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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 07/15/2014 - SECOND READING OF ORDINANCE NO. 092, 2014, APPROPRAgenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY July 15, 2014 City Council STAFF Jennifer Hensley, Finance Coordinator Matt Robenalt, Executive Director SUBJECT Second Reading of Ordinance No. 092, 2014, Appropriating Prior Year Reserves in the Downtown Development Authority Fund for Expenditure on Projects and Programs in Accordance with the Downtown Plan of Development. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on July 1, 2014, appropriates unanticipated revenue for the Downtown Development Authority for projects and programs that enhance the downtown area. These funds, totaling $1,822,273, are from interest earnings, project savings, and from prior year bond proceeds. The DDA Board has authorized the expenditure on various projects and programs. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary (w/o attachments) (PDF) 2. Ordinance No. 092, 2014 (PDF) Agenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY July 1, 2014 City Council STAFF Jennifer Hensley, Finance Coordinator Matt Robenalt, Executive Director SUBJECT Second Reading of Ordinance No. 092, 2014, Appropriating Prior Year Reserves in the Downtown Development Authority Fund for Expenditure on Projects and Programs in Accordance with the Downtown Plan of Development. EXECUTIVE SUMMARY The purpose of this item is to appropriate unanticipated revenue for the Downtown Development Authority for projects and programs that enhance the downtown area. These funds, totaling $1,822,273, are from interest earnings, project savings, and from prior year bond proceeds. The DDA Board has authorized the expenditure on various projects and programs. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Downtown Development Authority (the "DDA") was created in 1981 with the purpose, according to State statute, of planning and implementing projects and programs within the boundaries of the DDA. The DDA and 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 notes and tax increment bonds. The first issuance of tax increment bonds occurred in 1984 with subsequent issues through 2012. Over the past year, proceeds from DDA tax increment financing (TIF) revenues that have not been spent have accumulated interest earnings. These funds, as well as the project savings, need to be appropriated for expenditure. The amount of interest earnings is currently $95,209 and project savings is $795,732. Also, the DDA needs to appropriate 2010, 2011, and 2012 bond proceeds that were earmarked “Bonded but not Appropriated” for expenditure in the respective amounts of $379,639, $299,605, and $252,088. The subject funds of this appropriation have been directed by the DDA Board for the following purposes: 1. Old Town Square Renovation: This project will address the overstressed infrastructure and make strategic design improvements to the physical space. Design process, including public engagement, is occurring throughout 2014 with construction anticipated to begin early 2015. 2. Facade Grant Program: Established by the DDA Board in 2006, the Facade Grant Program provides DDA investment of up to 25% of eligible feature costs on vertical façade elements of historic and non- historic buildings in the DDA boundary. To date, the Program has assisted in the enhancement and rehabilitation of twenty-three buildings in the downtown area. ATTACHMENT 1 Agenda Item 10 Item # 10 Page 2 3. River District Improvements: Willow Street: This project includes continued implementation of the Downtown River District Streetscape Improvement Project Plan. Savings from the DDA’s $1 million contribution to the Linden Street project phase are proposed for redirection into the final design of Willow Street as overseen by the City Engineering Department. 4. Storm Water/Utility Matching Grant - Willow Street: This project will encourage Willow Street property owners to hire a civil engineer to review/coordinate with the City’s engineering design team on storm water and utilities issues related to the owners’ future vision for the property. Staff has provided DDA Board Minutes summaries for all of the projects and programs described above. All of the projects and programs listed for funding through this appropriation have been approved by the DDA Board of Directors. All approvals by the DDA Board are made contingent upon City Council appropriation of these funds to fulfill the DDA’s commitment to the projects and programs. FINANCIAL / ECONOMIC IMPACTS The DDA Board has authorized expenditure on the following projects and programs which will be funded with this appropriation: 1. Old Town Square Renovation $1,519,708 2. Facade Grant Program 100,000 3. River District Improvements - Willow Street 187,565 4. Storm Water/Utility Matching Grant - Willow Street 15,000 $1,822,273 BOARD / COMMISSION RECOMMENDATION At its November 14, 2013 meeting, the Downtown Development Authority Board of Directors adopted the appropriation of funds as stated above. ATTACHMENTS 1. DDA Boundary map (PDF) 2. DDA minutes, November 14, 2013 (PDF) - 1 - ORDINANCE NO. 092, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE DOWNTOWN DEVELOPMENT AUTHORITY FUND FOR EXPENDITURE ON PROJECTS AND PROGRAMS IN ACCORDANCE WITH THE DOWNTOWN PLAN OF DEVELOPMENT WHEREAS, on April 21, 1981, the City Council adopted Ordinance No. 046, 1981, establishing the Fort Collins, Colorado Downtown Development Authority (the “DDA”); and WHEREAS, the DDA’s Plan of Development was approved by the City Council on September 8, 1981, and established the purpose of the DDA and the types of projects and programs in which the DDA would participate; and WHEREAS, bond proceeds from 2008 through 2012 have accrued interest earnings in the amount of $95,209; and WHEREAS, DDA and City staff have identified project savings of $795,732 from bond proceeds currently in reserves; and WHEREAS, DDA and City staff have also identified the following bond proceeds that have not yet been appropriated: 2010 Bond Series - $379,639; 2011 Bond Series - $299,605; and 2012 Bond Series - $252,088; and WHEREAS, on November 14, 2013, the Board of Directors of the DDA voted to recommend to the City Council the appropriation of the above-referenced funds for expenditure on DDA projects and programs in accordance with the Downtown Plan of Development; 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 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 anticipated revenue as described herein will not cause the total amount appropriated in the DDA 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 for expenditure from reserves in the DDA Fund the sum of ONE MILLION EIGHT HUNDRED SEVEN THOUSAND TWO HUNDRED SEVENTY-THREE DOLLARS ($1,807,273) to be used for the DDA projects and programs stated below: - 2 - Old Town Square Renovation $1,519,708 Façade Grant Program 100,000 River District Improvements - Willow Street 187,565 Storm Water/Utility Matching Grant - Willow Street 15,000 Total Projects/Programs $1,822,273 Introduced, considered favorably on first reading, and ordered published this 1st day of July, A.D. 2014, and to be presented for final passage on the 15th day of July, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of July, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk