HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/02/2009 - FIRST READING OF ORDINANCE NO. 065, 2009, APPROPRI ITEM NUMBER: 18
AGENDA .ITEM SUMMARY DATE: June 2, 2009
FORT COLLINS CITY COUNCIL STAFF: Kelly DiMartino
Bev Gast
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 $87,227 from the General Fund Lodging Tax Reserves for Cultural
Development and Programming("CDP"),Visitor Events, and the Convention and Visitors Bureau
from the following sources:
Visitor
CDP Events CVB Total
Unappropriated 2008 Lodging Tax Receipts $2106 $ 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
$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.
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 visitor activities and 25% for cultural development and
June 2, 2009 -2- Item No. 18
programming activities. The total amount collected in 2008 is $833,468, resulting in a contract
commitment with the CVB for $583,428.
The suggested total 2008 allocation of surplus lodging tax receipts is as follows:
2009 Budget 2008 Receipts Difference
CVB $522,367 $583,427 $61,060
Visitor Events 37,313 41,674 4,361
Total Visitor
Activities 75% $559,680 $625,102 $65,421
CDP 1 - Cultural
Activities 25% $186,561 $208,367 $21,806
Total $746,241 $833,468 $87,227
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. 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,ofthe City Charterpermits 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 7th day of July, A.D. 2009.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 7th day of July, A.D. 2009.
Mayor
ATTEST:
City Clerk