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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/17/2005 - FIRST READING OF ORDINANCE NO. 053, 2005, APPROPRI ITEM NUMBER: 10 AGENDA ITEM SUMMARY DATE: May 17, 2005 FORT COLLINS CITY COUNCIL STAFF: Jim O'Neill Bev Gast SUBJECT First Reading of Ordinance No. 053,2005,Appropriating Prior Year Reserves in the General Fund for Cultural Development and Programming Activities and Tourism Capital. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT This Ordinance appropriates $91,174 from the General Fund Lodging Tax Reserves for Cultural Development and Programming ("CDP"), Visitor Events, and Tourism Capital from the following sources: Visitor Tourism Unappropriated 2004 Lodging CDP Events Capital Total Tax Receipts $6,886 $11,337 $9,320 $27,543 Prior Years Unexpended Funds 52,085 11,546 0 63,631 Total Appropriated $58,971 $22,883 $9,320 $91,174 EXECUTIVE SUMMARY This Ordinance appropriates lodging tax revenues that were in excess of 2004 budgeted lodging tax receipts to Cultural Development and Programming("CDP"),Visitor Events,and Tourism Capital fund accounts. Lodging tax revenue for 2004 was estimated to be $573,600 and the 2005 budget appropriated an equal amount. However, actual receipts totaled $601,143 for 2004 and the difference of$27,543 has not been appropriated. In accordance with City Code Section 25-244, 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 City's contract for services with the Convention and Visitors Bureau ("CVB") requires the payment of$400,000 to CVB for 2005,with$5,213 for service enhancements. May 17, 2005 -2- Item No. 10 The suggested total 2005 allocation of surplus lodging tax receipts is as follows: 2005 Budeet 2004 Receipts Difference CVB $405,213 $405,213 $ 0 Tourism Capital 0 9,320 9,320 Visitor Events 24,987 36,324 11,337 Visitor 75% $430,200 $450,857 $20,657 CDP 25% $143,400 $150,286 $6,886 Total $573,600 $601,143 $27,543 The CDP and Visitor Events accounts each had funds from previous year lodging tax allocations which were not used during 2004. The unexpended 2004 funds are: CDP - $52,085, and Visitor Events - $11,546. These funds are in the General Fund reserves for lodging taxes and must be appropriated into the CDP and Visitor Events accounts to be used to promote cultural development and programming activities. 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. 053, 2005 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR CULTURAL DEVELOPMENT AND PROGRAMMING ACTIVITIES AND TOURISM CAPITAL WHEREAS, in accordance with Section 25-244 of the City Code,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, in 2004 the City received lodging taxes in the amount of$27,543 in excess of the original estimate for 2004 lodging tax receipts; and WHEREAS,the excess lodging taxes should be distributed in the following amounts to the following accounts: • Cultural Development and Programming account $ 6,886 • Visitor Events account $11,337 • Tourism Capital account $ 9,320 and WHEREAS, the Cultural Development and Programming Account had prior year funds in the amount of$52,085 that were not expended in 2004; and WHEREAS,the Visitor Events Account had funds from prior years in the amount of$11,546 that were not expended in 2004; and WHEREAS, at the end of 2004, 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 tourism capital. 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 ofFIFTY-EIGHT THOUSAND NINE HUNDRED SEVENTY-ONE DOLLARS ($58,971) 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 TWENTY-TWO THOUSAND EIGHT HUNDRED EIGHTY- THREE DOLLARS ($22,883) for Visitor Events. Section 3. That there is hereby appropriated for expenditure from prior year reserves in the General Fund the total sum ofNINE THOUSAND THREE HUNDRED TWENTY DOLLARS ($9,320) for Tourism Capital. Introduced, considered favorably on first reading, and ordered published this 17th day of May, A.D. 2005, and to be presented for final passage on the 7th day of June, A.D. 2005. Mayor ATTEST: City Clerk Passed and adopted on final reading this 7th day of June, A.D. 2005. Mayor ATTEST: City Clerk