Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/16/2004 - ITEMS RELATING TO THE 2005 DOWNTOWN DEVELOPMENT AU ITEM NUMBER: 15 A-B AGENDA ITEM SUMMARY DATE: November 16, 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 Second Reading. EXECUTIVE SUMMARY A. SecondReadingof OrdinanceNo. 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. Second 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. 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 Ordinance Nos. 177 and 178, 2004 were adopted unanimously on First Reading on October 26, 2004. 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 of the 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 ` ATTES . Ci e 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 ofFort 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 Latimer 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 thS_1614day of November,A.D.2004. Mayor ATTES L�— Cit Cle��l Passed and adopted on final reading this 16th day of November, A.D. 2004. Mayor ATTEST: City Clerk 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, th a ' ain�nance Fund. Of this amount, $611,065 covers administra a ex a es a 3 ,2 for DDA capital outlay for improvements and projects i the do tow The 11 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 o otfvelyeuthority for the Fiscal Year Beginning January 1, , athe 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 Bon ()4 P74 Prior year refunding B ds Share of Parking Struct 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 wiren.t"T bt s ice n the bonds. The first refunding of the bonds occurred in 1985. The most din c rr i 0 The most recent issuance of new bonds occurred this year, total b ice o utstanding 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 correspondiU r s, osared ley _eA Board of Directors.