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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/17/2002 - SECOND READING OF ORDINANCE NO. 120, 2002, APPROPR i AGENDA ITEM SUMMARY ITEM NUMBER: 8 DATE: September 17, 2002 FORT COLLINS CITY COUNCIL FROM: Alan Krcmarik/ • Jerry P. Brown SUBJECT : Second Reading of Ordinance No. 120, 2002, Appropriating Unanticipated Revenue in the Golf Fund for the Purpose of Funding Capital Improvements. i RECOMMENDATION: Staff recommends adoption of the Ordinance on Second Reading. i 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 to fund several high priority improvements such as the $2.65 million Collindale Clubhouse replacement project. Due to unexpected circumstances beyond the control of the City, several of the improvements were delayed. Proceeds from the two transactions were invested at competitive interest rates. When the projects were delayed, the investments earned greater amounts of interest than originally anticipated. This Ordinance, which was unanimously adopted on First Reading on September 3, 2002, appropriates these extra interest earnings to allow the Golf Division to complete additional capital improvements at j Collindale, SouthRidge, and City Park Nine Golf Courses. i i I i i AGENDA ITEM SUMMARY ITEM NUMBER: 13 DATE: September 3, 2002 FORT COLLINS CITY COUNCIL FROM: Alan Krcmarik/ Jerry P. Brown SUBJECT: First Reading of Ordinance No. 120, 2002, Appropriating Unanticipated Revenue in the Golf i Fund for the Purpose of Funding Capital Improvements. RECOMMENDATION: Staff recommends adoption o e Ordi oceo ptReadinig EXECUTIVE SUMMARY: In 1999 and 2001 the City executed lease transactions to provide funding for capital improvements at the City's three golf co sueUp T ountof the transactions allocated to the Golf Fund was $5,085,OQIto funor i provements such as the $2.65 million Collindale Clubhouse' placem' o un pected circumstances beyond the control of the City, several ire yed. Proceeds from the two transactions were invested at competitive interest rates. When the projects were delayed, the investments earned greater amounts of interest than originally anticipated. This Ordinance appropriates these extra interest earnings to allow the Golf Division to complete additional capital improvements at Collindale, SouthRidge, and City Park Nine Golf Courses. All of the financial transactions will be completed within the Golf Fund, an enterprise category fund. In 1999, the City executed a Lease Certificates of Participation ("COPs") transaction to provide $2,255,000 of funding for improvements at the olf courses. In 2001, the City completed an Assignment of Lease PaymenCfor s" tran ti t y additional $2,830,000 for the Golf Division to use on capitt The rnsactions have been invested until they are needed to be use oje a to construction of some projects and a seller unwilling to complete a land sa a it t e Citceeds from the two financial transactions have earned considerably more interest than originally anticipated. This Ordinance appropriates the additional interest earnings, $165,000, to allow the Golf Division to complete i some other capital projects, for example, a field restroom at SouthRidge, protective netting at Collindale and SouthRidge, maintenance building improvements at City Park Nine and irrigation improvements at all three golf courses. The list of improvements have been reviewed by the Golf Board. The payments on the financial transactions are paid from the revenues from the golf courses.