Title
Ordinance No. 23-29 amending Ordinance No. 22-90 (2023 Budget Appropriation Ordinance) for a supplemental appropriation to the Lodgers & Auto Rental Tax (LART) Fund in the amount of $717,960 for additional projects and events recommended by the LART Citizen Advisory Committee and as amended by City Council; and to the Capital Improvements Program (CIP) Fund in the amount of $250,000 for a LART-funded capital project that will be administered by the City of Colorado Springs Parks, Recreation and Cultural Services Department
Presenter:
Chris Fiandaca, City Budget Manager
PK McPherson, Chair, LART Citizen Advisory Committee
Body
Summary:
The LART Citizen Advisory Committee, at their meeting in March of 2023, recommended approval and funding for additional 2023 events and projects. The attached ordinance is a supplemental appropriation to the LART Fund in the amount of $717,960 as shown in Exhibit A, as recommended by the LART Citizen Advisory Committee and as amended by City Council at the June 13, 2023 City Council meeting. The attached ordinance also includes a supplemental appropriation to the CIP fund in the amount of $250,000 for a LART-funded capital project that will be administered by the City’s Parks, Recreation and Cultural Services department. The $250,000 transfer from the LART Fund to the CIP Fund is included in the $717,960 LART Fund supplemental appropriation request.
In 2022, LART revenue exceeded budget by approximately $1.1 million. Additionally, LART was provided $1,000,000 of American Rescue Plan Act (ARPA) funding during 2022.
Background:
The LART Tax, 2% on lodging and 1% on auto rental, was established in 1978 with the purpose of attracting visitors and enhancing the economy of the City and Pikes Peak Region.
A number of events in the community have been designated by City Council resolutions over the years as “City-sponsored events” and are supported in whole or in part by LART funds. The remaining funds are allocated to projects and events in the community through an application process and extensive review by the LART Citizen Advisory Committee, which results in their recommendation to City Council for projects to include in the City’s annual budget (Exhibit A).
The LART Citizen Advisory Committee, at their March 2023 meeting, reviewed additional applications for funding and recommended additional projects and events for 2023 totaling $710,460. On June 13, 2023, at this item’s second reading, City Council amended the request to include an additional $7,500 for the Pikes Peak or Bust Rodeo Parade. This will result in a supplemental expenditure appropriation to the LART fund in the total amount of $717,960.
Previous Council Action:
On November 8, 2022, City Council recommended LART expenditures to be included in the 2023 budget (Resolution No. 191-22). On December 13, 2022, City Council approved the 2023 Budget per Ordinance No. 22-90, which included the appropriation of funds for the LART Fund. On June 13, 2023 City Council amended the LART Supplemental request to include $7,500 for the Pikes Peak or Bust Rodeo Parade.
Financial Implications:
The supplemental appropriation increases the 2023 LART Fund expenditure budget by $717,960 and the CIP Fund by $250,000 and does not affect the General Fund balance. The source of these funds is the available fund balance in the LART fund. After this supplemental appropriation, there will be approximately $1,045,000 of remaining funds available that will be reserved in large part for the 2022 TABOR retention/refund.
City Council Appointed Board/Commission/Committee Recommendation:
The LART Citizen Advisory Committee has recommended funding for the projects listed in Exhibit A totaling $710,460 to be funded in 2023, and City Council has amended that request to include an additional $7,500 for a total amount to be funded in 2023 of $717,960.
Stakeholder Process:
This request was discussed with the City Council Budget Committee on April 25, 2023. There were questions about the history of funding capital projects with LART funding, which were answered at the meeting. There was also discussion about the criteria and rubric used by the LART Committee when scoring projects.
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move approval of Ordinance No. 23-29 approving a supplemental appropriation to the Lodgers & Auto Rental Tax (LART) Fund and the Capital Improvements Program (CIP) Fund.
Summary of Ordinance Language
An Ordinance amending Ordinance No. 21-112 (2022 Appropriation Ordinance) for a supplemental appropriation to the Lodgers & Auto Rental Tax (LART) Fund in the amount of $717,960 for additional projects and events recommended by the LART Citizen Advisory Committee and as amended by City Council; and to the Capital Improvements Program (CIP) Fund in the amount of $250,000 for a LART-funded capital project that will be administered by the City of Colorado Springs Parks, Recreation and Cultural Services Department