Title
Ordinance No. 24-34 amending Ordinance No. 23-65 (2024 Budget Appropriation Ordinance) for a supplemental appropriation to the Lodgers & Auto Rental Tax (LART) Fund in the amount of $708,000 for additional projects and events recommended by the LART Citizen Advisory Committee and as amended by City Council
Presenter:
Charae McDaniel, Chief Financial Officer
Body
Summary:
The LART Citizen Advisory Committee, at their meeting in March of 2024, recommended approval and funding for additional 2024 events and projects. The attached ordinance is a supplemental appropriation to the LART Fund in the amount of $708,000 as shown in Exhibit A, as recommended by the LART Citizen Advisory Committee and as amended by City Council at the April 23, 2024 City Council Meeting.
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 2024 meeting, reviewed additional applications for funding and recommended additional projects and events for 2024 totaling $658,100. On April 23, 2024, at this item’s first reading, City Council amended the request for a total of $49,900 to include an additional $39,600 for the 38th Annual IAFF Fallen Fire Fighter Memorial (FFFM) and $10,300 for the Colorado Springs Veterans Day Parade. This will result in a supplemental expenditure appropriation to the LART fund in the total amount of $708,000.
Previous Council Action:
On November 14, 2023, City Council recommended LART expenditures to be included in the 2024 budget (Resolution No. 190-23). On November 28, 2023, City Council approved the 2024 Budget per Ordinance No. 23-65, which included the appropriation of funds for the LART Fund.
On April 23, 2024 City Council amended the LART Supplemental request for a total of $49,900 to include $39,600 for the 38th Annual IAFF Fallen Fire Fighter Memorial (FFFM) and $10,300 for the Colorado Springs Veterans Day Parade.
Financial Implications:
The supplemental appropriation increases the 2024 LART Fund expenditure budget by $708,000 and does not affect the General Fund balance. The source of these funds is the available fund balance in the LART fund, which was generated by dropped projects or canceled events during 2023, and anticipated expenditure savings in 2024 due to an event being cancelled.
City Council Appointed Board/Commission/Committee Recommendation:
The LART Citizen Advisory Committee has recommended funding for the projects listed in Exhibit A totaling $658,100 to be funded in 2024, and City Council has amended that request to include an additional $49,900 for a total amount to be funded in 2024 of $708,000.
Stakeholder Process:
This request was discussed with the City Council Budget Committee on March 26, 2024.
Alternatives:
N/A
Recommended Action
Proposed Motion:
Move approval of Ordinance No. 24-34 approving a supplemental appropriation to the Lodgers & Auto Rental Tax (LART) Fund for additional projects and events recommended by the LART Citizen Advisory Committee and as amended by City Council.
Summary of Ordinance Language
An Ordinance amending Ordinance No. 23-65 (2024 Budget Appropriation Ordinance) for a supplemental appropriation to the Lodgers & Auto Rental Tax (LART) Fund in the amount of $708,000 for additional projects and events recommended by the LART Citizen Advisory Committee and as amended by City Council