Revenue Manual December 2017

Transcription

1 Revenue Manual December 2017

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3 City of Arvada Revenue Manual December 2017 Table of Contents Introduction...1 General Fund Revenues...3 Sales Tax (General Fund)...4 Auto Use Tax (General Fund)...5 Property Tax...6 Highway Users Trust Fund...7 Building Use Tax (General Fund)...8 General Use Tax (General Fund)...9 Specific Ownership Tax...10 Admissions Tax...11 Road & Bridge Tax...12 Cigarette Tax...13 Lodging Tax...14 Severance Tax & Federal Mineral Lease...15 Franchise Fees Power and Natural Gas Utility Service...16 Franchise Fees Telephone Service...17 Franchise Fees Cable Television...18 Peg Cable Fees...19 Building Permit Fees...20 Public Improvement Fees...21 Development Plan Inspection Fees...22 Building Plan Review Fees...23 Zoning & Subdivision Fees...24 Court Fines & Fees...25 Court Costs...26 Professional & Occupational Licenses...27 Miscellaneous Motor Vehicle Licenses...28 Passport Fees...29 Interfund Transfers...30 Investment Interest...31 Penalties/Interest/Adjustments...32 Audit Revenue (General Fund)...33 i

4 50/50 Concrete Replacement Program...34 Miscellaneous Recovered Costs...35 Police Tax Increment Funds...37 Sales Tax (PD Tax Increments)...38 Auto Use Tax (PD Tax Increments)...39 Building Use Tax (PD Tax Increments)...40 General Use Tax (PD Tax Increments)...41 Audit Revenue (PD Tax Increments)...42 Other Major Governmental Revenues...43 Conservation Trust Fund...44 Jefferson County Open Space Sales Tax...45 Adams County Transportation Sales Tax...46 Adams County Open Space Sales Tax...47 ii

5 INTRODUCTION The Department of Finance is pleased to present the 2017 Revenue Manual for the City of Arvada. This document is intended to provide City Council, staff, and the citizens a comprehensive look at major City governmental revenues. Enterprise revenues are beyond the current scope of this manual, but will be added in future revisions. While this document has been annually updated and reproduced for many years, both the format and data contained have been revised in order to make the manual a more useful tool in evaluating the City revenues. Information provided for each revenue source includes: Up to ten years of actual annual receipts Revised estimates for each year in the current biennial budget (2017 & ) Associated account numbers in, the City s financial information management system The current rate at which the revenue is assessed A brief description of the revenue The governmental entity responsible for collecting the revenue The enabling legislation providing for the assessment and collection of the revenue Special use restrictions on the revenue (if any) Current rationale behind the estimates on future collections 1

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7 GENERAL FUND REVENUES A vast majority of Arvada s governmental revenues come in one of three types: Taxes Fees Intergovernmental Revenue From the largest source, sales tax, to among the smallest, such as lodging taxes, these revenues fuel most of the City s operating and capital needs. In general, tax revenues may be spent on any Arvada government operation, from street maintenance and new infrastructure to salaries, computers and paper clips. Most fees are collected to offset the costs of a particular service offered by the City. Examples include building permit and plan review fees imposed by Building Inspection to cover its operations, and development plan inspection fees imposed by the Department of Community Development for some of its work related to the Planning Commission, new developments and annexations. As for intergovernmental revenues, these are taxes and fees imposed by other jurisdictions, usually the state or a county. By law, the City is entitled to a portion of any revenues collected. The largest example is the Highway Users Trust Fund, by which the State distributes motor fuel excise taxes and certain license and registration fees. The breakout of revenue sources for the General Fund in 2016 was as follows: Franchise Fees 4.62% Highway Users Trust Fund 4.52% Interfund Transfers 3.91% Other Financing Sources 7.21% Building Permits 5.24% Property Tax 6.15% Building Use Tax 7.49% Auto Use Tax 7.89% Sales Tax 52.99% 3

8 $60,000,000 Sales Tax (General Fund) $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000, & % A tax on all sales and services taxable in the City of Arvada, save for several enumerated exceptions at a rate set by the City of Arvada City of Arvada Arvada Code et seq. None, save for the annual appropriation of 20% of sales tax revenue to the Capital Improvements Fund and/or Debt Service Funds per Arvada Code Based on year-to-date figures for 2015 and continued growth consistent with past receipts for $ 35,444, % 2008 $ 35,945, % 2009 $ 34,584, % Percentage 2010 $ 34,776, % of total $ 35,852, % General Fund 2012 $ 37,954, % Revenue 2013 $ 40,205, % 52.99% 2014 $ 43,211, % 2015 $ 45,902, % 2016 $ 48,111, % 2017 $ 50,036, % $ 51,532, % The electors of Arvada approved the City's first sales tax (1.0%) in

9 $8,000,000 Auto Use Tax (General Fund) $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000, % A tax on all motor vehicles registered within the boundaries of the City of Arvada immediately subsequent to their sale at a rate set by the City of Arvada Jefferson and Adams Counties Arvada Code et seq. None With several years of incredible growth since 2009, projections presume a "breather"; this runs consistent with presumptions for Specific Ownership Tax receipts 2007 $ 4,720, % 2008 $ 4,298, % 2009 $ 3,929, % Percentage 2010 $ 3,981, % of total $ 4,340, % General Fund 2012 $ 4,804, % Revenue 2013 $ 5,379, % 7.89% 2014 $ 5,982, % 2015 $ 6,973, % 2016 $ 7,162, % 2017 $ 7,350, % $ 6,982, % Taxes are paid to the jurisdictions in which a motor vehicle is registered, not where it is sold. As such, Arvada's lack of a large car dealer is immaterial to the City's collection of these taxes. 5

10 $7,000,000 Property Tax $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000, Mills (0.431%) of assessed valuation A tax assessed against all real and business personal property, in the manner prescribed by state law, within the City of Arvada at a rate set by the City of Arvada Jefferson and Adams Counties CRS et seq. None Presumes substantial increase based on preliminary valuations for 2015 tax year (paid in 2016) 2007 $ 4,383, % 2008 $ 4,718, % 2009 $ 4,770, % Percentage 2010 $ 4,637, % of total $ 4,643, % General Fund 2012 $ 4,500, % Revenue 2013 $ 4,556, % 6.15% 2014 $ 4,600, % 2015 $ 4,668, % 2016 $ 5,583, % 2017 $ 5,644, % $ 5,926, % Arvada has one of the lowest mill levies in the Denver Metro region, at 4.31 mills. Arvada's mill levy last changed in

11 $4,500,000 Highway Users Trust Fund $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500, Based on state formula, with share based on weighted vehicle registration totals The City of Arvada receives monthly a statutorily-mandated share of revenues from the Colorado Highway Users Tax Fund, with Fund revenues including state-set excise taxes on motor fuel and certain vehicle license and registration fees Colorado Department of Local Affairs CRS et seq. For the construction, engineering, reconstruction, maintenance, repair, equipment, improvement, and administration of the system of streets of Arvada or of any public highways located within Arvada Based on continued growth consistent with past receipts and roughly, though conservatively, consistent with State Legislative Council 2007 $ 3,258, % 2008 $ 3,111, % 2009 $ 3,340, % Percentage 2010 $ 3,791, % of total $ 3,809, % General Fund 2012 $ 3,818, % Revenue 2013 $ 3,847, % 4.52% 2014 $ 3,937, % 2015 $ 4,077, % 2016 $ 4,101, % 2017 $ 4,180, % $ 4,242, % This revenue source has been relatively flat over the past five years as Coloradans have increased their use of alternative forms of transportation, offsetting the growth in population. 7

12 $8,000,000 Building Use Tax (General Fund) $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000, % on the permit valuation A tax paid for the issuance of a building permit at a rate set by the City of Arvada in lieu of taxes being assessed on materials used for construction purposes City of Arvada Arvada Code et seq. & Arvada Code et seq. None While recognizing that building activity will likely remain highly elevated in the years to come, 2016 figures presume a base level of construction activity consistent with past years 2007 $ 1,641, % 2008 $ 1,527, % 2009 $ 2,042, % Percentage 2010 $ 1,732, % of total $ 1,780, % General Fund 2012 $ 2,385, % Revenue 2013 $ 2,884, % 7.49% 2014 $ 4,431, % 2015 $ 5,215, % 2016 $ 6,799, % 2017 $ 2,420, % $ 2,430, % The budget represents a base number that the City can rely upon through a ten-year model. 8

13 $1,800,000 General Use Tax (General Fund) $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200, % A tax paid by a consumer for using, storing, distributing or otherwise consuming tangible personal property or taxable services within the boundaries of the City of Arvada at a rate set by the City of Arvada City of Arvada Arvada Code et seq. None Based on continued growth consistent with past receipts 2007 $ 1,122, % 2008 $ 1,467, % 2009 $ 1,278, % Percentage 2010 $ 1,374, % of total $ 1,511, % General Fund 2012 $ 1,220, % Revenue 2013 $ 1,554, % 1.45% 2014 $ 1,533, % 2015 $ 1,598, % 2016 $ 1,312, % 2017 $ 1,632, % $ 1,665, % General use tax receipts have a long history of volatility, due primarily to large percentages of total receipts being paid by a few large firms whose relevant activity fluxuates year to year. 9

14 $500,000 Specific Ownership Tax $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50, From $3 to 2.10% of taxable value of a vehicle; share based on formula A tax based on the year of manufacture for a motor vehicle and the original taxable value (generally 85% of the manufacturer's suggested retail price (MSRP) for a car and 75% of MSRP for qualifying trucks) as defined by state statute, with rates falling as the vehicle ages Jefferson and Adams Counties CRS None With substantial growth since 2011, projections presume a "breather"; this runs consistent with presumptions for Auto Use Tax receipts 2007 $ 401, % 2008 $ 380, % 2009 $ 350, % Percentage 2010 $ 323, % of total $ 310, % General Fund 2012 $ 328, % Revenue 2013 $ 349, % 0.52% 2014 $ 375, % 2015 $ 405, % 2016 $ 472, % 2017 $ 367, % $ 375, % The specific ownership tax is primarily collected by counties and for most motor vehicles is based on a percentage of the manufacturer's suggested retail price (MSRP). The tax rate is reduced as the vehicle ages. 10

15 $350,000 Admissions Tax $300,000 $250,000 $200,000 $150,000 $100,000 $50, % A tax on the price to gain admission to any place or event in the City of Arvada that is open to the public, at a rate set by the City of Arvada City of Arvada Arvada Code et seq. None Based on continued growth consistent with past receipts 2007 $ 139, % 2008 $ 145, % 2009 $ 164, % Percentage 2010 $ 156, % of total $ 156, % General Fund 2012 $ 182, % Revenue 2013 $ 185, % 0.18% 2014 $ 162, % 2015 $ 145, % 2016 $ 166, % 2017 $ 196, % $ 300, % Movie theaters are a significant source of this revenue, and are anticipated to see a substantial increase in base activity in. 11

16 $1,400,000 Road & Bridge Tax $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200, Jefferson County: Mills; Adams County: Mills A property tax at a mill levy set by counties for road and bridge construction, maintenance, and administration, with half of collections attributable to taxable property falling within the boundaries of the City of Arvada payable from the relevant county to the City of Arvada; substantial drops in the late 2000s reflect past levy reductions by JeffCo Jefferson and Adams Counties CRS For the construction and maintenance of roads and streets located within Arvada's boundaries Presumes a substantial increase for calendar 2016, as is the case with Property Tax, though at a lower rate since counties may change their Road & Bridge levies at their own discretion 2007 $ 1,244, % 2008 $ 1,252, % 2009 $ 1,251, % Percentage 2010 $ 970, % of total $ 776, % General Fund 2012 $ 855, % Revenue 2013 $ 718, % 0.88% 2014 $ 730, % 2015 $ 734, % 2016 $ 799, % 2017 $ 826, % $ 860, % The small increases in the past couple of years raised Arvada's share of the tax to only 60% of what we received in 2008 and

17 $250,000 Cigarette Tax $200,000 $150,000 $100,000 $50, $0.042 per cigarette The state apportions an amount equal to 27% of state cigarette tax revenues to local governments in proportion to the amount of state sales tax revenues collected within the boundaries of the local governments Colorado Department of Revenue CRS et seq. None on Arvada's share Assumes stabilized level of revenue consistent with recent years 2007 $ 191, % 2008 $ 182, % 2009 $ 173, % Percentage 2010 $ 175, % of total $ 172, % General Fund 2012 $ 167, % Revenue 2013 $ 163, % 0.19% 2014 $ 163, % 2015 $ 164, % 2016 $ 170, % 2017 $ 165, % $ 165, % 13

18 $120,000 Lodging Tax $100,000 $80,000 $60,000 $40,000 $20, % A tax imposed by the City of Arvada for the purchase price paid or charged for lodging within the City of Arvada for a period of less than 30 consecutive days (lodging tax was not booked separately from sales tax until late 2007) City of Arvada Arvada Code et seq. None Assumes stabilized level of revenue consistent with recent years 2007 N/A N/A 2008 $ 12,148 N/A 2009 $ 11, % Percentage 2010 $ 14, % of total $ 17, % General Fund 2012 $ 14, % Revenue 2013 $ 17, % 0.03% 2014 $ 20, % 2015 $ 22, % 2016 $ 24, % 2017 $ 110, % $ 113, % The substantial increase for 2017 and reflects expected revenue from a new hotel opening in March However, lodging taxes collected by this hotel will end up with the Arvada Urban Renewal Authority and not the General Fund. 14

19 $180,000 Severance Tax & Federal Mineral Lease $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20, Varies Severance: taxes set by Colorado statute on the "severing" of minerals from the ground, with local shares based on impacts of the drilling & mining industries on local jurisdictions; Federal Mineral Lease: state revenue gained from drilling & mining activities on federal public lands within Colorado, with local shares determined by a statutory formula based upon, among other things, impacts of drilling and mining activities on local jurisdictions Colorado Department of Local Affairs CRS et seq. and CRS et seq. None Set conservatively low due to downward volatility in relevant commodity prices over the past year 2007 $ 25, % 2008 $ 93, % 2009 $ 113, % Percentage 2010 $ 49, % of total $ 62, % General Fund 2012 $ 89, % Revenue 2013 $ 96, % 0.09% 2014 $ 164, % 2015 $ 157, % 2016 $ 82, % 2017 $ 75, % $ 75, % Fluctuations with these receipts are closely correlated with volatility in commodity prices, such as oil and natural gas. 15

20 $3,500,000 Franchise Fees - Power and Natural Gas Utility Service $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500, % on all gross revenues for franchisee A fee collected by the franchisee in partial consideration for the use of City of Arvada streets, rights-of-way, and other infrastructure City of Arvada Ord (Public Service Company) and Ord (United Power) None Based on continued growth consistent with past receipts 2007 $ 2,711, % 2008 $ 3,032, % 2009 $ 2,708, % Percentage 2010 $ 2,958, % of total $ 2,940, % General Fund 2012 $ 2,754, % Revenue 2013 $ 2,998, % 3.03% 2014 $ 3,062, % 2015 $ 2,867, % 2016 $ 2,752, % 2017 $ 2,813, % $ 2,883, % Franchise fee revenues are heavily succeptible to both the weather and commodity prices. 16

21 $300,000 Franchise Fees - Telephone Service $250,000 $200,000 $150,000 $100,000 $50, $0.455 per line each month Levied on and against each provider a tax per line each month on the occupation and business of providing basic local exchange service at retail to residents of the City City of Arvada Arvada Code et seq. None Assumes stabilized level of revenue consistent with recent years 2007 $ 260, % 2008 $ 245, % 2009 $ 239, % Percentage 2010 $ 223, % of total $ 205, % General Fund 2012 $ 197, % Revenue 2013 $ 188, % 0.19% 2014 $ 188, % 2015 $ 199, % 2016 $ 174, % 2017 $ 190, % $ 190, % Revenue has declined over the years as some Arvada residents eliminated their land lines in favor of cellular phones. 17

22 $1,400,000 Franchise Fees - Cable Television $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200, % on gross revenues for franchisee A fee collected by the franchisee in partial consideration for the use of City of Arvada streets, rights-of-way, and other infrastructure City of Arvada Comcast: Ordinance 4564 Baja: Ordinance 4432 None Based on continued growth consistent with past receipts 2007 $ 905, % 2008 $ 950, % 2009 $ 988, % Percentage 2010 $ 1,024, % of total $ 1,021, % General Fund 2012 $ 1,080, % Revenue 2013 $ 1,120, % 1.39% 2014 $ 1,147, % 2015 $ 1,173, % 2016 $ 1,265, % 2017 $ 1,209, % $ 1,209, % Despite the rise of programming alternatives to cable television, the Arvada market has continued to expand. 18

23 $140,000 PEG Cable Fees $120,000 $100,000 $80,000 $60,000 $40,000 $20, $0.50 per month per residential subscriber Per federal legislation, the City is permitted to charge up to $0.50 per month in fees to cable television customers in order to finance public television City of Arvada Franchise Agreements with City For public, educational, and governmental capital costs for public access television Based on continuingly stable receipts consistent with recent history 2007 $ 125, % 2008 $ 123, % 2009 $ 124, % Percentage 2010 $ 121, % of total $ 115, % General Fund 2012 $ 114, % Revenue 2013 $ 111, % 0.12% 2014 $ 110, % 2015 $ 108, % 2016 $ 111, % 2017 $ 109, % $ 110, % PEG Fees are used to enhance KATV services. 19

24 $5,000,000 Building Permit Fees $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500, Depends based on valuation of construction covered by permit To pay for the administration of the City's system of permitting for new residential, commercial, and industrial construction for new and existing structures within the City City of Arvada Arvada Code Fees collected are to offset costs incurred by the City While recognizing that building activity will likely remain highly elevated in the years to come, 2016 figures presume a base level of construction activity consistent with past years 2007 $ 1,300, % 2008 $ 1,389, % 2009 $ 2,639, % Percentage 2010 $ 1,908, % of total $ 1,460, % General Fund 2012 $ 1,892, % Revenue 2013 $ 2,183, % 5.24% 2014 $ 3,451, % 2015 $ 3,907, % 2016 $ 4,754, % 2017 $ 2,183, % $ 2,231, % The budget represents a base number that we can count upon through a ten-year model. 20

25 $600,000 Public Improvement Fees $500,000 $400,000 $300,000 $200,000 $100, Varies To pay for the administration of the City's system of permitting for improvements and other work within public rights-of-way City of Arvada Arvada Code et seq. Fees collected are to offset costs incurred by the City While recognizing that building activity will likely remain highly elevated in the years to come, 2016 figures presume a base level of construction activity consistent with past years 2007 $ 321, % 2008 $ 71, % 2009 $ 57, % Percentage 2010 $ 79, % of total $ 157, % General Fund 2012 $ 231, % Revenue 2013 $ 357, % 0.44% 2014 $ 489, % 2015 $ 444, % 2016 $ 396, % 2017 $ 200, % $ 150, % This revenue is closely tied to new residential development construction activity. The budget represents a base number that we can count upon through a ten-year model. 21

26 $70,000 Development Plan Inspection Fees $60,000 $50,000 $40,000 $30,000 $20,000 $10, Varies Fee charged by the Department of Community Development for the review of development plans City of Arvada Arvada Code Fees collected are to offset costs incurred by the City While recognizing that relevant City growth will likely remain highly elevated in the years to come, 2016 figures presume a base level of activity consistent with past years 2007 $ 4, % 2008 $ 5, % 2009 $ 4, % Percentage 2010 $ 7, % of total $ 8, % General Fund 2012 $ 16, % Revenue 2013 $ 27, % 0.07% 2014 $ 30, % 2015 $ 50, % 2016 $ 60, % 2017 $ 4, % $ 4, % 22

27 $800,000 Building Plan Review Fees $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100, Varies based on valuation of permit To pay for the administration of Building Inspection's system of plan review City of Arvada Arvada Code Fees collected are to offset costs incurred by the City While recognizing that building activity will likely remain highly elevated in the years to come, 2016 figures presume a base level of construction activity consistent with past years 2007 $ 279, % 2008 $ 255, % 2009 $ 161, % Percentage 2010 $ 241, % of total $ 187, % General Fund 2012 $ 306, % Revenue 2013 $ 317, % 0.80% 2014 $ 499, % 2015 $ 634, % 2016 $ 726, % 2017 $ 229, % $ 229, % The budget represents a base number that we can count upon through a ten-year model. 23

28 $180,000 Zoning & Subdivision Fees $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20, Varies Fees for services relevant to the Land Development Code and the Planning Commission, including plans for new developments, annexations, requests for zoning changes, etc. City of Arvada Arvada Code Fees collected are to offset costs incurred by the City While recognizing that relevant City growth will likely remain highly elevated in the years to come, 2016 figures presume a base level of activity consistent with past years 2007 $ 89, % 2008 $ 88, % 2009 $ 87, % Percentage 2010 $ 58, % of total $ 150, % General Fund 2012 $ 157, % Revenue 2013 $ 150, % 0.15% 2014 $ 144, % 2015 $ 119, % 2016 $ 136, % 2017 $ 50, % $ 50, % The budget represents a base number that we can count upon through a ten-year model. 24

29 $1,800,000 Court Fines & Fees $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200, , 45004, 45005, & Varies Fines and fees for traffic, parking, and other citations issued by the Arvada Police Department and adjudicated in the Arvada Municipal Court City of Arvada Arvada Code 58-1 None Based on continued growth consistent with past receipts 2007 $ 910, % 2008 $ 1,032, % 2009 $ 1,257, % Percentage 2010 $ 1,092, % of total $ 905, % General Fund 2012 $ 1,242, % Revenue 2013 $ 1,279, % 1.53% 2014 $ 1,220, % 2015 $ 1,462, % 2016 $ 1,391, % 2017 $ 1,565, % $ 1,585, % A substantial majority of Court fines and fees are generated from City traffic enforcement adjudications. As the volume of enforcement actions fluxuates, so too do fine and fee revenues. 25

30 $500,000 Court Costs $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50, Based on schedule of costs maintained by the court, but not exceeding $ Assessments made by the court against persons for various infractions, including conviction, contempt of court, failure to appear in court City of Arvada Arvada Code Fees collected are to offset costs incurred by the City Based on continued growth consistent with past receipts 2007 $ 314, % 2008 $ 345, % 2009 $ 375, % Percentage 2010 $ 465, % of total $ 355, % General Fund 2012 $ 438, % Revenue 2013 $ 430, % 0.38% 2014 $ 389, % 2015 $ 383, % 2016 $ 341, % 2017 $ 448, % $ 452, % As with Court fine and fees, substantial majority of Court costs are generated from City traffic enforcement adjudications. As the volume of enforcement actions fluctuates, so too do fine and fee revenues. 26

31 $250,000 Professional & Occupational Licenses $200,000 $150,000 $100,000 $50, $50 - $200/year Fees charged for the annual licensing of private contractors who perform either construction or demolition work or services in the City City of Arvada Arvada Code et seq. Fees collected are to offset costs incurred by the City Based on continuingly stable receipts consistent with recent history 2007 $ 140, % 2008 $ 150, % 2009 $ 180, % Percentage 2010 $ 181, % of total $ 159, % General Fund 2012 $ 163, % Revenue 2013 $ 177, % 0.22% 2014 $ 185, % 2015 $ 181, % 2016 $ 198, % 2017 $ 175, % $ 175, % This revenue tends to rise and fall with building activity. 27

32 $500,000 Miscellaneous Motor Vehicle Licenses $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50, $1.50 to $2.50 per vehicle From among the various components of vehicle registration fees, the City receives a fixed dollar amount per annual motor vehicle registration ($1.50 in most cases) Jefferson and Adams Counties CRS For the construction and maintenance of highways, roads, and streets located within Arvada's boundaries Based on continuingly stable receipts consistent with recent history 2007 $ 378, % 2008 $ 381, % 2009 $ 384, % Percentage 2010 $ 387, % of total $ 388, % General Fund 2012 $ 401, % Revenue 2013 $ 408, % 0.49% 2014 $ 422, % 2015 $ 430, % 2016 $ 445, % 2017 $ 428, % $ 432, % Miscellaneous motor vehicle license receipts provide a rough estimate for the number of vehicles registered in the City. 28

33 $300,000 Passport Fees $250,000 $200,000 $150,000 $100,000 $50, $25 - Execution Fee per application; $10 - Passport Photo Fee A majority of total fees are remitted to the US State Department, but the City receives a $25 per application execution fee and a $10 passport photo fee (if taken) City of Arvada Arvada Code et seq. [provision for admin fees in general] Fees collected are to offset costs incurred by the City Conservatively presumes a leveling off of receipts from substantial jumps in recent years 2007 $ 67, % 2008 $ 53, % 2009 $ 61, % Percentage 2010 $ 51, % of total $ 41, % General Fund 2012 $ 46, % Revenue 2013 $ 61, % 0.22% 2014 $ 73, % 2015 $ 116, % 2016 $ 199, % 2017 $ 221, % $ 258, % Local post offices have been providing less and less availability for passport services in recent years, leading to a substantial spike in demand for City passport services. 29

34 $4,500,000 Interfund Transfers $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500, ## & 471## N/A Transfers made by other City Funds to the General Fund for various purposes, primarily to pay for the use of City facilities and to cover costs related to internal service providers, such as the Departments of Finance and Human Resources. City of Arvada Annually-adopted City budgets Transfers from enterprise and special revenue funds must be related to expenditures that could have originated in said fund(s) Levels are periodically reviewed to confirm that the amounts "charged" to other Funds are reasonably related to the costs their respective expenses incurred by the General Fund 2007 $ 3,233, % 2008 $ 3,448, % 2009 $ 3,876, % Percentage 2010 $ 3,556, % of total $ 3,817, % General Fund 2012 $ 3,263, % Revenue 2013 $ 3,334, % 3.91% 2014 $ 3,695, % 2015 $ 3,605, % 2016 $ 3,551, % 2017 $ 3,755, % $ 3,868, % These figures exclude transfers related to either the Arvada Center, which is no longer a part of the City, and the Arvada Urban Renewal Authority. A majority of the total transfers come from the Water Fund. 30

35 $1,200,000 Investment Interest $1,000,000 $800,000 $600,000 $400,000 $200, , 46102, & Market Rates Interest received on investments made by the City within the confines of the City's Investment Policy, with the priorities (in order) of safety, liquidity, and yield City of Arvada Arvada Code et seq. None Presumes a continued low interest rate investment market and AURA's payoff of a note in the near-term for with the City was paid interest 2007 $ 1,001, % 2008 $ 1,108, % 2009 $ 502, % Percentage 2010 $ 436, % of total $ 342, % General Fund 2012 $ 272, % Revenue 2013 $ 234, % 0.72% 2014 $ 355, % 2015 $ 437, % 2016 $ 655, % 2017 $ 625, % $ 653, % The collapse of interest rates in the wake of the 2008 financial crisis has taken a serious toll on the City's investment returns. Increases in short-term rates will help moving forward. 31

36 $500,000 Penalties/Interest/Adjustments $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50, Varies Per municipal ordinance, ten percent penalty is assessed on delinquent sales and use tax payments along with a one percent interest amount per month outstanding. City of Arvada Arvada Code et seq. None Based on continuingly stable receipts consistent with recent history 2007 $ 168, % 2008 $ 103, % 2009 $ 209, % Percentage 2010 $ 433, % of total $ 77, % General Fund 2012 $ 116, % Revenue 2013 $ 143, % 0.15% 2014 $ 131, % 2015 $ 116, % 2016 $ 137, % 2017 $ 80, % $ 80, % 32

37 $1,200,000 Audit Revenue (General Fund) $1,000,000 $800,000 $600,000 $400,000 $200, N/A Per municipal ordinance, an enforcement officer may conduct an audit of taxpayer records in order to verify accurate calculation and remittance of City taxes City of Arvada Arvada Code None Based on continuingly stable receipts consistent with recent history 2007 N/A N/A 2008 N/A N/A 2009 $ 600,947 N/A Percentage 2010 $ 964, % of total $ 235, % General Fund 2012 $ 155, % Revenue 2013 $ 140, % 0.28% 2014 $ 149, % 2015 $ 197, % 2016 $ 255, % 2017 $ 150, % $ 150, % The City did not begin to record audit revenue separately from sales tax until

38 $180,000 50/50 Concrete Replacement Program $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20, % of cost ascribed to participating property Except where public streets are scheduled to undergo major capital maintenance within two years, curb, gutter and sidewalk shall be maintained on a 50/50 cost sharing basis whereby the property owner shall pay one-half of the reasonable cost to replace or repair existing curb, gutter and sidewalk and the city shall pay the other half City of Arvada Arvada Code Only for offsetting City expenditures for concrete replacement Based on continuingly stable receipts consistent with recent history 2007 $ 138, % 2008 $ 79, % 2009 $ 105, % Percentage 2010 $ 118, % of total $ 151, % General Fund 2012 $ 106, % Revenue 2013 $ 136, % 0.17% 2014 $ 128, % 2015 $ 127, % 2016 $ 153, % 2017 $ 120, % $ 120, % 34

39 $1,200,000 Miscellaneous Recovered Costs $1,000,000 $800,000 $600,000 $400,000 $200, , 46201, 46450, 46501, 46502, 46503, 46505, 46506, & Varies Sources widely vary, including annual payments from AURA to cover the City's payments to Wheat Ridge per the agreement on Kipling Ridge, payments for copies of police reports, rebates from Xcel Energy for solar power, the City's annual rebate from JPMorgan for P-card usage, and lease payments for cellular towers on City property City of Arvada Various Generally none Based on continuingly stable receipts consistent with recent history 2007 $ 432, % 2008 $ 583, % 2009 $ 707, % Percentage 2010 $ 639, % of total $ 305, % General Fund 2012 $ 735, % Revenue 2013 $ 788, % 1.13% 2014 $ 779, % 2015 $ 757, % 2016 $ 1,025, % 2017 $ 778, % $ 773, % These figures exclude in-kind book entries for General Fund support of the Arvada Center. 35

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41 POLICE TAX INCREMENT FUNDS Unlike the General Fund, revenue for the City s two Police Tax Increment Funds is almost exclusively in the form of sales and use taxes. In 1993, the electorate of the City approved a 0.21% increase to the City s sales and use tax rate of 3.00%, with all proceeds from that increment of the total sales and use tax rate dedicated to expanding police services. In 2005, voters approved an additional increase, this time 0.25%, to further expand the Arvada Police Department. With the addition of this second tax increment dedicated to public safety, Arvada reached its current sales and use tax rate of 3.46% on January 1, % % % The current tax bases for the Tax Increment Funds and the General Fund are nearly identical, in that any transaction eligible for City taxation is assessed 3.00% for the benefit of the General Fund, 0.21% for the benefit of the first Police Tax Increment Fund, and 0.25% for the benefit of the second Police Tax Increment Fund. However, the term and location of urban renewal areas does affect whether revenue collected from transactions within those areas will be collected by any of the three relevant City funds or by the Arvada Urban Renewal Authority. The breakout of revenue sources for the Tax Increment Funds in 2016 was as follows: 37

42 $9,000,000 Sales Tax (PD Tax Increments) $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000, & PD TI.21: 0.21%; PD TI.25: 0.25% A tax on all sales and services taxable in the City of Arvada, save for several enumerated exceptions, at a rate set by the City of Arvada and approved by election; the City's second Police Sales Tax Increment went into effect on 1/1/2006, and an Arvada Urban Renewal Area expired on June 30, 2006 City of Arvada Arvada Code et seq. Solely for police purposes as approved by election for each Based on year-to-date figures for 2015 and continued growth consistent with past receipts for $ 5,435, % 2008 $ 5,510, % 2009 $ 5,303, % 2010 $ 5,332, % 2011 $ 5,627, % 2012 $ 5,960, % 2013 $ 6,303, % 2014 $ 6,770, % 2015 $ 7,197, % 2016 $ 7,531, % 2017 $ 7,985, % $ 8,340, % Due to setups with urban renewal areas, the police tax increments have a larger base than the General Fund. Adding to that base was the opening of a Walmart in the Ralston Fields Urban Renewal Area in August of

43 $1,200,000 Auto Use Tax (PD Tax Increments) $1,000,000 $800,000 $600,000 $400,000 $200, & PD TI.21: 0.21%; PD TI.25: 0.25% A tax on all motor vehicles registered within the boundaries of the City of Arvada immediately subsequent to their sale, at a rate set by the City of Arvada Jefferson and Adams Counties Arvada Code et seq. Solely for police purposes as approved by election for each With several years of incredible growth since 2009, projections presume a "breather"; this runs consistent with presumptions for Specific Ownership Tax receipts 2007 $ 723, % 2008 $ 659, % 2009 $ 602, % 2010 $ 612, % 2011 $ 665, % 2012 $ 735, % 2013 $ 826, % 2014 $ 917, % 2015 $ 1,069, % 2016 $ 1,098, % 2017 $ 1,127, % $ 1,070, % Taxes are paid to the jurisdictions in which a motor vehicle is registered, not where it is sold. As such, Arvada's lack of a large car dealer is immaterial to the City's collection of these taxes. 39

44 $1,200,000 Building Use Tax (PD Tax Increments) $1,000,000 $800,000 $600,000 $400,000 $200, & Based on the permit valuation - PD TI.21: 0.21%; PD TI.25: 0.25% A tax paid for the issuance of a building permit at a rate set by the City of Arvada in lieu of taxes being assessed on materials used for construction purposes City of Arvada Arvada Code et seq. & Arvada Code et seq. Solely for police purposes as approved by election for each While recognizing that building activity will likely remain highly elevated in the years to come, 2016 figures presume a base level of construction activity consistent with past years 2007 $ 251, % 2008 $ 234, % 2009 $ 313, % 2010 $ 267, % 2011 $ 272, % 2012 $ 365, % 2013 $ 442, % 2014 $ 679, % 2015 $ 799, % 2016 $ 1,042, % 2017 $ 371, % $ 372, % The budget represents a base number that the City can rely upon through a ten-year model. 40

45 $300,000 General Use Tax (PD Tax Increments) $250,000 $200,000 $150,000 $100,000 $50, & PD TI.21: 0.21%; PD TI.25: 0.25% A tax paid by a consumer for using, storing, distributing or otherwise consuming tangible personal property or taxable services within the boundaries of the City of Arvada at a rate set by the City of Arvada City of Arvada Arvada Code et seq. Solely for police purposes as approved by election for each Based on continued growth consistent with past receipts 2007 $ 172, % 2008 $ 225, % 2009 $ 196, % 2010 $ 210, % 2011 $ 231, % 2012 $ 187, % 2013 $ 238, % 2014 $ 235, % 2015 $ 245, % 2016 $ 201, % 2017 $ 250, % $ 255, % General use tax receipts have a long history of volatility, due primarily to large percentages of total receipts being paid by a few large firms whose relevant activity fluxuates year to year. 41

46 $160,000 Audit Revenue (PD Tax Increments) $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20, & N/A Per municipal ordinance, an enforcement officer may conduct an audit of taxpayer records in order to verify accurate calculation and remittance of City taxes City of Arvada Arvada Code Solely for police purposes as approved by election for each Based on continuingly stable receipts consistent with recent history 2007 N/A N/A 2008 N/A N/A 2009 $ 92,145 N/A 2010 $ 147, % 2011 $ 36, % 2012 $ 23, % 2013 $ 21, % 2014 $ 22, % 2015 $ 12, % 2016 $ 39, % 2017 $ 22, % $ 22, % The City did not begin to record audit revenue separately from sales tax until

47 OTHER MAJOR GOVERNMENTAL REVENUES The City has four additional ongoing intergovernmental revenue streams that fund various City operations outside of the General Fund. Conservation Trust Fund Arvada s quarterly share of proceeds from the Colorado Lottery, which the City primarily uses on capital projects for park and recreation amenities Jefferson County Open Space Sales Tax Arvada s monthly share of Jefferson County Open Space revenue, which the City has been using solely for Parks Maintenance operations since 2008 Adams County Transportation Sales Tax a monthly share from Adams County for use on road and bridge projects Adams County Open Space Sales Tax a biannual distribution of Open Space Sales Tax revenue from Adams County 43

48 $700,000 Conservation Trust Fund $600,000 $500,000 $400,000 $300,000 $200,000 $100, Dependent on Colorado Lottery sales; shares distributed on per capita basis Forty percent of Lottery revenues collected are distributed among eligible local jurisdictions, with each jurisdiction's share determined by a formula that is generally dependent upon population Colorado Department of Local Affairs Colorado Constitution Article 27, 3 and CRS et seq. For the acquisition, development, and maintenance of new conservation sites or for capital improvements or maintenance for recreational purposes on any public site Based on continued growth consistent with past receipts 2007 $ 539, % 2008 $ 543, % 2009 $ 508, % 2010 $ 479, % 2011 $ 491, % 2012 $ 538, % 2013 $ 587, % 2014 $ 530, % 2015 $ 539, % 2016 $ 633, % 2017 $ 561, % $ 566, % The spike in revenue for 2016 was primarily due to a Powerball jackpot reaching $1.58 billion on January 13th of that year. Ticket sales for that single draw exceeded the total for the whole of the fourth quarter of

49 $5,000,000 Jefferson County Open Space Sales Tax $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500, % Sales Tax (City gets 50% of what was collected in the City) A tax on all sales and services taxable in Jefferson County and first approved by election in 1972 and effective in 1973 Jefferson County Jefferson County Ordinances "expended only for...acquiring, maintaining, administering, and preserving open space and construction, acquiring and maintaining park and recreational capital improvements..." Based on continued growth consistent with past receipts 2007 $ 3,010, % 2008 $ 3,042, % 2009 $ 3,018, % 2010 $ 3,119, % 2011 $ 3,142, % 2012 $ 3,312, % 2013 $ 3,537, % 2014 $ 3,685, % 2015 $ 3,978, % 2016 $ 4,202, % 2017 $ 4,322, % $ 4,409, % In 2007, the City began using all of its JeffCo Open Space revenue share for ongoing park operations and maintenance. 45

50 $180,000 Adams County Transportation Sales Tax $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20, % Sales Tax (City gets 40% of what was collected in the City) A tax on all tangible personal property and services taxable with several enumerated exemptions Adams County Adams County Resolution [voter approved] "For improvements to or the building of road and bridge projects" within the City Based on continuingly stable receipts consistent with recent history 2007 $ 164, % 2008 $ 167, % 2009 $ 73, % 2010 $ 66, % 2011 $ 62, % 2012 $ 112, % 2013 $ 80, % 2014 $ 73, % 2015 $ 88, % 2016 $ 101, % 2017 $ 67, % $ 69, % A change in the municipal share due to Arvada caused the substantial drop beginning in

51 $45,000 Adams County Open Space Sales Tax $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5, % Sales Tax (City gets 30% of what is collected in the City) A tax on all sales of tangible personal property at retail or the furnishing of services in the County Adams County Adams County Resolutions 99-1 & (voter approved) "To preserve open space...and for creating, improving and maintaining parks and recreation facilities" in Adams County Based on continuingly stable receipts consistent with recent history 2007 $ 21, % 2008 $ 24, % 2009 $ 26, % 2010 $ 24, % 2011 $ 24, % 2012 $ 25, % 2013 $ 40, % 2014 $ 28, % 2015 $ 28, % 2016 $ 35, % 2017 $ 28, % $ 28, % 47

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54 Special thanks to the following Finance Department employees for their work on compiling information for this manual, and to the great number of dedicated City of Arvada employees who work every day to ensure the financial health and well-being of the City. Bryan Archer, Director of Finance Lisa Yagi, Assistant Director of Finance Ryan Adler, Analyst Ezequiel Vasquez, Revenue Manager Arlene Martinez, Executive Assistant 8101 Ralston Road Arvada, CO 80002