HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/02/1999 - FIRST READING OF ORDINANCE NO. 33, 1999, APPROPRIA AGENDA ITEM SUMMARY ITEM NUMBER: 17
DATE: March 2, 1999
10 FORT COLLINS CITY COUNCIL STAFF: Darin Atteberry/
Alan Krcmarik
SUBJECT:
First Reading of Ordinance No. 33, 1999, Appropriating Unanticipated PILOT Revenue from the
Fort Collins Housing Authority in the General Fund.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
The City received unanticipated revenue from the Fort Collins Housing Authority in the amount of
$18,476 as a 1997 payment for public services and facilities and$16,463 in 1998. The revenue was
placed in the General Fund. This Ordinance will return the funds to the Housing Authority to be
used for technology improvements specifically related to Y2K compliance.
EXECUTIVE SUMMARY:
The Fort Collins Housing Authority (the "Authority") made a payment to the City from its 1997
budget for the sum of$18,476 and$16,463 in 1998 as a"Payment in Lieu of Taxes"("PILOT")for
public services and facilities. The Authority annually requests that the City refund the money"...to
again fund sorely needed affordable housing related activities, to attend the low-income housing
needs of Fort Collins residents."
Resolution 92-93 reinstated the requirement by the City of the Authority to make the annual PILOT
payment to the City. The purpose of the resolution was to clarify that these funds are the property
of the City and not excess Housing and Urban Development("HUD") funds. The City may spend
the PILOT revenues as it deems appropriate in accordance with law, including remitting the funds
to the Authority if the Council determines that such remittal serves a valid public purpose. The
Council has remitted the PILOT to the Authority annually since 1992.
DATE: March 2, 1999 2 ITEM NUMBER: 17
BACKGROUND:
On December 16, 1971, the City and the Authority entered into a Cooperative Agreement which
provided that the Authority must make annual PILOT payments to the City for the public services
and facilities furnished by the City. In 1986,upon request of the Authority,the City Council adopted
a resolution which relieved the Authority of its obligation to make the PILOT payments. Based on
that resolution, the Authority did not make PILOT payments from 1987 through 1990. The
Authority also received a refund from the City of PILOT payments for the years 1984, 1985 and
1986.
In 1992, the City Council approved a change in the Cooperative Agreement to reinstate the
requirement for the Authority to pay the annual PILOT. The change was done to clarify that such
a payment was due to the City and to avoid the possibility that HUD might require the PILOT be
returned to the federal government.
The City refunded the 1991, 1992, 1993, 1994, 1995, and 1996 PILOT payments to the Housing
Authority. Staff recommends that the 1997 and 1998 PILOT payments, totaling $34,939 also be
appropriated as unanticipated revenue in the General Fund and remitted to the Authority with the
recommendation that the Authority use the funds in the manner consistent with HUD guidelines.
The intended use for the funds is anticipated to be for Y2K compliance efforts.
. ORDINANCE NO. 33, 1999
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED PILOT REVENUE FROM
THE FORT COLLINS HOUSING AUTHORITY IN THE GENERAL FUND
WHEREAS,Article V, Section 14 of the Charter of the City of Fort Collins permits the City
Council to appropriate by ordinance unanticipated revenue which is the result of rate or fee increases
or new revenue sources at any time during the year in which such revenue is received; and
WHEREAS,the City has received a payment from the Fort Collins Housing Authority (the
"Authority") of$18,476 and$16,463 as payments in lieu of taxes for 1997 and 1998, respectively
("PILOT"); and
WHEREAS, the Authority has requested that the 1997 and 1998 PILOT payments be
appropriated by the Council for expenditure by the Authority to fund Y2K compliance needs; and
WHEREAS, said payments of$18,476 and $16,463 was not projected as a revenue source
in the 1998 - 1999 budget of the City; and
WHEREAS,the City Council has determined that the provision of affordable housing serves
an important public purpose and is an appropriate use of these funds.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that there is hereby appropriated from unanticipated revenue in the General Fund the sum
ofthe total amount ofTHIRTY-FOUR THOUSAND NINE HUNDRED THIRTY-NINE DOLLARS
($34,939), to be returned to the Authority to fund affordable housing related activities for Fort
Collins residents consistent with the Federal Department of Housing and Urban Development
guidelines.
Introduced and considered favorably on first reading and ordered published this 2nd day of
March, A.D. 1999, and to be presented for final passage on the 16th day of March, A.D. 1999.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 16th day of March, A.D. 1999.
Mayor
ATTEST:
City Clerk