HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/03/2008 - FIRST READING OF ORDINANCE NO. 059, 2008, APPROPRI ITEM NUMBER: 13
AGENDA ITEM SUMMARY DATE: June 3, zoos
FORT COLLINS CITY COUNCIL STAFF: Kelly DiMartino
Bev Gast
SUBJECT
First Reading of Ordinance No. 059, 2008,Appropriating Prior Year Reserves in the General Fund
for Cultural Development and Programming Activities and the Fort Collins Convention and Visitors
Bureau.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
This Ordinance appropriates $224,277 from the General Fund Lodging Tax Reserves for Cultural
Development and Programming("CDP"),Visitor Events, and the Convention and Visitors Bureau
from the following sources:
Visitor
CDP Events CVB Total
Unappropriated 2007 Lodging Tax Receipts $26,543 $ 5,309 $ 74,321 $106,173
Prior Years Unexpended Funds 82,362 35,742 0 118,104
Total Appropriated $108,905 $41,051 $74,321 $224,277
EXECUTIVE SUMMARY
This Ordinance appropriates lodging tax revenues that were in excess of 2007 budgeted lodging tax
receipts to Cultural Development and Programming ("CDP"), Visitor Events, and the Convention
and Visitors Bureau("CVB")accounts. Lodging tax revenue for 2007 was estimated to be$731,600
and the 2007 budget appropriated an equal amount. However, actual receipts totaled $837,773 for
2007 and the difference of$106,173 has not been appropriated.
BACKGROUND
Section 25-244 of the City Code requires that 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 total amount collected in 2007 is $837,773, resulting in a contract
commitment with the CVB for $586,441.
June 3, 2008 -2- Item No. 13
The suggested total 2007 allocation of surplus lodging tax receipts is as follows:
2008 Budget 2007 Receipts Difference
CVB $512,120 $586,441 $74,321
Visitor Events 36,580 41,889 5,309
Total Visitor
Activities 75% $548,700 $628,330 $79,630
CDP - Cultural
Activities 25% $182,900 $209,443 $26,543
Total $731,600 $837,773 $106,173
The CDP and Visitor Events accounts each had funds from revenue received and previous year
lodging tax allocations which were not used during 2007. The unexpended 2007 funds are: CDP -
$82,362, and Visitor Events - $35,742. These funds are in the General Fund reserves for lodging
taxes and must be appropriated into the respective CDP and Visitor Events accounts.
This Ordinance also appropriates the CDP and Visitor Events funds in the General Fund reserves for
lodging taxes 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.
ORDINANCE NO. 059, 2008
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND
FOR CULTURAL DEVELOPMENT AND PROGRAMMING ACTIVITIES
AND THE FORT COLLINS CONVENTION AND VISITOR'S BUREAU
WHEREAS,Section 25-244 of the Code of the City of Fort Collins requires that 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,during the budget process the City estimates lodging taxes and in 2007 lodging
taxes exceeded the estimate by $106,173; and
WHEREAS,the excess lodging taxes should be distributed in the following amounts to the
following accounts:
• Cultural Development and Programming account $ 26,543
• Visitor Events account $ 5,309
• Convention and Visitor's Bureau account $ 74,321
and
WHEREAS, the Cultural Development and Programming Account had prior year funds in
the amount of$82,362 that were not expended in 2007; and
WHEREAS,the Visitor Events Account had funds from prior years in the amount of$35,742
that were not expended in 2007; and
WHEREAS, at the end of 2007, 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 may be 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 the Convention and Visitor's Bureau.
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 ONE HUNDRED EIGHT THOUSAND NINE HUNDRED FIVE
DOLLARS ($108,905) 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 FORTY ONE THOUSAND FIFTY ONE DOLLARS ($41,051)
for Visitor Events.
Section 3. That there is hereby appropriated for expenditure from prior year reserves in
the General Fund the total sum of SEVENTY FOUR THOUSAND THREE HUNDRED TWENTY-
ONE DOLLARS ($74,321) for the Convention and Visitor's Bureau.
Introduced,considered favorably on first reading,and ordered published this 3rd day ofJune,
A.D. 2008, and to be presented for final passage on the 1st day of July, A.D. 2008.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 1st day of July, A.D. 2008.
Mayor
ATTEST:
City Clerk