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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/20/2007 - ITEMS RELATING TO THE 2008 DOWNTOWN DEVELOPMENT AU ITEM NUMBER: 7 A-C AGENDA ITEM SUMMARY DATE: November 20, 2007 FORT COLLINS CITY COUNCIL STAFF: Chip Steiner SUBJECT Items Relating to the 2008 Downtown Development Authority Budget. RECOMMENDATION Staff and the Downtown Development Authority Board recommend adoption of the Ordinances on Second Reading. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 115, 2007, Appropriating Downtown Development Authority Operating Funds and Fixing the Mill Levy for Fiscal Year 2008. B. Second Reading of Ordinance No. 116, 2007, Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service for the Year 2008. C. Second Reading of Ordinance No. 117, 2007, Authorizing the Transfer of Appropriations Between Capital Improvements Within the Downtown Development Authority Operations and Maintenance Fund Related to the City of Fort Collins, Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds,Series 2004A. The Downtown Development Authority Board of Directors (the 'Board") adopted its proposed budget for 2008 totaling $6,709,104 on September 13, 2007. The Board determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA at its regular meeting of September 13, 2007. Ordinance No. 115, 2007, appropriates the DDA operating funds and sets the mill levy. Ordinance No. 116, 2007, appropriates funds for 2008 DDA debt service payments from the tax increment received by the City. Ordinance No. 117, 2007, authorizes the transfer of appropriations of$1,000,000 from the City of Fort Collins Museum project to the funding of Beet Street for 2008. These Ordinances were unanimously adopted on First Reading on October 16, 2007, ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- October 16, 2007. ATTACHMENT 1 ITEM NUMBER: 16 AGENDA ITEM SUMMARY DATE: October 16, 2007 FORT COLLINS CITY COUNCIL FF: Chip Steiner �q SUBJECT ° Items Relating to the 2008 Downtown Development Authority Budget. RECOMMENDATION Staff and the Downtown Development Authority Board recommend adoption of the Ordinances on First Reading. EXECUTIVE SUMMARY A. First Reading of Or ante 115 2 App (Fiscal ing Downtown Development Authority Operating F s and ing 11 Levy f Year 2008. B. First Reading of Ordinance No. 116, 2007, Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service for the Year 2008. C. First Reading of Ordinance No. 117, 2007, Authorizing the Transfer of Appropriations Between Capital Improvements Within the Downtown Development Authority Operations and Maintenance Fund Related to the City of Fort Collins, Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds,Series 2004A. The Downtown Development Authority Board of Directors (the "Board") proposed ado ted its P budget for 2008 totaling$6,709,104 on September 13, 2007. The Board determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA at its regular meeting of September 13, 2007. Ordinance No. 115, 2007, appropriates the DDA operating funds and sets the mill levy. Ordinance No. 116, 2007, ap priates nds fLA It service payments from the tax increment received by the City. . Ordinance No. 117, 2007 authorizes the transfer of appropriations of$1,000,000 from the City of Fort Collins Museum project to the funding of Beet Street for 2008. October 16, 2007 -2- Item No. 16 BACKGROUND The Fort Collins Downtown Development Authority (the "DDA") was created in 1981 with the purpose,according to State statCDA tin J.ects and programs within the boundaries of the DDA. TheCity f. order P Development that specifies the projects and programs the DD dert t arry out the purposes of the State statute and the Plan of Develo of t A, has issued various notes and tax increment bonds. The first issuance of tax increment bonds occurred in 1984 and there has been one subsequent issue in 2007. In addition to the projects financed using the tax increment,the DDA has the ability under State law P J g tY to assess a mill levy for administration, operations, and maintenance purposes. The mill levy proposed by the Board of Directors for 2008 is five mills. Estimated revenue from the mill levy for 2007 is $430,000. The total operating budget for 2008 is $6,709,104. The DDA is asking Council to appropriate funds from the Downtown Development Authority Debt Service Fund for current debt. The current debt includes outstanding bonds and the 2008 payment for its one-third share of the Civic Center Parking Structure lease. The DDA Board adopted a Resolution on September 13,2007,for the outstanding bonds and the DDA share of the Civic Center Parking Structure lease. The DDA also asks Council t eappro DBo d V �Lown Development Authority Operations and Maintenance 2 4A r ect o of Fort Collins Museum to the funding of Beet Street for 2008. ATTACHMENTS 1. DDA Resolution 2007-04 Approving and Recommending to the Fort Collins City Council the Budget of the Estimated Amounts Required to Pay the Expenses of Conducting the Business of the Downtown Development Authority for the Fiscal Year Ending December 31, 2008. 2. DDA Resolution 2007-05 Recommending to the Fort Collins City Council the Determining and Fixing of the Mill Levy of the Downtown Development Authority for the Fiscal Year Ending December 31, 2008. 3. DDA Resolution 2007-06 Recommending to the Fort Collins City Council the Appropriation of$3,005,439 from the wn w e Plber on ebt Service Fund for Payment of Debt Service for th iscal Y endi 2008. 4. DDA Resolution 2007- Rego en ' gort llins City Council the Transfer of Appropriations of$1,000, 0 relate to the City of Fort Collins Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 2004A. ORDINANCE NO. 115, 2007 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING DOWNTOWN DEVELOPMENT AUTHORITY OPERATING FUNDS AND FIXING THE MILL LEVY FOR FISCAL YEAR 2008 WHEREAS, the Fort Collins Downtown Development Authority (the "DDA") has been duly organized in accordance with Section 31-25-804, C.R.S.; and WHEREAS, on September 13, 2007, the DDA Board of Directors (the "DDA Board"), acting under the provisions of Section 31-25-816, C.R.S., adopted a budget for the fiscal year beginning January 1, 2008, and determined the mill levy necessary to provide for payment during fiscal year 2008 of all properly authorized expenditures to be incurred by the DDA; and WHEREAS, it is the desire of the Council to appropriate the sum of SIX MILLION, SEVEN HUNDRED NINE THOUSAND, ONE HUNDRED FOUR DOLLARS ($6,709,t04) in the DDA Operation and Maintenance Fund for the fiscal year beginning January 1, 2008 and ending December 31, 2008, to be used as follows: DDA Projects from anticipated bond proceeds $5,802,900 DDA Operations & Maintenance 906,204 WHEREAS, the DDA Board has recommended to the Council a mill levy of 5.0 mills upon each dollar of assessed valuation of all taxable property within the DDA District, such levy representing the amount of taxes for DDA purposes necessary to provide for payment during the ensuing fiscal year for all properly authorized expenditures to be incurred by the DDA; and WHEREAS, Section 39-5-128(l), C.R.S., requires certification of any tax levy to the Board of County Commissioners no later than December 15 of each year. 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 the Downtown Development Authority Operations and Maintenance Fund the sum of NINE HUNDRED SIX THOUSAND TWO HUNDRED FOUR DOLLARS ($906,204), to be expended for the authorized purposes of the DDA. Section 2. That there is hereby appropriated for expenditure from the Downtown Development Authority Operations and Maintenance Fund the sum of FIVE MILLION EIGHT HUNDRED TWO THOUSAND NINE HUNDRED DOLLARS ($5,802,900), to be raised by bond proceeds anticipated to be issued in 2008. Section 3. That the 2008 mill levy rate for the taxation upon each dollar of the assessed valuation of all taxable property within the boundaries of the DDA as of December 31, 2007 shall be 5.0 mills, which levy represents the amount of taxes for DDA purposes to provide for payment during the aforementioned fiscal year of all properly authorized expenditures to be incurred by the DDA. Said mill levy shall be certified to the County Assessor and the Board of County Commissioners of Larimer County, Colorado, by the City Clerk as provided by law. Introduced, considered favorably on first reading, and ordered published this 16th day of October, A.D. 2007, and to be presented for final passage on the 20th day of November, A.D. 2007. Mayor ATTEST: A City Clerk Passed and adopted on final reading on the 20th day of November, A.D. 200T Mayor ATTEST: City Clerk ORDINANCE NO. 116, 2007 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING REVENUE IN THE DOWNTOWN DEVELOPMENT AUTHORITY DEBT SERVICE FUND FOR PAYMENT OF DEBT SERVICE FOR THE YEAR 2008 WHEREAS, the Fort Collins Downtown Development Authority (the "DDA") is a body corporate duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Downtown Development Authorities Act of the State of Colorado, Section 31-25-801, C.R.S. et seq. (the "Act"), and the powers of the DDA Board of Directors include the power to borrow money and to finance public improvements within the boundaries of the DDA; and WHEREAS, the Council, in Ordinance No. 088, 2004, authorized the issuance of $6,235,000 of Subordinate Tax Increment Revenue Bond, Series 2004A, dated June 14, 2004; and WHEREAS, the Council, in Ordinance No. 016, 2007, authorized the issuance of $5,700,000 of Subordinate Tax Increment Revenue Bond, Series 2007A, dated February 20, 2007; and WHEREAS, the DDA's payment for principal, interest, and debt service requirements on the total outstanding bonds will be $2,723,360 in 2008; and WHEREAS, the Council, in Ordinance No. 128, 1998, authorized the issuance of Lease Certificates of Participation Series 1998 in the amount of$17,210,000 of which $6,920,000 is attributable to the Civic Center Parking Structure (the "Parking Structure"); and WHEREAS, pursuant to its intergovernmental agreement with the City and Latimer County, the DDA has agreed to pay one-third of the lease payments attributable to the Parking Structure each year through 2011; and WHEREAS, the DDA's share of the 2007 lease payments for the Parking Structure is $282,079; and WHEREAS, pursuant to Section 31-25-816, C.R.S., the appropriation of DDA debt service is subject to approval by the City Council, 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 the Downtown Development Authority Debt Service Fund the sum of TWO MILLION SEVEN HUNDRED TWENTY THREE THOUSAND THREE HUNDRED SIXTY DOLLARS ($2,723,360) for payment of debt service on previously issued and outstanding bonds. Section 2. That there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of TWO HUNDRED EIGHTY TWO THOUSAND SEVENTY NINE DOLLARS ($282,079), which amount is hereby authorized for transfer to the City of Fort Collins Capital Leasing Corporation Fund to be used to cover the DDA's one-third share of the lease payment on the Civic Center Parking Structure. Introduced, considered favorably on first reading, and ordered published this 16th day of October, A.D. 2007, and to be presented for Final passage on the 20th day of November, A.D. 2007. May ATTEST: City Clerk Passed and adopted on final reading on the 20th day of November, A.D. 2007 Mayor ATTEST: City Clerk ORDINANCE NO. 117, 2007 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE TRANSFER OF APPROPRIATIONS BETWEEN CAPITAL IMPROVEMENTS WITHIN THE DOWNTOWN DEVELOPMENT AUTHORITY OPERATIONS AND MAINTENANCE FUND RELATED TO THE CITY OF FORT COLLINS, COLORADO, DOWNTOWN DEVELOPMENT AUTHORITY TAXABLE SUBORDINATE TAX INCREMENT REVENUE BONDS, SERIES 2004A WHEREAS, on April 21, 1981, the City of Fort Collins, Colorado, adopted Ordinance 46, 1981, establishing the Fort Collins Downtown Development Authority(the "DDA"); and WHEREAS, the DDA's Plan of Development was approved by the City on September 8, 1981, and established the purpose of the DDA and the types of projects in which the DDA 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,on November 7, 2006, an election was held and electors approved the issuance by the City of up to $150,000,000 in tax increment obligations to finance the costs of development projects of the DDA; and WHEREAS, through the adoption of Ordinance No. 088, 2004, the Council appropriated proceeds from the issuance ofthe City of Fort Collins,Colorado,Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 2004A(the"Bonds"), for expenditure on certain capital improvements in the amount of$6,235,000, and WHEREAS, the DDA requested,and Council appropriated, $1,100,000 for the Fort Collins Museum in Ordinance No. 089, 2004; and WHEREAS, the DDA wishes to fund the Beet Street Cultural Program with $1,000,000 of the Fort Collins Museum funds pending an IGA for the Museum; and WHEREAS, Article V, Section 10,of the Charter of the City of Fort Collins authorizes the CityCouncil to transfer by ordinance any unexpended and unencumbered amount or portion thereof from one fund or capital project to another fund or capital project provided that the purpose for which the funds no longer exist; and WHEREAS, the Board of Directors of the DDA have voted its approval of the aforementioned transfer. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the unexpended appropriated amount of ONE MILLION DOLLARS ($1,000,000) is hereby authorized for transfer from the Downtown Development Authority Operations and Maintenance 2004A DDA Bond Project(Fort Collins Museum) for the operation of Beet Street for fiscal year ending December 31, 2008, knowing that the Fort Collins Museum transfer will be funded in the 2008 bond issuance. Introduced, considered favorably on first reading, and ordered published this 16th day of October, A.D. 2007, and to be presented for final passage on the 20th day of November, A.D. 2007. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 20th day of November, A.D. 2007. Mayor ATTEST: City Clerk