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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/15/2013 - ITEMS RELATING TO THE 2014 DOWNTOWN DEVELOPMENT AUAgenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Jennifer Hensley, Finance Coordinator Matt Robenalt, Executive Director SUBJECT Items Relating to the 2014 Downtown Development Authority Budget. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 139, 2013, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2014 and Fixing the Mill Levy For the Downtown Development Authority for Fiscal Year 2014. B. First Reading of Ordinance No. 140, 2013, Appropriating Proceeds from the Issuance of City of Fort Collins Downtown Development Authority Subordinate Tax Increment Bond, Series 2013A, for the Purpose of Making Certain Capital Improvements Within the Downtown Area of Fort Collins. The Annual Appropriation Ordinance is presented for First Reading. Ordinance, No. 139, 2013 sets the Downtown Development Authority (DDA) 2014 Operations and Maintenance Budget amount of $764,404 to be appropriated for fiscal year 2014 for the administrative operations budget, appropriates the 2014 Line of Credit Draw in the amount of $1,000,000, sets the amount of $3,197,101 for debt service payments to be appropriated for fiscal year 2014, and sets the 2014 Mill Levy for the Fort Collins DDA at five (5) mills (unchanged since tax year 2002). The approved Budget will become the Downtown Development Authority’s financial plan for 2014. Ordinance No. 140, 2013 appropriates bond proceeds in the amount of $6,050,000. STAFF RECOMMENDATION The Downtown Development Authority Board of Directors and staff recommend adoption of these Ordinances on First Reading. BACKGROUND / DISCUSSION The Downtown Development Authority was created in 1981 with the statutory purpose 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 five (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 would 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. Agenda Item 8 Item # 8 Page 2 FINANCIAL / ECONOMIC IMPACT The Fort Collins Downtown Development Authority is requesting approval of the DDA Operations and Maintenance Budget for fiscal year 2014 in the amount of $764,404. It is requesting appropriation of up to $1,000,000 for the 2014 Line of Credit draw. It is also requesting approval of the DDA debt payment commitments in the amount of $3,197,101 for 2014 obligations. Uses: Personnel Services $439,212 Contractual Professional Services 281,955 Purchased Supplies and Commodities 24,593 Other 18,644 Total $764,404 The 2014 Line of Credit draw, whose debt service payment will be made from the debt service fund, is projected to fund up to $1,000,000. Uses: Museum of Discovery - 2014 Payment $500,000 Future Façade Public/Private Investments 452,089 Fees: Project Management and Bank Fees 47,911 $1,000,000 The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments for 2014. Uses: Debt Payment: 2014 $3,197,101 The DDA Special Fund is projected to have the bond proceeds necessary to fund the Woodward Public Improvement City Capital Project Fund in fiscal year 2013. Uses: Fund City Capital Project Fund $6,050,000 BOARD / COMMISSION RECOMMENDATION At its September 12, 2013 meeting, the Downtown Development Authority Board of Directors adopted its proposed budget for 2014 totaling $4,961,505 and determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA. Also, the Board adopted Resolutions recommending appropriation of bond proceeds. Resolutions 2013-12 through 2013-16 (Attachments 2- 6) encompass all passed items. ATTACHMENTS 1. DDA Boundary Map 2. Resolution 2013-12 3. Resolution 2013-13 4. Resolution 2013-14 5. Resolution 2013-15 6. Resolution 2013-16 Cache La Poudre River E VINE DR RIVERSIDE AVE SMITH ST E ELIZABETH ST S MASON ST S LEMAY AVE MATHEWS ST N COLLEGE AVE LOCUST ST WHEDBEE ST PETERSON ST E LINCOLN AVE E MYRTLE ST LINDEN ST STOVER ST REMINGTON ST S COLLEGE AVE 12TH ST E PLUM ST 9TH ST MAPLE ST S HOWES ST W OAK ST E OLIVE ST CHERRY ST E OAK ST W OLIVE ST BUCKINGHAM ST S MELDRUM ST E MULBERRY ST HEMLOCK ST WILLOW ST W LAUREL ST S WHITCOMB ST LAPORTE AVE W MYRTLE ST 1ST ST N LEMAY AVE 3RD ST 2ND ST REDWOOD ST N SHERWOOD ST N WHITCOMB ST W MAGNOLIA ST CAJETAN ST W MOUNTAIN AVE 10TH ST COWAN ST N MASON ST OSIANDER ST JEFFERSON ST JEROME ST MAIN ST COLORADO ST PASCAL ST OVAL DR WALNUT ST E MOUNTAIN AVE S SHERWOOD ST ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 4 ATTACHMENT 5 ATTACHMENT 6 - 1 - ORDINANCE NO. 139, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE FOR THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2014 AND FIXING THE MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2014 WHEREAS, the Fort Collins Downtown Development Authority (the “DDA”) has been duly organized in accordance with the Colorado Revised Statutes (C.R.S) 31-25-804, 1973 as amended; and WHEREAS, on September 12, 2013, the DDA Board of Directors (the “DDA Board”), acting under the provisions of C.R.S. 31-25-816, 1973, as amended, adopted a budget for the fiscal year beginning January 1, 2014 and ending December 31, 2014; and WHEREAS, the DDA budget included appropriation of the 2014 annual draw on a revolving line of credit (the “ 2014 Line of Credit”) established under Resolution 2012-02, to finance DDA projects and programs in accordance with its approved Plan of Development, the Downtown Plan, and the Downtown Strategic Plan; and WHEREAS, the DDA budget also determined the mill levy necessary to provide for payment during fiscal year 2014 of properly authorized operational and maintenance expenditures to be incurred by the DDA; and WHEREAS, it is the desire of the City Council to appropriate the sum of FOUR MILLION, NINE HUNDRED SIXTY ONE THOUSAND, FIVE HUNDRED FIVE DOLLARS ($4,961,505) in the DDA Operation and Maintenance Fund and the Debt Service Fund for the fiscal year beginning January 1, 2014 and ending December 31, 2014, to be used as follows: DDA Operations & Maintenance $ 764,404 2013 Revolving Line of Credit Draw 1,000,000 DDA Debt Service Fund 3,197,101 $4,961,505 WHEREAS, the DDA Board has recommended to the Council a mill levy of five (5) mills upon each dollar of assessed valuation on all taxable property within the DDA boundaries (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 properly authorized operational and maintenance 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 of Larimer County no later than December 15, 2013. - 2 - 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 SEVEN HUNDRED SIXTY FOUR THOUSAND, FOUR HUNDRED AND FOUR DOLLARS ($764,404), to be expended for the authorized purposes of the DDA. Section 2. That there is hereby appropriated for expenditure from the Downtown Development Authority 2014 Line of Credit draw the sum of up to ONE MILLION DOLLARS ($1,000,000), to be used for the authorized purposes of the DDA. Section 3. That there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of THREE MILLION, ONE HUNDRED NINTY-SEVEN THOUSAND, ONE HUNDRED AND ONE DOLLARS ($3,197,101), for payment of debt service on previously issued and outstanding bonds, to pay the City’s investment service charge, for payment on the 2014 Line of Credit draw, and to be used to cover the DDA’s one-third share of payment on the Civic Center Parking Structure. Section 4. That the 2014 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, 2013 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 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 Larimer County, Colorado, by the City Clerk as provided by law. Introduced, considered favorably on first reading and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. ___________________________________ Mayor ATTEST: _________________________________ City Clerk - 3 - Passed and adopted on final reading this 5th day of November, A.D. 2013. _________________________________ Mayor ATTEST: __________________________________ City Clerk - 1 - ORDINANCE NO. 140, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PROCEEDS FROM THE ISSUANCE OF CITY OF FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY SUBORDINATE TAX INCREMENT REVENUE BOND, SERIES 2013A FOR THE PURPOSE OF MAKING CERTAIN CAPITAL IMPROVEMENTS WITHIN THE DOWNTOWN AREA OF FORT COLLINS WHEREAS, on April 21, 1981, the City of Fort Collins, Colorado, adopted Ordinance No. 46, 1981, establishing the Fort Collins, Colorado, Downtown Development Authority; and WHEREAS, the Downtown Development Authority’s Plan of Development was approved by the City on September 8, 1981, and established the purpose of the Authority and the types of projects in which the Authority would participate; and WHEREAS, on June 1, 1982, a special election was held pursuant to Section 31-25- 807(b) of the Colorado Revised Statutes approving the issuance by the City of up to $25,000,000 in tax increment obligations to finance certain projects of the Downtown Development Authority; and WHEREAS, on November 7, 2006, another election was held and electors approved the issuance by the City of up to $150,000,000 in tax increment obligations to finance the costs of various development projects of the Downtown Development Authority; and WHEREAS, the City has heretofore issued and sold bonds or other indebtedness in the aggregate principal amount of $24,697,980, pursuant to the authority conferred at the 2006 election; and WHEREAS, there is sufficient remaining bonding authorization available to fund additional projects in the downtown area; and WHEREAS, through the adoption of Ordinance No. 055, 2013, of the Council of the City of Fort Collins, the Council authorized the issuance of the City of Fort Collins Downtown Development Authority Subordinate Tax Increment Revenue Bond, Series 2013A (the “Bond”), in the principal amount $6,050,000; and WHEREAS, the issuance of the Bond and the appropriation of the proceeds thereof are necessary to complete the construction of certain capital improvements in the downtown area of the City; and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins permits the City Council to make supplemental appropriations, in conjunction with all previous appropriations for that fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not - 2 - 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 Bond proceeds as described herein will not result in total appropriations in excess of the current estimate of actual and anticipated revenues for fiscal year 2013. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that, contingent upon the final sale and issuance of the Bond, there is hereby appropriated for expenditure from Bond proceeds in the Downtown Development Authority Operating Fund the amount of SIX MILLION FIFTY THOUSAND DOLLARS ($6,050,000), to be used to complete the construction of certain capital improvements in the downtown area of the City, as described more specifically in the attached Exhibit A. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Bond Proceed Expenditure: Transmission Line Relocation 1,300,000 Right of Way Improvements 1,750,000 Open Space Improvements 3,000,000 6,050,000 Exhibit A 11TH ST ENDICOTT ST HOFFMAN MILL RD MULLEIN DR E LAUREL ST PINE ST FRONTAGE RD WOODLAWN DR LESSER DR EAST DR BELLFLOWER DR SYCAMORE ST OLD MAIN DR E MAGNOLIA ST LILAC LN PENNOCK PL MARTINEZ ST POUDRE ST TENNEY CT LOPEZ CT EASTDALE DR N LEMAY AVE N MASON ST 1 inch = 1,200 feet 0 500000 1,000 2,000 3,000 4, Feet © Downtown Development Boundary Authority Legend Parcels DDA Boundary Printed: October 01, 2013 Amended: September 17, 2013 ATTACHMENT 1