HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/05/2012 - SECOND READING OF ORDINANCE NO. 043, 2012, APPROPRDATE: June 5, 2012
STAFF: Bev Gast
Kelly DiMartino
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 9
SUBJECT
Second Reading of Ordinance No. 043, 2012, Appropriating Prior Year Reserves and Unanticipated Revenue in the
General Fund for Cultural Development and Programming Activities and the Fort Collins Convention and Visitors
Bureau.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on May 15, 2012, appropriates $43,319 for 2012 Cultural
Development and Programming activities (Fort Fund) and $145,407 for the Fort Collins Convention and Visitors Bureau
(FCCVB) from unanticipated revenues and unspent appropriations in the General Fund Lodging Tax Reserves.
Approximately $908,908 in Lodging Tax revenue was collected in 2011 that was distributed to the FCCVB (70%),
Cultural Development and Programming – Fort Fund (25%), and Tourism Programming - Fort Fund (5%). After 2011
expenditures and miscellaneous revenue, there is unanticipated revenue and unspent appropriations of $43,319 for
Cultural Development and Programming -Fort Fund and $145,407 for FCCVB available for activities in 2012.
BACKGROUND / DISCUSSION
Council requested additional information on the breakdown of the requested appropriations:
Lodging Tax 75% 25%
Promote Convention
& Visitor Activities
Promote Cultural Development
& Programming
Convention &
Visitors Bureau
70%
Fort Fund
(Tourism
Programming)
5%
Fort Fund
(Cultural development &
programming)
25% Total
Unanticipated Lodging
Tax 83,236 0 29,727 112,963
Unanticipated Revenue 0 0 5,800 5,800
Unspent Appropriations 62,171 0 7,793 69,964
Total 145,407 0* 43,320 188,727
*Due to a miscalculation by Finance of available reserves reported at the end of 2010 which resulted
in an inaccurately inflated budget and overspending of $9,713 in 2011, no additional appropriations
are being requested for the 5% Tourism Programming in order to balance this error.
The unanticipated Lodging Tax is a result of Lodging Tax being estimated during the budget process. After the year’s
end, and the actual tax collected is known, revisions are made to the appropriations to the Fort Collins Convention and
Visitors Bureau (FCCVB) and Fort Fund. In addition, unanticipated revenue was received by Fort Fund for a grant that
was returned and the remainder is from unspent appropriations that are being requested to be reappropriated.
Attached is a 10 year history of Lodging Tax Revenue Allocation. In 1996, the City initiated a cap of $250,000 plus
an annual adjustment for inflation using the Denver/Boulder CPI on the contract with the FCCVB. Beginning in 2006,
in response to a collaborative effort between the FCCVB and Cultural Resources Board, City Council revisited the
Lodging Tax distribution formula and determined that it was appropriate to allocate the funds in a straightforward
manner whereby the FCCVB received 70% of the Lodging tax collections and the remaining 30% is allocated to the
Cultural Resources Board for distribution through Fort Fund. To meet the Code requirements of the 75%/25%
distribution, a minimum of 5% of the Fort Fund dollars must be used for grants that support events that promote
tourism.
June 5, 2012 -2- ITEM 9
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary - May 15, 2012
(w/o attachments)
2. 10 year History of FCCVB Funding
COPY
COPY
COPY
COPY
ATTACHMENT 1
DATE: May 15, 2012
STAFF: Bev Gast
Kelly DiMartino
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 13
SUBJECT
First Reading of Ordinance No. 043, 2012, Appropriating Prior Year Reserves and Unanticipated Revenue in the
General Fund for Cultural Development and Programming Activities and the Fort Collins Convention and Visitors
Bureau.
EXECUTIVE SUMMARY
This Ordinance appropriates $43,319 for 2012 Cultural Development and Programming (CDP1) activities and $145,407
for the Convention and Visitors Bureau (CVB) from unanticipated revenues and unspent appropriations in the General
Fund Lodging Tax Reserves. Approximately $908,908 in Lodging Tax revenue was collected in 2011 that was
distributed to the CDP (25%), CVB (70%) and Visitor Events (CDP2)(5%). After 2011 expenditures and miscellaneous
revenue, there is unanticipated revenue and unspent appropriations of $43,319 for CDP and $145,407 for CVB
available for activities in 2012.
BACKGROUND / DISCUSSION
Section 25-244 of the City Code requires that 75% of the total lodging tax receipts are to be used for the promotion
of convention and visitor activities and 25% for cultural development and programming activities. Actual revenue
collected is appropriated based on this allocation formula and any excess revenue as well as budget savings are
reserved by these activities in the General Fund balance.
FINANCIAL / ECONOMIC IMPACTS
Visitor Events
CDP1 CDP2 CVB
General Fund Reserve Balance (12/31/10) $ 70,347 $ 3,787 $ 78,480
2011 Lodging Tax Allocation $ 227,227 $ 45,445 $ 636,236
2011 Expenditures & Misc. Revenue -$ 254,255 -$ 49,232 -$ 569,309
General Fund Reserve Balance (12/31/11) $ 43,319 $ 0 $ 145,407
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BOARD / COMMISSION RECOMMENDATION
The City’s Cultural Resources Board reviews applications for these funds and makes recommendations to the City
Council. This fund support events that provide a public benefit to the Fort Collins community, and promotes the
utilization of public accommodations within the City.
ATTACHMENT 2
ORDINANCE NO. 043, 2012
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES AND UNANTICIPATED
REVENUE IN THE GENERAL FUND FOR CULTURAL DEVELOPMENT
AND PROGRAMMING ACTIVITIES AND THE FORT COLLINS
CONVENTION AND VISITORS BUREAU
WHEREAS, Section 25-244 of the City Code requires that lodging tax revenue is to be
allocated as follows: 75% for the promotion of convention and visitor activities and 25% for cultural
development and programming activities; and
WHEREAS, at the end of 2011, a total of $908,908 in Lodging Tax revenues were collected
and lapsed into the General Fund Reserves for lodging taxes; and
WHEREAS, the Lodging Tax funds were distributed in the following amounts to the
following accounts:
• Cultural Development and Programming (CDP1) $ 227,227
• Visitor Events (CDP2) $ 45,445
• Convention and Visitors Bureau (CVB) $ 636,236
WHEREAS, the Cultural Development and Programming (CDP1) Account had prior year
funds and unanticipated revenue in the amount of $43,319 that were not expended in 2011; and
WHEREAS, the Convention and Visitors Bureau (CVB) Account had prior year funds and
unanticipated revenue in the amount of $145,407 that were not expended in 2011; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council to appropriate
by ordinance at any time during the fiscal year such funds for expenditure as may be available from
reserves accumulated in prior years, notwithstanding that such reserves were not previously
appropriated; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council to make
supplemental appropriation 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 revenue 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; and
WHEREAS, the City wishes to appropriate all funds allocated for Cultural Development and
Programming and the Fort Collins Convention and Visitors Bureau.
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 prior year reserves in
the General Fund the total sum of FORTY THREE THOUSAND THREE HUNDRED NINETEEN
DOLLARS ($43,319) for Cultural Development and Programming activities.
Section 2. That there is hereby appropriated for expenditure from prior year reserves in
the General Fund the total sum of ONE HUNDRED FORTY FIVE THOUSAND FOUR
HUNDRED SEVEN DOLLARS ($145,407) for the Fort Collins Conventions and Visitors Bureau.
Introduced, considered favorably on first reading, and ordered published this 15th day of
May, A.D. 2012, and to be presented for final passage on the 5th day of June, A.D. 2012.
_________________________________
Mayor
ATTEST:
_____________________________
Interim City Clerk
Passed and adopted on final reading on the 5th day of June, A.D. 2012.
_________________________________
Mayor
ATTEST:
_____________________________
Interim City Clerk