Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/01/2010 - ITEMS RELATING TO THE POUDRE RIVER PUBLIC LIBRARY DATE: June 1, 2010 AGENDA ITEM SUMMARY STAFF: Darin Atteberry FORT COLLINSCOUNCIL Items Relating to the Poudre River Public Library District. A. First Reading of Ordinance No. 064, 2010, Amending Chapter 7.5, Article II and Chapter 8, Article III of the City Code to Discontinue the Library Capital Improvement Expansion Fee. B. First Reading of Ordinance No. 065, 2010, Repealing Chapter 23,Article VII of the City Code Regarding the Care and Custody of the Library. EXECUTIVE SUMMARY Since 1996, the City has imposed an impact fee on residential building permits as a means of funding the increased demand for library services that comes with a growing community. In 2006, voters approved the formation of a new Library District funded primarily by property taxes and a portion of the Building on Basics sales tax. The Intergovernmental Agreement between the City, Larimer County, and the Poudre River Public Library District notes that following the opening of Council Tree Library, the Fort Collins City Council will consider whether to continue imposing a library impact fee. The Council Tree Library opened in March 2009. Since that time, both Larimer County and the Town of Timnath have chosen not to impose an impact fee for library services. Ordinance No. 064, 2010,will discontinue the current library expansion fee imposed on residential properties in Fort Collins, and eliminate the library capital improvement expansion account within the capital improvement expansion fund. Ordinance No. 065, 2010 repeals the last remaining City Code reference to.the library, dealing with the care and custody of the library, which now belongs to the Library District. BACKGROUND / DISCUSSION In November 2006,voters approved the formation of what is now called the Poudre River Public Library District. The District provides library services to approximately 170,000 residents of northern Larimer County, 85%of which reside inside the Fort Collins city limits. Funding is primarily provided by a property tax rate of 3 mills and a portion of the City's sales tax approved for the Building on Basics agenda. Building on Basics funds run through 2015 and are dedicated to library technology Since 1996, the City has imposed an impact fee on residential building permits as a means of funding the increased demand for library services that comes with a growing community. An Intergovernmental Agreement(IGA)clarifying the rights, obligations and responsibilities of the City of Fort Collins, Larimer County and the District was signed in December 2007. That IGA states that once the City makes final payment on the Council Tree Library, "...the City Council will consider, after consultation with the District, continued imposition of the City Impact Fee and remittance of such revenues to the District." The Council Tree Library was completed and opened to the public on March 28, 2009. That same month, District representatives met with Council and discussed the future of City impact fees. Council noted that, prior to making a decision on whether or not the City will continue to assess an impact fee, it wished to get some resolution as to whether or not Larimer County intended to impose an equitable fee on County residents who live inside Library District boundaries. (See Attachment 1) District representatives also met with the Larimer County Board of Commissioners in March 2009 and requested that Commissioners consider imposing an impact fee on residential development within the District boundaries. Commissioners responded that they would be willing to discuss a fee, but that the District would need to show a clear connection between a fee and the services received by residents living outside Fort Collins. June 1, 2010 -2- ITEM 11 In December 2009,the District made a presentation to the Timnath Town Council and was told that existing annexation agreements preclude charging additional fees. Therefore,Timnath will not impose an additional fee for Library District growth and expansion. Fort Collins City Manager Darin Atteberry met with Library District Executive Director Holly Carroll in February 2010 to discuss the City Council taking action to discontinue the collection of a capital expansion fee for the District. Ms. Carroll requested a delay of a City decision until the District.could formally meet with County Commissioners about imposing a capital expansion fee for non-city development in the District. In March 2010, Library District representatives formally met with the Larimer County Board of County Commissioners and requested that it implement a county impact fee. The Commissioners declined to do so, citing the current economic situation and the fact that County residents living in the unincorporated areas currently pay 25% of the property tax support of the District. Commissioners stated that"...adopting an impact fee in addition to this 25%would place a financial burden on the unincorporated residents that is not commensurate with their share of library services." Since the formation of the Poudre River Library District, the City has expressed the view that the same fee should be charged by all jurisdictions within the District's boundaries, and that the City would consider repealing its fee should that not be the case. City leaders have met with Library District Trustees and representatives about this issue on several occasions and have maintained an open dialogue., FINANCIAL IMPACT The library impact fee applies only to residential dwelling units and ranges from $292 to$682, depending on square footage. Annual collections have ranged from a low of.$61,000 in 2009 to$729,000 in 2001. The Library District has substantially more revenue from its own funding sources than it had as a City department. As of December 31,2009,the District had fund balances of approximately$7.1 million. However,various restrictions on that balance reduce the amount that is unrestricted to $4.2 million. Of the unrestricted balance, $2.3 million is assigned for operating capital needs and capital improvements. The 3 mill property tax approved by the voters provided for the improvement of services and the opening of the new library. It does not provide funding for the construction of new facilities. SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS The economic and social impacts of Ordinance No. 064, 2010 can be seen as positive or negative. From the perspective of home buyers and those in the housing industry, eliminating this fee will reduce the cost of a new residence. Library District leaders point out, however, that library capital needs still remain. It will be difficult to renovate existing facilities and provide new services and facilities as our community grows. These Ordinances have few, if any, direct environmental impacts. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. ATTACHMENTS 1. March 24, 2009 City Council Work Session Summary. ATTACHMENT 1 M-TS, POUDRE RIVER PUBLIC LIBRARY DISTRICT 201 Peterson Street Fort Collins, CO 80524 Date: March 25, 2009 To: Mayor and City Council Members Through: Darin Atteberry, City Manager � Ken Draves, Interim Library District Director From: Jeff Barnes, Library District Finance Officer Re: Work Session Summary— March 24, 2009 re: Update from Poudre River Public Library District, Including Current Funding, Strategic Planning, Facility Planning and Impact Fee Continuation. Attendees: City of Fort Collins—City Manager Darin Atteberry, Mayor Doug Hutchinson, Councilors Ben Manvel, Wade Troxell, Kelly Ohlson and David Roy Library District— Interim Director Ken Draves, Board President Mary Atchison, Board Vice-president Mike Liggett and Finance Officer Jeff Barnes General discussion included how technology is changing the role and function of libraries and how the District is addressing literacy issues for children. Council was specifically asked to provide feedback on the District draft of a Facilities Master Plan and to discuss and give direction on the continuation of the City's Impact Fee for library facilities now that Council Tree Library has been completed. Discussion on the Facilities Master Plan included the effect on library park, improving the pedestrian traffic flow from downtown by moving the entrance of the library to the west side and adding a plaza area between the library and the Carnegie Building, locations considered for the next library, the time frame of the facility plan and the working relationship with our consultant. District responses informed Council that the north side of Fort Collins (such as Mountain Vista area) was a likely location for the next library. The next library was anticipated in the 5-10 year time frame and it could be another 10 years after that before an — additional library might be added. The consultants have worked well with us and gained a good understanding of the uniqueness of the District's circumstances. Council reacted positively to the draft of the plan and no concerns were raised on the overall direction of our planning efforts. Discussion on the continuation of the impact fee centered around a fee also being put in place for development outside of Fort Collins. Council was willing to keep the City fee in existence but only if similar fee was added by other jurisdictions on their residential development. District response included agreement on the fairness of this opinion. Council was informed that District representatives had met with the County Manager and will be meeting on March 30`h with the County Commissioners on this topic. ORDINANCE NO. 064, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 7.5, ARTICLE II AND CHAPTER 8, ARTICLE III OF THE CODE OF THE CITY OF FORT COLLINS TO DISCONTINUE THE LIBRARY CAPITAL IMPROVEMENT EXPANSION FEE WHEREAS, on May 21, 1996, the City Council adopted Ordinance No. 051, 1996, amending the City Code to establish certain capital improvement expansion fees,including a library capital improvement expansion fee(the"Library Fee"),and to create accounts to receive the revenue from such fees; and WHEREAS, on November 7, 2006,the voters approved a citizen initiative to establish and fund the Fort Collins Regional Library District,now called the Poudre River Public Library District (the"Library District'),pursuant to Sections 24-90-101 to 606 of the Colorado Revised Statutes;and WHEREAS, on December 4, 2007, the City Council approved Ordinance No. 139, 2007, authorizing an Intergovernmental Agreement between the City,Larimer County("County")and the Library District (the "IGA"), which IGA was executed on December 18, 2007; and WHEREAS,since the formation of the Library District,City staff has indicated to the Library District that the City is not likely to continue imposing the Library Fee on new development within the City if the County is not willing to impose a similar fee on new development in unincorporated areas of the Library District; and WHEREAS, in the IGA the City agreed to continue collecting the Library Fee at least until the new Southeast Branch Library was completed and fully paid for by the City,with any remaining Library Fee proceeds going to the Library District on condition the funds be spent only on library capital improvements located within the City of Fort Collins; and WHEREAS,the City and,the Library District further agreed in the IGA that following final payment for the Southeast Branch Library by the City, the City Council would consider, after consultation with the District, whether to continue imposition of the Library Fee and remittance of Library Fee revenues to the District; and WHEREAS,in March,2009,the Southeast Branch library was completed and opened to the public and the City Council, in its March 24, 2009 Work Session, indicated that before deciding whether to continue the Library Fee, the City Council would like to know whether the County is willing to impose a similar fee on Library District residents who live in unincorporated areas of the County; and WHEREAS;in March, 2010, the County Commissioners declined to impose an impact fee to benefit the Library District; and WHEREAS, City staff is now recommending that the City Council discontinue the Library Fee by amending Section 7.5-16 of the City Code, repealing Section 7.5-27 of the City Code regarding the library capital improvement expansion fee,and repealing Section 8-94 of the City Code establishing the library capital improvement expansion account. NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 7.5-16 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-16. Intent. The provisions of this Article are intended to impose certain fees to be collected at the time of building permit issuance in an amount calculated as shown herein for the purpose of funding the provisions of additional capital improvements as the City's population increases. The imposition of said fees is intended to regulate the use and development of land by ensuring that new growth and development in the City bear a proportionate share of the costs of capital expenditures necessary to provide community park, library, police, fire and general government and transportation capital improvements. Said fees shall not be used to collect more than is necessary to fund such capital improvements.The fees provided for in this Article are based on the City's Capital Improvement Expansion Cost Study, dated May 21, 1996, as amended; the City's Street Oversizing Impact Fee Study, dated July 15, 1997, and Street Oversizing Impact Fee Study Update, dated November 28,2000,as amended; and The ITE Trip Generation Manual, 6th Edition, 1997, published by the Institute of Traffic Engineers, as amended, which establish a fair and equitable allocation of costs and recognize past and future payments for new development,as well as credits for construction,dedication of land or cash contributions. Funds collected from said fees shall not be used to remedy existing deficiencies,but only to provide new capital improvements which are necessitated by new development. The amount of revenue generated by said fees shall not exceed the cost of providing the capital improvements for which they are imposed,and the same shall be expended solely to provide the specified capital improvements. Section 2. That Section 7.5-27 of the Code of the City of Fort Collins is hereby deleted in its entirety: (a)Theie is hereby established a library capital irnpio verrient expansion f�e whi, shall be imposed purstrw7t to the provisions of this Article fo, the ptripose of ffinding capital inipiovements rel.1ted to the pio-vision of general library services, as Such Such fee shail be payable pio, to the issuance of any building permit for a residential -2- 700 sq. ft. and ander 2,201 sq. ft. mid over 68mA.O( in the me of daplexes mid intilti-family structures, the amotint of the fee fo, each dwelling unit shall be based upon the avetage size of the dwelling tmits contained within each such struet=c-. (b)All fees coliceted under this Section shall be deposited into a separatc account vvithin the capital improvement expwision ffind to be laTown as the 9ibimy capital . . nent expansion account."This accomit shall be an interest beaTing accotInt, and any intetest inconic eamed on the fees shaif be credited to the account. FmIds withdiami fiorn the librm-y capital implavement expansion account shail be used only f6i thc purposes specified in Subpazagiaph (a) of this Section and said expcnditares shail be subject to flie provisions of this Atticle. Section 3. That Section 8-94 of the Code of the City of Fort Collins is hereby deleted in is entirety: Sm 8-94. Lib.a.y capital improycincift expansion account. Thete is hereby created an accomit within the capital improvement expmlsion fund to account fo, the acquisition, construction and dcvelopnicnt of capitai nents related to thc provision of librm-y services, as desci ibed in dir capital nents p1mi for library services. Reventies shall include ail fees coilected put stiant to Subsection 7.5-27(a).Expead.tures shall be made solely for the purposes described in Subsection 7.5-27(b) and aMording to all othe, applicabi of E-hapte, 7.5. 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 -3- Passed and adopted on final reading on the 15th day of June, A.D. 2010. Mayor ATTEST: City Clerk -4- t ORDINANCE NO. 065, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS REPEALING CHAPTER 23, ARTICLE VII OF THE CODE OF THE CITY OF FORT COLLINS REGARDING THE CARE AND CUSTODY OF THE LIBRARY WHEREAS, on November 7, 2006, the voters approved a citizen initiative to establish and fund the Fort Collins Regional Library District, now called the Poudre River Public Library District (the "Library District"), pursuant to Sections 24-90-101 to 606 of the Colorado Revised Statutes; and WHEREAS, on December 4, 2007, the City Council approved Ordinance No. 139, 2007, authorizing an Intergovernmental Agreement between the City, Larimer County and the Library District (the "IGA"), which IGA was executed on December 18, 2007; and WHEREAS, pursuant to the IGA, the City transferred the assets, liabilities, management and operation of the Fort Collins Public Library (the "Library") to the Library District; and WHEREAS, Article VII of Chapter 23 of the City Code governs the Library, and Section 23-171 states that the City has the supervision, care and custody of the Library; and WHEREAS, City staff is recommending that Chapter 23, Article VII be repealed because the Library District now has the supervision, care and custody of the Library instead of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Article VII of Chapter 23 of the Code of the City of Fort Collins is hereby deleted in its entirety: ARTWEE Vif. LIBRARY The eity shall have the immediate supervision, eare mid etistody of tile Fort 6olfins pubfic fibiay, which shall bc fiee fo, the use of the residents of tile eity subject to reasonable rules and regulations adopted purstlant to § 23-t46. Introduced, considered favorably on first reading, and ordered published this 1st 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