HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/16/2010 - RESOLUTION 2010-068 ADOPTING THE ANNUAL REVENUE AL DATE: November 16, 2010 0 A
STAFF: John Voss • - • •
Resolution 2010-068 Adopting the Annual Revenue Allocation Formula to Define the City of Fort Collins'Contribution
to the Poudre Fire Authority Budget for the Year 2011 for Operations and Maintenance.
EXECUTIVE SUMMARY
This Resolution establishes a Revenue Allocation Formula between the City of Fort Collins and the Poudre Fire
Authority, as required by the intergovernmental agreement between the parties, to account for the City's contribution
for funding maintenance and operating costs of Poudre Fire Authority.
BACKGROUND / DISCUSSION
In December 1981, the Council entered into an intergovernmental agreement(the"IGA")with the Poudre Valley Fire
Protection District,creating the Poudre Fire Authority("PFA"). The IGAwas amended in 1987 to provide,among other
things,that the Citywill 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 Ordinance sets the 2011 RAF at a sum equal to .184 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 2011 RAF contribution to the PFA for operations and maintenance is $14,796,257.
In addition to the RAF contribution, the 2011 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 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. 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 $1,748,615.
FINANCIAL / ECONOMIC IMPACTS
Adoption of the Resolution will establish a Revenue Allocation Formula that will result in a City contribution to the
Poudre Fire Authority in 2011 for operations and maintenance in the amount of$14,796,257. The 2011 contribution
reflects a $678,924 decrease from the City's 2010 RAF contribution and capital costs contributions. However, it is
anticipated that additional funds will be made available by the City to the Authority in the form of sales and use tax
revenues as a result of the voters' recent approval of the"Resourcing our Future" tax rate increase.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
RESOLUTION 2010-068
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE ANNUAL REVENUE ALLOCATION FORMULA TO DEFINE THE
CITY OF FORT COLLINS' CONTRIBUTION TO THE POUDRE FIRE
AUTHORITY BUDGET FOR THE YEAR 2011
FOR OPERATIONS AND MAINTENANCE
WHEREAS, on December 22, 1981,the City entered into an Intergovernmental Agreement
(the"IGA")with the Poudre Valley Fire Protection District creating the Poudre Fire Authority(the
"Authority"), which IGA was amended in 1987; 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, the IGA provides that the City's contribution for maintenance and operation
costs is based on a "revenue allocation formula" ("RAF") 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 RAF contribution to the Authority for 2011 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 formula is hereby adopted to set the City's RAF contribution to the
Poudre Fire Authority for the year 2011:
REVENUE ALLOCATION FORMULA
The City will contribute to the Poudre Fire Authority a sum equal to .184 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 16th
day of November A.D. 2010.
Mayor
ATTEST:
Chief Deputy City Clerk