HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/19/2002 - FIRST READING OF ORDINANCE NO. 048, 2002, APPROPRI AGENDA ITEM SUMMARY ITEM NUMBER: 1l
FORT COLLINS CITY COUNCIL DATE: March 19, 2002
10 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.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
The City received unanticipated revenue from the Fort Collins Housing Authority in the amount
of $13,334 as a 2002 payment for public services and facilities. The revenue was placed in the
General Fund. This Ordinance will return the funds to the Housing Authority to be used for
affordable housing-related activities.
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."
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:
110 On December 16, 1971, the City and the Authority entered into a Cooperative Agreement which
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
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.
Since that time, the City has refunded annual PILOT payments to the Housing Authority. Staff
recommends that the 2002 PILOT payment of $13,334 also be appropriated as unanticipated
revenue in the General Fund and remitted to the Authority with the requirement that the
Authority use the funds in the manner consistent with HUD guidelines. The intended use for the
funds is affordable housing and related activities.
• ORDINANCE NO. 048, 2002
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE GENERAL FUND
TO BE RETURNED TO THE FORT COLLINS HOUSING AUTHORITY
TO FUND AFFORDABLE HOUSING RELATED ACTIVITIES
WHEREAS, the City has received a payment from the Fort Collins Housing Authority
(the "Authority") of$13,334 as a payment in lieu of taxes for 2002 ("PILOT"); and
WHEREAS, the Authority has requested that the 2002 PILOT payment be appropriated
by the Council for expenditure by the Authority to fund affordable housing related activities and
to attend to the housing needs of low-income Fort Collins residents; and
WHEREAS, said payment of$13,334 was not projected as a revenue source in the 2002
budget of the City; and
WHEREAS, the City Council has determined that the provision of affordable housing
serves an important public purpose and is an appropriate use of these funds; and
WHEREAS, Article V, Section 14 of the Charter of the City of Fort Collins permits the
City Council to make supplemental appropriations by ordinance at any time during the fiscal
• year, provided that the total amount of such supplemental appropriations, in combination with all
previous appropriations for that fiscal year, do not exceed the then current estimate of actual and
anticipated revenues to be received during the fiscal year; and
WHEREAS, City staff has determined that the appropriation of the Authority PILOT as
described herein will not cause the total amount appropriated in the relevant fund to exceed the
current estimate of actual and anticipated revenues to be received in that fund during any fiscal
year.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that there is hereby appropriated from unanticipated revenue in the General
Fund the sum of THIRTEEN THOUSAND THREE HUNDRED AND THIRTY FOUR
DOLLARS ($t3,334) to be returned to the Authority to fund affordable housing related activities
for Fort Collins residents consistent with the Federal Department of Housing and Urban
Development guidelines.
Introduced and considered favorably on first reading and ordered published this 19th day
of March, A.D. 2002, and to be presented for final passage on the 2nd day of April, A.D. 2002.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 2nd day of April, A.D. 2002.
Mayor
ATTEST:
City Clerk