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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/19/2022 - SECOND READING OF ORDINANCE NO. 038, 2022, APPROPR Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY April 19, 2022 Accounting, Sales Tax, Treasury STAFF Blaine Dunn, Accounting Director Ingrid Decker, Legal SUBJECT Second Reading of Ordinance No. 038, 2022, Appropriating Prior Year Reserves in the Sales and Use Tax Fund for Transfer to the Natural Areas Fund and Appropriating Those Funds in the Natural Areas Fund. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on April 5, 2022, appropriates reserves in the Sales and Use Tax Fund, transfer them to the Natural Areas Fund and appropriate those funds in the Natural Areas Fund. These are funds due to the Natural Areas Fund through the ¼ cent Open Space Yes! ballot measure. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, April 5, 2022 (w/o attachments) (PDF) 2. Ordinance No. 038, 2022 (PDF) Agenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY April 5, 2022 Accounting, Sales Tax, Treasury STAFF Blaine Dunn, Accounting Director Ingrid Decker, Legal SUBJECT First Reading of Ordinance No. 038, 2022, Appropriating Prior Year Reserves in the Sales and Use Tax Fund for Transfer to the Natural Areas Fund and appropriating those funds in the Natural Areas Fund. EXECUTIVE SUMMARY The purpose of this item is to appropriate reserves in the Sales and Use Tax Fund, transfer them to the Natural Areas Fund and appropriate those funds in the Natural Areas Fund. These are funds due to the Natural Areas Fund through the ¼ cent Open Space Yes! ballot measure. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Funds are transferred monthly from the Sales and Use Tax Fund to the Natural Areas Fund. The ballot language for Open Space Yes! requires the ¼ cent tax to be received in the Sales and Use Tax Fund before being transferred to other funds. In years when there are higher sales and use tax collections than projected, there are not enough appropriations to transfer the full amount due to the Natural Areas Fund. This Ordinance transfers a portion of the remaining taxes due to the Natural Areas Fund. Once the final audited 2021 revenue is complete, staff will true up any additional amount due to the Natural Areas fund through the Annual Adjustment Ordinance. The funds are not available for any other use, as they are the tax collections of the Open Space Yes! ballot measure. The sales and use tax revenue received in 2021 was higher than projected and existing appropriations were not adequate to make the full transfer from the Sales and Use Tax Fund to the Natural Areas Fund for the one quarter cent Natural Areas tax. Adjustments to other funds are not needed because the tax revenues are recorded directly into those funds. This item appropriates additional funds in the amount of $1,700,000 from prior year reserves for transfer from the Sales and Use Tax Fund to the Natural Areas Fund and appropriates those funds in the Natural Areas Fund. CITY FINANCIAL IMPACTS This ordinance increases the total appropriations of the City in the Sales and Use Tax Fund by $1,700,000. The $1,700,000 will be transferred to the Natural Areas Fund and will then be appropriated for use in the Natural Areas Fund, increasing the total appropriations in that fund by the $1,700,000. ATTACHMENT 1 COPY -1- ORDINANCE NO. 038, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE SALES AND USE TAX FUND FOR TRANSFER TO THE NATURAL AREAS FUND AND APPROPRIATING THOSE FUNDS IN THE NATURAL AREAS FUND WHEREAS, the sales and use tax revenue received in 2021 was higher than projected and existing appropriations were not sufficient to transfer from the Sales and Use Tax Fund the full amount due to the Natural Ares Fund from the Open Space Yes 1/4 cent sales tax; and WHEREAS, the purpose of this Ordinance is to increase the total appropriations in the Sales and Use Tax Fund by $1,700,000, transfer that amount to the Natural Areas Fund, and then appropriate the funds transferred in the Natural Areas Fund; and WHEREAS, this appropriation benefits the public health, safety, and welfare of the residents of Fort Collins and serves the public purpose of providing funding from the Open Space Yes! ballot measure for expenditure by the City’s Natural Areas Department, as required by the ballot language approved by the voters; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon the recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, the Interim City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Sales and Use Fund and will not cause the total amount appropriated in the Sales and Use Tax Fund to exceed the current estimate of actual and anticipated revenues and all other funds to be received in this Fund during this 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 prior year reserves in the Sales and Use Tax Fund the sum of ONE MILLION SEVEN HUNDRED THOUSAND DOLLARS ($1,700,000) to be expended in the Sales and Use Tax Fund for transfer to the Natural Areas Fund and appropriated therein. -2- Introduced, considered favorably on first reading, and ordered published this 5th day of April, A.D. 2022, and to be presented for final passage on the 19th day of April, A.D. 2022. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 19th day of April, A.D. 2022 __________________________________ Mayor ATTEST: _______________________________ City Clerk