HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/02/1999 - ITEMS RELATING TO THE 2000 DOWNTOWN DEVELOPMENT AU AGENDA ITEM SUMMARY ITEM NUMBER: 32 A-B
DATE: November 2, 1999
. FORT COLLINS CITY COUNCIL STAFF: John F. Fischbach/
Alan Krcmarik
SUBJECT:
Items Relating to the 2000 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. 172, 1999 on First Reading,
and recommended adoption of a debt service budget for 2000 that has been modified by staff as
described in Ordinance No. 173, 1999.
FINANCIAL IMPACT:
These Ordinances represent the annual appropriation for 2000 of $281,163, and approve the
Downtown Development Authority Operating Budget for 2000. They also set the DDA mill levy
• at 4.05 mills and appropriate the Downtown Development Authority Debt Service funds for 2000
in the amount of$1,650,949.
EXECUTIVE SUMMARY:
A. First Reading of Ordinance No. 172, 1999,Appropriating Operating Funds and Approving
the Budget of the Downtown Development Authority for the Fiscal Year Beginning January
1,2000,and Fixing the Mill Levy for the Downtown Development Authority for Fiscal Year
2000.
The Downtown Development Authority (the"DDA")adopted the proposed DDA budget for 2000,
totaling $281,163, 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 20, 1999.
B. First Reading of Ordinance No.173, 1999, Appropriating Revenue in the Downtown
Development Authority Debt Service Fund for Payment of Debt Service for the Year 2000.
This Ordinance appropriates funds for the payment of debt service related to DDA projects for 2000,
• as approved by the DDA Board on October 7, 1999. Included in this Ordinance is a recommended
appropriation of $100,000 to be used for debt service obligations incurred by the City for the
acquisition and renovation of facades, construction and installation of public improvements and
acquisitions of property interest. City staff is recommending the Council appropriate $282,129, in
the DDA Debt Service Fund budget approved by the DDA Board. This appropriation represents the
DATE: November 2, 1999 2 ITEM NUMBER: 32 A-B
DDA's share of the annual payment on the certificates of participation used to finance the Civic
Center Parking Structure. According to agreements between the City, the County, and the DDA,
each party will be responsible for one-third of the lease payments attributable to the parking structure
for the period 1999 - 2006.After 2006,when the DDA tax increment sunsets,the City and County
will equally share in the DDA's commitment through 2016.
On May 17, 1988, Council adopted Ordinance No. 95, 1987 authorizing the issuance of tax
increment bonds,pledging tax increment revenues to debt retirement,and requiring payment toward
that debt retirement on a scheduled basis over the life of the bonds. The Charter requires that all
funds which pass through City accounts be appropriated by Council. The tax increment revenue to
be appropriated flows directly into the debt service account.
In April of 1992,the City issued$11,380,000 of Downtown Development Authority Tax Increment
Revenue and Refunding Bonds. In accordance with the applicable Colorado law,only the City may
issue long-term debt on behalf of the Authority. The primary purpose of this bond issue was to
invoke an early call provision on the City's 1988 Downtown Development Authority Tax Increment
Revenue Refunding and Improvement Bonds. Since no Downtown Development Authority projects
were pending,a majority of the remaining proceeds,held in the Downtown Development Authority
Capital Projects Fund were no longer needed and the related bonds were called. In addition, the
remainder of the bond issue was refunded due to favorable interest rates. The new bonds mature
through December 1, 2007, with coupons ranging from 5.00%to 7.75%.
ORDINANCE NO. 172, 1999
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, 2000, AND FIXING
THE MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY
FOR FISCAL YEAR 2000
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 October 20, 1999,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, 2000, and
determined the mill levy necessary to provide for payment during fiscal year 2000 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 TWO HUNDRED EIGHTY-ONE THOUSAND ONE HUNDRED SIXTY-
THREE DOLLARS ($281,163) for operation and maintenance of the DDA for the fiscal year
beginning January 1, 2000 and ending December 31,2000; 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, 1999.
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 2000 Recommended Budget, as
adopted by the Board of Directors of the DDA, and 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 1,2000 and ending December 31,2000,the sum of TWO HUNDRED
EIGHTY-ONE THOUSAND ONE HUNDRED SIXTY-THREE DOLLARS ($281,163), to be
raised by taxation and otherwise, to be expended for the authorized purposes of the DDA.
Section 3. That the 2000 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, 1999, 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 2nd day of
November, A.D. 1999, and to be presented for final passage on the 16th day of November, A.D.
1999.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 16th day of November, A.D. 1999.
Mayor
ATTEST:
City Clerk
ORDINANCE NO. 173, 1999
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 2000
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, and 1992; and
WHEREAS,throughthe adoptionof OrdinanceNo.36, 1992,the City Council most recently
authorized the issuance of new Tax Increment Revenue and Refunding Bonds(the"1992 Bonds"),
in order to invoke an early call provision on the City's 1988 Downtown Development Authority Tax
Increment Revenue Refunding and Improvement Bonds, in the aggregate principal amount of
ELEVEN MILLION THREE HUNDRED EIGHTY THOUSAND DOLLARS ($11,380,000); and
WHEREAS, interest on the 1992 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
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.36, 1992,also allows Council to appropriate tax increment funds
for purposes of debt service payments for obligations other than those of the 1992 Bonds; and
WHEREAS,on October 7, 1999,the Board of the DDA adopted a 2000 Budget that provided
for the payment of debt service on the 1992 Bonds; and
WHEREAS, in addition, the Board of the DDA is continuing its program to assist and
encourage downtown renovation and revitalization by providing funding to pay debt service incurred
for the acquisition and renovation of facades, construction and installation of public improvement,
acquisitions ofproperty interests and any other purpose authorized under CRS 31-25-801 et sec.,and
the fiords received for this purpose must be transferred from the Downtown Development Authority
Debt Service Fund to the Downtown Development Authority Operations and Maintenance Fund;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 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 2000 payments for the
Parking Structure is $282,129; and
WHEREAS, pursuant to Section 31-25-816,the DDA budget is subject to approval by the
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 TWO HUNDRED SIXTY-
EIGHT THOUSAND EIGHT HUNDRED TWENTY DOLLARS($1,268,820)for payment ofdebt
service in 2000 on the 1992 Bonds authorized by Council in Ordinance No. 36, 1992.
Section 2. That there is hereby appropriated for expenditure from the Downtown
Development Authority Debt Service Fund the sum of ONE HUNDRED THOUSAND DOLLARS
($100,000) and authorized for transfer to the Downtown Development Authority Operations and
Maintenance Fund to be used for purposes of debt service payments incurred for facade acquisitions
and sidewalk improvements.
Section 3. That there is hereby appropriated for expenditure from the Downtown
Development Authority Debt Service Fund the sum of TWO HUNDRED EIGHTY-TWO
THOUSAND ONE HUNDRED TWENTY-NINE DOLLARS($282,129)and 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.
Introduced and considered favorably on first reading and ordered published this 2nd day of
November, A.D. 1999, and to be presented for final passage on the 16th day of November, A.D.
1999.
Mayor
ATTEST:
City Clerk
• Passed and adopted on final reading this 16th day of November, A.D. 1999.
Mayor
ATTEST:
City Clerk
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