The URL can be used to link to this page

Home My WebLink AboutCOUNCIL - AGENDA ITEM - 09/07/2010 - FIRST READING OF ORDINANCE NO. 096, 2010, APPROPRI DATE: September 7, 2010 AGENDA ITEM SUMMARY ik STAFF: Darin Atteberry FORT COLLINSCOUNCIL SUBJECT First Reading of Ordinance No. 096, 2010, Appropriating Unanticipated Revenue in the General Fund to the Fort Collins Housing Authority to Fund Affordable Housing and Related Activities. EXECUTIVE SUMMARY The Fort Collins Housing Authority ("Authority") paid the City of Fort Collins $16,948 as the 2007, 2008, and 2009 payments for public services and facilities. The Authority requests that the City refund the Payment in Lieu of Taxes (PILOT) to fund sorely needed affordable housing related activities and to attend to the low-income housing needs of Fort Collins residents. Resolution 1992-093 reinstated the requirement that the Authority make annual PILOT payments to the City. The City may spend the PILOT revenues as it deems appropriate in accordance with law, including remitting the funds to the Authority if the Council determines that such remittal serves a valid public purpose. The Council has remitted the PILOT payment to the Authority since 1992. BACKGROUND / DISCUSSION On December 16, 1971, the City and the Authority entered into a Cooperative Agreement which provided that the Authority must make annual PILOT payments to the City for the public services and facilities furnished by the City. In 1986, upon request of the Authority, the City Council adopted a resolution which relieved the Authority of its obligation to make the PILOT payments. Based on that resolution, the Authority did not make PILOT payments from 1987 through 1990. The Authority also received a refund from the City of PILOT payments for the years 1984, 1985 and 1986. In 1992, the City Council approved a change in the Cooperative Agreement to reinstate the requirement that the Authority pay the annual PILOT payment. The change was done to clarify that PILOT payments are owed to the City and to avoid the possibility that the Department of Housing and Urban Development ("HUD") might require the Authority to return the PILOT payments to the federal government. Since that time, the City has refunded the annual PILOT payments to the Housing Authority. Staff recommends that the 2007, 2008 and 2009 PILOT payments of $16,948 be appropriated as unanticipated revenue in the General Fund and remitted to the Authority with the recommendation that the Authority use the funds in the manner consistent with HUD guidelines. The intended use for the funds is affordable housing and related activities. FINANCIAL/ ECONOMIC IMPACTS The City received unanticipated revenue from the Fort Collins Housing Authority in the amount of$16,948 as the 2007, 2008, and 2009 payments for public services and facilities. The revenue was placed in the General Fund. This Ordinance will return the funds to the Housing Authority to be used for affordable housing and related activities. 2007 PILOT $6,026 2008 PILOT $3,916 2009 PILOT $7,006 $16,948 September 7, 2010 -2- ITEM 11 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ATTACHMENTS 1. Letter from the Fort Collins Housing Authority, June 23, 2010 ATTACHMENT 1 { r � l Fort Collins Housing Authority i June 23, 2010 Mayor Hutchinson and Honorable City Council City of Fort Collins 300 LaPorte Avenue Fort Collins, Colorado 80521 1 t Dear Honorable Mayor Hutchinson and City Council, is is As you may know, the Fort Collins Housing Authority and the City of Fort Collins entered into a Cooperative Agreement when the Authority was formed in 1971. As a tart f' ofthat agreement and in accordance with state and federal law, a Payment In Lieu of Taxes (PILOT) is accepted for the 154 federally funded Low Income Public Housing units owned and operated by the Authority. The PILOT is calculated using tenant rents minus utilities. Historically, the Council has graciously returned this PILOT in order to help support these properties which serve families and seniors typically earning between 0 and 30% of Area Median Income. This program's operating subsidy is dependent upon Congressional appropriations which have fallen short of the operating needs for many years, therefore the refunded PILOT continues to be very important to the operation of this program. We respectfully request return of the PILOT balance due of$16,948 for a portion of 2007, 2008 and 2009. On behalf of the 154 families residing in these properties I would like to express sincere appreciation. Your commitment to supporting affordable housing l for our community's lowest income families is very apparent and commendable. Sincerely, Pa Pkdy, Chairperson FCHA Board of Commissioners I. Enclosure cc: Darin Atteberry, City Manager is a r: 171 5 W. Mountain Avc. Fort Collins. CO 80521 Tel: (970) 916-2910 Fax: (970) 22 1-082 1 wsstiv.fcgoucom/housingauthority I f. r rr.$ DATE:07/01/2010 CKH:48161 TOTAL:S16,948.00** BANK:Revolving(revolve) Ii PAYEE-City Of Ft.Collins-Finance Dept(tt)001068) iS i Property Account Invoice-Date Description Amount f FC Public Housing Accrued PI PILOT-07/01/2010 2007 PILOT 6,026.00 FC Public Housing Accrued PI PILOT-07/01/2010 2008 PILOT 3,916.00 # FC Public Housing Accrued Pt PILOT-07/01/2010 2009 PILOT 7,006.00 if f'. 16,948.00 i r • j: i 1, y{ :7 Fort Collins Housing Authority IstBank.. 48161 Revolving Account. Fort Collins,CO 80527 is 1715 W. Mountain Ave. Fort Collins,CO 80521 82-630/1070 VOID AFTER 90 DAYS ' r+ 07/01/2010 $16,948.00** (; ( FAY ****SIXTEEN THOUSAND NINE HUNDRED FORTY EIGHT AND'00/100 DOLLARS TO THE City Of Ft.Collins-Finance Dept ORDER OF Po BOX 580 Fort Collins,CO 80522 \ :� r i u'04816Ills 1: 10 7006 30 5t:a 1455069991P DATE07/0112010 CK4:48161 TOTAL:S16,948.00** BANK:Revolving(revolve) l; PAYEE:City Of Ft.Collins-Finance Dept(WO1068) F; Property Account Invoice- Date Description Amount ` i FC Public Housing Accrued PI PILOT-07;0U2010 2007 PILOT 6,0_6.00 FC Public Housing Accrued PI PILOT-07;01;2010 2008 PILOT 3,916.00 " FC Public Housing Accrued PI PILOT-OT01/20 t0 2009 PILOT 7.006.00 16,948.00 i' 1 i i i I' is 4 ORDINANCE NO. 096, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE GENERAL FUND TO THE FORT COLLINS HOUSING AUTHORITY TO FUND AFFORDABLE HOUSING AND RELATED ACTIVITIES WHEREAS, the City has received a payment from the Fort Collins Housing Authority (the "Authority") of$16,948 in satisfaction of its 2007, 2008, and 2009 payments in lieu of taxes ("PILOTs"); and WHEREAS, the Authority has requested that the 2007, 2008 and 2009 PILOT payments be appropriated by the City Council for expenditure by the Authority to fund affordable housing related activities and to attend to the housing needs of low-income Fort Collins residents; and WHEREAS, said payment of$16,948 was not projected as a revenue source in the 2010 City budget; and WHEREAS, the City Council has determined that the provision of affordable housing serves an important public purpose and is an appropriate use of these funds; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, City staff has determined that the appropriation of the Authority PILOT payment as described herein will not cause the total amount appropriated in the General Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from unanticipated revenue in the General Fund the sum of SIXTEEN THOUSAND NINE HUNDRED FORTY EIGHT DOLLARS ($16,948) to the Fort Collins Housing Authority to fund affordable housing and related activities for Fort Collins residents consistent with the Federal Department of Housing and Urban Development guidelines. Introduced, considered favorably on first reading, and ordered published this 7th day of September, A.D. 2010, and to be presented for.final passage on the 21st day of September, A.D. 2010. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 21 st day of September, A.D. 2010. Mayor ATTEST: City Clerk