HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/05/2001 - FIRST READING OF ORDINANCE NO. 96, 2001, APPROPRI !�f TS: •. ...
AGENDA ITEM SUMMARY ITEM NUMBER: 10
FORT COLLINS CITY COUNCIL DATE: June 5, 2001
STAFF: ,Alan Krcmarik
SUBJECT:
First Reading of Ordinance No. 96, 2001, Appropriating Unanticipated Revenue and Prior Year
Reserves in the Downtown Development Authority Debt Service Fund.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
The annual appropriation ordinance for the Downtown Development Authority for 2001
included $1,303,483 for debt service payments. The refunding of existing bonds earlier in 2001
yielded additional proceeds of$3,677,678 and accrued interest of$12,133. To accomplish the
objectives of the refunding, the City needs to make additional appropriations for the Series 2001
DDA Refunding Bonds. The refunding used $1,227,306 of reserves, which had not been
appropriated in the annual appropriation ordinance for 2001. In addition to this amount, the
DDA Debt service fund needs an additional appropriation of $3,476,777 to cover payments to
the escrow that will pay off the 1992 Series Bonds.
EXECUTIVE SUMMARY:
On April 17, Council adopted Ordinance No. 50, 2001, which refunded a portion of the
Downtown Development Authority ("DDA") Tax Increment Revenue Refunding Bonds, Series
1992, through the issuance of City of Fort Collins Downtown Development Authority Tax
Increment Revenue Refunding Bonds Series 2001, as approved by the Council in Ordinance No.
50, 2001, the amount of$3,640,000. This refunding will save the City and DDA about $200,000
over the next five years. Some of the costs of the refinancing were not known at the time of the
second reading and therefore, staff was unable to have Council appropriate the exact amounts
needed for the refunding costs. Ordinance No. 96, 2001, makes the required appropriations to
adequately cover the costs of the refinancing. The appropriations include the use of prior year
reserves ($1,227,306) and bond proceeds netted against existing appropriations in the fund
($3,476,777).
ORDINANCE NO. 96,2001
OF THE COUNCIL OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE AND
PRIOR YEAR RESERVES IN THE DOWNTOWN DEVELOPMENT
AUTHORITY DEBT SERVICE FUND
WHEREAS,on April 21, 1981,the City of Fort Collins, Colorado, adopted Ordinance No.
46, 1981,establishing the Fort Collins,Colorado,Downtown Development Authority(the"DDA');
and
WHEREAS, the DDA's Plan of Development was approved by the City on September 8,
1981 which 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 DDA; and
WHEREAS, Ordinance No. 36, 1992, authorized the issuance of Downtown Development
Authority Tax Increment Revenue Refunding Bonds, Series 1992, dated March 15, 1992, in the
aggregate principal amount of$11,380,000 (the "1992 Bonds"); and
WHEREAS,the 1992 Bonds were issued,and the proceeds of the 1992 Bonds were managed
and used in a manner consistent with the terms of Ordinance No. 36, 1992; and
WHEREAS, on April 17,2001, Council adopted Ordinance No. 50, 2001, which refunded
Downtown Development Authority Tax Increment Revenue Refunding Bonds Series 2001 in the
amount of$3,640,000 for the purpose of refunding a portion of the 1992 Bonds; and
WHEREAS, the refunding of the bonds yielded additional proceeds of $3,677,678 and
accrued interest of$12,133; and
WHEREAS, some of the costs of the refinancing were not known at the time of the second
reading and therefore, staff was unable to have Council appropriate the exact amounts needed for
the refunding costs; and
WHEREAS,to accomplish the objectives of the refunding,the City needs to make additional
appropriations for the Series 2001 DDA Refunding Bonds; and
WHEREAS, the annual appropriation ordinance for 2001 included $1,303,483 for debt
service payments; and
. WHEREAS,the refunding used$1,227,306 of reserves which had not been appropriated in
the annual appropriation ordinance for 2001; and
WHEREAS,in addition to the reserves in the amount of$1,227,306,the DDA Debt Service
Fund needs an additional appropriation of$3,476,777 to cover payments to the escrow that will pay
off the 1992 Bonds; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make
supplemental appropriations by ordinance at any time during the fiscal year,provided that the total
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, Article V, Section 9, of the City Charter also 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, it is the desire of the Council to appropriate the sum of$1,227,306 from prior
year reserves in the Downtown Development Authority Debt Service Fund and $3,476,777 from
unanticipated revenue in the form of bond proceeds in the Downtown Development Authority Debt
Service Fund to be used to cover payments to the escrow that will pay off the 1992 Bonds.
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
Downtown Development Authority Debt Service Fund the sum of ONE MILLION TWO
HUNDRED TWENTY-SEVEN THOUSAND THREE HUNDRED SIX DOLLARS($1,227,306)
to be used to cover the costs of the refinancing.
Section 2. That there is hereby appropriated for expenditure from unanticipated revenue in
the Downtown Development Authority Debt Service Fund the sum of THREE MILLION FOUR
HUNDRED SEVENTY-SIX THOUSAND SEVEN HUNDRED SEVENTY-SEVEN DOLLARS
($3,476,777)to be used to cover the costs of the refinancing.
Section 3. That all otherwise authorized actions by officers of the City in connection with
the refunding a portion of the DDA Tax Increment Revenue Refunding Bonds,Series 1992,through
the issuance of City of Fort Collins Downtown Development Authority Tax Increment Revenue
Refunding Bonds Series 2001, as approved by the Council in Ordinance No. 50, 2001, are hereby
ratified and approved,notwithstanding any irregularities in related appropriations provided that the
same are corrected by the adoption of this Ordinance.
Introduced,considered favorably on first reading,and ordered published this 5th day of June,
A.D. 2001, and to be presented for final passage on the 19th day of June, A.D. 2001.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 19th day of June, A.D. 2001.
Mayor
ATTEST:
City Clerk