials & Supplies 452,694 467,273 493,576 435,141 -12% Intergovernmental - - - - 0% Capital Outlay 178,920 185,270 161,500 300,000 86% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 1,748,345 1,777,292 1,829,741 1,958,585 7%

FTE 20.3 22.9 23.1 22.1 -4%



62,500 Increase Personnel Services Personnel services increase due to average merit increase of 3.5% ,an extra pay period occurring in the year, and increases in minimum wage

(14,000) Decrease Charges & Services Reduction in project related services as projects for FY 2020 have been deferred


Across the board reductions in operating supplies, equipment, furniture, advertising, repairs and maintenance to vehicles and buildings

138,500 Increase Capital Outlay Old High School Park construction of $300k, which is fully funded by Great Outdoors Colorado (GOCO) grant


Administration


Budget % Change Actuals* Budget Budget Budget Personnel Services 99,551 99,685 102,708 105,897 3% Charges & Services 13,071 22,895 19,497 3,935 -80% Materials & Supplies 7,863 6,511 4,300 2,365 -45% Intergovernmental - - - - 0% Capital Outlay 128,702 123,624 112,500 300,000 167% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 249,185 252,715 239,005 412,197 72%

FTE 1.0 1.0 1.0 1.0 0%


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Aquatics


Budget % Change Actuals* Budget Budget Budget Personnel Services 111,177 111,836 113,928 118,233 4% Charges & Services 6,596 6,418 6,743 7,145 6% Materials & Supplies 82,361 84,832 71,773 60,400 -16% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 200,134 203,086 192,444 185,778 -3%

FTE 3.5 3.2 3.2 3.7 14%

Golf Course Administration


Budget % Change Actuals* Budget Budget Budget Personnel Services - - 300 - -100% Charges & Services 54,081 45,656 46,500 47,814 3% Materials & Supplies 15,279 17,450 24,375 11,100 -54% Intergovernmental - - - - 0% Capital Outlay - - 16,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 69,360 63,106 87,175 58,914 -32%

FTE - - - - 0%

Golf Course Maintenance


Budget % Change Actuals* Budget Budget Budget Personnel Services 257,312 258,408 283,810 322,089 13% Charges & Services 11,070 12,373 17,230 16,333 -5% Materials & Supplies 107,482 109,372 125,578 114,871 -9% Intergovernmental - - - - 0% Capital Outlay 25,420 25,646 6,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 401,284 405,799 432,618 453,293 5%

FTE 5.4 7.0 7.0 6.2 -12%


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Parks


Budget % Change Actuals* Budget Budget Budget Personnel Services 352,996 360,196 365,945 381,088 4% Charges & Services 79,148 66,636 73,628 66,078 -10% Materials & Supplies 214,845 226,157 243,050 224,613 -8% Intergovernmental - - - - 0% Capital Outlay 24,798 36,000 27,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 671,787 688,989 709,623 671,779 -5%

FTE 7.3 7.2 7.4 7.5 1%

Recreation


Budget % Change Actuals* Budget Budget Budget Personnel Services 121,001 131,840 136,047 137,976 1% Charges & Services 10,729 8,805 8,329 16,856 102% Materials & Supplies 24,865 22,951 24,500 21,792 -11% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 156,594 163,596 168,876 176,624 5%

FTE 3.1 4.5 4.5 3.8 -16%

Library The Cortez Public Library provides information and recreation through its collection of books, audio books, computers, and programs. The Library currently has over 75,000 books, videos and audio books for patrons to check out and is constantly growing.


% Change Actuals* Budget Budget Budget Personnel Services 431,066 437,623 439,821 443,780 1% Charges & Services 42,320 41,556 47,310 36,640 -23% Materials & Supplies 167,335 161,608 169,623 142,925 -16% Intergovernmental - - - - 0% Capital Outlay - - 10,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 640,721 640,787 666,754 623,345 -7%

FTE 8.3 9.3 9.3 7.9 -15%


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Personnel services increase due to average merit increase of 3.5% and an extra pay period occurring in the year. The increase is partially offset by a reduction in costs related to a reduction of hours of part-time employees based. The reduction in hours is needs based

(15,000) Decrease Charges & Services Cancelled contract to clean walkway rugs throughout Library (approximately $3.5k). Additional savings are due to revising FY 2020 budget to 2018 actuals


Reduction in the purchases of books and non-print resources


Trimmed budget for purchases of office equipment (e.g. chairs)


Removed grant match dollars due to a State Library grant that is no longer available


Planning & Building The Planning and Building Department consists of four divisions:

• The Planning & Zoning Division is dedicated to guiding the development of the City of Cortez, through both short-term and long-term planning activities

• The Building Division is primarily responsible for inspections of all phases of commercial and residential construction

• The Fire Division conducts inspections and plan review of commercial projects to ensure that all federal, state, and local fire codes are met and maintained. Burn permits are issued through our offices located at 123 Roger Smith Avenue, Monday-Friday. There are no fees for burn permits

• The Code Enforcement Division is responsible for unsafe structures, weeds, trash, junk, and other nuisances as well as zoning compliance issues

All of these services work in unison to preserve and enhance quality of life in the City of Cortez.


Budget % Change Actuals* Budget Budget Budget Personnel Services 422,644 454,886 469,983 403,306 -14% Charges & Services 21,898 24,000 75,200 35,950 -52% Materials & Supplies 28,356 34,400 69,200 61,335 -11% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 472,898 513,286 614,383 500,591 -19%

FTE 6.4 6.5 6.5 5.8 -11%

https://www.cityofcortez.com/196/Planning-Zoning

https://www.cityofcortez.com/183/Building-Division

https://www.cityofcortez.com/194/Fire-Inspection-Services

http://co-cortez2.civicplus.com/422/Property-Maintenance-Enforcement


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The city plans to defer the replacement of the Planning and Building Director who resigned in 2019. The decrease is partially offset due to average merit increase of 3.5% and an extra pay period occurring in the year


Abatement of dangerous buildings in a year is unknown. As such, the FY 2020 budget was trimmed to manage and address minor abatement issues. When larger efforts are needed (e.g. building demolition), City Staff will request monies from City Council to address abatement efforts


Across the board reduction in office supplies and other office equipment

(500) Decrease Materials & Supplies Removed contribution to Historic Preservation Society


Marketing The Marketing Department is responsible for supporting events and marketing initiatives throughout the city.


% Change Actuals* Budget Budget Budget Personnel Services 80,310 82,087 82,150 82,664 1% Charges & Services 174 175 351 5,675 1517% Materials & Supplies 41,476 40,110 61,135 54,820 -10% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 121,960 122,372 143,636 143,159 0%

FTE 1.0 1.0 1.0 1.0 0%




Accounting for the CityOfCortez.com website was moved from City Manager to Marketing


Trimmed the budget for marketing and event supplies and contributions

(500) Decrease Total Change


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Welcome Center Southwest Colorado's towns of Cortez, Dolores, Mancos and Towaoc embrace the archaeological center of America, anchored by world-renowned Mesa Verde National Park. The Colorado Welcome Center is the first point of contact for many of Cortez’s visitors. The Welcome Center is one of three that receives partial funding from the State of Colorado. In 2019, the City of Cortez contracted with Mesa Verde Country to operate and manage the Colorado Welcome Center at Cortez. The City is responsible for the maintenance and upkeep of the Welcome Center Building, including janitorial services and building repairs.

Expenditures FY 2018 FY 2018 FY 2019 FY 2020 2020/ 2019 Budget

% Change Actuals* Budget Budget Budget Personnel Services 87,130 86,535 92,947 - -100% Charges & Services 15,413 17,158 17,677 54,140 206% Materials & Supplies 32,785 47,960 51,510 25,940 -50% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 135,329 151,653 162,134 80,080 -51%

FTE 3.0 3.0 3.0 - -100%



(93,000) Decrease Personnel Services Welcome Center staff are now employees of Mesa Verde Country

30,000 Increase Charges & Services Professional services performed by Mesa Verde Country to run the Welcome Center

3,000 Increase Charges & Services Expected increase in janitorial services


Operating expenses no longer include office supplies, equipment, professional development, telephone, etc. City is responsible for providing electric, sewage, gas, water, and refuse services


Interfund Services The General Fund receives services from the Shop, Technology, and Dispatch Funds. Interfund Services represents the budgeting and accounting for those services consumed by departments within the General Fund.


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Budget % Change Actuals* Budget Budget Budget Personnel Services - - - - 0% Charges & Services - - - - 0% Materials & Supplies - - - - 0% Intergovernmental 1,426,213 1,483,432 1,537,611 1,695,481 10% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 1,426,213 1,483,432 1,537,611 1,695,481 10%

FTE - - - - 0%



40,000 Increase Intergovernmental Increase in Shop Fund expenses which are allocated to funds that receive Shop services

52,000 Increase Intergovernmental Chargeback of Eforce software from Tech Fund to Police & Dispatch

57,000 Increase Intergovernmental Increase in Tech Fund allocations to General Fund

(35,000) Decrease Intergovernmental

Removed Lodgers Tax fund transfer as transfer does not occur within Interfund Services. Transfer is accounted for as a General Fund revenue and an expense within Lodgers Tax Fund

44,000 Increase Intergovernmental Increase in Dispatch expenses which are invoiced to customers

158,000 Increase Total Change

Internal Services Funds:

Shop Fund The Shop Rotary division maintains all of the City’s equipment and vehicle fleet. The division not only makes necessary repairs to the vehicles and equipment it provides the fuel for the fleet. Occasionally the division will perform special repairs for other Departments of the City such as welding playground equipment or fabricating pipes. Under this division is the General Services Secretary and the City Buyer functions. The buyer is responsible for smaller purchasing of goods and services for all the City Departments.


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Summary of Revenues and Expenses FY 2018 FY 2018 FY 2019 FY 2020

Actuals Budget Budget Budget Beginning Fund Balance 107,779 107,779 162,812 105,116 Revenues Charges for Services 878,931 949,807 875,550 915,136 Miscellaneous Revenue 155 528 600 - TOTAL REVENUE 879,085 950,335 876,150 915,136 TOTAL AVAILABLE 986,864 1,058,114 1,038,962 1,020,252 Expenditures Personnel Services (390,721) (375,617) (394,721) (420,343) Charges & Services (50,364) (57,022) (52,475) (41,904) Materials & Supplies (420,068) (457,363) (431,850) (447,606) Intergovernmental - (2,800) (2,800) (63,627) Capital Outlay - (2,500) (52,000) - Debt Service - - - - Depreciation 1,875 - - - TOTAL EXPENDITURES (859,278) (895,302) (933,846) (973,480) CHANGE IN NET POSITION 19,807 55,033 (57,696) (58,344) ENDING FUND BALANCE* 125,711 162,812 105,116 46,772 * Excludes Depreciation

Cost Categories


Budget % Change Actuals* Budget Budget Budget Personnel Services 390,721 375,617 394,721 420,343 6% Charges & Services 50,364 57,022 52,475 41,904 -20% Materials & Supplies 420,068 457,363 431,850 447,606 4% Intergovernmental - 2,800 2,800 63,627 2172% Capital Projects - 2,500 52,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation (1,875) - - - 0% Total 859,278 895,302 933,846 973,480 4%

FTE 4.8 5.0 5.0 5.0 0%




(6,500) Decrease Charges & Services Reduced budget to be in line with 2018 actuals. Partial reduction

(3,500) Decrease Charges and Services

Reduced costs for Industrial Park Annex building as planned sale is expected in late 2019


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15,000 Increase Materials & Supplies Increase in usage and prices of fuel, oil, and parts

61,000 Increase Intergovernmental Allocation of services provided from General Fund (e.g. City Manager and Payroll)

(20,000) Decrease Capital Other

Capital items under $5,000 are not capitalized. As such, purchases of such items is included in Materials & Supplies and no longer accounted for within Capital – Other cost category.

(32,000) Decrease Capital Projects No capital projects planned for FY 2020 40,000 Increase Total Change

Shop


Budget % Change Actuals* Budget Budget Budget Personnel Services 390,721 375,617 394,721 420,343 6% Charges & Services - 6,622 6,600 9,232 40% Materials & Supplies 337,492 345,763 348,800 363,358 4% Intergovernmental - 2,800 2,800 63,627 2172% Capital Projects - 2,500 52,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation (1,875) - - - 0% Total 728,213 733,302 804,921 856,560 6%

FTE 4.8 5.0 5.0 5.0 0%

Building Operations


Budget % Change Actuals* Budget Budget Budget Personnel Services - - - - 0% Charges & Services 41,224 42,500 42,500 32,672 -23% Materials & Supplies 82,575 111,600 83,050 84,248 1% Intergovernmental - - - - 0% Capital Projects - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 123,799 154,100 125,550 116,920 -7%

FTE - - - - 0%


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Industrial Park Annex


% Change Actuals* Budget Budget Budget Personnel Services - - - - 0% Charges & Services 3,055 7,900 3,375 - -100% Materials & Supplies - - - - 0% Intergovernmental - - - - 0% Capital Projects - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 3,055 7,900 3,375 - -100%

FTE - - - - 0%

Technology Fund: The Information Technology (IT) Department is responsible for providing and managing the technological infrastructure for all City departments. The department is responsible for providing IT Support to city staff and the administration of the network. The City also provides telecommunication services to external customers, which includes the operations and maintenance of the core telecommunication network. External customers include Montezuma-Cortez RE-1 School District, Montezuma County and Sheriff’s Office, the Southwest Memorial Hospital District and the Southwest Colorado TV District.


Actuals Budget Budget Budget Beginning Fund Balance (141,302) 257,777 256,459 115,716 Revenues Charges for Services - MIS 601,371 635,492 635,492 612,442 Charges for Services - Telecom - 109,538 109,538 50,000 TOTAL REVENUE 601,371 745,030 745,030 662,442 TOTAL AVAILABLE 460,069 1,002,807 1,001,489 778,158 Expenditures Personnel Services (243,069) (233,355) (252,328) (248,171) Charges & Services (184,485) (218,000) (212,000) (248,200) Materials & Supplies (34,465) (87,300) (87,300) (75,733) Intergovernmental - - - (69,838) Capital - Outlay (263,095) (207,692) (334,145) (52,145) Debt Service - - - - Depreciation - (7,825) (7,825) (7,825) TOTAL EXPENDITURES (725,114) (754,172) (893,598) (701,912) CHANGE IN NET POSITION (123,743) (9,142) (148,568) (39,470) ENDING FUND BALANCE* (265,045) 256,460 115,716 84,071 * Excludes Depreciation


49

Cost Categories


% Change Actuals* Budget Budget Budget Personnel Services 243,069 233,355 252,328 248,171 -2% Charges & Services 184,485 218,000 212,000 248,200 17% Materials & Supplies 34,465 87,300 87,300 75,733 -13% Intergovernmental - - - 69,838 0% Capital Outlay 263,095 207,692 334,145 52,145 -84% Grants - - - - 0% Debt Service - - - - 0% Depreciation - 7,825 7,825 7,825 0% Total 725,114 754,172 893,598 701,912 -21%

FTE 3.0 3.0 3.0 3.0 0%



(4,200) Decrease Personnel Services Improved budgeting accuracy for personnel services

15,000 Increase Charges & Services Perform security testing on information technology assets

22,000 Increase Charges & Services Increased to match 2018 actuals


Reduction in purchases related to office supplies and office equipment


(282,000) Decrease Capital Projects Capital purchases reduced to FY 2020 needs. $52k capital purchase in FY 2020 is for installment purchase for Police E-Force software


IT Support


Budget % Change Actuals* Budget Budget Budget Personnel Services 243,069 233,355 252,328 248,171 -2% Charges & Services - 168,000 162,000 198,200 22% Materials & Supplies 18,818 63,300 63,300 55,533 -12% Intergovernmental - - - 69,838 0% Capital Outlay 263,095 207,692 334,145 52,145 -84% Grants - - - - 0% Debt Service - - - - 0% Depreciation - 7,825 7,825 7,825 0% Total 524,983 672,347 811,773 623,887 -23%

FTE 3.0 3.0 3.0 3.0 0%


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Network Administration


Budget % Change Actuals* Budget Budget Budget Personnel Services - - - - 0% Charges & Services 910 50,000 50,000 50,000 0% Materials & Supplies - - - - 0% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 910 50,000 50,000 50,000 0%

FTE - - - - 0%

Self-Insured Health Fund: The City of Cortez self-insures its medical insurance claims and is fully self-insured for health insurance compensation. This fund accounts for the self-insured portion of the City’s health insurance plan.


Actuals Budget Budget Budget Beginning Fund Balance 489,285 489,285 656,685 443,186 Revenues Health Insurance Citywide Charges 2,710,134 2,693,619 2,507,238 2,500,000 Employee Contributions - 171,296 185,000 240,000 Dental Insurance Citywide Charges - 90,960 104,793 113,400 Cobra Revenues 5,779 5,516 8,000 - TOTAL REVENUE 2,715,912 2,961,391 2,805,031 2,853,400 TOTAL AVAILABLE 3,205,197 3,450,676 3,461,716 3,296,586 Expenditures Claims (1,696,503) (2,134,991) (2,348,490) (1,800,000) Health Insurance Premiums (506,767) (552,000) (563,040) (526,020) Dental Insurance Premiums (99,298) (107,000) (107,000) (100,800) Cobra Premiums - - - - Federal Re-insurance Tax - - - - HSA CONTRIBUTIONS (5,500) - - (75,000) Transfers Out - - - - TOTAL EXPENDITURES (2,308,068) (2,793,991) (3,018,530) (2,501,820) CHANGE IN NET POSITION 407,845 167,400 (213,499) 351,580 ENDING FUND BALANCE 897,130 656,685 443,186 794,766


51

Cost Categories

Expenditures FY 2018 FY 2018 FY 2019 FY 2020

2020/ 2019 Budget % Change Actuals* Budget Budget Budget Claims 1,696,503 2,134,991 2,348,490 1,800,000 -23% Health Insurance Premiums 506,767 552,000 563,040 526,020 -7% Dental Insurance Premiums 99,298 107,000 107,000 100,800 -6% Cobra Premiums - - - - 0% Federal Re-insurance Tax - - - - 0% HSA CONTRIBUTIONS 5,500 - - 75,000 0% Transfers Out - - - - 0% Total 2,308,068 2,793,991 3,018,530 2,501,820 -17%

FTE - - - - 0%



(548,000) Decrease Claims Expected reduction in claims

(37,000) Decrease Health Insurance Premiums Expected reduction in Health Insurance Premium fees

(6,200) Decrease Dental Insurance Premiums Expected reductions in Dental Insurance Premium fees

75,000 Increase HSA Contributions

City to incentivize employees to switch to HSA plan by contributing to HSA


Enterprise Funds:

Airport Fund: The Airport functions as a division of the City Manager Department, and is responsible for the operation and maintenance of the Airport according to Federal Aviation Administration (FAA) regulations. Allowing for the operation of airline and general aviation traffic. The City is responsible for airfield and grounds maintenance, snow removal, federal project administration, state project administration, building maintenance, fire protection, planning, TSA liaison, and general administrative duties.

Summary of Revenues & Expenditures FY 2018 FY 2018 FY 2019 FY 2020

Actuals Budget Budget Budget Beginning Fund Balance 174,462 174,462 146,411 102,063 Revenues Operating 225,013 213,950 220,250 219,356 Intergovernmental 25,645 24,000 1,411,915 1,884,000 Miscellaneous Revenue 1,696 3,616 - 16,300 TOTAL REVENUE 252,354 241,566 1,632,165 2,119,656


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TOTAL AVAILABLE 426,816 416,028 1,778,576 2,221,719 Expenditures Personnel Services (171,407) (156,130) (164,199) (169,580) Charges & Services (10,424) (11,340) (12,100) (12,200) Materials & Supplies (35,346) (38,822) (39,250) (36,516) Intergovernmental - - - (5,000) Capital - Outlay (40,871) (63,325) (1,460,964) (1,933,333) Debt Service - - - - Depreciation - (275,000) (275,000) (275,000) TOTAL EXPENDITURES (258,048) (544,617) (1,951,513) (2,431,629) CHANGE IN NET POSITION (5,694) (303,051) (319,348) (311,973) ENDING FUND BALANCE* 168,768 146,411 102,063 65,090 *Excludes Depreciation

Summary of Revenues FY 2018 FY 2018 FY 2019 FY 2020

Actuals Budget Budget Budget Operating Passenger Facility Charge 16,751 35,000 37,000 44,700 Airlines 36,888 53,400 55,000 28,900 General Aviation - - 42,000 - Fixed Base Operator - 41,000 - 26,189 Rent - - - 53,623 Car Rental 22,114 30,000 30,500 38,000 Corporate 10,942 54,400 55,600 - Concessions 13,672 150 150 144 Landing Fees 124,646 - - 27,800 TOTAL OPERATING 100,366 213,950 220,250 219,356 Intergovernmental Fuel 25,645 24,000 24,000 24,000 Federal Grants - - 1,314,867 1,560,000 State Of Colorado - - 73,048 300,000 TOTAL INTERGOVERNMENTAL 25,645 24,000 1,411,915 1,884,000 Miscellaneous Miscellaneous Sales & Fee 210 3,616 - - Fuel Tax 1,486 - - 16,300 TOTAL MISCELLANEOUS 1,696 3,616 - 16,300 TOTAL REVENUES 127,708 241,566 1,632,165 2,119,656


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Cost Categories

Expenditures FY 2018 FY 2018 FY 2019 FY 2020 2020/ 2019 Budget %

Change Actuals* Budget Budget Budget Personnel Services 171,407 156,130 164,199 169,580 3% Charges & Services 10,424 11,340 12,100 12,200 1% Materials & Supplies 35,346 38,822 39,250 36,516 -7% Intergovernmental - - - 5,000 0% Capital - Outlay 40,871 63,325 1,460,964 1,933,333 32% Debt Service - - - - 0% Depreciation - 275,000 275,000 275,000 0% Total 258,048 544,617 1,951,513 2,431,629 25%

FTE 2 2 2 2 0%




(3,000) Decrease Materials & Supplies Reduction in equipment repair and supplies

472,000 Increase Capital Outlay FY 2020 projects are Federal and State projects requiring minimal match from the City of $72k

5,000 Increase Intergovernmental For transparency and ease intergovernmental service costs were moved to intergovernmental cost category from materials and Expenses

(407,400) Increase Total Change

Cortez Community Network Fund: The Cortez Community Network (CCN) is a fiber optic network the City installed within Cortez. This division covers both the fiber network and connections to the outside world. Private businesses utilize this network to provide better connectivity for the citizens of Cortez. Local political sub-divisions utilize the network for internet connectivity. The CCN is a developing utility much like the Water Fund.

Summary of Revenues and Expenses

FY 2018 FY 2018 FY 2019 FY 2020 Actuals Budget Budget Budget

Beginning Fund Balance (48,751) 78,377 222,699 41,249 Revenues Operating Revenue 389,771 284,239 292,726 468,351 Intergovernmental - 300,000 125,000 - Miscellaneous Revenue 350,395 350,436 - - TOTAL REVENUE 740,167 934,675 417,726 468,351 TOTAL AVAILABLE 691,416 1,013,052 640,425 509,600


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Expenditures Personnel Services (92,533) (80,004) (84,085) (90,682) Charges & Services (129,340) (174,290) (255,490) (113,130) Materials & Supplies (60,966) (109,101) (109,101) (70,631) Intergovernmental (559) (6,500) (6,500) (94,016) Capital - Outlay (523,671) (501,000) (144,000) - Debt Service - - - - Depreciation (2,811) (90,000) (90,000) (90,000) TOTAL EXPENDITURES (809,880) (960,895) (689,176) (458,459) CHANGE IN NET POSITION (69,714) (26,220) (271,450) 9,892 ENDING FUND BALANCE (115,654) 142,157 41,249 141,141 *Excludes Deprecation


Actuals Budget Budget Budget Operating E-Rate Revenue 131,287 83,632 85,000 109,001 Fiber To The Business 52,689 48,603 50,000 161,042 Dark Fiber 58,842 44,278 50,000 23,081 Govnet 131,647 100,166 100,166 175,227 Fiber Service 8,680 7,560 7,560 - Connection Drops 5,210 - - - Fiber Sales - - - - Equipment Rental Fees 1,415 - - - Regional Fiber Share - - - - Connection Drops - - - - TOTAL OPERATING 389,771 284,239 292,726 468,351 Intergovernmental Trsfr From Street Imp Fun - - - - From Computer Fund - - - - Equipment Fund - 300,000 125,000 - General Fund - - - - TOTAL INTERGOVERNMENTAL - 300,000 125,000 - Miscellaneous Prior Yr Revenue Correct - - - - Miscellaneous Sales & Fee (41) 350,436 - - Investment - - - - Grant F15Mlg7509 350,436 - - - TOTAL MISCELLANEOUS 350,395 350,436 - - TOTAL REVENUES 740,167 934,675 417,726 468,351


55

Cost Categories


Budget % Change Actuals* Budget Budget Budget Personnel Services 92,533 80,004 84,085 90,682 8% Charges & Services 129,340 174,290 255,490 113,130 -56% Materials & Supplies 60,966 109,101 109,101 70,631 -35% Intergovernmental 559 6,500 6,500 94,016 1346% Capital Outlay 526,482 501,000 144,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - 90,000 90,000 90,000 0% Total 809,880 960,895 689,176 458,459 -33%

FTE 1.0 1.0 1.0 1.0 0%




(142,000) Decrease Charges & Services Reduction to match 2018 expenses


Reduction in materials and supplies based on reduction of needs as plan is to maintain network


(144,000) Decrease Capital Outlay Deferment of fiber network expansion (54,100) Increase Total Change

Dispatch Fund: The Cortez/Montezuma County Communications Center oversees communications related to public safety and emergency services for multiple user agencies. To provide quality and effective service, the center is equipped with communications technology, such as, Enhanced 911 using the Cassidian Vesta system with Orion Vela, Motorola Centracom Elite radio system, EForce CAD system, and Nice Inform recorder. The Communications Center also has ability to receive emergency 911 texts. Dispatchers are certified through the Association of Public-Safety Communications Officials International (APCO) as Public Safety Telecommunicator (PST) and Emergency Medical Dispatch (EMD).


Actuals Budget Budget Budget Beginning Fund Balance 164,692 164,692 75,522 65,768 Revenues Dispatch Fees 267,370 763,294 878,323 980,409 Miscellaneous Revenue 514,807 35,000 35,000 - TOTAL REVENUE 782,177 798,294 913,323 980,409

http://www.apcointl.org/


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TOTAL AVAILABLE 946,869 962,986 988,845 1,046,177 Expenditures Personnel Services (795,199) (804,236) (819,308) (879,245) Charges & Services (36,638) (32,664) (32,664) (32,864) Materials & Supplies (50,548) (45,564) (46,105) (52,300) Intergovernmental - - - - Capital Outlay (4,300) (5,000) (25,000) - Debt Service - - - - Depreciation - (15,300) (15,835) (16,000) TOTAL EXPENDITURES (886,685) (902,764) (938,912) (980,409) CHANGE IN NET POSITION (104,508) (104,470) (25,589) (0) ENDING FUND BALANCE* 60,184 75,522 65,768 81,768 *Excludes Depreciation


Actuals Budget Budget Budget OPERATING Montezuma County Sheriff - 263,364 271,647 316,931 City Of Cortez 261,404 283,620 323,136 367,634 Cortez Fire Department - 27,012 46,302 43,809 Mancos Fire Department - 6,886 7,517 8,932 Dolores Fire Department - 6,886 7,517 8,932 Lewis-Arriola Fire Dept - 6,886 7,517 8,932 Pleasant View Fire Dept - 6,886 7,517 8,932 Mancos Marshall - 20,259 52,465 47,473 Dolores County - 6,886 7,517 8,932 Mesa Verde National Park 5,966 6,753 7,517 8,932 Empire Electric - 6,886 - - Sw Memorial Hospital - 33,764 52,465 63,764 County-Add'L Dispatch - 87,206 87,206 87,206 TOTAL OPERATING 267,370 763,294 878,323 980,409 MISCELLANEOUS E-911 Fund - 35,000 35,000 - Investment - - - - Dispatch Usage 479,807 - - - E-911 Authority 35,000 - - - TOTAL INTERGOVERNMENTAL 514,807 35,000 35,000 - TOTAL REVENUES 782,177 798,294 913,323 980,409


57

Cost Categories


Change Actuals* Budget Budget Budget Personnel Services 795,199 804,236 819,308 879,245 7% Charges & Services 36,638 32,664 32,664 32,864 1% Materials & Supplies 50,548 45,564 46,105 52,300 13% Intergovernmental - - - - 0% Capital Outlay 4,300 5,000 25,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - 15,300 15,835 16,000 1% Total 886,685 902,764 938,912 980,409 4%

FTE 11.9 11.6 11.6 12.1 4%




6,200 Increase Materials & Supplies

Increased expenses based on needs for dispatch training and certification of new employees and increased office expenses

(25,000) Decrease Capital Outlay No capital improvement projects planned for FY 2020 41,200 Increase Total Change

Hydro Plant Fund: The Hydro Plant Fund accounts for the operations of the City’s hydroelectric power plant located on the raw water supply line. The water supply line carries water from the Dolores Canal to the Cortez Water Treatment Plant. The system consists of a single generating unit capable of production 240 kilowatts (kW). The construction of the hydroelectric power plant was approved in 2008 with construction completed in May 2010. The electrical power generated from the plant is sold directly to Empire Electric Association.


Actuals Budget Budget Budget Beginning Fund Balance 54,461 54,461 49,131 43,726 Revenues Energy Credits & RPS Credits 74,945 72,000 72,000 72,000 Miscellaneous Revenue - - - - Transfer from General Fund - - - - TOTAL REVENUE 74,945 72,000 72,000 72,000 TOTAL AVAILABLE 129,406 126,461 121,131 115,726


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Expenditures Personnel Services - - - - Charges & Services (4,923) (3,925) (4,000) (4,000) Materials & Supplies 2,555 (1,000) (1,000) (1,000) Intergovernmental - - - - Capital - Outlay (2,240) (3,000) (3,000) (3,000) Debt Service (69,405) (69,405) (69,405) (70,479) Depreciation - (65,802) (65,802) (65,802) TOTAL EXPENDITURES (74,013) (143,132) (143,207) (144,281) CHANGE IN NET POSITION 932 (71,132) (71,207) (72,281) ENDING FUND BALANCE* 55,393 49,131 43,726 37,247


Actuals Budget Budget Budget OPERATING Energy Credits 11,538 - - - Hydro-Production Credits 63,407 - - - Rps Credit - 72,000 72,000 72,000 TOTAL OPERATING 74,945 72,000 72,000 72,000 TOTAL REVENUES 74,945 72,000 72,000 72,000

Cost Categories


% Change Actuals* Budget Budget Budget Personnel Services $ - $ - $ - $ - 0% Charges & Services $ 4,923 $ 3,925 $ 4,000 $ 4,000 0% Materials & Supplies $ (2,555) $ 1,000 $ 1,000 $ 1,000 0% Intergovernmental $ - $ - $ - $ - 0% Capital - Outlay $ 2,240 $ 3,000 $ 3,000 $ 3,000 0% Debt Service $ 69,405 $ 69,405 $ 69,405 $ 70,479 2% Depreciation $ - $ 65,802 $ 65,802 $ 65,802 0% Total $ 74,013 $ 143,132 $ 143,207 $ 144,281 1%

FTE - - - - 0%

Changes compared to prior year adopted budget: None Noted

Recreation Center Fund: The Cortez Parks and Recreation Department operates the Cortez Recreation Center, which includes a gymnasium, cardiovascular and weightlifting equipment, climbing wall, racquetball courts, walking/jogging track, competition lap pool, leisure pool with a lazy river, water play features, enclosed water slide and a tot slide, meeting rooms, pool table, and child care.

https://www.cityofcortez.com/Facilities/Facility/Details/Cortez-Recreation-Center-30


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Actuals Budget Budget Budget Beginning Fund Balance 1,156,503 2,263,759 1,211,573 1,156,503 Revenues Sales Tax Revenues 1,535,189 1,439,983 1,511,982 1,577,638 Program Revenues 567,371 512,400 525,000 502,390 Intergovernmental 216,000 216,000 212,000 208,000 Miscellaneous Revenue (59,982) 6,500 6,500 - TOTAL REVENUE 2,258,578 2,174,883 2,255,482 2,288,028 TOTAL AVAILABLE 3,415,081 4,438,642 3,467,055 3,444,531 Expenditures Personnel Services (799,365) (817,058) (862,206) (965,767) Charges & Services (43,098) (49,696) (49,750) (42,808) Materials & Supplies (292,285) (360,846) (366,446) (338,662) Intergovernmental - - - (111,740) Capital - Outlay (1,355,383) (1,387,031) (422,100) (97,000) Debt Service (612,438) (612,438) (610,050) (610,050) Depreciation - (252,000) (252,000) (252,000) TOTAL EXPENDITURES (3,102,569) (3,479,069) (2,562,552) (2,418,027) CHANGE IN NET POSITION (843,991) (1,304,186) (307,070) (129,999) ENDING FUND BALANCE* 312,512 1,211,573 1,156,503 1,278,504 *Excludes Depreciation


Actuals Budget Budget Budget OPERATING Sales Tax 1,535,189 1,439,983 1,511,982 1,577,638 Facility Use Fee 14,280 12,000 14,000 11,049 Merchandise 6,330 7,000 7,000 6,830 General Admission 122,223 122,000 130,000 137,274 Passes/Admission 361,992 309,400 310,000 278,146 Misc Rec Activities - - - 5,176 Raquetball 284 - - - Healthways/Silver Sneaker 43,138 38,000 38,000 43,660 Recreation Programs 19,124 24,000 26,000 18,819 Child Care - - - 374 Concessions - - - 1,062 TOTAL OPERATING 2,102,560 1,952,383 2,036,982 2,080,028 INTERGOVERNMENTAL General Fund Loan Repayment 216,000 216,000 212,000 208,000 TOTAL INTERGOVERNMENTAL 216,000 216,000 212,000 208,000

MISCELLANEOUS


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Investment 1,703 5,000 5,000 - Miscellaneous Sales & Fee 4,508 1,500 1,500 - Overage/Shortage (40,850) - - - Crea - Vendor'S Fee (26,143) - - - Surplus Auction 200 - - - Sale Of Equipment 600 - - - TOTAL INTERGOVERNMENTAL (59,982) 6,500 6,500 - TOTAL REVENUES 2,258,578 2,174,883 2,255,482 2,288,028

Cost Categories


Change Actuals* Budget Budget Budget Personnel Services 799,365 817,058 862,206 965,767 12% Charges & Services 43,098 49,696 49,750 42,808 -14% Materials & Supplies 292,285 360,846 366,446 338,662 -8% Intergovernmental - - - 111,740 0% Grants - - - - 0% Capital - Outlay 1,355,383 1,387,031 422,100 97,000 -77% Debt Service 612,438 612,438 610,050 610,050 Depreciation - 252,000 252,000 252,000 0% Total 3,102,569 3,479,069 2,562,552 2,418,027 -87%

FTE 19.7 25.9 26.1 22.8 -13%



103,500 Increase Personnel Services Personnel services increase due to average merit increase of 3.5%, increases in minimum wage and an extra pay period occurring in the year

(7,700) Decrease Charges and Services

Reduction in services purchased based on FY 2020 needs


Reduction in gas prices due to new contract signed with Center Point Energy in 2019

(12,000) Decrease Materials & Supplies Trimmed electricity budget to reflect actual costs


Reduced travel and training to planned training events in 2020


Trimmed general operating supplies, advertising, telephone and equipment based on needs and reflect actual costs

10,000 Increase Materials & Supplies Planned purchase of fitness equipment


(318,000) Decrease Capital - Outlay Capital purchases reduced to FY 2020 needs (135,100) Increase Total Change


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Refuse Fund: The Refuse Division of Public Works is responsible for maintaining a safe, healthy, beautiful, and clean City by disposing of solid waste and providing for the reuse of recyclable materials within the community. The solid waste collection service is provided at a minimal cost to all residents and businesses within the City of Cortez. The goal of the Refuse Division is to provide a high quality service at a reasonable price. Refuse management works to keep the services strong and is always looking for ways to keep costs down and maintain service at least to current levels. As an enterprise fund, fees from residents and commercial users pay for the expenses incurred to operate the Refuse Division. The ECOrtez program consists of weekly curbside collection service and a drop-off station. The City’s program is a curbside service and collects glass, newspapers, aluminum beverage cans, tin cans, and #1 & #2 plastics. The recycling drop-off station at the City Service Center also serves the needs of residents of the community who live outside the City limits, providing a useful public service within the county. This service is provided as part of the Refuse Enterprise Fund, where the recycling program helps to cut the costs of landfill disposal, reduces the external costs of solid waste disposal, and to the extent that payback from aluminum and lighter landfill loads does not cover the expense of recycling.


Actuals Budget Budget Budget Beginning Fund Balance 741,071 741,071 795,281 736,335 Revenues Charges for Services 1,325,983 1,325,778 1,371,812 1,430,876 Miscellaneous Revenue 51,821 38,750 109,338 18,700 TOTAL REVENUE 1,377,804 1,364,528 1,481,150 1,449,576 TOTAL AVAILABLE 2,118,875 2,105,599 2,276,431 2,185,911 Expenditures Personnel Services (737,847) (686,557) (785,583) (822,392) Charges & Services (313,583) (291,500) (373,367) (373,773) Materials & Supplies (128,653) (172,617) (176,501) (47,301) Intergovernmental - (44,645) (44,645) (248,979) Capital - Outlay (174,840) (115,000) (160,000) (160,000) Debt Service - - - - Depreciation - (40,000) (40,000) (40,000) TOTAL EXPENDITURES (1,354,923) (1,350,319) (1,580,096) (1,692,446) CHANGE IN NET POSITION 22,882 14,209 (98,946) (242,870) ENDING FUND BALANCE* 763,953 795,280 736,335 533,465


62


Actuals Budget Budget Budget OPERATING Refuse Pick-up 445,522 1,315,248 1,361,282 1,429,346

Refuse Penalty 880,461 10,000 10,000 1,000

Container Locks - 80 80 80

Chipper/Mulcher - 450 450 450

TOTAL OPERATING 1,325,983 1,325,778 1,371,812 1,430,876

MISCELLANEOUS Interest on Investments 2,000 1,800 1,800 1,800

Dump Truck Fees 1,978 1,950 1,900 1,900

Recycled Refuse 47,843 35,000 35,000 15,000

CDPHE RREO Grant - - 70,638 -

TOTAL INTERGOVERNMENTAL 51,821 38,750 109,338 18,700

TOTAL REVENUES 1,377,804 1,364,528 1,481,150 1,449,576

Cost Categories

Expenditures FY 2018 FY 2018 FY 2019 FY 2020 2020/2019 Budget %

Change Actuals* Budget Budget Budget Personnel Services 737,847 686,557 785,583 822,392 5% Charges & Services 313,583 291,500 373,367 373,773 0% Materials & Supplies 128,653 172,617 176,501 47,301 -73% Intergovernmental - 44,645 44,645 248,979 458% Capital - Outlay 174,840 115,000 160,000 160,000 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - 40,000 40,000 40,000 0% Total 1,354,923 1,350,319 1,580,096 1,692,446 7%

FTE 11.0 10.0 11.0 11.5 5%



37,000 Increase Personnel Services Personnel services increase due to average merit increase of 3.5%, increases in minimum wage and an extra pay period occurring in the year


For transparency and ease intergovernmental shop fund costs were moved to be accounted for within the Intergovernmental department budget

204,000 Increase Intergovernmental Allocation of services provided from General Fund (e.g. City Manager and Payroll) and shop fund costs accounted for in intergovernmental cost category

(140,000) Decrease Capital Outlay Capital purchases reduced to FY 2020 needs (28,000) Decrease Total Change


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Administration


Change Actuals* Budget Budget Budget Personnel Services - - - - 0% Charges & Services - 500 500 500 0% Materials & Supplies 96,873 139,200 142,200 11,200 -92% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 96,873 139,700 142,700 11,700 -92%

FTE - - - - 0%

Collection


Change Actuals* Budget Budget Budget Personnel Services 607,101 561,511 584,813 620,744 6% Charges & Services 313,197 289,500 371,367 371,591 0% Materials & Supplies - 7,910 8,850 10,550 19% Intergovernmental - 14,345 14,345 - -100% Capital Outlay 174,840 115,000 160,000 20,000 -88% Grants - - - - 0% Debt Service - - - - 0% Depreciation - 40,000 40,000 40,000 0% Total 1,095,138 1,028,266 1,179,375 1,062,885 -10%

FTE 9.0 8.0 8.0 8.5 6%

Recycling


Change Actuals* Budget Budget Budget Personnel Services 130,746 125,046 200,770 201,648 0% Charges & Services 386 1,500 1,500 1,682 12% Materials & Supplies 5,226 7,910 8,850 10,550 19% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 136,358 134,456 211,120 213,880 1%

FTE 2.0 2.0 3.0 3.0 0%


64

Intergovernmental


Change Actuals* Budget Budget Budget Personnel Services - - - - 0% Charges & Services - - - - 0% Materials & Supplies - - - - 0% Intergovernmental - 30,300 30,300 248,979 722% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total - 30,300 30,300 248,979 722%

FTE - - - - 0%

Water Fund: The Public Works Department is responsible for maintaining a safe and healthy community by delivering high quality water to the citizens of Cortez for household uses, yard irrigation, and business uses. Cortez is blessed with the high quality Dolores River water out of McPhee Reservoir with which to begin the water treatment process. The water services provided by the City include: line installation, maintenance and replacement; water treatment; meter reading; and distribution. The City also treats and provides water to the Town of Towaoc and the Ute Mountain Ute Tribe. Fees from residents and commercial users pay for the expenses incurred to operate the Water Division. As an "enterprise" fund, no extra financial support is needed from the City's general fund. The City water treatment plant is a conventional plant utilizing coagulation, flocculation basins, sedimentation, triple-media and membrane filters, and chlorination. The City has an aggressive water line replacement program to replace lines that are starting to deteriorate or are not up to the City's standards. Materials of existing water lines include cast-iron, ductile iron, and C-900 PVC. The City keeps a record of repair locations as a method of tracking the lines that are in the most serious need of replacement. The water distribution system is planned and sized to provide for residential and business uses, as well as fire protection. The minimum size of line installed in residential areas is a six-inch (6") line. Commercial areas and feeder lines are usually eight (8”) and/or twelve inch (12”) diameter lines.


Actuals Budget Budget Budget Beginning Fund Balance 1,895,862 1,895,862 1,862,951 1,915,850 Revenues Charges for Services 2,983,761 3,024,425 3,164,911 3,314,307 Miscellaneous Revenue 316,620 281,875 267,500 280,500 TOTAL REVENUE 3,300,381 3,306,300 3,432,411 3,594,807 TOTAL AVAILABLE 5,196,243 5,202,162 5,295,362 5,510,657


65

Expenditures Personnel Services (837,103) (797,516) (871,313) (1,022,829) Charges & Services (132,890) (188,050) (202,954) (208,092) Materials & Supplies (404,493) (396,235) (419,045) (395,260) Intergovernmental (56,330) (250,605) (252,545) (381,713) Capital - Outlay (457,112) (790,345) (1,098,525) (556,000) Debt Service (465,724) (535,130) (535,130) (535,353) Depreciation (5,302) (881,332) (381,332) (377,195) TOTAL EXPENDITURES (2,358,954) (3,839,213) (3,760,844) (3,476,441) CHANGE IN NET POSITION 941,427 (532,913) (328,433) 118,365 ENDING FUND BALANCE* 2,842,591 2,244,281 1,915,850 2,411,410 *Excludes Depreciation


Actuals Budget Budget Budget OPERATING Sales Metered Water 2,794,281 2,883,725 3,027,911 3,179,307 Bulk Sales 81,453 68,700 65,000 65,000 Penalty 6,357 17,000 17,000 15,000 Connect/Disconnect Fees 48,643 20,000 20,000 20,000 Water Development Fees 53,027 35,000 35,000 35,000 TOTAL OPERATING 2,983,761 3,024,425 3,164,911 3,314,307 MISCELLANEOUS Investment 947 1,500 1,500 1,500 Towaoc - Treated Water 269,403 260,000 260,000 273,000 Miscellaneous Sales & Fee 33,070 6,000 6,000 6,000 Cortez Sanitation Dist. 13,200 - - - TOTAL INTERGOVERNMENTAL 316,620 267,500 267,500 280,500 TOTAL REVENUES 3,300,381 3,291,925 3,432,411 3,594,807

Cost Categories

Expenditures FY 2018 FY 2018 FY 2019 FY 2020 2020/2019 Budget %

Change Actuals* Budget Budget Budget Personnel Services 837,103 797,516 871,313 1,022,829 17% Charges & Services 132,890 188,050 202,954 208,092 3% Materials & Supplies 404,493 396,235 419,045 395,260 -6% Intergovernmental 56,330 250,605 252,545 381,713 51% Capital Outlay 457,112 790,345 1,098,525 556,000 -49% Grants - - - - 0% Debt Service 529,375 474,765 535,130 535,353 0% Depreciation 5,302 381,332 381,332 377,195 -1% Total 2,422,605 3,278,848 3,760,844 3,476,441 -8%

FTE 11.64 10.75 12.75 13.00 2%


66




Personnel services increase due to average merit increase of 3.5%, an extra pay period occurring in the year, and the request for a Water Treatment Plant Operator

20,500 Increase Charges & Services Credit card fees for processing customer payments was increased based on actual fee costs

(15,200) Decrease Charges & Services Insurance & Bonds for all divisions budgets were revised based on actuals

(55,000) Decrease Materials & Supplies For transparency and ease intergovernmental shop fund costs were moved to be accounted for within the Intergovernmental department budget

25,000 Increase Materials & Supplies Increase of chemicals and supplies as prices are expected to rise

130,000 Increase Intergovernmental Allocation of services provided from General Fund (e.g. City Manager and Payroll) and shop fund costs accounted for in intergovernmental cost category


Administration


Change Actuals* Budget Budget Budget Personnel Services 114 120 120 117 -3% Charges & Services - 94,000 94,000 81,000 -14% Materials & Supplies 103,965 61,700 67,300 20,675 -69% Intergovernmental 56,330 144,045 144,045 372,433 159% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service - - - - 0% Depreciation 5,302 40,000 40,000 35,000 -13% Total 165,711 339,865 345,465 509,225 47%

FTE - - - - 0%

Filtration & Treatment


Change Actuals* Budget Budget Budget Personnel Services 344,366 329,298 384,382 409,702 7% Charges & Services 58,932 82,500 90,204 94,042 4% Materials & Supplies - 71,900 72,650 71,550 -2% Intergovernmental - 106,560 108,500 5,580 -95% Capital Outlay - 10,000 10,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - 217,195 217,195 217,195 0% Total 403,298 817,453 882,931 798,068 -10%

FTE 4.00 4.00 4.50 4.75 6%


67

Transmission & Distribution


Change Actuals* Budget Budget Budget Personnel Services 488,321 468,098 486,811 608,690 25% Charges & Services 12,737 11,150 11,200 15,700 40% Materials & Supplies 60,043 71,900 72,650 71,550 -2% Intergovernmental - - - 2,700 0% Capital Outlay 8,797 8,000 10,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - 124,137 124,137 125,000 1% Total 569,898 683,285 704,798 823,640 17%

FTE 7.64 6.75 7.75 8.25 6%

Meter Repair & Maintenance


Change Actuals* Budget Budget Budget Personnel Services 4,302 - - 4,320 0% Charges & Services - 400 7,550 17,350 130% Materials & Supplies 4,925 6,990 7,850 9,850 25% Intergovernmental - - - 1,000 0% Capital Outlay - 2,000 2,000 - -100% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 9,227 9,390 17,400 32,520 87%

FTE - - - - 0%

Debt Retirement


Change Actuals* Budget Budget Budget Personnel Services - - - - 0% Charges & Services - - - - 0% Materials & Supplies - - - - 0% Intergovernmental - - - - 0% Capital Outlay - - - - 0% Grants - - - - 0% Debt Service 529,375 474,765 535,130 535,353 0% Depreciation - - - - 0% Total 529,375 474,765 535,130 535,353 0%

FTE - - - - 0%


68

Capital Projects


Change Actuals* Budget Budget Budget Personnel Services - - - - 0% Charges & Services - - - - 0% Materials & Supplies - - - - 0% Intergovernmental - - - - 0% Capital Outlay 448,315 770,345 1,076,525 556,000 -48% Grants - - - - 0% Debt Service - - - - 0% Depreciation - - - - 0% Total 448,315 770,345 1,076,525 556,000 -48%

FTE - - 0.50 - -100%

Special Revenue Funds:

Conservation Trust Fund: The Department of Local Affairs distributes State Conservation Trust Fund dollars quarterly, on a per capita basis, to over 470 eligible local governments: counties, cities, towns, and Title 32 special districts that provide park and recreation services in their service plans. Funding can be used for the acquisition, development, and maintenance of new conservation sites or for capital improvements or maintenance for recreational purposes on any public site. A public site is defined by the department as a publicly owned site, or a site in which a public entity/local government holds an interest in land or water [6] Summary of Revenues and Expenses: FY 2018 FY 2018 FY 2019 FY 2020

Actuals Budget Budget Budget Beginning Fund Balance 31,698 33,178 59,183 31,698 Revenues Intergovernmental 20,046 85,000 85,000 255,000 Miscellaneous Revenue - 15 15 - Transfer from General Fund - - - - TOTAL REVENUE 20,046 85,015 85,015 255,000 TOTAL AVAILABLE 51,744 118,193 144,198 286,698 Expenditures Personnel Services - - - - Charges & Services - - - - Materials & Supplies - - - - Intergovernmental - - - - Capital - Outlay (90,214) (59,010) (112,500) (255,000) Debt Service - - - - Depreciation - - - - TOTAL EXPENDITURES (90,214) (59,010) (112,500) (255,000)


69

CHANGE IN NET POSITION (70,168) 26,005 (27,485) - ENDING FUND BALANCE* (38,470) 59,183 31,698 31,698 *Excludes Depreciation



142,500 Increase Capital Outlay Capital investments reflect FY 2020 needs 142,500 Increase Total Change

Equipment Fund: The Equipment Fund Division purchases vehicles and equipment for the City. This covers all General Fund Departments. Departments such as Water and Refuse purchase the vehicles and equipment out of their own individual budgets. The Equipment Fund operates with a 1/8 cent sales tax to support the City’s General Fund equipment and vehicle needs.


Actuals Budget Budget Budget Beginning Fund Balance 1,301,774 1,301,774 1,229,568 1,108,428 Revenues Sales Tax 347,057 337,544 341,810 348,126 Miscellaneous 14,311 15,500 14,300 (6,266) Intergovernmental - - - - TOTAL REVENUE 361,368 353,044 356,110 341,860 TOTAL AVAILABLE 1,663,142 1,654,818 1,585,678 1,450,288 Expenditures Personnel Services - - - - Charges & Services (310) (250) (250) (324) Materials & Supplies - - - - Intergovernmental - - (125,000) (8,045) Capital - Outlay (403,618) (425,000) (352,000) (332,000) Debt Service - - - - Depreciation - - - - TOTAL EXPENDITURES (403,928) (425,250) (477,250) (340,369) CHANGE IN NET POSITION (42,560) (72,206) (121,140) 1,491 ENDING FUND BALANCE* 1,259,214 1,229,568 1,108,428 1,109,919 *Excluding Depreciation


70



(125,000) Decrease Intergovernmental In 2019 the Equipment Fund transferred $125,000 to the CCN fund, which is not planned to occur in 2020



Lodgers Tax Fund: The City of Cortez collects taxes levied on commercial lodging accommodations within the City. Lodger’s tax is to provide revenues used for advertising the community, improving city services, financing new facilities, attracting conferences, conventions and meetings of a commercial, cultural, educational, and social nature, to provide beautification of the city, and to pay for administrative and clerical services.


Actuals Budget Budget Budget Beginning Fund Balance 21,223 21,223 23,613 5,992 Revenues Lodgers Tax 231,050 215,011 225,000 219,612 Miscellaneous - - - - Intergovernmental - - - - TOTAL REVENUE 231,050 215,011 225,000 219,612 TOTAL AVAILABLE 252,273 236,234 248,613 225,604 Expenditures Personnel Services - - - - Charges & Services (177,059) (177,210) (207,210) (175,324) Materials & Supplies - - - - Intergovernmental - (35,411) (35,411) (43,921) Capital - Outlay - - - - Debt Service - - - - Depreciation - - - - TOTAL EXPENDITURES (177,059) (212,621) (242,621) (219,245) CHANGE IN NET POSITION 53,991 2,390 (17,621) 367 ENDING FUND BALANCE* 75,214 23,613 5,992 6,359 *Excluding Depreciation


71



(32,000) Decrease Charges & Services Reduction of 10% in Mesa Verde Country contributions



Street Improvement Fund: The Street Improvement Fund (SIF) is the annual program for maintenance of existing streets and the construction of new streets. The objective of the street capital fund is to prolong the life of the existing streets while providing safe, usable streets. As funds become available, the City also improves the street infrastructure by constructing thoroughfare streets and upgrading existing streets. In addition, due to citizen demand and as a result of continued growth, storm water drainage projects are also provided from this fund.


Actuals Budget Budget Budget Beginning Fund Balance 2,557,819 2,557,819 2,243,160 1,809,794 Revenues Sales Tax 1,397,271 1,310,617 1,376,148 1,435,906 Miscellaneous 16,624 21,000 21,000 (25,846) Intergovernmental 140,223 494,000 - - TOTAL REVENUE 1,554,117 1,825,617 1,397,148 1,410,060 TOTAL AVAILABLE 4,111,936 4,383,436 3,640,308 3,219,854 Expenditures Personnel Services (146,549) (178,476) (223,714) (200,493) Charges & Services (1,103) (1,800) (1,800) (1,800) Materials & Supplies - - - - Intergovernmental - - - (97,773) Capital - Outlay (2,370,652) (1,960,000) (1,605,000) (1,005,000) Debt Service - - - - Depreciation - - - - TOTAL EXPENDITURES (2,518,304) (2,140,276) (1,830,514) (1,305,066) CHANGE IN NET POSITION (964,187) (314,659) (433,366) 104,994 ENDING FUND BALANCE* 1,593,632 2,243,160 1,809,794 1,914,788 *Excludes Depreciation


72



(23,000) Decrease Personnel Services Reduction in Personnel Services costs due improved budget calculations of personnel costs (e.g. payroll and healthcare)


(600,000) Decrease Capital Outlay Reduction in capital investment to meet 2020 needs (525,000) Decrease Total Change

Capital Projects:

Capital Project 2020 Investments

Investment

Amount Grant Amount Net City Funding

Airport Fund $ 1,933,333 $ 1,860,000 $ 73,333 Taxiway Shoulder Project (Federal) $ 1,600,000 $ 1,560,000 $ 40,000 Sealcoat, Re-mark Runway, Taxiways $ 333,333 $ 300,000 $ 33,333 Xeriscape Terminal Front Landscape $ - $ - $ - Master Plan $ - $ - $ - Re-hab Parking Lot $ - $ - $ - Sweeper Shed $ - $ - $ - Conservation Trust Fund $ 255,000 $ 255,000 $ - Old Highschool Park $ 255,000 $ 255,000 $ - General Fund $ 300,000 $ 300,000 $ - Old Highschool Park $ 300,000 $ 300,000 $ - Recreation Center Fund $ 97,000 $ - $ 97,000 Front Desk Reconfiguration $ 77,000 $ - $ 77,000 Draper/Norcon-Replace Gym Curtain $ 20,000 $ - $ 20,000 Refuse Fund $ 160,000 $ - $ 160,000 Trash Truck $ 160,000 $ - $ 160,000 Street Improvement Fund $ 1,005,000 $ - $ 1,005,000 Capital Projects $ 25,000 $ - $ 25,000 Street Improvements $ 755,000 $ - $ 755,000 Pictometry High Definition Aerial Imagery $ 15,000 $ - $ 15,000 Concrete Project $ 180,000 $ - $ 180,000 Storm Drains $ 30,000 $ - $ 30,000 Water Fund $ 556,000 $ - $ 537,000 Water Distribution Improvements $ 120,000 $ - $ 120,000 Treatment Plant $ 180,000 $ - $ 180,000 Capital Projects $ 10,000 $ - $ 10,000 FEI Engineers $ 40,000 $ - $ 40,000 Conservation Project $ 25,000 $ - $ 6,000 Brand Central $ 8,000 $ - $ 8,000 Mesa Media Productions $ 1,000 $ - $ 1,000


73

Pioneer Printing $ 1,000 $ - $ 1,000 Conservation Mart $ 3,000 $ - $ 3,000 Incentive Program $ 6,000 $ - $ 6,000 Rate Study $ 40,000 $ - $ 40,000 Hydro Inspection/Valve Work $ 12,000 $ - $ 12,000 Capital - Trucks $ 85,000 $ - $ 85,000 Heavy Equipment Capital $ 25,000 $ - $ 25,000 Equipment Fund $ 332,000 $ - $ 332,000 Mowers $ 62,000 $ - $ 62,000 Patrol Vehicles $ 68,000 $ - $ 68,000 SUV Vehicles $ 36,000 $ - $ 36,000 Pickups $ 36,000 $ - $ 36,000 Dump Truck, Flat Bed $ 130,000 $ - $ 130,000 Technology Fund $ 52,145 $ - $ 52,145 E-Force (Police Software Lease Purchase Agreement) $ 52,145 $ - $ 52,145 Total $ 4,690,478 $ 2,415,000 $ 2,256,478


74

Five Year Capital Project Plan

2020 2021 2022 2023 2024

Investment

Amount Grant

Amount Net City Funding

Investment Amount

Grant Amount

Net City Funding

Investment Amount

Grant Amount

Net City Funding

Investment Amount

Grant Amount

Net City Funding

Investment Amount

Grant Amount

Net City Funding

Airport Fund 1,933,333

1,860,000

73,333

4,000

-

4,000

400,000

380,000

20,000

51,000

-

51,000

166,666

158,333

8,333

Taxiway Shoulder Project (Federal) 1,600,000

1,560,000

40,000

-

-

-

-

-

-

-

-

-

-

-

-

Sealcoat, Re-mark Runway, Taxiways 333,333

300,000

33,333

-

-

-

-

-

-

-

-

-

-

-

-

Xeriscape Terminal Front Landscape -

-

-

4,000

-

4,000

-

-

-

-

-

-

-

-

-

Master Plan -

-

-

-

-

-

400,000

380,000

20,000

-

-

-

-

-

-

Re-hab Parking Lot -

-

-

-

-

-

-

-

-

51,000

-

51,000

-

-

-

Sweeper Shed -

-

-

-

-

-

-

-

-

-

-

-

166,666

158,333

8,333

Conservation Trust Fund 255,000

255,000

-

-

-

-

-

-

-

-

-

-

-

-

-

Old Highschool Park 255,000

255,000

-

-

-

-

-

-

-

-

-

-

-

-

-

General Fund 300,000

300,000

-

483,000

-

483,000

156,000

-

156,000

420,000

-

420,000

8,400,000

2,300,000

6,100,000

Old Highschool Park 300,000

300,000

-

-

-

-

-

-

-

-

-

-

-

-

-

Driving Range Expansion/Learning Center Development

-

-

-

50,000

-

50,000

-

-

-

-

-

-

-

-

-

Outdoor Pool - Heat Exchanger Replacement

-

-

-

50,000

-

50,000

-

-

-

-

-

-

-

-

-

OnBase -

-

-

130,000

-

130,000

-

-

-

-

-

-

-

-

-

Bobcat Clam Shell Bucket -

-

-

5,000

-

5,000

-

-

-

-

-

-

-

-

-

Greens Aerator -

-

-

25,000

-

25,000

-

-

-

-

-

-

-

-

-

Centennial Park Tennis Courts Fence Screening

-

-

-

10,000

-

10,000

-

-

-

-

-

-

-

-

-

Market Street Pocket Park Community Garden Fence & Irrigation

-

-

-

8,000

-

8,000

-

-

-

-

-

-

-

-

-

Parque de Vida Ball Field Dugouts -

-

-

30,000

-

30,000

-

-

-

-

-

-

-

-

-

Dog Park Improvements (Pergola Shelter, Fountain, & Obstacle Course)

-

-

-

-

-

-

10,000

-

10,000

-

-

-

-

-

-

South Softball Complex Lighting & Pole Replacement

-

-

-

-

-

-

50,000

-

50,000

-

-

-

-

-

-

Parque de Vida Tennis Courts Resurfacing -

-

-

-

-

-

-

-

-

50,000

-

50,000

-

-

-

Rotary Park Restrooms -

-

-

-

-

-

-

-

-

150,000

-

150,000

-

-

-

City Park Band Shell -

-

-

-

-

-

-

-

-

75,000

-

75,000

-

-

-

Geer Natural Area Development (Elevated Trail, Shelters, & Restroom)

-

-

-

-

-

-

-

-

-

-

-

-

500,000

300,000

200,000


75

CIRSA ADA Compliance Plan -

-

-

30,000

-

30,000

25,000

-

25,000

25,000

-

25,000

-

-

-

Welcome Center Parking Lot - CIRSA ADA Compliance

-

-

-

-

-

-

-

-

-

-

-

-

300,000

-

300,000

Library HVAC & Roof -

-

-

145,000

-

145,000

-

-

-

-

-

-

-

-

-

Library Expansion -

-

-

-

-

-

-

-

-

-

-

-

7,500,000

2,000,000

5,500,000

Replace Roof Membrane -

-

-

-

-

-

-

-

-

120,000

-

120,000

-

-

-

Replace Egrees Road -

-

-

-

-

-

-

-

-

-

-

-

100,000

-

100,000

Welcome Center Stucco Repair/Replacement

-

-

-

-

-

-

40,000

-

40,000

-

-

-

-

-

-

Move Flag Pole -

-

-

-

-

-

6,000

-

6,000

-

-

-

-

-

-

City Hall - Heat Tape West Entrance -

-

-

-

-

-

25,000

-

25,000

-

-

-

-

-

-

Recreation Center Fund 97,000

-

97,000

-

-

-

-

-

-

-

-

-

-

-

-

Front Desk Reconfiguration 77,000

-

77,000

-

-

-

-

-

-

-

-

-

-

-

-

Draper/Norcon-Replace Gym Curtain 20,000

-

20,000

-

-

-

-

-

-

-

-

-

-

-

-

Refuse Fund 160,000

-

160,000

-

-

-

-

-

-

-

-

-

-

-

-

Trash Truck 160,000

-

160,000

-

-

-

-

-

-

-

-

-

-

-

-

Street Improvement Fund 1,005,000

-

1,005,000

-

-

-

-

-

-

-

-

-

-

-

-

South Park Development -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Capital Projects 25,000

-

25,000

-

-

-

-

-

-

-

-

-

-

-

-

Street Improvements 755,000

-

755,000

-

-

-

-

-

-

-

-

-

-

-

-

Pictometry High Definition Aerial Imagery 15,000

-

15,000

-

-

-

-

-

-

-

-

-

-

-

-

Concrete Project 180,000

-

180,000

-

-

-

-

-

-

-

-

-

-

-

-

Storm Drains 30,000

-

30,000

-

-

-

-

-

-

-

-

-

-

-

-

Water Fund 556,000

-

556,000

-

-

-

-

-

-

-

-

-

-

-

-

Water Distribution Improvements 120,000

-

120,000

-

-

-

-

-

-

-

-

-

-

-

-

Treatment Plant 180,000

-

180,000

-

-

-

-

-

-

-

-

-

-

-

-

Capital Projects 10,000

-

10,000

-

-

-

-

-

-

-

-

-

-

-

-

FEI Engineers 40,000

-

40,000

-

-

-

-

-

-

-

-

-

-

-

-

Conservation Project 25,000

-

25,000

-

-

-

-

-

-

-

-

-

-

-

-

Brand Central 8,000

-

8,000

-

-

-

-

-

-

-

-

-

-

-

-

Mesa Media Productions 1,000

-

1,000

-

-

-

-

-

-

-

-

-

-

-

-


76

Pioneer Printing 1,000

-

1,000

-

-

-

-

-

-

-

-

-

-

-

-

Conservation Mart 3,000

-

3,000

-

-

-

-

-

-

-

-

-

-

-

-

Incentive Program 6,000

-

6,000

-

-

-

-

-

-

-

-

-

-

-

-

Rate Study 40,000

-

40,000

-

-

-

-

-

-

-

-

-

-

-

-

Hydro Inspection/Valve Work 12,000

-

12,000

-

-

-

-

-

-

-

-

-

-

-

-

Capital - Trucks 85,000

-

85,000

-

-

-

-

-

-

-

-

-

-

-

-

Heavy Equipment Capital 25,000

-

25,000

-

-

-

-

-

-

-

-

-

-

-

-

Equipment Fund 332,000

-

332,000

356,000

-

356,000

338,000

-

338,000

584,000

-

584,000

453,000

-

453,000

Mowers 62,000

-

62,000

70,000

-

70,000

70,000

-

70,000

75,000

-

75,000

75,000

-

75,000

Patrol Vehicles 68,000

-

68,000

108,000

-

108,000

115,000

-

115,000

80,000

-

80,000

120,000

-

120,000

SUV Vehicles 36,000

-

36,000

-

-

-

38,000

-

38,000

-

-

-

40,000

-

40,000

Electric -

-

-

-

-

-

35,000

-

35,000

35,000

-

35,000

35,000

-

35,000

Pickups 36,000

-

36,000

-

-

-

80,000

-

80,000

44,000

-

44,000

48,000

-

48,000

Dump Truck, Flat Bed 130,000

-

130,000

70,000

-

70,000

-

-

-

-

-

-

135,000

-

135,000

Loaders, Backhoes, Tractors, etc -

-

-

108,000

-

108,000

-

-

-

100,000

-

100,000

-

-

-

Street Sweeper -

-

-

-

-

-

-

-

-

250,000

-

250,000

-

-

-

Technology Fund 52,145

-

52,145

-

-

-

-

-

-

-

-

-

-

-

-

E-Force (Police Software Lease Purchase Agreement)

52,145

-

52,145

-

-

-

-

-

-

-

-

-

-

-

-

Shop Fund -

-

-

116,000

-

116,000

170,000

-

170,000

-

-

-

-

-

-

Service Center Security Building -

-

-

22,000

-

22,000

-

-

-

-

-

-

-

-

-

Service Center Security Yard -

-

-

30,000

-

30,000

-

-

-

-

-

-

-

-

-

Service Center HVAC Replacement -

-

-

-

-

-

90,000

-

90,000

-

-

-

-

-

-

Service Center Roof Replacement -

-

-

-

-

-

80,000

-

80,000

-

-

-

-

-

-

Service Center Solar Lease/Purchase -

-

-

44,000

-

44,000

-

-

-

-

-

-

-

-

-

Serice Center ADA Compliance Plan -

-

-

10,000

-

10,000

-

-

-

-

-

-

-

-

-

Service Center Storeage Zircon/Shed -

-

-

10,000

-

10,000

-

-

-

-

-

-

-

-

-

Total 4,690,478

2,415,000

2,275,478

959,000

-

959,000

1,064,000

380,000

684,000

1,055,000

-

1,055,000

9,019,666

2,458,333

6,561,333


77

Appendix:

Bibliography [1] United States Census Bureau, "Quick Facts: Cortez City, Colorado; United Stats - United States Census

Bureau," [Online]. Available: https://www.census.gov/quickfacts/fact/table/cortezcitycolorado,US/PST045218.

[2] United Census Bureau, "American Fact Finder," United Census Bureau, 2010. [Online]. Available: https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF. [Accessed 21 august 2019].

[3] City-Data.com, "City-Data.com," City-Data.com, [Online]. Available: http://www.city-data.com/city/Cortez-Colorado.html. [Accessed 20 August 2019].

[4] Zillow, "Cortez Home Prices & values," Zillow.com, [Online]. Available: https://www.zillow.com/cortez-co/home-values/. [Accessed 22 August 2019].

[5] City of Cortez, "City of Cortez - Community Profile," City of Cortez, [Online]. Available: http://www.cityofcortez.com/DocumentCenter/View/828/Cortez-Community-Profile?bidId=. [Accessed 22 August 2019].

[6] D. -. S. o. Colorado, "Conservation Trust Fund (CTF)," State of Colorado, [Online]. Available: https://www.colorado.gov/pacific/dola/conservation-trust-fund-ctf. [Accessed 10 10 2019].

[7] D. Ramsey, "Dave Ramsey > Quotes > Quotable Quotes," Goodreads, Inc, 2019. [Online]. Available: https://www.goodreads.com/quotes/349829-a-budget-is-telling-your-money-where-to-go-instead. [Accessed 14 October 2019].

budget adopted 2020 - city of cortez

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