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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/01/2011 - SECOND READING OF ORDINANCE NO. 137, 2011, MAKINGDATE: November 1, 2011 STAFF: Matt Robenalt Kathy Cardona AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 12 SUBJECT Second Reading of Ordinance No. 137, 2011, Making Annual Appropriations for the Downtown Development Authority for the Fiscal Year 2012 and Fixing the Mill Levy for Fiscal Year 2012. EXECUTIVE SUMMARY Ordinance No. 137, 2011, unanimously adopted on First Reading on October 18, 2011, sets the Downtown Development Authority 2012 budget amount of $814,380 to be appropriated for fiscal year 2012 for the administrative operations budget; sets the amount of $1,652,346 for debt service payments to be appropriated for fiscal year 2012; and sets the 2012 Mill Levy for the Fort Collins, Downtown Development Authority at five (5) mills, unchanged since 2002. The approved budget becomes the Downtown Development Authority’s financial plan for 2012. This Ordinance does not appropriate funds for projects or programs of the DDA funded with bond proceeds. Examples of projects and programs funded with bond proceeds include annual holiday light display, facade improvements, the enhanced alley annual maintenance costs, ice rink, and participation in the river district improvement projects, etc. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - October 18, 2011 (w/o attachments) 2. Map of the Downtown Development Authority COPY COPY COPY COPY ATTACHMENT 1 DATE: October 18, 2011 STAFF: Matt Robenalt Kathy Cardona AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 19 SUBJECT First Reading of Ordinance No. 137, 2011, Making Annual Appropriations for the Downtown Development Authority for the Fiscal Year 2012 and Fixing the Mill Levy for Fiscal Year 2012. EXECUTIVE SUMMARY The Annual Appropriation Ordinance for the Downtown Development Authority is presented for First Reading. Ordinance No. 137, 2011, sets the Downtown Development Authority 2012 budget amount of $814,380 to be appropriated for fiscal year 2012 for the administrative operations budget; sets the amount of $1,652,346 for debt service payments to be appropriated for fiscal year 2012; and sets the 2012 Mill Levy for the Fort Collins, Downtown Development Authority at five (5) mills, unchanged since 2002. The approved budget becomes the Downtown Development Authority’s financial plan for 2012. This Ordinance does not appropriate funds for projects or programs of the DDA funded with bond proceeds. Examples of projects and programs funded with bond proceeds include annual holiday light display, facade improvements, the enhanced alley annual maintenance costs, ice rink, and participation in the river district improvement projects, etc. BACKGROUND / DISCUSSION The Downtown Development Authority (the “DDA”) was created in 1981 with the purpose, according to State statue, of planning and implementing projects and programs within the boundaries of the DDA. By state statue the purpose of the ad valorem tax levied on all real and personal property in the downtown development district, not to exceed five (5) mills, shall be for the budgeted operations of the authority. The DDA and the 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 statue and the Plan of Development the City, on behalf of the DDA, has issued various tax increment bonds, which require debt servicing. The DDA staff and Budget Committee are very cognizant of the changed revenue environment of the organization and economic conditions, and have made a strong effort to budget conservatively to reflect this climate. FINANCIAL / ECONOMIC IMPACTS The Fort Collins Downtown Development Authority is requesting approval of the DDA Operations and Maintenance budget, for fiscal year 2012, in the amount of $814,380. It is also requesting approval of the DDA debt payment commitments in the amount of $1,652,346 for 2012 obligations. Uses: Personnel Services: $452,768 Contractual Professional Services: 318,114 Purchased Supplies and Commodities: 23,635 Other: 19,863 Total $814,380 The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments for 2012. Uses: Debt Payment: 2012 $1,652,346 COPY COPY COPY COPY October 18, 2011 -2- ITEM 19 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION At its September 8, 2011 meeting, the Downtown Development Authority Board of Directors adopted its proposed budget for 2012 totaling $2,466,726 and determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA. ATTACHMENTS 1. Map of the Downtown Development Authority. 2. Fort Collins Downtown Development Authority Board Resolution 2011-03 Recommending to Council the Determining and Fixing of the Mill Levy of the DDA for the Fiscal Year Ending December 31, 2012 3. Fort Collins Downtown Development Authority Board Resolution 2011-04 Recommending to Council the Budget of the Estimated Amounts Required to Pay the Expenses of Conducting the Business of the DDA for the Fiscal Year Ending December 31, 2012 4. Fort Collins Downtown Development Authority Board Resolution 2011-05 Recommending to Council the Appropriation of $1,368,973 and $283,373 from the DDA Debt Service Fund for Payment of Debt Service and the DDA’s Obligation for the Civic Center Parking Structure for the Fiscal Year Ending December 31, 2012 5. Powerpoint presentation E VINE DR RIVERSIDE AVE SMITH ST E ELIZABETH ST S MASON ST N COLLEGE AVE S LEMAY AVE MATHEWS ST LOCUST ST WHEDBEE ST PETERSON ST E LINCOLN AVE E MYRTLE ST LINDEN ST STOVER ST REMINGTON ST S COLLEGE AVE 12TH ST MAPLE ST E PLUM ST 9TH ST W OAK ST S HOWES ST CHERRY ST E OLIVE ST W OLIVE ST CONIFER ST E OAK ST E MULBERRY ST BUCKINGHAM ST S MELDRUM ST W LAUREL ST W MYRTLE ST LAPORTE AVE HEMLOCK ST WILLOW ST S WHITCOMB ST N LEMAY AVE REDWOOD ST 1ST ST 3RD ST 2ND ST W MAGNOLIA ST N SHERWOOD ST W MULBERRY ST N WHITCOMB ST W MOUNTAIN AVE CA J E TA N ST 10TH ST COWAN ST N MASON ST O S I A ORDINANCE NO. 137, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING ANNUAL APPROPRIATIONS FOR THE DOWNTOWN DEVELOPMENT AUTHORITY FOR THE FISCAL YEAR 2012 AND FIXING THE MILL LEVY FOR FISCAL YEAR 2012 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 8, 2011, 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, 2012 and determined the mill levy necessary to provide for payment during fiscal year 2012 of all properly authorized expenditures to be incurred by the DDA; and WHEREAS, it is the desire of the City Council to appropriate the sum of TWO MLLION, FOUR HUNDRED SIXTY SIX THOUSAND, SEVEN HUNDRED TWENTY SIX DOLLARS ($2,466,726) in the DDA Operation and Maintenance Fund and the Debt Service Fund for the fiscal year beginning January 1, 2012 and ending December 31, 2012, to be used as follows: DDA Operations & Maintenance $ 814,380 DDA Debt Service Fund 1,652,346 $2,466,726 WHEREAS, the DDA Board has recommended to the City Council a mill levy of five mills upon each dollar of assessed valuation on 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(1), C.R.S., requires certification of any tax levy to the Board of County Commissioners no later than December 15, 2011. 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 EIGHT HUNDRED FOURTEEN THOUSAND, THREE HUNDRED AND EIGHTY DOLLARS ($814,380), to be expended for the authorized purposes of the DDA. Section 2. That there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of ONE MILLION, SIX HUNDRED FIFTY TWO THOUSAND, THREE HUNDRED AND FORTY SIX DOLLARS ($1,652,346), for payment of debt service on previously issued and outstanding bonds, to pay the City’s investment service charge, and to be used to cover the DDA’s one-third share of payment on the Civic Center Parking Structure. Section 3. That the 2012 mill levy rate for the taxation upon each dollar of the assessed valuation of all taxable property within the DDA District as of December 31, 2011 shall be five (5) mills, which levy represents the amount of taxes for the District 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 18th day of October, A.D. 2011, and to be presented for final passage on the 1st day of November, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 1st day of November, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk N DE R ST N HOWES ST JEFFERSON ST J E R O M E S T MAIN ST COLORADO ST HO F FM A N MI L L RD P A S C A L S T WALNUT ST O V A L D R S SHERWOOD ST E MOUNTAIN AVE ENDICOTT ST 11TH ST SYCAMORE ST MU L L E I N DR EAST DR E LAUREL S T FRONTAGE RD PINE ST WOO D L AW N DR LESSER DR BEL L F L OWE R D R WEST DR OLD MAIN DR E MAGNOLIA ST LILAC LN MONTEZUMA FULLER ALLEY PENNOCK PL MARTINEZ ST ELM S T TENNEY CT LINCOLN AVE LOPEZ CT EASTDALE DR TRUJILLO ST LINDE N C ENTER DR BAUM ST S SHERWOOD ST E LAUREL ST FRONTAGE RD N LEMAY A V E N MASON ST Downtown Development Authority Boundary Map Legend Parcels Downtown Development Authority Boundary 1 inch = 1,320 feet . Amended: April 1, 2008 Printed: 1/20/2011 ATTACHMENT 2