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HomeMy WebLinkAboutMINUTES-10/26/2004-AdjournedOctober 26, 2004 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Adjourned Meeting - 6:01 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, October 26, 2004, at 6:01 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Bertschy, Martinez, Hamrick, Kastein, Roy, Tharp, and Weitkunat. Staff Members Present: Atteberry, Jensen, Roy. Items Relating to the 2005 Downtown Development Authority Budget Adopted The following is staff's memorandum on this item. "FINANCIAL IMPACT Ordinance No. 177, 2004, sets the Downtown Development Authority annual mill levy at 5.0 mills and appropriates $6,939,362 in the Operations and Maintenance Fund. Of this amount, $611,065 covers administrative expenses and $6,328,297 is for DDA capital outlay for improvements and projects in the downtown area. The mill levy is projected to generate $380,039. Ordinance No. 178, 2004, appropriates the tax increment revenue for debt service to be paid in 2005. The debt includes DDA revenue bonds and other long-term financings completed by the City on behalf of the Downtown Development Authority. The appropriation also includes the DDA's portion of the lease payments on the Civic Center Parking Structure. The total tax increment revenue for 2005 is projected to be $2,908,644. The 2005 appropriation in the Downtown Development Authority Debt Service Fund is $3,607,379. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 177, 2004, Appropriating Operating Funds and Approving the Budget of the Downtown Development Authority for the Fiscal Year Beginning January 1, 2005, and Fixing the Mill Levy for the Downtown Development Authorityfor 2005. The Downtown Development Authority (the "DDA") adopted the proposed DDA budget for 2005, totaling $6, 939,362, and determined the mill levy necessary to provide forpayment ofadministrative costs incurred by the District at its regular meeting on October 7, 2004. B. First Reading of Ordinance No. 178, 2004, Appropriating Revenue in the Downtown Development Authority Debt Service Fund for Payment of Debt Service for the Year 2005. 216 October 26, 2004 This Ordinance appropriates funds for 2005 from the tax increment received by the City for the DDA for debt service payments. Debt service and annual lease payments include: 2004 Subordinate Bond $ 247,430 Prior year refunding Bonds 2,077,275 Share of Parking Structure 282,674 2005 DDA projects 1,000,000 BACKGROUND Through action of the Council and the electors of the City, The DDA was created in 1981. According to the state statute, the purpose of the DDA is to plan and implement improvements within the boundaries of the Authority. The DDA established a Plan of Development that specified the types of projects that it would undertake. In order to complete the plan of improvements, the City on behalf of the DDA has issued various bond anticipation notes and revenue bonds. The first issuance of revenue bonds occurred in 1984. Subsequently, the bonds have been refunded to take advantage of lower interest rates and to better match the tax increment of the Authority with the debt service on the bonds. The first refunding of the bonds occurred in 1985. The most recent refunding occurred in 2001. The most recent issuance of new bonds occurred this year, 2004. The total debt service on outstanding and anticipated bonds for 2005 will be $3,324,705. In addition to the debt service on the outstanding bond issues, the DDA has entered into an agreement with the City to use some of the tax increment for the downtown Civic Center Parking Structure. According to the agreement with the City of Fort Collins and Larimer County, the DDA is to pay a share of the annual lease payment on the Civic Center Parking Structure. For 2005, the DDA share of the payment will be $282,674. In addition to the projects financed using the tax increment from the Authority, the DDA has the ability under the state law to impose a mill levy for the administration, operation, and maintenance of the entity. The mill levy for 2005 is 5.0 mills. According to the preliminary information from the County Assessor, this mill levy should generate $380,039 of revenue in 2005. The total operating budget appropriation for the DDA is $6,939,362 in 2005. " Councilmember Bertschy made a motion, seconded by Councilmember Tharp, to adopt Ordinance No. 177, 2004 on First Reading. Councilmember Tharp noted the DDA appropriation is for operation and maintenance and that there is a way, if needed, for the DDA to fund its own maintenance out of its expenses. She stated the DDA has the capability to change its mill levy, which has not changed since 1991, should they need it for maintenance. Councilmember Tharp read from State law, (the DDA) "has the ability to impose a mill levy for the administration, operation, and maintenance of the entity." If the mill levy is not enough to cover maintenance, Councilmember Tharp did not see why the DDA could not raise the mill levy. 217 October 26, 2004 Councilmember Weitkunat noted because it is a mill levy, it would have to go to a vote of the people for increase. DDA Executive Director Chip Steiner stated the statute does not allow a mill levy higher than 5, which the DDA already has. The vote on the motion was as follows: Yeas: Councilmembers Hamrick, Kastein, Roy, Tharp, Weitkunat, Bertschy, and Martinez. Nays: None. THE MOTION CARRIED. Councilmember Bertschy made a motion, seconded by Councilmember Hamrick, to adopt Ordinance No. 178, 2004 on First Reading. Yeas: Councilmembers Kastein, Roy, Tharp, Weitkunat, Bertschy, Martinez, and Hamrick. Nays: None. THE MOTION CARRIED. Other Business Councilmember Bertschy expressed appreciation for Mr. Atteberry getting the Resolution that Boulder adopted regarding the culture of alcohol. He stated he would be interested in looking at a similar Resolution for Fort Collins. Councilmembers Kastein and Tharp agreed. Adjournment Councilmember Bertschy made a motion, seconded by Councilmember Hamrick, to adjourn the meeting to 4:00 PM on November 9, 2004 for the purpose of meeting with Slavin Management Consultants regarding the Executive Search Process and to conduct the annual performance reviews of the City Manager, City Attorney, and Municipal Judge. Yeas: Councilmembers Roy, Tharp, Weitkunat, Bertschy, Martinez, Hamrick, and Kastein. Nays: None. The meeting adjourned at 6:08 p.m. Mayor ATTEST: `i ' 1� I ►i 218