Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/21/2000 - ITEMS RELATING TO THE 2001 DOWNTOWN DEVELOPMENT AU AGENDA ITEM SUMMARY ITEM NUMBER: 7 A-B DATE: November 21, 2000 FORT COLLINS CITY COUNCIL John F. Fischbach/ 110 FROM: Alan Krcmarik SUBJECT: Items Relating to the 2001 Downtown Development Authority Budget. RECOMMENDATION: Staff recommends adoption of the Ordinances on Second Reading. EXECUTIVE SUMMARY: A. Second Reading of Ordinance No. 156,2000,Appropriating Operating Funds and Approving the Budget of the Downtown Development Authority for the Fiscal Year Beginning January 1, 2001, and Fixing the Mill Levy for the Downtown Development Authority for 2001. The Downtown Development Authority(the"DDA")adapted the proposed DDA budget for 2001, totaling $322,617, and determined the mill levy necessary to provide for payment of all properly authorized expenditures incurred by the District, at its regular meeting of October 5, 2000. Ordinance No. 156, 2000, was unanimously adopted on First Reading on October 17, 2000. B. Second Reading of Ordinance No. 157, 2000, Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service for the Year 2001. This Ordinance,which was unanimously adopted on First Reading on October 17,2000,appropriates funds for 2001 from the tax increment received by the City for the DDA for debt service payments. AGENDA ITEM SUMMARY ITEM NUMBER: 39 A-B FORT COLLINS CITY COUNCIL DATE: October 17, 2000STAFF• John F. Fischbach/ Alan Krcmarik SUBJECT: Items Relating to the 2001 Downtown Development Authority Budget. RECOMMENDATION: CID Staff recommends adoptionCrecentWdspti dn irst Read g. The Downtown Development Authority Board of Directors Ordin No. 156,2000 on First Reading, and recommended adoption of a debt service budget for 2001 that has been modified by staff as described in Ordinance No. 157, 2000. FINANCIAL IMPACT: Ordinance No. 156,2000 sets the Downtown Development Authority annual mill levy at 4.05 mills and appropriates$322,617 in the operating fund for 2001. The mill levy is projected to generate$216,415. The annual appropriation includes$132,500 be transferred from the DDA debt service lumdthat will be for s ce on facade acquisitions and sidewalk improvements. Ordinance No. 157,2000 appropriates th ax incre nt rev u t se ' e to be paid in 2001 on DDA revenue bonds, DA subordinate revenue bonds,the tr r to t e erati for facad cquisitions and sidewalk improvements,and the DDA share of the lease purchase certt es of p cipa for the tc Center Parking Structure. The total tax increment revenue for 2001 is projected to be$1,815,463. The 2001 appropriation from the debt service fund is$1,758,542. EXECUTIVE SUMMARY: A. First Reading of Ordinance No. 156, 2000,Appropriating Operating Funds and Approving the Budget of the Downtown Development Authority for the Fiscal Year Beginning January 1, 2001, and Fixing ruthoritop ev pment Authority for 2001. The Downtown Developmepted a proposedDDAbudget for2001, totaling $322,617, and dete ry t vide for payment of all properly authorized expenditures incurred by the District, at its regular meeting of October 5, 2000. B. First Reading of Ordinance No. 157, 2000, Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service for the Year 2001. This Ordinance appropriates funds for 2001 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 on the 1992 DDA Refunding Revenue Bonds in the amount of$1,303,483,the DDA share of the Parking Structure lease payment of$282,429, the transfer of tax increment to the operating fund for facade acquisition and sidewalk improvements in the amount of$132,500,and the amount of$40,130 for the annual interest payment on the subordinate revenue bonds issued in 2000. DATE: October 17, 2000 2 ITEM NUMBER: 39 A-B 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 most recent refunding of the bonds occurred in 1992. In April of 1992,the City issu $11,38 of opeapplica n D opment Authority Tax Increment Revenue and Refunding Bond acc r nce state law,only the City may issue long-term debt on behalf of the u ority. e bonnances 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 2001, the debt service on the 1992 bonds is $1,303,483. In addition to the debt service on the 1992 bonds, the DDA has entered into agreements or passed resolutions that use additional amounts of tax increment. According to an agreement w' the t f Fo in d er County, the DDA is to pay a share of the annual lease pa ton th ivic n r azking tructure. In 2001, the DDA share of the payment is $282,429. 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$40,130. The DDA also anticipates that it will participate in additional improvements in the DDA area in 2001. The debt service appropri Ord ce rs to the DDA operating budget for expenditure on the additio prof c In addition to the projects fin d n e i me it fr 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 2001 is 4.05 mills. According to preliminary information from the County Assessor, this mill levy should generate$216,415 of revenue in 2001. The total operating budget for the DDA is $322,617. Staff has attached the corresponding resolutions adopted by the DDA Board of Directors. Staff recommends adoption of the two ordinances.