Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/06/2012 - FIRST READING OF ORDINANCE NO. 119, 2012, APPROPRIDATE: November 6, 2012 STAFF: Darin Atteberry AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 13 SUBJECT First Reading of Ordinance No. 119, 2012, Appropriating Unanticipated Revenue in the General Fund to the Fort Collins Housing Authority to Fund Affordable Housing and Related Activities. EXECUTIVE SUMMARY The Fort Collins Housing Authority paid the City of Fort Collins $15,457 as the 2010 and 2011 payments for public services and facilities. The Authority requests that the City refund the Payment in Lieu of Taxes (PILOT) to fund sorely needed affordable housing-related activities and to attend to the low-income housing needs of Fort Collins residents. Resolution 1992-093 reinstated the requirement that the Authority make annual PILOT payments to the City. The City may spend the PILOT revenues as it deems appropriate in accordance with law, including remitting the funds to the Authority if the Council determines that such remittal serves a valid public purpose. The Council has remitted the PILOT payment to the Authority since 1992. BACKGROUND / DISCUSSION On December 16, 1971, the City and the Authority entered into a Cooperative Agreement which provided that the Authority must make annual PILOT payments to the City for the public services and facilities furnished by the City. In 1986, upon request of the Authority, the City Council adopted a resolution which relieved the Authority of its obligation to make the PILOT payments. Based on that resolution, the Authority did not make PILOT payments from 1987 through 1990. The Authority also received a refund from the City of PILOT payments for the years 1984, 1985 and 1986. In 1992, the City Council approved a change in the Cooperative Agreement to reinstate the requirement that the Authority pay the annual PILOT payment. The change was done to clarify that PILOT payments are owed to the City and to avoid the possibility that the Department of Housing and Urban Development might require the Authority to return the PILOT payments to the federal government. Since that time, the City has refunded the annual PILOT payments to the Housing Authority. Staff recommends that the 2010 and 2011 PILOT payments of $15,457 be appropriated as unanticipated revenue in the General Fund and remitted to the Authority with the recommendation that the Authority use the funds in the manner consistent with HUD guidelines. The intended use for the funds is affordable housing and related activities. FINANCIAL / ECONOMIC IMPACTS The City received unanticipated revenue from the Fort Collins Housing Authority in the amount of $15,457.00 as 2010 and 2011 payments for public services and facilities. The revenue was placed in the General Fund. This Ordinance will return the funds to the Housing Authority to be used for affordable housing and related activities. 2010 PILOT $ 7,966 2011 PILOT $ 7,491 $15,457 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. November 6, 2012 -2- ITEM 13 ATTACHMENTS 1. Letter from the Fort Collins Housing Authority, August 1, 2012. ORDINANCE NO. 119, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE GENERAL FUND TO THE FORT COLLINS HOUSING AUTHORITY TO FUND AFFORDABLE HOUSING AND RELATED ACTIVITIES WHEREAS, the City has received a payment from the Fort Collins Housing Authority (the “Authority”) of $15,457 in satisfaction of its 2010 and 2011 payments in lieu of taxes (“PILOTs”); and WHEREAS, the Authority has requested that the 2010 and 2011 PILOT payments be appropriated by the City Council for expenditure by the Authority to fund affordable housing related activities and to attend to the housing needs of low-income Fort Collins residents; and WHEREAS, said payment of $15,457 was not projected as a revenue source in the 2012 City budget; and WHEREAS, the City Council has determined that the provision of affordable housing serves an important public purpose and is an appropriate use of these funds; 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 Authority PILOT payment 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. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from unanticipated revenue in the General Fund the sum of FIFTEEN THOUSAND FOUR HUNDRED FIFTY SEVEN DOLLARS ($15,457) to the Fort Collins Housing Authority to fund affordable housing and related activities for Fort Collins residents consistent with the Federal Department of Housing and Urban Development guidelines. Introduced, considered favorably on first reading, and ordered published this 6th day of November, A.D. 2012, and to be presented for final passage on the 20th day of November, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 20th day of November, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk