HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/04/2020 - FIRST READING OF ORDINANCE NO. 128, 2020, BEING TH Agenda Item 4
Item # 4 Page 1
AGENDA ITEM SUMMARY November 4, 2020
City Council
STAFF
Matt Robenalt, DDA Executive Director
Kristy Klenk, DDA Financial Coordinator
John Duval, Legal
SUBJECT
First Reading of Ordinance No. 128, 2020, Being the Annual Appropriation Ordinance for the Fort Collins
Downtown Development Authority relating to the Annual Appropriations for the Fiscal Year 2021 and Fixing
Mill Levy for the Downtown Development Authority for Fiscal Year 2021.
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 $8,067,545
DDA Operations & Maintenance $1,385,349
Revolving Line of Credit Draws $7,000,000
DDA Debt Service Fund $7,431,611
The DDA anticipates receiving in 2021 tax increment revenues of approximately $6,630,081 and approximately
$788,897 in revenues from its five-mill property tax for the DDA’s operational and maintenance expenditures.
The Ordinance also sets the 2021 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 2021.
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. 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 2021
in the amount of $8,067,545 and DDA Operation and Maintenance budget for fiscal year 2021 in the amount of
$1,385,349. It is requesting appropriation of up to $7,000,000 for the 2021 Line of Credit draws. It is also
requesting approval of the DDA debt payment commitments in the amount of $7,431,611 for 2021 obligations.
Agenda Item 4
Item # 4 Page 2
The 2021 Public/Private Investments and Program budget is projected as follows:
Uses:
Alley Operations $175,071
Alley Capital Reserve Replacement 182,357
Alley Design and Construction (Tenney, W Oak) 528,324
Alley Trash Enclosure Lease Payments 27,026
140 E Oak Pre-Development 637,129
140 E Oak Construction Capital 5,800,811
Façade Grant Program 163,470
Gateway Entrances 55,000
Old Town Square Operations 192,447
Old Town Square Capital Reserve Replacement 30,453
Tree Canopy 11,200
Urban Micro-Space Design Plan 113,314
Warehouse Operations 10,038
Other Public/Private Investments & Programs 140,905
Total $8,067,545
The 2021 Operations and Maintenance budget is projected as follows:
Uses:
Personnel Services $900,232
Contractual Professional Services 410,764
Purchased Supplies and Commodities 40,564
Other 33,789
Total $1,385,349
The 2021 Line of Credit draws, whose debt service payment will be made from the debt service fund, is projected
to fund up to $7,000,000:
Uses:
Old Firehouse Alley Parking Garage IGA Payment $300,000
Multi-Year Reimbursement Payments 633,564
Project Management Fees 155,752
Business Marketing and Communications Program 325,000
Capital Asset General Maintenance Obligations 477,712
Capital Asset Replacement Reserve 197,926
Capital Asset Reserve & Replacement Annual Program 73,350
Future Public/Private Investments & Programs 4,836,696
Total $7,000,000
The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments for
2021:
Uses:
Debt Payment: 2021 $7,431,611
BOARD / COMMISSION RECOMMENDATION
At its September 10, 2020 meeting, the Downtown Development Authority Board of Directors adopted its proposed
budget for 2021 totaling $23,884,505 and determined the mill levy necessary to provide for payment of
administrative costs incurred by the DDA. The amount of $23,884,505 meets the reporting criteria of the City of
Fort Collins accounting standards but the DDA would like City Council to be aware that the total amount does not
directly reflect the anticipated revenues from Tax Increment or the 5 mills for 2021. The Public/Private Investments
and Programs budget of $8,067,545 are previously appropriated unspent funds of which 80% is dedicated to the
Agenda Item 4
Item # 4 Page 3
qualified affordable housing partnership with Housing Catalyst at 140 E Oak Street. The repayment of the Line of
Credit of $7,000,000 is reported as part of the Debt Service Payment total and is then reported separately for
anticipated uses.
ATTACHMENTS
1. Boundary Map (PDF)
2. DDA Resolution 2020-05 Determining and Fixing the Mill Levy (PDF)
3. DDA Resolution 2020-06 Determining and Recommending the 2021 Budget (PDF)
4. DDA Resolution 2020-07 Appropriation of the 2021 Line of Credit Draw Service (PDF)
5. DDA Resolution 2020-08 Appropriation for Debt Service (PDF)
6. DDA Resolution 2020-09 Appropriation of Public-Private Investments & Programs (PDF)
C
a
c
h
e
L
a
P
o
u
d
r
e
R
i
v
e
r
I³
WXYZÕ
E Vine Dr
Riv
e
r
s
i
d
e
A
v
eN College AveS Lemay AveS College Ave9th StE Lincoln Ave
S Mason StS Howes StE Mulberry St
W Laurel St
Laporte Ave
Remington StW Mulberry St N Lemay AveW Mountain Ave
Jef
f
e
r
s
o
n
S
tN Mason StN Howes StESunigaRd
E Mountain Ave
Remington StNLe
ma
y
AveSmith StE Elizabeth StMathews StPeterson StLocust St
E Myrtle St
Stover StWhedbee StLinden St12th StMaple St
Cherry St
Conifer St
E Plum St
W Oak St
E Olive StW Olive St
Will
o
w
S
t
W Myrtle St
Buckingham St
E Oak St
S Meldrum StHemlock St
1st StRedwood St3rd StS Whitcomb St2nd StDuff
D
r
Lupine Dr
W Magnolia StN Sherwood StN Whitcomb StC ajetanSt
10th StCanyon AveOsianderSt
Cowan StN Meldrum StWoodwar dWay
S Mason StJeromeStColorado StMain St
Gold Dr
Wal
n
u
t
S
t
Pascal St
HoffmanMillRd
O valDrEndicott StS Sherwood St11th StMulleinDrSycamore St Blue Spruce DrBellflower DrEast DrFrontage Rd
E Laurel St
WoodlawnDr
Lesser DrPine StCordova RdE Magnolia St
Lilac LnMartinez StN Mason StElmSt
W P lum S t LongleafLnTrujillo St
Maso
nCtR iv e n d alDrLopez Ct
Eastdale D
r
Poudre
R
i
v
e
r
D
rLindenCenterDr
Rembrandt DrLocust CtLa Garita Ln
Baum StSangre De Cristo Ln
Kenroy CtE Magnolia St
E Laurel St
Frontage Rd
E Laurel St Pine StDowntown Development Authority Boundary
Parcels
DDA Boundary Printed: October 01, 2017
1 inch = 1,320 feet.
0 0.25 0.50.125 Miles Amended: March 7, 2017
ATTACHMENT 1
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 4
ATTACHMENT 5
ATTACHMENT 6
-1-
ORDINANCE NO. 128, 2020
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 2021 AND FIXING THE
MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY
FOR FISCAL YEAR 2021
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 10, 2020, 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, 2021, as reflected in DDA Board
Resolutions 2020-06, 2020-07, 2020-08 and 2020-09 (the “Budget”), and determined the mill
levy necessary to provide for payment during fiscal year 2021 of properly authorized operational
and maintenance expenditures to be incurred by the DDA; and
WHEREAS, the DDA anticipates receiving in 2021 tax increment revenues of
approximately $6,630,081 and approximately $788,897 in revenues from its five-mill property
tax for the DDA’s operational and maintenance expenditures; and
WHEREAS, it is the desire of the Council to appropriate the sum of TWENTY-THREE
MILLION, EIGHT HUNDRED EIGHTY-FOUR THOUSAND, FIVE HUNDRED AND FIVE
DOLLARS ($23,884,505) from the DDA Operation and Maintenance Fund and the DDA Debt
Service Fund for the fiscal year beginning January 1, 2021 and ending December 31, 2021, to be
used as follows:
DDA Public/Private Investments & Programs (O&M Fund) $8,067,545
DDA Operations & Maintenance (O&M Fund) 1,385,349
2021 Revolving Line of Credit Draws 7,000,000
DDA Debt Service Fund 7,431,611
Total $23,884,505
; and
WHEREAS, the DDA Board, as reflected in DDA Board Resolution 2020-05, 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 2021 fiscal year for all properly authorized operational and maintenance expenditures
to be incurred by the DDA; and
WHEREAS, the amount of this proposed mill levy is not an increase over prior years
and, as such, prior voter approval of the proposed levy is not required under Article X, Section
20 of the Colorado Constitution; and
-2-
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, 2020.
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 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 2021 for expenditure from
the DDA Operation and Maintenance Fund for the Downtown Development Authority
Public/Private Investments and Programs the sum of EIGHT MILLION SIXTY-SEVEN
THOUSAND FIVE HUNDRED FORTY-FIVE DOLLARS ($8,067,545), 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 2021 for expenditure
from the DDA Operation and Maintenance Fund for the Downtown Development Authority
Operation and Maintenance the sum of ONE MILLION THREE HUNDRED EIGHTY-FIVE
THOUSAND THREE HUNDRED FORTY-NINE DOLLARS ($1,385,349), to be expended for
the authorized purposes of the DDA.
Section 5. That there is hereby appropriated for fiscal year 2021 for expenditure from
the Downtown Development Authority 2021 Line of Credit draws the sum of up to SEVEN
MILLION DOLLARS ($7,000,000), 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 2021 for expenditure
from the Downtown Development Authority Debt Service Fund the sum of SEVEN MILLION
FOUR HUNDRED THIRTY-ONE THOUSAND SIX HUNDRED ELEVEN DOLLARS
($7,431,611), for payment of debt service on a previously issued and outstanding bond, and for
payment on the 2021 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
2021, which levy represents the amount of taxes necessary to provide for payment during fiscal
year 2021 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, 2020.
-3-
Introduced, considered favorably on first reading, and ordered published this 4th day of
November, A.D. 2020, and to be presented for final passage on the 17th day of November, A.D.
2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 17th day of November, A.D. 2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk