HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/06/2001 - RESOLUTION 2001-154 ADOPTING A REVENUE ALLOCATION AGENDA ITEM SUMMARY ITEM NUMBER: 35
FORT COLLINS CITY COUNCIL DATE: November 6, 2001
STAFF: Doug Smith
SUBJECT:
Resolution 2001-154 Adopting a Revenue Allocation Formula to Define the City of Fort Collins'
Contribution to the Poudre Fire Authority Budget for the Year 2002 for Operations and
Maintenance.
RECOMMENDATION:
Staff recommends adoption of the Resolution.
FINANCIAL IMPACT:
Adoption of the Resolution will establish a Revenue Allocation Formula(RAF), thereby defining
the City's contribution to the Poudre Fire Authority in 2002 for operations and maintenance. The
RAF will provide a contribution to the PFA of$10,695,613 in 2002 to meets its operation and
maintenance needs. This represents an increase of $730,959, up 7.3% over 2001. (The 2001
contribution totaled $9,964,654.) The City will also contribute ongoing funds of$268,313, and
one-time funds totaling $400,000, representing adjustments for the actual growth limit in revenue
as defined by Article X, Section 20 of the Colorado Constitution. In addition,the City will continue
its current policy of funding the PFA by dedicating one mill of the City's total mill levy. These
funds,estimated at$1,208,602 in 2002,are available for operations,maintenance,and capital needs
EXECUTIVE SUMMARY:
In December 1981, the Council entered into an agreement with the Poudre Valley Fire Protection
District, creating the Poudre Fire Authority.
According to the Intergovernmental Agreement between the City of Fort Collins and the Poudre
Valley Fire Protection District,the City will contribute funding for maintenance and operating costs
to the Authority based on a"Revenue Allocation Formula" ("RAF"). The RAF is to be set annually
based upon a percentage of sales and use tax revenues (excluding dedicated sales and use tax
revenues that must be spent on specific projects) and a portion of the operating mill levy of the
City's property tax. Article X, Section 20 of the State Constitution limits the rate of growth to a
combination of the Denver-Boulder Consumer Price Index and additions to the local property tax
base primarily due to construction and annexation. Although voters passed a ballot measure in
November, 1997 allowing the City to retain excess revenues over the growth limits imposed by
Article X, Section 20,the RAF is still reviewed annually and proportionately reduced,if necessary,
if City revenues exceed the estimated annual percentage increase in revenues that the City would
• be permitted to retain under Article X, Section 20.
As in past years,the City will calculate the RAF at a sum equal to .303 of one cent of the 2.25 cent
sales and use tax applicable to all taxable sales and uses plus 67.09% of the property tax available
DATE: November 6, 2001 2 ITEM NUMBER: 35
for operations. This amount will be proportionately reduced,if necessary, if City revenues exceed
estimated annual percentage increase in revenues that the City would be permitted to retain under
Article X, Section 20 of the State Constitution. The City's 2002 contribution to the Poudre Fire
Authority for operations and maintenance, in the amount of$10,695,613, has been calculated and
proportionately reduced in this manner.
In addition to the contribution to the PFA according to the RAF,the 2002-2003 Budget provides one
mill of the City's property tax mill levy to fund the Poudre Fire Authority's capital needs. This mill
levy was approved by the Council in 1991 as a means for producing the additional funding necessary
for the anticipated capital improvements, including land acquisition, construction of additional
stations, and acquisition of major fire fighting apparatus. The revenue from this dedicated mill is
to be managed according to the property tax levy and revenue limitation provisions of Article X,
Section 20. It is anticipated that the one mill tax levy will generate an estimated$1,208,602 for PFA
capital.
The City will also contribute$268,313 in ongoing funds and$400,000 in one-rime funds in 2002,
in order to align the City's contribution to PFA with the actual growth limit as calculated under
Article X, Section 20 of the State Constitution.
• RESOLUTION 2001-154
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING A REVENUE ALLOCATION FORMULA TO DEFINE THE
CITY OF FORT COLLINT CONTRIBUTION TO THE POUDRE FIRE
AUTHORITY BUDGET FOR THE YEAR 2002 FOR OPERATIONS AND MAINTENANCE
WHEREAS, the City of Fort Collins (the "City") entered into an Intergovernmental
Agreement dated December 22, 1981, with the Poudre Valley Fire Protection District (the
"District"), creating the Poudre Fire Authority(the "Authority") as an entity; and
WHEREAS,the Authority provides fire protection services to all properties within the city
limits,and the City has a continuing commitment to provide funding to the Authority to accomplish
the provision of these public safety services; and
WHEREAS,as a part of the Intergovernmental Agreement,the City has agreed to contribute
funding for maintenance and operation costs to the Authority based on a "Revenue Allocation
Formula" which is to be set annually based upon a percentage of sales and use tax revenues
(excluding sales and use tax revenue which must be spent on specific projects)and a portion of the
operating mill levy of the City's property taxes available for operations; and
WHEREAS, with the adoption of Article X, Section 20 of the Colorado Constitution (on
• November 2, 1992), the Council determined that the City's contribution to the Authority, as
determined by the Revenue Allocation Formula, should be proportionately reduced, if necessary,
if City revenues exceed the estimated annual percentage increase in revenues that the City would
be permitted to retain under Article X, Section 20; and
WHEREAS, the City's contribution to the Authority for 2002 operating and maintenance
cost has been so calculated and adjusted.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
That the following revenue allocation formula be, and hereby is, adopted to determine the
City's contribution to the Poudre Fire Authority for the year 2002:
REVENUE ALLOCATION FORMULA
The City will contribute to the Poudre Fire Authority a sum equal to .303 of one cent of the City's
2.25 cent sales and use tax rate applicable to sales and use tax revenues(excluding sales tax revenue
which must be spent on specific projects)and a sum equal to 67.09 percent of the operating mill levy
of the City's property taxes to provide for maintenance and operation costs of the Poudre Fire
Authority;provided,however,that such contribution shall be proportionately reduced,if necessary,
if City revenues exceed the estimated annual percentage increase in revenues that the City would
be permitted to retain under Article X, Section 20 of the Colorado Constitution.
Passed and adopted at a regular meeting of the City Council held this 6th day of November,
A.D. 2001.
Mayor
ATTEST:
City Clerk