HomeMy WebLinkAbout052 - 04/04/2006 - APPROPRIATING PRIOR YEAR RESERVES IN THE STORM DRAINAGE FUND FOR A LOAN TO THE URBAN RENEWAL AUTHOR ORDINANCE NO. 052, 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE STORM DRAINAGE FUND
FOR A LOAN TO THE URBAN RENEWAL AUTHORITY
WHEREAS, on September 20, 2005, City Council, acting as the Urban Renewal Authority
("URA") Board approved the use of URA funds to reimburse Valley Steel for an extension of a
sanitary sewer line serving its property and several other properties along Hickory Street; and
WHEREAS, the project reimbursement was established at an amount not to exceed
$150,000; and
WHEREAS, on January 24, 2006, the City Council discussed options for financing URA
projects because the URA will not have funds to reimburse Valley Steel until the URA begins
receiving tax increment revenues in 2007; and
WHEREAS, staff was directed by City Council to consider the type of public improvement
created by the URA project and obtain a loan from the related City fund; and
WHEREAS, staff presented an agenda item to the Water Board on February 23, 2006,
seeking a recommendation of the Water Board for making a loan from the Storm Drainage Fund in
the amount of $150,000 because the Valley Steel improvement is a utilities infrastructure
improvement; and
WHEREAS, the vote of the Water Board was evenly divided on the item, with some
dissenting Board members indicating that they could support a recommendation if it was stated that
this is a one-time action to assist the URA during its inception; and
WHEREAS,Article X, Section 6 of the City Charter states that net operating revenues of the
City's utilities may be expended only for renewals,replacements,extraordinary repairs,extensions,
improvements, enlargements, embitterments to such utility, or other specific utility purpose
determined to the Council to be beneficial to the ratepayers of said utilities; and
WHEREAS, City staff believes that the use of stormwater reserves as a funding source for
a loan to the URA in this situation will be beneficial to the ratepayers of the City's Stormwater Utility
because the specific utility improvement created by the Valley Steel project will enable
development to occur, which in turn will generate significant Stormwater plant investment fees
that will be utilized to address the deficiency in Stormwater infrastructure that currently inhibits
future development; and
WHEREAS,staff has prepared a proposed loan agreement in the form shown on that certain
"Loan Agreement Between the Fort Collins Urban Renewal Authority and the City of Fort Collins
for Funding Projects in the North College Urban Renewal Plan Area" dated April 14, 2006, on file
in the office of the City Clerk (the "Loan Agreement'); and
WHEREAS, the City Manager recommends funding the loan to the URA from the Storm
Drainage Fund prior year reserves; and
WHEREAS,Article V, Section 9,of the Charter of the City of Fort Collins 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 the use of ONE HUNDRED FIFTY THOUSAND DOLLARS
($150,000), in prior year reserves in the Storm Drainage Fund for the purpose of funding a loan to
the URA according to the terms and conditions of the Loan Agreement will serve a specific utility
purpose for the ratepayers of the City's Stormwater Utility and will be beneficial to such ratepayers
in that all ratepayers will enjoy greater efficiency from the overall Stormwater system.
Section 2. That the Loan Agreement is hereby approved by the Council on substantially
the same terms and conditions as contained therein, subject to such modifications in form or
substance as the City Manager may,in consultation with the City Attorney,deem to be desirable and
necessary to protect the interests of the City.
Section 3. That there is hereby appropriated for expenditure from Storm Drainage Fund
prior year reserves the sum of ONE HUNDRED FIFTY THOUSAND DOLLARS ($150,000), for
a loan to the Urban Renewal Authority.
Introduced, considered favorably on first reading, and ordered published this 21st day of
March, A.D. 2006, and to be presented for final passage on the 4t day of April, A.D. 2006.
Mayo
ATTEST:
City Clerk
Passed and adopted on final reading on the 4th day of A A.D. 2006.
Mayo 1
ATTEST:
a
City Clerk