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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/20/2000 - FIRST READING OF ORDINANCE NO. 77, 2000, APPROPRIA AGENDA ITEM SUMMARY ITEM NUMBER: 22 DATE: June 20, 2000 FORT COLLINS CITY COUNCIL STAFF: Dave Agee SUBJECT: First Reading of Ordinance No. 77,2000,Appropriating Proceeds from the Issuance of City of Fort Collins, Colorado, Wastewater Utility Enterprise, Sewer Revenue Bonds, Series 2000, Dated July 1, 2000, in the Aggregate Principal Amount of$5,665,000, in the Wastewater Utility Fund. RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT: The Ordinance would appropriate in the Wastewater Utility Fund proceeds from bonds proposed to be issued in Ordinance No. 3, 2000, of the Board of the Wastewater Utility Enterprise, for the acquisition and construction of sanitary sewer system improvements and the cost of issuing the bonds. EXECUTIVE SUMMARY: The Board of the Wastewater Utility Enterprise will be considering at its next meeting, which is scheduled to take place after the regular June 20, 2000, Council meeting, Ordinance No. 3, of the Board of the Wastewater Utility Enterprise,which authorizes the issuance of City of Fort Collins, Colorado, Wastewater Utility Enterprise, Sewer Revenue Bonds, Series 2000,Dated July 1, 2000, in the Aggregate Principal Amount of$5,665,000. The Bonds will be issued to fund odor control systems for the Mulberry and Drake Water Reclamation Facilities as well as an ultraviolet disinfection system at the Mulberry plant and sewer relief and realignment in connection with the Locust Street Outfall Stormwater Project. The passage of Amendment 1 (the TABOR Amendment) by the Colorado voters in 1992, required the City to form enterprises in order for its utilities to be able to issue municipal bonds without an election. Since that time,all utility bonds have been issued by the appropriate utility enterprise. However,the City Charter grants only the Council the power to appropriate funds. Therefore,this action by the Council is necessary in order to appropriate bond proceeds for the Wastewater Utility. Authorizing the issuance of the bonds and appropriating the proceeds are both necessary to complete the bond transaction. • ORDINANCE NO. 77, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PROCEEDS FROM THE ISSUANCE OF CITY OF FORT COLLINS, COLORADO, WASTEWATER UTILITY ENTERPRISE, SEWER REVENUE BONDS, SERIES 2000, DATED JULY 1, 2000, IN THE AGGREGATE PRINCIPAL AMOUNT OF $5,665,000 IN THE WASTEWATER UTILITY FUND WHEREAS, upon passage on first and second reading of Ordinance No. 3 of the Board of the City of Fort Collins, Colorado, Wastewater Utility Enterprise (the "Bond Ordinance"), the Enterprise intends to issue City of Fort Collins, Colorado, Wastewater Utility Enterprise, Sewer Revenue Bonds, Series 2000, Dated July 1, 2000, in the Aggregate Principal Amount of $5,665,000 (the"Bonds'); and WHEREAS, the issuance of the Bonds, and the appropriation of the proceeds thereof, is necessary to complete the construction of improvements in the City's sanitary sewer system; and WHEREAS, Section 19.3(b) of Article V of the City Charter provides that an enterprise board of the City shall not exercise powers reserved to the Council by the City Charter or otherwise (other than the power to issue revenue bonds and other obligations); and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins permits the . City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in conjunction with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the net proceeds of the Bonds are hereby appropriated in the Wastewater Utility Fund for expenditure for the cost of the Project, as defined in the Bond Ordinance, and for bond issuance costs, contingent upon the final adoption of the Bond Ordinance and the final sale and issuance of the Bonds by the Enterprise. Introduced, considered favorably on first reading, and ordered published this 20th day of June, A.D. 2000, and to be presented for final passage on the 18th day of July, A.D. 2000. Mayor ATTEST: City Clerk Passed and adopted on final reading this 18th day of July, A.D. 2000. Mayor ATTEST: City Clerk