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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/26/2004 - ITEMS RELATING TO THE 2005 DOWNTOWN DEVELOPMENT AU ITEM NUMBER: 3 A-B AGENDA ITEM SUMMARY DATE: October 26, 2004 FORT COLLINS CITY COUNCIL STAFF: Darin Atteberry Alan Krcmarik SUBJECT Items Relating to the 2005 Downtown Development Authority Budget. RECOMMENDATION Staff and the Downtown Development Authority Board recommend adoption of the Ordinances on First Reading. FINANCIAL IMPACT Ordinance No. 177, 2004, sets the Downtown Development Authority annual mill levy at 5.0 mills and appropriates $6,939,362 in the Operations and Maintenance Fund. Of this amount, $611,065 covers administrative expenses and $6,328,297 is for DDA capital outlay for improvements and projects in the downtown area. The mill levy is projected to generate $380,039. Ordinance No. 178, 2004, appropriates the tax increment revenue for debt service to be paid in 2005. The debt includes DDA revenue bonds and other long-term financings completed by the City on behalf of the Downtown Development Authority. The appropriation also includes the DDA's portion of the lease payments on the Civic Center Parking Structure. The total tax increment revenue for 2005 is projected to be $2,908,644. The 2005 appropriation in the Downtown Development Authority Debt Service Fund is $3,607,379. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 177, 2004, Appropriating Operating Funds and Approving the Budget of the Downtown Development Authority for the Fiscal Year Beginning January 1, 2005, and Fixing the Mill Levy for the Downtown Development Authority for 2005. The Downtown Development Authority (the "DDA") adopted the proposed DDA budget for 2005, totaling $6,939,362, and determined the mill levy necessary to provide for payment of administrative costs incurred by the District at its regular meeting on October 7, 2004. B. First Reading of Ordinance No. 178, 2004, Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service for the Year 2005. October 26, 2004 -2- Item No. 3 A-B This Ordinance appropriates funds for 2005 from the tax increment received by the City for the DDA for debt service payments. Debt service and annual lease payments include: 2004 Subordinate Bond $ 247,430 Prior year refunding Bonds 2,077,275 Share of Parking Structure 282,674 2005 DDA projects 1,000,000 BACKGROUND Through action of the Council and the electors of the City, The DDA was created 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 complete 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 occurred in 1984. Subsequently, the bonds have been refunded to take advantage of lower interest rates and to better match the tax increment of the Authority with the debt service on the bonds. The first refunding of the bonds occurred in 1985. The most recent refunding occurred in 2001. The most recent issuance of new bonds occurred this year, 2004. The total debt service on outstanding and anticipated bonds for 2005 will be $3,324,705. In addition to the debt service on the outstanding bond issues, the DDA has entered into an agreement with the City to use some of the tax increment for the downtown Civic Center Parking Structure. According to the agreement with the City of Fort Collins and Latimer County, the DDA is to pay a share of the annual lease payment on the Civic Center Parking Structure. For 2005,the DDA share of the payment will be $282,674. In addition to the projects financed using the tax increment from the Authority, the DDA has the ability under the state law to impose a mill levy for the administration, operation, and maintenance of the entity. The mill levy for 2005 is 5.0 mills. According to the preliminary information from the County Assessor, this mill levy should generate $380,039 of revenue in 2005. The total operating budget appropriation for the DDA is $6,939,362 in 2005. Staff has attached the corresponding resolutions adopted by the DDA Board of Directors. ORDINANCE NO. 177, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING OPERATING FUNDS OF THE DOWNTOWN DEVELOPMENT AUTHORITY FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2005, AND FIXING THE MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2005 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 7,2004,the Board of Directors ofthe DDA("DDA Board"),action under the provisions of Section 31-25-816, C.R.S., adopted a budget for the fiscal year beginning January 1, 2005, and determined the mill levy necessary to provide for payment during fiscal year 2005 of all properly authorized expenditures to be incurred by the DDA; and WHEREAS,it is the desire of the Council to appropriate the sum of SIX MILLION NINE HUNDRED THIRTY-NINE THOUSAND THREE HUNDRED AND SIXTY-TWO DOLLARS ($6,939,362) for operation and maintenance of the DDA for the fiscal year beginning January 1, 2005 and ending December 31, 2005, and WHEREAS,the DDA Board has recommended to the Council a mill levy of 5.0 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, 2004. 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 Operations and Maintenance Fund the sum of SIX MILLION NINE HUNDRED THIRTY-NINE THOUSAND THREE HUNDRED AND SIXTY-TWO DOLLARS ($6,939,362),to be raised by taxation and otherwise,to be expended for the authorized purposes of the DDA. Section 2. That the 2005 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, 2004, shall be 5.0 mills, which levy represents the amount of taxes for the District purposes to provide for payment during the aforementioned fiscal 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 26th day of October,A.D.2004,and to be presented for final passage on the 16th day of November,A.D.2004. Mayor ATTEST: City Clerk Passed and adopted on final reading this 16th day of November, A.D. 2004. Mayor ATTEST: City Clerk ORDINANCE NO. 178, 2004 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING REVENUE IN THE DOWNTOWN DEVELOPMENT AUTHORITY DEBT SERVICE FUND FOR PAYMENT OF DEBT SERVICE AND LEASE PAYMENT FOR THE YEAR 2005 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, C.R.S. et seq. (the "Act"), and the powers of the DDA Board of Directors include the power to borrow money and to finance public improvements within the boundaries of the DDA; and WHEREAS,the Council of the City of Fort Collins,in Ordinance No. 149, 1984,authorized the issuance of Tax Increment Bonds,Series 1984A,dated October 1, 1984,in the aggregate amount of$8,200,000,which bonds were subsequently refunded in 1985, 1998, 1992, and 2001; and WHEREAS,the Council,in Ordinance 088,2004,authorized the issuance of$6,235,000 of Subordinate Tax Increment Revenue Bond, Series 2004A, dated June 14, 2004; and WHEREAS, the DDA expects to issue additional bonds in 2005 in the amount of $1,000,000; and WHEREAS, the DDA's payment for principal, interest, and debt service requirements on the total outstanding bonds and anticipated 2005 bonds will be $3,324,705 in 2005; and WHEREAS, the Council, in Ordinance No. 128, 1998, authorized the issuance of Lease Certificates of Participation Series 1998 in the amount of$17,210,000 of which $6,920,000 is attributable to the Civic Center Parking Structure; and WHEREAS,pursuant to its intergovernmental agreement with the City and Larimer County, the DDA has agreed to pay one-third of the lease payments attributable to the Parking Structure each year through 2006; and WHEREAS, the DDA's share of the 2005 lease payments for the Parking Structure is $282,674; and WHEREAS,pursuant to Section 31-25-816,C.R.S.,the appropriation of DDA debt service is subject to approval by the City Council. NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is herby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of TWO MILLION THREE HUNDRED TWENTY-FOUR THOUSAND SEVEN HUNDRED FIVE DOLLARS ($2,324,705)for payment of debt service on previously issued and outstanding bonds. Section 2. That there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of ONE MILLION DOLLARS ($1,000,000) for payment of debt service on bonds anticipated to be issued in 2005. 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 SIX HUNDRED SEVENTY-FOUR DOLLARS($282,674),which amount is hereby authorized for transfer to the City of Fort Collins Capital Leasing Corporation Fund to be used to cover the DDA's one-third share of the lease payment on the Civic Center Parking Structure. Introduced, considered favorably on first reading, and ordered published this 26th day of October,A.D.2004,and to be presented for final passage on the 16th day of November,A.D.2004. Mayor ATTEST: City Clerk Passed and adopted on final reading this 16th day of November,A.D. 2004. Mayor ATTEST: City Clerk RESOLUTION 2004-09 OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY APPROVING AND RECOMMENDING TO THE FORT COLLINS CITY COUNCIL THE BUDGET OF THE ESTIMATED AMOUNTS REQUIRED TO PAX THE EXPENSES OF CONDUCTING THE BUSINESS OF THE DOWNTOWN DEVELOPMENT AUTHORITY FOR THE FISCAL YEAR ENDING DECEMBER 31,2005 WHEREAS, the Fort Collins Downtown Development Authority has been duly organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended; and, WHEREAS, the Board of Directors of the Downtown Development Authority shall under Colorado Revised Statutes, 31-25-816, 1973 adopt a budget of the estimated revenues and expenditures to be received and incurred during fiscal year ending December 31,2005. NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY that the following budget is adopted for the fiscal year ending December 31, 2005 and therefore recommends to the Council of the City of Fort Collins the adoption of this budget. Revenues: Ad Valorem Taxes $380,039 Auto Specific Ownership Tax 33,765 Interest Earnings 13,789 Licenses and Permits 2,600 Undesignated Reserves 156,782 Contributions 24,000 Bond Proceeds 6,328,297 TOTAL $6,939,362 Expenses: Personal Services $167,321 Contractual Services 435,804 Commodities 2,850 Capital Outlay 6,328,297 Other 5,000 TOTAL $6,939,362 Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 7°day of October,20 4 Kim Jordan, Chair` ZEST: J n Me ' ors, Secretary RESOLUTION 2004-10 OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RECOMMENDING TO THE FORT COLLINS CITY COUNCIL THE DETERMINING AND FIXING OF THE MILL LEVY OF THE DOWNTOWN DEVELOPMENT AUTHORITY FOR THE FISCAL YEAR ENDING DECEMBER 31, 2005 WHEREAS, the Fort Collins Downtown Development Authority has been duly organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended; and, WHEREAS, the Board of Directors of the Downtown Development Authority finds that a mill levy of five (5) mills to be sufficient to meet the operational and administrative needs of the Authority for fiscal year 2005. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF FORT COLLINS, to recommend to the Council of the City of Fort Collins the mill levy rate for taxation upon all the taxable property within the Downtown Development Authority District for the fiscal year ending December 31, 2005 be set at five (5) mills which is sufficient to raise ad valorem revenues for the 2005 Operations and Maintenance Budget as approved by the Downtown Development Authority which levy represents the amount of taxes for the Downtown Development Authority (however, said mill levy is subject to change based on the assessor's calculations which have not been published at this time). Said mill levy shall be distributed to general expense, which levy as so distributed shall be certified by the County Assessor and the Board of the County Commissioners of Larimer County, Colorado by the City Clerk as provided by law. Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 7`h day of October, 2004. l6V" Kim Jordan, Chair AT T: J n Meadors, Secretary RESOLUTION 2004-11 OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RECOMMENDING TO THE FORT COLLINS CITY COUNCIL THE APPROPRIATION OF IN THE DOWNTOWN DEVELOPMENT AUTHORITY FUND TO THE CITY OF FORT COLLINS SALES AND USE TAX FUND FOR PAYMENT OF DEBT SERVICE FOR THE FISCAL YEAR ENDING DECEMBER 31,2005 WHEREAS, the Fort Collins Downtown Development Authority has been duly organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended; and, WHEREAS,pursuant to Ordinance No. 15, 1983,the Council of the City of Fort Collins established a special fund consisting of separate accounts for: (1)operation and maintenance expenses of the Fort Collins Downtown Development Authority;(2)tax increment funds received by the Fort Collins downtown Development Authority; and (3) project funds consisting of proceeds of bonds, loans, and other forms of indebtedness; and, WHEREAS, Section 2 of Ordinance No. 95, 1987 provides that tax increment monies will be pledged to the payment of interest on the Bonds; and, WHEREAS, interest on the bonds is due and payable. NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY that it recommends to the Council of the City of Fort Collins the appropriation for expenditure in 2004 from the tax increment fund,the sum of for payment of debt service for 2005on outstanding Tax Increment bonds authorized by City Council. Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins Downtown Development Authority this 7`h day of October, 2004. V�1UV1_, N Kim Jordan, Chair A ST: J n eadors, Secretary