Title
Ordinance No. 22-29 amending Ordinance No. 21-112 (2022 Appropriation Ordinance) for a supplemental appropriation to the Lodgers & Auto Rental Tax (LART) Fund in the amount of $3,485,333 for additional projects and events recommended by the LART Citizen Advisory Committee; and to the Capital Improvements Program (CIP) Fund in the amount of $900,000 for LART-funded capital projects that will be administered by the City of Colorado Springs Parks, Recreation and Cultural Services Department
Presenter:
Chris Wheeler, City Budget Manager
PK McPherson, Chair, LART Citizen Advisory Committee
Body
Summary:
The LART Citizen Advisory Committee, at their meetings in March of 2022, recommended approval and funding for additional 2022 events and projects. The attached ordinance is a supplemental appropriation to the LART Fund in the amount of $3,485,333 as shown in Exhibit A, as recommended by the LART Citizen Advisory Committee. The attached ordinance also includes a supplemental revenue appropriation in the LART fund of $1,000,000 for funding received from the federal American Rescue Plan Act (ARPA) grant to address revenue loss during the pandemic.
The attached ordinance also includes a supplemental appropriation to the CIP Fund in the amount of $900,000 for LART-funded capital projects that will be administered by the City’s Parks, Recreation and Cultural Services department. The $900,000 transfer from the LART Fund to the CIP Fund is included in the $3,485,333 LART Fund supplemental appropriation request.
In 2021, LART revenue exceeded budget by approximately $2.7 million. Additionally, LART has been provided $1,000,000 of American Rescue Plan Act (ARPA) funding as mentioned above.
Background:
A number of events in the community have been designated by 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 2022 meetings, reviewed additional applications for funding and recommended additional projects and events for 2022 totaling $3,485,333. This will result in a supplemental expenditure appropriation to the LART fund in the amount of $3,485,333, and $1,000,000 supplemental revenue appropriation for the ARPA funding transferred to the LART Fund.
Previous Council Action:
On September 27, 2021, City Council recommended LART expenditures to be included in the 2022 budget (Resolution No. 140-21). On October 26, 2021, City Councill approved the supplemental appropriation for federal ARPA grant funding per Ordinance No. 21-83. On December 14, 2021, City Council approved the 2022 Budget per Ordinance No. 21-112, which included the appropriation of funds for the LART Fund.
Financial Implications:
The supplemental appropriation increases the 2022 LART Fund expenditure budget by $3,485,333, the LART revenue budget by $1,000,000 and the CIP Fund by $900,000, and does not affect the General Fund balance. The source of these funds is the available fund balance in the LART fund, the 2022 estimated revenue in excess of budget, and $1,000,000 received from the federal ARPA grant. After this supplemental appropriation, there will be approximately $200,000 of remaining funds available that will be reserved and approximately $600,000 set aside for LART’s portion of the 2021 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 $3,485,333 to be funded in 2022.
This request was discussed with the City Council Budget Committee on April 12, 2022.
Stakeholder Process:
N/A
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move approval of the attached ordinance 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 $3,485,333 for additional projects and events recommended by the LART Citizen Advisory Committee; and to the Capital Improvements Program (CIP) Fund in the amount of $900,000 for LART-funded capital projects that will be administered by the City of Colorado Springs Parks, Recreation and Cultural Services Department