HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/01/2005 - FIRST READING OF ORDINANCE NO. 027, 2005, APPROPRI ITEM NUMBER: 11
AGENDA ITEM SUMMARY DATE: March 1, 2005
FORT COLLINS CITY COUNCIL STAFF: Michael B. Smith
Terri Bryant
Brian Janonis
Chuck Seest
SUBJECT
First Reading of Ordinance No. 027, 2005, Appropriating Bond Proceeds in the Water Fund.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
Through the adoption of Resolution 2003-121, the Council approved exercising the City's
Option from the North Poudre Irrigation Company ("NPIC") to proceed with the development of
the Halligan Reservoir enlargement project. The Board of the Water Utility Enterprise of the
City of Fort Collins authorized the issuance of a non-interest bearing water revenue bond
("Bond") to secure the payment obligations. The Bond is a 27-year, $4,150,781.22, non-interest
bearing bond.
The City must pay annual payments to NPIC for the next 20 years in the amount of$188,223.51
and annual payments of an average amount of $55,229.84 for the last 7 years of the bond. The
value of the series of payments in today's dollars (net present value) is $2,476,446.24. This is
also the value of the asset and long-term obligation that was placed on the Water Utilities books
in 2004.
EXECUTIVE SUMMARY
A $4,150,781.22 non-interest bearing bond was issued to the City of Fort Collins Water Utility
Enterprise to acquire from the North Poudre Irrigation Company (NPIC) the property and rights
it owns that were necessary to proceed with the permitting and development of the Halligan
Reservoir Enlargement Project, however, no appropriation was done at that time. The transfer
and sale of the property to the City of Fort Collins closed on January 22, 2004. Because the debt
consists of a non-interest bearing bond, the value of the investment in the property is calculated
at the net present value of the payment streams required in the bond obligation, which results in
an appropriation for $2,476,446.24 in constructive bond proceeds. The City will commit to the
annual payments, which includes the principal and the interest as imputed, for the next 27 years.
A payment schedule is attached. The Water Utility will pay the debt primarily from
development fees paid to the City.
March 1, 2005 -2- Item No. 11
This Ordinance appropriates the constructive bond proceeds to the Halligan Project.
ATTACHMENTS
1. Payment schedule for Halligan Bonds
ATTACHMENT
Halligan Bonds
Imputed Annual
Years Principal Interest P&I Pvmt.
2004 63,912.77 124,309.55 188,223.51
2005 67,199.40 121,022.92 188,223.51
2006 70,655.04 117,567.28 188,223.51
2007 74,288.37 113,933.95 188,223.51
2008 78,108.55 110,113.77 188,223.51
2009 82,125.18 106,097.14 188,223.51
2010 86,348.35 101,873.97 188,223.51
2011 90,788.70 97,433.62 188,223.51
2012 95,457.38 92,764.94 188,223.51
2013 100,366.15 87,856.17 188,223.51
2014 105,527.34 82,694.98 188,223.51
2015 110,953.94 77,268.38 188,223.51
2016 116,659.59 71,562.73 188,223.51
2017 122,658.65 65,563.67 188,223.51
2018 128,966.20 59,256.12 188,223.51
2019 135,598.11 52,624.21 188,223.51
2020 142,571.06 45,651.26 188,223.51
2021 149,902.58 38,319.74 188,223.51
2022 157,611.11 30,611.21 188,223.51
2023 165,716.05 22,506.27 187,925.67
2024 88,091.98 22,519.04 110,611.82
2025 92,621.99 17,989.03 110,611.82
2026 38,228.80 5,191.94 43,420.31
2027 40,194.67 3,226.08 43,420.31
2028 34,204.28 4,645.36 38,851.24
2029 18,372.61 1,474.61 19,846.68
2030 19,317.39 529.82 19,846.68
2,476,446.24 4,150,781.23
ORDINANCE NO. 027, 2005
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING BOND PROCEEDS IN THE WATER FUND
WHEREAS,by adopting Resolution 2003-121,the Council approved the option to proceed
with the development of the Halligan Reservoir Enlargement Project; and
WHEREAS, the City of Fort Collins Water Fund is estimated to have a $87,200,000 fund
balance from prior year reserves at the end of 2004; and
WHEREAS, $2,476,446 of such funds have not been committed to or appropriated for any
other use and are available for expenditure of the bond proceeds received in 2004 in conjunction
with the exercise of the option to proceed with the enlargement of the Halligan Reservoir; and
WHEREAS,Article V, Section 9,of the Charter of the City of Fort Collins permits the City
Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as
may be available from reserves accumulated in prior years,notwithstanding that such reserves were
not previously appropriated.
NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that there is hereby appropriated for expenditure from prior year reserves in the Water
Fund , the amount of TWO MILLION FOUR HUNDRED SEVENTY SIX THOUSAND FOUR
HUNDRED FORTY SIX DOLLARS($2,476,446)for the Halligan Reservoir Enlargement Project.
Introduced, considered favorably on first reading, and ordered published this 1st day of
March, A.D. 2005, and to be presented for final passage on the 15th day of March, A.D. 2005.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 15th day of March, A.D. 2005.
Mayor
ATTEST:
City Clerk