HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/02/2005 - ITEMS RELATING TO THE 2006 DOWNTOWN DEVELOPMENT AUAGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL
ITEM NUMBER: 20
DATE: November 2, 2005
STAFF: Darin Atteberry
Chip Steiner
Chuck Seest
SUBJECT
Items Relating to the 2006 Downtown Development Authority Budget.
RECOMMENDATION
Staff and the Downtown Development Authority Board of Directors recommend adoption of the
Ordinances on First Reading.
FINANCIAL IMPACT
Ordinance No. 140, 2005, sets the Downtown Development Authority (“DDA”) annual mill levy
at 5.0 mills and appropriates $2,377,757 in the Operations and Maintenance Fund. Of this amount,
$817,757 covers administrative expenses for the DDA, $560,000 covers the program expenses of
the Downtown Cultural Program, and $1,000,000 is for DDA participation in projects in the
downtown area. The mill levy is projected to generate $399,041. Funds for DDA participation in
downtown projects and for the Downtown Cultural Program will come in the form of a request to
City Council for authorization of a new bond in 2006. The balance of funds for administrative
expenses comes from the following sources: the mill levy that the DDA Board of Directors
(“Board”) is recommending remain unchanged at 5.0 mills for 2006; interest earnings; and
unexpended revenues remaining in the 2005 budget.
Ordinance No. 141, 2005, appropriates the tax increment revenue for debt service to be paid in 2006.
The debt includes DDA revenue bonds, DDA subordinate revenue bonds, the DDA share of the
lease purchase certificates of participation for the Civic Center Parking Structure, and monies for
projects supported by the Tax Increment Revenues from the expansion of the DDA boundaries. The
total tax increment revenue for 2006 is projected to be $3,338,956. The 2006 appropriation in the
Downtown Development Authority Debt Service Fund is $3,521,154 of which $1,550,000 is
anticipated debt to be recovered in 2006, and $1,971,154 is current, actual debt.
November 2, 2005 -2- Item No. 20
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 140, 2005, Appropriating Operating Funds and Approving
the Budget of the Downtown Development Authority for the Fiscal Year Beginning January
1, 2006, and Fixing the Mill Levy for the Downtown Development Authority for 2006 at five
mills.
The Board will adopt their proposed budget for 2006, totaling $2,377,757, on November 3,
2005. The Board determined the mill levy necessary to provide for payment of
administrative costs incurred by the DDA, at its regular meeting of October 6, 2005.
B. First Reading of Ordinance No. 141, 2005, Appropriating Revenue in the Downtown
Development Authority Debt Service Fund for Payment of Debt Service for the Year 2006.
This Ordinance appropriates funds for 2006 from the tax increment received by the City for
the DDA for debt service payments. Debt service and annual lease payments include:
Existing Debt
2004 Subordinate Bonds $ 247,430
Prior year refunding Bonds 1,442,575
Share of Parking Structure 281,149
$1,971,154
Anticipated debt to be incurred in 2006
2006 DDA Projects 1,000,000
2006 Downtown Cultural Program 550,000
$1,550,000
TOTAL $3,521,154
BACKGROUND
Through action of City Council and the qualified electors, the City of Fort Collins created the DDA
in 1981. The purpose of the DDA is to plan and implement improvements within its boundaries .
The DDA established a Plan of Development (“Plan”) that specified the types of projects that it
would undertake. In order to undertake the Plan , the City on behalf of the DDA has issued various
bond anticipation notes and revenue bonds. The first issuance of revenue bonds for the DDA
occurred in 1984. Subsequently, the bonds have been refunded to effect savings and to better match
the tax increment of the authority with the debt service of the bonds. The first refunding of the
bonds occurred in 1985. The most recent refunding of the bonds occurred in 2001. The most recent
issuance of new bonds occurred in 2004. The total debt service on outstanding and anticipated
bonds for 2006 will be $3,240,005.
November 2, 2005 -3- Item No. 20
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 Larimer County, the DDA
is to pay a share of the annual lease payment on the Civic Center Parking Structure. In 2006, the
DDA share of the payment is $281,149.
The Downtown Cultural Program will also be financed with tax increment monies. Please see
Attachment A which is a synopsis of the Downtown Cultural Program. Although historically the
DDA has used tax increment monies primarily for acquisition of property interests and installation
of public improvements, the state statute governing downtown development authorities permits the
use of such monies for any undertaking or activity of an authority, whether economic or physical,
as authorized in the plan of development for the authority.
The DDA’s Plan is replete with references to cultural programs and activities, including the
following most significant ones:
OBJECTIVES AND PURPOSES
To maintain the District as a regional center for commercial, financial,
governmental, social, recreational, and cultural activities and to prevent
deterioration from occurring.
PRIORITIES
Encourage activities and services that will attract the entire community and
also attract tourism by broadening the entertainment, cultural and social
activities and events that take place in the District. Encourage projects that
will promote the image of the District as a place for entertainment,
relaxation, conversation, education, center of art and center of culture.”
In addition to the projects financed using the tax increment from the Authority, the DDA has the
ability to impose a mill levy for the administration, operation, and maintenance of the entity. The
mill levy for 2006 is 5.0 mills. According to preliminary information from the County Assessor, this
mill levy should generate $399,041 of revenue in 2006.
The total operating budget for the DDA is $2,347,757.
Staff has attached the corresponding resolutions adopted by the DDA Board of Directors.
ORDINANCE NO. 140, 2005
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING OPERATING FUNDS OF THE
DOWNTOWN DEVELOPMENT AUTHORITY
FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2006,
AND FIXING THE MILL LEVY FOR THE
DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2006
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 6, 2005, the Board of Directors of the DDA (“DDA Board”), acting
under the provisions of Section 31-25-816, C.R.S., adopted a budget for the fiscal year beginning
January 1, 2006, and determined the mill levy necessary to provide for payment during fiscal year
2006 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 TWO MILLION
THREE HUNDRED SEVENTY-FIVE THOUSAND FIVE HUNDRED FIFTY TWO DOLLARS
($2,377,757) in the DDA Operation and Maintenance Fund for the fiscal year beginning January 1,
2006 and ending December 31, 2006, to be used as follows:
• DDA Operations & Maintenance from taxation and otherwise $ 817,757
• DDA Projects from anticipated bond proceeds 1,000,000
• Cultural Program from anticipated bond proceeds and donations 560,000
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, 2005
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 EIGHT HUNDRED
SEVENTEEN THOUSAND SEVEN HUNDRED AND FIFTY-SEVEN DOLLARS ($817,757),
to be raised by taxation and otherwise, to be expended for the authorized purposes of the DDA.
Section 2. That there is hereby appropriated for expenditure from the Downtown
Development Authority Operations and Maintenance Fund the sum of ONE MILLION FIVE
HUNDRED FIFTY THOUSAND DOLLARS ($1,550,000), to be raised by bond proceeds
anticipated to be issued in 2006.
Section 3. That the 2006 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, 2005 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 2nd day of
November, A.D. 2005, and to be presented for final passage on the 15th day of November, A.D.
2005.
_______________________________________
Mayor
ATTEST:
_________________________________
City Clerk
Passed and adopted on final reading this 15th day of November, A.D. 2005.
_______________________________________
Mayor
ATTEST:
__________________________________
City Clerk
ORDINANCE NO. 141, 2005
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 2006
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 of Fort 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 2006 in the amount of
$1,550,000; and
WHEREAS, the DDA’s payment for principal, interest, and debt service requirements on
the total outstanding bonds will be $1,690,005 in 2006; 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 Larimer 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 2006 lease payments for the Parking Structure is
$281,149; 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 ONE MILLION SIX HUNDRED NINETY-
THOUSAND FIVE DOLLARS ($1,690,005) 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 ($1,550,000)
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-ONE
THOUSAND ONE HUNDRED FORTY-NINE DOLLARS ($281,149), 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 2nd day of
November, A.D. 2005, and to be presented for final passage on the 15th day of November, A.D.
2005.
_______________________________________
Mayor
ATTEST:
_________________________________
City Clerk
Passed and adopted on final reading this 15th day of November, A.D. 2005.
_______________________________________
Mayor
ATTEST:
__________________________________
City Clerk
RESOLUTION 2005-07
OF THE BOARD OF DIRECTORS OF THE FORT COLLINS
DOWNTOWN DEVELOPMENT AUTHORITY
APPROVING AND RECOMMENDING
TO THE FORT COLLINS CITY COUNCIL
THE BUDGET OF THE ESTIMATED AMOUNTS REQUIRED TO PAY
THE EXPENSES OF CONDUCTING THE BUSINESS
OF THE DOWNTOWN DEVELOPMENT AUTHORITY AND THE
DOWNTOWN CULTURAL PROGRAM
FOR THE FISCAL YEAR ENDING DECEMBER 31, 2006
WHEREAS, the Fort Collins Downtown Development Authority has been duly
organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended; and,
WHEREAS, the Board of Directors of the Downtown Development Authority shall
under Colorado Revised Statutes, 31-25-816, 1973 adopt a budget of the estimated revenues and
expenditures to be received and incurred during fiscal year ending December 31, 2006.
NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE DOWNTOWN DEVELOPMENT AUTHORITY that the following budget is adopted
for the fiscal year ending December 31, 2006 and therefore recommends to the Council of the
City of Fort Collins the adoption of this budget.
Revenues:
Ad Valorem Taxes $399,041
Auto Specific Ownership Tax 34,778
Interest Earnings 10,465
Licenses and Permits 2,678
Undesignated Reserves 315,935
Contributions 24,000
Project Mgmt. 30,860
Donations 10,000
Bond Proceeds 1,550,000
TOTAL $2,377,757
Expenses:
Personal Services $504,147
Contractual Services 802,638
Commodities 19,950
Capital Outlay 1,029,805
Other 21,217
TOTAL $2,377,757
Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins
Downtown Development Authority this 6th day of October, 2005
____________________________________
Steve Taylor, Chair
ATTEST:
Carey Hewitt, Secretary
RESOLUTION 2005-08
OF THE BOARD OF DIRECTORS OF THE
FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY
RECOMMENDING TO THE FORT COLLINS CITY COUNCIL
THE DETERMINING AND FIXING OF THE MILL LEVY
OF THE DOWNTOWN DEVELOPMENT AUTHORITY
FOR THE FISCAL YEAR ENDING DECEMBER 31, 2006
WHEREAS, the Fort Collins Downtown Development Authority has been duly
organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended;
and,
WHEREAS, the Board of Directors of the Downtown Development Authority finds
that a mill levy of five (5) mills to be sufficient to meet the operational and administrative
needs of the Authority for fiscal year 2006.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF FORT
COLLINS, to recommend to the Council of the City of Fort Collins the mill levy rate for
taxation upon all the taxable property within the Downtown Development Authority District
for the fiscal year ending December 31, 2006 be set at five (5) mills which is sufficient to
raise ad valorem revenues for the 2006 Operations and Maintenance Budget as approved by
the Downtown Development Authority which levy represents the amount of taxes for the
Downtown Development Authority (however, said mill levy is subject to change based on
the assessor’s calculations which have not been published at this time). Said mill levy shall
be distributed to general expense, which levy as so distributed shall be certified by the
County Assessor and the Board of the County Commissioners of Larimer County, Colorado
by the City Clerk as provided by law.
Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins
Downtown Development Authority this 6th day of October, 2005.
__________________________
Steve Taylor, Chair
ATTEST:
___________________________________
Carey Hewitt, Secretary
RESOLUTION 2005-09
OF THE BOARD OF DIRECTORS
OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY
RECOMMENDING TO THE FORT COLLINS CITY COUNCIL
THE APPROPRIATION OF ONE MILLION, SIX HUNDRED NINETY
THOUSAND, FIVE DOLLARS ($1,690,005.00)
IN THE DOWNTOWN DEVELOPMENT AUTHORITY FUND TO THE
CITY OF FORT COLLINS SALES AND USE TAX FUND
FOR PAYMENT OF DEBT SERVICE FOR THE FISCAL YEAR
ENDING DECEMBER 31, 2006
WHEREAS, the Fort Collins Downtown Development Authority has been duly
organized in accordance with the Colorado Revised Statutes 31-25-804, 1973 as amended; and,
WHEREAS, pursuant to Ordinance No. 15, 1983, the Council of the City of Fort Collins
established a special fund consisting of separate accounts for: (1) operation and maintenance
expenses of the Fort Collins Downtown Development Authority; (2) tax increment funds
received by the Fort Collins downtown Development Authority; and (3) project funds consisting
of proceeds of bonds, loans, and other forms of indebtedness; and,
WHEREAS, Section 2 of Ordinance No. 95, 1987 provides that tax increment monies
will be pledged to the payment of interest on the Bonds; and,
WHEREAS, interest on the bonds is due and payable.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY that it
recommends to the Council of the City of Fort Collins the appropriation for expenditure in
2006 from the tax increment fund, the sum of One Million, Six Hundred Ninety Thousand,
Five Dollars ($1,690,005.00) for payment of debt service on outstanding Tax Increment
bonds authorized by City Council.
Passed and adopted at a regular meeting of the Board of Directors of the Fort Collins
Downtown Development Authority this 6th day of October, 2005.
______________________________
Steve Taylor, Chair
ATTEST:
________________________________
Carey Hewitt, Secretary