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HomeMy WebLinkAboutBocc Packet 12182013 County Sales Tax Revenue DistributionAGENDA ITEM SUMMARY REGULAR MEETING DATE: December 18, 2013 AGENDA ITEM TITLE: First Reading - Resolution establishing the formula for distribution of the municipal share of County Sales Tax revenue for the year 2014 as required by resolution 78-121 STAFF RESPONSIBLE: John Redmond and Susan Atwood ISSUE STATEMENT: The County is required to annually change the distribution of the 2% County wide sales tax that is shared with the local municipalities, pursuant to methodology outlined in resolution 78-121. BACKGROUND: Resolution 78-121 established that 57% of the 2% County Sales Tax would be distributed to municipalities within the County, based on the percentage of city sales tax collected within each jurisdiction during a rolling two-year period from September through August. The County's portion of the 2% sales tax remains at 43%. The distribution of the 1.5% sales tax to support transit activities is not affected, nor is the 0.1% sales tax for the Healthy Rivers & Streams fund. The sharing of the sales tax with municipalities was negotiated in 1978 and changing the allocation of the municipal distribution annually is mandatory. LINK TO STRATEGIC PLAN: By sharing the sales tax, the County exhibits its regional partnerships with local municipalities. Revenues from sales tax support general operations to provide fiscal sustainability. KEY DISCUSSION ITEMS: The 2014 distribution of the 57% of revenue generated by the 2% County Sales tax will be as follows: City of Aspen 75.4939% Town of Snowmass 19.8302% Town of Basalt 4.6759% 2014 2014 57% Allocation 100% Allocation 20% ■ Aspen ■Aspen L 5% 3% 43% ■ Basalt ■ Basalt ■ Snowmass 75% ■ Snowmass ■Pitkin County 4V 11% The 2% salestax allocation historically (estimated 2014 budget in italics with 5 years of actual collections): Which equates to the following dollar amounts distributed to the municipalities: Aspen Snowmass Snowmass Basalt Total 2% Pitkin County 7,371,805 % inc(decr) % inc(decr) % inc(decr) 1,454,334 2014 43.0315% -1.2% 11.3032% 2.2% 2.6653% 13.7% 43.00% 2013 43.5986% .01% 11.0578% 0.5% 2.3437% -4.0% 43.00% 2012 43.5563% 1.2% 11.0024% -0.3% 2.4413% -16.1% 43.00% 2011 43.0611% 0.3% 11.0305% -1.2% 2.9084% 0.3% 43.00% 2010 42.9380% -0.3% 11.1634% -1.0% 2.8986% 9.2% 43.00% 2009 43.0702% -1.5% 11.2748% 0.5% 2.6550% 29.8% 43.00% Which equates to the following dollar amounts distributed to the municipalities: Copies of the proposed resolution have been sent to the above municipalities and they have not notified us of any changes. BUDGETARY IMPACT: None - the County's share of the 2% sales tax distribution remains at 43% of the total collections. RECOMMENDED BOCC ACTION: Adopt the resolution as part of the consent agenda. ATTACHMENTS: Attachement A showing the calculation of the 57% allocation and the Resolution establishing the formula for the distribution of the municipal share of County Sales tax Revenue for 2014. Aspen Snowmass Basalt Pitkin County Total 2% 2014 Budget 7,371,805 1,936,373 456,589 7,366,404 17,131,171 2013 YTD (Jan -Sept) 5,734,137 1,454,334 308,246 5,655,395 13,152,112 2012 6,807,032 1,723,668 395,090 6,733,491 15,659,281 2011 6,551,871 1,678,328 442,513 6,542,572 15,215,285 2010 6,075,201 1,579,489 410,112 6,083,974 14,148,776 2009 5,724,719 1,498,607 352,893 5,715,393 13,291,612 Copies of the proposed resolution have been sent to the above municipalities and they have not notified us of any changes. BUDGETARY IMPACT: None - the County's share of the 2% sales tax distribution remains at 43% of the total collections. RECOMMENDED BOCC ACTION: Adopt the resolution as part of the consent agenda. ATTACHMENTS: Attachement A showing the calculation of the 57% allocation and the Resolution establishing the formula for the distribution of the municipal share of County Sales tax Revenue for 2014. RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO, ESTABLISHING THE FORMULA FOR THE DISTRI- BUTION OF THE MUNICIPAL SHARE OF COUNTY SALES TAX REVENUE FOR THE YEAR 2014 AS REQUIRED BY RESOLUTION 78-121 RESOLUTION 9 -2014 RECITALS 1. The Board of County Commissioners, by its Resolution No. 78-121 did submit to the electorate an initiative establishing a method of distribution of the proceeds from County -wide sales tax among municipalities with Pitkin County, and 2. The method, as approved by the electorate on November 7, 1978 reserves 43% of the revenues for the County, and allocates the remaining 57% to the municipalities according to the amount of County sales tax collected within their jurisdictions, and 3. The Board has calculated the share of the various municipalities in accordance with the methodology required by Resolution 78-121 and wishes to make its findings of record as per attached Addendum A. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Pitkin County, Colorado, that, effective January 1, 2014 the 57% municipal share of County sales tax proceeds allocated to municipalities within Pitkin County shall be distributed in the following percentages: City of Aspen, Colorado 75.4939% Town of Snowmass Village, Colorado 19.8302% Town of Basalt, Colorado 4.6759% BE IT FURTHER RESOLVED, that the above new percentage distribution shall apply only to those sales tax revenues actually collected during 2014. BE IT FURTHER RESOLVED, that the Colorado Department of Revenue, Sales Tax Division, be notified of the action herein taken. INTRODUCED, FIRST READ AND SET FOR PUBLIC HEARING ON THE DAY OF 2013. NOTICE OF PUBLIC HEARING AND TITLE AND SHORT SUMMARY OF THE RESOLUTION PUBLISHED IN THE ASPEN TIMES WEEKLY ON THE DAY OF 2013. NOTICE OF PUBLIC HEARING AND THE FULL TEXT OF THE RESOLUTION POSTED ON THE OFFICIAL PITKIN COUNTY WEBSITE (www.aspenpitkin.com) ON THE DAY OF 2013. ADOPTED AFTER FINAL READING AND PUBLIC HEARING ON THE DAY OF 2014. PUBLISHED BY TITLE AND SHORT SUMMARY, AFTER ADOPTION, IN THE ASPEN TIMES WEEKLY ON THE DAY OF 2014. POSTED BY TITLE AND SHORT SUMMARY ON THE OFFICIAL PITKIN COUNTY WEBSITE (www.aspengitkin.com) ON THE DAY OF 2014. ATTEST: Jeanette Jones Deputy County Clerk APPROVED AS TO FORM: John Ely, County Attorney BOARD OF COUNTY COMMISSIONERS By George Newman, Chairman Date: MANAGER APPROVAL: Jon Peacock, County Manager