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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/03/2015 - SECOND READING OF ORDINANCE NO. 128, 2015, BEING TAgenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Matt Robenalt, Executive Director Jennifer Hensley, Finance Coordinator SUBJECT Second Reading of Ordinance No. 128, 2015, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2016 and Fixing Mill Levy for the Downtown Development Authority for Fiscal Year 2016. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 20, 2015, sets the Downtown Development Authority (DDA) Budget. The following amounts will be appropriated: DDA Public/Private Investments & Programs $ 725,394 DDA Operations & Maintenance $ 791,717 Revolving Line of Credit Draws $ 2,100,000 DDA Debt Service Fund $ 4,521,012 The Ordinance sets the 2016 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 2016. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 20, 2015 (w/o attachments) (PDF) 2. Ordinance No. 128, 2015 (PDF) Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY October 20, 2015 City Council STAFF Matt Robenalt, Executive Director Jennifer Hensley, Finance Coordinator SUBJECT First Reading of Ordinance No. 128, 2015, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2016 and Fixing Mill Levy for the Downtown Development Authority for Fiscal Year 2016. 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 $ 725,394 DDA Operations & Maintenance $ 791,717 Revolving Line of Credit Draws $ 2,100,000 DDA Debt Service Fund $ 4,521,012 The Ordinance sets the 2016 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 2016. 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 statue 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 2016 in the amount of $725,394 and DDA Operations and Maintenance budget for fiscal year 2016 in the amount of $791,717. It is requesting appropriation of up to $2,100,000 for the 2016 Line of Credit draws. It is also requesting approval of the DDA debt payment commitments in the amount of $4,521,012 for 2016 obligations. ATTACHMENT 1 Agenda Item 7 Item # 7 Page 2 Uses: Alley Operations $ 95,143 Warehouse Operations 137,430 Façade Grant Program 105,669 Old Town Square Operations 295,731 Other Public/Private Investments & Programs 91,421 Total $ 725,394 The 2016 Operations and Maintenance budget is projected as follows: Uses: Personnel Services $ 468,110 Contractual Professional Services 276,855 Purchased Supplies and Commodities 27,397 Other 19,355 Total $ 791,717 The 2016 Line of Credit draws, whose debt service payment will be made from the debt service fund, is projected to fund up to $2,100,000. Uses: Museum of Discovery – 2016 Payment $ 500,000 Multi-Year Reimbursement Payments 302,352 Whitewater Park Commitment 27,300 Capital Asset Maintenance Obligations 131,000 Future Public/Private Investments & Programs 1,139,348 Total $2,100,000 The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments for 2016. Uses: Debt Payment: 2016 $4,521,012 BOARD / COMMISSION RECOMMENDATION At its October 8, 2015 meeting, the Downtown Development Authority Board of Directors adopted its proposed budget for 2016 totaling $8,138,123 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 2015-06, Determining and Fixing the Mill Levy (PDF) 3. DDA Resolution 2015-07, Determining and Recommending the 2016 Budget (PDF) 4. DDA Resolution 2015-08 Appropriation of the 2016 Line of Credit Draw Service (PDF) 5. DDA Resolution 2015-09, Appropriation for Debt Service (PDF) 6. DDA Resolution 2015-10, Appropriation of amounts required to pay Public/Private Investments and Programs (PDF) - 1 - ORDINANCE NO. 128, 2015 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 2016 AND FIXING THE MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2016 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 October 8, 2015, 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, 2016, and determined the mill levy necessary to provide for payment during fiscal year 2016 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 EIGHT MILLION ONE HUNDRED THIRTY-EIGHT THOUSAND ONE HUNDRED TWENTY-THREE DOLLARS ($8,138,123) from the DDA Operation and Maintenance Fund and the DDA Debt Service Fund for the fiscal year beginning January 1, 2016 and ending December 31, 2016, to be used as follows: DDA Public/Private Investments & Programs (O&M Fund) $ 725,394 DDA Operations & Maintenance (O&M Fund) 791,717 2016 Revolving Line of Credit Draws 2,100,000 DDA Debt Service Fund 4,521,012 Total $8,138,123 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, 2015. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, as follows: Section 1. That there is hereby appropriated for fiscal year 2016 for expenditure from DDA Operation and Maintenance Fund for the Downtown Development Authority Public/Private Investments and Programs the sum of SEVEN HUNDRED TWENTY-FIVE THOUSAND THREE HUNDRED NINETY-FOUR DOLLARS ($725,394), to be expended for the authorized purposes of the DDA. That there is also hereby appropriated for fiscal year 2016 for expenditure from the DDA Operation and Maintenance Fund for the Downtown - 2 - Development Authority Operations and Maintenance the sum of SEVEN HUNDRED NINETY ONE THOUSAND SEVEN HUNDRED SEVENTEEN DOLLARS ($791,717), to be expended for the authorized purposes of the DDA. Section 2. That there is hereby appropriated for fiscal year 2016 for expenditure from the Downtown Development Authority 2016 Line of Credit draws the sum of up to TWO MILLION ONE HUNDRED THOUSAND DOLLARS ($2,100,000), to be used to finance DDA projects or programs in accordance with the DDA Plan of Development including the 2016 Museum of Discovery payment, multi-year reimbursement payments, Whitewater Park commitment, and capital asset maintenance obligations. Section 3. That there is hereby appropriated for fiscal year 2016 for expenditure from the Downtown Development Authority Debt Service Fund the sum of FOUR MILLION FIVE HUNDRED TWENTY ONE THOUSAND TWELVE DOLLARS ($4,521,012), for payment of debt service on previously issued and outstanding bonds, to pay the City’s investment service charge, for payment on the 2016 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 4. That the DDA’s 2016 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, 2015 shall be five (5) mills, which levy represents the amount of taxes necessary to provide for payment during fiscal year 2016 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 20th day of October, A.D. 2015, and to be presented for final passage on the 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 3rd day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk