HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/02/2002 - SECOND READING OF ORDINANCE NO. 048, 2002, APPROPR AGENDA ITEM SUMMARY ITEM NUMBER: 12
DATE: April 2, 2002
FORT COLLINS CITY COUNCIL FROM: Alan Krcmarik
SUBJECT:
Second Reading of Ordinance No. 048, 2002, Appropriating Unanticipated Revenue in the
General Fund to be Returned to the Fort Collins Housing Authority to Fund Affordable Housing
Related Activities.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on Second Reading.
EXECUTIVE SUMMARY:
The Fort Collins Housing Authority (the "Authority") made a payment to the City from its 2001
budget for the sum of $13,334 as a "Payment in Lieu of Taxes" ("PILOT") for public services
and facilities. The Authority annually requests that the City refund the money "...to again fund
sorely needed affordable housing related activities, to attend the low-income housing needs of
Fort Collins residents." This Ordinance, which was unanimously adopted on First Reading on
March 19, 2002, returns the funds to the Housing Authority to be used for affordable housing-
related activities.
AGENDA ITEM SUMMARY ITEM NUMBER: 11
FORT COLLINS CITY COUNCIL DATE: March 19, 2002
STAFF: Alan Krcmarik
SUBJECT:
First Reading of Ordinance No. 048, 2002, Appropriating Unanticipated Revenue in the General
Fund to be Returned to the Fort Collins Housing Authority to Fund Affordable Housing Related
Activities.
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RECOMMENDATION:
Staff recommends adoption o e Ordi ce o i t Readin
FINANCIAL IMPACT:
The City received unanticipated revenue from the Fort Collins Housing Authority in the amount
of $13,334 as a 2002 payment lic 'ce S. he revenue was placed in the
General Fund. This Or
will m thl& t using Authority to be used for
affordable housing-related ac ities.
EXECUTIVE SUMMARY:
The Fort Collins Housing Authority (the "Authority") made a payment to the City from its 2001
budget for the sum of $13,334 as a "Payment in Lieu of Taxes" ' ILOT") for public services
and facilities. The Authority nu ues th re d the money "...to again fund
i sorely needed affordable ho ng relat acti a tten a low-income housing needs of
Fort Collins residents."
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Resolution 92-93 reinstated the requirement by the City of the Authority to make the annual
PILOT payments to the City. The purpose of the Resolution was to clarify that these funds are
the property of the City and not excess Housing and Urban Development ("HUD") funds. The
City may spend the PILOT revenues as it deems appropriate in accordance with law, including
remitting the funds to the Authority if the Council determines that such remittal serves a valid
public purpose. The Council has remitted the PILOT to the Authority annually since 1992.
BACKGROUND:
On December 16, 1971, the City and the Authority entered into a Cooperative Agreement which
i provided that the Authority must make annual PILOT payments to the City for the public
services and facilities furnished by the City. In 1986, upon request of the Authority, the City
DATE: March 19, 2002 2 ITEM NUMBER: 11
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Council adopted a Resolution which relieved the Authority of its obligation to make the PILOT
payments. Based on that Resolution, the Authority did not make PILOT payments-from 1987
through 1990. The Authority also received a refund from the City of PILOT payments for the
years 1984, 1985 and 1986.
In 1992, the City Council approved a change in the Cooperative Agreement to reinstate the
requirement for the Authority to pay the annual PILOT. The change was made to clarify that
such a payment was due to the City and to avoid the possibility that HUD might require the
PILOT be returned to the federal government.
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Since that time, the City hasCmer
Ponsent
"HLTD
he Housing Authority. Staff
recommends that the 2002ppropriated as unanticipated
revenue in the General Fuith the requirement that the
Authority use the funds in thnes. The intended use for the
funds is affordable housing and related activities.
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