HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/20/2009 - FIRST READING OF ORDINANCE NO. 007, 2009, APPROPRI ITEM NUMBER: 12
AGENDA ITEM SUMMARY DATE: January 20, 2009
FORT COLLINS CITY COUNCIL STAFF: Matt Robenalt
SUBJECT
First Reading of Ordinance No. 007,2009,Appropriating Revenue in the Downtown Development
Authority Debt Service Fund for Payment of Debt Service on Bond Series 2008A for the Year 2009.
RECOMMENDATION
Staff and the Downtown Development Authority Board recommend adoption of the Ordinance on
First Reading.
FINANCIAL IMPACT
The City of Fort Collins purchased the 2008A Taxable Subordinate Tax Increment Revenue Bonds
from the City of Fort Collins Downtown Development Authority on December 29, 2008. The
Downtown Development Authority is requesting approval to appropriate $3,604,813 for the 2009
debt payment to the City of Fort Collins.
EXECUTIVE SUMMARY
This Ordinance will appropriate the tax increment revenue in the Downtown Development Authority
Debt Service Fund for the payment of debt service for the year 2009 to the City of Fort Collins for
the 2008A Taxable Subordinate Tax Increment Revenue Bonds.
BACKGROUND
The Downtown Development Authority (the "DDA") was created in 1981 with the purpose,
according to State statute, of planning and implementing projects and programs within the
boundaries of the DDA. The DDA and City adopted a Plan of Development that specifies the
projects and programs the DDA would undertake. In order to carry out the purposes of the State
statute and the Plan of Development the City, on behalf of the DDA, has issued various notes and
tax increment bonds. On December 16, 2008,the City of Fort Collins City Council authorized the
issuance of the City of Fort Collins, Colorado Downtown Development Authority Taxable
Subordinate Tax Increment Revenue Bonds, Series 2008A, in the aggregate principal amount of
$10,488,000. The purpose of the bonds is to finance certain capital improvements,capital projects,
and development projects within the DDA area. Incremental ad valorem tax revenues received by
the DDA and held in the DDA Debt Service Fund are pledged to pay the principal and interest on
the bonds.
January 20, 2009 -2- Item No. 12
The DDA asks the Council to appropriate funds from the Downtown Development Authority Debt
Service Fund for the 2008A Taxable Subordinate Tax Increment Revenue Bonds debt payment.
ATTACHMENTS
1. DDA Resolution 2009-01 Recommending to the Fort Collins City Council the Appropriation
of$3,604,813 from the Downtown Development Authority Debt Service Fund for Payment
of the 2008A Taxable Subordinate Tax Increment Revenue Bonds Debt Service for the
Fiscal Year ending December 31, 2009.
ATTACHMENT
RESOLUTION 2009-01
OF THE BOARD OF DIRECTORS OF THE FORT COLLINS DOWNTOWN
DEVELOPMENT AUTHORITY RECOMMENDING TO THE FORT COLLINS CITY
COUNCIL THE APPROPRIATION OF$3,604,813 (THREE MILLION, SIX
HUNDRED FOUR THOUSAND,EIGHT HUNDRED AND THIRTEEN DOLLARS)
FROM THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY DEBT
SERVICE FUND FOR THE ADDITIONAL PAYMENT OF DEBT SERVICE FOR THE
FISCAL YEAR ENDING DECEMBER 31,2009
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 the tax increment monies will
be pledged to the payment of principal and interest on Bonds; and
WHEREAS,principal and 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 2009 from
the tax increment fund, the sum of$3,604,813 (Three million, six hundred four thousand,
eight hundred and thirteen dollars)for payment of debt service on the 2008 outstanding
tax increment bond authorized by the Council of the City of Fort Collins.
Passed and adopted at a'regular meeting of the Board of Directors of the Fort Collins
Downtown Development Authority this 8`h day of January,2009.
J k Wolfe, Chair
Ge rge Brelig, Se
cr to
ORDINANCE NO. 007, 2009
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING REVENUE IN THE
DOWNTOWN DEVELOPMENT AUTHORITY DEBT SERVICE FUND
FOR PAYMENT OF DEBT SERVICE ON BOND SERIES 2008A FOR THE YEAR 2009
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. 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 City Council, in Ordinance No. 147, 2008, authorized the issuance of
$10,488,000 of Subordinate Tax Increment Revenue Bonds, Series 2008A, dated December 16,
2008 and
WHEREAS, the DDA's payment for principal and interest debt service requirements on
the 2008A bonds will be $3,604,813 in 2009; 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 that there is hereby appropriated for expenditure from the Downtown
Development Authority Debt Service Fund the sum of THREE MILLION SIX HUNDRED
FOUR THOUSAND, EIGHT HUNDRED AND THIRTEEN DOLLARS ($3,604,813) for
payment of debt service on the 2008A Taxable Subordinate Tax Increment Revenue Bonds.
Introduced, considered favorably on first reading, and ordered published this 20th day of
January, A.D. 2009, and to be presented for final passage on the 3rd day of February, A.D. 2009.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 3rd day of February, A.D. 2009.
Mayor
ATTEST:
City Clerk