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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/02/2021 - FIRST READING OF ORDINANCE NO. 141, 2021, BEING TH Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY November 2, 2021 City Council STAFF Matt Robenalt, DDA Executive Director Kristy Klenk, DDA Financial Coordinator John Duval, Legal SUBJECT First Reading of Ordinance No. 141, 2021, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2022 and Fixing the Mill Levy for the Downtown Development Authority for Fiscal Year 2022. EXECUTIVE SUMMARY The purpose of this item is to set the Downtown Development Authority ("DDA") Budget. The following amounts will be appropriated: DDA Public/Private Investments & Programs $9,198,884 DDA Operations & Maintenance $1,801,024 Revolving Line of Credit Draws $7,000,000 DDA Debt Service Fund $7,431,611 The Ordinance sets the 2022 Mill Levy for the Fort Collins DDA at five (5) mills, unchanged since tax year 2002. The approved Budget becomes the Downtown Development Authority's financial plan for 2022. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The DDA was created in 1981 with the purpose, according to Colorado state statute, of planning and implementing projects and programs within the boundaries of the DDA. By state statute, the purpose of the ad valorem tax levied on all real and personal property in a downtown development district, not to exceed five (5) mills, shall be for the budgeted operations of the authority. The DDA and the City adopted a Plan of Development that specifies the projects and programs the DDA would undertake. To carry out the purposes of the State statute and the Plan of Development, the City, on behalf of the DDA, has issued various tax increment bonds, which require debt servicing. The DDA is requesting approval of the DDA Public/Private Investments and Programs budget for fiscal year 2022 in the amount of $9,198,884 and DDA Operation and Maintenance budget for fiscal year 2022 in the amount of $1,801,024. It is requesting appropriation of up to $7,000,000 for the 2022 Line of Credit draws. It is also requesting approval of the DDA debt payment commitments in the amount of $7,431,611 for 2022 obligations. Agenda Item 9 Item # 9 Page 2 The 2022 Public/Private Investments and Program budget is projected as follows: Uses: Alley Operations $ 72,759 Alley Capital Reserve Replacement 126,054 Alley Design and Construction (Tenney, W Oak) 1,025,438 Alley Design Phase 2 (2022 Design-3 alleys) 132,000 Alley Trash Enclosure Lease Payments 24,815 COVID-19 Business Recovery Reserve 114,610 Downtown River District Improvements (Willow St) 435,000 Façade Grant Program 163,470 Gateway Entrances 55,000 Oak 140 Pre-Development 85,792 Oak 140 Construction Capital 5,725,811 Old Town Square Operations 15,943 Old Town Square Capital Reserve Replacement 56,594 Projects and Programs 2021 Reserve 851,185 Tree Canopy 11,200 Urban Micro-Space Design Plan 113,314 Warehouse Operations 8,817 Other Public/Private Investments & Programs 181,082 Total $ 9,198,884 The 2022 Operations and Maintenance budget is projected as follows: Uses: Personnel Services $ 912,601 Contractual Professional Services 814,706 Purchased Supplies and Commodities 29,790 Other 43,927 Total $1,801,024 The 2022 Line of Credit draws, whose debt service payment will be made from the debt service fund, is projected to fund up to $7,000,000: Uses: Old Firehouse Alley Parking Garage IGA Payment $ 300,000 Housing Catalyst/FC DDA LLC Loan (Oak140) 121,869 Multi-Year Reimbursement Payments 596,090 Project Management Fees 162,121 Business Marketing and Communications Program 340,000 Capital Asset General Maintenance Obligations 691,561 Capital Asset Replacement Reserve 287,514 Capital Asset Reserve & Replacement Annual Program 122,000 Future Public/Private Investments & Programs 4,378,845 Total $7,000,000 The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments for 2022. Uses: Debt Payment: 2022 $7,431,611 CITY FINANCIAL IMPACTS Adoption of this Ordinance will have no direct financial impacts on the City and its budget. Agenda Item 9 Item # 9 Page 3 BOARD / COMMISSION RECOMMENDATION At its September 9, 2021, meeting, the Downtown Development Authority Board of Directors adopted its proposed budget for 2022 totaling $25,431,519 and determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA. The amount of $25,431,519 meets the reporting criteria of the City accounting standards but the DDA would like Council to be aware that the total amount does not directly reflect the anticipated revenues from Tax Increment or the 5 mills for 2022. The Public/Private Investments and Programs budget of $9,198,884 are previously appropriated unspent funds of which 62% is dedicated to the qualified affordable housing partnership with Housing Catalyst at 140 East Oak Street. The repayment of the Line of Credit of $7,000,000 is reported as part of the Debt Service Payment total and is then reported separately for anticipated uses. ATTACHMENTS 1. Boundary Map (PDF) 2. Resolution 2021-04 Determining and Fixing the Mill Levy (PDF) 3. Resolution 2021-05 Determining and Recommending the 2022 Budget (PDF) 4. Resolution 2021-06 Appropriation of the 2022 Line of Credit Draw Service (PDF) 5. Resolution 2021-07 Appropriation for Debt Service (PDF) 6. Resolution 2021-08 Appropriation of Public-Private Investments & Programs (PDF) C a c h e L a P o u d r e R i v e r I³ WXYZÕ E Vine Dr Riv e r s i d e A v eN College AveS Lemay AveS College Ave9th StE Lincoln Ave S Mason StS Howes StE Mulberry St W Laurel St Laporte Ave Remington StW Mulberry St N Lemay AveW Mountain Ave Jef f e r s o n S tN Mason StN Howes StESunigaRd E Mountain Ave Remington StNLe ma y AveSmith StE Elizabeth StMathews StPeterson StLocust St E Myrtle St Stover StWhedbee StLinden St12th StMaple St Cherry St Conifer St E Plum St W Oak St E Olive StW Olive St Will o w S t W Myrtle St Buckingham St E Oak St S Meldrum StHemlock St 1st StRedwood St3rd StS Whitcomb St2nd StDuff D r Lupine Dr W Magnolia StN Sherwood StN Whitcomb StC ajetanSt 10th StCanyon AveOsianderSt Cowan StN Meldrum StWoodwar dWay S Mason StJeromeStColorado StMain St Gold Dr Wal n u t S t Pascal St HoffmanMillRd O valDrEndicott StS Sherwood St11th StMulleinDrSycamore St Blue Spruce DrBellflower DrEast DrFrontage Rd E Laurel St WoodlawnDr Lesser DrPine StCordova RdE Magnolia St Lilac LnMartinez StN Mason StEl mSt W P lum S t LongleafLnTrujillo St Maso nCtR iv e n d alDrLopez Ct Eastdale D r Poudre R i v e r D rLindenCenterDr Rembrandt DrLocust CtLa Garita Ln Baum StSangre De Cristo Ln Kenroy CtE Magnolia St E Laurel St Frontage Rd E Laurel St Pine StDowntown Development Authority Boundary Parcels DDA Boundary Printed: October 01, 2017 1 inch = 1,320 feet. 0 0.25 0.50.125 Miles Amended: March 7, 2017 ATTACHMENT 1 ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 4 ATTACHMENT 5 ATTACHMENT 6 -1- ORDINANCE NO. 141, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE FOR THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2022 AND FIXING THE MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2022 WHEREAS, the Fort Collins Downtown Development Authority (the “DDA”) has been duly organized in accordance with the Colorado Revised Statutes (“C.R.S.”) Section 31-25-804; and WHEREAS, on September 8, 1981, the City Council adopted Resolution 81-129 approving DDA’s original Plan of Development dated July 1981, which Plan has been amended several times since 1981 (the “DDA Plan of Development”); and WHEREAS, on September 9, 2021, DDA Board of Directors (the “DDA Board”), acting under the provisions of C.R.S. Section 31-25-816, adopted a proposed and recommended DDA budget for the fiscal year beginning January 1, 2022, as reflected in DDA Board Resolutions 2021-05, 2021-06, 2021-07 and 2021-08 (the “Budget”), and determined the mill levy necessary to provide for payment during fiscal year 2022 of properly authorized operational and maintenance expenditures to be incurred by the DDA; and WHEREAS, the DDA anticipates receiving in 2022 tax increment revenues of approximately $6,705,708 and approximately $792,103 in revenues from its five-mill property tax for the DDA’s operational and maintenance expenditures; and WHEREAS, it is the desire of the Council to appropriate the sum of TWENTY-FIVE MILLION, FOUR HUNDRED THIRTY-ONE THOUSAND, FIVE HUNDRED NINETEEN DOLLARS ($25,431,519) from the DDA Operation and Maintenance Fund and the DDA Debt Service Fund for the fiscal year beginning January 1, 2022, and ending December 31, 2022, to be used as follows: DDA Public/Private Investments & Programs (O&M Fund) $9,198,884 DDA Operations & Maintenance (O&M Fund) 1,801,024 2022 Revolving Line of Credit Draws 7,000,000 DDA Debt Service Fund 7,431,611 Total $25,431,519 ; and WHEREAS, the DDA Board, as reflected in DDA Board Resolution 2021-04, has recommended to the Council that pursuant to C.R.S. Section 31-25-817 the Council set a mill levy of five (5) mills upon each dollar of assessed valuation on all taxable property within the DDA District, such levy representing the amount of taxes necessary to provide for payment during the 2022 fiscal year for all properly authorized operational and maintenance expenditures to be incurred by the DDA; and -2- WHEREAS, the amount of this proposed mill levy is not an increase over prior years and, as such, prior voter approval of the proposed levy is not required under Article X, Section 20 of the Colorado Constitution; and WHEREAS, C.R.S. Section 39-5-128(1) requires certification of this mill levy to the Larimer County Board of County Commissioners no later than December 15, 2021. 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 the City Council hereby approves the Budget as provided in C.R.S. Section 31-25-816(1). Section 3. That there is hereby appropriated for fiscal year 2022 for expenditure from the DDA Operation and Maintenance Fund for the Downtown Development Authority Public/Private Investments and Programs the sum of NINE MILLION, ONE HUNDRED NINETY-EIGHT THOUSAND, EIGHT HUNDRED EIGHTY-FOUR DOLLARS ($9,198,884), to be expended to fund the payment of the DDA-related obligations that have been entered into or will be entered into in furtherance of the DDA Plan of Development. Section 4. That there is also hereby appropriated for fiscal year 2022 for expenditure from the DDA Operation and Maintenance Fund for the Downtown Development Authority Operation and Maintenance the sum of ONE MILLION, EIGHT HUNDRED ONE THOUSAND, TWENTY-FOUR DOLLARS ($1,801,024), to be expended for the authorized purposes of the DDA. Section 5. That there is hereby appropriated for fiscal year 2022 for expenditure from the Downtown Development Authority 2022 Line of Credit draws the sum of up to SEVEN MILLION DOLLARS ($7,000,000), to be used to finance DDA projects or programs in accordance with the DDA Plan of Development including the multi-year reimbursement payments, and capital asset maintenance obligations. Section 6. That there is hereby appropriated for the fiscal year 2022 for expenditure from the Downtown Development Authority Debt Service Fund the sum of SEVEN MILLION, FOUR HUNDRED THIRTY-ONE THOUSAND, SIX HUNDRED ELEVEN DOLLARS ($7,431,611), for payment of debt service on a previously issued and outstanding bond, and for payment on the 2022 Line of Credit draws. Section 7. That the DDA’s mill levy rate for the taxation upon each dollar of the assessed valuation of all taxable property within the DDA District shall be five (5) mills to be imposed on the assessed value of such property as set by state law for property taxes payable in 2022, which levy represents the amount of taxes necessary to provide for payment during fiscal year 2022 of all properly authorized operational and maintenance expenditures to be incurred by -3- the DDA, as appropriated herein. The City Clerk shall certify said mill levy to the County Assessor and the Board of County Commissioners of Larimer County, Colorado, no later than December 15, 2021. Introduced, considered favorably on first reading, and ordered published this 2nd day of November, A.D. 2021, and to be presented for final passage on the 16th day of November, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk Passed and adopted on final reading on the 16th day of November, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ Interim City Clerk