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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/03/2014 - SECOND READING OF ORDINANCE NO. 076, 2014 APPROPRIAgenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY June 3, 2014 City Council STAFF Beverly Gast, Financial Coordinator Kelly DiMartino, Assistant City Manager SUBJECT Second Reading of Ordinance No. 076, 2014 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 20, 2014, appropriates $195,981, of which $83,619 is for 2014 Cultural Development and Programming Activities (Fort Fund), $8,977 is for 2014 Tourism Programming (Fort Fund), and $103,385 is for 2014 Fort Collins Convention and Visitors Bureau (CVB) activities from Unanticipated Revenue (Lodging Tax) and Prior Year Reserves (unspent appropriations) in the General Fund Lodging Tax Reserves. Lodging taxes for 2013 were estimated at $955,000 with actual lodging tax revenues collected equaling $1,102,693 ($147,693 over estimate). STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, May 20, 2014 (PDF) 2. Ordinance No. 076, 2014 (PDF) Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY May 20, 2014 City Council STAFF Beverly Gast, Financial Coordinator Kelly DiMartino, Assistant City Manager SUBJECT First Reading of Ordinance No. 076, 2014 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 The purpose of this item is to appropriate $195,981, of which $83,619 is for 2014 Cultural Development and Programming Activities (Fort Fund), $8,977 is for 2014 Tourism Programming (Fort Fund), and $103,385 is for 2014 Fort Collins Convention and Visitors Bureau (CVB) activities from Unanticipated Revenue (Lodging Tax) and Prior Year Reserves (unspent appropriations) in the General Fund Lodging Tax Reserves. Lodging Taxes for 2013 were estimated at $955,000 with actual Lodging Tax revenues collected equaled $1,102,693 ($147,693 over estimate). STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Section 25-44 of the City Code requires that 75% of the total lodging tax receipts be used for the promotion of convention and visitor activities and 25% of receipts be used for cultural development and programming activities. Actual revenue collected is appropriated based on this allocation formula and any excess revenue and budget savings are reserved for these activities in the General Fund balance. FINANCIAL / ECONOMIC IMPACTS Lodging Tax 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 103,385 7,385 36,923 147,693 Unspent Appropriations 0 1,592 46,696 48,288 Total 103,385 8,977 83,619 195,981 ATTACHMENT 1 - 1 - ORDINANCE NO. 076, 2014 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 Code of the City of Fort Collins 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, Lodging Taxes were estimated at $955,000 for 2013, all of which estimate was appropriated and all but $48,288, of which was spent in 2013; and WHEREAS, at the end of 2013, a total of $1,102,693 in Lodging Tax revenues had been collected and the unspent portions lapsed into the General Fund Reserves for Lodging Tax programs and activities; and WHEREAS, unanticipated Lodging Tax revenue in the amount of $147,693 remains in the General Fund and is to be appropriated for each of the Lodging Tax programs and activities as follows; and • Cultural Development and Programming $ 36,923 • Tourism Programming $ 7,385 • Fort Collins Convention and Visitors Bureau $ 103,385 WHEREAS, unexpended 2013 appropriations of Lodging Tax revenue in the amount of $48,288 have lapsed and were returned to the General Fund, and are to be appropriated for Lodging Tax programs and activities based on the use specified when they were first appropriated, as follows: • Cultural Development and Programming $ 46,696 • Tourism Programming $ 1,592 and; 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 - 2 - 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 EIGHTY THREE THOUSAND SIX HUNDRED NINETEEN DOLLARS ($83,619) 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 EIGHT THOUSAND NINE HUNDRED SEVENTY SEVEN DOLLARS ($8,977) 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 ONE HUNDRED THREE THOUSAND THREE HUNDRED EIGHTY FIVE DOLLARS ($103,385) for the Fort Collins Conventions and Visitors Bureau. Introduced, considered favorably on first reading, and ordered published this 20th day of May, A.D. 2014, and to be presented for final passage on the 3rd day of June, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 3 - Passed and adopted on final reading on the 3rd day of June, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk