HomeMy WebLinkAbout024 - 03/16/2010 - APPROPRIATING PRIOR YEAR RESERVES IN THE CAPITAL EXPANSION FUND FOR THE RENOVATION OF THE NEW REGION ORDINANCE NO. 024, 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE CAPITAL EXPANSION FUND
FOR THE RENOVATION OF THE NEW REGIONAL CROSSROADS SAFEHOUSE
WHEREAS, Crossroads Safehouse ("Crossroads") is a private, non-profit corporation in
the City that provides services which promote a safer community, thereby serving a valuable
public purpose; and
WHEREAS, in the fall of 2009, Crossroads requested assistance from the City in funding
the renovation of its new, expanded domestic violence shelter; and
WHEREAS, City Council discussed this request during the 2010-2011 City budget
process and directed the City Manager to investigate funding options and make a
recommendation; and
WHEREAS, the present Crossroads facility was purchased by the City in 1979 for a
purchase price of$90,000, which purchase was wholly funded with CDBG funds; and
WHEREAS, additional CDBG funds in the approximate amount of $6,300 were
expended in 1979 for repairs to the building and, from the years 1984 through 2007, CDBG
funds in the approximate amount of $570,000 were expended toward the making of
improvements to the building; and
WHEREAS, the Department of Housing and Urban Development ("HUD") regulations
provide that any real property under the City's control that was acquired with CDBG funds in
excess of $25,000 must either be used to meet national objectives until five years after the
expiration of the most recent grant agreement, or if not used to meet national objectives, then the
City must pay the City's CDBG fund as program income the amount equal to the current value
of the property; and
WHEREAS, under the HUD regulations, there is no payment required to be made from
the City into the City's CDBG fund after the five year period following expiration of the most
recent grant agreement; and
WHEREAS, the City has conducted an appraisal of the Crossroads property which
appraisal has determined that the property presently would only generate a purchase price of
approximately $556,000; and
WHEREAS, the appraiser anticipates that, by 2014, the property may be valued at as
much as $1,160,000; and
WHEREAS, the most recent CDBG grant agreement was closed out in 2009 and, by
September 2014, five years will have elapsed since the most recent grant agreement so that, in
2014, the City would likely be able to realize a significant beneficial gain in value; and
WHEREAS, for the foregoing reasons, it wold not be in the best interests of the City to
immediately offer the Crossroads facility for sale; and
WHEREAS, staff therefore recommends that $350,000 be appropriated from other
sources for the renovation of the new regional Crossroads facility, pending the eventual sale of
the present Crossroads facility; and
WHEREAS, $350,000 could be made available in the Capital Improvement Expansion
Fee fund prior year reserve that are presently committed to Police Services, and the expenditure'
of such funds for the proposed Crossroads facility would be consistent with the mission of Police
.Services; and
WHEREAS, the Colorado Supreme Court in the case of Barber v. State, has determined
that funds raised for special purposes by governmental entities in Colorado may be used for
purposes other than those originally intended if such use of the funds is determined to be
necessary by the legislative body by reason of a revenue shortfall; and
WHEREAS, in recent years, the City has, in fact, experienced severe revenue shortfalls
that have necessitated reductions in the City work force and required the elimination or paring
back of various City services; and
WHEREAS, accordingly, under this ruling of the Colorado Supreme Court, the City's
Capital Improvement Expansion Fee funds can be used to support the valid public purpose
served by Crossroads as a component of the City's interest in promoting a safe community; and.
WHEREAS, the City's contribution of $350,000 would be contingent on Crossroads
obtaining commitments from other funding sources for 90% of the total funding needed for the
capital renovation of the Crossroads facility prior to beginning the construction; 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
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby finds that the appropriation of funds as
authorized by this Ordinance serves an important public purpose and is in the best interests of
the health, safety and welfare of the residents of the City.
Section 2. That there is hereby appropriated for expenditure from prior year reserves
in the Capital Expansion Fund the sum of THREE HUNDRED FIFTY THOUSAND DOLLARS
($350,000) for the renovation of the new regional Crossroads facility, provided, however, that
the provision of such funding to Crossroads shall be contingent upon the City's receipt of
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evidence in a form satisfactory to the City Manager, that Crossroads has obtained commitments
from other funding sources for 90% of the total funding needed for the capital renovation of the
Crossroads facility prior to beginning construction of the facility.
Section 3. That this appropriation from prior year reserves in the Capital
Improvement Expansion Fund is hereby determined by the City Council to promote a valid
public purpose in that it helps to establish a safer community by providing facilities for those
persons who are victims of relationship abuse, all of which serves the mission of Fort Collins
Police Services and protects the public health, safety and welfare.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
March, A.D. 2010, and to be presented for final passage 4thelay of March, A.D. 2010.
ATTEST:
City`Clerk
Passed and adopted on final reading on the 16th dWofh, A.D. 2010.
Mayo
ATTEST:- -
City Clerk
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