HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/06/2011 - RESOLUTION 2011-104 ADOPTING THE ANNUAL REVENUE ALDATE: December 6, 2011
STAFF: Mike Beckstead
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 26
SUBJECT
Resolution 2011-104 Adopting the Annual Revenue Allocation Formula to Define the City of Fort Collins’ Contribution
to the Poudre Fire Authority Budget for the Year 2012 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.
BACKGROUND / DISCUSSION
In December 1981, the Council entered into an agreement with the Poudre Valley Fire Protection District, creating the
Poudre Fire Authority (“PFA”). The agreement was amended in 1987.
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 .253 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 2012 contribution to the PFA for operations and maintenance is $17,104,190.
In addition to the operation and maintenance contribution, the 2012 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 $1,786,261.
This Resolution does not include the City’s contribution of $158,009 for the Southwest Annexation. That money was
not appropriated in the 2012 Budget (Ordinance No. 156, 2011) and will need to be appropriated in 2012.
The City will also make a debt payment on behalf of PFA in 2012 in the amount of $234,353. 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 2012.
FINANCIAL / ECONOMIC IMPACTS
Adoption of the Resolution will establish a Revenue Allocation Formula, thereby defining the City’s contribution to the
Poudre Fire Authority in 2012. Additionally, one mill levy of the City’s Property tax mill levy fund PFA’s capital needs.
The total City contributions to PFA for operations, maintenance and capital needs in 2012 will be $18,890,451.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
RESOLUTION 2011-104
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 2012
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;
and
WHEREAS, the City’s RAF contribution to the Authority for 2012 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 2012:
REVENUE ALLOCATION FORMULA
The City will contribute to the Poudre Fire Authority a sum equal to .253 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 6th
day of December A.D. 2011.
Mayor
ATTEST:
City Clerk