HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/03/2009 - RESOLUTION 2009-101 ADOPTING A REVENUE ALLOCATION DATE: November 3, 2009 AGENDA ITEM SUMMARY
STAFF: Chuck Seest FORT COLLINSCOUNCIL
Resolution 2009-101 Adopting a Revenue Allocation Formula to Define the City of Fort Collins' Contribution to the
Poudre Fire Authority Budget for the Year 2010 for Operations and Maintenance.
EXECUTIVE SUMMARY
This Resolution establishes a Revenue Allocation Formula between the City of Fort Collins and the Poudre Fire
Authority to contribute funding for maintenance and operating costs of Poudre Fire Authority.
BACKGROUND/DISCUSSION
In December 1981,the Council entered into an agreementwith 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 PFA based on a Revenue Allocation
Formula ("RAF"). The RAF is to be set annually, but paid monthly, 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.
The City calculates the RAF at a sum equal to .216 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. Based on these calculations, the
City's 2010 contribution to the PFA for operations and maintenance is$15,472,239.
In addition to the RAF contribution, the 2010 Budget authorizes 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 to provide additional funding necessary for
anticipated capital improvements, including land acquisition, construction of additional stations, and acquisition of
major firefighting apparatus. The revenue from this dedicated mill is to be managed according to the property tax levy
and revenue limitation provisions of TABOR. Additionally, PFA is receiving additional property tax revenues from the
Southwest Annexation. It is anticipated that the one mill tax levy will generate an estimated $1,751,557.
FINANCIAL IMPACTS
Adoption of the Resolution will establish a Revenue Allocation Formula, thereby defining the City's contribution to the
Poudre Fire Authority in 2010 for operations, maintenance, and capital in the amount of$17,223,796. The 2010
contribution reflects no increase over the City's 2009 contribution.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
RESOLUTION 2009-101
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 2010
FOR OPERATIONS AND MAINTENANCE
WHEREAS,on December 22, 1981,the City entered into an Intergovernmental Agreement
with the Poudre Valley Fire Protection District creating the Poudre Fire Authority(the"Authority");
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 for its public
safety services; and
WHEREAS, as a part of the Intergovernmental Agreement the City's contribution for
maintenance and operation costs is based on a"revenue allocation formula" which is 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, the City's contribution to the Authority for 2010 operating and maintenance
cost has been so calculated and adjusted.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the following revenue allocation formula is hereby adopted to determine the City's
contribution to the Poudre Fire Authority for the-year 2010:
REVENUE ALLOCATION FORMULA
The City will contribute to the Poudre Fire Authority a sum equal to .216 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.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 3rd
day November, A.D. 2009.
Mayor
ATTEST:
City Clerk