HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/07/1998 - FIRST READING OF ORDINANCE NO. 50, 1998, APPROPRIA � .
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AGENDA ITEM SUMMARY ITEM NUMBER: 14
DATE: April 7, 1998
• FORT COLLINS CITY COUNCIL
STAFF: Alan Krcmazik
SUBJECT:
First Reading of Ordinance No. 50, 1998, 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 has received unanticipated revenue from the Fort Collins Housing Authority in the amount
of$18,065 as a 1996 payment for public services and facilities. The revenue was placed in the
General Fund but has not been budgeted or appropriated. This Ordinance will return the funds to
the Housing Authority to be used for affordable housing-related activities.
EXECUTIVE SUMMARY:
The Fort Collins Housing Authority (the"Authority")made a payment of$18,065 to the City from
its 1996 budget 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 City's requirement that the Authority make the annual PILOT
payments 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.
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 famished by the City. In 1986, upon request of the Authority, the City Council i
DATE: April7, 1998 2 ITEM NUMBER: 14
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,and 1995 PILOT payments to the Housing Authority.
Staff recommends that the 1996 PILOT payment of$18,065 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 affordable housing and related activities.
ORDINANCE NO. 50, 1998
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$18,065 as a payment in lieu of 1996 taxes ("PILOT"); and
WHEREAS,the Authority has requested that the 1996 PILOT payment be appropriated by
the Council for expenditure by the Authority to fund affordable housing related activities and to
attend to the housing needs of low-income Fort Collins residents; and
WHEREAS,said payment of$18,065 was not projected as a revenue source or appropriated
for expenditure in the 1998 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
of EIGHTEEN THOUSAND SIXTY FIVE DOLLARS AND ($18,065)to be returned to the Fort
Collins Housing 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 7th day of
April, A.D. 1998, and to be presented for final passage on the 21 st day of April, A.D. 1998.
Mayor
ATTEST:
City Clerk
•
Passed and adopted on final reading this 21st day of April, A.D. 1998.
Mayor
ATTEST:
City Clerk
J