HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/15/2003 - SECOND READING OF ORDINANCE NO. 050, 2003, APPROPR 77 k x ,
AGENDA ITEM SUMMARY ITEM NUMBER: 10
DATE: April 15, 2003
FORT COLLINS CITY COUNCIL FROM: Alan Krcmarik/
Jerry P. Brown
SUBJECT:
Second 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 Second 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. 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 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, which was unanimously
adopted on First Reading on April 1, 2003, appropriates the remaining interest eamings to close-
out the funding.
AGENDA ITEM SUMMARY ITEM NUMBER: 14
DATE: April 1, 2003
FORT COLLINS CITY COUNCIL Alan P. Brown
FROM: Jerry P. Brownn
SUBJECT:
First Reading of Ordinance No. 050, 2003, Appropriating Unanticipated Revenue in the Golf Fund
for the Purpose of Funding Capital Improvements.
RECOMMENDATION: Ar
Staff recommends adoption of k Ordinkjonrs ng.
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 c mst esTe
d e control of the City, several of the
improvements were delayed. t urin de oc ds� rom the two transactions were
invested at competitive intere rates. a to earn greater amounts of interest than
originally anticipated. In Septe ber, 20 Co ssed an - dinance appropriating $165,000, a
portion of the extra interest a d-to co pl a ral addi nal 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.
ACKGROUND:
In 1999 the City executed Lease Certificates of Participation (COP'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 $ i jefiffful% pr eeds from the transactions were
invested prior to expenditure f the v c e t ays in construction, the proceeds
from the two financial transac s earne a y more i rest than originally anticipated. In
September, 2002, an Ordinanc ppr6pon of 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.