HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/19/2007 - FIRST READING OF ORDINANCE NO. 079, 2007, APPROPRI ITEM NUMBER: 9
AGENDA ITEM SUMMARY DATE: June 19, 2007
FORT COLLINS CITY COUNCIL STAFF: Chuck Seest
Terri Bryant
SUBJECT
First Reading of Ordinance No.079,2007,Appropriating Proceeds from the Issuance of City of Fort
Collins,Colorado,Stormwater Utility Enterprise,Storm Drainage Revenue Refunding Bonds,Series
2007,in the Maximum Aggregate Principal Amount of$21,820,000,in the Stormwater Utility Fund.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
The Ordinance would appropriate in the Stormwater Utility Fund proceeds from bonds proposed to
be issued in Ordinance No. 008, of the Board of the Stormwater Utility Enterprise, for the purpose
of refunding,paying and discharging all or a portion of the Enterprise's outstanding Storm Drainage
Revenue Refunding Bonds and Improvement Bonds, Series 1997, and a portion of the outstanding
Storm Drainage Revenue Bonds, Series 1999.
EXECUTIVE SUMMARY
The Board of the Stormwater Utility Enterprise will be considering at its next meeting, which is
scheduled to take place after the regular June 19, 2007, Council meeting, Ordinance No. 008 of the
Board of the Stormwater Utility Enterprise, which authorizes the issuance of City of Fort Collins
Colorado, Stormwater Utility Enterprise, Storm Drainage Revenue Refunding Bonds, Series 2007,
in the Maximum Aggregate Principal Amount of$21,820,000. The Bonds will be issued to refund,
pay and discharge all or a portion of the outstanding Storm Drainage Revenue Refunding Bonds and
Improvement Bonds,Series 1997,and a portion of the outstanding Storm Drainage Revenue Bonds,
Series 1999.
The City will be paying off higher cost bonds with new bonds that will have lower interest rates.
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 the funds. Therefore,
this action by the Council is necessary in order to appropriate the bond proceeds for the Stormwater
Utility. Authorizing the issuance of the bonds and appropriating the proceeds are both necessary
to complete the bond transaction.
ORDINANCE NO. 079, 2007
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PROCEEDS FROM THE ISSUANCE OF CITY OF FORT
COLLINS, COLORADO, STORMWATER UTILITY ENTERPRISE,
STORMWATER REVENUE REFUNDING BONDS, SERIES 2007, IN THE
MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $21,820,000
IN THE STORMWATER UTILITY FUND
WHEREAS, upon passage on first and second reading of Ordinance No 008, of the
Board of the City of Fort Collins, Colorado, Stormwater Utility Enterprise (the "Bond
Ordinance"), the Enterprise intends to issue City of Fort Collins, Colorado, Stormwater
Utility Enterprise, Stormwater Revenue Refunding Bonds, Series 2007, in the Maximum
Aggregate Principal Amount of$21,820,000 (the "Bonds"); and
WHEREAS,the issuance ofthe Bonds,and the appropriation of the proceeds thereof,
is necessary to complete the refunding, paying and discharging or all or a portion of the
Stormwater Enterprise's outstanding Storm Drainage Revenue Refunding Bonds and
Improvement Bonds,Series 1997,and a portion of the outstanding Storm Drainage Revenue
Bonds, Series 1999; and
WHEREAS, proceeds from the Bonds, in the amount of $21,820,000, were not
included in the 2007 budget,and the appropriation of such proceeds 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 Charter of the City of Fort Collins
(the "Charter") provides that an enterprise board of the City shall not exercise any power
reserved to the City Council by the Charter or otherwise, except the power to issue revenue
bonds and other obligations; and
WHEREAS, Article V, Section 9, of the Charter 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$21,820,000 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 any 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 TWENTY-ONE MILLION EIGHT-HUNDRED TWENTY THOUSAND DOLLARS
($21,820,000)are hereby appropriated in the Stormwater Fund for payment to the refunded
bond escrow agent 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 19th
day of June, A.D. 2007, and to be presented for final passage on the 17th day of July, A.D.
2007.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 17th day of July, A.D. 2007.
Mayor
ATTEST:
City Clerk