HomeMy WebLinkAboutMemo - Read Before Packet - 1/2/2019 - Memorandum From Poudre Valley Fire Protection District (Pvfpd) Board Of Directors Re: Keep Fort Collins Great (Kfcg) Renewal - Work Session Agenda Item #2Memorandum
TO: Mayor and City Council Members
FROM: Poudre Valley Fire Protection District (PVFPD) Board of Directors
RE: Keep Fort Collins Great (KFCG) Renewal
DATE: December 20, 2018
As City Council reviews its options for renewal of the KFCG tax measure at its January
2, 2019 meeting, the PVFPD Board encourages Council to support continuation of the
current level of funding to Poudre Fire Authority (PFA), some derived from KFCG.
On December 10, 2018, the PVFPD Board of Directors heard a presentation from City of
Fort Collins Senior Project Manager, Ginny Sawyer, regarding the City’s proposed
renewal of the Keep Fort Collins Great sales and use tax. Ms. Sawyer reviewed the
existing City sales taxes and the basic term of the KFCG program, including the 2020
sunset provision. She shared with the PVFPD Board that the City has conducted
extensive outreach on the tax measure and various options, which the Council will
consider for renewing the tax prior to its expiration.
The PVFPD Board is very supportive of the current funding method for the Poudre Fire
Authority as outlined in the 2014 Amended and Restated Intergovernmental Agreement
(IGA) establishing the Poudre Fire Authority. The IGA creates the PFA as a partnership
between the City of Fort Collins and the PVFPD, which has served the respective
communities with high quality fire services over the past 30+ years. As Council
Members are aware, the IGA calls for a funding formula made up of several elements,
including the following:
City of Fort Collins PVFPD
29% of one-cent of City base sales and use tax
Plus
100% of the District’s 10.595 mills of
property tax (less administrative
expenses)
67.5% of 9.797 mills property tax
Plus
Property tax revenue from Timnath
Urban Renewal Authority Tax
Increment Financing District –
10.595 mills of property tax
KFCG Sales and use tax revenue allocated to
“fire protection and other emergency services
funding” at 11% of the total .85% tax
The KFCG portion of the funding formula accounts for approximately $3 million, or
about 10%, of PFA’s total funding stream for the provision of fire, rescue, and
emergency medical services.
KFCG funding to PFA has provided a number of critical expenditures to provide service
in the rapidly growing community. Since 2010, call volume within the PFA jurisdiction
has increased by an average 6.42% per year, or a total of 55% in 7 years. Similarly,
overall revenues have increased by an average 6.7% per year during the same period.
KFCG funding has been essential to PFA’s ability to meet this increase in demand, and
has allowed PFA to hire a large number of minimum staffing positions, including nine
firefighters, Battalion Chiefs to create the South Battalion, Safety Officers, plus a
Division Chief, and the Accreditation Manager. These positions provide staffing for the
equivalent of one entire fire station, plus key positions for management and safety of
existing firefighters.
KFCG funding has also provided critical one-time funding for technology, equipment,
vehicles, emergency generators, safety equipment, software, and station maintenance.
Without KFCG funding, these costs would not be covered, or staffing would need to be
reduced, to avoid deferring maintenance and obsolescence of technology systems.
The PVFPD Board encourages the City Council to renew the KFCG tax measure at the
existing level for fire and emergency services and to seek ways to ensure that the funding
stream is assured through the ballot language. Such assurance could be accomplished by
earmarking a specific share of the revenue stream (similar to the 11% of .85%) or by
including a formula within the ballot language that would direct an adjustment to the
Revenue Allocation Formula in the IGA. A formula in the ballot language ordinance
could direct the City Council to update its contributions to PFA by a percentage, which
would keep the City’s contribution share consistent in the future.
The PVFPD Board encourages City Council to continue to support the fair allocation of
PFA costs between the two partners. With 85% of calls for service originating in the City
and 81% of total revenue coming from City contributions, the KFCG revenue has become
an essential portion of the City’s share of PFA funding.
Members of the PVFPD Board would be happy to discuss their feedback to City Council
at any time.