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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/07/2000 - SECOND READING OF ORDINANCE NO. 23, 2000, APPROPRI AGENDA ITEM SUMMARY ITEM NUMBER: 14 FORT COLLINS CITY COUNCIL DATE: March 7, 2000 STAFF: Alan Krcmarik SUBJECT: Second Reading of Ordinance No. 23, 2000, Appropriating Unanticipated Revenue in the Capital Projects Fund for the Purpose of Constructing Improvements in the Downtown Area Consistent with the Mission of the Downtown Development Authority. RECOMMENDATION: The DDA Board of Directors and staff recommend adoption of this Ordinance on Second Reading. EXECUTIVE SUMMARY: Ordinance No. 23, 2000, which was adopted on First Reading on February 15, 2000, appropriates the transferred bond proceeds in the capital projects fund. $140,000 is the amount transferred from the Downtown Development Authority Fund for the Mason Street(Four Comers)project. For the Walnut Street . Sidewalk Improvements capital project,this Ordinance appropriates $45,000. NUMBER: 8 A-C AGENDA ITEM SUMMARY ITEM N U DATE: February 15, 2000 . FORT COLLINS CITY COUNCIL STAFF: Alan Krcmarik Jay Hardy SUBJECT: Items Related to the Issuance of City of Fort Collins Downtown Development Authority Subordinate Tax Increment Revenue Bonds, Series 2000. RECOMMENDATION: The DDA Board of Directors and staff ommend a-option 6f Ordinance No. 23, 2000 on First Reading and Ordinance No. 9 angOrdinkwe o. 4D,-2000 on-Second Reading. FINANCIAL IMPACT: A. Second Reading of Ordinance No. 9, 2000, Authorizing the Issuance of City of Fort Collins, Colorado, Do town Development Authority Subordinate Tax Increment Revenue Bonds, Seri _, 2000 ate eir Delivery Dnie, in the Aggregate Principal . Amount of $608,000 , r the P�PPose Financing Certain Capital Improvements and Capital Projects; and lwiding�or thel'Pledge of Certain Incremental Ad Valorem Tax Revenues to Pay the Principal of, Interest on and any Premium Due in Connection with the Redemption of the Bonds. EXECUi1*-S1WWM1R*Post offer to buy the bonds was submitted by Key Bank. Key Bank bid a rate of 5.775% which will reset as the prime rate changes. City staff has evaluated the Key Bank offer to buy and has found it to be in the City's best interest to accept the offer to buy the bonds. The Ordinance has been revised to reflect the variable interest rate of the bonds and the appropriate amounts. y The total sources and of th nd ceeds are itemized in the table below: Sources and Uses of Bond Proceeds a Sources: E Bond Proceeds $608,000 City Contribution for Administrative Costs 5,494 (this amount will come from previously appropriated funds in the Engineering Department) Total sources $613,494 Uses: Armstrong Hotel Project $240,000 401 West Mountain Project 170,800 DATE: February 15, 2000 2 ITEM NUMBER: 8 A-C Four Corners Project 140,000 Walnut Street Project 45,000 DDA Share of Issuance Costs 12,200 City Share of Issuance Costs 5,494 Total uses $613,494 B. Second Reading of Ordinance No. 10, 2000, Appropriating Proceeds from the Issuance of City of Fort Collins, Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 200Orfer the-Puip6se of Making Certain Capital Improvements in the > owntown Area of Foh CCo fins, Authorizing the Transfer of Appropriations Betw&m Funds .and Appropriating penditures from the DDA Debt Service Fund to Make the 2900 Pa to the Bon . Ordinance No.10, 2000, has been revised. The project managers met on February 4, 2000, and decided that money for the Four Comers and Walnut Street projects would have more flexibility if the amounts of money for the projects were transferred to the City capital projects fund. This helps the project managers because the appropriation does not lapse at year-end. Due to the need to coordinate these projects with several other downtown area improvements, there is some possibility that these two projects may not be completed by December 31, 2000. This ordinance has also been revised to lower tbe-egimate&2000 debt service-nests from $80,000 to $50,000. Annual debt service payments for ensuing years will e iaeluded in the annual appropriations ordinance. C. First Reading of Ordinance No. 23, 2000, Appropriating Unanticipated Revenue in the Capital Projects Fund for the Purpose of Constructing Improvements in the Downtown Area Consistent with the Mission of the Downtown Development Authority. The Budget Office has prepared a new appropriations ordinance, Ordinance No. 23, 2000, which appropriates the transferred bond proceeds in the capital projects fund. This Ordinance is being presented on First Reading. Second Reading will occur on March 7, 2000. This timeline fits the project manager's plan to begin theprovements in early 2000.