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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/21/2013 - SECOND READING OF ORDINANCE NO. 066, 2013, APPROPRDATE: May 21, 2013 STAFF: Bev Gast Kelly DiMartino AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 7 SUBJECT Second Reading of Ordinance No. 066, 2013, Appropriating Prior Year Reserves and Unanticipated Revenue in the General Fund for Cultural Development and Programming Activities, Tourism Programming, and the Fort Collins Convention and Visitors Bureau. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on May 7, 2013, appropriates $139,465, of which $57,571 is for 2013 Cultural Development and Programming Activities (Fort Fund), $9,842 for 2013 Tourism Programming (Fort Fund), and $72,052 for 2013 Fort Collins Convention and Visitors Bureau (CVB) from Unanticipated Revenue (Lodging Tax) and Prior Year Reserves (unspent appropriations) in the General Fund Lodging Tax Reserves. Lodging Taxes for 2012 were estimated at $815,000; actual Lodging Tax revenues collected equaled $1,011,840 ($196,840 over estimate). In 2013, the Fort Collins CVB is due to receive $740,552 based on 2012 Lodging tax collections and prior year reserves. However, the CVB has already received $65,736 of the unanticipated $137,788 Lodging tax revenue in 2012 so only $72,052 is needed to be appropriated to the Fort Collins CVB. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary - May 7, 2013 COPY COPY COPY ATTACHMENT 1 DATE: May 7, 2013 STAFF: Bev Gast Kelly DiMartino AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 15 SUBJECT First Reading of Ordinance No. 066, 2013, Appropriating Prior Year Reserves and Unanticipated Revenue in the General Fund for Cultural Development and Programming Activities, Tourism Programming, and the Fort Collins Convention and Visitors Bureau. EXECUTIVE SUMMARY This Ordinance appropriates $139,465, of which $57,571 is for 2013 Cultural Development and Programming Activities (Fort Fund), $9,842 for 2013 Tourism Programming (Fort Fund), and $72,052 for 2013 Fort Collins Convention and Visitors Bureau (CVB) from Unanticipated Revenue (Lodging Tax) and Prior Year Reserves (unspent appropriations) in the General Fund Lodging Tax Reserves. Lodging Taxes for 2012 were estimated at $815,000; actual Lodging Tax revenues collected equaled $1,011,840 ($196,840 over estimate). In 2013, the Fort Collins CVB is due to receive $740,552 based on 2012 Lodging tax collections and prior year reserves. However, the CVB has already received $65,736 of the unanticipated $137,788 Lodging tax revenue in 2012 so only $72,052 is needed to be appropriated to the Fort Collins CVB. 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 Lodging Tax 2012 75% 25% Promote Convention Promote Cultural Development & Visitor Activities & Programming Convention & Visitors Bureau 70% Fort Fund (Tourism Programming) 5% Fort Fund (Cultural Development & Programming) 25% Total Unanticipated Lodging Tax 137,788 9,842 49,210 196,840 Unspent Appropriations -65,736 0 8,361 -57,375 Total 72,052 9,842 57,571 139,465 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. COPY COPY COPY May 7, 2013 -2- ITEM 15 BOARD / COMMISSION RECOMMENDATION The City’s Cultural Resources Board reviews applications for Fort Fund and makes recommendations to the City Council. This fund supports events that provide a public benefit to the Fort Collins community, and promotes the utilization of public accommodations within the city. ORDINANCE NO. 066, 2013 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, TOURISM PROGRAMMING, 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 2012, a total of $1,011,840 in lodging tax revenues was collected and lapsed into the General Fund Reserves for lodging tax programs and activities; and WHEREAS, prior year reserves and unanticipated revenue in the amount of $139,465 is to be appropriated for each of the lodging tax programs and activities as follows; and • Cultural Development and Programming $ 57,571 • Tourism Programming $ 9,842 • Fort Collins Convention and Visitors Bureau $ 72,052 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, Tourism 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 FIFTY SEVEN THOUSAND FIVE HUNDRED SEVENTY ONE DOLLARS ($57,571) 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 NINE THOUSAND EIGHT HUNDRED FORTY TWO DOLLARS ($9,842) for the Tourism Programming. Section 3. That there is hereby appropriated for expenditure from prior year reserves in the General Fund the total sum of SEVENTY THOUSAND FIFTY TWO DOLLARS ($72,052) for the Fort Collins Conventions and Visitors Bureau. Introduced, considered favorably on first reading, and ordered published this 7th day of May, A.D. 2013, and to be presented for final passage on the 21st day of May, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 21st day of May, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk