HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/03/2013 - RESOLUTION 2013-098 ADOPTING THE ANNUAL REVENUE ALAgenda Item 15
Item # 15 Page 1
AGENDA ITEM SUMMARY December 3, 2013
City Council
STAFF
Chris Martinez, Budget Analyst
Mike Beckstead, Chief Financial Officer
SUBJECT
Resolution 2013-098 Adopting the Annual Revenue Allocation Formula to Define the City of Fort Collins’
Contribution to the Poudre Fire Authority Budget for the Year 2014 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 operating and maintenance of the Poudre Fire Authority.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
In December 1981, the Council entered into an intergovernmental agreement (“IGA”) with the Poudre
Valley Fire Protection District, creating the Poudre Fire Authority (“PFA”). The IGA was amended in 1987.
According to the IGA, the City will contribute funding for maintenance and operating costs of 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 .185 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 and
maintenance. Based on these calculations, the City’s 2014 contribution to the PFA, including Keep Fort
Collins Great (KFCG) funds, for operations and maintenance is $18,423,017.
In addition to the operation and maintenance contribution, the 2014 Budget authorizes one mill of the
City’s property tax mill levy to fund 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. It is anticipated that the one mill tax levy will generate an estimated
$1,771,802.
This Resolution does include the City’s contribution of $164,393 for the Southwest Annexation which was
included in the 2014 annual appropriation approved by City Council on November 5, 2013.
The City will also make a debt payment on behalf of PFA in 2014 in the amount of $234,354. This is
related to the capital expansion fees to be used for Station 4. This debt payment is not included in the
RAF calculation nor in the total indicated as the City’s Contribution to PFA for 2014, but is included in the
2014 annual appropriation approved by City Council on November 5, 2013.
Agenda Item 15
Item # 15 Page 2
Together, the City’s total 2014 contributions to PFA for operations and maintenance, capital needs, the
Southwest Annexation and debt retirement is $20,359,212.
FINANCIAL / ECONOMIC IMPACT
Adoption of the Resolution will establish a Revenue Allocation Formula, thereby defining the City’s
contribution to the Poudre Fire Authority in 2014. Additionally, one mill levy of the City’s Property tax mill
levy will go to fund PFA’s capital needs. The total City contributions to PFA for operations, maintenance
and capital needs in 2014 will be $20,359,212.
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RESOLUTION 2013-098
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 2014
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 last 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; and
WHEREAS, the City’s RAF contribution to the Authority for 2014 operations and
maintenance costs 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 2014:
REVENUE ALLOCATION FORMULA
The City will contribute to the Poudre Fire Authority a sum equal to .185 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) to
provide for maintenance and operation costs and a sum equal to 67.09 percent of
the operating mill levy of the City’s property taxes to provide for capital
improvement 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 of December A.D. 2013
____________________________________
Mayor
ATTEST:
________________________________
City Clerk