HomeMy WebLinkAbout09762RESOLUTION NO. 9762
A RESOLUTION APPROVING WITH CONTINGENCIES THE URBAN RENEWAL AUTHORITY OF
PUEBLO, COLORADO'S FISCAL YEAR 2003 OPERATIONS AND MAINTENANCE BUDGET
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The Urban Renewal Authority of Pueblo, Colorado's ( "Authority") fiscal year 2003 Operations
and Maintenance Budget ( "2003 Budget "), a copy of which is attached hereto, is hereby approved;
provided, however, that the Authority shall not commit or expend any of the following amounts without
prior approval of City Council by Resolution:
Item Amount
Other O & M Expenses (PDF /City Lease) $155,867
Capital Expenses 31,300
Parking Lot Improvements 64,800
Capital Replacement/Bond Retirement Reserve 248,086
Marketing of Pad Site Expenditures 10,000
Drawings of Expansion by Hurtig /Gardner 86,086
and, further provided that the following Items: Other O & M Expenses (PDF /City Lease) — $155,867,
Capital Expenses — $31,300, and Parking Lot Improvements — $64,800 shall not be spent out of
Vendors' Fee revenue.
SECTION 2
Notwithstanding the foregoing approval, the Authority shall prepare an amended 2003 Budget
in format acceptable to City's Assistant City Manager for Fiscal Operations and submit same to City
Council for approval. The Authority is requested to review its 2003 Budget to determine the accuracy
of the amounts shown as Vendors' Fee — $1,580,000, and Tax Increment Revenue — $212,000, and if
such amounts are in error, Authority should incorporate the correct amounts in its amended 2003
Budget.
SECTION 3
According to the Authority's 2001 audit, the Authority had $2.8 million in cash, cash
equivalents and investments, of which approximately $1.9 million is in bond funds and $0.90 million is
unencumbered under the control of the Authority. The Authority shall not commit or expend any of
Authority's cash, cash equivalents or investments other than to reinvest same without prior approval
of City Council by Resolution.
INTRODUCED January 13, 2003
BY All Gurule
Councilperson
APPROVED:
President of City Council
ATTEST:
al�
•
PUEBLO CONVENTION CENTER/URBAN RENEWAL AUTHORITY
Proposed Operations/Maintenance /URA Budget 2003
12/23/2002
O& M EXPENSES
DEBT
SERVICE SERIES A & B BONDS
740,000
740,000
0
EVENT
EXPENSES
F &B Product Expense
290,101
295 500
5,399
F &B PT/rem Labor Expense
393
385,850
7,858
INDIRECT
F &B Other Event Expense
EVENT EXPENSE - Advardsinglioroduction
EVENT EXPENSE - Telecommunications
EVENT EXPENSE -Operations Labor
EVENT EXPENSE - E ui menttUnen Rental
EVENT EXPENSE - Other
TOTAL EVENT EXPENSES
EXPENSES
36,263
44,300
22,581
96,530
27,518
5,402
916,401
48,000
85,000
30,000
95,000
31,000
6,000
956,350
11,737
(20,700
419
1.530
(3,482
593
(39
Advertising
20,405
15 000
5 405
Bank Account Fees
1,500
3
(1,700
Collections/Bad Debt Expense
1,4G0
250
1,150
Computer Expense
14,150
6.600
7 650
Direct Sales
5,340
2.800
2,540
Dues/Subscriptions
7,338
6,800
538
Employee Benefits
103,270
93.500
9.770
Employee Relations
5,155
8,155
Equipment - New
19,557
2S.000
5,443
Equipment Lease Agreements
12,150
11,500
650
EqulpfBldg Maintenance A reements
31,725
24,000
7,725
Equipment Rental
3,050
3,000
50
Insurance - Wc/BidglProperty
38,000
28,800
9,200
Licenses /Permits -
1
1.600
380
Linens/Laundry
56
63500
2,940
Linens/Laundry Alloc To Event Expenses
54 027
50 000
4,027
Maintenance/Cleaning Supplies
33,170
27.000
6,170 -
Meetin s/Conventlonsrrminin s
20,156
10000.
10155
Office supplies
4
3,200
800
Payroll Taxes
37,787
35 000 -
2,787
Postage
5 500
2,500
3,000
Printing
9
6,000
1,160
Professional Fees (Accounting/Legal)
5,656
300
7,700
Promotional Materials
14,290
7,750 1
6,540
Repairs - Bldg/Equipment
44,412
25,000
19,412
Salaries - Administrative
455
437,000
18 677
Salaries/Pr Taxes Alloc To Event Expenses
109 067
83,500
25,567
Telephone
32,920
30 500
2,420
Travel
9,662
8
1,662
Uniforms
14,800
11.000
3
Utilities
104,282
95,000
9,282
Utilities Alloc To Event Expenses
(22,531)
23,500
969
Management Fee
68.520
81.424
(12,904
OTHER
CAPITAL
PARKING
CAPITAL
TOTAL INDIRECT EXPENSES
O &M EXPENSES PDF /CITY LEASE
EXPENSES
LOT IMPROVEMENTS
REPLACEMENT /BOND RETIREMENT RESERVE
999
155,867
31 ;300
64,800
248,086
900,124
212,000
22,000
177,000
99,066
(56,133
9
112,200
248 086
TOTAL O &M EXPENSES
PROJECTED OPERATING SURPLUS DEFICIT
3,155,644
0
3 007,474
6 598
148,170
j6,596
TAX INCREMENT REVENUE
PROPERTY TAX /SALES TAX INCREMENT
212,000
TOTAL TAX INCREMENT REVENUE
212,000
URBAN RENEWAL AUTHORITY EXPENSES
Item Description
1 Travel expenses for URA Beard Members
15,000
2 Marketing of Pad Site Expenditures
10,000
3 URA Plan
85,000
6 Drawings of Expansion by Hurti Gardner
86,086
6 Audit Fees
4,000
7 URA Attorney Costs
11,914
TOTAL URA EXPENSES
212,000
0
960 - ff9�7&2
D O
D
Background Paper for Proposed
RESOLUTION
AGENDA ITEM # 1(o
DATE: January 13, 2003
DEPARTMENT: Law Department
TITLE
A RESOLUTION APPROVING WITH CONTINGENCIES THE URBAN RENEWAL
AUTHORITY OF PUEBLO, COLORADO'S FISCAL YEAR 2003 OPERATIONS
AND MAINTENANCE BUDGET
ISSUE
Should the City Council approve the FY 2003 Urban Renewal Authority of Pueblo,
Colorado ( "URA") Operations and Maintenance Budget for the Pueblo Convention
Center with contingencies.
RECOMMENDATION
Approve the Resolution with contingencies set forth in the Resolution.
BACKGROUND
The URA is carrying out the Phase One Urban Renewal Plan for Downtown Pueblo
and pursuant to its bond indenture and cooperation agreement with the City, the
City Council must approve an Operations and Maintenance Budget for the Phase
One Urban Renewal Plan including the Pueblo Convention Center.
FINANCIAL IMPACT
The URA Fiscal Year 2003 Operations and Maintenance Budget is attached to this
Resolution.
D 0 O
E °
503 N. Main Street, Suite 127
Pueblo, Colorado 81003
C I T Y O F P U E B L O
OFFICE OF THE CITY ATTORNEY
TO: Joseph A. Fortino, Chairman, Board of Commissioners,
Urban Renewal Authority of Pueblo, Colorado
FROM: City Attorney
RE: 2003 Operation and Maintenance Budget
DATE: January 7, 2003
Telephone: (719) 545 -412
Fax No.: (719) 545 -4301
We have reviewed the Authority's modified 2003 Operation and Maintenance Budget submitted to
Mr. Lee R. Evett, City Manager with your December 20, 2002 letter.
According to the Authority's 2001 audit, vendor fee revenue is shown as $1,389,585 and tax
increment revenue (property and sales tax, TIF) is shown as $345,820. Bob Hain, Asst. Manager for
Fiscal Operations estimates the vendor's fee to be $1,391,000 for 2003. Based upon the foregoing,
we don't understand how the Authority can justify $1,580,000 vendors' fee revenue and $212,000
TIF revenue for 2003.
We also question the Authority's budgeting out of the vendors' fee revenue the following items: (1)
Other O &M Expenses (PDF /City Lease) $155,867 which according to your attorney are indebtedness
of the Authority and proper charges against TIF revenue. The PDF Lease and repayment of City's
funds has been paid out of TIF funds in the past; (2) Parking Lot Improvements in the amount of
$64,800 and Capital Expenses of $31,300 which are capital expenditures outside the purview of
operating and maintenance expenses for the Phase One project; and (3) Capital Replacement/Bond
Retirement Reserve. Under the bond documents, monies left in the operation and maintenance fund
are to be transferred into the bond retirement fund to pay the principal of, redemption provisions, if
any, and interest on outstanding bonds. We see no reason for the Authority to create a separate bond
retirement reserve, especially since the Authority's 2001 audit shows assets of $2.8 million in cash
and investments, of which approximately $1.9 million is tied up in bond fiends and $0.90 million is
held by the Authority. The parking lot has been developed on land acquired for the Urban Renewal
Plan for the Amended Phase One Urban Renewal Project for Downtown Pueblo ( "Urban Renewal
Plan"). According to the Urban Renewal Plan, "Authority will dispose of real property in the
Amended Phase One Urban Renewal Project Area for redevelopment in accordance with the
provisions of the Urban Renewal Plan and the Colorado Urban Renewal Law." It appears to be
inconsistent with the purposes of the Authority's authorized functions for the Authority to expend
substantial funds to improve land acquired for redevelopment as a parking lot.
We also question the loading -up of operating and maintenance expenses in order to budget the
expenditure of all revenue, including 100% of the vendors' fee revenue, as well as moving certain
expenditures to payment out of TIF.
We are of the opinion that the City Council by resolution must approve:
(a) any commitment, contract or agreement with respect to or concerning the
development, construction, operation or maintenance of all or any part of the Phase One Project or
the Phase One Plan.
(b) making any appropriation or expenditure of, or adopting an annual budget for or with
respect to the operation and maintenance of all of any part of the Amended Phase One Urban
Renewal Project.
As we understand, pursuant to the Colorado Urban Renewal Law, the Authority may not undertake
an urban renewal project for an urban renewal area except pursuant to an urban renewal plan and
project approved by the City Council. The expansion of the Convention Center is a substantial
modification of the approved Urban Renewal Plan and until incorporated in an urban renewal plan
as an urban renewal project approved by the City Council, expenditures of funds with respect to the
expansion of the Convention Center, for example, engaging architects or engineers to develop plans
for such expansion, may not be legally authorized. Such expenditures may also be premature, since
the City Council may, due to City's priorities and limitation on funds available for debt service when
all detailed financing information is presented to the City Council, only approve a parking structure
project and not the Convention Center expansion as appropriate for an urban renewal project.
l �TRS.�
/jp
xc: Members of the City Council
Lee R. Evett, City Manager
Robert Hain, Asst. City Manager for
Fiscal Operations
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