Page 208 - Littleton, CO Comprehensive Plan

Fiscal Impact Analysis
The City of Littleton, CO

REVENUE FU N D STRUCTURE

Revenues are projected assuming that the City’s current revenue fund structure as defined by the
FY2019 budget will not change.

Of particular note is the following:

▪ All General Fund activities are included in this analysis.

▪ All active Special Revenue are included in this analysis.

▪ The Town uses Enterprise Funds/TABOR Enterprise Funds for Sewer Utilities and Stormwater
and Flood Management—because these funds are supported by user charges, any increase in
cost due to growth is offset by increases in rates. These and the other Enterprise Funds are
therefore not included in this FIA, since a growth-related increase in expenditures would be
offset by a proportionate increase in dedicated revenues.
▪ We did not include Internal Service Funds as distinct revenue funds in the analysis; rather, any
growth-related activities associated with these funds are accounted for elsewhere in the
model. For instance, variable Property and Liability Insurance Fund (“PLIF”) revenues are
included as departmental expenditures (e.g. General Operations transferred $600,000 to the
PLIF in FY2019).

INFLATION RATE

The rate of inflation is assumed to be zero throughout the projection period, and cost and revenue
projections are in constant 2019 dollars. This assumption is in accord with current budget data and
avoids the difficulty of forecasting as well as interpreting results expressed in inflated dollars. In
general, including inflation is complicated and unpredictable. This is particularly the case given that
some costs, such as salaries, increase at different rates than other operating and capital costs such as
contractual and building construction costs. These costs, in turn, almost always increase in variation
to the appreciation of real estate. Using constant 2019 dollars reinforces the snapshot approach and
avoids these problems.

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