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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/01/2004 - SECOND READING OF ORDINANCE NO. 080, 2004, APPROPR ITEM NUMBER: 9 AGENDA ITEM SUMMARY DATE: June 1, 2004 FORT COLLINS CITY COUNCIL STAFF: Jim O'Neill Bev Gast SUBJECT Second Reading of Ordinance No. 080, 2004, Appropriating Prior Year Reserves in the General Fund for Cultural Development and Programming Activities and for Tourism Capital. RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY This Ordinance,which was unanimously adopted on First Reading on May 18,2004, accomplishes two tasks. First, lodging tax revenues that were in excess of 2003 budgeted lodging tax receipts are appropriated to the Convention and Visitors Bureau ("CVB"), Cultural Development and Programming ("CDP"), Visitor Events, and Tourism Capital fund accounts. In addition, it appropriates unexpended funds for CDP and Visitor Events for 2003. ORDINANCE NO. 080, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR CULTURAL DEVELOPMENT AND PROGRAMMING ACTIVITIES AND TOURISM CAPITAL WHEREAS, in accordance with Section 25-244 of the City Code, lodging tax revenue is to be allocated as follows: 75% for the promotion of convention and visitor activities, and 25% for cultural development and programming activities; and WHEREAS, in 2003 the City received lodging taxes in the amount of$24,736 in excess of the original estimate for 2003 lodging tax receipts; and WHEREAS,the excess lodging taxes should be distributed in the following amounts to the following accounts: • Cultural Development and Programming account $ 6,184 • Visitor Events account $ 4,638 • Tourism Capital account $13,914 and WHEREAS, in addition, the Cultural Development and Programming Account had prior years funds in the amount of$46,999 that were not expended in 2003; and WHEREAS, in addition, the Visitor Events Account had funds from prior years in the amount of$6,147 that were not expended in 2003; and WHEREAS, at the end of 2003, all of the above lodging tax funds lapsed into the General Fund Reserves for lodging taxes; and WHEREAS, Article V, Section 9,of the Charter of the City of Fort Collins permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as maybe available from reserves accumulated in prior years,notwithstanding that such reserves were not previously appropriated; and WHEREAS,the City wishes to appropriate all funds allocated for cultural development and programming, visitor events, and tourism capital. 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 prior year reserves in the General Fund the total sum of FIFTY-THREE THOUSAND ONE HUNDRED EIGHTY- THREE DOLLARS ($53,183) for Cultural Development and Programming. Section 2. That there is hereby appropriated for expenditure from prior year reserves in the General Fund the total sum of TEN THOUSAND SEVEN HUNDRED EIGHTY-FIVE DOLLARS ($10,785) for Visitor Events. Section 3. That there is hereby appropriated for expenditure from prior year reserves in the General Fund the total sum of THIRTEEN THOUSAND NINE HUNDRED FOURTEEN DOLLARS ($13,914) for Tourism Capital. Introduced, considered favorably on first reading, and ordered published this 18th day of May, A.D. 2004, and to be presented for final passage on the 1st day of June, A.D. 2004. Mayor A T: City Clerk Passed and adopted on final reading this 1st day of June, A.D. 2004. Mayor ATTEST: City Clerk ITEM NUMBER: 9 AGENDA ITEM SUMMARY DATE: May 18, 2004 FORT COLLINS CITY COUNCIL STAFF: Jim O'Neill Bev Gast SUBJECT First Reading of Ordinance No. 080, 2004, Appropriating Prior Year Reserves in the General Fund for Cultural Developmen ndiro .an i and r Tourism Capital. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT This Ordinance appropriates $77,882 from the General Fund Lod ing Tax Reserves for Cultural Development and Programme C sito vCapital from the following sources: Visitor Unappropriated 2003 Lodging CD Events Coital Total Tax Receipts $0 $6,184 $4,638 $13,914 $24,736 Prior Years Unexpended Funds 0 46,999 6,147 0 53,146 Total Appropriated $0 $53,183 $10,785 $13,914 $77,882 EXECUTIVE SUMMARY This Ordinance accomplishes Off ta3cs Firs" of ve es that were in excess of 2003 budgeted lodging tax receipt e appro hated nve nand Visitors Bureau ("CVB"), Cultural Development and P ramm i (" Visitor ents, and Tourism Capital fund accounts. In addition, it appropn 1€s unex dedds for C and Visitor Events for 2003. Lodging tax revenue for 2003 was estimated to be $556,900 and the 2004 budget appropriated an equal amount. However, actual receipts totaled $581,636 for 2003 and the difference of$24,736 has not been appropriated. In accordance with City Code Section 25-244, 75% of the total lodging tax receipts are to be used for the promotion of convention and visitor activities and 25% for cultural development and programming activities. The City's contract for services with the CVB requires the payment of $393,415 to CVB for 2004. May 18, 2004 -2- Item No. 9 The CDP and Visitor Events funds are in the General Fund reserves for lodging taxes and must be appropriated to be used to support events that provide a public benefit to the Fort Collins Community and promote the utilization of public accommodations within the city. The City's Cultural Resources Board reviews applications for these funds and makes recommendations to the City Council. The Tourism Capital funds will be used to finalize the purchase of 2.01 acres of land for a section of the parking lot which was originally required when the Welcome Center was constructed. City Utilities provided this land which was valued at $1.39 per square foot for a total cost of$121,700. The appropriation of$13,914 i d*$al t- YtieThus, the suggested total 200 locatio of hi r ginpts is as follows: 2004 Budget 2003 Receipts Difference CVB $393,415 $393,415 $ 0 Tourism Capital 0 13,914 13,914 Visitor Events 24,260 28,898 4,638 Visitor75% $417,675 $436,227 $18,552 CDP 25% $139.225 $145,409 $6,184 Total 6, 1,6 $24,736 The CDP and Visitor Event ccount each a funds fro the previous years lodging tax allocations which were not used "rig 20 3:' a un xpended 3 funds are: CDP-$46,999,and Visitor Events - $6,147. These funds are in the General Fund reserves for lodging taxes and must be appropriated into the CDP and Visitor Events accounts to be used to promote cultural development and programming activities.