HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/16/2003 - SECOND READING OF ORDINANCE NO. 164, 2003, APPROPR ITEM NUMBER 7
AGENDA ITEM SUMMARY DATE December 16, 2003
FORT COLLINS CITY COUNCIL STAFF Alan Krcmank
SUBJECT
Second Reading of Ordinance No 164 2003 Appropriating Unanticipated Revenue in the Capital
Projects Fund For Transfer to the Capital Leasing Corporation Fund to be Used for Interest
Associated with the Debt Service Payments on the City Office Building at 215 North Mason Avenue
and the Civic Center Parking Structure
RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading
EXECUTIVE SUMMARY
In 1998 the City completed a Lease Certificates of Participation financing to provide the funding
for the Mason Street Office Building and the Parking Structure The total amount of financing was
$17 2 million During the design and construction phases the City Finance Department invested
the proceeds and earned more money than initially planned Although the project is substantially
complete money remains in the project's escrow Appropriate uses for the remaining funds include
project improvements and interest payments on the semi-annual lease payments Although the City
normally transfers money from its General Fund to the Capital Leasing Corporation Fund to pay the
interest on the lease payments this Ordinance, which was unanimously adopted on First Reading
on December 2 2003,transfers$718 668 from interest earnings in the Capital Projects Fund-Office
Building capital project to the Capital Leasing Corporation Fund to make the interest payments
ORDINANCE NO 164 2003
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE CAPITAL PROJECTS FUND
FOR TRANSFER TO THE CAPITAL LEASING CORPORATION FUND
TO BE USED TO FOR INTEREST ASSOCIATED WITH THE
DEBT SERVICE PAYMENTS ON THE
CITY OFFICE BUILDING AT 215 NORTH MASON AVENUE
AND THE CIVIC CENTER PARKING STRUCTURE
WHEREAS on August 4 1998 City Council adopted Ordinance No 128 1998 approving
and authorizing the City to enter into agreements in connection with the execution and delivery of
lease certificates of participation thereby approving a mechanism to secure funding for projects
associated with the Civic Center Plan including the Office Building, located at 215 N Mason and
the Civic Center Parking Structure (the Projects ) and
WHEREAS the total amount of financing for the"Projects' was$17 2 million dollars and
WHEREAS during the design and construction of the 'Projects,' proceeds from the
financing were invested and earnings on the invested funds were more than originally estimated
and
WHEREAS now that the Projects' are substantially complete the aforementioned interest
earnings totaling $718 668 are available in the Capital Projects Fund but have not yet been
appropriated and
WHEREAS the said interest earnings can be used for 'Project improvements and/or
payment of interest on semi-annual lease payments associated with the lease certificates of
participation and
WHEREAS the City's General Fund transfers money to the Capital Leasing Corporation
Fund annually,for the purpose of making debt service payments associated with the Project and
WHEREAS staff recommends using the unappropriated interest earnings on the lease
certificates of participation to pay interest on the Project debt service payments thereby saving the
General Fund$718 668 and
WHEREAS Article V Section 9 of the Charter of the City of Fort Collins (the Charter )
permits the City Council to make supplemental appropriations by ordinance at any time during the
fiscal year provided that the total amount of such supplemental appropriations in combination with
all previous appropriations for that fiscal year does not exceed the then current estimate of actual
and anticipated revenues to be received during any fiscal year, and
WHEREAS staff has determined that the appropriation of interest earnings on the issuance
of lease certificates of participation as described herein will not cause the total amount appropriated
in the Capital Projects Fund-Office Building capital project to exceed the then current estimate of
actual and anticipated revenues to be received during the fiscal year and
WHEREAS it is the desire of Council to appropriate the sum of$718 668 in unanticipated
interest earnings in the Capital Projects Fund - Office Building capital project for transfer to the
Capital Leasing Corporation Fund and appropriated therein to be used for interest associated with
the debt service payments on the City Office Building at 215 N Mason and the Civic Center Parking
Structure
NOW, THEREFORE BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that there is hereby appropriated for expenditure from unanticipated revenue in the
Capital Projects Fund - Office Building capital project for transfer to the Capital Leasing
Corporation Fund and appropriated therein the sum of SEVEN HUNDRED EIGHTEEN
THOUSAND SIX HUNDRED SIXTY-EIGHT ($718 668) in the form of interest earnings on the
proceeds from the issuance of lease purchase certificates of participation to be used for interest
associated with the debt service payments on the City Office Building at 215 N Mason and the Civic
Center Parking Structure
Introduced and considered favorably on first reading and ordered published this 2nd day of
December A D 2003 and to be presented for final passage on the 16th day of December A D
2003
Mayor
ATTEST //
A'a 14,145
City Clerk
Passed and adopted on final reading this 16th day of December A D 2003
Mayor
ATTEST
City Clerk
ITEM NUMBER 13
AGENDA ITEM SUMMARY DATE December2, 2003
FORT COLLINS CITY COUNCIL STAFF Alan Krcmank
SUBJECT
First Reading of Ordinance No 164 2003 Appropriating Unanticipated Revenue in the Capital
Projects Fund For Transfer to the Capital Leasing Corporation Fund to be Used for Interest
Associated with the Debt Service,PayMents on the City G fic. uilding at 215 North Mason Avenue
and the Civic Center Parking Structure
� s
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading
FINANCIAL IMPACT
By using interest earnings ont'leasepe(Illica o ip4Uon,;Yised to fund the Office Building
at 215 North Mason and theentazki re t6ilover the interest component of the
annual lease payments,the Csavone n General and The transfer from the project
totals $718 668 The savingGenera and wi be iden ical to this amount
EXECUTIVE SUMMARY
In 1998 the City completed a Lease Certificates of Participation financing to provide the funding
for the Mason Street Office Building and the Parking Structure The total amount of financing was
$17 2 million Dunng the design and construction hases the City Finance Department invested
the proceeds and earned more oneyythan mite ly 1 Ithough the project is substantially
complete money remains in t project' escro ate es for the remaining funds include
project improvements and trite t pay its on a nu-annua ease payments Although the City
normally transfers money from its eneral FtYnd tothe Capital asing Corporation Fund to pay the
interest on the lease payments, this Ordinance transfers $718 668 from interest earnings in the
Capital Projects Fund - Office Building capital project to the Capital Leasing Corporation Fund to
make the interest payments This will allow the City to freeze the appropriation from the General
Fund in effect providing more savings to the City s General Fund at the end of 2003