HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/17/2018 - FIRST READING OF ORDINANCE NO. 052, 2018, APPROPRIAgenda Item 7
Item # 7 Page 1
AGENDA ITEM SUMMARY April 17, 2018
City Council
STAFF
Amanda King, Communications/Public Involvement Director
Vincent Kitch, Cultural Services and Facilities Director
Chris Van Hall, Legal
SUBJECT
First Reading of Ordinance No. 052, 2018, Appropriating Prior Year Reserves and Unanticipated Revenue in
the General Fund for Cultural Development and Programming Activities, Tourism Programming, and
Convention and Visitor Program Services.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate $482,841, of which $242,389 is proposed for 2018 Cultural
Development and Programming Activities (Fort Fund), $26,873 is proposed for 2018 Tourism Programming
(Fort Fund), and $213,579 is proposed for 2018 Convention and Visitors Program activities, from a
combination of unanticipated revenue (Lodging Tax) and prior year reserves (unspent appropriations) in the
General Fund Lodging Tax Reserves.
Lodging taxes are annually collected by the City of Fort Collins for Cultural Development and Tourism
programming activities. Anticipated revenue is projected through each Budgeting for Outcomes (BFO) cycle
and then adjusted annually as needed based on actual collections. Lodging tax revenue collected in 2017 was
$237,967 above projected collections.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Section 25-44 of the City Code requires that 75% of the total lodging tax receipts be used for the promotion of
convention and visitor activities in the City and 25% of receipts be used for cultural development and
programming activities in the City. Actual revenue collected is appropriated based on this allocation formula
and any excess revenue and budget savings are reserved for these activities in the General Fund.
Pursuant to a contract with the Fort Collins Convention and Visitors Bureau (FCCVB), the City has paid a
portion of lodging tax receipts to the FCCVB since 2011 for delivery of convention and visitors programming
services in furtherance of the City Code requirement. The amount due for convention and visitors programming
is appropriated based on prior year receipts and paid annually to FCCVB after the close of the prior tax year.
When actual lodging tax receipts exceed the anticipated amount appropriated for cultural development and
programming activities, the City also appropriates additional funds and adjusts the amount allocated for those
activities in the year following the year in which the tax is collected. Appropriated lodging tax revenues
remaining unspent at the end of the tax year lapse into the General Fund, and may be appropriated the
following year for the same purposes as they were originally appropriated.
Agenda Item 7
Item # 7 Page 2
The actual tax revenue collected during the 2017 tax year, as determined in March 2018, was $237,967 more
than the Lodging tax revenue anticipated and appropriated for expenditure in 2017. Accordingly, upward
adjustments to the 2018 appropriations under Section 25-44 of the City Code are required. In addition, Budget
staff has recommended unspent appropriations for convention and visitor activities and cultural development
and programming activities that lapsed into the General Fund in 2017 be re-appropriated in 2018 for the same
purposes as originally appropriated. These appropriation adjustments are described below.
CITY FINANCIAL IMPACTS
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ORDINANCE NO. 052, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES AND UNANTICIPATED
REVENUE IN THE GENERAL FUND FOR CULTURAL DEVELOPMENT
AND PROGRAMMING ACTIVITIES, TOURISM PROGRAMMING, AND
THE FORT COLLINS CONVENTION AND VISITORS BUREAU
WHEREAS, Section 25-244(b) of the City Code requires that lodging tax revenue is to
be allocated as follows: 75% for the promotion of convention and visitor activities and 25% for
cultural development and programming activities; and
WHEREAS, lodging tax revenue was estimated at $1,282,600 for 2017 and appropriated;
and
WHEREAS, at the end of 2017, a total of $1,520,567 in lodging tax revenues had been
collected and the unspent portions lapsed into the General Fund Reserves for lodging tax
programs and activities; and
WHEREAS, unanticipated lodging tax revenue in the amount of $237,967 held in the
General Fund Reserves is to be appropriated for each of the lodging tax programs and activities
as follows: $59,492 for Cultural Development and Programming; $11,898 for Tourism
Programming; and $166,577 for Fort Collins Convention and Visitors Bureau; and
WHEREAS, unexpended 2017 appropriations of lodging tax revenue in the amount of
$244,874 have lapsed and were returned to the General Fund, and are to be appropriated for
lodging tax programs and activates based on the use specified when they were first appropriated,
as follows: $182,897 for Cultural Development and Programming; $14,975 for Tourism
Programming; and $47,002 for Fort Collins Convention and Visitors Bureau; and
WHEREAS, this Ordinance appropriates the unanticipated lodging tax revenue and the
unexpended 2017 appropriations of lodging tax revenue to make the full payment to the Fort
Collins Convention and Visitors Bureau and the Fort Fund Cultural Development and
Programming in the amount of $482,841; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council to
appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be
available from reserves accumulated in prior years, notwithstanding that such reserves were not
previously appropriated; 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
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WHEREAS, the City Manager has recommended the appropriation described herein and
determined that this appropriation is available and previously unappropriated from the General
Fund and 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; and
WHEREAS, this appropriation benefits public health, safety, and welfare of the citizens
of Fort Collins and serves the public purpose of promoting visitor activities as well as cultural
development and programming activities; and
WHEREAS, the City wishes to appropriate funds allocated for Cultural Development and
Programming, Tourism Programming, and the Fort Collins Convention and Visitors Bureau.
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 expenditure from prior year reserves
in the General Fund the total sum of TWO HUNDRED FORTY-TWO THOUSAND THREE
HUNDRED EIGHTY-NINE DOLLARS ($242,389) for Cultural Development and
Programming activities.
Section 3. That there is hereby appropriated for expenditure from prior year reserves
in the General Fund the total sum of TWENTY-SIX THOUSAND EIGHT HUNDRED
SEVENTY-THREE DOLLARS ($26,873) for Tourism Programming.
Section 4. That there is hereby appropriated for expenditure from prior year reserves
in the General Fund the total sum of TWO HUNDRED THIRTEEN THOUSAND FIVE
HUNDRED SEVENTY-NINE DOLLARS ($213,579) for the Fort Collins Conventions and
Visitors Bureau.
Introduced, considered favorably on first reading, and ordered published this 17th day of
April, A.D. 2018, and to be presented for final passage on the 1st day of May, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 1st day of May, A.D. 2018.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk