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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/02/2003 - ITEMS RELATING TO APPROPRIATING PRIOR YEAR RESERVE AGENDA ITEM SUMMARY ITEM NUMBER: 10A-B FORT COLLINS CITY COUNCIL DATE: September 2, 2003FROM: Krcmarik/Steiner SUBJECT: Items Relating to Appropriating Prior Year Reserves in the Downtown Development Authority Operations and Maintenance Fund. RECOMMENDATION: Staff recommends adoption of the Ordinances on Second Reading. EXECUTIVE SUMMARY: A. Second Reading of Ordinance No. 108, 2003, Appropriating Funds from City of Fort Collins, Colorado, Downtown Development Authority Debt Service Fund for the Payment of Downtown Development Authority Taxable Subordinate Tax Increment 410 Revenue Bonds. Ordinance No. 108, 2003, which was unanimously adopted on First Reading on August 19, 2003, appropriates $1 million to pay the bonds the City anticipates issuing later this year. B. Second Reading of Ordinance No. 109, 2003, Appropriating Funds from the Downtown Development Authority Operations and Maintenance Fund for the Purpose of Making Certain Capital Improvements in the Downtown Area of Fort Collins and Appropriating Prior Year Reserves Designated for Capital Improvements. Ordinance No. 109, 2003, which was unanimously adopted on First Reading on August 19, 2003, appropriates the $1 million of anticipated bond proceeds and another $850,000 from the DDA Operations and Maintenance Fund prior year reserves for capital improvements. These Ordinances have been modified slightly to clarify that bond proceeds will be used to pay for the capital improvements, while debt service funds will be used to pay the bonds. ORDINANCE NO. 108, 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING FUNDS FROM CITY OF FORT COLLINS, COLORADO, DOWNTOWN DEVELOPMENT AUTHORITY DEBT SERVICE FUND FOR OPERA-T-reNS A➢ D M ..rEN w ieE FUND FOR O Tf 1E rURPE)S . O v a.—cam i ter THE PAYMENT OF DOWNTOWN DEVELOPMENT AUTHORITY TAXABLE SUBORDINATE TAX INCREMENT REVENUE BONDS WHEREAS, on April 21, 1981, the City of Fort Collins, Colorado, adopted Ordinance No. 46, 1981, establishing the Fort Collins, Colorado,Downtown Development Authority; and WHEREAS, the Downtown Development Authority's Plan of Development was approved by the City on September 8, 1981 which established the purpose of the Authority and the types of projects in which the Authority would participate; and WHEREAS, on June 1, 1982, a special election was held pursuant to Section 31-25- 807(b) of the Colorado Revised Statutes approving the issuance by the City of up to $25,000,000 in tax increment obligations to finance certain projects of the Downtown Development Authority; and WHEREAS, there is sufficient remaining bonding authorization available to fund additional projects in the downtown area, and there is sufficient tax increment revenue available in 2003 to pay the debt service on the anticipated bonds issued; and WHEREAS, the City anticipates authorizing the issuance of Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 2003, ("Bonds") in the aggregate principal amount of $1,000,000 later this year; and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins (the "Charter") permits the City Council to make supplemental appropriations, in conjunction with all previous appropriations for that 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, Article V, Section 9, of the Charter permits the 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. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that, contingent upon the issuance and sale of the ,Bonds, there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund and Maintenanm the sum of ONE MILLION DOLLARS ($1,000,000) to be used for the ayment of the Bonds. Introduced and considered favorably on first reading and ordered published this 19th day of August, A.D. 2003, and to be presented for final passage on the 2nd day of September, A.D. 2003. Mayor ATTEST: City Clerk Passed and adopted on final reading this 2nd day of September, A.D. 2003. Mayor ATTEST: City Clerk • ORDINANCE NO. 109, 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING FUNDS FROM THE DOWNTOWN DEVELOPMENT AUTHORITY OPERATIONS AND MAINTENANCE FUND FOR THE PURPOSE OF MAKING CERTAIN CAPITAL IMPROVEMENTS IN THE DOWNTOWN AREA OF FORT COLLINS AND APPROPRIATING PRIOR YEAR RESERVES DESIGNATED FOR CAPITAL IMPROVEMENTS WHEREAS, on April 21, 1981, the City of Fort Collins, Colorado, adopted Ordinance No. 46, 1981, establishing the Fort Collins, Colorado,Downtown Development Authority; and WHEREAS, the Downtown Development Authority's Plan of Development was approved by the City on September 8, 1981 which established the purpose of the Authority and the types of projects in which the Authority would participate; and WHEREAS, on June 1, 1982, a special election was held pursuant to Section 31-25- 807(b) of the Colorado Revised Statutes approving the issuance by the City of up to $25,000,000 in tax increment obligations to finance certain projects of the Downtown Development Authority; and WHEREAS, aftf= d3tC, Of SIC 60U.16i Of the eity of Fort eollins hns approved tire transfer of $1,000, from the Du"ntown Demiopment Atithofity Debt Se,vice Fand to the Downtown Demiopment the City anticipates authorizing the issuance of Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 2003 ("Bonds") in the aggregate principal amount of$1,000,000 later this year; and WHEREAS, the appropriation of the funds thereof, are necessary to complete the construction of certain improvements in the downtown area of the City; and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins (the "Charter") permits the City Council to make supplemental appropriations, in conjunction with all previous appropriations for that 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, Article V, Section 9, of the Charter permits the 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, it is the desire of the Council to appropriate the sum of$850,000 from prior year reserves designated for certain improvements in the downtown area of the City in the Downtown Development Authority Operations and Maintenance Fund. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That, contingent upon the issuance and sale of the Bonds, there is hereby appropriated for expenditure from bond proceeds in the Downtown Development Authority Operating Fund the sum of ONE MILLION DOLLARS ($1,000,000), to be used for capital improvements in the downtown area. Section 2. That there is hereby appropriated for expenditure funds in the sum of EIGHT HUNDRED FIFTY THOUSAND DOLLARS ($850,000), from prior year reserves in the Downtown Development Authority Operations and Maintenance Fund, to be used for capital improvements in the downtown area. Introduced and considered favorably on first reading and ordered published this 19th day of August, A.D. 2003, and to be presented for final passage on the 2nd day of September, A.D. 2003. Mayor ATTEST: City Clerk Passed and adopted on final reading this 2nd day of September, A.D. 2003. Mayor ATTEST: City Clerk AGENDA ITEM SUMMARY ITEM NUMBER: 17 A-B FORT COLLINS CITY COUNCIL DATE: August 19, 2003STAFF• Krcmarik/Steiner SUBJECT: Items Relating to Appropriating Prior Year Reserves in the Downtown Development Authority Operations and Maintenance Fund. RECOMMENDATION: Staff recommends adoption off"the Ordii ces Pst adin FINANCIAL IMPACT: The Downtown Development Authority (DDA) has made financial commitments to various projects, programs, and studies; the amount of the commitments total $1.85 million. Ordinance No. 108, 2003, appropriates 11- Ilio o bo ocVs tcy-be transferred to the DDA Operations and Maintenance Fund. inanc 1 ZO 3,Jappropriates the $1 million of transferred money from the bind issu and t 850,0 from the DDA Operations and Maintenance Fund prior year re eQ(,ee. EXECUTIVE SUMMARY: A. First Reading of Ordinance No. 108, 2003, Appropriating Funds from City of Fort Collins, Colorado, Downtown Develo ment Authorit Debt Service Fund for Transfer to the Downtown Deve pmen tho pe io a Maintenance Fund for the Purpose of Making C ain Cap 1 Imp vtin t owntown Area of Fort Collins. B. First Reading of Ordinance No. 9, , Appropriating the Transfer from the Downtown Development Authority Debt Service Fund for Projects in the Downtown Development Authority Operations and Maintenance Fund, for the Purpose of Making Certain Capital Improvements in the Downtown Area of Fort Collins and Appropriating Prior Year Reserves Designated for Capital Improvements The purpose of the Downtown Development Authority (DDA) is economic improvement of the downtown area. Funding for the projects comes from tax increment revenue and an operating mill levy. Over the past few years, the DDA has completed three debt issuances to access monies generated from tax increment. In 1999, the total bond issue was $750,000, in 2000 it was $608,000, and in 2002, it was $1,065,000. DATE: ITEM NUMBER: The DDA has unspent monies from each of these bond issues, $87,400 from the 1999 deal, $201,427 from 2000, and$ 819,897 from the 2002 issue which was completed in late December. At the end of 2002, unencumbered funds lapsed into the fund balance and need to be appropriated in 2003. The DDA also plans a debt issue of $1,000,000 in 2003 to assist in the financing of projects that it has made commitments to. The total amount of appropriations in the DDA Operations &Maintenance Fund is $1,850,000. BACKGROUND: On behalf of the Downtown Development Authority, the City of Fort Collins has completed three recent bond issues to provide f nd' g-f DQ4k-partiqlpatiqjrm redevelopment and capital improvements in the downtov area ce t 0VB� es completed, some projects were not completed or were not as �co,,stly as t es aelo staff has provided a listing of the funds available and the projectMorwbic mind u . 1999 Unused Bond Proceeds (Total =$87,400) $ 10,000 Linden Street 13,039 Repayment to the City of Fort Collins 64,361 Baptist Church 2000 Unused Bond Proceeds (ota �W 2 7) $147,863 th 240 0 thang Hotel 13,791 estounn 39,773 Walnut Street 2002 Unused Bond Proceeds (Total =$819,897) $50,000 231 North College (34,348) Savings from the Chamber of Commerce Project 17,652 Mulberry-Lemay 251,000 Mason Street North 12,000 O 0In u P a aria 25,000 rt Co - Mus250,000 -ndent et PI ( w to be us d for e ng Center 85,250 Mulberry Lemay Intersection 67,093 Linden Street Improvements Loan repayment 6,250 Downtown Strategic Plan 90,000 300 East Mountain Prepayments of obligations to the City of Fort Collins (Total =$489,500) 290,750 Mulberry Lemay Intersection 45,000 River Design 175,000 Downtown Strategic Plan DATE: AugustITEM NUMBER: Current Year Commitments (Total = $133,000) $133,000 First National Bank $1.731.224 Total Uses 118,776 Remaining Balance for other projects. If adopted, these Ordinances would: Appropriate $1,000, from h Dow r o De elo Authority Debt Service Fund for Transfer to the Do ghtown D elopren uthority 2perations & Maintenance Fund; • Appropriate the $1,000,000wtran er from-t a Debt Service Fund for projects in 2003 in the DDA Operations &Maintenance fund; and Appropriate $850,000 of prior year reserves in the DDA Operations & Maintenance Fund for participation in projects. SUMMARY Staff recommends adoption of the Ordinances. This series of appropriations will allow the DDA to meet its commitments to th arious 4oec,,,,s' that the oard has favorably reviewed and maintain a balanced budget. I so a to sl tVD on to a series of future payments to the City (for the Mulberryma ento Strategic Plan and the River beautification project) into on um surryp�men add�ng�$489,500 to the City's budget in 2003. The actual bond issue will take place later this year. The DDA and staff expect that similar bond issues will occur in 2004 and 2005.