City of Arvada December 2022 Revenue Manual

CITY OF ARVADA REVENUE MANUAL

INTRODUCTION

The Finance Department is pleased to present the 2022 Revenue Manual for the City of Arvada . This document is intended to provide City Council, staff, and the citizens a comprehensive look at the major City revenues . While this document has been bi-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 (2023 & 2024)

• Up to 5 years of forecasted revenues are now included (2025-2029)

• 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

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. The breakout of revenue sources for the General Fund in 2022 was as follows:

General Fund Revenues

The Sales Tax chart listed above is a graphical representation of the total sales tax charged in Arvada depending on what County the purchase is located. If the purchase is in Jefferson County, the total sales tax charged is 7 .96% and if in Adams County, 8 .21% . The City receives 3 .46% of the total sales tax collected, of which, 3% goes to support general operations and .46% is dedicated to police .

General Fund Revenue: Sales Tax

Current Rate:

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

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 2022 and continued growth consistent with past receipts for 2023

NOTES:

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

The increase in sales tax in 2020, 2021 and 2022 are due to increased grocery and wholesale store sales from COVID-19 and internet retailers that started remitted sales tax in October 2020. It is expected that growth will return to 1.4% to 3.4% in future years.

General Fund Revenue: Auto Use Tax

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$12,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (R) 2024 (B) 2025 (F) 2026 (F) 2027 (F) 2028 (F) 2029 (F)

None $-

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 §98-61 et seq.

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.

Property Tax

The City’s property tax mill levy rate for 2023 was 4 .31 mills .

Residents paid $175 .15 in City property taxes on the medium home price of $620,000 .

Residents may pay additional property taxes if they live in a Metro District These additional mill rates vary from 10 mills up to 75 mills A Metro District is a taxing entity that exists primarily to finance public improvements and amenities that benefit property owners in the district .

General Fund Revenue: Property Tax

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 39-10-101 et seq.

Presumes increase based on preliminary valuations for 2021 tax year (paid in 2022)

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.

General Fund Revenue: Highway Users Trust Fund

Current Rate:

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

Enabling Legislation:

Colorado Department of Local Affairs 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

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. Future projections are kept relatively flat.

General Fund Revenue: Building Use Tax

$$1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (R) 2024 (B) 2025 (F) 2026 (F) 2027 (F) 2028 (F) 2029 (F)

Current Rate:

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

Enabling Legislation:

None 01.500010.41305 3.00% on the permit valuation

NOTES:

The 2023 budget and forward represents base numbers that the City can rely upon through the ten-year model. The large increase in 2022 is due to a couple of large development projects.

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

General Fund Revenue: General Use Tax

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

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

General Fund Revenue: Specific Ownership Tax

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

CRS 42-3-107

With several years of incredible growth since 2010, projections presume a "breather"; this runs consistent with presumptions for Auto Use Tax receipts

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.

General Fund Revenue: Admissions Tax

tax on the

City of Arvada Arvada Code §98-311 et seq.

Based on a slowdown in growth due to COVID-19 based on past receipts, future projections return to a 2% growth pattern

NOTES:

Movie theaters are the source of this revenue. 2020 revenue decreased due to the COVID 19 pandemic, 2021 and 2022 showed tremendous growth as consumers returned to movie theaters. 2023 revenue increased from Sonora Cinemas opening in Arvada

A

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

General Fund Revenue: Road & Bridge Tax

Current Rate:

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 seen in 2016, 2017, and 2022 based on previous year experience. Counties may change their Road & Bridge levies at their own discretion

NOTES: This revenue source has varied from year to year. As the Counties have the authority to change the allocations each year, the City has conservatively estimated a 1% increase in future years.

General Fund Revenue: Cigarette Tax

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

Enabling Legislation:

CRS 39-28-101 et seq.

With the exception of 2020 & 2021 Cigarette Tax has seen low growth since 2010. The projection for this revenue is expected to see zero and reduced growth in the future.

NOTES: This revenue source has declined over the past several years with the exception of 2020 & 2021 when cigarette tax spiked. Future years projections show zero growth with declines in some years.

General Fund Revenue: Lodging Tax

NOTES:

2020 revenues saw a large decrease due to the COVID 19 pandemic. 2021 and 2022 saw a rebound as consumers started to travel more in a postpandemic world. Future years projections return to a level consistent with years prior to the pandemic.

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.

General Fund Revenue: Severance Tax & Federal Mineral Lease

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

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

NOTES:

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

General Fund Revenue: Franchise Fees - Power and Natural Gas Utility Service

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

NOTES: Franchise fee revenues are heavily suceptible to both the weather and commodity prices. Due to the unpredictable nature of those two variables the City takes a conservative approach in budget estimates. The large growth from 2020 to 2022 was due to an increase to Xcel Energy rates.

General Fund Revenue: Franchise Fees - Telephone Service

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

of Arvada

Code §98-31 et seq.

Assumes reduction in revenue due to reduced use of land lines as more consumers favor the use of cellular phones

NOTES: Revenue has declined over the years as many Arvada residents eliminated their land lines in favor of cellular phones. A gradual decline is anticipated in future years.

General Fund Revenue: Franchise Fees - Cable Television

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

As programming alternatives to cable television continues to grow it is expected this revenue source will continue to decline

NOTES:

Despite the rise of programming alternatives to cable television, the Arvada market has remained stable. A gradual decline is anticipated in future years.

General Fund Revenue: PEG Cable Fees

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

and governmental

for public

NOTES:

PEG Fees are used to enhance KATV services. A gradual decline is anticipated in future years. These match cable line subscriptions.

General Fund Revenue: Building Permit Fees

The

2023 budget presumes a base level of construction activity consistent with past years

NOTES:

collected are to offset costs incurred by the City

based on valuation of construction covered by permit

of Arvada

Enabling

General Fund Revenue: Public Improvement Fees

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

NOTES:

This revenue is closely tied to new residential development construction activity. The 20232024 budget represents a base number that the City can count upon through a ten-year model. The 0% increase in future years is refelcted in the decrease of building permit fees as well.

rights-of-way

General Fund Revenue: Development Plan Inspection Fees

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

Fees collected are to offset costs incurred by the City

The 2023 figures presume a base level of activity consistent with past years

NOTES: With new development slowing, fees declined in 2021, and are assumed to stay at that level in future years.

General Fund Revenue: Building Plan Review Fees

01.904010.44103

on valuation

NOTES:

The budget represents a base number that the City can count upon through a ten-year model. New builds in the City of Arvada are decreasing.

General Fund Revenue: Zoning & Subdivision Fees

Fees for services relevant to the Land Development Code and the Planning Commission, including plans for new developments, annexations, requests for zoning changes, etc.

Fees collected are to offset costs incurred by the City

While the City saw tremendous growth after the Great Recession, 2023 figures presume a base level of activity consistent with average buidling activity

NOTES:

The budget represents a base number that the City can count upon through a ten-year model. New builds in the City of Arvada are decreasing.

General Fund Revenue: Court Fines & Fees

and other citations issued by the $$200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (R) 2024 (B) 2025 (F) 2026 (F) 2027 (F) 2028 (F) 2029 (F)

None Current Rate: Enabling Legislation: Actuals Budget Forecast

Police Department and adjudicated in the

Municipal Court

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.

General Fund Revenue: Court Costs

01.201010.45003

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 City of Arvada

Code

Fees collected are to offset costs incurred by the City

Courts revenue have seen reductions over several years. Future projections return to a 2% growth pattern.

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 court costs. The forecast for this reveue source anticipates a reduction in 2024 based upon historial revenues. Future forecasts show a small annual increase.

General Fund Revenue: Miscellaneous Motor Vehicle Licenses

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)

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

NOTES:

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

General Fund Revenue: Passport Fees

$250,000

$200,000

$150,000

$100,000

$300,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (R) 2024 (B) 2025 (F) 2026 (F) 2027 (F) 2028 (F) 2029 (F)

Current Rate: $-

01.152013.44107

$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

Legislation: $50,000

Fees collected are to offset costs incurred by the City

The passport office closed in 2020 due to the COVID-19 pandemic, we do not anticiapte this program resuming in future years

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. We do not anticipate this program returning in the forseable future.

General Fund Revenue: Interfund Transfers

01.500010.442## & 471## Current Rate: 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

Enabling Legislation:

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

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. The increase from 2023 to 2024 is due to a new Transfer from the Stormwater Fund.

General Fund Revenue: Investment Interest

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

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

NOTES: Interest is expected to decrease in upcoming years due to many investments "locked-in" at lower interest rates.

General Fund Revenue: Penalties/Interest/Adjustments

NOTES:

The City moved to online only filing which allows notices to go out when expiring. Due to this new system there has been more consistancy with filing and payments made on time. The spike in 2022 is due to a large taxpayer who had an increase in late payments due to some changes in their internal processes.

on continuingly stable receipts consistent with recent history

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.

General Fund Revenue: Audit Revenue

Per municipal ordinance, an enforcement officer may conduct an audit of taxpayer records in order to verify accurate calculation and remittance of City taxes

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. The City takes a conservative approach in Audit Revenue budget estimates.

General Fund Revenue: 50/50 Concrete Replacement Program

50%

City

Only

NOTES:

General Fund Revenue: Miscellaneous Recovered Costs

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

Generally

NOTES:

These figures exclude in-kind book entries for General Fund support of the Arvada Center. Repayment of AURA loan for Ralston Commons will start in 2024, and end by 2028. Repayment of AURA Wheatridge loan will end after 2025. The increase in 2024-2027 is a repayment of a loan to AURA from the General Fund.

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 2022 was as follows:

PD Tax Increments Revenue: Sales Tax

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

Solely for police purposes as approved by election for each

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

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.

PD Tax Increments Revenue: Auto Use Tax

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

Solely

With several years of incredible growth since 2010, projections presume a "breather" in 2023; this runs consistent with General Fund Auto Use Tax receipts

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.

PD Tax Increments Revenue: Building Use Tax

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:

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

NOTES:

The 2023-2024 budget represents a return to a base number that the City can rely upon through the ten-year model. The large increase in 2022 is due to a couple of large development projects.

PD Tax Increments Revenue: General Use Tax

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

Solely for police purposes as approved by election for each

Based on continued growth consistent with past receipts

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.

PD Tax Increments Revenue: Audit Revenue

Per municipal ordinance, an enforcement officer may conduct an audit of taxpayer records in order to verify accurate calculation and remittance of City taxes

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

Adams County Transportation Sales Tax – a monthly share from Adams County for use on road and bridge projects

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 Open Space Sales Tax – a biannual distribution of Open Space Sales Tax revenue from Adams County

Other Governmental Revenue: Conservation Trust Fund

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 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

Based on continued growth consistent with past receipts

NOTES:

The spike in revenue for 2021 and 2022 was due to the Powerball jackpot growing to nearly $1 billion which increased lottery sales.

Other Governmental Revenue: Jefferson County Open Space Sales Tax

14.800000.43502

"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

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. This revenue source is based on sales tax collected at the County level, 2021 and 2022 revenue is consistent with increased sales tax revenue. 2023 and forward projections are based on a 3% annual increase.

0.50% Sales Tax (City gets 50% of what was collected in the City)

Jefferson County Ordinances

A tax on all sales and services taxable in Jefferson County and first approved by election in 1972 and effective in 1973 Jefferson County

Legislation:

Other Governmental Revenue: Adams County Transportation Sales Tax

31.9001.43503

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

Adams County Resolution 06-01 [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

NOTES: Overall growth in the economy has increased this revenue over the past 10 years. A continued increase is anticipated in future years.

Other Governmental Revenue: Adams County Open Space Sales Tax

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

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

Based on continuingly stable receipts consistent with recent history

NOTES: Overall growth in the economy has increased this revenue over the past 10 years. These funds are only used in Arvada's portion of Adams County for open space purposes.

Other Governmental Revenue: Golf - Green Fees

Since Covid, the Golf Fund has experienced an increase in most Programs. Hopefully this trend is to continue in the upcoming years, but budgeted conservatively.

The Golf Fund includes Lake Arbor Golf Course and West Woods Golf Course. In this scenario, Green Fees Revenue also includes Rentals, Players Pass and Miscellaneous Revenues. The dip in 2017 was due to course remodels.

The City of Arvada operates premier golf facilities, which include restaurants and banquet space. West Woods Golf Course and Lake Arbor Golf Course focus on exceptional service and value to the community.

Other Governmental Revenue: Golf - Motor Carts

43.802010,11+802020,21+802030,31+ 802040,43+802050,51.44504,44514

The City of Arvada operates premier golf facilities, which include restaurants and banquet space. West Woods Golf Course and Lake Arbor Golf Course focus on exceptional service and value to the community.

Since Covid, the Golf Fund has experienced an increase in most Programs. Hopefully this trend is to continue in the upcoming years, but budgeted conservatively.

The Golf Fund includes Lake Arbor Golf Course and West Woods Golf Course. The dip in 2017 was due to course remodels.

Other Governmental Revenue: Golf - Driving Range

43.802010,11+802020,21+802030,31+8 02040,43+802050,51.44507

The City of Arvada operates premier golf facilities, which include restaurants and banquet space. West Woods Golf Course and Lake Arbor Golf Course focus on exceptional service and value to the community.

Since Covid, the Golf Fund has experienced an increase in most Programs. Hopefully this trend is to continue in the upcoming years, but budgeted conservatively.

The Golf Fund includes Lake Arbor Golf Course and West Woods Golf Course. The dip in 2017 was due to course remodels.

Other Governmental Revenue: Golf - Pro Shop

43.802010,11+802020,21+802030,31+8 02040,43+802050,51.44517,44601

The City of Arvada operates premier golf facilities, which include restaurants and banquet space. West Woods Golf Course and Lake Arbor Golf Course focus on exceptional service and value to the community.

Since Covid, the Golf Fund has experienced an increase in most Programs. Hopefully this trend is to continue in the upcoming years, but budgeted conservatively.

The Golf Fund includes Lake Arbor Golf Course and West Woods Golf Course. The dip in 2020 was due to COVID course restrictions.

Other Governmental Revenue: Golf - Restaurant Food Services

Since Covid, the Golf Fund has experienced an increase in most Programs. Hopefully this trend is to continue in the upcoming years, but budgeted conservatively.

The Golf Fund includes Lake Arbor Golf Course and West Woods Golf Course, including food and banquet services. The dip in 2017 was due to course renovations. The dip in 2020 was due to COVID course restrictions. Food services include restaurant and banquet food sales, service charges and

The City of Arvada operates premier golf facilities, which include restaurants and banquet space. West Woods Golf Course and Lake Arbor Golf Course focus on exceptional service and value to the community.

Other Governmental Revenue: Golf - Restaurant Beverages

Since Covid, the Golf Fund has experienced an increase in most Programs. Hopefully this trend is to continue in the upcoming years, but budgeted conservatively.

The Golf Fund includes Lake Arbor Golf Course and West Woods Golf Course, including food and banquet services. The dip in 2017 was due to course renovations. The dip in 2020 was due to COVID course restrictions. Food services include restaurant and banquet food sales, service charges and banquet rentals.

The City of Arvada operates premier golf facilities, which include restaurants and banquet space. West Woods Golf Course and Lake Arbor Golf Course focus on exceptional service and value to the community.

Other Governmental Revenue: Athletic Fields

Current Rate: 14.801015.44710 + 44711

The City of Arvada is now managing the permitting and scheduling of organized sports activities including soccer, lacrosse, rugby, baseball, softball, and more on the City’s public fields

Based on last year's revenue, with an increase in athletic programs and tournaments

In 2022 the City took over duties to program athletic fields and all maintenance of athletic fields resides with the City. Formerly this was handled by APEX Recreation District. The City is waiting to see how revenues will come in while this Program is still very new. It is anticpated that user rates will increase annually through 2024 as this program is developed and then will increase every three years going forward.

ENTERPRISE FUND REVENUES

The City currently maintains five different enterprise funds. These include Water, Wastewater, Stormwater, Solid Waste and Golf. Each of these funds assess varies fees and charges to cover both the operating and capital needs.

Enterprise Fund Revenue: Water System Development Charges

41.733010.42204

Current Rate:

A System Development Charge (SDC), previously referred to as a “tap fee”, is the charge that developers pay to connect a new or expanded building or use to the city's water and/or sewer system.

City of Arvada

Enabling Legislation:

4819

SDCs are the primary source of revenue to support planned development and the needs to expand the capacity of water and sewer infrastructure

The City team reviews this amount on a regular basis to ensure that the City is charging the appropriate SDC based on industry best practices. The city works with independent financial advisors on a regular basis to update the City’s System Development Charges (SDC).

NOTES:

System Development Charge(SDC), previously referred to as a “tap fee”, is the charge that developers pay when connecting new water piping to the City’s existing system to deliver water to the new building. The City will be increasing SDCs to address the current planned development demand and expected future growth over the next 25 to 30 years.

Enterprise Fund Revenue: Water Fees

41.733010.44401

Current Rate:

1 0-30,000 Gal =$4.41/1,000 Gal

2 30,001-60,000 Gal= $5.52/1,000 Gal

3 60,001-90,000 Gal=$6.63/1,000 Gal

4 90,000< Gal=$8.83/1,000 Gal

Bi-Monthly Service Charge $9.83-Single Family

Home

Water rates and fees pay for the operating, maintenance, repair and replacement costs of the water system. No sales taxes are used for this work.

City of Arvada

Enabling Legislation:

Ordinance No. 4818

The City does not make a profit on these services or use the funds generated for anything other than providing water and sewer services.

Increases in rates are due to higher raw water costs, energy increases, higher pricing for materials and chemicals and the increasing need for rehabilitation and replacement of system infrastructure.

NOTES:

Fixed bimonthly service fees increased in 2022 for the first time in over a decade.

Enterprise Fund Revenue: Sewer System Development Charges

42.734040.42206

Current Rate: Sewer System - $1,579/Single Family Home

A System Development Charge (SDC), previously referred to as a “tap fee”, is the charge that developers pay to connect a new or expanded building or use to the city's water and/or sewer system.

City of Arvada

Enabling Legislation:

Ordinance No. 4819

Notes: SDCs are the primary source of revenue to support planned development and the needs to expand the capacity of water and sewer infrastructure

The City team reviews this amount on a regular basis to ensure that the City is charging the appropriate SDC based on industry best practices. The city works with independent financial advisors on a regular basis to update the City’s System Development Charges (SDC).

NOTES:

System Development Charge(SDC), previously referred to as a “tap fee”, is the charge that developers pay when connecting new wastewater (sewer) piping to the City’s existing system to remove wastewater from the new building. The City will be increasing SDCs to address the current planned development demand and expected future growth over the next 25 to 30 years.

Enterprise Fund Revenue: Wastewater Fees

42.734040.44301 Current Rate:

The Arvada Water, Wastewater and Stormwater Utilities are funded through rates, fees and System Development Charges (SDCs), not taxes

Enabling Legislation:

No. 4818

The City does not make a profit on these services or use the funds generated for anything other than providing sewer services.

Increases in rates are due to higher costs from Metro Recovery, energy increases, higher pricing for materials and chemicals and the increasing need for rehabilitation and replacement of system infrastructure.

NOTES: Fixed bimonthly service fees increased in 2022 for the first time in over a decade.

Enterprise Fund Revenue: Storm Water Fees

44.737010.44321

Rate:

$0.001520 per square feet of impervious area located on property per bi-monthly billing.

This fee is based upon the amount of area on each property that does not allow water to absorb into the ground, such as driveways, patios, and rooftops. Stormwater rates and fees pay for the operating, maintenance, repair and replacement costs of the stormwater system. No sales taxes are used for this work.

City of Arvada

Enabling Legislation:

Ordinance No. 4818

The City does not make a profit on these services or use the funds generated for anything other than providing stormwater ervices.

Increases in rates are due to higher pricing for materialsand the increasing need for rehabilitation and replacement of system infrastructure.

NOTES:

The City maintains, rehabilitates, and replaces existing stormwater structures, funds construction of new drainage facilities, and conducts stormwater quality monitoring and permitting.

Enterprise Fund Revenue: Solid Waste

47.738010.44091

Current Rate:

Vary depending on service level selected. Minimum billing of $5.28/month: $4.40 goes to Republic and .88 goes to the City.

The City partners with Republic Services to offer trash and recycling services, and also offers large item clean up and recycling events to residents.

City of Arvada

Enabling Legislation:

Ordinance 4733 (adopted 6/15/2020)

Ordinance 4733 (adopted 6/15/2020)

The City does not make a profit on these services or use the funds generated for anything other than providing waste hauling and recycling services.

The revenues support the costs of the waste and recycling program, including the waste hauler contract, bulky item and leaf recycling drop off events, 2 employees , office space, billing-system upgrades and postage.

NOTES: Arvada City Council approved the formation of a City of Arvada Waste Hauling program in 2020. The program started on July 5, 2021. Monthly Fees effective 8/1/2023:

$20.34 - 95 gal cart and 95 gal recycling cart

$16.06 - 65 gal cart and 95 gal recycling cart

$11.79 - 35 gal cart and 95 gal recycling cart

$5.28 - min service (choose your own hauler)

Additional Fees:

$3.08/month for an additional recycling cart

$4.27 for an additional trash cart

$3.62/tag for additional trash bags

$15.53 for bulky item pickup

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

Debra Nielson, Deputy Director of Finance

Vesta Kruk, Controller

Chris Kelly, Senior Budget Analyst

Carolyn Ewing, Budget Analyst

Rocky Sheppard, Budget Analyst

Jenna Belec, Finance Program Coordinator

Steve Milke,Bun Heng, Print Shop

8101 Ralston Road

Arvada, CO 80002