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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/16/2010 - ITEMS RELATING TO THE 2011 DOWNTOWN DEVELOPMENT AU DATE: November 16, 2010 STAFF: Matt Robenalt _ Kathy Cardona Items Relating to the 2011 Downtown Development Authority Budget. A. Second Reading of Ordinance No. 106, 2010, Relating to the Downtown Development Authority Annual Appropriations for the Fiscal Year 2011 and Fixing the Mill Levy for Fiscal Year 2011. B. Second Reading of Ordinance No. 107,2010,Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service Obligations for the Year 2010. EXECUTIVE SUMMARY Ordinance No. 106, 2010, adopts the 2011 Budget, sets the amount of$826,758 to be appropriated for fiscal year 2011 for the administrative operations budget, sets the amount of $5,950,214 for debt service payments to be appropriated for fiscal year 2011 and sets the 2011 mill levy for the Fort Collins Downtown Development Authority at five mills,unchanged since 2002. Ordinance No. 107,2010,appropriates 2010 debt service obligations for the amount due of$1,562,232. Both Ordinances were unanimously adopted on First Reading on November 2, 2010. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- November 2, 2010 (w/o attachments) ATTACHMENT 1 DATE: November 2, 2010 STAFF: Matt Robenalt _ Kathy Cardona Items Relating to the 2011 Downtown Development Authority Budget. A. First Reading of Ordinance No. 106, 2010, Relating to the Downtown Development Authority Annual Appropriations for the Fiscal Year 2011 and Fixing the Mill Levy for Fiscal Year 2011. B. First Reading of Ordinance No.'>107>2010;:Appropriating.Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt�Service ObPisfo`nthYear 2010. , EXECUTIVE SUMMARY Ordinance No. 106, 2010, adopts the 2011 Budget, sets the amount of$826,758 to be appropriated for fiscal year 2011 for the administrative operations budget, sets the amount of $5,950,214 for debt service payments to be appropriated for fiscal year 2011 and sets the 2011 mill levy for the Fort Collins, Downtown Development Authority at five mills, unchanged since 2002. Ordinance No. 107, 2010, appropriates 2010 debt service obligations for the amount due of$1,562,232. BACKGROUND / DISCUSSION The Downtown Development Authority(the"DDA")was created in 1981 with the purpose, according to State statute, of planning and implementing projects and programs within the boundaries of the DDA. By State statute,the purpose of the ad valorem tax levied on all real and personal property in the downtown development district, not to exceed 5 mills, shall be for the budgeted operations of the authority. The DDA and the City adopted a Plan of Development that specifies the projects and programs the DDA will undertake. In order to carry out the purposes of the State statute and the Plan of Development the City, on behalf of the DDA, has issued various tax increment bonds, which require debt servicing. FINANCIAL/ ECONOMIC IMPACTS The Downtown Development Authority is requesting approval of the DDA\Operations and Maintenance budget, for fiscal year 2011, in the amount of$826,758. ,It is also req'uesting`approvalrof the DDA debt payment commitments in the amount of$5,950,214 for 2011Nob1�igations any $1%562 232 for 2010 obligations. Uses: Personnel Services $422,938 Contractual Professional Services 355,920 Purchased-Supplies and Commodities 27,735 Other 20,165 Total $826,758 The DDA debt service fund is projected to-have sufficient revenue-to meetall quired debt service payments for 2010 and 2011. Uses: P y Debt Payment: 2011 $5,950,214 Debt Payment: 2010 $1,562,232 November 2, 2010 -2- ITEM 6 I STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BOARD / COMMISSION RECOMMENDATION At its September 9, 2010, meeting, the Downtown Development Authority Board of Directors adopted its proposed budget for 2011 totaling$6,776,972 and determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA. 0 P y ATTACHMENTS (C; 1. Fort Collins Downtown Development Authority Board Resolution 2010-06 Recommending to Council the Determining and Fixing of the Mill Levy of the DDA for the Fiscal Year Ending December 31, 2011 2. Fort Collins Downtown Development Authority Board Resolution 2010-07 Recommending to Council the Budget of the Estimated Amounts Required to Pay the Expenses of Conducting the Business of the DDA for the Fiscal Year Ending December 31, 2011 3. Fort Collins Downtown Development Authority Board Resolution 2010-08 Recommending to Council the Appropriation of$1,562,232 from the DDA Debt Service Fund for Payment of Debt Service for the Fiscal Year Ending December 31, 2010 4. Fort Collins Downtown Development Authority,.Board=Resolution 2WO-09 Recommending to Council the i. i . 1•\ A Appropriation of$5,667,444 and$282',77,0 from the DDA Debt IA for Payment of Debt Service and the DDA's Obligation for the 'Civic P�g Structure for the,Fiscal year Ending December 31, 2011 � :�`C p y COPY ORDINANCE NO. 106, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS RELATING TO THE DOWNTOWN DEVELOPMENT AUTHORITY ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2011 AND FIXING THE MILL LEVY FOR FISCAL YEAR 2011 WHEREAS,the Fort Collins Downtown Development Authority(the"DDA")has been duly organized in accordance with Section 31-25-804, C.R.S.; and WHEREAS, on September 9, 2010, DDA Board of Directors (the "DDA Board"), acting under the provisions of Section 31-25-816, C.R.S., adopted a budget for the fiscal year beginning January 1,2011 and determined the mill levy necessary to provide for payment during fiscal year 2011 of all properly authorized expenditures to be incurred by the DDA; and WHEREAS, it is the desire of the City Council to appropriate the sum of SIX MLLION, SEVEN HUNDRED SEVENTY SIX THOUSAND, NINE HUNDRED SEVENTY TWO DOLLARS ($6,776,972) in the DDA Operation and Maintenance Fund and the Debt Service Fund for the fiscal year beginning January 1, 2011 and ending December 31, 2011,to be used as follows: DDA Operations & Maintenance $ 826,758 DDA Debt Service Fund 5,950,214 $6,776,972 and WHEREAS, the DDA Board has recommended to the City Council a mill levy of 5.0 mills upon each dollar of assessed valuation of all taxable property within the DDA District, such levy representing the amount of taxes for DDA purposes necessary to provide for payment during the ensuing fiscal year for all property authorized expenditures to be incurred by the DDA; and WHEREAS, Section 39-5-128(1),C.R.S.,requires certification of any tax levy to the Board of County Commissioners no later than December 15, 2010. . 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 the Downtown Development Authority Operations and Maintenance Fund the sum of EIGHT HUNDRED TWENTY SIX THOUSAND, SEVEN HUNDRED AND FIFTY EIGHT DOLLARS ($826,758), to be expended for the authorized purposes of the DDA. Section 2. That there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of FIVE MILLION,NINE HUNDRED FIFTY THOUSAND,TWO HUNDRED AND FOURTEEN DOLLARS($5,950,214),for payment of debt service on previously issued and outstanding bonds and to be used to cover the DDA's one-third share of payment on the Civic Center Parking Structure. Section 3. That the 2011 mill levy rate for the taxation upon each dollar of the assessed valuation of all taxable property within the DDA District as of December 31, 2010 shall be five (5) mills, which levy represents the amount of taxes for the District purposes to provide for payment during the aforementioned fiscal year of all properly authorized expenditures to be incurred by the DDA. Said mill levy shall be certified to the County Assessor and the Board of County Commissioners of Latimer County, Colorado, by the City Clerk as provided by law. Introduced, considered favorably on first reading, and ordered published this 2nd day of November, A.D. 2010, and to be presented for final passage on the 16th day of November, A.D. 2010. 1 Mayor ATTEST: City Clerk Passed and adopted on final reading on thel6th day of November, A.D. 2010. Mayor ATTEST: Chief Deputy City Clerk ORDINANCE NO. 107, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING REVENUE IN THE DOWNTOWN DEVELOPMENT AUTHORITY DEBT SERVICE FUND FOR PAYMENT OF DEBT SERVICE FOR THE YEAR 2010 WHEREAS, the Downtown Development Authority(the"DDA") is a body corporate duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Downtown Development Authorities Act of the State of Colorado, Section 31-25- 801, C.R.S. et seq. (the "Act"), and the powers of the DDA Board of Directors include the power to borrow money and to finance public improvements within the boundaries of the DDA; and WHEREAS, the City Council, in Ordinance No. 088, 2004, authorized the issuance of $6,235,000 of Taxable Subordinate Tax Increment Revenue Bonds, Series 2004A, dated June 1, 2004; and WHEREAS, the City Council, in Ordinance No. 147, 2008, authorized the issuance of $10,488,000 of Taxable Subordinate Tax Increment Revenue Bonds,Series 2008A,dated December 16, 2008; and WHEREAS,the DDA's payment for principal debt service requirements on the 2004A bonds will be $1,345,000 in 2010 instead of the payment in 2011; and WHEREAS, the DDA's payment for interest and financial advisory fees debt service requirements on the 2008A will be $217,232 in 2010; and. WHEREAS,pursuant to Section 31-25-816,C.R.S.,the appropriation of DDA debt service is subject to approval by the City Council. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of ONE MILLION FIVE HUNDRED SIXTY TWO THOUSAND, TWO HUNDRED AND THIRTY TWO DOLLARS ($1,562,232) for payment of debt service on the 2004A and 2008A Taxable Subordinate Tax Increment Revenue Bonds. Introduced, considered favorably on first reading, and ordered published this 2nd day of November, A.D. 2010, and to be presented for final passage on th th day of November, A.D. 2010. Mayo ATTEST: 'L City Clerk Passed and adopted on final reading on the 16th day of November, A.D. 2010. Mayor ATTEST: Chief Deputy City Clerk