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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/15/2015 - SECOND READING OF ORDINANCE NO. 105, 2015, APPROPRAgenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY September 15, 2015 City Council STAFF Wendy Bricher, Financial Coordinator Mike Beckstead, Chief Financial Officer SUBJECT Second Reading of Ordinance No. 105, 2015, Appropriating Unanticipated Revenue in the General Fund to be Remitted to the Fort Collins Housing Authority to Fund Affordable Housing and Related Activities. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on September 1, 2015, refunds the Payment in Lieu of Taxes (PILOT) for public services and facilities received from the Fort Collins Housing Authority in 2014 with respect to a HUD financed Public Housing Program that provides low income rental units. The Authority paid the City of Fort Collins PILOT of $7,271 in 2014 under a previously approved Cooperation Agreement and requests that the City return the PILOT to fund needed affordable housing related activities. 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 returned the PILOT payment to the Authority since 1992. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, September 1, 2015 (w/o attachments) (PDF) 2. Ordinance No. 105, 2015 (PDF) Agenda Item 13 Item # 13 Page 1 AGENDA ITEM SUMMARY September 1, 2015 City Council STAFF Wendy Bricher, Financial Coordinator Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 105, 2015, Appropriating Unanticipated Revenue in the General Fund to be Remitted to the Fort Collins Housing Authority to Fund Affordable Housing and Related Activities. EXECUTIVE SUMMARY The purpose of this item is to return the Payment in Lieu of Taxes (PILOT) for public services and facilities received from the Fort Collins Housing Authority in 2014 with respect to a HUD financed Public Housing Program that provides low income rental units. The Authority paid the City of Fort Collins PILOT of $7,271 in 2014 under a previously approved Cooperation Agreement and requests that the City return the PILOT to fund needed affordable housing related activities. 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 returned the PILOT payment to the Authority since 1992. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION On December 16, 1971, the City and the Authority entered into a Cooperation 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 Resolution No. 1986-177 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 Resolution No. 1992-093 reinstating the requirement that the Authority pay the annual PILOT payment. The change was made to assure compliance with Department of Housing and Urban Development regulations. Since that time, the City has returned the annual PILOT payments to the Housing Authority. Staff recommends that the 2014 PILOT payments of $7,271 be appropriated as unanticipated revenue in the General Fund and remitted to the Authority in accordance with a letter agreement between the City and the Authority requiring the Authority to use the funds for creating or maintaining affordable housing in a manner consistent with the guidelines of the federal Department of Housing and Urban Development. ATTACHMENT 1 Agenda Item 13 Item # 13 Page 2 CITY FINANCIAL IMPACTS The City received unanticipated revenue from the Fort Collins Housing Authority in the amount of $7,271 as 2014 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. ATTACHMENTS 1. Fort Collins Housing Authority Letter, June 24, 2015 (PDF) - 1 - ORDINANCE NO. 105, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE GENERAL FUND TO BE REMITTED 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 $7,271 as a payment in lieu of taxes (“PILOT”) for public services and facilities under a Cooperation Agreement dated December 16, 1971, pertaining to a HUD financed public housing program; and WHEREAS, since at least 1992, the City has remitted such PILOT payments to the Authority; and WHEREAS, the Authority has requested that the 2014 PILOT payments be appropriated by the City Council for return to the Authority to fund much-needed affordable housing related activities and to attend to the housing needs of low-income Fort Collins residents; and WHEREAS, said payment of $7,271 was not projected as a revenue source in the 2014 City budget; and WHEREAS, the City may spend the PILOT revenues as it deems appropriate in accordance with law, including remitting the funds to the Authority if Council determines that such remittal serves a valid public purpose; 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, as a condition of receiving these funds, the City will require the Authority to sign a letter agreement obligating the Authority to spend the funds for creating or maintaining affordable housing in a manner consistent with the guidelines of the federal Department of Housing and Urban Development; 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 - 2 - Fund the sum of SEVEN THOUSAND TWO HUNDRED SEVENTY ONE DOLLARS ($7,271) to be remitted 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 1st day of September, A.D. 2015, and to be presented for final passage on the 15th day of September, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of September, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk