HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/04/2000 - FIRST READING OF ORDINANCE NO. 1, 2000, APPROPRIAT AGENDA ITEM SUMMARY ITEM NUMBER: 19
DATE: January 4, 2000
FORT COLLINS CITY COUNCIL Frank Bruno/
STAFF: Sherrie Temple
SUBJECT:
First Reading of Ordinance No. 1,2000,Appropriating Use Tax Carryover Reserves in the Sales and
Use Tax Fund for a Rebate of Impact Fees to Symbios Logic, Inc.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
Funds for this rebate have been reserved in the Sales and Use Tax Fund since adoption of Ordinance
No. 112, 1996. `
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EXECUTIVE SUMMARY:
On July 18, 1995, Council adopted Ordinance No. 112, 1996 approving and authorizing the rebate
of impact fees associated with the construction of a 100,000 square foot office building for Symbios
Logic, Inc. Fees were estimated to be $440,000. Council approved a rebate not to exceed that
amount. The Ordinance also provided that the rebate be made to Symbios Logic only after a sum
equaling twice the amount of the cost to maintain the public infrastructure surrounding the facility
over a twenty-year period be paid to the City. Those infrastructure costs were estimated to be
approximately$40,000. Symbios has well exceeded this amount through payments of sales and use
taxes and property taxes.
On October 20, 1998. Council adopted Ordinance No. 189, 1998 which amended Ordinance No.
102, 1995. The purpose of the amendment was to correct previous ordinances,which allowed the
rebate of building permit fees and plan review fees. Section 5-326 of the City Code specifically
limited the rebate of fees to impact fees and should not have included building permit or plan check
fees.
On February 16, 1999. Council adopted Ordinance No. 31, 1999 that terminated the Development
Impact Fee Rebate Program. However, rebates that had been previously approved for Advanced
Energy and Symbios Logic were considered to be "in process" and thus remain eligible for rebate.
DATE: January 4, 2000 2 ITEM NUMBER: 19
The purpose of this Ordinance is to appropriate $339,400 from reserves in the Sales and Use Tax
Fund for Rebate to Symbios Logic. An additional $35,875 will also be appropriated for transfer
from the Sales and Use Tax Fund to the Capital Expansion Fund to cover fees that were
undercharged to Symbios. The undercharge occurred when the City's Building Inspection
Department calculated the fees for a manufacturing facility instead of an office building. This
transfer will alleviate the need for Symbios to pay the fees that were undercharged but that qualify
for rebate under this Ordinance.
The fees that were originally estimated,actually paid and that are now eligible for rebate are shown
below:
Estimated Actual Fee Amount Eligible
Type of Fee Fee Fee For Rebate
Building Permit Fee $ 29,453 None
$ 30,194
` Plan Check Fee 19,144 14,419 None
Street Oversizing Fee 156,510 207,749 $ 207,749
Water Plant Investment Fee 20,300 20,055 20,055
Sewer Plan Investment Fee 15,100 15,100 15,100
Water Rights Requirement 14,400 25,920 25,920
StormWater Fee 77,099 43,517 43,517
j Electrical Development Fee 57,871 None None
Construction Water Charge None 44 44
Water Repay None 13,521 13,521
Fire Capital 17,865 4,827 4,827
General Gov't Capital 20,247 5,376 5,376
Police Capital Expansion 11,910 1291 3,291
Total Fees $419,899 $384.899 $139,400
The Capital Expansion Improvement Fees to be reimbursed to the Capital Expansion Fund by the
Sales and Use Tax Fund are shown below:
Fees Actual Amount to be
Tyke of Fee Charged Fees Due Transferred
Fire Capital Expansion 4,827 17,865 12,726
General Gov't Capital 5.376 20,247 14,262
Police Capital Expansion 3,291 12,178 8,887
Total Fees $13,494 $49,370 $35,875
. ORDINANCE NO. 1, 2000
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING USE TAX CARRYOVER RESERVES IN THE SALES AND USE TAX
FUND FOR A REBATE OF IMPACT FEES TO
SYMBIOS LOGIC,INC.
WHEREAS,pursuant to Ordinance No. 112, 1996,the City Council approved and authorized
a rebate of development fees associated with the construction of a new 100,000 square foot office
building for Symbios Logic, Inc.; and
WHEREAS, pursuant to Ordinance No. 189, 1998, the City Council amended previous
ordinances in order to reduce the development fee granted in Ordinance No. 102, 1995, to comply
with Section 5-326 of the City Code which specifically limits the rebate of fees to impact fees; and
WHEREAS, pursuant to Ordinance No. 31, 1999, the City Council repealed Article VII,
Chapter 5 of the City Code in order to terminate the Development Impact Fee Rebate Program,
except as applicable to Development Fee Rebates currently in process; and
WHEREAS, Symbios Logic was granted a rebate of fees prior to Ordinance No. 31, 1991;
and
. WHEREAS, Symbios Logic has paid City fees and taxes in connection with its new facility
in the amount of$543,720; and
WHEREAS,Ordinance No. 112, 1996,required that no rebate payment be made prior to the
City receiving $40,000, which sum represents twice the estimated amount needed by the City to
maintain the public infrastructure to be constructed in the vicinity of the site over a twenty(20)year
period; and
WHEREAS,the $543,720 paid by Symbios Logic is well in excess of the $40,000; and
WHEREAS, the total amount of development fees to be rebated to Symbios Logic is
$339,400; and
WHEREAS. the Capital Improvement Expansion Fees were undercharged at the time the
Symbios Logic building permit was issued; and
WHEREAS,as a convenience to Symbios Logic,the City s Finance Department can transfer
the undercharged fees in the amount of$35.875 to the Capital Expansion Fund in lieu of requiring
Symbios Logic to remit the fees and then have the fees rebated; and
WHEREAS, the funds necessary to pay said rebate amount and transfer the Capital
• Improvement Expansion Fees are available in the Use Tax Carryover Reserve in the Sales and Use
Tax Fund; 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.
NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that there is hereby appropriated for expenditure from prior year reserves in the Sales and
Use Tax Fund the sum of THREE HUNDRED THIRTY-NINE THOUSAND FOUR HUNDRED
DOLLARS($339,400)for the rebate of impact fees to Symbios Logic,Inc.and the sum of THIRTY-
FIVE THOUSAND EIGHT HUNDRED SEVENTY FIVE DOLLARS($35,875)for transfer to the
Capital Expansion fund.
Introduced and considered favorably on first reading and ordered published this 4th day of
January,A.D. 2000, and to be presented for final passage on the 18th day of January,A.D. 2000.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 18th day of January, A.D. 2000.
Mayor
ATTEST:
City Clerk