HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/20/2009 - SECOND READING OF ORDINANCE NO. 002, 2009, APPROPR ITEM NUMBER: 8
AGENDA ITEM SUMMARY DATE: January 20, 2009
FORT COLLINS CITY COUNCIL STAFF: Chuck Seest
Terri Bryant
SUBJECT
Second Reading of Ordinance No. 002, 2009,Appropriating Proceeds from the Issuance of City of
Fort Collins, Colorado, Wastewater Utility Enterprise, Sewer Revenue Refunding Bonds, Series
2009, Scheduled to be Sold the Week of January 20, 2009, In the Maximum Aggregate Principal
Amount of$34,000,000 in the Wastewater Utility Fund.
RECOMMENDATION
Staff recommends adoption of this Ordinance on Second Reading.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on January 6, 2009, appropriates the
Wastewater Utility Fund proceeds from bonds issued by Ordinance No. 003, of the Board of the
Wastewater Utility Enterprise,for the purpose of funding a major capital improvement project at the
Mulberry Reclamation Facility. The improvements including both design and construction of the
new facility will total approximately$34 million.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary - January 6, 2009.
(w/o original attachments)
ATTACHMENT 1
ITEM NUMBER: 11
AGENDA ITEM SUMMARY DATE: January 6, 2009
FORT COLLINS CITY COUNCIL STAFF: Chuck Seest
Terri Bryant
SUBJECT
First Reading of Ordinance No.002,2009,Appropriating Proceeds from the Issuance of City of Fort
Collins, Colorado, Wastewater Utility Enterprise, Sewer Revenue Refunding Bonds, Series 2009,
Scheduled to be Sold the Week of January 20,2009, In the Maximum Aggregate Principal Amount
of$34,000,000 in the Wastewater Utility Fund.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
The Ordinance will appropriate W ter tility Fulproceeds from bonds proposed to
be issued in Ordinance No. 003, of the Board of the Wastewater Utility Enterprise, for the purpose
of funding a major capital improvement project at the Mulberry Reclamation Facility. The
improvements including both design and construction of the new facility will total approximately
$34 million.
EXECUTIVE SUMMARY
Immediately following the January 6, 2009 regular Council meeting, the Board of the Wastewater
Utility Enterprise will consider on Second Reading,an Ordinance which authorizes the issuance of
City of Fort Collins Colorado, Wastewater Utility Enterprise, Sewer Revenue Bonds, Series 2009,
in the Maximum Aggregate Principal Amount of$34,000,000. The Bonds will be issued to pay for
a major capital improvement pro' tat the Mulbe ec do acility.
The passage of the TABOR ndmen y the o o vot m 1992, required the City to form
enterprises in order for its utili to e e ss munici 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 the funds. Therefore, this action by the
Council is necessary in order to appropriate the bond proceeds for the Wastewater Utility.
Authorizing the issuance of the bonds and appropriating the proceeds are both necessary to complete
the bond transaction. The final rates will be determined by selling the bonds at a competitive sale
in January 2009.
January 6, 2009 -2- Item No. 11
ATTACHMENTS
1. Council Finance Committ Vnutte -Nov ber17 2002. Excerpt from the Wate oares er 8.
COPY
ORDINANCE NO. 002, 2009
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 2009, SCHEDULED TO BE SOLD THE WEEK OF JANUARY 20, 2009, IN
THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $34,000,000
IN THE WASTEWATER UTILITY FUND
WHEREAS, upon passage on first and second reading of Ordinance No. 003 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 2009, scheduled to be sold the week of
January 20, 2009, in the Maximum Aggregate Principal Amount of$34,000,000 (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 2009;
and
WHEREAS, the bond proceeds will be used to make improvements at the Mulberry
treatment plant including upgrading the plant's secondary treatment processes by removing the
trickling filter and its associated facilities and installing a new aeration basin and associated
facilities as well as install new odor control improvements; and
WHEREAS, proceeds from the Bonds of $34,000,000 were not included in the 2009
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 $34,000,000 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
THIRTY FOUR MILLION DOLLARS ($34,000,000) are hereby appropriated in the
Wastewater Fund for the purpose of funding a major capital improvement project at the
Mulberry Reclamation Facility, including both design and construction of the new facility.
Introduced, considered favorably on first reading, and ordered published this 6th day of
January, A.D. 2009, and to be presented for final passage on th h day of January, A.D. 2009.
dze � 4 1
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 20th day of January, A.D. 2009.
Mayor
ATTEST:
City Clerk