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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/21/2021 - FIRST READING OF ORDINANCE NO. 117, 2021, MAKING S Agenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY September 21, 2021 City Council STAFF Erik Martin, Operation Services Financial Analyst Ken Mannon, Operations Services Director Tracy Ochsner, Assistant Operations Services Director Keith Hanson, Real Estate Manager Ryan Malarky, Legal SUBJECT First Reading of Ordinance No. 117, 2021, Making Supplemental Appropriations for the Debt Service Payment for the Northern Colorado Drug Task Force Facility. EXECUTIVE SUMMARY The purpose of this item is to appropriate unanticipated revenue in the amount of $67,487 in the General Fund to pay for the debt service on the Northern Colorado Drug Task Force Building. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading . BACKGROUND / DISCUSSION The Northern Colorado Drug Task Force (NCDTF) is a joint venture between Fort Collins Police Services, Larimer County Sheriff’s Office, Loveland Police Department, the Larimer County District Attorney’s Office, and other law enforcement entities. The NCDTF’s primary office is a facility operated by the City of Fort Collins. This facility is part of a twenty-year lease/purchase financing arrangement with Zions First National Bank, affiliate of Vectra Bank Colorado, that helped fund the facility improvement s. The financing arrangement was in the original amount of $3,774,405, which applied to other properties in addition to the NCDTF facility. In previous years, when the City was the fiscal agent for the NCDTF, the debt service on the facility was paid for using grant funding. Now that the Larimer County Sheriff’s Office is the fiscal agent for the NCDTF, Larimer County makes the debt service payment to the City for payment to the Bank. 2021 will be the last year of the current debt service agreement. In 2 022, a new agreement with the NCDTF entities will be established regarding the facility. The payment from the County to the City is $67,486.95, and the debt service cost attributable to the NCDTF facility paid by the City in 2021 is $67,486.95. CITY FINANCIAL IMPACTS This action is financially neutral to the City, as unanticipated revenues received from the County will cover the 2021 expenditures for the debt obligations associated with the facility. -1- ORDINANCE NO. 117, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING SUPPLEMENTAL APPROPRIATIONS FOR THE DEBT SERVICE PAYMENT FOR THE NORTHERN COLORADO DRUG TASK FORCE FACILITY WHEREAS, the City is the lessee of a property (the “Property”) currently utilized by the Northern Colorado Drug Task Force; and WHEREAS, in 2001 the City entered into a twenty-year lease/purchase financing arrangement in the amount of $3,774,405 with Zions First National Bank, affiliate of Vectra Bank Colorado (the “Bank”), to fund improvements on the Property and other City property; and WHEREAS, as part of its current arrangement with the City, the County paid the City funds sufficient to cover the portion of the 2021 debt service payment attributable to the Property due from the City to the Bank in the amount of $67,487; and WHEREAS, this Ordinance authorizes the appropriation of this $67,487 from unanticipated revenue in the General Fund; and WHEREAS, this appropriation benefits public health, safety and welfare of the citizens of Fort Collins and serves the public purpose of providing facilities for use by law enforcement; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council, upon recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year; and WHEREAS, the Interim City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the General Fund and will not cause the total amount appropriated in the General Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in that fund during any fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated from unanticipated revenue in the General Fund the sum of SIXTY-SEVEN THOUSAND FOUR HUNDRED EIGHTY-SEVEN -2- DOLLARS ($67,487) for expenditure in the General Fund for the debt service payment for the Northern Colorado Drug Task Force facility. Introduced, considered favorably on first reading, and ordered published this 21st day of September, A.D. 2021, and to be presented for final passage on the 5th day of October, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk Passed and adopted on final reading on the 5th day of October, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk