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City of Arvada December 2017 Revenue Manual

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Revenue Manual December 2017


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

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

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INTRODUCTION The Department of Finance is pleased to present the 2017 Revenue Manual for the City of Arvada. This document is intended to provide City Council, staff, and the citizens a comprehensive look at major City governmental revenues. Enterprise revenues are beyond the current scope of this manual, but will be added in future revisions. While this document has been annually updated and reproduced for many years, both the format and data contained have been revised in order to make the manual a more useful tool in evaluating the City revenues.

Information provided for each revenue source includes: • • • • • • • • •

Up to ten years of actual annual receipts Revised estimates for each year in the current biennial budget (2017 & 2018) Associated account numbers in Oracle, the City’s financial information management system The current rate at which the revenue is assessed A brief description of the revenue The governmental entity responsible for collecting the revenue The enabling legislation providing for the assessment and collection of the revenue Special use restrictions on the revenue (if any) Current rationale behind the estimates on future collections

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GENERAL FUND REVENUES Taxes

A vast majority of Arvada’s governmental revenues come

Fees

in one of three types:

Intergovernmental Revenue

From the largest source, sales tax, to among the smallest, such as lodging taxes, these revenues fuel most of the City’s operating and capital needs. In general, tax revenues may be spent on any Arvada government operation, from street maintenance and new infrastructure to salaries, computers and paper clips. Most fees are collected to offset the costs of a particular service offered by the City. Examples include building permit and plan review fees imposed by Building Inspection to cover its operations, and development plan inspection fees imposed by the Department of Community Development for some of its work related to the Planning Commission, new developments and annexations. As for intergovernmental revenues, these are taxes and fees imposed by other jurisdictions, usually the state or a county. By law, the City is entitled to a portion of any revenues collected. The largest example is the Highway Users Trust Fund, by which the State distributes motor fuel excise taxes and certain license and registration fees. The breakout of revenue sources for the General Fund in 2016 was as follows: Highway Users Trust Fund Interfund 4.52% Transfers Franchise Fees 3.91% 4.62%

Other Financing Sources 7.21%

Building Permits 5.24%

Property Tax 6.15% Building Use Tax 7.49%

Sales Tax 52.99%

Auto Use Tax 7.89%

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Revenue:

Sales Tax (General Fund)

$60,000,000

$50,000,000

$40,000,000

$30,000,000 Graphic $20,000,000

$10,000,000

$2007

Oracle Account(s):

Description: Collecting Entity: Special Use Restrictions: Budget Rationale: History

Percentage of total 2016 General Fund Revenue 52.99%

2008

2009

2010

2011

01.500010.41301 & 26.1001.41301

2012

2013

Current Rate:

2014

2015

2016

2017 (R)

2018 (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 ยง98-61 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 ยง98-101

Based on year-to-date figures for 2015 and continued growth consistent with past receipts for 2016

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 35,444,313 35,945,909 34,584,747 34,776,789 35,852,374 37,954,667 40,205,021 43,211,511 45,902,693 48,111,672 50,036,139 51,532,219

YoY % 23.8% 1.4% -3.8% 0.6% 3.1% 5.9% 5.9% 7.5% 6.2% 4.8% 4.0% 3.0% 4

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


Revenue:

Auto 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 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41304

2012

Current Rate:

History

Percentage of total 2016 General Fund Revenue 7.89%

2014

2015

2016

2017 (R)

2018 (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:

2013

Arvada Code ยง98-61 et seq.

None

With several years of incredible growth since 2009, projections presume a "breather"; this runs consistent with presumptions for Specific Ownership Tax receipts

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 4,720,335 4,298,598 3,929,577 3,981,079 4,340,794 4,804,227 5,379,579 5,982,520 6,973,209 7,162,405 7,350,000 6,982,500

YoY % 9.4% -8.9% -8.6% 1.3% 9.0% 10.7% 12.0% 11.2% 16.6% 2.7% 2.6% -5.0% 5

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.


Revenue:

Property Tax

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

$3,000,000 $2,000,000 $1,000,000 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41101

2012

Current Rate:

History

Percentage of total 2016 General Fund Revenue 6.15%

2014

2015

2016

2017 (R)

2018 (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:

2013

CRS 39-10-101 et seq.

None

Presumes substantial increase based on preliminary valuations for 2015 tax year (paid in 2016)

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 4,383,304 4,718,720 4,770,519 4,637,622 4,643,015 4,500,376 4,556,940 4,600,994 4,668,082 5,583,065 5,644,426 5,926,647

YoY % 6.0% 7.7% 1.1% -2.8% 0.1% -3.1% 1.3% 1.0% 1.5% 19.6% 1.1% 5.0% 6

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

$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 $2007

Oracle Account(s):

Description: Collecting Entity: Special Use Restrictions: Budget Rationale: History

Percentage of total 2016 General Fund Revenue 4.52%

2008

2009

2010

2011

01.500010.43301

2012

2013

Current Rate:

2014

2015

2016

2017 (R)

2018 (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 continued growth consistent with past receipts and roughly, though conservatively, consistent with State Legislative Council

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 3,258,738 3,111,780 3,340,063 3,791,075 3,809,048 3,818,142 3,847,443 3,937,402 4,077,593 4,101,534 4,180,145 4,242,847

YoY % -2.8% -4.5% 7.3% 13.5% 0.5% 0.2% 0.8% 2.3% 3.6% 0.6% 1.9% 1.5% 7

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.


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 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41305

2012

Current Rate:

History

Percentage of total 2016 General Fund Revenue 7.49%

2014

2015

2016

2017 (R)

2018 (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:

2013

Arvada Code ยง98-61 et seq. & Arvada Code ยง98-84 et seq.

None

While recognizing that building activity will likely remain highly elevated in the years to come, 2016 figures presume a base level of construction activity consistent with past years

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 1,641,238 1,527,375 2,042,532 1,732,770 1,780,442 2,385,633 2,884,866 4,431,197 5,215,500 6,799,066 2,420,837 2,430,360

YoY % -19.8% -6.9% 33.7% -15.2% 2.8% 34.0% 20.9% 53.6% 17.7% 30.4% -64.4% 0.4% 8

NOTES: The 2017-18 budget represents a base number that the City can rely upon through a ten-year model.


Revenue:

General Use Tax (General Fund)

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

Graphic

$600,000 $400,000 $200,000 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41303

2012

1.45%

2015

2016

2017 (R)

2018 (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 ยง98-61 et seq.

None

Budget Rationale:

Percentage of total 2016 General Fund Revenue

2014

Current Rate:

Special Use Restrictions:

History

2013

Based on continued growth consistent with past receipts

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 1,122,238 1,467,655 1,278,837 1,374,997 1,511,848 1,220,977 1,554,343 1,533,818 1,598,995 1,312,887 1,632,986 1,665,646

YoY % -10.0% 30.8% -12.9% 7.5% 10.0% -19.2% 27.3% -1.3% 4.2% -17.9% 24.4% 2.0% 9

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 fluxuates year to year.


Revenue:

Specific Ownership Tax

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

$200,000 $150,000 $100,000 $50,000 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41201

2012

Current Rate:

History

Percentage of total 2016 General Fund Revenue 0.52%

2014

2015

2016

2017 (R)

2018 (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:

2013

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 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 401,860 380,414 350,042 323,059 310,268 328,784 349,999 375,638 405,439 472,959 367,707 375,062

YoY % 0.9% -5.3% -8.0% -7.7% -4.0% 6.0% 6.5% 7.3% 7.9% 16.7% -22.3% 2.0% 10

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 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41501

2012

0.18%

2015

2016

2017 (R)

2018 (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 ยง98-311 et seq.

None

Budget Rationale:

Percentage of total 2016 General Fund Revenue

2014

Current Rate:

Special Use Restrictions:

History

2013

Based on continued growth consistent with past receipts

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 139,911 145,076 164,772 156,180 156,731 182,911 185,397 162,895 145,939 166,832 196,306 300,232

YoY % 106.0% 3.7% 13.6% -5.2% 0.4% 16.7% 1.4% -12.1% -10.4% 14.3% 17.7% 52.9% 11

NOTES: Movie theaters are a significant source of this revenue, and are anticipated to see a substantial increase in base activity in 2018.


Revenue:

Road & Bridge Tax

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

$600,000 $400,000 $200,000 $2007

Oracle Account(s):

Description: Collecting Entity: Special Use Restrictions: Budget Rationale: History

Percentage of total 2016 General Fund Revenue 0.88%

2008

2009

2010

2011

01.500010.43501

2012

2013

Current Rate:

2014

2015

2016

2017 (R)

2018 (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

Presumes a substantial increase for calendar 2016, as is the case with Property Tax, though at a lower rate since counties may change their Road & Bridge levies at their own discretion

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 1,244,222 1,252,934 1,251,677 970,358 776,092 855,684 718,844 730,239 734,993 799,693 826,925 860,002

YoY % 5.4% 0.7% -0.1% -22.5% -20.0% 10.3% -16.0% 1.6% 0.7% 8.8% 3.4% 4.0% 12

NOTES: The small increases in the past couple of years raised Arvada's share of the tax to only 60% of what we received in 2008 and 2009.


Revenue:

Cigarette Tax

$250,000

$200,000

$150,000

Graphic $100,000

$50,000

$2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41401

Colorado Department of Revenue

0.19%

2014

2015

Current Rate:

2016

2017 (R)

2018 (B)

$0.042 per cigarette

Enabling Legislation:

CRS 39-28-101 et seq.

None on Arvada's share

Budget Rationale:

Percentage of total 2016 General Fund Revenue

2013

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

2012

Assumes stabilized level of revenue consistent with recent years

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 191,110 182,101 173,253 175,258 172,703 167,760 163,285 163,313 164,432 170,934 165,000 165,000

YoY % -2.9% -4.7% -4.9% 1.2% -1.5% -2.9% -2.7% 0.0% 0.7% 4.0% -3.5% 0.0% 13

NOTES:


Revenue:

Lodging Tax

$120,000

$100,000

$80,000

$60,000 Graphic $40,000

$20,000

$2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41601

2012

0.03%

2015

2016

2017 (R)

2018 (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 ยง98-241 et seq.

None

Budget Rationale:

Percentage of total 2016 General Fund Revenue

2014

Current Rate:

Special Use Restrictions:

History

2013

Assumes stabilized level of revenue consistent with recent years

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

$ $ $ $ $ $ $ $ $ $ $

Dollars N/A 12,148 11,747 14,507 17,104 14,525 17,316 20,839 22,511 24,315 110,000 113,000

YoY % N/A N/A -3.3% 23.5% 17.9% -15.1% 19.2% 20.3% 8.0% 8.0% 352.4% 2.7% 14

NOTES: The substantial increase for 2017 and 2018 reflects expected revenue from a new hotel opening in March 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 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.43650

2012

History

Percentage of total 2016 General Fund Revenue 0.09%

2014

Current Rate:

2015

2016

2017 (R)

2018 (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:

2013

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 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 25,737 93,059 113,111 49,078 62,465 89,146 96,875 164,698 157,559 82,196 75,000 75,000

YoY % 6.5% 261.6% 21.5% -56.6% 27.3% 42.7% 8.7% 70.0% -4.3% -47.8% -8.8% 0.0% 15

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 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41801

2012

Current Rate:

Enabling Legislation:

City of Arvada

3.03%

2015

2016

2017 (R)

2018 (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 2016 General Fund Revenue

2014

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

2013

Based on continued growth consistent with past receipts

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 2,711,935 3,032,728 2,708,459 2,958,847 2,940,189 2,754,684 2,998,649 3,062,743 2,867,854 2,752,168 2,813,455 2,883,792

YoY % 0.0% 11.8% -10.7% 9.2% -0.6% -6.3% 8.9% 2.1% -6.4% -4.0% 2.2% 2.5% 16

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


Revenue:

Franchise Fees - Telephone Service

$300,000

$250,000

$200,000

$150,000 Graphic $100,000

$50,000

$2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41802

2012

Current Rate:

Enabling Legislation:

City of Arvada

0.19%

2015

2016

2017 (R)

2018 (B)

$0.455 per line each month

Arvada Code ยง98-31 et seq.

None

Budget Rationale:

Percentage of total 2016 General Fund Revenue

2014

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

2013

Assumes stabilized level of revenue consistent with recent years

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 260,596 245,571 239,527 223,463 205,981 197,344 188,876 188,646 199,882 174,941 190,950 190,950

YoY % -1.6% -5.8% -2.5% -6.7% -7.8% -4.2% -4.3% -0.1% 6.0% -12.5% 9.2% 0.0% 17

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 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41803

2012

Current Rate:

Enabling Legislation:

City of Arvada

1.39%

2015

2016

2017 (R)

2018 (B)

5.00% on gross revenues for franchisee

Comcast: Ordinance 4564 Baja: Ordinance 4432

None

Budget Rationale:

Percentage of total 2016 General Fund Revenue

2014

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

2013

Based on continued growth consistent with past receipts

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 905,329 950,739 988,208 1,024,066 1,021,114 1,080,498 1,120,704 1,147,925 1,173,882 1,265,278 1,209,098 1,209,098

YoY % 6.0% 5.0% 3.9% 3.6% -0.3% 5.8% 3.7% 2.4% 2.3% 7.8% -4.4% 0.0% 18

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


Revenue:

PEG Cable Fees

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

$60,000 $40,000 $20,000 $2007

Oracle Account(s):

Description: Collecting Entity: Special Use Restrictions:

2008

2009

Percentage of total 2016 General Fund Revenue 0.12%

2011

01.151012.41804

2012

2013

Current Rate:

2014

2015

2016

2017 (R)

2018 (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

2010

Based on continuingly stable receipts consistent with recent history

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 125,152 123,233 124,306 121,077 115,764 114,716 111,557 110,425 108,907 111,122 109,080 110,170

YoY % -0.3% -1.5% 0.9% -2.6% -4.4% -0.9% -2.8% -1.0% -1.4% 2.0% -1.8% 1.0% 19

NOTES: PEG Fees are used to enhance KATV services.


Revenue:

Building Permit Fees

$5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 Graphic

$2,000,000 $1,500,000 $1,000,000 $500,000 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

01.732030.42201

History

Percentage of total 2016 General Fund Revenue 5.24%

2012

2013

Current Rate:

2014

2015

2016

2017 (R)

2018 (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:

2011

Arvada Code ยง18-42

Fees collected are to offset costs incurred by the City

While recognizing that building activity will likely remain highly elevated in the years to come, 2016 figures presume a base level of construction activity consistent with past years

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 1,300,148 1,389,197 2,639,886 1,908,244 1,460,128 1,892,874 2,183,950 3,451,592 3,907,801 4,754,796 2,183,561 2,231,079

YoY % -11.0% 6.8% 90.0% -27.7% -23.5% 29.6% 15.4% 58.0% 13.2% 21.7% -54.1% 2.2% 20

NOTES: The 2017-18 budget represents a base number that we can count upon through a ten-year model.


Revenue:

Public Improvement Fees

$600,000

$500,000

$400,000

$300,000 Graphic $200,000

$100,000

$2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

01.701014.42202

History

Percentage of total 2016 General Fund Revenue 0.44%

2012

2013

2014

2015

2016

Current Rate:

2017 (R)

2018 (B)

Varies

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

Enabling Legislation:

City of Arvada

Special Use Restrictions: Budget Rationale:

2011

Arvada Code ยง78-291 et seq.

Fees collected are to offset costs incurred by the City

While recognizing that building activity will likely remain highly elevated in the years to come, 2016 figures presume a base level of construction activity consistent with past years

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 321,736 71,975 57,434 79,365 157,680 231,812 357,647 489,022 444,332 396,464 200,000 150,000

YoY % 133.6% -77.6% -20.2% 38.2% 98.7% 47.0% 54.3% 36.7% -9.1% -10.8% -49.6% -25.0% 21

NOTES: This revenue is closely tied to new residential development construction activity. The 201718 budget represents a base number that we can count upon through a ten-year model.


Revenue:

Development Plan Inspection Fees

$70,000 $60,000 $50,000 $40,000 Graphic

$30,000 $20,000 $10,000 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

01.761010.42303

History

Percentage of total 2016 General Fund Revenue 0.07%

2012

2013

2014

2015

2016

Current Rate:

2017 (R)

2018 (B)

Varies

Fee charged by the Department of Community Development for the review of development plans

Enabling Legislation:

City of Arvada

Special Use Restrictions: Budget Rationale:

2011

Arvada Code ยง74-31

Fees collected are to offset costs incurred by the City

While recognizing that relevant City growth will likely remain highly elevated in the years to come, 2016 figures presume a base level of activity consistent with past years

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 4,310 5,725 4,015 7,880 8,455 16,675 27,900 30,725 50,325 60,950 4,000 4,000

YoY % -40.8% 32.8% -29.9% 96.3% 7.3% 97.2% 67.3% 10.1% 63.8% 21.1% -93.4% 0.0% 22

NOTES:


Revenue:

Building Plan Review Fees

$800,000 $700,000 $600,000 $500,000 $400,000 Graphic $300,000 $200,000 $100,000 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

01.732010.44103

History

Percentage of total 2016 General Fund Revenue 0.80%

2012

2013

2014

Current Rate:

2015

2016

2017 (R)

2018 (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:

2011

Arvada Code ยง18-42

Fees collected are to offset costs incurred by the City

While recognizing that building activity will likely remain highly elevated in the years to come, 2016 figures presume a base level of construction activity consistent with past years

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 279,293 255,099 161,972 241,854 187,850 306,570 317,851 499,178 634,501 726,143 229,837 229,837

YoY % 18.1% -8.7% -36.5% 49.3% -22.3% 63.2% 3.7% 57.0% 27.1% 14.4% -68.3% 0.0% 23

NOTES: The 2017-18 budget represents a base number that we can count upon through a ten-year model.


Revenue:

Zoning & Subdivision Fees

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

Graphic

$60,000 $40,000 $20,000 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

01.761010.44104

History

Percentage of total 2016 General Fund Revenue 0.15%

2012

2013

2014

2015

2016

Current Rate:

2017 (R)

2018 (B)

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:

2011

Arvada Code ยง74-31

Fees collected are to offset costs incurred by the City

While recognizing that relevant City growth will likely remain highly elevated in the years to come, 2016 figures presume a base level of activity consistent with past years

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 89,651 88,315 87,517 58,498 150,357 157,133 150,165 144,100 119,373 136,822 50,000 50,000

YoY % 38.1% -1.5% -0.9% -33.2% 157.0% 4.5% -4.4% -4.0% -17.2% 14.6% -63.5% 0.0% 24

NOTES: The 2017-18 budget represents a base number that we 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 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.201010.45001, 45004, 45005, & 45050

2012

1.53%

2015

2016

2017 (R)

2018 (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 ยง58-1

None

Budget Rationale:

Percentage of total 2016 General Fund Revenue

2014

Current Rate:

Special Use Restrictions:

History

2013

Based on continued growth consistent with past receipts

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 910,619 1,032,961 1,257,831 1,092,236 905,778 1,242,305 1,279,056 1,220,356 1,462,454 1,391,410 1,565,991 1,585,001

YoY % 2.9% 13.4% 21.8% -13.2% -17.1% 37.2% 3.0% -4.6% 19.8% -4.9% 12.5% 1.2% 25

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


Revenue:

Court Costs

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

$200,000 $150,000 $100,000 $50,000 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

01.201010.45003

0.38%

2013

2014

Current Rate:

Enabling Legislation:

City of Arvada

2015

2016

2017 (R)

2018 (B)

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

Arvada Code ยง58-13

Fees collected are to offset costs incurred by the City

Budget Rationale:

Percentage of total 2016 General Fund Revenue

2012

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

Special Use Restrictions:

History

2011

Based on continued growth consistent with past receipts

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 314,190 345,031 375,283 465,574 355,719 438,468 430,810 389,035 383,658 341,030 448,303 452,786

YoY % 17.6% 9.8% 8.8% 24.1% -23.6% 23.3% -1.7% -9.7% -1.4% -11.1% 31.5% 1.0% 26

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:

Professional & Occupational Licenses

$250,000

$200,000

$150,000

Graphic

$100,000

$50,000

$2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

01.732030.42103

0.22%

2013

2014

2015

2016

Current Rate:

Enabling Legislation:

City of Arvada

2017 (R)

2018 (B)

$50 - $200/year

Arvada Code ยง18-71 et seq.

Fees collected are to offset costs incurred by the City

Budget Rationale:

Percentage of total 2016 General Fund Revenue

2012

Fees charged for the annual licensing of private contractors who perform either construction or demolition work or services in the City

Special Use Restrictions:

History

2011

Based on continuingly stable receipts consistent with recent history

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 140,653 150,020 180,513 181,033 159,982 163,450 177,778 185,900 181,725 198,241 175,000 175,000

YoY % -3.7% 6.7% 20.3% 0.3% -11.6% 2.2% 8.8% 4.6% -2.2% 9.1% -11.7% 0.0% 27

NOTES: This revenue tends to rise and fall with building activity.


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 $2007

Oracle Account(s):

Description: Collecting Entity: Special Use Restrictions:

2008

2009

Percentage of total 2016 General Fund Revenue 0.49%

2011

01.500010.42150

2012

2013

Current Rate:

2014

2015

2016

2017 (R)

2018 (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

2010

Based on continuingly stable receipts consistent with recent history

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 378,598 381,787 384,644 387,156 388,830 401,182 408,103 422,767 430,037 445,878 428,442 432,726

YoY % 4.0% 0.8% 0.7% 0.7% 0.4% 3.2% 1.7% 3.6% 1.7% 3.7% -3.9% 1.0% 28

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

$2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

01.152013.44107

History

Percentage of total 2016 General Fund Revenue 0.22%

2012

2013

Current Rate:

2014

2015

2016

2017 (R)

2018 (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:

2011

Arvada Code ยง2-261 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 substantial jumps in recent years

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 67,126 53,062 61,705 51,097 41,546 46,839 61,491 73,996 116,386 199,145 221,099 258,972

YoY % 73.3% -21.0% 16.3% -17.2% -18.7% 12.7% 31.3% 20.3% 57.3% 71.1% 11.0% 17.1% 29

NOTES: Local post offices have been providing less and less availability for passport services in recent years, leading to a substantial spike in demand for City passport services.


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 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.442## & 471##

2012

2013

Current Rate:

2014

2015

2016

2017 (R)

2018 (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 2016 General Fund Revenue 3.91%

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 3,233,545 3,448,662 3,876,784 3,556,619 3,817,707 3,263,466 3,334,739 3,695,542 3,605,343 3,551,764 3,755,350 3,868,011

YoY % 3.0% 6.7% 12.4% -8.3% 7.3% -14.5% 2.2% 10.8% -2.4% -1.5% 5.7% 3.0% 30

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

$2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.46101, 46102, & 46104

2012

Current Rate:

History

Percentage of total 2016 General Fund Revenue 0.72%

2014

2015

2016

2017 (R)

2018 (B)

Market Rates

Interest received on investments made by the City within the confines of the City's Investment Policy, with the priorities (in order) of safety, liquidity, and yield

Enabling Legislation:

City of Arvada

Special Use Restrictions: Budget Rationale:

2013

Arvada Code ยง2-232 et seq.

None

Presumes a continued low interest rate investment market and AURA's payoff of a note in the near-term for with the City was paid interest

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 1,001,777 1,108,109 502,453 436,075 342,513 272,982 234,100 355,259 437,814 655,668 625,000 653,000

YoY % -22.6% 10.6% -54.7% -13.2% -21.5% -20.3% -14.2% 51.8% 23.2% 49.8% -4.7% 4.5% 31

NOTES: The collapse of interest rates in the wake of the 2008 financial crisis has taken a serious toll on the City's investment returns. Increases in short-term rates will help moving forward.


Revenue:

Penalties/Interest/Adjustments

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

$200,000 $150,000 $100,000 $50,000 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41308

2012

0.15%

2015

2016

2017 (R)

2018 (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 ยง98-71 et seq.

None

Budget Rationale:

Percentage of total 2016 General Fund Revenue

2014

Current Rate:

Special Use Restrictions:

History

2013

Based on continuingly stable receipts consistent with recent history

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 168,854 103,331 209,979 433,305 77,229 116,838 143,818 131,463 116,997 137,272 80,000 80,000

YoY % -4.4% -38.8% 103.2% 106.4% -82.2% 51.3% 23.1% -8.6% -11.0% 17.3% -41.7% 0.0% 32

NOTES:


Revenue:

Audit Revenue (General Fund)

$1,200,000

$1,000,000

$800,000

$600,000 Graphic $400,000

$200,000

$2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

2010

2011

01.500010.41309

2012

Current Rate:

Enabling Legislation:

City of Arvada

0.28%

2015

2016

2017 (R)

2018 (B)

N/A

Arvada Code ยง98-91

None

Budget Rationale:

Percentage of total 2016 General Fund Revenue

2014

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

Special Use Restrictions:

History

2013

Based on continuingly stable receipts consistent with recent history

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

$ $ $ $ $ $ $ $ $ $

Dollars N/A N/A 600,947 964,872 235,832 155,530 140,125 149,662 197,938 255,474 150,000 150,000

YoY % N/A N/A N/A 60.6% -75.6% -34.1% -9.9% 6.8% 32.3% 29.1% -41.3% 0.0% 33

NOTES: The City did not begin to record audit revenue separately from sales tax until 2009.


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 $2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

0.17%

2012

2013

Current Rate:

2014

2015

2016

2017 (R)

2018 (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 ยง94-36

Only for offsetting City expenditures for concrete replacement

Budget Rationale:

Percentage of total 2016 General Fund Revenue

2011

01.705012.46503

Special Use Restrictions:

History

2010

Based on continuingly stable receipts consistent with recent history

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 138,731 79,372 105,531 118,004 151,600 106,583 136,620 128,558 127,507 153,610 120,000 120,000

YoY % 34.6% -42.8% 33.0% 11.8% 28.5% -29.7% 28.2% -5.9% -0.8% 20.5% -21.9% 0.0% 34

NOTES:


Revenue:

Miscellaneous Recovered Costs

$1,200,000

$1,000,000

$800,000

$600,000 Graphic $400,000

$200,000

$2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017 (R)

2018 (B)

Oracle Account(s):

01.500010.44510, 46201, 46450, 46501, 46502, 46503, 46505, 46506, & 46601

Description:

Sources widely vary, including annual payments from AURA to cover the City's payments to Wheat Ridge per the agreement on Kipling Ridge, payments for copies of police reports, rebates from Xcel Energy for solar power, the City's annual rebate from JPMorgan for P-card usage, and lease payments for cellular towers on City property

Collecting Entity:

Current Rate:

Enabling Legislation:

City of Arvada

Special Use Restrictions:

Percentage of total 2016 General Fund Revenue 1.13%

Various

Generally none

Budget Rationale: History

Varies

Based on continuingly stable receipts consistent with recent history

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 432,375 583,886 707,702 639,485 305,285 735,370 788,634 779,507 757,168 1,025,731 778,395 773,395

YoY % 4.9% 35.0% 21.2% -9.6% -52.3% 140.9% 7.2% -1.2% -2.9% 35.5% -24.1% -0.6% 35

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

2006

form of sales and use taxes. In 1993, the electorate of

3.46%

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

2005

an additional increase, this time 0.25%, to further

0.25%

expand the Arvada Police Department.

With the

addition of this second tax increment dedicated to public safety, Arvada reached its current sales and use

1993 0.21%

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 2016 was as follows:

37


Revenue:

Sales Tax (PD Tax Increments)

$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 $2007

Oracle Account(s):

Description:

2008

2009

2012

2013

2014

Current Rate:

2015

2016

2017 (R)

2018 (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

2011

21.600000.41352 & 22.600000.41352

Collecting Entity:

Budget Rationale:

2010

Arvada Code ยง98-61 et seq.

Solely for police purposes as approved by election for each

Based on year-to-date figures for 2015 and continued growth consistent with past receipts for 2016

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 5,435,994 5,510,298 5,303,111 5,332,421 5,627,846 5,960,736 6,303,841 6,770,242 7,197,811 7,531,066 7,985,184 8,340,645

YoY % 19.8% 1.4% -3.8% 0.6% 5.5% 5.9% 5.8% 7.4% 6.3% 4.6% 6.0% 4.5% 38

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 of a Walmart in the Ralston Fields Urban Renewal Area in August of 2017.


Revenue:

Auto Use Tax (PD Tax Increments)

$1,200,000

$1,000,000

$800,000

$600,000 Graphic $400,000

$200,000

$2007

Oracle Account(s):

Description: Collecting Entity:

2008

2009

History

2011

2012

2013

2014

Current Rate:

21.600000.41354 & 22.600000.41354

2015

2016

2017 (R)

2018 (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: Budget Rationale:

2010

Arvada Code ยง98-61 et seq.

Solely for police purposes as approved by election for each

With several years of incredible growth since 2009, projections presume a "breather"; this runs consistent with presumptions for Specific Ownership Tax receipts

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 723,785 659,116 602,533 612,232 665,589 735,040 826,022 917,320 1,069,225 1,098,236 1,127,000 1,070,650

YoY % 9.4% -8.9% -8.6% 1.6% 8.7% 10.4% 12.4% 11.1% 16.6% 2.7% 2.6% -5.0% 39

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.


Revenue:

Building Use Tax (PD Tax Increments)

$1,200,000

$1,000,000

$800,000

$600,000 Graphic $400,000

$200,000

$2007

Oracle Account(s):

Description:

2008

2009

2012

2013

2014

Current Rate:

2015

2016

2017 (R)

2018 (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

2011

21.600000.41355 & 22.600000.41355

Collecting Entity:

Budget Rationale:

2010

Arvada Code ยง98-61 et seq. & Arvada Code ยง98-84 et seq.

Solely for police purposes as approved by election for each

While recognizing that building activity will likely remain highly elevated in the years to come, 2016 figures presume a base level of construction activity consistent with past years

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 251,675 234,128 313,191 267,030 272,959 365,783 442,784 679,350 799,710 1,042,523 371,195 372,655

YoY % -25.6% -7.0% 33.8% -14.7% 2.2% 34.0% 21.1% 53.4% 17.7% 30.4% -64.4% 0.4% 40

NOTES: The 2017-18 budget represents a base number that the City can rely upon through a ten-year model.


Revenue:

General Use Tax (PD Tax Increments)

$300,000

$250,000

$200,000

$150,000 Graphic $100,000

$50,000

$2007

Oracle Account(s):

Description:

2008

2009

2011

2012

2013

2014

Current Rate:

21.600000.41353 & 22.600000.41353

2015

2016

2017 (R)

2018 (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 ยง98-61 et seq.

Solely for police purposes as approved by election for each

Budget Rationale: History

2010

Based on continued growth consistent with past receipts

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 172,259 225,040 196,088 210,833 231,806 187,203 238,316 235,168 245,162 201,295 250,391 255,399

YoY % -10.0% 30.6% -12.9% 7.5% 9.9% -19.2% 27.3% -1.3% 4.2% -17.9% 24.4% 2.0% 41

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 fluxuates year to year.


Revenue:

Audit Revenue (PD Tax Increments)

$160,000 $140,000 $120,000 $100,000 $80,000 Graphic $60,000 $40,000 $20,000 $2007

Oracle Account(s):

Description:

2008

2009

2011

2012

2013

2014

2015

2016

Current Rate:

21.600000.41309 & 22.600000.41309

2017 (R)

2018 (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

Collecting Entity:

Enabling Legislation:

City of Arvada

Special Use Restrictions:

Arvada Code ยง98-91

Solely for police purposes as approved by election for each

Budget Rationale: History

2010

Based on continuingly stable receipts consistent with recent history

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

$ $ $ $ $ $ $ $ $ $

Dollars N/A N/A 92,145 147,947 36,159 23,846 21,483 22,944 12,132 39,170 22,000 22,000

YoY % N/A N/A N/A 60.6% -75.6% -34.1% -9.9% 6.8% -47.1% 222.9% -43.8% 0.0% 42

NOTES: The City did not begin to record audit revenue separately from sales tax until 2009.


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

Jefferson County Open Space

Fund –

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


Revenue:

Conservation Trust Fund

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

$300,000 $200,000 $100,000 $2007

2008

Oracle Account(s):

2009

2010

2011

2012

2013

2014

Current Rate:

03.2601.43401

2015

2016

2017 (R)

2018 (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, ยง3 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 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 539,626 543,785 508,600 479,326 491,441 538,321 587,297 530,706 539,560 633,297 561,055 566,666

YoY % -7.1% 0.8% -6.5% -5.8% 2.5% 9.5% 9.1% -9.6% 1.7% 17.4% -11.4% 1.0% 44

NOTES: The spike in revenue for 2016 was primarily due to a Powerball jackpot reaching $1.58 billion on January 13th of that year. Ticket sales for that single draw exceeded the total for the whole of the fourth quarter of 2015.


Revenue:

Jefferson County Open Space Sales Tax

$5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 Graphic $2,000,000 $1,500,000 $1,000,000 $500,000 $2007

2008

Oracle Account(s):

Description:

2011

2012

2013

2014

Current Rate:

2015

2016

2017 (R)

2018 (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 space‌and construction, acquiring and maintaining park and recreational capital improvements..."

Budget Rationale: History

2010

14.800000.43502

Collecting Entity: Special Use Restrictions:

2009

Based on continued growth consistent with past receipts

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 3,010,389 3,042,648 3,018,670 3,119,450 3,142,349 3,312,981 3,537,126 3,685,566 3,978,094 4,202,050 4,322,796 4,409,252

YoY % 4.3% 1.1% -0.8% 3.3% 0.7% 5.4% 6.8% 4.2% 7.9% 5.6% 2.9% 2.0% 45

NOTES: In 2007, the City began using all of its JeffCo Open Space revenue share for ongoing park operations and maintenance.


Revenue:

Adams County Transportation Sales Tax

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

Graphic

$60,000 $40,000 $20,000 $2007

2008

Oracle Account(s):

Description:

2009

2011

2012

2013

2014

Current Rate:

31.9001.43503

2015

2016

2017 (R)

2018 (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:

Enabling Legislation:

Adams County

Special Use Restrictions:

Adams County Resolution 06-01 [voter approved]

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

Budget Rationale: History

2010

Based on continuingly stable receipts consistent with recent history

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 164,809 167,933 73,158 66,936 62,729 112,681 80,201 73,560 88,000 101,741 67,531 69,556

YoY % 3.1% 1.9% -56.4% -8.5% -6.3% 79.6% -28.8% -8.3% 19.6% 15.6% -33.6% 3.0% 46

NOTES: A change in the municipal share due to Arvada caused the substantial drop beginning in 2009.


Revenue:

Adams County Open Space Sales Tax

$45,000 $40,000 $35,000 $30,000 $25,000 $20,000

Graphic

$15,000 $10,000 $5,000 $2007

2008

Oracle Account(s):

Description:

2009

2012

2013

2014

Current Rate:

2015

2016

2017 (R)

2018 (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

2011

31.9007.43502

Collecting Entity: Special Use Restrictions:

2010

Based on continuingly stable receipts consistent with recent history

Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (R) 2018 (B)

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

Dollars 21,998 24,758 26,417 24,871 24,236 25,285 40,697 28,655 28,295 35,395 28,138 28,982

YoY % 19.6% 12.5% 6.7% -5.9% -2.6% 4.3% 61.0% -29.6% -1.3% 25.1% -20.5% 3.0% 47

NOTES:


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

8101 Ralston Road Arvada, CO 80002


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City of Arvada December 2017 Revenue Manual by City of Arvada - Issuu