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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/03/2015 - SECOND READING OF ORDINANCE NO. 129, 2015, APPROPRAgenda Item 2 Item # 2 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. 129, 2015, Appropriating Prior Year Reserves in the Downtown Development Authority Fund for Expenditure on Projects and Programs in Fiscal Year 2015 in Accordance with the Downtown Plan of Development. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 20, 2015, appropriates unanticipated revenue from interest earnings in the amount of $13,508 and from project savings in the amount of $63,836 for a total appropriation of $77,344 for use by the Downtown Development Authority. The Downtown Development Authority Board has authorized the expenditure of these funds for various DDA projects and programs in fiscal year 2015. 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. 129, 2015 (PDF) Agenda Item 8 Item # 8 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. 129, 2015, Appropriating Prior Year Reserves in the Downtown Development Authority Fund for Expenditure on Projects and Programs in Fiscal Year 2015 in Accordance with the Downtown Plan of Development. EXECUTIVE SUMMARY The purpose of this item is to appropriate unanticipated revenue from interest earnings in the amount of $13,508 and from project savings in the amount of $63,836 for a total appropriation of $77,344. The Downtown Development Authority (“DDA”) Board has authorized the expenditure of these funds for various DDA projects and programs in fiscal year 2015. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The DDA was created in 1981 with the purpose, according to State statute, of planning and implementing projects and programs within the boundaries of the DDA. The DDA and 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 notes and tax increment bonds. The first issuance of tax increment bonds occurred in 1984 with subsequent issues through 2012. Over the past year, proceeds from DDA TIF revenues that have been appropriated but not spent have accumulated interest earnings. These funds, as well as the project savings, need to be appropriated by City Council for expenditure in fiscal year 2015. The amount of interest earnings to be appropriated at this time is $13,508 and project savings is $63,836. The subject funds of this appropriation have been directed by the DDA Board for the following purposes: 1. Old Town Square Maintenance: The DDA utilizes the City Parks Department for plaza maintenance through an IGA covering fountain upkeep, pressure washing, trash removal, and spring planting among other routine maintenance items. Funding for the Square’s maintenance is a three-way partnership between the DDA, City, and Progressive Old Town Square - the entity owning a majority of the buildings touching the public plaza. 2. Holiday Lights - 2015/2016 Season: The holiday lights program is a successful partnership between the City, DDA, and DBA which features a larger, enhanced display that has been in place since the 2012/2013 season due to this collaborative effort. ATTACHMENT 1 Agenda Item 8 Item # 8 Page 2 All of the projects and programs listed for funding through this appropriation have been approved by the DDA Board of Directors. All approvals by the DDA Board are made contingent upon City Council appropriation of these funds to fulfill the DDA’s commitment to the projects and programs. CITY FINANCIAL IMPACTS The DDA Board has authorized expenditure on the following projects and programs in fiscal year 2015 which will be funded with this appropriation: 1. Old Town Square Maintenance $42,344 2. Holiday Lights - 2015/2016 Season 35,000 $77,344 BOARD / COMMISSION RECOMMENDATION At its April 9 and August 13, 2015 meetings, the Downtown Development Authority Board of Directors approved the appropriation of funds as stated above. ATTACHMENTS 1. DDA Boundary map (PDF) 2. DDA minutes, April 9, 2015 (PDF) 3. DDA minutes, August 13, 2015 (PDF) 4. DDA Resolution 2015-03 (PDF) - 1 - ORDINANCE NO. 129, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE DOWNTOWN DEVELOPMENT AUTHORITY FUND FOR EXPENDITURE ON PROJECTS AND PROGRAMS IN FISCAL YEAR 2015 IN ACCORDANCE WITH THE DOWNTOWN PLAN OF DEVELOPMENT WHEREAS, on April 21, 1981, the City adopted Ordinance No. 046, 1981, establishing the Fort Collins, Colorado Downtown Development Authority (the “DDA”); and WHEREAS, the DDA’s Plan of Development was approved by the City Council on September 8, 1981, and established the purpose of the DDA and the types of projects and programs in which the DDA would participate; and WHEREAS, bond proceeds received from City bonds issued on behalf of the DDA in 2008 and 2010 have accrued interest earnings in the amount of $13,508; and WHEREAS, DDA staff has also identified project savings of $63,836 from bond proceeds currently in reserves; and WHEREAS, on April 9, 2015, and August 13, 2015, the DDA’s Board of Directors voted to recommend to the City Council the appropriation of the above-referenced funds for expenditure on DDA projects and programs as hereinafter provided in fiscal year 2015; and WHEREAS, said projects and programs are authorized in the Downtown Plan of Development and are projects and programs that can be funded with these bond proceeds and with this interest that has accrued from bond proceeds; 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 anticipated revenue as described herein will not cause the total amount appropriated in the DDA Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during fiscal year 2015. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from reserves in the DDA Fund the sum of SEVENTY SEVEN THOUSAND THREE HUNDRED FORTY-FOUR DOLLARS ($77,344) to be used in fiscal year 2015 for the DDA projects and programs stated below: - 2 - Old Town Square Maintenance $42,344 Holiday Lights – 2015/2016 Season 35,000 Total Projects/Programs $77,344 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