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HomeMy WebLinkAboutordinance.council.046-02 ORDiNANCE NO. 46 (Series of 2002) AN ORDiNANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO ESTABLISHiNG A SEPARATE WHEELER OPERA HOUSE ENDOWMENT FUND FROM REVENUES DERIVED FP(OM WHEELER oEPRA HOUSE DEPARTMENTAL SAViNGS (RETT AND EARNED REVENUE SAViNGS) AND SETTiNG FORTH iNVESTMENT ~ EXPE~IT~ LIMITATIONS FOR SAID FUND. WHEREAS, the electorate of the City of Aspen approved adop:Iion of Ordinance No. 20, Series of 1979, imposing a ½ of 1% real estate transfer tax for the purpose of renovation, reconstruction and maintenance of the Wheeler Opera house or for the payment of interest on bonds issued for such purposes and for the purpose of supporting the visual and performing arts (limited to $100,000.00 per year); and WHEREAS, the electorate of the City of Aspen authorized the expiration date of the real estate transfer tax to be extended to December 31, 2019; and WHEREAS, the City Council desires to establish a separate fund for the future financing of the Wheeler Opera House and into which a certain portion of annual revenues in excess of the budgeted operating reserve shall be deposited; and WHEREAS, the City Council also desires to establish expenditure and investment parameters for said Endowment Fund in order to establish a secure funding source for the Wheeler Opera House and local non-profit arts organizations considering first the operations and capital improvements of the Wheeler Opera House and secondl) to support local arts non-profit organizations; and WHEREAS, it is the intent of the City Council that the Wheeler Endowment Fund created through the adoption of this ordinance remain as a permanent fund of the City of Aspen and extend beyond the life of the real estate transfer tax, and that the monies deposited in said fund be invested in such a way so as to promote the fund's continuing future existence; and WHEREAS, it is the goal and intention of the City Council to have no less than 40 Million Dollars ($40,000,000) in principal in the Wheeler Endowment Fund as an endowment to secure the long-term financing of Wheeler Opera House operations, capital improvements and grants to local non-profit arts organizations (at current levels plus estimated inflation) upon the date that the real estate transfer tax is currently anticipated to expire in the year 2019, NOW, THEREFORE, BE 1T ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT: Section I Chapter 23.48 of the Municipal Code is hereby amended by the addition of a new Section 23.48.061, which section shall read as follows: 23.48.061 Wheeler Opera House Endowment Fund.. (a) Purpose. There is hereby established the Wheeler Endowment Fund into which are to be deposited so much of annual operating fund excess revenues as set forth in this Section. All monies deposited in the Wheeler Endowment Fund shall be expended and/or invested so as to create as an endowment to secure the long-term financing of Wheeler Opera House operations, capital improvements and grants to local non-profit arts organizations (at current levels plus estimated inflation) upon the date that the Wheeler Opera House real estate transfer tax is currently anticipated to expire in the year 2019. (b) Funding. Commencing January 1, 2003, the Wheeler Endowment Fund shall receive no less than 100% percent of all excess revenues (above and beyond Wheeler Opera House annual operating and capita] improvement expenses, including grants to no:a-profit organizations and necessary increases to the Wheeler fund operating reserve accounts) collected and paid to the Wheeler Opera House/City of Aspen from the Wheeler Opera House ]real estate transfer tax and other earned revenue sources. City Council may authorize such additional funding from other sources, for deposit into the Wheeler Endowment Fund as it may deem necessary from time to time. (c). Principal. All monies deposited into the Wheeler Endowment Fund as principal shall be utilized for investment purpose only and may not be extended or used for any other purpose. (d) Interest - Other Income. All interest or other income earned and generated by monies in the Wheeler Endowment Fund shall accrue exclusively to the Fund and may only be expended or reinvested in accordance with the limitations as set forth in this Section (e) Investments Authorized. The Director of Finance is authorized to invest Wheeler Endowment Fund. without distinction between prinmpal and income, m any security, bond. note. stock, debenture, mortgage or other investment as specified in C.R.S Section 24-75-601.1, as may be amended. Investments may be made for those periods of tirae or with such dates of maturity as deemed prudent by the Director of Finance. All investments of Wheeler Endowment Funds shall be governed by the standard for investments as described at C.R,S. Section 15-1-304. (f') The Executive Director of the Wheeler Opera House shall submit a report to the City Council on an annual basis describing the Wheeler Endowment Fund's activities for the past year and outlining the goals of the Wheeler Opera House Board of Director for the next year pertaining to the Wheeler Endowment Fund. Section 2 This ordinance shall not have any effect on existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be construed and concluded under such prior ordinances. Section 3 If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 4 A public hearing on the ordinance shall be held on the /'~-~ ,:lay of ,~ , in the City Council chambers, Aspen City Hall, Aspen,~olorado. ~// ~ INTRODUCED, READ AND O~¢~)~ ~RED PUI~SHED asj~r0vided by law by the City Council of the City of Aspen on the ~ day of.x~t5~,~.~ ~, ~,~ ~..,~__ Hele~l~ahn KXl~tn~md, M~r ATTEST: Kathryn S. Koch, City Clerk FINALLY adopted, passed and approved this /~_ day, o~)~t~!~ ,~,B · He(en kalin~KiVan~Miyor -' '- ATTEST: Kathryn S. Koch, City Clerk Approved as to form: T6hn P. Worcester City Attorney JP W-12/5/2OO2-M:\city\cityatty~forms\ordinances.doc