Agenda Date: 08/21/2018
Subject:
Title
A resolution approving the adoption of a statement of budget policy pertaining to the capital projects reserve account
Body
Presented By:
Tiffany Hooten, Finance Department
REQUESTED COUNCIL ACTION:
Does city council support approving a resolution adopting a statement of budget policy pertaining to the capital projects reserve account for FY 2019 and subsequent budgets should voters assume funding for fire and emergency services?
BACKGROUND:
Earlier in 2018, staff presented a draft of Principles of Sound Financial Management policies for council's review. These principles establish guidelines for the city's overall fiscal planning and management and are intended to foster and support the continued financial strength and stability of the City of Littleton as reflected in its financial goals. The establishment of the capital projects reserve account will be incorporated into the Principles of Sound Financial Management policies.
The city funds its contribution to the Littleton Fire Rescue partnership through several sources of revenue including sales tax, emergency medical services transport fees, property taxes, and other fire-related revenues. The city's total fire budgeted expense in 2018 is approximately $7.1 million. The city does not have a dedicated revenue source to fund fire services. Unlike the city, special districts in Colorado are funded primarily by mill levies assessed on real and personal property within the district. South Metro Fire Rescue (SMFR) imposes a mill levy of 9.25 mills. Future increases in mill levies are subject to voter approval due to the Colorado Taxpayer's Bill of Rights (TABOR).
At its workshop on February 3, 2018, the council discussed inclusion with SMFR. The council reached consensus on the following:
1. Should a majority of the voters approve inclusion into SMFR and once the SMFR mill levy becomes effective, the city will reduce its mill levy by 4.662; thereby retaining 2 ...
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