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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/01/2016 - FIRST READING OF ORDINANCE NO. 118, 2016, BEING THAgenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY November 1, 2016 City Council STAFF Matt Robenalt, Executive Director Kristy Klenk, Financial Coordinator SUBJECT First Reading of Ordinance No. 118, 2016, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2017 and Fixing Mill Levy for the Downtown Development Authority for Fiscal Year 2017. EXECUTIVE SUMMARY The purpose of this item is to set the Downtown Development Authority ("DDA") Budget. The following amounts will be appropriated: DDA Public/Private Investments & Programs $1,665,408 DDA Operations & Maintenance $ 835,283 Revolving Line of Credit Draws $2,450,000 DDA Debt Service Fund $4,938,036 The Ordinance sets the 2017 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 2017. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The DDA was created in 1981 with the purpose, according to Colorado 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 statute and the Plan of Development, the City, on behalf of the DDA, has issued various tax increment bonds, which require debt servicing. CITY FINANCIAL IMPACTS The DDA is requesting approval of the DDA Public/Private Investments and Programs budget for fiscal year 2017 in the amount of $1,665,408 to fund the DDA’s fulfillment of obligations it has entered into or will enter into in furtherance of the Plan of Development, and DDA Operation and Maintenance budget for fiscal year 2017 in the amount of $835,283. It is requesting appropriation of up to $2,450,000 for the 2017 Line of Credit draws. It is also requesting approval of the DDA debt payment commitments in the amount of $4,938,036 for 2017 obligations. Agenda Item 4 Item # 4 Page 2 Uses: Alley Operations $122,678 Alley Enhancement/Construction/Design (2 new alleys) 536,000 Warehouse Operations 127,340 Façade Grant Program 98,456 Old Town Square Operations 216,246 Downtown River District Improvements - Jefferson St 435,000 Other Public/Private Investments & Programs 129,688 Total $1,665,408 The 2017 Operations and Maintenance budget is projected as follows: Uses: Personnel Services $515,611 Contractual Professional Services 273,273 Purchased Supplies and Commodities 26,026 Other 20,373 Total $835,283 The 2017 Line of Credit draws, whose debt service payment will be made from the debt service fund, is projected to fund up to $2,450,000. Uses: Museum of Discovery - 2017 Payment $ 250,000 Multi-Year Reimbursement Payments 420,939 Whitewater Park Commitment 27,300 Project Management Fees 70,000 Capital Asset Maintenance Obligations 358,094 Future Public/Private Investments & Programs 1,323,667 Total $2,450,000 The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments for 2017. Uses: Debt Payment: 2017 $4,938,036 BOARD / COMMISSION RECOMMENDATION At its September 8, 2016 meeting, the Downtown Development Authority Board of Directors adopted its proposed budget for 2017 totaling $9,888,727 and determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA. ATTACHMENTS 1. DDA Boundary map (PDF) 2. DDA Resolution 2016-02 Determining and Fixing the Mill Levy (PDF) 3. DDA Resolution 2016-03 Approving and Recommending the 2017 Budget (PDF) 4. DDA Resolution 2016-04 Appropriation of the 2017 Line of Credit Draw Service (PDF) 5. DDA Resolution 2016-05 Appropriation for Debt Service (PDF) 6. DDA Resolution 2016-06 Appropriation of Amounts Required to Pay Public-Private Investments and Programs (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 Lupine Dr N Sherwood St ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 4 ATTACHMENT 5 ATTACHMENT 6 -1- ORDINANCE NO. 118, 2016 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 THE FISCAL YEAR 2017 AND FIXING THE MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2017 WHEREAS, the Fort Collins Downtown Development Authority (the “DDA”) has been duly organized in accordance with the C.R.S. Section 31-25-804; and WHEREAS, on September 8, 2016, the DDA Board of Directors (the “DDA Board”), acting under the provisions of C.R.S. Section 31-25-816, adopted a budget for the fiscal year beginning January 1, 2017, and determined the mill levy necessary to provide for payment during fiscal year 2017 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 NINE MILLION EIGHT HUNDRED EIGHTY-EIGHT THOUSAND SEVEN HUNDRED TWENTY-SEVEN DOLLARS ($9,888,727) from the DDA Operation and Maintenance Fund and the DDA Debt Service Fund for the fiscal year beginning January 1, 2017 and ending December 31, 2017, to be used as follows: DDA Public/Private Investments & Programs (O&M Fund) $1,665,408 DDA Operations & Maintenance (O&M Fund) 835,283 2017 Revolving Line of Credit Draws 2,450,000 DDA Debt Service Fund 4,938,036 Total $9,888,727 WHEREAS, the DDA Board has recommended to the Council that pursuant to C.R.S. Section 31-25-817 the Council set 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 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, C.R.S. Section 39-5-128(1) requires certification of any tax levy to the Larimer County Board of County Commissioners no later than December 15, 2016. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated for fiscal year 2017 for expenditure from DDA Operation and Maintenance Fund for the Downtown Development Authority Public/Private Investments and Programs the sum of ONE MILLION SIX HUNDRED SIXTY- -2- FIVE THOUSAND FOUR HUNDRED EIGHT DOLLARS ($1,665,408), to be expended to fund the DDA’s payment of the obligations it has entered into or will enter into in furtherance of the DDA’s approved plan of development. Section 3. That there is also hereby appropriated for fiscal year 2017 for expenditure from the DDA Operation and Maintenance Fund for the Downtown Development Authority Operations and Maintenance the sum of EIGHT HUNDRED THIRTY-FIVE THOUSAND TWO HUNDRED EIGHTY-THREE DOLLARS ($835,283), to be expended for the authorized purposes of the DDA. Section 4. That there is hereby appropriated for fiscal year 2017 for expenditure from the Downtown Development Authority 2017 Line of Credit draws the sum of up to TWO MILLION FOUR HUNDRED FIFTY THOUSAND DOLLARS ($2,450,000), to be used to finance DDA projects or programs in accordance with the DDA plan of development including the 2017 Museum of Discovery payment, multi-year reimbursement payments, Whitewater Park commitment, and capital asset maintenance obligations. Section 5. That there is hereby appropriated for fiscal year 2017 for expenditure from the Downtown Development Authority Debt Service Fund the sum of FOUR MILLION NINE HUNDRED THIRTY-EIGHT THOUSAND THIRTY-SIX DOLLARS ($4,938,036), for payment of debt service on previously issued and outstanding bonds, to pay the City’s investment service charge, for payment on the 2017 Line of Credit draws, and to be used to cover the DDA’s one-third share of payment on the Civic Center Parking Structure. Section 6. That the DDA’s 2017 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, 2016 shall be five (5) mills, which levy represents the amount of taxes necessary to provide for payment during fiscal year 2017 of all properly authorized operational and maintenance expenditures to be incurred by the DDA, as appropriated herein. 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 1st day of November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk -3- Passed and adopted on final reading on the 15th day of November, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk W Magnolia St 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 N ew V i n e D r 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 Blue Spruce 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 Martinez St N Mason St E l 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 La Garita Ln Baum St Sangre De Cristo Ln Kenroy Ct E Laurel St Pine St Frontage Rd E Magnolia St Downtown Development Authority Boundary Parcels DDA Boundary Amended: September 17, 2013 Printed: January 01, 2014 1 inch = 1,320 feet . 00.0.125 250.5 Miles ATTACHMENT 1