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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/01/2010 - FIRST READING OF ORDINANCE NO. 063, 2010, APPROPRI DATE: June 1, 2010 AGENDA ITEM SUMMARY STAFF: Steve Seefeld _T COLLINS CITY COUNCIL 1 Jill Stilwell First Reading of Ordinance No. 063, 2010, Appropriating Prior Year Reserves in the Cultural Services Fund for Transfer to the Capital Projects Fund and Appropriating Unanticipated Revenue in the Capital Projects Fund for the Building on Basics Lincoln Center Renovation Project. EXECUTIVE SUMMARY The Lincoln Center Renovation project is funded primarily through the Building on Basics capital tax renewal approved by voters in 2005. Unanticipated grant revenue and prior year reserves in the Cultural Services Fund will be used to complete the full scope of the$7.3 million project. Approximately$5.5 million has been appropriated from the Building on Basics tax and this ordinance appropriates an additional $1.4 million from unanticipated grant revenue and prior year reserves in the Cultural Services Fund. The remaining$400,000 needed will be raised through fund-raising with the Building on Basics dollars being leveraged to complete the full scope of the capital project. BACKGROUND / DISCUSSION The 32 year-old Lincoln Center's greatest challenge is its aging and outdated spaces. The facility is well-loved and well-used by the community, as evidenced by being fully booked year-round. However, the infrastructure of the building was never designed to accommodate the sheer volume of visitors the building hosts each year. A significant renovation of Lincoln Center is needed, to add 17,000 sq.ft.and renovate 55,000 sq.ft.with a focus on improving the patron experience, performer amenities, and infusing new life into a community treasure. In 2005,voters approved the Building on Basics capital tax renewal which dedicated$5.487 million towards renovating the Lincoln Center. The total project cost is estimated at$7.3 million. Additional fundraising efforts are underway to complete the full scope of the project. FINANCIAL IMPACT This Ordinance will appropriate additional funding for the Lincoln Center Renovation as follows: Downtown Development Authority acoustical improvements grant: $621,855 Community Foundation of Northern Colorado Agency Fund: $461,551 Gates Family Foundation grant: $110,000 Prior Year Reserves (Cultural Services): $200,000 The total cost of the project is estimated at$7.3 million. Approximately$5.5 million has been appropriated from the BOB tax and this ordinance appropriates an additional $1.4 million. The remaining $400,000 needed will be raised through fundraising with the Building on Basics dollars being leveraged to complete the full scope of the capital project. Cultural Services reserves will be used to match grants and fundraising efforts will continue,which will lessen the impact to reserves as additional dollars are committed to the project. Building on Basics also included$24,000 of revenue for seven years to off-set additional operating costs for the renovated facility. SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS ECONOMIC: This project is leveraging voter approved dollars to fundraise additional support in the community. The Lincoln Center consistently provides programs and facilities that contribute to the$16 million economic impact of the arts in Fort Collins annually and to Fort Collins as a dynamic and distinctive center for arts and culture. June 1, 2010 -2- ITEM 10 SOCIAL:The Lincoln Center is a welcoming gathering place,offering opportunities for social interaction among friends, neighbors, and community. The renovation will enhance this experience and the Lincoln Center's role as one of the community's major gathering places. ENVIRONMENTAL: The Lincoln Center renovation will meet LEED Gold standards and strive for energy efficiency. In addition, as part of the City's Energy Challenge, the carbon footprint of the building has been reduced by 30%since 2005. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 063, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE CULTURAL SERVICES FUND FOR TRANSFER TO THE CAPITAL PROJECTS FUND AND APPROPRIATING UNANTICIPATED REVENUE IN THE CAPITAL PROJECTS FUND FOR THE BUILDING ON BASICS LINCOLN CENTER RENOVATION PROJECT WHEREAS, on November 1, 2005, Fort Collins voters passed Ordinance No. 092, 2005 approving the "Building on Basics" ("BOB") tax for certain capital projects; and WHEREAS, included in the BOB capital projects is approximately $5.5 million for a renovation of the Lincoln Center; and WHEREAS, the Lincoln Center, which has been the center of Fort Collins' cultural life for 32 years, is in need of improvements and this project will add 17,000 square feet and renovate 55,000 square feet with a focus on improving the patron experience, performer amenities, and infusing new life into the facility; and WHEREAS,the City has been awarded$110,000 from the Gates Family Foundation and will receive $461,551 from the Community Foundation of Northern Colorado Agency Fund for the renovation of the Lincoln Center; and WHEREAS, on December 10, 2009, the Board of the Downtown Development Authority approved a $621,855 grant to make acoustical improvements to the Lincoln Center; and WHEREAS,the Cultural Services Fund has prior year reserves of approximately$800,000 available for the Lincoln Center and staff wishes to appropriate$200,000 for transfer to the Lincoln Center Renovation Capital Project; and WHEREAS,this ordinance appropriates the$200,000 from Cultural Services Fund prior year reserves for transfer to the Lincoln Center Renovation Project in the Capital Projects Fund and also appropriates the three grants that have been received for a total addition to the project budget of $1,393,406; and WHEREAS, the total cost of the renovation project is estimated to be $7.3 million, with $5.5 million currently appropriated from the Building on Basics tax, approximately$1.4 million to be appropriated by this ordinance and the remaining funds of $400,000 to be raised through continued fundraising efforts; and WHEREAS,Article V, Section 9 of the City Charter 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, 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 have determined that the appropriation of the revenue as described herein will not cause the total amount appropriated in the Capital Projects 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 as follows: Section 1. That there is hereby appropriated for expenditure from prior year reserves in the Cultural Services Fund the sum of TWO HUNDRED THOUSAND DOLLARS ($200,000) to be transferred to the Capital Projects Fund and appropriated therein for the Building on Basics-Fort Collins Lincoln Center Renovation Project. Section 2. That there is hereby appropriated for expenditure from unanticipated revenue in the Capital Projects Fund the sum of ONE MILLION ONE HUNDRED NINETY-THREE THOUSAND FOUR HUNDRED SIX DOLLARS ($1,193,406) for the Building on Basics - Fort Collins Lincoln Center Renovation Project. Introduced,considered favorably on first reading,and ordered published this 1 st day of June, A.D. 2010, and to be presented for final passage on the 15th day of June, A.D. 2010. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 15th day of June, A.D. 2010. Mayor ATTEST: City Clerk