HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/01/2003 - FIRST READING OF ORDINANCE NO. 050, 2003, APPROPRI 14
AGENDA ITEM SUMMARY ITEM NUMBER:
DATE: April 1, 2003
FORT COLLINS CITY COUNCIL Alan Krcmarik/
FROM: Jerry P. Brown
SUBJEFI T
First Reading of Ordinance No. 050, 2003, Appropriating Unanticipated Revenue in the Golf Fund
for the Purpose of Funding Capital Improvements.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
EXECUTIVE SUMMARY:
In 1999 and 2001 the City executed lease transactions to provide funding for capital improvements
at the City's three golf courses. The total amount of the transactions allocated to the Golf Fund was
$5,085,000. Due to unexpected circumstances beyond the control of the City, several of the
improvements were delayed. During the delay, the proceeds from the two transactions were
invested at competitive interest rates. The investments earned greater amounts of interest than
410 originally anticipated. In September, 2002, Council passed an Ordinance appropriating $165,000, a
portion of the extra interest earned to complete several additional capital improvements at golf
Courses. This ordinance requests the appropriation of the remaining interest earnings, in the
amount of$27,072.63, in order to close-out the funding.
BACKGROUND:
In 1999 the City executed Lease Certificates of Participation (OOP's) to provide $2,255,000 of
funding for improvements at the three City Golf Courses, including the $1.3 million Collindale
Irrigation System Replacement Project. In 2001 the City completed an Assignment of Lease
Payments (ALP's) transaction to provide an additional $2,830,000 for the Golf Division to use on
other capital projects, primarily the Collindale Clubhouse. The proceeds from the transactions were
invested prior to expenditure for the various projects. Due to delays in construction, the proceeds
from the two financial transactions earned considerably more interest than originally anticipated. In
September, 2002, an Ordinance appropriated a portion of the interest earnings, $165,000, for
additional capital projects, such as protective netting, and irrigation system improvements at all
three courses. This ordinance appropriates the remaining earned interest, $27,072.63, to complete
the paving of the SouthRidge Golf Course parking lot. The original list of all of the proposed
improvements made by the Golf Division was reviewed and approved by the Golf Advisory Board.
The payments on the financial transactions are all paid from revenues from the golf courses.
• ORDINANCE NO. 050, 2003
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE GOLF FUND
FOR THE PURPOSE OF FUNDING CAPITAL IMPROVEMENTS
WHEREAS, in Ordinance No. 147, 1999, Council approved the execution of Lease
Certificates of Participation ("COPs") in the Golf Fund to provide $2,255,000 of funding for
improvements at the golf courses; and
WHEREAS, in Ordinance No. 141, 2001, Council approved the execution of Assignment
of Lease Payments ("ALPs") in the Golf Fund in the amount of$2,830,000 to provide additional
monies for the Golf Division to use on capital projects; and
WHEREAS,the proceeds from the aforementioned transactions have been invested until they
were needed to be used for the projects; and
WHEREAS,due to delays in construction of some projects,proceeds from the two financial
transactions have earned $192,073 more in additional interest earnings than was originally
anticipated; and
WHEREAS, in Ordinance No. 120, 2002, Council approved the appropriation of$165,000
of these additional interest earnings to allow the Golf Division to complete other capital
improvements at the three City Golf Courses; and
WHEREAS, appropriating the additional unanticipated revenue in the amount of$27,073
from the remaining interest earnings will allow the Golf Division to complete other capital
improvements such as paving the Southridge Golf Course parking lot, and will allow the Golf
Division to close-out the remaining available funding; and
WHEREAS, the original list of capital improvements that have been or will be done by the
Golf Division has been reviewed by the Golf Board; and
WHEREAS,Article V, Section 9,of the Charter of the City of Fort Collins 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 then current estimate of actual and anticipated
revenues to be received during the fiscal year; and
WHEREAS,City staff has determined that the appropriation of additional interest earnings,
as described herein, will not cause the total amount appropriated in the Golf Fund to exceed the
current estimate of actual and anticipated revenues to be received during the fiscal year; and
WHEREAS,it is the desire of the Council to appropriate$27,073 of unanticipated revenue,
in the form of interest earnings,in the Golf Fund for the purpose of funding capital improvements
at the City's golf courses.
NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that there is hereby appropriated for expenditure from unanticipated revenue in the Golf
Fund the sum of TWENTY-SEVEN THOUSAND SEVENTY-THREE DOLLARS ($27,073) for
the purpose of funding capital improvements at the City's golf courses.
Introduced,considered favorably on first reading,and ordered published this 1st day of April,
A.D. 2003, and presented for final passage on the 15th day of April A.D. 2003.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 15th day of April A.D. 2003.
Mayor
ATTEST:
City Clerk