HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/17/2006 - ITEMS RELATING TO THE 2007 DOWNTOWN DEVELOPMENT AU ITEM NUMBER: 22 A-B
AGENDA ITEM SUMMARY DATE: October 17, 2006
FORT COLLINS CITY COUNCIL STAFF: Chip Steiner
SUBJECT
Items Relating to the 2007 Downtown Development Authority Budget.
RECOMMENDATION
Staff and the Downtown Development Authority Board recommend adoption of the Ordinances on
First Reading.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 171, 2006, Appropriating Operating Funds and Approving
the Budget of the Downtown Development Authority for the Fiscal Year Beginning January
1, 2007, and Fixing the Mill Levy for the Downtown Development Authority for 2007 at
Five Mills.
B. First Reading of Ordinance No. 172, 2006, Appropriating Revenue in the Downtown
Development Authority Debt Service Fund for Payment of Debt Service for the Year 2007.
The Downtown Development Authority Board of Directors (the 'Board") adopted its proposed
budget for 2007 totaling $6,196,867 on September 7, 2006. The Board determined the mill levy
necessary to provide for payment of administrative costs incurred by the DDA at its regular meeting
of September 7, 2006. Ordinance No. 171, 2006, appropriates the DDA operating funds and sets
the mill levy.
Ordinance No. 172, 2006, appropriates funds for 2007 DDA debt service payments from the tax
increment received by the City.
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. The first issuance of tax increment bonds occurred in 1984 and there have
been subsequent issues through 2005. To date, no bonds have been issued in 2006, although a new
issue may be requested of City Council prior to the end of the year to fund the Beet Street Cultural
October 17, 2006 -2- Item No. 22 A-B
Program and capital projects the DDA has made contingency commitments to over the past 10
months.
In addition to the projects financed using the tax increment,the DDA has the ability under State law
to assess a mill levy for administration, operations, and maintenance purposes. The mill levy
proposed by the Board of Directors for 2007 is five mills. Estimated revenue from the mill levy for
2007 is $440,000. The total operating budget for 2007 is $6,196,867.
The DDA also asks Council to appropriate funds from the Downtown Development Authority Debt
Service Fund for current debt. The current debt includes outstanding bonds and the final payment
for its one-third share of the Parking Structure. The DDA Board adopted a Resolution on September
7, 2006, for the outstanding bonds, and anticipates approving its share of the Parking Structure on
October 18, 2006.
ATTACHMENTS
1. DDA Resolution 2006-04 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 for the Fiscal Year Ending December
31, 2007.
2. DDA Resolution 2006-05 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, 2007.
3. DDA Resolution 2006-06 Recommending to the Fort Collins City Council the Appropriation
of$1,407,430 from the Downtown Development Authority Debt Service Fund for Payment
of Debt Service for the Fiscal Year ending December 31, 2007.
10/10/2006 13:22 9704842069 DDAIDEA PAGE 02
ATTACHMENT 1
RESOLUTION 2006-04
OF THE BOARD OF DIRECTORS OF THE FORT I;OLLINS
DOWNTOWN DEVELOPMENT AUTHORTI'Y
APPROVING AND RECOMMENDING
TO THE FORT COLLINS CITY COUNCIi.
THE BUDGET OF THE ESTIMATED AMOUNTS REQL"(RED TO PE.11'
THE EXPENSES OF CONDUCTING THE BUSINESS
OF THE DOWNTOWN DEVELOPMENT AUTH(>RITY
FOR THE FISCAL YEAR ENDING DECEMBER M,2007
WHEREAS, the Fort Collins Downtown Development Autbority has bear duly
organized in accordance with the Colorado Revised Statutes 31-25-804, 19 73 as amended; i nd,
WHEREAS, the Board of Directors of the Downtown Development Author';! shall
under Colorado Revised Statutes, 31.25-816, 1973 adopt a budget of the setimated revel i.i m and
expeeditmes to be received and incurred during fiscal year ending Deoeml px 31,2007.
NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECT(i E S OF
THE DOWNTOWN DEVELOPMENT AUTHORITY that the follorsing budget is o[opted
for the fiscal year ending December 31, 2007 and therefore recommends to the Counc i. of the
City of Port Collins the adoption of this budget.
Revenues:
Ad Valorem Taxes $440,000
Auto Specific Ownership Tax 43,100
Interest Earnings 150,000
Licenses and Permits 2,700
Undesignated Reserves 138,820
Contributions 40,000
Project Mgmt. 120,000
Bond Proceeds 5,262,247
TOTAL
*196,867
Expenses:
Personal Services S264,948
Contractual Services 556,622
Commodities 81050
capital Out* 5,362,247
5,000
TOTAL $6,196,867
Passed and adopted at a regular meeting 4tloBofDirectors Ftha Fort Coll,iii
Downtown Development Authority this 7a day o2 Chair .�
IST:
Carey Hewi
10/10/2006 13:22 9704842069 DDA/DEA PAGE 03
ATTACHMENT
RESOLUTION 2006-05
OF THE BOARD OF DIRECTORS OF LBE
FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORIT.1
RECOMMENDING TO THE FORT COLLINS CITY COUNCI::.
THE DETERMINING AND FIXING OF THE PULL LEVY
OF THE DOWNTOWN DEVELOPMENT AUTHORITY
FOR THE FISCAL YEAR ENDING DECEMB:ER 31,2007
WHEREAS, the Fort Collins Downtown Development Aulhority has bc:i. duly
organized in accordance with the Colorado Revised Statutes I1-25-904, 1!;,F3 as
amended;and,
WHEREAS, the Board of Directors of the Downtown Devvelopment A:':iority
finds that a mill levy of five (5) mills to be sufficient to cocci the operatio r:I and
administrative needs of the Authority for fiscal year 2007.
NOW, THEREFORE, BE IT RESOLVED BY -[HE BOARD OF
DIRECTORS OF THE DOWNTOWN DEVELOPMENT AUTHORITY OI' THE
CITY OF FORT COLUNS, to recommend to the Council of thi s City of Fort 4::Alin
the mill levy rate for taxation upon all the taxable property within the Do iritown
Development Authority District for the fiscal year ending DeeembiT 31, 2007 b: set at
five (5) mills which is sufficient to raise ad valorem revenues for the 2007 Op(!:;itions
and Maintenance Budget as approved by the Downtown Develops i mt Authoritl ,vhich
levy represents the amount of texas for the Downtown Developmem Authority(hi i v ever,
said mill levy is subject to change based on the assessor's calcula;:ons which h i-.a not
been published at this tinge). Said mill levy shall be distributed to ge ireral expense. vhich
levy as so distributed shall be certified by the County Assessor i:rd the Board c f the
County Commissioners of T.arimer County, Colorado by the City ,::lerk as prov,iI.Z by
law.
Passed and adopted at a regular meeting of the Board of::iirectors of tir: Fort
Collins Downtown Development Authority this'P day of Septembci, 2006.
ATTEST: Steve a , i ..
L(Jln1M YIPi .
Carey Heft Secretary
10/10/2006 13:22 9704042069 DDA/DBA PACE 04
ATTACHMENT 3
RESOLUTION 2006-06
OF THE BOARD OF DIRECTORS
OF THE FORT COLLINS DOWNTOWN DEVELOPMENT'AUTHORITY
RECOMMENDING TO THE FORT COLLINS CITY COUNCIL
THE APPROPRIATION OF$1,407,430(ONE MILLION,F;IUR HUNDI III D
SEVEN THOUSAND,FOUR HUNDRED AND THIRTY D OLLARS)Al,'1)
S282,674(TWO HUNDRED EIGHTY TWO THOUSAND,SU I HUNDRED d ND
SEVENTY FOUR DOLLARS)FROM THE DOWNTOWN I1EVELOPMF1V r
AUTHORITY DEBT SERVICE FUND FOR PAYMENT OF DE I tT SERVICF a ND
THE DDA'S OBLIGATION FOR THE CIVIC CENTER PARK I NG STRUCT'I,RE
FOR THE FISCAL YEAR ENDING DECEMBER 310 2007
WHEREAS,the Fort Collins Downtown Development Author ty has been du I i,
organized in accordance with the Colorado Revised Statutes 31-25-804 1973 as amer:.t d;
and,
WHEREAS,pursuant to Ordinance No. 15, 1933,the Council-3f the City of.l i::t
Collins established a special fund consisting of separate accounts for: (1;1 operation an i
maintenance expenses of the Fort Collins Downtown Development Aut I.ority; (2)tax
increment funds received by the Fort Collins downtown Development E,uthority;and i;I
Project fimds consisting of proceeds of bonds,loans,and other forms of indebtedness; ;.; d,
WIIEREAS,Section 2 of Ordinance No.95, 1997 provides the: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 DMECTOIA!i OF
THE FORT COLLINS DOWNTOWN DEVELOPMENT AUT13;)RITY that i I
recommends to the Council of the City of Fort Collins the appropriat on for expend i I:rre
in 2007 from the tax increment fimd,the sum of S 1,690,104(One Mi i lion,six hunk t d
ninety thousand,one hundred and four Dollars)for payment of debt E imee on
outstanding Tax Increment bonds authorized by City Council.
Passed end adopted at a regular meeting of the Board of Dirccto;r;of the Fort C:d I ins
Downtown Development Authority this 7'"day of September,2006.
S Taylor,Cho i
ATTEST: —
Carey Ti Seer
ORDINANCE NO. 171, 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING REVENUE IN THE
DOWNTOWN DEVELOPMENT AUTHORITY DEBT SERVICE FUND
FOR PAYMENT OF DEBT SERVICE 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,in Ordinance No.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's payment for principal, interest, and debt service requirements on
the total outstanding bonds will be $1,407,430 in 2007; 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 (the "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 2011; and
WHEREAS, the DDA's share of the 2007 lease payments for the Parking Structure is
$281,824; 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 hereby appropriated for expenditure from the Downtown
Development Authority Debt Service Fund the sum of ONE MILLION FOUR HUNDRED SEVEN
THOUSAND FOUR HUNDRED THIRTY DOLLARS ($1,407,430) 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 TWO HUNDRED EIGHTY-ONE
THOUSAND EIGHT HUNDRED TWENTY FOUR DOLLARS ($281,824), 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 17th day of
October, A.D. 2006, and to be presented for final passage on the 7th day of November, A.D. 2006.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 7th day of November, A.D. 2006.
Mayor
ATTEST:
City Clerk
ORDINANCE NO. 172, 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING OPERATING FUNDS OF THE
DOWNTOWN DEVELOPMENT AUTHORITY
FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2007,
AND FIXING THE MILL LEVY FOR THE
DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2007
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 September 7,2006,the DDA Board of Directors(the"DDA Board"),acting
under the provisions of Section 31-25-816, C.R.S., adopted a budget for the fiscal year beginning
January 1, 2007, and determined the mill levy necessary to provide for payment during fiscal year
2007 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 SIX MILLION ONE
HUNDRED THOUSAND EIGHT HUNDRED SIXTY SEVEN DOLLARS ($6,196,867) in the
DDA Operation and Maintenance Fund for the fiscal year beginning January 1, 2007 and ending
December 31, 2007, to be used as follows:
• DDA Projects from anticipated bond proceeds $ 5,262,247
• DDA Operations &Maintenance from taxation and otherwise 934,620
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, 2006.
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 NINE HUNDRED THIRTY
FOUR THOUSAND SIX HUNDRED TWENTY DOLLARS ($934,620),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 FIVE MILLION TWO
HUNDRED SIXTY TWO THOUSAND TWO HUNDRED FORTY SEVEN DOLLARS
($5,262,247), to be raised by bond proceeds anticipated to be issued in 2007.
Section 3. That the 2007 mill levy rate for the taxation upon each dollar of the assessed
valuation of all taxable property within the DDA District as of December 31,2006 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 17th day of
October,A.D. 2006, and to be presented for final passage on the 7th day of November,A.D. 2006.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 7th day of November, A.D. 2006.
Mayor
ATTEST:
City Clerk