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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/04/2014 - SECOND READING OF ORDINANCE NO. 139, 2014 BEING TAgenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY November 4, 2014 City Council STAFF Jennifer Hensley, Finance Coordinator Matt Robenalt, Executive Director SUBJECT Second Reading of Ordinance No. 139, 2014 Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for Fiscal Year 2015 and Fixing the Mill Levy for the Downtown Development Authority for Fiscal Year 2015. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 21, 2014, sets the Downtown Development Authority (DDA) 2015 Operations and Maintenance Budget amount of $744,084 to be appropriated for fiscal year 2015 for the administrative operations budget, appropriates the 2015 Line of Credit Draw in the amount of $1,000,000, sets the amount of $3,191,396 for debt service payments to be appropriated for fiscal year 2015 and sets the 2015 Mill Levy for the Fort Collins DDA at five (5) mills, unchanged since tax year 2002. The approved Budget becomes the Downtown Development Authority’s financial plan for 2015. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. DDA Boundary map (PDF) 2. First Reading Agenda Item Summary (w/o attachments) (PDF) 3. Ordinance No. 139, 2014 (PDF) Cache La Poudre River ³I ÕZYXW E Vine Dr Riverside Ave N College Ave E Lincoln Ave S Lemay Ave Remington St S College Ave 9th St S Mason St S Howes St E Mulberry St W Laurel St Laporte Ave W Mulberry St N Lemay Ave W Mountain Ave Jefferson St N Mason St N Howes St E Mountain Ave N L e may A v e Smith St E Elizabeth St Mathews St Locust St Peterson St E Myrtle St Stover St Whedbee St Linden St 12th St Maple St Cherry St Conifer St E Plum St W Oak St E Olive St W Olive St W Myrtle St Willow St Buckingham St E Oak St S Meldrum St Hemlock St 1st St Redwood St 3rd St S Whitcomb St 2nd St N Sherwood St W Magnolia St Agenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY October 21, 2014 City Council STAFF Jennifer Hensley, Finance Coordinator Matt Robenalt, Executive Director SUBJECT First Reading of Ordinance No. 139, 2014 Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for Fiscal Year 2015 and Fixing the Mill Levy for the Downtown Development Authority for Fiscal Year 2015. EXECUTIVE SUMMARY The purpose of this item is to set the Downtown Development Authority (“DDA”) 2015 Operations and Maintenance Budget amount of $744,084 to be appropriated for fiscal year 2015 for the administrative operations budget, appropriate the 2015 Line of Credit Draw in the amount of $1,000,000, set the amount of $3,191,396 for debt service payments to be appropriated for fiscal year 2015 and set the 2015 Mill Levy for the Fort Collins DDA at five (5) mills, unchanged since tax year 2002. The approved Budget becomes the Downtown Development Authority’s financial plan for 2015. STAFF RECOMMENDATION The Downtown Development Authority Board of Directors and staff recommend adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Downtown Development Authority (DDA) was created in 1981 with the purpose, according to Colorado state statute, of planning and implementing projects and programs within the boundaries of the DDA. By state statute 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 statute and the Plan of Development the City, on behalf of the DDA, has issued various tax increment bonds, which require debt servicing. The City Council is also required by Section 31-25-807(3)(a)(IV)(B) of the Colorado Revised Statutes to certify to the Larimer County Assessor by August 1st of each calendar year the property tax distribution percentages for all affected governmental entities whose property taxes are to be allocated to the DDA tax increment fund. A resolution will be presented to Council in January for this certification. FINANCIAL / ECONOMIC IMPACTS The Fort Collins Downtown Development Authority is requesting approval of the DDA Operations and Maintenance budget for fiscal year 2015 in the amount of $744,084. It is requesting appropriation of up to $1,000,000 for the 2015 Line of Credit draw. It is also requesting approval of the DDA debt payment commitments in the amount of $3,191,396 for 2015 obligations. ATTACHMENT 2 Agenda Item 3 Item # 3 Page 2 The 2015 Line of Credit draw, whose debt service payment will be made from the debt service fund, is projected to fund up to $1,000,000. Uses: Museum of Discovery $ 500,000 Multi-Year Reimbursement Payments 131,036 Future Public/Private Investments and Programs 368,214 Annual Line of Credit Financing Cost 750 Total $1,000,000 The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments for 2015. BOARD / COMMISSION RECOMMENDATION At its October 9, 2014 meeting, the Downtown Development Authority Board of Directors adopted its proposed budget for 2015 totaling $4,935,480 and determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA. ATTACHMENTS 1. DDA Boundary Map (PDF) 2. Resolution 2014-01 Determining and Fixing the Mill Levy (PDF) 3. Resolution 2014-02 Budget of the Estimated Amounts Required to Pay the Expenses of Conducting Business (PDF) 4. Resolution 2014-03 2015 Revolving Line of Credit (PDF) 5. Resolution 2014-04 for Payment of Debt Service (PDF) - 1 - ORDINANCE NO. 139, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE FOR THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RELATING TO THE ANNUAL APPROPRIATIONS FOR FISCAL YEAR 2015 AND FIXING THE MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2015 WHEREAS, the Fort Collins Downtown Development Authority (the “DDA”) has been duly organized in accordance with the Colorado Revised Statutes (C.R.S) 31-25-804, 1973 as amended; and WHEREAS, on October 9, 2014 DDA Board of Directors (the “DDA Board”), acting under the provisions of Colorado Revised Statutes Section 31-25-816, 1973, as amended, adopted a budget for the fiscal year beginning January 1, 2015 which included appropriation of the 2015 Line of Credit draw, and determined the mill levy necessary to provide for payment during fiscal year 2015 of properly authorized operational and maintenance expenditures to be incurred by the DDA; and WHEREAS, it is the desire of the Council to appropriate the sum of FOUR MILLION NINE HUNDRED THIRTY FIVE THOUSAND FOUR HUNDRED EIGHTY DOLLARS ($4,935,480) in the DDA Operation and Maintenance Fund and the Debt Service Fund for the fiscal year beginning January 1, 2015 and ending December 31, 2015, to be used as follows: DDA Operations & Maintenance $ 744,084 2015 Revolving Line of Credit Draw 1,000,000 DDA Debt Service Fund 3,191,396 $ 4,935,480 WHEREAS, the DDA Board has recommended to the Council a mill levy of five (5) 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 operational and maintenance 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, 2014. 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 SEVEN HUNDRED FORTY FOUR THOUSAND, EIGHTY FOUR DOLLARS ($744,084), to be expended for the authorized purposes of the DDA. - 2 - Section 2. That there is hereby appropriated for expenditure from the Downtown Development Authority 2015 Line of Credit draw the sum of up to ONE MILLION DOLLARS ($1,000,000), to be used to finance DDA projects or programs in accordance with the DDA Plan of Development including the 2015 Museum of Discovery payment and multi-year reimbursement payments. Section 3. That there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of THREE MILLION, ONE HUNDRED NINTY ONE THOUSAND, THREE HUNDRED AND NINETY SIX DOLLARS ($3,191,396), for payment of debt service on previously issued and outstanding bonds, to pay the City’s investment service charge, for payment on the 2015 Line of Credit draw, and to be used to cover the DDA’s one-third share of payment on the Civic Center Parking Structure. Section 4. That the 2015 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, 2014 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 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 21st day of October, A.D. 2014, and to be presented for final passage on the 4th day of November, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 4th day of November, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk N Whitcomb St C a j e tan S t 10th St Canyon Ave O s i a nde r S t Cowan St N Meldrum St S Mason St Jerome St Colorado St Main St Walnut St H o ffm an Mil l Rd P a scal S t O v al D r Endicott St S Sherwood St 11th St Mull e i n D r Sycamore St Bellflower Dr East Dr Frontage Rd E Laurel St Woo d l awn D r Lesser Dr West Dr Pine St E Magnolia St Lilac Ln Duff Dr Lupine Dr Martinez St N Mason St El m St W Plum St Trujillo St Mas o n Ct Rivend a l Dr Lopez Ct Eastdal e D r Poudre River Dr Li n d e n Ce n ter Dr Rembrandt Dr Locust Ct Baum St Kenroy Ct Pine St Frontage Rd E Laurel St E Magnolia St Downtown Development Authority Boundary Parcels DDA Boundary Amended: September 17, 2013 Printed: November 07, 2013 1 inch = 1,320 feet . 0 0.125 0.25 0.5 Miles ATTACHMENT 1