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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/06/2001 - ITEMS RELATING TO THE 2002 DOWNTOWN DEVELOPMENT AU AGENDA ITEM SUMMARY ITEM NUMBER: 36 A-B FORT COLLINS CITY COUNCIL DATE: November 6,2001 STAFF: John F. Fischbach/ Alan Krcmarik SUBJECT: Items Relating to the 2002 Downtown Development Authority Budget. RECOMMENDATION: Staff recommends adoption of the Ordinances on First Reading. The Downtown Development Authority Board of Directors recommends adoption of Ordinance No. 195, 2001 on First Reading, and recommended adoption of a debt service budget for 2002 that has been modified by staff as described in Ordinance No. 196, 2001. FINANCIAL IMPACT: Ordinance No. 195, 2001 sets the Downtown Development Authority annual mill levy at 4.05 mills and appropriates $416,740 in the operating fund for 2002. The mill levy is projected to generate $237,120. The mill levy has been at this level since 1991. Ordinance No. 196, 2001 appropriates the tax increment revenue for debt service to be paid in 2002. The debt includes DDA revenue bonds, DDA subordinate revenue bonds, the DDA share of the lease purchase certificates of participation for the Civic Center Parking Structure, and monies for projects supported by the Tax Increment Revenues from the expansion of the DDA boundaries. The total tax increment revenue for 2002 is projected to be $1,991,772. The 2002 appropriation in the Downtown Development Authority Debt Service Fund is $1,739,456. EXECUTIVE SUMMARY: A. First Reading of Ordinance No. 195, 2001, Appropriating Operating Funds and Approving the Budget of the Downtown Development Authority for the Fiscal Year Beginning January 1, 2002, and Fixing the Mill Levy for the Downtown Development Authority for 2002. The Downtown Development Authority (the "DDA") adopted the proposed DDA budget for 2002, totaling $416,740, and determined the mill levy necessary to provide for payment of all properly authorized expenditures incurred by the District, at its regular meeting of November 1, 2001. B. First Reading of Ordinance No. 196, 2001, Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service for the Year 2002. This Ordinance appropriates funds for 2002 from the tax increment received by the City for the DDA for debt service payments. Debt service and annual lease payments include: the semi- annual payments of the 1992 DDA Refunding Revenue Bonds in the amount of$1,321,938, the DDA share of the Parking Structure lease payment of$282,406, the amount of$35,112 for the DATE: November 6, 2001 2 ITEM NUMBER: 36 A-B annual interest payment on the subordinate revenue bonds issued in 2000, and $100,000 for various projects identified by the DDA board from tax increment revenues from expanding the DDA boundaries to include the Mulberry/Lemay Crossing Property. BACKGROUND: Through action of the Council and the qualified electors, the City of Fort Collins created the Authority in 1981. According to the state statute, the purpose of the DDA is to plan and implement improvements within the boundaries of the Authority. The DDA established a Plan of Development that specified the types of projects that it would undertake. In order to undertake the plan of improvements, the City on behalf of the DDA has issued various bond anticipation notes and revenue bonds. The first issuance of revenue bonds for the DDA occurred in 1984. Subsequently, the bonds have been refunded to effect savings and to better match the tax increment of the authority with the debt service of the bonds. The first refunding of the bonds occurred in 1992 when the City issued $11,380,000 of Downtown Development Authority Tax Increment Revenue and Refunding Bonds. The most recent refunding of the bonds occurred in 2001. In April of 2001, the City issued $3,640,000 of Downtown Development Authority Tax Increment Revenue and Refunding Bonds. In accordance with the applicable state law, only the City may issue long-term debt on behalf of the Authority. The bond ordinances pledge tax increment revenues of the DDA to debt retirement and establish the debt service payments. The Charter requires that Council appropriate all funds that pass through City accounts. The tax increment from the DDA to be appropriated by the City flows directly into the debt service account. In 2002, the debt service on the 2001 bonds is $1,321,938. In addition to the debt service on the 2001 bonds, the DDA has entered into agreements or passed resolutions that use additional amounts of tax increment. According to an agreement with the City of Fort Collins and Larimer County, the DDA is to pay a share of the annual lease payment on the Civic Center Parking Structure. In 2002, the DDA share of the payment is $282,406. In 2000, the DDA also issued subordinate revenue bonds to participate in the financing of other improvements within the Authority's boundaries. This bond issued has an interest rate that readjusts with the prime rate of the Key Bank, the buyer of the bonds. Staff projects an interest rate on the bonds at 6.6%. This interest rate generates an annual interest payment of$35,112. In 2001, the DDA refunded its 1992 Bonds to create debt service savings. The interest rate decreased from about 6.5% to 3.5%. In 2001, the refunding reduced the DDA debt service payments by $214,000. The savings accumulate in the debt service fund and the City and DDA may use them for other projects. The DDA also anticipates that it will participate in additional improvements in the DDA area in 2002. The debt service appropriation Ordinance appropriates $100,000 for expenditure on three projects. The $100,000 will be used as follows: $35,000 for the Mulberry/Lemay intersection, $15,000 for the Poudre River Design Payments, and $50,000 for the Downtown Strategic Plan. DATE: November 6, 2001 3 ITEM NUMBER: 36 A-B In addition to the projects financed using the tax increment from the Authority, the DDA has the ability to impose a mill levy for the administration, operation, and maintenance of the entity. The mill levy for 2002 is 4.05 mills. The mill levy has been constant at this level since 1991. According to preliminary information from the County Assessor, this mill levy should generate $237,120 of revenue in 2002. The total operating budget for the DDA is $416,740. Staff has attached the corresponding resolutions adopted by the DDA Board of Directors. Staff recommends adoption of the two ordinances. I I I i ORDINANCE NO. 195, 2001 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING OPERATING FUNDS AND APPROVING THE BUDGET OF THE DOWNTOWN DEVELOPMENT AUTHORITY FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2002, AND FIXING THE MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2002 WHEREAS, the Fort Collins Downtown Development Authority (the "DDA") has been duly organized in accordance with Section 31-25-804, C.R.S.; and WHEREAS, on November 1, 2001, the Board of Directors of the DDA, under the provisions of Section 31-25-816, C.R.S., adopted a budget for the fiscal year beginning January 1, 2002, and determined the mill levy necessary to provide for payment during fiscal year 2002 of all properly authorized expenditures to be incurred by the DDA; and WHEREAS, it is the desire of the Council to approve said budget of the DDA and to appropriate the sum of FOUR HUNDRED SIXTEEN THOUSAND SEVEN HUNDRED FORTY DOLLARS ($416,740) for operation and maintenance of the DDA for the fiscal year beginning January 1, 2002 and ending December 31, 2002; and • WHEREAS, the Board of the DDA has recommended to the Council a mill levy of 4.05 mills upon each dollar of assessed valuation of all taxable property within the DDA District, such levy representing the amount of taxes for DDA purposes necessary to provide for payment during the ensuing fiscal year for all properly authorized expenditures to be incurred by the DDA; and WHEREAS, Section 39-5-128(1), C.R.S., requires certification of any tax levy to the Board of County Commissioners no later than December 15, 2001. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council has reviewed the DDA's 2002 Recommended Budget, as adopted by the Board of Directors of the DDA, and hereby approves said budget, which is on file in the Office of the City Clerk. Section 2. That there be, and hereby is, appropriated out of the revenues of the DDA for the fiscal year beginning January 1, 2002 and ending December 31, 2002, the sum of FOUR HUNDRED SIXTEEN THOUSAND SEVEN HUNDRED FORTY DOLLARS ($416,740), to be raised by taxation and otherwise, to be expended for the authorized purposes of the DDA. Section 3. That the 2002 mill levy rate for the taxation upon each dollar of the assessed valuation of all taxable property within the DDA District as of December 31, 2001, shall be 4.05 mills, which levy represents the amount of taxes for the District purposes to provide for payment during the aforementioned budget year of all properly authorized expenditures to be incurred by the District. Said mill levy shall be certified to the County Assessor and the Board of County Commissioners of Larimer County, Colorado by the City Clerk as provided by law. Introduced, considered favorably on first reading, and ordered published this 6th day of November, A.D. 2001, and to be presented for final passage on the 20th day of November, A.D. 2001. Mayor ATTEST: City Clerk Passed and adopted on final reading this 20th day of November,A.D. 2001. Mayor ATTEST: City Clerk ORDINANCE NO. 196, 2001 • OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING REVENUE IN THE DOWNTOWN DEVELOPMENT AUTHORITY DEBT SERVICE FUND FOR PAYMENT OF DEBT SERVICE FOR THE YEAR 2002 WHEREAS, the Council of the City of Fort Collins, in Ordinance No. 149, 1984, authorized the issuance of Tax Increment Refunded Bonds, Series 1984, dated October 1, 1984, in the aggregate principal amount of EIGHT MILLION TWO HUNDRED THOUSAND DOLLARS ($8,200,000); which bonds were subsequently refunded in 1985, 1988, 1992, and 2001; and WHEREAS, through the adoption of Ordinance No. 50, 2001, the City Council authorized the issuance of new Tax Increment Revenue and Refunding Bonds (the "2001 Bonds"), in order to invoke an early call provision on the City's 1992 Downtown Development Authority Tax Increment Revenue Refunding and Improvement Bonds, in the aggregate principal amount of THREE MILLION SIX HUNDRED FORTY THOUSAND DOLLARS ($3,640,000); and WHEREAS, interest on the 2001 Bonds is due and payable annually; and WHEREAS, the Downtown Development Authority (the "DDA") is a body corporate duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Downtown Development Authorities Act of the State of Colorado, Section 31-25-801, C.R.S. et seq. (the "Act"), and the powers of the authority include the power to borrow money and to finance public improvements within the boundaries of the DDA; and WHEREAS, Ordinance No. 50, 2001, also allows Council to appropriate tax increment funds for purposes of debt service payments for obligations other than those of the 2001 Bonds; and WHEREAS, on November 1, 2001, the Board of the DDA adopted a 2002 Budget that provided for the payment of debt service on the 2001 Bonds; and WHEREAS, in addition, the Board of the DDA is continuing its program to assist and encourage downtown renovation and revitalization, and in furtherance thereof, to provide funding for the acquisition and renovation of facades, construction and installation of public improvement, acquisition of property interests and any other purpose authorized under Section 31-25-801, C.R.S., et seq., through the appropriation of $100,000 in the Downtown Development Authority Debt Service Fund for various projects; and WHEREAS, the Council of the City of Fort Collins, in Ordinance No. 128, 1998, authorized the issuance by the City of Lease Certificates of Participation Series 1998, dated . August 1, 1998, in the aggregate amount of SEVENTEEN MILLION TWO HUNDRED TEN THOUSAND DOLLARS ($17,210,000) of which SIX MILLION NINE HUNDRED TWENTY THOUSAND DOLLARS ($6,920,000) is attributable to the Parking Structure; and, WHEREAS, pursuant to its intergovernmental agreement with the City and the County, the DDA has agreed to pay one-third of the lease payments attributable to the Parking Structure each year through 2006 for the financing of the Civic Center Parking Structure; and, WHEREAS, the DDA's share of the 2002 lease payments for the Parking Structure is $282,406; and WHEREAS, the Council of the City of Fort Collins, in Ordinance No. 10, 2000, authorized the issuance of Subordinate Tax Increment Revenue Bonds, Series 2000A dated March 1, 2000, in the aggregate amount of SIX HUNDRED EIGHT THOUSAND DOLLARS ($608,000) for financing several capital improvements in the downtown area(the "2000 Bonds"); and WHEREAS,the DDA's 2002 interest payment for the 2000 Bonds is $35,112; and WHEREAS, pursuant to Section 31-25-816, C.R.S., the DDA budget is subject to approval by the City Council. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of ONE MILLION THREE HUNDRED TWENTY-ONE THOUSAND NINE HUNDRED THIRTY-EIGHT DOLLARS ($1,321,938) for payment of debt service in 2002 on the 2001 Bonds authorized by Council in Ordinance No. 50, 2001. Section 2. That there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of TWO HUNDRED EIGHTY-TWO THOUSAND FOUR HUNDRED SIX DOLLARS ($282,406), which amount is hereby authorized for transfer to the City of Fort Collins General Fund to be used to cover the Downtown Development Authority's one-third share of the debt service payment on the Civic Center Parking Structure. Section 3. That there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of THIRTY-FIVE THOUSAND ONE HUNDRED TWELVE DOLLARS ($35,112) for interest payment in 2002 on the 2000 Bonds. Section 4. That there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of ONE HUNDRED THOUSAND DOLLARS ($100,000) to be used for the payment of debt to be created by future action of the City Council, in its discretion, for the following projects: • Mulberry/Lemay Intersection $35,000 • Poudre River Design Payments $15,000 • Downtown Strategic Plan $50,000 Introduced and considered favorably on first reading and ordered published this 6th day of November, A.D. 2001, and to be presented for final passage on the 20th day of November, A.D. 2001. Mayor ATTEST: City Clerk Passed and adopted on final reading this 20th day of November, A.D. 2001. . Mayor ATTEST: City Clerk RESOLUTION 01-04 OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY APPROVING AND RECOMMENDING TO THE FORT COLLINS CITY COUNCIL THE BUDGET OF THE ESTIMATED AMOUNTS REQUIRED TO PAY THE EXPENSES OF CONDUCTING THE BUSINESS OF THE DOWNTOWN DEVELOPMENT AUTHORITY FOR THE FISCAL YEAR ENDING DECEMBER 31, 2002. WHEREAS, the Fort Collins Downtown Development Authority has been duly organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended;and, WHEREAS,the Board of Directors of the Downtown Development Authority shall under Colorado Revised Statutes, 31-25-816, 1973 adopt a budget of the estimated revenues and expenditures to be received and incurred during fiscal year ending December 31, 2002. Revenues: Ad Valorem Taxes $237,120 Auto Specific Ownership Tax 30,900 Interest Earnings 15,000 Licenses and Permits 4,410 Miscellaneous 72,500 . UndesiQnated reserve 56,810 TOTAL $416,740 Expenses: Personal Services $133,946 Contractual Services 49,737 Commodities 2,650 Capital Outlay 192,500 Contingency 5,000 Principal repayment to City(Linden Street) 28,000 Interest payment to City(Linden Street) 4,907 TOTAL $416,740 NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY,that the budget set forth above be approved for the fiscal year ending December 31, 2002 and therefore recommends to the Council of the City of Fort Collins the adoption of this budget. Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 1 st day of November, 2001. Larry Stroud, Chairman ATTEST: Jason Meadors, Secretary/Treasurer RESOLUTION 01-05 OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RECOMMENDING TO THE FORT COLLINS CITY COUNCIL THE APPROPRIATION IN THE DOWNTOWN DEVELOPMENT AUTHORITY'S DEBT SERVICE FUND FOR PAYMENT OF DEBT SERVICE FOR THE FISCAL YEAR ENDING DECEMBER 31, 2002. WHEREAS, the Fort Collins Downtown Development Authority has been duly organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended; and, WHEREAS,pursuant to Ordinance No. 15, 1983, the Council of the City of Fort Collins established a special fund consisting of separate accounts for: (1) operation and maintenance expenses of the Fort Collins Downtown Development Authority; (2)tax increment funds received by the Fort Collins downtown Development Authority;and (3) project funds consisting of proceeds of bonds, loans, and other forms of indebtedness; and, WHEREAS, the Council of the City of Fort Collins, in Ordinance No. 36, 1992 authorized the issuance of Tax Increment Revenue Refunding and Improvement Bonds Series 1987, dated May 15, 1988, in the aggregate amount of ELEVEN MILLION THREE HUNDRED EIGHTY THOUSAND DOLLARS ($11,380,000); and, WHEREAS, Section 2 of Ordinance No. 95, 1987 provides that tax increment monies . will be pledged to the payment of interest on the Bonds; and, WHEREAS, interest on the bonds is due and payable; and WHEREAS, the Council of the City of Fort Collins, in Ordinance No. 128, 1998 authorized the issuance of Tax Increment Revenue Refunding and Lease Certificates of Participation Series 1998, dated August 1, 1998 in the aggregate amount of SEVENTEEN MILLION, TWO HUNDRED TEN THOUSAND DOLLARS ($17,210,000) of which SIX MILLION, NINE HUNDRED TWENTY THOUSAND DOLLARS ($6,920,000) is applicable to the Civic Center Parking Structure; and, WHEREAS, the Downtown Development Authority will participate in the financing of the Civic Center Parking Structure; and, WHEREAS,the Downtown Development Authority's share of the 2002 payments for the Parking Structure is $282,406. NOW,THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY as follows: Section 1. That it recommends to the Council of the City of Fort Collins the appropriation for expenditure in 2002 from the Downtown Development Authority Debt Service Fund, the sum of ONE MILLION THREE HUNDRED TWENTY ONE THOUSAND, NINE HUNDRED THIRTY EIGHT DOLLARS ($1,321,938) for payment of debt service for 2002 on the bonds authorized by City Council in Ordinance No. 36 1992. Section 2. That it recommends to the Council of the City of Fort Collins the appropriation for expenditure in 2002 from the Downtown Development Authority Debt Service Fund, the sum of TWO HUNDRED EIGHTY TWO THOUSAND, FOUR HUNDRED AND SIX DOLLARS ($282,406) for payment of debt service for 2002 on the bonds authorized by City Council in Ordinance No. 128, 1998. Section 3. That it recommends to the Council of the City of Fort Collins the appropriation for expenditure in 2002 from the Downtown Development Authority Debt Service Fund, the sum of THIRTY-FIVE THOUSAND ONE HUNDRED TWELVE DOLLARS ($35,112) for interest payment for 2002 on the bonds authorized by City Council in Ordinance No. 10, 2000. Section 4. That it recommends to the Council of the City of Fort Collins the appropriation for expenditure in 2002 from the Downtown Development Authority Debt Service Fund, the sum of ONE HUNDRED THOUSAND DOLLARS ($100,000) to be used as follows: * Mulberry/Lemay Intersection $35,000 * Poudre River Design Payments $15,000 * Downtown Strategic Plan $50,000 Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 1 st day of November, 2001. Larry Stroud, Chairman ATTEST: Jason Meadors, Secretary/Treasurer • RESOLUTION 01-06 OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RECOMMENDING TO THE FORT COLLINS CITY COUNCIL THE DETERMINING AND FIXING OF THE MILL LEVY OF THE DOWNTOWN DEVELOPMENT AUTHORITY FOR THE FISCAL YEAR ENDING DECEMBER 31, 2002 WHEREAS, the Fort Collins Downtown Development Authority has been duly organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended; and, WHEREAS, the Board of Directors of the Downtown Development Authority finds that a mill levy of 4.05 mills to be sufficient to meet the operational and administrative needs of the Authority for fiscal year 2002. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF FORT COLLINS, that a recommendation be made to the Council of the City of Fort Collins that the mill levy rate for taxation upon all the taxable property within the Downtown Development . Authority District for the fiscal year ending December 31, 2002 be set at 4.05 mills. This amount is sufficient to raise ad valorem revenues for the 2002 Operations and Maintenance Budget, as approved by the Downtown Development Authority, which levy represents the amount of taxes for the Downtown Development Authority(however, said mill levy is subject to change based on the Assessor's calculations which have not been published at this time). Said mill levy shall be distributed to General Expense, which levy as so distributed shall be certified by the County Assessor and the Board of the County Commissioners of Larimer County, Colorado by the City Clerk as provided by law. Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 1st day of November, 2001. ATTEST: Larry Stroud, Chairman Jason Meadors, Secretary •