HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/16/2021 - SECOND READING OF ORDINANCE NO. 141, 2021, BEING T Agenda Item 5
Item # 5 Page 1
AGENDA ITEM SUMMARY November 16, 2021
City Council
STAFF
Matt Robenalt, DDA Executive Director
Kristy Klenk, DDA Financial Coordinator
John Duval, Legal
SUBJECT
Second Reading of Ordinance No. 141, 2021, Being the Annual Appropri ation 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
This Ordinance, unanimously adopted on First Reading on November 2, 2021, sets 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 Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, November 2, 2021 (w/o attachments) (PDF)
2. Ordinance No. 141, 2021 (PDF)
Agenda Item
Item # 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. COPYATTACHMENT 1
Agenda Item
Item # 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. COPY
Agenda Item
Item # 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) COPY
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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
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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
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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