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AGENDA
CITY COUNCIL WORK SESSION
June 27, 2022
4:00 PM, City Council Chambers
427 Rio Grande Place, Aspen
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I.WORK SESSION
I.A.2022 Financial Update and 2023 Budget Assumptions
I.B.Compass Strategic Planning Framework
1
2022 Financial Update &
2023 Budget
Assumptions
June 27, 2022
2
2022 Year -to-Date (April)
Taxable Sales 2021 2022 Change
Accommodations $67,577,588 $149,566,745 121%
Restaurants $38,495,533 $77,174,927 100%
Sporting Goods $26,806,376 $34,397,159 28%
Clothing $30,727,317 $50,562,783 65%
Food & Drug $20,039,049 $23,156,835 16%
Liquor $4,531,511 $4,699,117 4%
Marijuana $4,103,966 $3,958,636 -4%
Miscellaneous $26,805,071 $28,623,440 7%
Luxury Goods $10,540,859 $17,382,548 65%
Utilities $21,052,452 $20,510,313 -3%
Construction $23,865,472 $24,391,249 2%
Automobile $9,396,060 $11,509,370 22%
Banking / Financial $1,262,337 $1,585,383 26%
Health & Beauty $2,187,879 $1,233,383 -44%
Total Taxable Sales $287,391,471 $448,751,889 56%
Significant Growth in
Collections Relative to Same
Timeframe One Year Ago…
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2022 Year -to-Date
…But There Are Strong Forces Pushing Back
Fuel Prices
•Personal Vehicles
•Airfare
Staffing Shortages
•Hotels
•Restaurants
•Airlines
4
2022 Year -to-Date
Unemployment Rate: 3.2%
(343 Individuals)
5
2022 Year -to-Date
Regular Unleaded in Colorado One Year Ago: $3.080
6
2022 Year -to-Date
“Losing Ground” Relative to 2021, But This is
Somewhat Expected
Recipients of 2.4% Tax 2022
Parks & Open Space 1.50%
Public Schools 0.30%
Kids First / Affordable Housing 0.45%
Transportation 0.15%
Year-to-Date
Taxable Sales January February March April
2021 $62,330,284 $133,164,639 $238,616,719 $287,391,471
2022 $117,742,141 $243,780,391 $393,875,585 $448,751,889
% Increase 89%83%65%56%
Tapering Annual Growth Expectations to 12%
by December
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2022 Year -to-Date Collections 40%
Over 2021 YTD
$1,113,854 $1,215,195 $1,221,438 $1,334,804
$1,043,746
$835,268
$1,908,977
2016 2017 2018 2019 2020 2021 2022
Tourism Portion of 2.0%
Lodging Tax
(Thru April)
Jan –Apr Avg.2019 2020 2021 2022
Occupancy 68%47%46%67%
Avg. Daily Rate $540 $502 $496 $758
RevPAR $398 $297 $236 $540
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2022 Year -to-Date
$2,023,482
$3,675,974 $3,808,068 $3,566,313
$2,808,988
$6,930,223
$9,522,148
2016 2017 2018 2019 2020 2021 2022
Real Estate Transfer Taxes Pushing to New Highs…
•550 Aspen Alps Rd –resold in 4 months
•Gorsuch Haus –resold in couple of years
•Inventory Down 66% -Q1 2022 (61) vs 2021 (182)
1.0% Housing RETT
(Thru May)
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2022 Year -to-Date
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
HRETT WRETT
-41%
-37%
…But How Long Can
It Hang On For?
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Base Budget Assumptions
Price Escalation Pushing Up Cost of City Services
•Aspen Mitigates for Some Areas As a Community
Food
14%
Energy
8%
Commodities less
food and energy
commodities
21%
Shelter
33%
Medical care
services
7%
Transportation services (mass and
personal transit)
6%
Recreation services
3%
Education and
communication services
5%
Other personal services
1%
Water and sewer and
trash collection services
1%
Household operations
1%
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Base Budget Assumptions
10.1%
34.6%
8.5%
5.5%4.0%
7.9%
4.9%
1.7%
6.5%4.4%5.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Price Inflation -May 2021 to May 2022
Avg. Annual
Inflation Increase
Last 3 Years: 4.2%
Avg. Base Budget
Increase Last 3
Years: < 2.0%
Proposed 2023
Base Budget
Increase: 4.0%
Headline
Inflation:
8.6%
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Base Budget Assumptions
The City of Aspen’s Total
The TCP provides a framework
to guide decision-making on
compensation and benefits
programs for employees.
The City is committed to
providing a TCP that attracts,
retains,&rewards a talented &
motivated workforce that
embraces the City’s Mission
statement & Values.
The City of Aspen’s Total
Total Compensation Philosophy
(TCP)
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Base Budget Assumptions
•Market Leader Locally,
Regionally and Nationally
(When Appropriate)
•Public and Private Labor
Markets Considered
•Routine Evaluation of Pay
Structure
Total Compensation Philosophy
14
Base Budget AssumptionsTotal Compensation:
•Health Insurance Employee Premiums –No Increase
•Merit Increases -Up to 4%
•Pay Ranges -Under Review
•North Star Incentive –Consistent with 2022 at $1,000
•Employer Sponsored Housing -Council Work Session on 8/2
•Rewards & Recognition Enhancements
Base Budget Assumptions
15
MEMORANDUM
TO: Mayor and City Council
FROM: Patrick Quick, Director-Strategy & Innovation Office
THROUGH: Alissa Farrell, Administrative Services Director
MEMO DATE: June 20, 2022
MEETING DATE: June 27, 2022
RE: North Star Program Overview (Strategic/Operations Planning)
REQUEST OF COUNCIL:
No formal Council action is requested at this time. This memo is to provide an introduction
and overview of the City’s new North Star Program, an internal strategic/operations
planning program, led and developed by the Strategy & Innovation Office (SIO) with City
Manager’s direction and vision.
SUMMARY AND BACKGROUND:
The Strategy & Innovation Office takes a big-picture, internal consulting approach to
assure our primary systems, processes, and major projects are moving in the same
direction to achieve our goals. To strengthen these efforts, SIO has developed t he North
Star Program, the City’s new strategic/operations planning framework. The objective is to
standardize our approach to organizational planning, and to improve the alignment of
departmental efforts under the City’s strategic direction (City Mission Statement, City
Values, Strategic Focus Areas, and Council Goals), while providing high-level direction
from City Council and/or senior leadership. The North Star Program will also incorporate
future City strategic planning, outcome data development for decision-making, and
organizational process improvement initiatives. In conjunction with this program, the
Strategy & Innovation Office will develop public-facing webpages to showcase the City’s
strategic direction, goals, measured outcomes, and cross -functional activities and
projects in order to better communicate our organizational efforts and celebrate our
accomplishments with the community.
At the request of department directors and staff, the North Star Program replaces the
former Goals & Outcomes Measures (GOM) Program towards a holistic and best-
practiced approach to organizational planning. An analysis of the Goal & Outcome
Measures program was conducted by a City leadership committee in the summer of 2021,
which gathered feedback from stakeholders throughout the 2021 GOM process and
researched best practices in strategy management. When organizations implement best
practices in strategy management, they are more likely to achieve community outcomes
with more efficiency and effectiveness.
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To kick off the North Star Program, the Strat egy & Innovation Office partnered directly
with departments to develop operations plans, which are branded as Compass Plans,
playing off the City’s forward-looking navigational theme. SIO will continue guide
departments in quarterly sessions to utilize their Compass Plans as a roadmap for multi-
year planning, as a priority project pipeline, and as a communication tool to tell their story
as it relates to their annual budgets and resource requirements. Department leadership
has been grouped into North Star peer c ohorts to facilitate organizational collaboration,
understanding, and accountability, while providing support for one another in the
refinement of the Compass Plans.
In August, departments will present their 2023 budgets in conjunction with their Com pass
Plan priorities for 202 3 to City Council. In addition, departments can use their Compass
Plan to tell their story more effectively by highlighting their strategic goals, project activity,
data, resource requirements, and budget information in one pres entation.
DISCUSSION:
Highlights of the new North Star Program include:
• In partnership with the Strategy & Innovation Office and City Manager,
development of a Compass Plan for each department with continuous evaluation
of progress and opportunities for adaptation of plans based on ever -changing
community needs
• Development of peer c ohorts comprised of department directors and their senior
staff to collaborate with one another to make their Compass Plans better over time
• Compass Plans with a focus on continuous improvement and outcomes
• Incorporation of City Values & essential behaviors, City mission, and Strategic
Focus Areas into department goal setting within Compass Plans
• Introduction of multi-year strategic planning of goals and projects within the
Compass
• Creating space for risk-taking, innovation, and new ideas in Quarterly Strategy
Reviews
• Developed to achieve cross-functional understanding, accountability, and
collaboration
• Developed to follow best practices in strategy management and align the
departments toward accomplishing the overarching strategic direction of the
organization
• A North Star employee incentive, rewarding milestone progress and overall
organizational and/or community impact
• Inclusion of future strategic planning efforts
• Inclusion of future outcome measurement data for decision-making
The main elements of a Compass Plan are its Drivers, Goals, Projects, and Milestones.
Additionally, Compass Plans include contextual information for each goal/project .
• Drivers are the main influence for the work notated in the Compass and are the
starting point in strategy development . Drivers include examples such as
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City/department mission, City Values, Strategic Focus Areas, Council Goals,
Aspen Community Survey, staff surveys, internal business process data, and
others.
• Goals are the high-level outcomes a department wishes to achieve and are a
broad statement of where a department would like to be in the future.
• Projects are specific activities to be executed in order to accomplish a goal.
• Milestones are primary checkpoints required to complete a project and they are
tracked to celebrate wins and measure progress.
FINANCIAL IMPACTS:
No funds are being requested.
ENVIRONMENTAL IMPACTS:
None.
ALTERNATIVES:
No alternatives are proposed.
RECOMMENDATIONS:
No recommendations at this time.
CITY MANAGER COMMENTS:
None.
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North Star Program Overview
Strategy & Innovation Office (SIO)
Patrick Quick-Director June 27, 20221119
Agenda
2
•Strategy & Innovation Office (SIO) Mission Statement
•Why do Organizational Strategic/Operations Planning?
•What is the North Star Program?
•What is a Compass Plan?
•What are Drivers?
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SIO Mission
3
•To provide collaborative consulting services, champion a
culture of continuous improvement and high performance,
promote strategic alignment, foster best practices in
organizational excellence, and encourage employees to
embrace change and innovation.
21
Why do Strategic/Operations Planning?
4
•To be strategic/proactive
•Collaborate across departments
•Measure/accomplish our goals and community outcomes
•Establish an org. planning system of record
•Enable multi-year planning
•Tell City story effectively based on results/impact
•Plan/organize/execute our strategy
•Achieve alignment
•Follow best practices
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What is the North Star Program?
5
•City's new strategic/operations planning program
•Navigational theme
•Started with operations planning framework (Compass Plan)
•Quarterly Strategy Reviews
•Peer cohorts
•Future strategic planning efforts
•Future outcome measurement data
•Future dashboard website
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6
•Component of North Star Program
•Operations Plan (Drivers, Goals, Projects, & Milestones)
•List of Priorities
•Project Pipeline
•Multi-Year Plan
•Communication Tool
What is a Compass Plan?
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What are Drivers?
7
Strategic Focus AreasCity Values
City Mission Council Goals
To engage with positive civil dialogue, provide
the highest quality innovative and efficient
municipal services, steward the natural
environment, and support a healthy and
sustainable community for the benefit of
future generations with respect for the work of
our predecessors.
Affordable Housing
Carbon Reduction/Net Zero
Increase Childcare Capacity
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8
North Star Program Summary
Questions?
Department Compass Plans
-Drivers
-Goals
-Projects
-Milestones
Quarterly Strategy Reviews
-Peer Cohorts
-Gauge Progress
-Celebrate Milestone Wins
Future Strategic Planning Efforts
-Community Engagement
-Council Sessions
26
RESOLUTION #76
(Series of 2021)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,
ADOPTING THE 2021-2022 CITY COUNCIL GOALS
WHEREAS, the City Council has a long history of establishing goals to direct priorities for the
City; and
WHEREAS, City Council endeavors to be strategic in its deliberations regarding these goals
to ensure that current opportunities, needs and challenges facing the community are fully
considered; and
WHEREAS, the goals of City Council guide the actions of City Council and the City
Administration in budgeting and programming initiatives; and
WHEREAS, City Council desires to formally adopt year 2021-2022 goals to guide the City in
shaping its future; and
WHEREAS, City Council wishes to articulate the most critical goals for the upcoming work of
the City, while continuing the essential services; and
WHEREAS, Aspen has been a leader for decades in acknowledging the essential nature of
affordable housing to the long-term sustainability of the community through the successful
implementation of policy, and facilitating the construction of affordable housing units; and,
WHEREAS, in spite of this success, Aspen, like many peer communities, faces new challenges
related to housing affordability that have been exacerbated by real estate trends emerging from
the COVID-19 pandemic. These challenges have been documented in the recently released
Mountain Migration Report, published by Northwest Colorado Council of Governments in July of
2021; and,
WHEREAS, the importance of the affordable housing issue demands meaningful actions that
best leverage the resources of the City of Aspen in meeting this critical community need; and
WHEREAS, Aspen has recognized the needs for high quality early childhood education as an
important foundation for young children, as a critical support for working families and the Aspen
economy, and has actively supported and funded early childhood education since 1989; and
WHEREAS, City Council has identified an increasing need for childcare spaces that requires
leadership and strong community-wide partnerships to provide physical space and teachers; and
WHEREAS there is a global climate crisis that requires coordinated local efforts and
meaningful action by government leaders worldwide, and
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WHEREAS the global climate crisis has direct impacts to regional ecology, community
resiliency, and the City of Aspen’s ability to deliver services, and
WHEREAS the scientific community emphasizes that the next eight years are the most critical
to reducing greenhouse gas (GHG) emissions to levels that will hold global warming to the critical
1.5° Celsius threshold, and
WHEREAS Aspen has a responsibility to reduce the local carbon footprint of the community,
and
WHEREAS waste generation contributes to Aspen’s greenhouse gas footprint and must be
reduced to achieve global carbon reductions, and
WHEREAS the City of Aspen has been and is committed to remaining a global climate action
leader, and
ADD WHEREAS the next eight years are critical for greenhouse gas reductions, the City will
utilize the United Nation’s Race to Zero Program as well as other climate partnerships including
Colorado Communities for Climate Action (CC4CA), The Mountain Pact and others to support our
efforts;
WHEREAS, City Council has identified Critical Goals, where a critical goal is defined as one
where there community is at significant risk of failure without adjusting present course, need to
chart a critical path.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,
Section 1. That the City Council of the City of Aspen hereby adopts the following City of Aspen
2020-2021 Council Goals, and does hereby authorize the City Manager to pursue said goals.
Critical Goals
1. Increase number of Affordable Housing Units: In order to deliver an affordable housing
system that is high quality, sustainable, and results in a lived-in community, Council will continue
to evaluate, identify opportunities, plan, partner, facilitate, and leverage existing and new
resources to invest in the development and maintenance of affordable housing.
This will be accomplished through:
a. Convening a City Housing Retreat;
b. Creating an affordable housing strategic plan;
c. Completing Council directed affordable housing development projects;
d. Continuing to seek additional affordable housing development opportunities;
e. Leveraging and amending regulations and policies in support of affordable housing; and
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f. Supporting continuous improvement with the APCHA program, including ensuring
adequate resources.
2. Increase the number of available childcare spaces
This will be accomplished through:
a. Plan, design to repurpose or build new buildings to add physical capacity to increase
available childcare space.
b. Increase the recruitment and retention of qualified early childhood teachers
c. Generate funding to support the development of new childcare spaces
3. Reduce Aspen’s Greenhouse Gas emissions: Take meaningful action and provide leadership
in reducing the Aspen community’s contribution to greenhouse gas emissions by the amount
which is scientifically proven to limit global temperature change.
This will be accomplished through:
a. Maximizing efficiency and minimizing carbon emissions in all of Aspen’s emissions
inventory sectors including: Waste Reduction and Diversion, Transportation, and the Built
Environment
b. Leading climate policy and legislative efforts at local, regional, national, and global scales
INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the
_________ day of ____________.
Torre, Mayor
I, Nicole Henning, duly appointed and acting City Clerk do certify that the foregoing is
a true and accurate copy of that resolution adopted by the City Council of the City of Aspen,
Colorado, at a meeting held, August 10, 2021.
Nicole Henning, City Clerk
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MISSION STATEMENT
To engage with positive civil dialogue, provide the highest quality innovative and efficient
municipal services, steward the natural environment, and support a healthy and sustainable
community for the benefit of future generations with respect for the work of our
predecessors.
ORGANIZATIONAL VALUES
Service: We serve with a spirit of excellence, humility, integrity, respect
Essential Behaviors:
1. Demonstrate excellence in our areas of expertise and a willingness to pitch in at all levels.
2. Build trust by listening, treating people with respect, acknowledging opportunities for improvement,
and following through with our commitments.
3. Respond to individual and community needs with empathy and inclusion.
4. Actively and willingly seek input and feedback from stakeholders.
Partnership: Our impact is greater together
Essential Behaviors:
1. Create strong, supportive internal and external relationships to attain a common goal.
2. Build a culture of teamwork through collaboration and commitment.
3. Forge a positive environment for success by valuing our differences.
4. Honor a collective community vision through unity and cooperation.
Stewardship: Investing in a thriving future for all by balancing social, environmental, and
financial responsibilities
Essential Behaviors:
1. Commit to a sustainable and resilient future.
2. Evaluate the costs and benefits of our work over time.
3. Balance actions in our natural and built environments.
4. Provide equitable administration of services and pursue inclusivity and transparency in decision-
making.
5. Preserve and promote Aspen’s unique character and spirit.
Innovation: Pursuing creative outcomes, grounded in Aspen’s distinctive challenges and
opportunities
Essential Behaviors:
1. Encourage thoughtful risk taking without fear of failure.
2. Continually grow and improve while fostering Aspen's unique culture.
3. Seek first to understand, then challenge the status quo. 4. Proactively pursue new ideas that are innovative.
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