City of Arvada December 2020 Revenue Manual

Revenue Manual December 2020

CITY OF ARVADA REVENUE MANUAL DECEMBER 2020

Table of Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 General Fund Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Sales Tax (General Fund) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Auto Use Tax (General Fund) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Property Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Highway Users Trust Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Building Use Tax (General Fund) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 General Use Tax (General Fund) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Specific Ownership Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Admissions Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Road & Bridge Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Cigarette Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Lodging Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Severance Tax & Federal Mineral Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Franchise Fees – Power and Natural Gas Utility Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Franchise Fees – Telephone Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Franchise Fees – Cable Television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Peg Cable Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Building Permit Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Public Improvement Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Development Plan Inspection Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Building Plan Review Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Zoning & Subdivision Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Court Fines & Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Court Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Miscellaneous Motor Vehicle Licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Passport Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Interfund Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Investment Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Penalties/Interest/Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Audit Revenue (General Fund) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 50/50 Concrete Replacement Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Miscellaneous Recovered Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Police Tax Increment Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Sales Tax (PD Tax Increments) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Auto Use Tax (PD Tax Increments) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 3

CITY OF ARVADA REVENUE MANUAL DECEMBER 2020 Building Use Tax (PD Tax Increments) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 General Use Tax (PD Tax Increments) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Audit Revenue (PD Tax Increments) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Other Major Governmental Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Conservation Trust Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Jefferson County Open Space Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adams County Transportation Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Adams County Open Space Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

44 45 46 47 48

INTRODUCTION The Department of Finance is pleased to present the 2020 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 (2021 & 2022) Associated account numbers in the City’s financial 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

5

GENERAL FUND REVENUES A vast majority of Arvada’s governmental revenues come in one of three types: 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 Community and Economic Development Work System for some of its work related to the Planning Commission, new developments and annexations.

Intergovernmental revenues 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. In 2020, a large portion of Intergovernmental revenues was the City’s allocation of the Corona Virus Aid, Relief and Economic Security (CARES) Act funding. The breakout of revenue sources for the General Fund in 2020 was as follows:

General Fund Revenues

Interfund Transfers 3% Fines and Fees 1% Services and Charges 1% Miscellaneous 7%

General Property Tax 7% Other Taxes 1%

Intergovernmental Revenues 13% Building Permits 2%

Franchise Fees 4% Sales and Use Tax 49% Auto Use Tax 8%

Building Use Tax 4%

6

Sales Tax (General Fund)

Revenue: $70,000,000 $60,000,000 $50,000,000 $40,000,000

Graphic

$30,000,000 $20,000,000 $10,000,000 $-

Oracle Account(s): Description: Collecting Entity: Special Use Restrictions: Budget Rationale: History Percentage of total 2020 General Fund Revenue 50.50%

2011

2012

2013

2014

2015

01.500010.41301 & 26.1001.41301

2016

2017

Current Rate:

2018

2019

2020

2021 (R)

2022 (B)

3.00%

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

Enabling Legislation:

Arvada Code §98-61 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 §98-101 Based on year-to-date figures for 2018 and continued growth consistent with past receipts for 2019

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 35,852,374 37,954,667 40,205,021 43,211,511 45,902,693 48,111,672 50,986,424 51,651,504 52,950,067 57,767,640 63,845,566 63,845,566

YoY % 3.1% 5.9% 5.9% 7.5% 6.2% 4.8% 6.0% 1.3% 2.5% 9.1% 10.5% 0.0% 7

NOTES: The electors of Arvada approved the City's first sales tax (1.0%) in 1969.

The increase in sales tax in 2020 and 2021 are due to increased grocery and wholesale store sales from COVID-19 and internet retailers that started remitted sales tax in October 2020.

Auto Use Tax (General Fund)

Revenue: $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000

Graphic

$4,000,000 $3,000,000 $2,000,000 $1,000,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.41304

2016

Current Rate:

History Percentage of total 2020 General Fund Revenue 7.48%

2018

2019

2020

2021 (R)

2022 (B)

3.00%

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

Enabling Legislation:

Special Use Restrictions: Budget Rationale:

2017

Arvada Code §98-61 et seq.

None With several years of incredible growth since 2010, projections presume a "breather"; this runs consistent with presumptions for Specific Ownership Tax receipts

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 4,340,794 4,804,227 5,379,579 5,982,520 6,973,209 7,162,405 8,540,345 8,022,545 8,129,398 8,553,249 8,809,846 8,986,043

YoY % 9.0% 10.7% 12.0% 11.2% 16.6% 2.7% 19.2% -6.1% 1.3% 5.2% 3.0% 2.0% 8

NOTES: 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. This is a very volatile and cyclical revenue that needs to be monitored carefully.

Revenue:

Property Tax

$9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000

Graphic

$3,000,000 $2,000,000 $1,000,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.41101

2016

Current Rate:

History Percentage of total 2020 General Fund Revenue 6.55%

2018

2019

2020

2021 (R)

2022 (B)

4.31 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

Enabling Legislation:

Special Use Restrictions: Budget Rationale:

2017

CRS 39-10-101 et seq.

None

Presumes increase based on preliminary valuations for 2019 tax year (paid in 2020)

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 4,643,015 4,500,376 4,556,940 4,600,994 4,668,082 5,583,065 5,654,004 6,568,030 6,583,728 7,495,926 7,570,884 7,949,428

YoY % 0.1% -3.1% 1.3% 1.0% 1.5% 19.6% 1.3% 16.2% 0.2% 13.9% 1.0% 5.0% 9

NOTES: Arvada has one of the lowest mill levies in the Denver Metro region, at 4.31 mills. Arvada's mill levy last changed in 1993.

Revenue:

Highway Users Trust Fund

$6,000,000

$5,000,000

$4,000,000

$3,000,000 Graphic $2,000,000

$1,000,000

$-

Oracle Account(s): Description: Collecting Entity: Special Use Restrictions: Budget Rationale: History Percentage of total 2020 General Fund Revenue 3.30%

2011

2012

2013

2014

2015

01.500010.43301

2016

2017

Current Rate:

2018

2019

2020

2021 (R)

2022 (B)

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

Enabling Legislation:

CRS 43-4-201 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 growth consistent with past receipts, pull back in 2020 due to alternative forms of transportation and roughly consistent with State Legislative Council

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 3,809,048 3,818,142 3,847,443 3,937,402 4,077,593 4,101,534 4,182,792 5,203,928 5,162,259 3,771,784 3,731,334 3,208,310

YoY % 0.5% 0.2% 0.8% 2.3% 3.6% 0.6% 2.0% 24.4% -0.8% -26.9% -1.1% -14.0% 10

NOTES: 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.

Revenues in 2018 and 2019 include a one-time additional allocation of approximately $1,000,000.

Revenue:

Building Use Tax (General Fund)

$8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 Graphic $3,000,000 $2,000,000 $1,000,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.41305

2016

Current Rate:

History Percentage of total 2020 General Fund Revenue 3.30%

2018

2019

2020

2021 (R)

2022 (B)

3.00% 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

Enabling Legislation:

City of Arvada

Special Use Restrictions: Budget Rationale:

2017

Arvada Code §98-61 et seq. & Arvada Code §98-84 et seq.

None 2018 saw building activity starting to slow down from tremendous growth 2012-2016. 2020 figures presume a base level of construction activity consistent with past years.

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 1,780,442 2,385,633 2,884,866 4,431,197 5,215,500 6,799,066 7,007,552 4,088,461 3,329,604 3,776,347 3,113,180 3,206,575

YoY % 2.8% 34.0% 20.9% 53.6% 17.7% 30.4% 3.1% -41.7% -18.6% 13.4% -17.6% 3.0% 11

NOTES: The 2020-2021 budget represents a base number that the City can rely upon through a ten-year model.

Revenue:

General Use Tax (General Fund)

$2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 Graphic

$800,000 $600,000 $400,000 $200,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.41303

2016

0.72%

2019

2020

2021 (R)

2022 (B)

3.00%

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

Enabling Legislation:

City of Arvada

Arvada Code §98-61 et seq.

None

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2018

Current Rate:

Special Use Restrictions:

History

2017

Based on continued growth consistent with past receipts

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 1,511,848 1,220,977 1,554,343 1,533,818 1,598,995 1,312,887 1,811,571 1,462,398 1,087,183 829,053 911,958 1,048,752

YoY % 10.0% -19.2% 27.3% -1.3% 4.2% -17.9% 38.0% -19.3% -25.7% -23.7% 10.0% 15.0% 12

NOTES: 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 fluctuates year to year.

Revenue:

Specific Ownership Tax

$700,000 $600,000 $500,000 $400,000 Graphic

$300,000 $200,000 $100,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.41201

2016

Current Rate:

History Percentage of total 2020 General Fund Revenue 0.53%

2018

2019

2020 2021 (R)2022 (B)

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

Enabling Legislation:

Special Use Restrictions: Budget Rationale:

2017

CRS 42-3-107

None With substantial growth since 2011, projections presume a "breather"; this runs consistent with presumptions for Auto Use Tax receipts

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 310,268 328,784 349,999 375,638 405,439 472,959 580,696 647,330 599,811 604,374 495,000 504,900

YoY % -4.0% 6.0% 6.5% 7.3% 7.9% 16.7% 22.8% 11.5% -7.3% 0.8% -18.1% 2.0% 13

NOTES: 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.

Revenue:

Admissions Tax

$350,000 $300,000 $250,000 $200,000 Graphic

$150,000 $100,000 $50,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.41501

2016

0.07%

2019

2020 2021 (R)2022 (B)

4.00%

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

Enabling Legislation:

City of Arvada

Arvada Code §98-311 et seq.

None

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2018

Current Rate:

Special Use Restrictions:

History

2017

Based on continued growth consistent with past receipts

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 156,731 182,911 185,397 162,895 145,939 166,832 137,058 235,386 312,447 83,030 182,781 242,326

YoY % 0.4% 16.7% 1.4% -12.1% -10.4% 14.3% -17.8% 71.7% 32.7% -73.4% 120.1% 32.6% 14

NOTES: Movie theaters are a significant source of this revenue.

Revenue:

Road & Bridge Tax

$1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 Graphic

$400,000 $300,000 $200,000 $100,000 $-

Oracle Account(s): Description: Collecting Entity: Special Use Restrictions: Budget Rationale: History Percentage of total 2020 General Fund Revenue 0.82%

2011

2012

2013

2014

2015

01.500010.43501

2016

2017

Current Rate:

2018

2019

2020

2021 (R)

2022 (B)

Jefferson County: 1.3480 Mills; Adams County: 1.3000 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

Enabling Legislation:

CRS 43-2-202

For the construction and maintenance of roads and streets located within Arvada's boundaries Substantial increase saw in 2016 and 2018, 2020 based on previous year experience, counties may change their Road & Bridge levies at their own discretion

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 776,092 855,684 718,844 730,239 734,993 799,693 870,641 904,281 904,962 934,041 769,218 817,507

YoY % -20.0% 10.3% -16.0% 1.6% 0.7% 8.8% 8.9% 3.9% 0.1% 3.2% -17.6% 6.3% 15

NOTES:

Revenue:

Cigarette Tax

$200,000 $180,000 $160,000 $140,000 $120,000 $100,000

Graphic

$80,000 $60,000 $40,000 $20,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.41401

Colorado Department of Revenue

0.16%

2018

2019

Current Rate:

2020 2021 (R)2022 (B)

$0.042 per cigarette

Enabling Legislation:

CRS 39-28-101 et seq.

None on Arvada's share

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2017

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

Special Use Restrictions:

History

2016

Assumes stabilized level of revenue consistent with recent years

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 172,703 167,760 163,285 163,313 164,432 170,934 156,352 156,500 143,879 185,881 143,000 141,570

YoY % -1.5% -2.9% -2.7% 0.0% 0.7% 4.0% -8.5% 0.1% -8.1% 29.2% -23.1% -1.0% 16

NOTES:

Lodging Tax

Revenue: $30,000

$25,000

$20,000

$15,000

Graphic

$10,000

$5,000

$-

2011

Oracle Account(s): Description: Collecting Entity:

2012

2013

2014

2015

01.500010.41601

2016

0.01%

2019

2020 2021 (R)2022 (B)

2.00%

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)

Enabling Legislation:

City of Arvada

Arvada Code §98-241 et seq.

None

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2018

Current Rate:

Special Use Restrictions:

History

2017

Assumes stabilized level of revenue consistent with recent years

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 17,104 14,525 17,316 20,839 22,511 24,315 24,121 21,654 22,417 15,142 25,469 25,978

YoY % 17.9% -15.1% 19.2% 20.3% 8.0% 8.0% -0.8% -10.2% 3.5% -32.5% 68.2% 2.0% 17

NOTES: A new hotel opened in 2017.

However, lodging taxes collected by this hotel will end up with the Arvada Urban Renewal Authority and not the General Fund.

Revenue:

Severance Tax & Federal Mineral Lease

$180,000 $160,000 $140,000 $120,000 $100,000 $80,000

Graphic

$60,000 $40,000 $20,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.43650

2016

Current Rate:

History Percentage of total 2020 General Fund Revenue 0.07%

2018

2019

2020 2021 (R)2022 (B)

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

Enabling Legislation:

Special Use Restrictions: Budget Rationale:

2017

CRS 39-29-101 et seq. and CRS 34-63-101 et seq.

None

Set conservatively low due to downward volatility in relevant commodity prices over the past year

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 62,465 89,146 96,875 164,698 157,559 82,196 61,157 70,578 114,071 76,305 10,000 10,000

YoY % 27.3% 42.7% 8.7% 70.0% -4.3% -47.8% -25.6% 15.4% 61.6% -33.1% -86.9% 0.0% 18

NOTES: Fluctuations with these receipts are closely correlated with volatility in commodity prices, such as oil and natural gas.

Revenue:

Franchise Fees - Power and Natural Gas Utility Service

$3,500,000 $3,000,000 $2,500,000 $2,000,000 Graphic

$1,500,000 $1,000,000 $500,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.41801

2016

Current Rate:

Enabling Legislation:

City of Arvada

2.52%

2019

2020

2021 (R)

2022 (B)

3.00% on all gross revenues for franchisee

Ord. 4120 (Public Service Company) and Ord. 4166 (United Power)

None

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2018

A fee collected by the franchisee in partial consideration for the use of City of Arvada streets, rights-of-way, and other infrastructure

Special Use Restrictions:

History

2017

Based on continued growth consistent with past receipts

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 2,940,189 2,754,684 2,998,649 3,062,743 2,867,854 2,752,168 2,808,878 2,863,130 2,953,883 2,877,140 3,020,997 2,930,367

YoY % -0.6% -6.3% 8.9% 2.1% -6.4% -4.0% 2.1% 1.9% 3.2% -2.6% 5.0% -3.0% 19

NOTES: Franchise fee revenues are heavily suceptible to both the weather and commodity prices.

Revenue:

Franchise Fees - Telephone Service

$250,000

$200,000

$150,000 Graphic $100,000

$50,000

$-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.41802

2016

Current Rate:

Enabling Legislation:

City of Arvada

0.14%

2019

2020 2021 (R)2022 (B)

$0.455 per line each month

Arvada Code §98-31 et seq.

None

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2018

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

Special Use Restrictions:

History

2017

Assumes stabilized level of revenue consistent with recent years

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 205,981 197,344 188,876 188,646 199,882 174,941 174,358 162,839 154,409 157,667 147,000 139,650

YoY % -7.8% -4.2% -4.3% -0.1% 6.0% -12.5% -0.3% -6.6% -5.2% 2.1% -6.8% -5.0% 20

NOTES: Revenue has declined over the years as some Arvada residents eliminated their land lines in favor of cellular phones.

Revenue:

Franchise Fees - Cable Television

$1,400,000 $1,200,000 $1,000,000 $800,000 Graphic

$600,000 $400,000 $200,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.41803

2016

Current Rate:

Enabling Legislation:

City of Arvada

1.11%

2019

2020

2021 (R)

2022 (B)

5.00% on gross revenues for franchisee

Comcast: Ordinance 4564 Baja: Ordinance 4432

None

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2018

A fee collected by the franchisee in partial consideration for the use of City of Arvada streets, rights-of-way, and other infrastructure

Special Use Restrictions:

History

2017

Based on continued growth consistent with past receipts

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 1,021,114 1,080,498 1,120,704 1,147,925 1,173,882 1,265,278 1,304,066 1,285,831 1,256,068 1,265,159 1,233,140 1,199,086

YoY % -0.3% 5.8% 3.7% 2.4% 2.3% 7.8% 3.1% -1.4% -2.3% 0.7% -2.5% -2.8% 21

NOTES: Despite the rise of programming alternatives to cable television, the Arvada market has remained stable.

Revenue:

PEG Cable Fees

$140,000 $120,000 $100,000 $80,000 Graphic

$60,000 $40,000 $20,000 $-

Oracle Account(s): Description: Collecting Entity: Special Use Restrictions:

2011

2012

2013

Percentage of total 2020 General Fund Revenue 0.10%

2015

31.9001.41804

2016

2017

Current Rate:

2018

2019

2020 2021 (R)2022 (B)

$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

Enabling Legislation:

City of Arvada

Franchise Agreements with City

For public, educational, and governmental capital costs for public access television

Budget Rationale: History

2014

Based on continuingly stable receipts consistent with recent history

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 115,764 114,716 111,557 110,425 108,907 111,122 112,288 120,019 120,021 111,863 113,509 108,780

YoY % -4.4% -0.9% -2.8% -1.0% -1.4% 2.0% 1.0% 6.9% 0.0% -6.8% 1.5% -4.2% 22

NOTES: PEG Fees are used to enhance KATV services.

Revenue:

Building Permit Fees

$6,000,000 $5,000,000 $4,000,000 $3,000,000 Graphic $2,000,000 $1,000,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

History Percentage of total 2020 General Fund Revenue 1.96%

2016

2017

Current Rate:

01.732030.42201

2018

2019

2020

2021 (R)

2022 (B)

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

Enabling Legislation:

City of Arvada

Special Use Restrictions: Budget Rationale:

2015

Arvada Code §18-42

Fees collected are to offset costs incurred by the City

The 2020 budget presumes a base level of construction activity consistent with past years

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 1,460,128 1,892,874 2,183,950 3,451,592 3,907,801 4,754,796 4,929,975 2,958,450 2,220,436 2,244,255 2,220,653 2,220,653

YoY % -23.5% 29.6% 15.4% 58.0% 13.2% 21.7% 3.7% -40.0% -24.9% 1.1% -1.1% 0.0% 23

NOTES: The budget represents a base number that the City can count upon through a ten-year model.

Actual revenue may vary from year to year based on the level of building activity.

Revenue:

Public Improvement Fees

$700,000 $600,000 $500,000 $400,000 Graphic

$300,000 $200,000 $100,000 $-

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020 2021 (R)2022 (B)

Oracle Account(s):

01.701012.42202 & 01.701013.42202

Description:

To pay for the administration of the City's system of permitting for improvements and other work within public rights-of-way

Collecting Entity:

Budget Rationale: History Percentage of total 2020 General Fund Revenue 0.40%

Enabling Legislation:

City of Arvada

Special Use Restrictions:

Current Rate:

Varies

Arvada Code §78-291 et seq.

Fees collected are to offset costs incurred by the City

The 2020 budget presumes a base level of construction activity consistent with past years

Year 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ Dollars 57,434 $ 157,680 $ 231,812 $ 357,647 $ 489,022 $ 444,332 $ 396,464 $ 607,962 $ 300,703 $ 291,116 $ 454,247 $ 100,000 $ 100,000

YoY % -20.2% 98.7% 47.0% 54.3% 36.7% -9.1% -10.8% 53.3% -50.5% -3.2% 56.0% -78.0% 0.0% 24

NOTES: This revenue is closely tied to new residential development construction activity. The 20212022 budget represents a base number that the City can count upon through a ten-year model.

Development Plan Inspection Fees

Revenue: $70,000 $60,000 $50,000 $40,000

Graphic

$30,000 $20,000 $10,000 $-

2011

Oracle Account(s): Description: Collecting Entity:

2012

2013

2014

History Percentage of total 2020 General Fund Revenue 0.02%

2016

2017

2018

2019

2020 2021 (R)2022 (B)

Current Rate:

01.905010.42303

Varies

Fee charged by the Work System of Community and Economic Development for the review of development plans

Enabling Legislation:

City of Arvada

Special Use Restrictions: Budget Rationale:

2015

Arvada Code §74-31

Fees collected are to offset costs incurred by the City

The 2020 figures presume a base level of activity consistent with past years

Year 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ Dollars 4,015 $ 8,455 $ 16,675 $ 27,900 $ 30,725 $ 50,325 $ 60,950 $ 55,475 $ 41,200 $ 39,260 $ 22,450 $ 20,000 $ 20,000

YoY % -29.9% 7.3% 97.2% 67.3% 10.1% 63.8% 21.1% -9.0% -25.7% -4.7% -42.8% -10.9% 0.0% 25

NOTES:

Revenue:

Building Plan Review Fees

$800,000 $700,000 $600,000 $500,000 $400,000

Graphic

$300,000 $200,000 $100,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

History Percentage of total 2020 General Fund Revenue 0.35%

2015

2016

2017

Current Rate:

01.904010.44103

2018

2019

2020 2021 (R)2022 (B)

Varies based on valuation of permit

To pay for the administration of Building Inspection's system of plan review

Enabling Legislation:

City of Arvada

Special Use Restrictions: Budget Rationale:

2014

Arvada Code §18-42

Fees collected are to offset costs incurred by the City

The 2020 figures presume a base level of construction activity consistent with past years

Year 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ Dollars 161,972 $ 187,850 $ 306,570 $ 317,851 $ 499,178 $ 634,501 $ 726,143 $ 567,063 $ 355,525 $ 369,980 $ 399,385 $ 300,000 $ 250,000

YoY % -36.5% -22.3% 63.2% 3.7% 57.0% 27.1% 14.4% -21.9% -37.3% 4.1% 7.9% -24.9% -16.7% 26

NOTES: The 2020-2021 budget represents a base number that the City can count upon through a ten-year model.

Revenue:

Zoning & Subdivision Fees

$300,000

$250,000

$200,000

$150,000

Graphic

$100,000

$50,000

$-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

History Percentage of total 2020 General Fund Revenue 0.19%

2015

2016

2017

2018

2019

2020 2021 (R)2022 (B)

Current Rate:

01.905010.44104

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.

Enabling Legislation:

City of Arvada

Special Use Restrictions: Budget Rationale:

2014

Arvada Code §74-31

Fees collected are to offset costs incurred by the City While the City saw tremendous growth after the Great Recession, 2020 figures presume a base level of activity consistent with average buidling activity

Year 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ Dollars 87,517 $ 150,357 $ 157,133 $ 150,165 $ 144,100 $ 119,373 $ 136,822 $ 148,370 $ 112,009 $ 263,864 $ 214,183 $ 75,000 $ 75,000

YoY % -0.9% 157.0% 4.5% -4.4% -4.0% -17.2% 14.6% 8.4% -24.5% 135.6% -18.8% -65.0% 0.0% 27

NOTES: The 2020-2021 budget represents a base number that the City can count upon through a ten-year model.

Revenue:

Court Fines & Fees

$1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000

Graphic

$600,000 $400,000 $200,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.201010.45001, 45004, 45050 & 01.602017.45005

2016

0.66%

2019

2020

2021 (R)

2022 (B)

Varies

Fines and fees for traffic, parking, and other citations issued by the Arvada Police Department and adjudicated in the Arvada Municipal Court

Enabling Legislation:

City of Arvada

Arvada Code §58-1

None

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2018

Current Rate:

Special Use Restrictions:

History

2017

Based on continued growth consistent with past receipts

Year 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ Dollars 1,257,831 $ 905,778 $ 1,242,305 $ 1,279,056 $ 1,220,356 $ 1,462,454 $ 1,391,410 $ 1,564,358 $ 1,256,744 $ 1,010,405 $ 759,150 $ 832,490 $ 786,360

YoY % 21.8% -17.1% 37.2% 3.0% -4.6% 19.8% -4.9% 12.4% -19.7% -19.6% -24.9% 9.7% -5.5% 28

NOTES: A substantial majority of Court fines and fees are generated from City traffic enforcement adjudications. As the volume of enforcement actions fluctuates, so too do fine and fee revenues.

Revenue:

Court Costs

$500,000 $450,000 $400,000 $350,000 $300,000 $250,000 Graphic

$200,000 $150,000 $100,000 $50,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

0.17%

2017

2018

2019

2020 2021 (R)2022 (B)

Based on schedule of costs maintained by the court, but not exceeding $250.00

Assessments made by the court against persons for various infractions, including conviction, contempt of court, failure to appear in court

Enabling Legislation:

City of Arvada

Arvada Code §58-13

Fees collected are to offset costs incurred by the City

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2016

Current Rate:

01.201010.45003

Special Use Restrictions:

History

2015

Based on continued growth consistent with past receipts

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 355,719 438,468 430,810 389,035 383,658 341,030 346,166 288,370 260,132 192,338 186,220 188,434

YoY % -23.6% 23.3% -1.7% -9.7% -1.4% -11.1% 1.5% -16.7% -9.8% -26.1% -3.2% 1.2% 29

NOTES: 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.

Revenue:

Miscellaneous Motor Vehicle Licenses

$500,000 $450,000 $400,000 $350,000 $300,000 $250,000

Graphic

$200,000 $150,000 $100,000 $50,000 $-

Oracle Account(s): Description: Collecting Entity: Special Use Restrictions:

2011

2012

2013

Percentage of total 2020 General Fund Revenue 0.39%

2015

01.500010.42150

2016

2017

Current Rate:

2018

2019

2020 2021 (R)2022 (B)

$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

Enabling Legislation:

CRS 42-3-310

For the construction and maintenance of highways, roads, and streets located within Arvada's boundaries

Budget Rationale: History

2014

Based on continuingly stable receipts consistent with recent history

Year 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ Dollars 384,644 $ 388,830 $ 401,182 $ 408,103 $ 422,767 $ 430,037 $ 445,878 $ 452,921 $ 452,606 $ 461,746 $ 443,943 $ 463,635 $ 468,272

YoY0.7% % 0.4% 3.2% 1.7% 3.6% 1.7% 3.7% 1.6% -0.1% 2.0% -3.9% 4.4% 1.0% 30

NOTES: Miscellaneous motor vehicle license receipts provide a rough estimate for the number of vehicles registered in the City.

Revenue:

Passport Fees

$300,000

$250,000

$200,000

$150,000

Graphic

$100,000

$50,000

$-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

History Percentage of total 2020 General Fund Revenue 0.05%

2015

2016

2017

Current Rate:

01.152013.44107

2018

2019

2020 2021 (R)2022 (B)

$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)

Enabling Legislation:

City of Arvada

Special Use Restrictions: Budget Rationale:

2014

Arvada Code §2-261 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 a substantial increase in 2015

Year 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ Dollars 61,705 $ 41,546 $ 46,839 $ 61,491 $ 73,996 $ 116,386 $ 199,145 $ 237,240 $ 235,690 $ 242,845 $ 62,345 $ $ 60,000

YoY % 16.3% -18.7% 12.7% 31.3% 20.3% 57.3% 71.1% 19.1% -0.7% 3.0% -74.3% -100.0%

31

NOTES: Local post offices provided less availability for passport services in 2015, leading to a substantial spike in demand for City passport services. In 2020, the passport office closed due to COVID-19. It will re-open in 2022.

Revenue:

Interfund Transfers

$4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000

Graphic

$1,500,000 $1,000,000 $500,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.442## & 471##

2016

2017

Current Rate:

2018

2019

2020

2021 (R)

2022 (B)

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.

Enabling Legislation:

City of Arvada

Annually-adopted City budgets

Special Use Restrictions:

Transfers from enterprise and special revenue funds must be related to expenditures that could have originated in said fund(s)

Budget Rationale:

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

History Percentage of total 2020 General Fund Revenue 3.26%

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 3,817,707 3,263,466 3,334,739 3,695,542 3,605,343 3,551,764 3,774,018 3,947,703 3,621,220 3,725,069 4,008,529 4,128,784

YoY % 7.3% -14.5% 2.2% 10.8% -2.4% -1.5% 6.3% 4.6% -8.3% 2.9% 7.6% 3.0% 32

NOTES: 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.

Revenue:

Investment Interest

$1,200,000

$1,000,000

$800,000

$600,000 Graphic $400,000

$200,000

$-

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021 (R)

2022 (B)

Oracle Account(s):

01.500010.46101, 46102, & 46104

Description:

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

Collecting Entity:

Current Rate:

Enabling Legislation:

City of Arvada

Special Use Restrictions: Budget Rationale: History Percentage of total 2020 General Fund Revenue 0.93%

Market Rates

Arvada Code §2-232 et seq.

None Presumes a continued low interest rate investment market and AURA's payoff of a note in the near-term for which the City was paid interest

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 342,513 272,982 234,100 355,259 437,814 655,668 839,298 892,375 1,092,399 1,065,583 899,250 786,750

YoY % -21.5% -20.3% -14.2% 51.8% 23.2% 49.8% 28.0% 6.3% 22.4% -2.5% -15.6% -12.5% 33

NOTES:

Revenue:

Penalties/Interest/Adjustments

$250,000

$200,000

$150,000 Graphic $100,000

$50,000

$-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.41308

2016

0.15%

2019

2020 2021 (R)2022 (B)

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.

Enabling Legislation:

City of Arvada

Arvada Code §98-71 et seq.

None

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2018

Current Rate:

Special Use Restrictions:

History

2017

Based on continuingly stable receipts consistent with recent history

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 77,229 116,838 143,818 131,463 116,997 137,272 84,278 228,126 229,851 170,508 80,000 80,000

YoY % -82.2% 51.3% 23.1% -8.6% -11.0% 17.3% -38.6% 170.7% 0.8% -25.8% -53.1% 0.0% 34

NOTES:

Revenue:

Audit Revenue (General Fund)

$400,000 $350,000 $300,000 $250,000 $200,000

Graphic

$150,000 $100,000 $50,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.41309

2016

0.27%

2019

2020 2021 (R)2022 (B)

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

Enabling Legislation:

City of Arvada

Arvada Code §98-91

None

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2018

Current Rate:

Special Use Restrictions:

History

2017

Based on continuingly stable receipts consistent with recent history

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 235,832 155,530 140,125 149,662 197,938 255,474 (854,260) 35,603 369,862 311,461 150,000 150,000

YoY % -75.6% -34.1% -9.9% 6.8% 32.3% 29.1% -434.4% -104.2% 938.8% -15.8% -51.8% 0.0% 35

NOTES: The City audits businesses for compliance with the sales and use tax ordinance. The negative number in 2017 represents a very large refund of an overpayment of use tax.

Revenue:

50/50 Concrete Replacement Program

$180,000 $160,000 $140,000 $120,000 $100,000 $80,000

Graphic

$60,000 $40,000 $20,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

0.04%

2016

2017

Current Rate:

2018

2019

2020 2021 (R)2022 (B)

50% 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

Enabling Legislation:

City of Arvada

Arvada Code §94-36

Only for offsetting City expenditures for concrete replacement

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2015

04.705012.46503

Special Use Restrictions:

History

2014

Based on continuingly stable receipts consistent with recent history

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 151,600 106,583 136,620 128,558 127,507 153,610 89,524 79,922 93,237 47,387 120,000 120,000

YoY % 28.5% -29.7% 28.2% -5.9% -0.8% 20.5% -41.7% -10.7% 16.7% -49.2% 153.2% 0.0% 36

NOTES:

Revenue:

Miscellaneous Recovered Costs

$1,400,000 $1,200,000 $1,000,000 $800,000 Graphic

$600,000 $400,000 $200,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

01.500010.44510, 46201, 46450, 46501, 46502, 46503, 4650 & 46506

2016

0.90%

2019

2020

2021 (R)

2022 (B)

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, the City's annual rebate from JPMorgan for P-card usage, and lease payments for cellular towers on City property

Enabling Legislation:

City of Arvada

Various

Generally none

Budget Rationale:

Percentage of total 2020 General Fund Revenue

2018

Current Rate:

Special Use Restrictions:

History

2017

Based on continuingly stable receipts consistent with recent history

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 305,285 735,370 788,634 779,507 757,168 1,025,731 1,129,517 1,166,315 1,031,688 1,023,848 401,500 405,725

YoY % -52.3% 140.9% 7.2% -1.2% -2.9% 35.5% 10.1% 3.3% -11.5% -0.8% -60.8% 1.1% 37

NOTES: These figures exclude in-kind book entries for General Fund support of the Arvada Center.

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, 2006.

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 2020 was as follows:

Police Tax Increment Revenues

Building Use Tax 5%

General Use Tax 1%

Other 9%

Auto Use Tax 10%

Sales Tax 75%

38

Revenue:

Sales Tax (PD Tax Increments)

$12,000,000

$10,000,000

$8,000,000

$6,000,000 Graphic $4,000,000

$2,000,000

$-

Oracle Account(s): Description:

2011

2012

2013

2016

2017

2018

Current Rate:

2019

2020

2021 (R)

2022 (B)

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

Enabling Legislation:

City of Arvada

Special Use Restrictions:

History

2015

21.600000.41352 & 22.600000.41352

Collecting Entity:

Budget Rationale:

2014

Arvada Code §98-61 et seq.

Solely for police purposes as approved by election for each

Based on year-to-date figures for 2020 and continued growth consistent with past receipts for 2021 and 2022

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 5,627,846 5,960,736 6,303,841 6,770,242 7,197,811 7,531,066 8,081,046 8,339,125 8,548,730 9,269,698 10,244,387 10,244,387

YoY % 5.5% 5.9% 5.8% 7.4% 6.3% 4.6% 7.3% 3.2% 2.5% 8.4% 10.5% 0.0% 39

NOTES: 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 a new retail operation in the Ralston Fields Urban Renewal Area in 2019.

Revenue:

Auto Use Tax (PD Tax Increments)

$1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 Graphic $600,000 $400,000 $200,000 $-

Oracle Account(s): Description: Collecting Entity:

2011

2012

2013

2014

2015

2016

2017

2018

Current Rate:

21.600000.41354 & 22.600000.41354

2019

2020

2021 (R)

2022 (B)

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

Enabling Legislation:

Jefferson and Adams Counties

Special Use Restrictions:

Arvada Code §98-61 et seq.

Solely for police purposes as approved by election for each

Budget Rationale:

With several years of incredible growth since 2010, projections presume a "breather" in 2020; this runs consistent with General Fund Auto Use Tax receipts

History

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 665,589 735,040 826,022 917,320 1,069,225 1,098,236 1,309,520 1,230,129 1,246,508 1,311,498 1,337,727 1,364,482

YoY % 8.7% 10.4% 12.4% 11.1% 16.6% 2.7% 19.2% -6.1% 1.3% 5.2% 2.0% 2.0% 40

NOTES: 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. This is a very volatile and cyclical revenue that needs to be monitored carefully.

Revenue:

Building Use Tax (PD Tax Increments)

$1,200,000

$1,000,000

$800,000

$600,000 Graphic $400,000

$200,000

$-

Oracle Account(s): Description:

2011

2012

2013

2016

2017

2018

Current Rate:

2019

2020

2021 (R)

2022 (B)

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

Enabling Legislation:

City of Arvada

Special Use Restrictions:

History

2015

21.600000.41355 & 22.600000.41355

Collecting Entity:

Budget Rationale:

2014

Arvada Code §98-61 et seq. & Arvada Code §98-84 et seq.

Solely for police purposes as approved by election for each While recognizing that building activity has started to slow down, figures presume a base level of construction activity consistent with past years

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 272,959 365,783 442,784 679,350 799,772 1,042,068 1,074,494 626,837 510,191 579,064 477,029 491,340

YoY % 2.2% 34.0% 21.1% 53.4% 17.7% 30.3% 3.1% -41.7% -18.6% 13.5% -17.6% 3.0% 41

NOTES: The 2021-2022 budget represents a return to a base number that the City can rely upon through the tenyear model.

Revenue:

General Use Tax (PD Tax Increments)

$300,000

$250,000

$200,000

$150,000

Graphic

$100,000

$50,000

$-

Oracle Account(s): Description:

2011

2012

2013

2015

2016

2017

2018

Current Rate:

21.600000.41353 & 22.600000.41353

2019

2020 2021 (R)2022 (B)

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

Collecting Entity:

Enabling Legislation:

City of Arvada

Special Use Restrictions:

Arvada Code §98-61 et seq.

Solely for police purposes as approved by election for each

Budget Rationale: History

2014

Based on continued growth consistent with past receipts

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 231,806 187,203 238,316 235,168 245,162 201,295 277,754 224,219 166,690 127,113 139,823 160,797

YoY % 9.9% -19.2% 27.3% -1.3% 4.2% -17.9% 38.0% -19.3% -25.7% -23.7% 10.0% 15.0% 42

NOTES: 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 fluctuates year to year.

Revenue:

Audit Revenue (PD Tax Increments)

$60,000

$50,000

$40,000

$30,000

Graphic

$20,000

$10,000

$-

Oracle Account(s): Description:

2011

2012

2013

2015

2016

2017

2018

2019

2020 2021 (R)2022 (B)

Current Rate:

21.600000.41309 & 22.600000.41309

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

Collecting Entity:

Enabling Legislation:

City of Arvada

Special Use Restrictions:

Arvada Code §98-91

Solely for police purposes as approved by election for each

Budget Rationale: History

2014

Based on continuingly stable receipts consistent with recent history

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 36,159 23,846 21,483 22,944 12,132 39,170 (130,988) 5,455 56,707 47,753 14,500 14,500

YoY % -75.6% -34.1% -9.9% 6.8% -47.1% 222.9% -434.4% -104.2% 939.5% -15.8% -69.6% 0.0% 43

NOTES: The City audits businesses for compliance with the sales and use tax ordinance.

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

Jefferson County Open Space

–

Sales Tax – Arvada’s monthly

Arvada’s quarterly share of

share of Jefferson County Open

proceeds from the Colorado Lottery, primarily

which uses

the on

Space revenue, which the City

City

has been using solely for Parks

capital

Maintenance operations since

projects for park and recreation

2008

amenities Adams County Transportation

Adams County Open Space Sales

Sales Tax – a monthly share

Tax – a biannual distribution of

from Adams County for use on

Open Space Sales Tax revenue

road and bridge projects

from Adams County

43

44

Revenue:

Conservation Trust Fund

$800,000 $700,000 $600,000 $500,000 $400,000

Graphic

$300,000 $200,000 $100,000 $-

2011

2012

2013

Oracle Account(s):

2014

2015

2016

2017

2018

Current Rate:

03.2601.43401

2019

2020 2021 (R)2022 (B)

Dependent on Colorado Lottery sales; shares distributed on per capita basis

Description:

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

Collecting Entity:

Colorado Department of Local Affairs

Special Use Restrictions:

Colorado Constitution Article 27, §3 and CRS 29-21-101 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

Budget Rationale: History

Enabling Legislation:

Based on continued growth consistent with past receipts

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 491,441 538,321 587,297 530,706 539,560 633,297 572,045 595,047 683,994 623,009 566,156 571,817

YoY % 2.5% 9.5% 9.1% -9.6% 1.7% 17.4% -9.7% 4.0% 14.9% -8.9% -9.1% 1.0% 45

NOTES: The spike in revenue for 2019 was due to the Powerball jackpot reaching $768 million in March and $530 million in June generating increased sales.

Revenue:

Jefferson County Open Space Sales Tax

$7,000,000 $6,000,000 $5,000,000 $4,000,000 Graphic

$3,000,000 $2,000,000 $1,000,000 $-

2011

2012

Oracle Account(s): Description:

2015

2016

2017

2018

Current Rate:

2019

2020

2021 (R)

2022 (B)

0.50% 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

Enabling Legislation:

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..."

Budget Rationale: History

2014

14.800000.43502

Collecting Entity: Special Use Restrictions:

2013

Based on continued growth consistent with past receipts

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 3,142,349 3,312,981 3,537,126 3,685,566 3,978,094 4,202,050 4,380,272 4,632,757 5,025,652 5,389,361 5,956,148 6,075,271

YoY % 0.7% 5.4% 6.8% 4.2% 7.9% 5.6% 4.2% 5.8% 8.5% 7.2% 10.5% 2.0% 46

NOTES: The City uses all of its JeffCo Open Space revenue share for ongoing park operations and maintenance.

This revenue source has increased with the growth in the economy.

Revenue:

Adams County Transportation Sales Tax

$250,000

$200,000

$150,000 Graphic

$100,000

$50,000

$-

2011

2012

2013

Oracle Account(s): Description:

2014

2015

2016

2017

2018

Current Rate:

31.9001.43503

2019

2020 2021 (R)2022 (B)

0.50% 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

Collecting Entity:

Adams County

Special Use Restrictions:

"For improvements to or the building of road and bridge projects" within the City

Budget Rationale: History

Enabling Legislation:

Adams County Resolution 06-01 [voter approved]

Based on continuingly stable receipts consistent with recent history

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 62,729 112,681 80,201 73,560 88,000 101,741 81,132 104,195 135,797 204,681 76,006 78,286

YoY % -6.3% 79.6% -28.8% -8.3% 19.6% 15.6% -20.3% 28.4% 30.3% 50.7% -62.9% 3.0% 47

NOTES: Overall growth in the economy has increased this revenue over the past 10 years.

Revenue:

Adams County Open Space Sales Tax

$80,000 $70,000 $60,000 $50,000 $40,000

Graphic

$30,000 $20,000 $10,000 $-

2011

2012

2013

Oracle Account(s): Description:

2016

2017

2018

Current Rate:

2019

2020 2021 (R)2022 (B)

0.25% 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

Enabling Legislation:

Adams County

Adams County Resolutions 99-1 & 2004-1 (voter approved)

"To preserve open space...and for creating, improving and maintaining parks and recreation facilities" in Adams County

Budget Rationale: History

2015

31.9007.43502

Collecting Entity: Special Use Restrictions:

2014

Based on continuingly stable receipts consistent with recent history

Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (R) 2022 (B)

$ $ $ $ $ $ $ $ $ $ $ $

Dollars 24,236 25,285 40,697 28,655 28,295 35,395 32,156 55,639 49,905 75,213 31,669 32,619

YoY % -2.6% 4.3% 61.0% -29.6% -1.3% 25.1% -9.2% 73.0% -10.3% 50.7% -57.9% 3.0% 48

NOTES: Overall growth in the economy has increased this revenue over the past 10 years.

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 Debra Nielson, Controller Sheena Freve, Budget Analyst Chris Kelly, Budget Analyst Jenna Belec, Executive Assistant Steve Milke,Bun Heng, Print Shop

8101 Ralston Road Arvada, CO 80002