HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/16/2007 - RESOLUTION 2007-096 ADOPTING A REVENUE ALLOCATION ITEM NUMBER: 17
AGENDA ITEM SUMMARY DATE: October16, 2007
FORT COLLINS CITY COUNCIL STAFF: Chuck Seest
SUBJECT
Resolution 2007-096 Adopting a Revenue Allocation Formula to Define the City of Fort Collins'
Contribution to the Poudre Fire Authority Budget for the Year 2008 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 2008 for operations, maintenance, and capital in the
amount of$16,383,100. The 2008 contribution reflects an increase over the City's 2007 contribution
of approximately$877,756.
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
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 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. 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
October 16, 2007 -2- Item No. 17
imposed by TABOR, the RAF is still reviewed annually and proportionately reduced, when
necessary,if City revenues exceed the estimated annual percentage increase in revenues that the City
would normally 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
expected to exceed the estimated annual percentage increase in revenues for 2008 that the Citywould
normally be permitted to retain under TABOR. Based on these calculations, the City's 2008
contribution to the PFA for operations and maintenance is $14,852,769.
In addition to the RAF contribution,the 2008-2009 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. It is anticipated that the one mill tax levy will generate an
estimated $1,530,331.
RESOLUTION 2007-096
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 2007 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 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, after state voters approved Article X, Section 20 of the Colorado
Constitution, the Council determined that the City's contribution to the Authority, as determined
by the revenue allocation formula, should be proportionately reduced 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; and
WHEREAS, the City's contribution to the Authority for 2008 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 2008:
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. However, said contribution shall be proportionately reduced 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 Council of the City of Fort Collins this
16th day of October, A.D. 2007.
Mayor
ATTEST:
City Clerk