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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/15/2012 - FIRST READING OF ORDINANCE NO. 043, 2012, APPROPRIREVISED DATE: May 15, 2012 STAFF: Bev Gast Kelly DiMartino AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 13 SUBJECT First Reading of Ordinance No. 043, 2012, Appropriating Prior Year Reserves and Unanticipated Revenue in the General Fund for Cultural Development and Programming Activities and the Fort Collins Convention and Visitors Bureau. EXECUTIVE SUMMARY This Ordinance appropriates $43,319 for 2012 Cultural Development and Programming (CDP1) activities and $145,407 for the Convention and Visitors Bureau (CVB) from unanticipated revenues and unspent appropriations in the General Fund Lodging Tax Reserves. Approximately $908,908 in Lodging Tax revenue was collected in 2011 that was distributed to the CDP (25%), CVB (70%) and Visitor Events (CDP2)(5%). After 2011 expenditures and miscellaneous revenue, there is unanticipated revenue and unspent appropriations of $43,319 for CDP and $145,407 for CVB available for activities in 2012. BACKGROUND / DISCUSSION Section 25-244 of the City Code requires that 75% of the total lodging tax receipts are to be used for the promotion of convention and visitor activities and 25% for cultural development and programming activities. Actual revenue collected is appropriated based on this allocation formula and any excess revenue as well as budget savings are reserved by these activities in the General Fund balance. FINANCIAL / ECONOMIC IMPACTS Visitor Events CDP1 CDP2 CVB General Fund Reserve Balance (12/31/10) $ 70,347 $ 3,787 $ 78,480 2011 Lodging Tax Allocation $ 227,227 $ 45,445 $ 636,236 2011 Expenditures & Misc. Revenue -$ 254,255 -$ 49,232 -$ 569,309 General Fund Reserve Balance (12/31/11) $ 43,319 $ 0 $ 145,407 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION The City’s Cultural Resources Board reviews applications for these funds and makes recommendations to the City Council. This fund support events that provide a public benefit to the Fort Collins community, and promotes the utilization of public accommodations within the City. ORDINANCE NO. 043, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES AND UNANTICIPATED REVENUE IN THE GENERAL FUND FOR CULTURAL DEVELOPMENT AND PROGRAMMING ACTIVITIES AND THE FORT COLLINS CONVENTION AND VISITORS BUREAU WHEREAS, Section 25-244 of the City Code requires that lodging tax revenue is to be allocated as follows: 75% for the promotion of convention and visitor activities and 25% for cultural development and programming activities; and WHEREAS, at the end of 2011, a total of $908,908 in Lodging Tax revenues were collected and lapsed into the General Fund Reserves for lodging taxes; and WHEREAS, the Lodging Tax funds were distributed in the following amounts to the following accounts: • Cultural Development and Programming (CDP1) $ 227,227 • Visitor Events (CDP2) $ 45,445 • Convention and Visitors Bureau (CVB) $ 636,236 WHEREAS, the Cultural Development and Programming (CDP1) Account had prior year funds and unanticipated revenue in the amount of $43,319 that were not expended in 2011; and WHEREAS, the Convention and Visitors Bureau (CVB) Account had prior year funds and unanticipated revenue in the amount of $145,407 that were not expended in 2011; and WHEREAS, Article V, Section 9 of the City Charter permits the City 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, Article V, Section 9 of the City Charter permits the City Council to make supplemental appropriation 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 current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, City staff has determined that the appropriation of the revenue as described herein will not cause the total amount appropriated in the General Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year; and WHEREAS, the City wishes to appropriate all funds allocated for Cultural Development and Programming and the Fort Collins Convention and Visitors Bureau. 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 prior year reserves in the General Fund the total sum of FORTY THREE THOUSAND THREE HUNDRED NINETEEN DOLLARS ($43,319) for Cultural Development and Programming activities. Section 2. That there is hereby appropriated for expenditure from prior year reserves in the General Fund the total sum of ONE HUNDRED FORTY FIVE THOUSAND FOUR HUNDRED SEVEN DOLLARS ($145,407) for the Fort Collins Conventions and Visitors Bureau. Introduced, considered favorably on first reading, and ordered published this 15th day of May, A.D. 2012, and to be presented for final passage on the 5th day of June, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ Interim City Clerk Passed and adopted on final reading on the 5th day of June, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ Interim City Clerk