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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/07/2009 - SECOND READING OF ORDINANCE NO. 065, 2009, APPROPR ITEM NUMBER: 9 AGENDA ITEM SUMMARY DATE: July 7, 2009 FORT COLLINS CITY COUNCIL STAFF: Kelly DiMartino Bev Gast SUBJECT Second Reading of Ordinance No. 065, 2009, Appropriating Prior Year Reserves in the General Fund for Cultural Development and Programming Activities and the Fort Collins Convention and Visitors Bureau. RECOMMENDATION Staff recommends adoption of this Ordinance on Second Reading. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on June 2, 2009, appropriates lodging tax revenues that were in excess of 2008 budgeted lodging tax receipts to Cultural Development and Programming("CDP"),Visitor Events,and the Convention and Visitors Bureau("CVB")accounts. Lodging tax revenues for 2008 were estimated to be $746,241 and the 2008 budget appropriated an equal amount. However,actual receipts totaled$833,468 for 2008 and the difference of$87,227 has not been appropriated. The CDP and Visitor Events accounts each had funds from revenue received and previous year lodging tax allocations which were not used during 2008. The unexpended 2008 funds are: CDP - $75,207, and Visitor Events - $54,031. These funds are in the General Fund reserves for lodging taxes and must be appropriated into the respective CDP and Visitor Events accounts. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - June 2, 2009. (w/o original attachments) ATTACHMENT 1 ITEM NUMBER: 18 AGENDA ITEM SUMMARY DATE: June 2, 2009 FORT COLLINS CITY COUNCIL STAFF: Kelly DiMartino Tifi� 7 Bev Gast r � IL SUBJECT First Reading of Ordinance No. 065,2009,Appropriating Prior Year Reserves in the General Fund for Cultural Development and Programming Activities and the Fort Collins Convention and Visitors Bureau. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT This Ordinance appropriates $7,227 ffo'm the�LPral'Fund' 'Llodging Tax Reserves for Cultural Development and Programming(,"CDP") V-isitor Events, and the Convention and Visitors Bureau from the following sources: Visitor CDP Events CVB Total Unappropriated 2008 Lodging Tax Receipts $21,806 $ 4,361 $ 61,060 $87,227 Prior Years Unexpended Funds 75,207 54,031 0 129,238 Total Appropriated $97,013 $58,392 $61,060 $216,465 EXECUTIVE SUMMARY This Ordinance appropriates lodging tax revenues that were in excess of 2008 budgeted lodging tax receipts to Cultural Development and Programming("CDP"), Visitor Events, and the Convention and Visitors Bureau ("CVB") accounts. Lodging tax revenues for 2008 were estimated to be nn rl // \ �� �rC $746,241 and the 2008 budget,appropriated an equal amount.�However, actual receipts totaled $833,468 for 2008 and the difference of$87,227 ha �no{been ppropriated. The CDP and Visitor Events accounts each had funds from revenue received and previous year lodging tax allocations which were not used during 2008. The unexpended 2008 funds are: CDP - $75,207, and Visitor Events - $54,031. These funds are in the General Fund reserves for lodging taxes and must be appropriated into the respective CDP and Visitor Events accounts. June 2, 2009 -2- Item No. 18 BACKGROUND Section 25-244 of the City Code requires that 75%of the total lodging tax receipts are to be used for the promotion of convention/and visitoI Itr activities and125°/ for cultural development and programming activities. The total amount collected in�2008 is $833,468, resulting in a contract commitment with the CVB for $583,420' The suggested total 2008 allocation of surplus lodging tax receipts is as follows: 2009 Budizet 2008 Receipts Difference CVB $522,367 $583,427 $613060 Visitor Events - 37,313 41,674 4,361 Total Visitor Activities 75% $559,680 $625,102 $65,421 CDP1 - Cultural Activities 25% $186,561 $208,367 $21,806 Total $746,241 $833,468 $87,227 This Ordinance also appropriates,-the DP and Visitor Events fundsi the General Fund reserves for I.l 141 1' 1 , `\d lodging taxes to be used to support events hat prorv�ide 1a public blenefit to the Fort Collins community and promote the utilization of public aaccomm�oddations Within the city. The City's Cultural Resources Board reviews applications for these funds and makes recommendations to the City Council. COPY ORDINANCE NO. 065, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR CULTURAL DEVELOPMENT AND PROGRAMMING ACTIVITIES AND THE FORT COLLINS CONVENTION AND VISITORS BUREAU WHEREAS,Section 25-244 of the City Code requires that lodging tax revenues be allocated as follows: 75% for the promotion of convention and visitor activities and 25% for cultural development and programming activities; and WHEREAS,during the budget process,lodging taxes are appropriated based on an estimate of lodging tax revenues and in 2008 lodging taxes exceeded the estimated amount by $87,227 (the "Excess Lodging Tax"); and WHEREAS, based upon the required allocation, the Excess Lodging Taxes should be distributed in the following amounts to the following accounts: • Cultural Development and Programming account $ 21,806 • Visitor Events account $ 4,361 • Convention and Visitors Bureau account $ 61,060 and WHEREAS, in addition, the Cultural Development and Programming Account had funds from prior years in the amount of$75,207 that were not expended in 2008; and WHEREAS, also, the Visitor Events Account had funds from prior years in the amount of $54,031 that were not expended in 2008; and WHEREAS, at the end of 2008, all of the above lodging tax funds lapsed into the General Fund Reserves for lodging taxes; and WHEREAS,Article V,Section 9,of the City Charter 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 of the above-described funds to be allocated for cultural development and programming,visitor events,and the Convention and Visitors Bureau. 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 of NINETY SEVEN THOUSAND THIRTEEN DOLLARS ($97,013) 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 FIFTY EIGHT THOUSAND THREE HUNDRED NINETY TWO DOLLARS ($58,392) for Visitor Events. Section 3. That there is hereby appropriated for expenditure from prior year reserves in the General Fund the total sum of SIXTY ONE THOUSAND SIXTY DOLLARS ($61,060) for the Convention and Visitors Bureau. Introduced, considered favorably on first reading, and ordered published this 2nd day of June, A.D. 2009, and to be presented for final passage on the 7 ay of July, A.D. 2009. May ' ATTEST: A tl �. S" City Clerk Passed and adopted on final reading on the 7th day of July, A.D. 2009. Mayor ATTEST: City Clerk