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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/07/2006 - ITEMS RELATING TO THE 2007 DOWNTOWN DEVELOPMENT AU ITEM NUMBER: 13 A-B AGENDA ITEM SUMMARY DATE: November7, 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 Second Reading. EXECUTIVE SUMMARY A. Second 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. Second 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. Both Ordinances were unanimously adopted on First Reading on October 17, 2006. ITEM NUMBER: 22 A-B AGENDA ITEM SUMMARY DATE: October 17, 2006 FORT COLLINS CITY COUNCIL STAFF: Chip Steiner SUBJECT s' X 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 Downt v nt Yel fiscal Year Beginning January 1, 2007, and Fixing th ill L fort w pment Authority for 2007 at Five Mills. rr 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 t t th ") was eated 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. hi 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 finaCst=7ratiii g t in t, D has the ability under State law to assess a mill levy for adm oper ance purposes. The mill levy proposed by the Board of Dire2 7 is e i s. Esti ated revenue from the mill levy for 2007 is $440,000. The total obu r 7 is $6, 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 DowntoCReco otho ony iscal Year Ending December 31, 2007. 2. DDA Resolution 2006t City Council the Determining and Fixing of the Millo DeAuthority 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. C .. ORDINANCE NO. 171, 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 erectors 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 ofanytax 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 within the DDA District as of December 31 2006 shall be 5.0 mills property 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 pass the 7th day of Nove er, A.D. 2006. w Mayor ATTEST: City Clerk Passed and adopted on final reading this 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 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 Latimer 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 ofONE 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 t day of November, 2006. Mayo ATTEST: City Clerk Passed and adopted on final reading on the 7th day of November, A.D. 2006. Mayor ATTEST: City Clerk