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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/21/2010 - SECOND READING OF ORDINANCE NO. 096, 2010, APPROPR DATE: September21, 2010 AGENDA ITEM SUMMARY STAFF: Darin Atteberry FORT COLLINSCOUNCIL iD Second 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 paid the City of Fort Collins $16,948 as the 2007, 2008, and 2009 payments for public services and facilities. This Ordinance, unanimously adopted on First Reading on September 7,2010, refunds 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. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary-September 7, 2010 (w/o attachments) ATTACHMENT DATE: September 7, 2010 Y ` STAFF: Darin Atteberry • - • • 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=tiousing,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/,� /�- �\ Ir,—' n n On December 16, 1971, the City and(the Authority entered lint a Cooper ative Agreement which provided that the Authority must make annual PILOT payments to�the City/forithe 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 Authorityy..\ � �� Staff recommends that the 2007, 2008 and 2009 PILOT1 1 payme of $1.6;948 be appropriated as unanticipated revenue in the General Fund and remitted to the'she Authority�with the recommendation that the Authority use the funds in the manner consistent with HUD guidelines. The-ntended 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 P 2008 PILOT $3,916 2009 PILOT 7 006 $16,948 C 0 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 COPY COPY C 0 C� COPY 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 o 21st day of September D. 2010. Mayo ATTEST: _ ,40L�L - k - City Clerk Passed and adopted on final reading on the 21st day of September, A.D. 2010. Mayor ATTEST: City Clerk