HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/06/2018 - FIRST READING OF ORDINANCE NO. 127, 2018, BEING THAgenda Item 5
Item # 5 Page 1
AGENDA ITEM SUMMARY November 6, 2018
City Council
STAFF
Matt Robenalt, Executive Director
Kristy Klenk, Financial Coordinator
John Duval, Legal
SUBJECT
First Reading of Ordinance No. 127, 2018, Being the Annual Appropriation Ordinance for the Fort Collins
Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2019 and Fixing
Mill Levy for the Downtown Development Authority for Fiscal Year 2019.
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 $3,470,849
DDA Operations & Maintenance $ 809,787
Revolving Line of Credit Draws $4,000,000
DDA Debt Service Fund $6,225,522
The Ordinance sets the 2019 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 2019.
STAFF RECOMMENDATION
Staff recommends 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
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 DDA’s approved 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
2019 in the amount of $3,470,849 and DDA Operation and Maintenance budget for fiscal year 2019 in the
amount of $809,787. It is requesting appropriation of up to $4,000,000 for the 2019 Line of Credit draws. It is
also requesting approval of the DDA debt payment commitments in the amount of $6,225,522 for 2019
obligations.
Agenda Item 5
Item # 5 Page 2
The 2019 Public/Private Investments and Programs budget is projected as follows:
Uses:
Alley Operations $ 263,871
Alley Enhancement/Construction/Design 1,523,433
Warehouse Operations 23,142
Façade Grant Program 165,518
Old Town Square Operations 251,924
Downtown River District Improvements - Jefferson St 435,000
Whitewater Park 27,300
Elks Lot Concept Study & Pre-Development 540,982
Gateway Entrances 75,000
Jack Benny Handprint Restoration 14,409
Other Public/Private Investments & Programs 150,270
Total $3,470,849
The 2019 Operations and Maintenance budget is projected as follows:
Uses:
Personnel Services $516,441
Contractual Professional Services 244,519
Purchased Supplies and Commodities 29,076
Other 19,751
Total $809,787
The 2019 Line of Credit draws, whose debt service payment will be made from the debt service fund, is
projected to fund up to $4,000,000.
Uses:
Old Firehouse Alley Parking Garage IGA Payment $ 300,000
Multi-Year Reimbursement Payments 531,656
Capital Asset Replacement Reserve 188,700
Capital Asset Maintenance Obligations 504,730
Future Public/Private Investments & Programs 2,474,914
Total $4,000,000
The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments
for 2019.
Uses:
Debt Payment: 2019 $6,225,522
BOARD / COMMISSION RECOMMENDATION
At its September 13, 2018, meeting, the Downtown Development Authority Board of Directors adopted its
proposed budget for 2019 totaling $14,506,158 and determined the mill levy necessary to provide for payment
of administrative costs incurred by the DDA.
ATTACHMENTS
1. Boundary Map (PDF)
2. Resolution 2018-03 Determining and Fixing the Mill Levy (PDF)
3. Resolution 2018-04 Determining and Recommending the 2019 Budget (PDF)
4. Resolution 2018-05 Appropriation of the 2019 Line of Credit Draw Service (PDF)
5. Resolution 2018-06 Appropriation for Debt Service (PDF)
6. Resolution 2018-07 Appropriation of Public-Private Investments & Programs (PDF)
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ATTACHMENT 2
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ATTACHMENT 5
ATTACHMENT 6
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ORDINANCE NO. 127, 2018
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 2019 AND FIXING THE
MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY
FOR FISCAL YEAR 2019
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 13, 2018, DDA Board of Directors (the “DDA Board”),
acting under the provisions of Colorado Revised Statutes (“C.R.S.”) Section 31-25-816, adopted
a proposed and recommended DDA budget for the fiscal year beginning January 1, 2019, as
reflected in DDA Board Resolutions 2018-04, 2018-05, 2018-06 and 2018-07, (the “Budget”)
and determined the mill levy necessary to provide for payment during fiscal year 2019 of
properly authorized operational and maintenance expenditures to be incurred by the DDA; and
WHEREAS, it is the desire of the Council of the City of Fort Collins (the “City Council”)
to appropriate the sum of FOURTEEN MILLION, FIVE HUNDRED SIX THOUSAND, ONE
HUNDRED FIFTY-EIGHT DOLLARS ($14,506,158) from the DDA Operation and
Maintenance Fund and the DDA Debt Service Fund for the fiscal year beginning January 1, 2019
and ending December 31, 2019, to be used as follows;
DDA Public/Private Investments & Programs (O&M Fund) $3,470,849
DDA Operations & Maintenance (O&M Fund) 809,787
2019 Revolving Line of Credit Draws 4,000,000
DDA Debt Service Fund 6,225,522
Total $14,506,158
WHEREAS, the DDA Board, as reflected in DDA Board Resolution 2018-03, has
recommended to the City Council that pursuant to C.R.S. Section 31-25-817 the City 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 2019 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 this mill levy to the
Larimer County Board of County Commissioners no later than December 15, 2018.
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.
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Section 2. That the City Council hereby approves the Budget as provided in C.R.S.
Section 31-25-816(1).
Section 3. That there is hereby appropriated for fiscal year 2019 for expenditure from
the DDA Operation and Maintenance Fund for the Downtown Development Authority
Public/Private Investments and Programs the sum of THREE MILLION, FOUR HUNDRED
SEVENTY THOUSAND, EIGHT HUNDRED FORTY-NINE DOLLARS ($3,470,849), to be
expended to fund the payment of the DDA-related obligations that have been entered into or will
be entered into in furtherance of the DDA’s approved plan of development.
Section 4. That there is also hereby appropriated for fiscal year 2019 for expenditure
from the DDA Operation and Maintenance Fund for the Downtown Development Authority
Operation and Maintenance the sum of EIGHT HUNDRED NINE THOUSAND, SEVEN
HUNDRED EIGHTY-SEVEN DOLLARS ($809,787), to be expended for the authorized
purposes of the DDA.
Section 5. That there is hereby appropriated for fiscal year 2019 for expenditure from
the Downtown Development Authority 2019 Line of Credit draws the sum of up to FOUR
MILLION DOLLARS ($4,000,000), to be used to finance DDA projects or programs in
accordance with the DDA approved plan of development including the multi-year
reimbursement payments, and capital asset maintenance obligations.
Section 6. That there is hereby appropriated for the fiscal year 2019 for expenditure
from the Downtown Development Authority Debt Service Fund the sum of SIX MILLION,
TWO HUNDRED TWENTY-FIVE THOUSAND, FIVE HUNDRED TWENTY-TWO
DOLLARS ($6,225,522), for payment of debt service on previously issued and outstanding
bonds, to pay the City’s investment service charge, and for payment on the 2019 Line of Credit
draws.
Section 7. That the DDA’s mill levy rate for the taxation upon each dollar of the
assessed valuation of all taxable property within the DDA District shall be five (5) mills to be
imposed on the assessed value of such property as set by state law for property taxes payable in
2019, which levy represents the amount of taxes necessary to provide for payment during fiscal
year 2019 of all properly authorized operational and maintenance expenditures to be incurred by
the DDA, as appropriated herein. The City Clerk shall certify said mill levy to the County
Assessor and the Board of County Commissioners of Larimer County, Colorado, no later than
December 15, 2018.
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Introduced, considered favorably on first reading, and ordered published this 6th day of
November, A.D. 2018, and to be presented for final passage on the 20th day of November, A.D.
2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 20th day of November, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Downtown Development Authority Boundary
Parcels
DDA Boundary Printed: October 01, 2017
1 inch = 1,320 feet
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0 0.125 0.25 0.5 Miles Amended: March 7, 2017
ATTACHMENT 1