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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 07/22/2014 - RESOLUTION 2014-064 APPROVING THE 2014 CERTIFICATAgenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY July 22, 2014 City Council STAFF Mike Beckstead, Chief Financial Officer SUBJECT Resolution 2014-064 Approving the 2014 Certification to the Larimer County Assessor Pursuant to C.R.S. Section 31-25-807(3)(a(IV)(B) for the Downtown Development Authority Property Tax Increment. EXECUTIVE SUMMARY The purpose of this item is to certify for 2014 to the Larimer County Assessor the percentages of property tax distributions that are to be allocated for the Downtown Development Authority by the Assessor as tax increment from the property taxes of all of the affected taxing entities. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION In 2008 the Fort Collins, Colorado Downtown Development Authority (“DDA”) was in the final ten years of its original thirty-year period (“Original TIF Term”) during which a portion of property taxes could be allocated to and, when collected, paid into the DDA’s Tax Increment Fund (“TIF Fund”). Pursuant to C.R.S. §31-25- 807(3)(a), in the final ten years of the Original TIF Term, the City Council by ordinance had the authority to extend such term by one additional twenty-year period (the “TIF Extension Period”). Also, under C.R.S. §31- 25-807(3)(a), the Council had the authority to allocate more than fifty percent (50%) of property taxes levied by the City to be allocated in accordance with the DDA statutes to be paid into the TIF Fund. On July 10, 2008, the DDA approved its Resolution 2008-06 recommending to the City Council (i) approval of the TIF Extension Period and (ii) the allocation of one hundred percent (100%) of the City’s property tax increment into the TIF Fund (the “100% City TIF Allocation”). On September 2, 2008, the City Council adopted Ordinance No. 101, 2008 (the “2008 Ordinance”) approving the TIF Extension Period and the 100% City TIF Allocation. C.R.S. §31-25-807(3)(a)(IV)(B) provides that an annual certification from the City’s governing body to the Larimer County Assessor is required, which certification needs to include the allocations of tax increment for that year of all affected taxing entities, including the City. After adoption of the 2008 Ordinance, DDA’s staff worked with the Larimer County Assessor’s Office (“Assessor’s Office”) and the Department of Local Affairs Division of Property Taxation (DPT”) to determine a legally sufficient certification process under applicable Colorado statutes and the DPT administrative rules, resulting in a process whereby the DDA would annually provide a letter to the Assessor’s Office either attaching the 2008 Ordinance directing the 100% TIF Allocation to the TIF Fund or, if the City Council’s direction had changed, attaching the corresponding action evidencing such change (the “Annual Certification”). The DDA has submitted the Annual Certifications to the Assessor’s Office on the City’s behalf for the years 2011, 2012 and 2013, and in each instance attached the City’s 2008 Ordinance demonstrating the City’s continued commitment to the 100% City TIF Allocation. The Assessor’s Office has accepted, until recently, this process as meeting the requirements of C.R.S. Section 31-25- 807(3)(a)((IV)(B). Steve Miller, the Larimer County Assessor, has now asked that the City Council make this year’s Annual Certification rather than relying on the previously agreed upon process. The proposed Agenda Item 2 Item # 2 Page 2 Resolution constitutes this Annual Certification for 2014 property taxes payable in 2015. This Annual Certification must be provided to the Assessor’s Office by August 1, 2014. FINANCIAL / ECONOMIC IMPACTS No changes in the financial or economic impacts as they currently exist. - 1 - RESOLUTION 2014-064 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE 2014 CERTIFICATION TO THE LARIMER COUNTY ASSESSOR PURSUANT TO C.R.S. SECTION 31-25-807(3)(a)(IV)(B) FOR THE DOWNTOWN DEVELOPMENT AUTHORITY PROPERTY TAX INCREMENT WHEREAS, in 2008 the Fort Collins, Colorado Downtown Development Authority (“DDA”) was in the final ten years of its original thirty-year period (“Original TIF Term”) during which a portion of property taxes could be allocated to and, when collected, paid into the DDA’s Tax Increment Fund (“TIF Fund”); and WHEREAS, pursuant to C.R.S. §31-25-807(3)(a), in the final ten years of the Original TIF Term, the City Council of the City of Fort Collins, Colorado (“City”) by ordinance had the authority to extend such term by one additional twenty-year period (the “TIF Extension Period”), provided that (i) on the first day of the TIF Extension Period the established base year for the allocation of property taxes is advanced by ten years and (ii) upon the completion of the first ten years of the TIF Extension period, the base is advanced by one year for every additional year through the final ten years; and WHEREAS, pursuant to C.R.S. §31-25-807(3)(a), the City Council also had the authority to allocate more than fifty percent (50%) of property taxes levied by the City to be allocated in accordance with the DDA’s statutes and to be paid into the TIF Fund; and WHEREAS, on July 10, 2008, the DDA approved Resolution 2008-06, a copy of which is attached as Exhibit “A”, (the “DDA Resolution”) recommending to the City Council (i) approval of the TIF Extension Period and (ii) the allocation of one hundred percent (100%) of the City’s property tax increment into the TIF Fund (the “100% City TIF Allocation”); and WHEREAS, on September 2, 2008, the City Council adopted Ordinance No. 101, 2008 (the “2008 Ordinance”) approving the TIF Extension Period and, consistent with the August 19, 2008 Agenda Item Summary accompanying such ordinance and the DDA Resolution, approved the 100% City TIF Allocation; and WHEREAS, on February 15, 2010, the City Council, ex-officio the Board of Directors of General Improvement District No. 1, adopted Ordinance No. 060 (“2010 GID Ordinance”) allocating one hundred percent (100%) of the tax increment revenue from the Fort Collins General Improvement District No. 1 to the DDA Tax Increment Fund for the TIF Extension Period, with the seventh recital of the 2010 GID Ordinance confirming that the 2008 Ordinance had approved the 100% City TIF Allocation; and WHEREAS, pursuant to C.R.S. §31-25-807(3)(a)(IV)(B), an annual certification from the City’s governing body to the Larimer County Assessor is required, which certification needs to include the allocations of tax increment for that year of all affected taxing entities, including the City; and - 2 - WHEREAS, after adoption of the 2008 Ordinance and the 2010 GID Ordinance, the DDA Staff worked with the Larimer County Assessor’s Office (“Assessor’s Office”) and the Department of Local Affairs Division of Property Taxation (DPT”) to determine a legally sufficient certification process under applicable Colorado statutes and the DPT administrative rules, resulting in a process whereby the DDA would annually provide a letter to the Assessor’s Office either attaching the 2008 Ordinance directing the 100% TIF Allocation to the TIF Fund or, if the City Council’s direction had changed, attaching the corresponding action evidencing such change (the “Annual Certification”); and WHEREAS, the DDA has submitted the Annual Certifications to the Assessor’s Office for the years 2011, 2012 and 2013, and in each instance attached the City’s 2008 Ordinance demonstrating the City’s continued commitment to the 100% City TIF Allocation which process the Assessor’s Office has accepted, until recently, as satisfying the requirements of C.R.S. Section 31-25-807(3)(a)(IV)(B); and WHEREAS, the City has now been asked by the Assessor’s Office to provide this year’s Annual Certification from the City Council rather than using the previously agreed upon process; and WHEREAS, the City Council therefore desires to affirm its earlier decision approving the 100% City TIF Allocation through the TIF Extension Period and to recertify, reaffirm and ratify all of the Annual Certifications provided to Assessor’s Office by the City or by the DDA on the City’s behalf the past three years and to certify and to authorize herein the 2014 Annual Certification to the Assessor’s Office. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That, consistent with the 2008 Ordinance and the 2010 Ordinance, the City Council hereby recertifies, reaffirms and ratifies all of the Annual Certifications provided previously to the Assessor’s Office for the years 2011 through 2013 by the City or by the DDA on the City’s behalf and reaffirms that the 100% City TIF Allocation was properly made in years 2011 through 2013 and that such Allocation is intended to continue through the end of the TIF Extension Period without need for any further action of the City Council. Section 2. That the City Council hereby certifies to the Assessor’s Office, as required by C.R.S. Section 31-25-807(3)(a)(IV)(B), that for 2014 property taxes payable in 2015 the City and the Fort Collins General Improvement District No. 1 continue to allocate 100% of their available property tax increment from their mill levies to the DDA tax increment fund, but that all other affected taxing entities are only allocating 50% of their property tax increment. - 3 - Passed and adopted at an adjourned meeting of the Council of the City of Fort Collins this 22nd day of July, A.D. 2014. _________________________________ Mayor ATTEST: _____________________________ City Clerk