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2018 Adopted Annual Operating & Capital Improvement Budget

REVENUE ASSESSMENT Taxes

REVENUE ASSESSMENT Taxes & Special Assessments Taxes and special assessments represent the largest revenue category for the City, accounting for 81.2% of 2018 forecasted revenue. The category consists of property, specific ownership, sales, use, lodging, and occupational privilege taxes. Due to the material nature of these sources, each is discussed in more detail below. Property Tax Property taxes are generated via a mill levy on the assessed real and personal property located within the City. The city-wide mill levy consists of 2.932 mills used to support the general operating activities of the City. In 2018, property tax collections are expected to total $3.4 million, making up approximately 7.0% of the City’s total revenue. The amount represents an increase of 14.6% as compared to the prior year’s amended budget due to continued improvement in local residential and commercial property values. The County Assessor is responsible for identifying, classifying, and valuing all property in the County. The Assessor’s goal is to establish accurate values of all property located within the County, which in turn ensures that the tax burden is distributed fairly and equitably among all property owners. Real property is revalued every odd-numbered year, while personal property is revalued every year. The table below shows the current and historical assessed valuation of all real and personal property located within the City. Year Assessed Valuation % Change 2014 871,634,290 8.73% 2015 859,904,776 -1.35% 2016 982,360,897 14.24% 2017 993,812,028 1.17% 2018* 1,160,578,734 16.78% * Represents preliminary assessed valuation While property tax has historically remained one of the City’s more stable revenue sources, it is also one of the most regulated under State Statute. In accordance with the Gallagher Amendment enacted in 1982, the statewide total assessed valuation of residential versus commercial properties is calculated at 45% and 55% respectively. To accomplish this, the assessment rate for commercial properties is fixed at 29% of market value, while residential rates are adjusted during years of reappraisal to maintain the ratio. Prior to the Gallagher Amendment, the residential assessment rate was 30%. From 2003 through 2017 the rate remained stable at 7.96%; however, for 2018 the rate will decrease to 7.20%. The following table shows the City’s collection of property taxes for both residential and commercial property with an appraised value of $500,000: Residential Commercial Property Value $500,000 $500,000 Assessment Rate 7.2% 29.00% Assessed Value $36,000 $145,000 Greenwood Village Mill Levy 2.932 2.932 Annual Property Tax Obligation $105.55 $425.14 Sales Tax The City of Greenwood Village levies a 3.0% sales tax upon all sales, purchases, and leases of tangible personal property and taxable services. Sales tax is not imposed on the purchase of food for home consumption. Sales tax collections are forecasted to comprise $25.4 million or 51.9% of the total annual revenue, making the City especially reliant upon, and vulnerable to patterns in consumer and commercial spending. The following table shows the combined local sales tax rates by jurisdiction: 20

REVENUE ASSESSMENT Taxing Authority Tax Rate City of Greenwood Village 3.00% State of Colorado 2.90% Arapahoe County Open Spaces 0.25% Regional Transportation District 1.00% Scientific Cultural Facilities District 0.10% Total: 7.25% As a home-rule municipality, the City of Greenwood Village closely monitors sales tax collections through a selfcollection and audit program. Forecasts of sales tax are based on the detailed analysis of historical trends, evaluation of local and national economic indicators, and anticipated alterations to the local commercial/consumer environment. The following chart illustrates the sales tax trends and forecasts: $26.0 $25.0 $24.0 $23.0 $22.0 $21.0 $20.0 Sales Tax (in millions) 2014 Actuals 2015 Actuals Sales Tax (in millions) 2016 Actuals 2017 Amended Budget $25.28 Million 2017 Estimate 2018 Adopted Budget 21.78 24.16 24.65 25.00 25.35 As evident in the above chart, sales tax collections are forecasted to increase 0.29% over those of the prior year’s amended budget. The negligible increase is due to an unexpected recent flattening of sales tax collections. Thus, the City expects 2017 collections to fall slightly below initial forecasts. Due to the inherent sensitivity of sales tax to consumer and commercial spending, coupled with the continued volatility of the consumer confidence and retail sales indexes over the past twelve months, 2018 sales tax collections have been forecasted to increase 1.4% above those of the revised 2017 year-end estimates. Use Tax In addition to sales tax, the City also imposes a 3.0% use tax. Use taxes are levied upon the privilege to store, use, distribute, or consume tangible personal property located within the boundaries of the City. Such property is often initially purchased or leased outside of the jurisdictional boundaries of the community. Use tax complements sales tax by eliminating any tax advantage that out-of-jurisdiction retailers may have. Use tax is not due when the appropriate Greenwood Village sales tax has been paid or when another agency’s lawfully imposed sales or use tax has been paid at a rate equal to or greater than the City’s sales/use tax rate. Use tax is subdivided into two classifications, general use tax and building materials use tax. The building materials use tax applies when performing construction work which requires a building permit. The tax is estimated and paid prior to the issuance of the building permit. The estimated tax due is 3.0% of 60.0% percent of the total cost of construction. The first $3,500 of building materials are exempt from use tax. In 2018, general use tax and building materials use tax collections are forecasted at $3.3 million and $2.4 million, respectively. Overall use tax collections account for $5.7 million or roughly 11.6% of the City’s total revenue. Use tax collections are far more volatile than sales tax due to the often unpredictable commercial and development-related spending from which it is generated. Projections of use tax are based on a combination of historical trending, staff 21

  • Page 1: 2018 Annual Operating & Capital Imp
  • Page 4 and 5: TABLE OF CONTENTS Appendix Long-Ran
  • Page 6 and 7: DISTINGUISHED BUDGET PRESENTATION A
  • Page 8 and 9: GOVERNMENT PROFILE Organizational C
  • Page 10 and 11: GOVERNMENT PROFILE Organizational P
  • Page 12 and 13: GOVERNMENT PROFILE supports ongoing
  • Page 14 and 15: COMMUNITY PROFILE Transportation As
  • Page 16 and 17: COMMUNITY PROFILE Economic Developm
  • Page 18 and 19: ECONOMIC INDICATORS Consumer Confid
  • Page 20 and 21: BUDGET PROCESS Budget Calendar Janu
  • Page 22 and 23: BUDGET PROCESS Debt Service Funds a
  • Page 26 and 27: REVENUE ASSESSMENT discussions with
  • Page 28 and 29: REVENUE ASSESSMENT and park use. Re
  • Page 30 and 31: REVENUE ASSESSMENT Miscellaneous Re
  • Page 32 and 33: EXPENDITURE ASSESSMENT Personnel Pe
  • Page 34 and 35: EXPENDITURE ASSESSMENT Capital Outl
  • Page 36 and 37: OTHER SOURCES & USES Overview Since
  • Page 38 and 39: FUND BALANCE ANALYSIS 2018 Beginnin
  • Page 40 and 41: CITY-WIDE REVENUE DETAIL 2016 Audit
  • Page 42 and 43: CITY-WIDE EXPENDITURE DETAIL 2016 A
  • Page 44 and 45: FUND/DEPARTMENT APPROPRIATIONS Appr
  • Page 46 and 47: GENERAL FUND FINANCIAL SUMMARY Reve
  • Page 48 and 49: GENERAL FUND REVENUE DETAIL 2016 Au
  • Page 50 and 51: GENERAL FUND EXPENDITURE DETAIL 201
  • Page 52 and 53: MAYOR & COUNCIL Expenditure Detail
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  • Page 56 and 57: CITY MANAGER’S OFFICE Statement o
  • Page 58 and 59: COMMUNITY OUTREACH Statement of Pur
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  • Page 62 and 63: CITY ATTORNEY Personnel & Financial
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  • Page 66 and 67: MUNICIPAL JUDGE Expenditure Detail
  • Page 68 and 69: ADMINISTRATIVE SERVICES Personnel &
  • Page 70 and 71: ADMINISTRATION Statement of Purpose
  • Page 72 and 73: INFORMATION MANAGEMENT SERVICES Sta
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    MUNICIPAL COURT SERVICES Statement

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    HUMAN RESOURCE SERVICES Statement o

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    HUMAN RESOURCE SERVICES Expenditure

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    SHARED TECHNOLOGY SERVICES Outcome

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    SHARED TECHNOLOGY SERVICES Variance

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    FINANCE Personnel & Financial Summa

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    ADMINISTRATION Statement of Purpose

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    ACCOUNTING & FINANCIAL REPORTING St

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    ACCOUNTING & FINANCIAL REPORTING Va

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    TAXPAYER SERVICES Expenditure Detai

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    COMMUNITY DEVELOPMENT Personnel & F

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    ADMINISTRATION Statement of Purpose

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    PLANNING Statement of Purpose The P

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    BUILDING SAFETY Statement of Purpos

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    NEIGHBORHOOD SERVICES Statement of

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    NEIGHBORHOOD SERVICES Expenditure D

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    BUILDING SERVICES Service Level Ind

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    104

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    PARKS, TRAILS & RECREATION Organiza

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    PARKS, TRAILS & RECREATION Explanat

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    ADMINISTRATION Statement of Purpose

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    RECREATION Statement of Purpose The

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    RECREATION Expenditure Detail 2016

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    CULTURAL ARTS Statement of Purpose

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    CULTURAL ARTS Service Level Indicat

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    CULTURAL ARTS Variance Justificatio

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    PARKS, TRAILS & OPEN SPACE Expendit

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    PARKS & TRAILS MAINTENANCE Expendit

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    PARKS & TRAILS MAINTENANCE Expendit

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    PARKS & TRAILS MAINTENANCE Expendit

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    PARKS & TRAILS MAINTENANCE Expendit

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    POLICE Organizational Chart Chief o

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    POLICE Explanation of Budget Varian

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    ADMINISTRATION Statement of Purpose

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    ADMINISTRATION Variance Justificati

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    SUPPORT SERVICES Outcome Measures 9

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    SUPPORT SERVICES Variance Justifica

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    PATROL SERVICES Outcome Measures 20

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    PATROL SERVICES Variance Justificat

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    DETECTIVE SERVICES Expenditure Deta

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    150

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    PUBLIC WORKS Organizational Chart D

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    PUBLIC WORKS Expenditure Detail 201

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    ADMINISTRATION Expenditure Detail 2

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    ENVIRONMENTAL SERVICES Statement of

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    ENVIRONMENTAL SERVICES Expenditure

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    TRANSPORTATION Statement of Purpose

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    TRANSPORTATION Expenditure Detail 2

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    SNOW & ICE CONTROL Statement of Pur

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    ROADS Statement of Purpose The Road

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    ROADS Variance Justification Perso

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    FLEET MANAGEMENT Service Level Indi

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    174

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    176

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    CAPITAL PROJECTS FUND FINANCIAL SUM

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    CAPITAL PROJECTS FUND EXPENDITURE D

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    FIVE-YEAR CAPITAL PROJECT SUMMARY 2

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    184 PROJECT DETAILS

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    186 PROJECT DETAILS

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    188 PROJECT DETAILS

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    190 PROJECT DETAILS

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    192 PROJECT DETAILS

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    194 PROJECT DETAILS

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    196 PROJECT DETAILS

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    198 PROJECT DETAILS

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    200 PROJECT DETAILS

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    202 PROJECT DETAILS

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    204 PROJECT DETAILS

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    206 PROJECT DETAILS

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    208 PROJECT DETAILS

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    210 PROJECT DETAILS

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    212 PROJECT DETAILS

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    214 PROJECT DETAILS

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    216 PROJECT DETAILS

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    218 PROJECT DETAILS

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    220 PROJECT DETAILS

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    222 PROJECT DETAILS

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    224 PROJECT DETAILS

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    226 PROJECT DETAILS

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    228 PROJECT DETAILS

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    230 PROJECT DETAILS

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    232 PROJECT DETAILS

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    234 PROJECT DETAILS

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    236 PROJECT DETAILS

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    GENERAL FUND LONG-RANGE FINANCIAL P

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    PERSONNEL SUMMARY Full-Time Equival

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    PERSONNEL SUMMARY 2016 Audited Actu

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    FINANCIAL POLICIES Procurement Poli

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    GLOSSARY OF TERMS Acronyms CAFR: CI

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    GLOSSARY OF TERMS Contractual Servi

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    GLOSSARY OF TERMS Service Level Sou

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    252

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    254