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L Cityof <br />Louisville FINANCIAL POLICIES <br />COLORADO • SINCE 1878 <br />Revenue Policies <br />Policy Section: 4 <br />Adopted by Resolution No. _, Series <br />Effective Date: <br />Purpose and Scope <br />The City of Louisville collects revenue from various sources, the largest of which are from sales <br />and use taxes, utility fees, property taxes, and intergovernmental revenue. The structure, <br />equity, fluctuation, and collection of revenue are important for financial stability and are <br />reviewed by bond rating agencies to determine the City's credit quality. <br />Policies <br />4.1 Diversification and Stabilization. The City will strive to maintain a diversified and stable <br />revenue system to reduce the overall effects of fluctuations in any one revenue source. <br />4.2 Equity. Revenue will be derived from a fair, equitable, and adequate resource base, while <br />minimizing tax differential burdens. Services having a City -wide benefit shall be financed <br />with revenue sources generated from a broad base, such as sales taxes and property taxes. <br />Services where the customer determines the use shall be fully or partially financed with user <br />fees and charges related to the level of service provided. <br />4.3 Collections. The City will monitor all taxes, fees, and charges to make sure they are <br />equitably administered and collections are timely and accurate. The City will pursue <br />collection of delinquent amounts (including related penalties and interest) as authorized by <br />the Louisville Municipal Code. <br />4.4 Recurring and Non - recurring Revenue. The City's objective is to fund all recurring <br />expenditures with recurring revenue. Non - recurring, one -time revenue should be used to <br />fund only non - recurring, one -time expenditures. The preferred use of non - recurring revenue <br />is to invest in projects that will result in long -term operational cost savings. <br />4.5 Intergovernmental Revenue. The City will pursue intergovernmental aid, including grants, <br />for those programs and activities that address a recognized need and are consistent with <br />the City's goals and objectives, and will attempt to recover all allowable costs associated <br />with those programs. The City will avoid using grants for ongoing service delivery needs. <br />Any decision to pursue intergovernmental aid should only be made after consideration of the <br />present and future funding requirements, costs of administering the funds, costs associated <br />with special conditions or regulations attached to the aid, and ongoing operational costs <br />after the aid period. <br />26 <br />