HomeMy WebLinkAbout1992-169-11/17/1992-BUDGET 1993 CITIZEN INITIATED ORDINANCE FINANCIAL MANAGEMENT POLICIES NATURAL AREAS SALES TAX SALES RESOLUTION 92-169
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING FINANCIAL AND MANAGEMENT POLICIES
RELATING TO THE 1993 ANNUAL BUDGET
WHEREAS, the Financial and Management Policies Relating to the 1993 Annual
Budget were adopted by City Council by Resolution 92-115 on July 7, 1992; and
WHEREAS, the citizens of the City of Fort Collins approved a citizen
initiated ordinance by election on November 3, 1992, creating a 0.25 cent Sales
and Use Tax (excluding grocery food) for the acquisition, construction,
enhancement and maintenance of trail systems, wildlife habitat and other natural
areas; and
WHEREAS, passage of this citizen initiated ordinance requires the amendment
of sections of the 1993 Financial and Management Policies referring to Sales and
Use Taxes and Capital ; and
WHEREAS, the City Council wishes to amend the 1993 Financial and Management
Policies for the fiscal year beginning January 1, 1993 and ending December 31 ,
1993.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS,
that sections 2.3, 3.7, 6.1 , and 6.3 of the City's 1993 Financial and Management
Policies are amended as set forth on Exhibit "A" attached hereto and incorporated
herein by reference.
Passed and adopted at a regular meeting of the City Council held this 17th
day of November, A.D. 1992.
1
Mayor
ATTEST:
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2.3. SALES AND USE TAX DISTRIBUTION
The City's Sales and Use Tax totals 2-.7-5 L:00 cents, developed as follows:
1968 - General City uses 1 .00
1980 - General City uses 1 .00
1982 - General City uses .25
1989 - Street Capital Maintenance .25*
1990 - Choices 95 Capital Improvement Program .25*
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2.75
*Excluding sales of grocery food.
Revenue generated by the Sales and Use Tax will be distributed, based
on adopted budgets, in the following manner:
TAX ON ALL SALES & USES: 2.25 cents
(1) Fixed Dollar Amounts
Annual Debt Service
Fort Collins/Loveland Airport Authority
Sales & Use Tax Debt Service Reserves
Street Oversizing
(2) General Fund
Actual Sales and Use Tax revenue generated by the 2.25 cent tax
in excess of the fixed dollar amounts listed above, will be
transferred to the General Fund.
Actual Sales and Use Tax revenue generated by the 0.25 cent tax
for Street Capital projects will be transferred to, and be retained
in the Capital Projects Fund for repair and maintenance of existing
streets (92% to Capital Projects and 8% to the Transportation
Fund).
Actual Sales and Use Tax revenue generated by the 0.25 cent tax
for the CHOICES 95 Capital Improvement Program will be
transferred to, and retained in, the Capital Projects Fund for
construction of projects approved during the CHOICES 95
process.With this pay-as-you-go program, no debt will be incurred
to complete projects.
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3.7. REBATE PROGRAMS
The City recognizes that certain segments of its population, specifically the
handicapped and senior citizens on fixed incomes, may be unable to keep pace with
increasing taxes and utility costs. In an effort to partially offset the cost of Property
Taxes, utility billings and Sales Taxes on these segments of its population, the City
has established several rebate programs, as follows:
Property Tax and Utility Charge Rebate Program
These programs provide financial assistance to handicapped residents and senior
citizens, in the form of an annual rebate on Property Tax and Utility charges, who
qualify under residency and income guidelines.
Sales Tax Rebate on Food Program
The City recognized the regressiveness of the Sales Tax on food and specifically
excluded the sale of grocery food when enacting a voter-approved $0.25 cent Sales
and Use extension for street maintenance on July 1, 1989 and the extension of the
0.25 cent January 1, 1990, for the CHOICES 95 Capital Improvement Program 'Tfie
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In addition to these measures, the City has a Sales Tax Rebate on Food Program. This
program provides for an annual rebate to members of qualifying households on the
basis on residency and income guidelines.
GOVERNMENTAL AND PROPRIETARY FUNDS
4.1. GENERAL FUND
The General Fund is the largest and most diverse of the City's operating funds. It
includes all resources not legally restricted to specific uses. The major source of
revenue to the General Fund is Sales & Use Tax, which accounts for approximately
56% of the revenue. Local Property Tax and Lodging Tax are also included, as are
revenues derived from fees for services and materials, licenses, permits, and fines.
Service Productivity Incentive Policy
This Policy provides incentives for General Fund managers to improve planning and
delivery of services. General Fund managers need a means by which to save unspent
annual appropriations that result from increases in productivity. Without an incentive
Policy, managers tend to spend savings on short term needs rather than long-range
service improvement. This policy creates incentives to more closely examine spending
decisions and to consider program related savings before requesting additional General
CAPITAL IMPROVEMENT FUNDS
6.1. CITIZEN PARTICIPATION
With Resolution 87-130, Council solicited citizen involvement and participation in
formulating a Capital Improvements Program known as Choices 95. By this
Resolution, a citizen committee was created to make recommendations on the
capital improvement needs of the community and the financing of those
improvements. The recommended Capital Improvement Program was presented to
Council by the Choices 95 citizen committee along with a pay-as-you-go funding
recommendation. The Choices 95 citizen committee was instrumental in the
determination of projects and funding mechanism to be accomplished in the 1991-
1998 Capital Improvement Program.
The residents of Fort Collins on March 7, 1989, approved the extension of a 0.25
cent Sales and Use Tax rate (excluding grocery food) to finance the Choices 95
Capital Improvement Program. This extension is effective for a seven year period
beginning January 1 , 1990. In addition, the residents also approved the extension
of 0.25 Sales and Use Tax rate (excluding grocery food) to finance much needed
resurfacing of the City's streets. This extension is effective July 1, 1989 and
expires January 1 , 1997.
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6.2. CAPITAL IMPROVEMENT POLICY
With the exception of the Choices 95 Capital Programs, the City will continue to
operate under its existing Capital Improvement Policy:
• The City will develop a multi-year plan for capital improvements and
update it annually;
• The City will make all capital improvements in accordance with the
adopted Capital Improvement Program and the Capital Project
Management Control System;
• The City will identify estimated costs and funding sources for each
capital project requested before it is submitted to City Council;
• The City will use intergovernmental assistance to finance only those
capital improvements that are consistent with the Capital Improvement
Plan and City priorities and whose operating and maintenance costs have
been included in the operating budget forecasts.
6.3. CAPITAL IMPROVEMENT PROGRAM
The City's Capital Improvement Program includes the Capital Projects Fund, the
Conservation Trust Fund, and the Parkland Fund.
Capital Projects Fund
Projects within the Capital Projects Fund are classified as follows:
0 General City Capital Projects
General Capital Projects
Choices 95 Capital Projects
Street Capital Maintenance
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GENERAL CITY CAPITAL PROJECTS:
General Capital Projects include minor street repair, concrete program, pedestrian
access ramps, major building maintenance and other minor capital projects. General
Capital Projects are financed by transfers from the appropriate financing fund and
can be financed through bond proceeds and/or grant funds deposited directly in the
Capital Projects Fund.
Choices 95 Capital Projects were recommended by the Choices 95 citizen
committee and approved by the voters of Fort Collins. The proceeds of the 0.25
cent Sales and Use Tax is specifically dedicated to finance these projects.
Street Capital Maintenance consists of the Street Overlay and Sealcoat Program.
This program provides for repair and maintenance of existing streets using
cracksealing, patchings, sealcoats, overlays or reconstruction. Council recognized
the importance of maintaining existing City streets, and the voters approved using
0.25 cent Sales and Use Tax revenue to finance the projects. (92% of the
revenues are allocated for street rehabilitation and 8% for minor street
maintenance).
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UTILITY CAPITAL PROJECTS:
Utility Capital Projects, specifically Storm Drainage, Wastewater and Water, were
in prior years also part of the Capital Projects Fund. Utility capital projects are
budgeted within the appropriate enterprise fund. Sources of funding for utility
capital projects are bond proceeds and specific fees and charges.
CONSERVATION TRUST FUND PROJECTS:
The Conservation Trust Fund provides for the receipt and expenditure of revenue
received from the Colorado State Lottery. The Lottery revenue finances capital
projects which relate to the acquisition and development of open space and trails
including associated administrative costs and charges. Consistent with Colorado
statutes, the operation and maintenance of existing open space and trails may also
be financed by these funds.
PARKLAND FUND PROJECTS:
The Parkland Fund provides for the development of neighborhood parks, as
financed by a Parkland Fee. The Parkland Fee is collected from developers for each
new dwelling unit established within the City limits. The Parkland Fund includes
funds for neighborhood park capital improvements, with associated operation and
maintenance costs included in the General Fund operating budget.
DEBT POLICIES
7.1. POLICY STATEMENT
The City of Fort Collins recognizes the primary purpose of capital facilities is to
support provision of services to its residents. Using debt financing to meet the
capital needs of the community must be evaluated according to two tests -
efficiency and equity. The test of efficiency equates to the highest rate of return
for a given investment of resources. The test of equity requires a determination of
who should pay for the cost of capital improvements. In meeting the demand for
additional capital facilities, the City will strive to balance the load between debt
financing and "pay as you go" methods. The City realizes failure to meet the
demands of growth may inhibit its continued economic viability, but also realizes
too much debt may have detrimental effects. Through the rigorous testing of the
need for additional debt financed facilities and the means by which the debt will
be repaid, the City will strike an appropriate balance between service demands and
the amount of debt.
The City of Fort Collins uses lease purchase financing for the provision of new and
replacement equipment, vehicles and rolling stock in order to ensure the timely
replacement of equipment and vehicles and to decrease the impact of the cost to
the user department by spreading the costs over several years. This method may
also be used to acquire real property. The type of lease that the City uses is termed
a conditional sales lease, in effect a purchase rather than a rental of property. The
annual installments for all leases are appropriated by the Council each year. For
purposes of securing credit ratings and monitoring annual debt service as a