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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/15/2019 - FIRST READING OF ORDINANCE NO. 122, 2019, BEING THAgenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY October 15, 2019 City Council STAFF Matt Robenalt, Executive Director Kristy Klenk, Financial Coordinator John Duval, Legal SUBJECT First Reading of Ordinance No. 122, 2019, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2020 and Fixing Mill Levy for the Downtown Development Authority for Fiscal Year 2020. 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 and Programs $3,918,409 DDA Operations & Maintenance $ 959,165 Revolving Line of Credit Draws $6,400,000 DDA Debt Service Fund $8,256,548 The Ordinance sets the 2020 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 2020. 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 statute, of planning and implementing projects and programs within the boundaries of the DDA. By state statute 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 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 2020 in the amount of $3,918,409 and DDA Operation and Maintenance budget for fiscal year 2020 in the amount of $959,165. It is requesting appropriation of up to $6,400,000 for the 2020 Line of Credit draws. It is also requesting approval of the DDA debt payment commitments in the amount of $8,256,548 for 2020 obligations. Agenda Item 6 Item # 6 Page 2 Uses: Alley Operations $ 106,870 Alley Capital Reserve Replacement 159,048 Downtown Wayfinding 40,000 Elks Lot Pre-Development 1,028,034 Elks Lot Construction Capital 1,839,941 Façade Grant Program 315,518 Gateway Entrances 55,000 Nighttime Economy Economic Impact Study 35,000 Old Town Square Operations 28,152 Old Town Square Capital Reserve Replacement 70,078 Urban Micro-Space Design Plan 105,814 Warehouse Operations 15,220 Other Public/Private Investments & Programs 119,734 Total $3,918,409 The 2020 Operations and Maintenance budget is projected as follows: Uses: Personnel Services $642,502 Contractual Professional Services 270,902 Purchased Supplies and Commodities 22,367 Other 23,394 Total $959,165 The 2020 Line of Credit draws, whose debt service payment will be made from the debt service fund, is projected to fund up to $6,400,000. Uses: Old Firehouse Alley Parking Garage IGA Payment $ 300,000 Multi-Year Reimbursement Payments 621,361 Project Management Fees 111,092 Capital Asset General Maintenance 551,400 Capital Asset Reserve 186,058 Capital Asset Reserve & Replacement Annual Program 70,150 Future Public/Private Investments & Programs 4,559,939 Total $6,400,000 The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments for 2020. Uses: Debt Payment: 2020 $8,256,548 BOARD / COMMISSION RECOMMENDATION At its September 12, 2019 meeting, the Downtown Development Authority Board of Directors adopted its proposed budget for 2020 totaling $19,534,122 and determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA. Agenda Item 6 Item # 6 Page 3 ATTACHMENTS 1. Boundary Map (PDF) 2. DDA Resolution 2019-03 Determining and Fixing the Mill Levy (PDF) 3. DDA Resolution 2019-04 Determining and Recommending the 2020 Budget (PDF) 4. DDA Resolution 2019-05 Appropriation of the 2020 Line of Credit Draw Service (PDF) 5. DDA Resolution 2019-06 Appropriation for Debt Service (PDF) 6. DDA Resolution 2019-07 Appropriation of Public-Private Investments & Programs (PDF) Cache La Poudre River ³I ÕZYXW E Vine Dr Riverside Ave N College Ave S Lemay Ave S College Ave 9th St E Lincoln Ave S Mason St S Howes St E Mulberry St W Laurel St Laporte Ave Remington St W Mulberry St N Lemay Ave W Mountain Ave Jefferson St N Mason St N Howes St E S un i g a R d E Mountain Ave Remington St N L e may A v e Smith St E Elizabeth St Mathews St Peterson St Locust St E Myrtle St Stover St Whedbee St Linden St 12th St Maple St Cherry St Conifer St E Plum St W Oak St E Olive St W Olive St Willow St W Myrtle St Buckingham St E Oak St ATTACHMENT 2 ATTACHMENT 3 ATTACHMENT 4 ATTACHMENT 5 ATTACHMENT 6 -1- ORDINANCE NO. 122, 2019 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 2020 AND FIXING THE MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2020 WHEREAS, the Fort Collins Downtown Development Authority (the “DDA”) has been duly organized in accordance with the Colorado Revised Statutes (“C.R.S.”) Section 31-25-804; and WHEREAS, on September 12, 2019, DDA Board of Directors (the “DDA Board”), acting under the provisions of C.R.S. Section 31-25-816, adopted a proposed and recommended DDA budget for the fiscal year beginning January 1, 2020, as reflected in DDA Board Resolutions 2019-04, 2019-05, 2019-06 and 2019-07 (the “Budget”), and determined the mill levy necessary to provide for payment during fiscal year 2020 of properly authorized operational and maintenance expenditures to be incurred by the DDA; and WHEREAS, it is the desire of the City Council to appropriate the sum of NINETEEN MILLION, FIVE HUNDRED THIRTY-FOUR THOUSAND, ONE HUNDRED TWENTY- TWO DOLLARS ($19,534,122) from the DDA Operation and Maintenance Fund and the DDA Debt Service Fund for the fiscal year beginning January 1, 2020, and ending December 31, 2020, to be used as follows; DDA Public/Private Investments & Programs (O&M Fund) $3,918,409 DDA Operations & Maintenance (O&M Fund) 959,165 2020 Revolving Line of Credit Draws 6,400,000 DDA Debt Service Fund 8,256,548 Total $19,534,122 WHEREAS, the DDA Board, as reflected in DDA Board Resolution 2019-03, 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, unchanged since 2002, 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 2020 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, 2019. 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. -2- Section 2. That the City Council hereby approves the Budget established under C.R.S. Section 31-25-816(1). Section 3. That there is hereby appropriated for fiscal year 2020 for expenditure from the DDA Operation and Maintenance Fund for the Downtown Development Authority Public/Private Investments and Programs the sum of THREE MILLION NINE HUNDRED EIGHTEEN THOUSAND FOUR HUNDRED NINE DOLLARS ($3,918,409), 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 2020 for expenditure from the DDA Operation and Maintenance Fund for the Downtown Development Authority Operation and Maintenance the sum of NINE HUNDRED FIFTY-NINE THOUSAND ONE HUNDRED SIXTY-FIVE DOLLARS ($959,165), to be expended for the authorized purposes of the DDA. Section 5. That there is hereby appropriated for fiscal year 2020 for expenditure from the Downtown Development Authority 2020 Line of Credit draws the sum of up to SIX MILLION FOUR HUNDRED THOUSAND DOLLARS ($6,400,000), to be used to finance DDA projects or programs in accordance with the DDA 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 2020 for expenditure from the Downtown Development Authority Debt Service Fund the sum of EIGHT MILLION TWO HUNDRED FIFTY-SIX THOUSAND FIVE HUNDRED FORTY-EIGHT DOLLARS ($8,256,548), for payment of debt service on previously issued and outstanding bonds, and for payment on the 2020 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 2020, which levy represents the amount of taxes necessary to provide for payment during fiscal year 2020 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, 2019. -3- Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2019, and to be presented for final passage on the 5th day of November, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2019. __________________________________ Mayor ATTEST: _______________________________ City Clerk S Meldrum St Hemlock St 1st St Redwood St 3rd St S Whitcomb St 2nd St Duff Dr Lupine Dr W Magnolia St N Sherwood St N Whitcomb St C a j e tan S t 10th St Canyon Ave O s i a nde r S t Cowan St N Meldrum St Woo d war d Wa y S Mason St Jerome St Colorado St Main St Gold Dr Walnut St P a scal S t H o ffm an Mill Rd O v al D r Endicott St S Sherwood St 11th St Mull e i n D r Sycamore St Blue Spruce Dr Bellflower Dr East Dr Frontage Rd E Laurel St Woo d l awn D r Lesser Dr Pine St Cordova Rd E Magnolia St Lilac Ln Martinez St N Mason St El m St W Plum St L o n gleaf Ln Trujillo St Mas o n Ct Rivend a l Dr Lopez Ct Eastdal e D r Poudre River Dr Li n d e n Ce n ter Dr Rembrandt Dr Locust Ct La Garita Ln Baum St Sangre De Cristo Ln Kenroy Ct E Magnolia St E Laurel St Frontage Rd E Laurel St Pine St Downtown Development Authority Boundary Parcels DDA Boundary Printed: October 01, 2017 1 inch = 1,320 feet . 0 0.125 0.25 0.5 Miles Amended: March 7, 2017 ATTACHMENT 1