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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/06/2005 - FIRST READING OF ORDINANCE NO. 096, 2005, APPROPRI ITEM NUMBER: 12 AGENDA ITEM SUMMARY DATE: September6, 2005 FORT COLLINS CITY COUNCIL STAFF: Chuck Seest Terri Bryant SUBJECT First Reading of Ordinance No. 096, 2005, Appropriating Proceeds from the Issuance of City of Fort Collins, Colorado, Wastewater Utility Enterprise, Sewer Revenue Refunding Bonds, Series 2005, dated October 3, 2005, in the Maximum Aggregate Principal Amount of$11,900,000, 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. 4, of the Board of the Wastewater Utility Enterprise, for the purpose of refunding, paying and discharging a portion of the Enterprise's outstanding Sewer Revenue Refunding Bonds, Series 1995. EXECUTIVE SUMMARY The Board of the Wastewater Utility Enterprise (the 'Board") will be considering at its next meeting, which is scheduled to take place after the regular September 6, 2005, Council meeting, Ordinance No. 4, of the Board of the Wastewater Utility Enterprise, which authorizes the issuance of City of Fort Collins Colorado, Wastewater Utility Enterprise, Sewer Revenue Refunding Bonds, Series 2005, Dated October 3, 2005, in the Maximum Aggregate Principal Amount of$11,900,000 (the "Bonds"). The Bonds will be issued to refund, pay and discharge the outstanding Sewer Revenue Refunding Bonds, Series 1995. The City will be paying off higher cost bonds with new bonds that will have lower interest rates. The final rates will be determined by selling the Bonds at a competitive sale on October 3, 2005. The City Charter authorizes the City to form enterprises to issue municipal revenue bonds and, since 1992, all utility bonds have been issued by the appropriate utility enterprise. However, the Charter grants the Council the power to appropriate the funds. Therefore, this action by the Council is necessary in order to appropriate the bond proceeds, approved by the Board, for the Wastewater Utility. Authorizing the issuance of the bonds and appropriating the proceeds are both necessary to complete the bond transaction. ORDINANCE NO. 096, 2005 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 REFUNDING BONDS, SERIES 2005, DATED OCTOBER 3, 2005, IN THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $11,900,000 IN THE WASTEWATER UTILITY FUND WHEREAS, upon passage on first and second reading of Ordinance No. 4 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 Refunding Bonds, Series 2005, Dated October 3, 2005, in the Maximum Aggregate Principal Amount of$11,900,000 (the"Bonds"); and WHEREAS, the issuance of the Bonds, and the appropriation of the proceeds thereof, is necessary to complete the refunding of the City's Sewer Revenue Refunding Bonds, Series 2005; and WHEREAS, proceeds from the Bonds of $11,900,000 were not included in the 2005 budget, the appropriation of which is necessary to authorize the payment to the refunded bond escrow agent and of bond issuance costs; 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; and WHEREAS, City staff has determined that the appropriation of the previously unappropriated proceeds of the Bonds in the amount of $11,900,000 will not cause the total amount appropriated in the relevant funds to 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 previously unappropriated proceeds of the Bonds in the amount of ELEVEN MILLION NINE HUNDRED THOUSAND DOLLARS ($11,900,000) are hereby appropriated in the Wastewater Fund for payment to the refunded bond escrow agend and 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 6th day of September, A.D. 2005, and to be presented for final passage on the 20th day of September, A.D. 2005. Mayor ATTEST: City Clerk Passed and adopted on final reading this 20th day of September, A.D. 2005. Mayor ATTEST: City Clerk