HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/05/2007 - SECOND READING OF ORDINANCE NO. 065, 2007, APPROPR ITEM NUMBER: 6
AGENDA ITEM SUMMARY DATE: June 5, 2007
FORT COLLINS CITY COUNCIL STAFF: Kelly DiMartino
Bev Gast
SUBJECT
Second Reading of Ordinance No. 065, 2007, Appropriating Prior Year Reserves in the General
Fund for Cultural Development and Programming Activities and the Fort Collins Convention and
Visitor's Bureau.
RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
EXECUTIVE SUMMARY
This Ordinance,unanimously adopted on First Reading on May 15, 2007, appropriates lodging tax
revenues that were in excess of 2006 budgeted lodging tax receipts to Cultural Development and
Programming("CDP"),Visitor Events,and the Convention and Visitors Bureau("CVB")accounts.
Lodging tax revenue for 2006 was estimated to be $610,521 and the 2006 budget appropriated an
equal amount. However, actual receipts totaled$841,586 for 2006 and the difference of$231,065
has not been appropriated.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary- May 15, 2007.
ATTACHMENT 1
ITEM NUMBER: 10
AGENDA ITEM SUMMARY DATE: May 15, 2007
FORT COLLINS CITY COUNCIL STAFF: Kelly DiMartino
Bev Gast
SUBJECT
First Reading of Ordinance No. 065, 2007,Appropriating Prior Year Reserves in the General Fund
for Cultural Development and Programming Activities and the Fort Collins Convention and
Visitor's Bureau.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
This Ordinance appropriates $ 0,2111 m th eral Fun (odging Tax Reserves for Cultural
Development and Programming P") r ts,an Convention and Visitor's Bureau
from the following sources:
Visitor
CDP Events CVB Total
Unappropriated 2006 Lodging Tax Receipts $59,427 $ 7,528 $164,110 $231,065
Prior Years Unexpended Funds 46.884 12,262 0 59,146
Total Appropriated $106,311 $19,790 $164,110 $290,211
EXECUTIVE SUMMARY
This Ordinance appropriates lodging tax revenues that were in excess of 2006 budgeted lodging tax
receipts to Cultural Development and Programming("CDP"), Visitor Events, and the Convention
and Visitors Bureau("CVB")ac s Lo t en r was estimated to be$610,521
and the 2006 budget appropria an e amo t. o ev a al receipts totaled$841,586 for
2006 and the difference of$2 665 ha of be prnate
f
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
programming activities. From 1996 to 2005,lodging tax dollars were distributed using an admittedly
May 15, 2007 -2- Item No. 10
complicated formula that included percentage distributions,abase amount that was adjusted for CPI,
a capital account and a series of contract amendments.
wuz . Ca
hi January 2006, City Council r iewe g stnY
n formula and determined that it
was appropriate to allocate t fundst i onvazner whereby the Fort Collins
Convention and Visitors Bureau vashe 1 lodgx dollars and the remaining 30%
is allocated to the Cultural Resources Board for distribution. This new distribution system is
compliant with City Code as the Cultural Resources Board is using 5%of its funds for the promotion
of convention and visitor activities.
This 70%/30% formula is included in the City's 2007 contract with the CVB. Based on lodging tax
collections through November, 2006, the CVB based its budget on a projected contract amount of
approximately $585,000. The total amount collected in 2006 is $841,586, resulting in a contract
commitment with the CVB for$589,110.
The suggested total 2007 allocation of surplus lodging tax receipts is as follows:
2007 Original
Appropriation 2006 Receipts Difference
CVB (70%) 5,00ply $164,110
Cultural Resources Boaz r
CDP and Visitor Activities
(30%) $185,521 $252,476 $66,955
Total $610,521 $841,586 $231,065
The CDP and Visitor Events accounts are managed by the Cultural Resources Board. In addition to
the unappropriated lodging tax, the CDP and Visitor Events accounts each had funds from revenue
received and previous year lodging tax allocations which were not used during 2006. The
unexpended 2006 funds are: CDP - $46,844, and Visitor Events - $12,262. These funds are in the
General Fund reserves for lodging taxes and must be appropriated into the respective CDP and
Visitor Events accounts.
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 pub ' io i c' . The City's Cultural Resources
Board reviews applications for ese fu and r m ations to the City Council.
Y.=' u
ORDINANCE NO. 065, 2007
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 CONVENTION AND VISITOR'S BUREAU
WHEREAS, Section 25-244 of the Code of the City of Fort Collins requires that lodging tax
revenue is to be allocated as follows: 75% for the promotion of convention and visitor activities and
25% for cultural development and programming activities; and
WHEREAS, the City estimates lodging taxes as part of the budget process and lodging tax
receipts exceeded the 2006 estimate by$231,065; and
WHEREAS, the excess lodging taxes should be allocated to the following accounts:
• Cultural Development and Programming account $ 59,427
• Visitor Events account $ 7,528
• Convention and Visitor's Bureau account $164,110
and
WHEREAS, the Cultural Development and Programming Account had prior year funds in
the amount of$46,884 that were not expended in 2006; and
WHEREAS, the Visitor Events Account had prior year funds in the amount of$12,262 that
were not expended in 2006; and
WHEREAS, at the end of 2006, all of the above lodging tax funds lapsed into the General
Fund Reserves for lodging taxes; and
WHEREAS,Article V, Section 9,of the Charter of the City of Fort Collins 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 Citywishes to appropriate all funds allocated for Cultural Development and
Programming, Visitor Events, and the Convention and Visitor's 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 ONE HUNDRED SIX THOUSAND THREE HUNDRED AND
ELEVEN DOLLARS ($106,311) 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 NINETEEN THOUSAND SEVEN HUNDRED NINETY
DOLLARS ($19,790) for Visitor Events.
Section 3. That there is hereby appropriated for expenditure from prior year reserves in
the General Fund the total sum of ONE HUNDRED SIXTY-FOUR THOUSAND ONE HUNDRED
TEN DOLLARS ($164,1 10) for the Convention and Visitor's Bureau.
Introduced, considered favorably on first reading, and ordered published this 15th day of
May, A.D. 2007, and to be presented for final pa4Mayr
th day of June, A.D. 2007.
A TEST:
City Clerk
Passed and al adopted on fin reading admg this Sth day of June, A.D. 2007.
Mayor
ATTEST:
City Clerk