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HomeMy WebLinkAbout087 - 07/19/2011 - APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR TRANSFER TO THE CAPITAL PROJECTS FUND FOR ORDINANCE NO.. 087, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR TRANSFER TO THE CAPITAL PROJECTS FUND FOR THE FORT COLLINS MUSEUM/DISCOVERY SCIENCE CENTER PROJECT WHEREAS, on November 1, 2005, Fort Collins voters passed Ordinance No. 092, 2005, approving the `Building on Basics" ("BOB'') tax for certain capital projects; and WHEREAS, $6,000,000 was included in the BOB capital project program for construction of a new combined-use facility for the Fort Collins Museum/Discovery Science Center (the "Project"); and WHEREAS, the City and Discovery Center, a Colorado non-profit corporation, d/b/a/ Discovery Science Center, now officially known as FCDM, Inc. (the "NPC"), entered into an operating agreement for the construction and operation of the Project; and WHEREAS,the Project will be jointly owned,managed and funded by the City and the NPC; and WHEREAS, the City Council, through various appropriation ordinances, has previously appropriated $15,109,666 for the construction of the Project, which appropriations include $3,000,000 in anticipated revenues from the Downtown Development Authority ("DDA"); and WHEREAS, in January 2010, the City entered into a design-build contract for the construction of the Project and construction commenced in August 2010; and WHEREAS, construction on the Project is continuing and the Project will incur additional construction costs through December 31, 2011; and WHEREAS, the DDA expected that its $3,000,000 commitment to the Project, which has been approved by the DDA Board of Directors, would be funded with proceeds from its 2010 bond issuance; and WHEREAS,because of market conditions and state legislation that had the effect of lowering the DDA's tax revenue,the DDA was not able to issue bonds in an amount sufficient to generate the funds needed to meet its obligation to the Project; and WHEREAS,the DDA is continuing its efforts to obtain financing for its share of the funding shortfall so that the City can be repaid and the funds advanced by this ordinance restored to the General Fund reserve account and to reserves in the Capital Projects Fund as soon as possible; and WHEREAS, as a result of the inability of the DDA to provide $3,000,000 in time to meet the Project's construction schedule, the Project's capital project account does not have sufficient funds to cover the remaining construction costs of approximately $3,382,560 that are likely to be incurred by the City to complete the Project; and WHEREAS, the City has reserve funds, available in the General Fund and in the Capital Projects Fund, Building Community Choices ("BCC") account that can be appropriated for the Project; and WHEREAS, in order to avoid delaying the opening of the Project, and to avoid the potentially significant additional contract expenses that may result if construction of the Project is suspended, the City Council believes that it is in the best interest of the City to appropriate $3,000,000 for expenditure on the construction of the Project as follows:$1,5000,000 from General Fund reserves, and $1,500,000 from reserves in the Capital Projects Fund, BCC account; and WHEREAS,the funds appropriated by this Ordinance, in combination with the funds made available to the Project by the City's loan to the NPC,which the City Council has approved through the adoption of Ordinance No. 088, 2011,will fund the construction costs of the Project through the end of September 2011; and WHEREAS, City Council desires additional information and discussion as to the possible sources for the additional funds that will be needed to pay the remaining costs to complete the Project; 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. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated from prior year reserves in the General Fund the sum of ONE MILLION, FIVE HUNDRED THOUSAND DOLLARS ($1,500,000) to be transferred to the Capital Projects Fund for expenditure on the Project. Section 2. That there is hereby appropriated from prior year BCC reserves in the Capital Projects Fund the sum of ONE MILLION FIVE HUNDRED THOUSAND DOLLARS($1,500,000) for expenditure on the Project. -2- Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. CSEAL : MayoATTEST: City Clerk COLORP�� Passed and adopted on final reading on the 19th day of July, A.D. 2011. yor OF FORT COS ATTEST: `�•: .,�Z SEAL : City Clerk •'••,,,••,,. •O COL ORPO -r