HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/19/2004 - RESOLUTION 2004-124 ADOPTING A REVENUE ALLOCATION ITEM NUMBER: 18
AGENDA ITEM SUMMARY DATE: October 19, 2004
FORT COLLINS CITY COUNCIL STAFF: Doug Smith
SUBJECT
Resolution 2004-124 Adopting a Revenue Allocation Formula to Define the City of Fort Collins'
Contribution to the Poudre Fire AuthorityBudget for the Year 2005 for Operations and Maintenance.
RECOMMENDATION
Staff recommends adoption of the Resolution.
FINANCIAL IMPACT
Adoption of the Resolution will establish a Revenue Allocation Formula,thereby defining the City's
contribution to the Poudre Fire Authority in 2005 for operations, maintenance, and capital in the
amount of$13,222,855. The 2005 contribution reflects an increase over the City's 2004 contribution
of approximately$600,000.
EXECUTIVE SUMMARY
In December 1981, the Council entered into an agreement with the Poudre Valley Fire Protection
District, creating the Poudre Fire Authority("PFA").
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 ofthe City's
property tax. Article X, Section 20 of the State Constitution("TABOR") limits the rate of growth
to a combination of the Denver-Boulder-Greeley 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 TABOR, the RAF is still reviewed annually and proportionately reduced, when
necessary,ifCityrevenues exceed the estimated annual percentage increase in revenues that the City
would be permitted to retain under TABOR.
As in past years,the City initially calculated 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 for operations. That amount was reduced because the City's estimated revenues are
October 19, 2004 -2- Item No. 18
expected to exceed the estimated annual percentage increase in revenues for 2005 that the City would
normally be permitted to retain under TABOR. Based on these calculations, the City's 2005
contribution to the PFA for operations and maintenance is $11,854,358.
In addition to the contribution to the PFA according to the RAF,the 2004-2005 Budget provides one
mill of the City's property tax mill levy to fund the PFA'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 TABOR. It is anticipated that the one
mill tax levy will generate an estimated$1,368,497 for PFA capital.
RESOLUTION 2004-124
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING A REVENUE ALLOCATION FORMULA TO DEFINE THE
CITY OF FORT COLLINS' CONTRIBUTION TO THE POUDRE FIRE
AUTHORITY BUDGET FOR THE YEAR 2005 FOR OPERATIONS AND MAINTENANCE
WHEREAS, the City of Fort Collins (the "City") entered into an Intergovernmental
Agreement dated December 22, 1981,with the Poudre ValleyFire 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 2005 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 2005:
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 19th day of October,
A.D. 2004.
Mayor
ATTEST:
City Clerk