HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/19/2022 - FIRST READING OF ORDINANCE NO. 046, 2022, APPROPRI Agenda Item 13
Item # 13 Page 1
AGENDA ITEM SUMMARY April 19, 2022
Communication & Public Involvement
STAFF
Amanda King, Communications/Public Involvement Director
Jim McDonald, Cultural Services Director
Chris Martinez, Financial & Policy Analyst
Ingrid Decker, Legal
SUBJECT
First Reading of Ordinance No. 046, 2022, Appropriating Prior Year Reserves in the General Fund for Cultural
Development and Programming Activities, Tourism Programming, and Convention and Visitor Program
Services.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate $292,114, of which $181,643 is proposed for Cultural Development
and Programming Activities (Fort Fund) and $110,471 is proposed for Tourism Programming (Fort Fund) from
a combination of Lodging Tax and Prior Year Reserves (unspent appropriations) in the General Fund Lodging
Tax Reserves.
Lodging taxes are annually collected by the City for Cultural Development and Tourism programming activities.
Anticipated revenue is projected through each Budgeting for Outcomes (BFO) cycle and then adjusted
annually as needed based on final actual collections. Due to continued recovery from the pandemic, Lodging
Tax revenues collected for 2021 came in $38,516 below projected collections.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Section 25-44 of the City Code requires that 75% of the total lodging tax receipts be used for the promotion of
convention and visitor activities in the City and 25% of receipts be used for cultural development and
programming activities in the City. Actual revenue collected is appropriated based on this allocation formula
and any excess revenue and budget savings are reserved for these activities in the General Fund.
Pursuant to a contract with the Fort Collins Convention and Visitors Bureau (FCCVB), the City has paid a
portion of lodging tax receipts to the FCCVB since 2011 for delivery of convention and visitors programming
services in furtherance of the City Code requirement. The City’s contract with the FCCVB does not guarantee
the FCCVB a fixed dollar amount for its services. The amount due for convention and visitors programming is
appropriated based on prior year receipts and paid annually to FCCVB after the close of the prior tax year .
In the past, when actual lodging tax receipts exceed the anticipated amount appropriated for cultural
development and programming activities, the City would appropriate additional funds and adjust the amount
allocated for those activities in the year fo llowing the year in which the tax is collected. For 2022, given the
shortfall in 2021 lodging tax receipts, the City must reduce the funding for these 2022 activities from what was
estimated in the 2021 Adopted Budget by the same prescriptive percentage. Also, any appropriated lodging
Agenda Item 13
Item # 13 Page 2
tax revenues remaining unspent at the end of the tax year lapse into the General Fund and may be
appropriated the following year for the same purposes as they were originally appropriated.
The actual tax revenue collected during the 2021 tax year, as determined March 2022, was $38,516 less than
the lodging tax revenue anticipated and appropriated for expenditure in 2021. Accordingly, downward
adjustments to the 2022 appropriations under Section 25 -44 of the City Code are required. In addition, budget
staff has recommended unspent appropriations for convention and visitor activities and cultural development
and programming activities that lapsed into the General Fund in 2021 be re -appropriated in 2022 for the same
purposes as originally appropriated. These appropriation adjustments are described below.
CITY FINANCIAL IMPACTS
Section 25-44 of the City Code:25%
Promote Cultural Development
& Programming
503200 503202 503201
Lodging Tax
Convention &
Visitors Bureau
70%
Fort Fund
(Tourism
Programming)
5%
Fort Fund
(Cultural Development &
Programming)
25%Total
Unanticipated Lodging Tax Collection Shortfall (26,961)$ (1,926)$ (9,629)$ (38,516)$
Unspent Appropriations -$ 112,397$ 191,272$ 303,669$
Total of Unanticipated Lodging Tax and
Unspent Appropriations Available for 2022 (26,961)$ 110,471$ 181,643$ 265,153$
2022 LODGING TAX CLARIFICATION
75%
Promote Convention
& Visitor Activities
-1-
ORDINANCE NO. 046, 2022
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND
FOR CULTURAL DEVELOPMENT AND PROGRAMMING ACTIVITIES,
TOURISM PROGRAMMING, AND CONVENTION AND
VISITOR PROGRAM SERVICES
WHEREAS, Section 25-244 of the Code of the City of Fort Collins requires that the City
allocated 75% of Lodging Tax revenue for the promotion of convention and visitor activities and
25% for cultural development and programming activities; and
WHEREAS, Lodging Tax revenue was estimated at $1,619,877 for 2021 and
appropriated; however, actual Lodging Tax receipts were less than projected due to the impact of
the COVID-19 pandemic on travel and tourism; and
WHEREAS, at the end of 2021, a total of $1,581,361 in Lodging Tax revenues had been
collected; and
WHEREAS, unexpended 2021 appropriations of Lodging Tax revenue in the amount of
$292,114 have lapsed and were returned to the General Fund, and are to be appropriated for
Lodging Tax programs and activities based on the use specified when they were first
appropriated, as follows:
Cultural Development and Programming $181,643
Tourism Programming $110,471; and
WHEREAS, these additional funds will help support a future Fort Fund grant process;
and
WHEREAS, this appropriation benefits public health, safety and welfare of the citizens
of Fort Collins and serves the public purpose of promoting visitor activity and cultural
development and programming activities; 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 f rom 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 this Fund
during this fiscal year; and
-2-
WHEREAS, the City wishes to appropriate funds allocated for Cultural Development and
Programming and Tourism Programming.
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 appropriates for expenditure from prior year
reserves in the General Fund the sum of ONE HUNDRED EIGHTY-ONE THOUSAND SIX
HUNDRED FORTY-THREE DOLLARS ($181,643) to be expended in the General Fund for
Cultural Development and Programming activities.
Section 3. That the City Council hereby appropriates for expenditure from prior year
reserves in the General Fund the sum of ONE HUNDRED TEN THOUSAND FOUR
HUNDRED SEVENTY-ONE DOLLARS ($110,471) to be expended in the General Fund for
Tourism Programming.
Introduced, considered favorably on first reading, and ordered published this 19th day of
April, A.D. 2022, and to be presented for final passage on the 3rd day of May, A.D. 2022.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on 3rd day of May, A.D. 2022.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk