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