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HomeMy WebLinkAbout027 - 03/19/1985 - AUTHORIZING THE ISSUANCE OF DOWNTOWN DEVELOPMENT AUTHORITY TAX INCREMENT SUBORDINATE NOTE, SERIES 19 ORDINANCE NO. 27 1985 AN ORDINANCE AUThORIZING THE ISSUANCE OF' THE CITY OF FORT CCLLINS , COLORADO DOWNTOWN DEVELCFNFNT AUTIiCRITY TAX INCP,FMFNT SUBORDINATE NOTE, SERIES 1985A, -It-- THE PRINCIPAL A"oUNT OF $510, 000 . WHFREAS , on April 21 , 1981 , the City of Fort Collins , Cclerec.c (the "City") adopted Ordinance No. 46 , 1983 , establish- ing the Fort Collins, Colorado Downtown Development Authority (the "Authority") ; and WFFREAS , the Authority is a body corporate duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Downtown Development Authorities Act of the State of Colorado, Section. 31-25-801 et seq. , C.R.S . , as amended (the "DDA Act") , and the powers of the Authority include the power to plan and propose development and redevelopment of public and private property within the central business district of. the City hereinafter defined (the "Distri.ct") ; and WHEREAS , the Authority' s Plan. of Development was approved by the City on September 8 , 1981, pursuant to which the Authority now proposes tc undertake the acquisition of real property, demolishing of existing structures , upgrading of public utilities and rights of way, and conducting investigations and studies within. the District (the "Project") which includes acquisition of the real property described in Exhibit A attached hereto; and WHEREAS , on June 1, 1982 , a special election was held pursuant to Section 31-25-807 (b) of the DDA Act approving the issuance by the City of up to $25, 000 ,000 in tax increment obligations to finance projects of the Authority; and WHEREAS , the City is empowered by its Charter and the DDA Act to issue tax increment notes, and to make such tax increment notes payable from and secured by a pledge of the proceeds of certain incremental ad valorem property taxes collected within the District, as authorized by Section 31-25-807 (3) (a) of the DDA Act; provided, however, no ad valorem taxes of the: City shall be used or pledged for such purposes except to the extent such ad valorem taxes constitute a part of the Pledged Revenues; and WHEREAS , the Council of the City (the "Council") hereby determines that it is reasonable, necessary and prudent at this time to issue its Downtown Development Authority Tax Increment Subordinate Note, Series 1985A, in order to purchase real property to carry out the Project and further to provide for the payment of such Note as hereinafter provided; and WHEREAS , the City has received a proposal for the purchase of such Note upon terms favorable to the City, and the Council has determined to accept the same. LE IT ORDAINED BY THE COUNCIL OF THE CITY OF FOPS' CCLLINS : Section 1 . Definitions . As used in this Ordinance , the following terms shall have the following meanings, unless the context otherwise requires : (a) "Authority" meai.s the Fort Collins, Colcrado Downtown Development Authority. (b) "City" means the City of. Fort Collins, Colorado. (c) "DDA Act" means the Downtown. Development Authorities Act of the State of Colorado, Section 31-25-101 et seq. , C.F..S . , as amended. (d) "District" means the area described in the Authority' s Plan of Development approved by City' s Ordinance No. 46, 1981 , or. September 8, 1981 , as amerided by the City' s Ordinance No. 162 , 1981 and Ordinance No. 2, 1983 , and as may be further amended from time to time in compliance with the DDA Act. (e) "Federal Securities" means (to the extent the following are lawful investments for funds of the City) direct obligations of the United States of America or obligations unconditionally guaranteed by the United States of America. (f) "Fiscal Year" means the year period beginning on any January 1 and ending on the next following December 31 . (g) "Note" means the City of Fort Collins, Colorado Downtown Development Authority Tax Increment Subordinate Note, Series 1985A, authorized to be issued pursuant to Section 6 hereof. (h) "Note Fund" means the City of Fort Collins, Colorado Downtown Development Authority Tax Increment Subordinate Note Fund established pursuant to Section 9 hereof, including the Principal and Interest Account therein. (i) "Noteholder" or "Holder of Note, " or any similar term, means any person who shall be the holder of any outstanding Note. For the purpose of Noteholder' s voting rights or consents, any Note held for the account of the City, directly or indirectly, shall not be counted. (j) "Opinion of Counsel" means a written opinion of an attorney or firm of attorneys of national reputation in the field of municipal bond law. Any opinion of such counsel may be based upon, insofar as it relates to factual matters, information which is in the possession of the City as shown by a certificate or opinion of, or representation by, an - 2 - officer or officers of the City, unless such counsel ]cn.ows , or in the exercise of reasonable care should have known, that the certificate or opinion or representation with respect to the matters upon which his opinion may be based , as aforesaid , is erroneous. (k) "Ordinance" means this Ordinance, as from time to time amended in accordance with Section 15 hereof. (1) "Paying Agent" means any paying agent or paying agents provided by the City pursuant to this Ordinance. (m) "Plan of Development" means the plan adopted by the City by Ordinance No. 46, 1981 , including the project described in Exhibit A hereto. (n) "Pledged Revenues" means, for each Fiscal Year, that portion of ad valorem property taxes produced by the levy at the rate fixed each year by or for each public body having taxing power over all or any portion, of the District upon that portion of the valuation for assessment of all taxable property within the District which is in excess of the valuation for assessment of all taxable property within the District on the Property Tax Base Dates, all in accordance with Section 31-25-£07 (3) (a) (II) of the DDA Act; provided, however, that such amount shall be reduced by the amount of any collection fees lawfully payable to the City or Larimer County for services rendered in connection with the collection of such ad valorem property tares; and provided, further however, that in the event of a general reassessment of taxable property in the City, the valuation for assessment of taxable property within the District on the Property Tax Base Dates will be proportionately adjusted in accordance with such reassessment to the extent required by the DDA Act or other applicable law. (o) "Project" means the acquisition of the Real Property, demolition of existing structures, upgrade of public utilities and rights of way, and conducting investigations and studies within the District, all in furtherance of and pursuant to the Plan of Development. (p) "Property Tax Base Dates" means September 15, 1980 , with respect to the District described in the City' s Ordinance No. 46, 1981, and means September 15 , 1981 with respect to the area added to the District by virtue of the City' s Ordinance No. 162, 1981 , and means September 15, 1982 with respect to the area added to the District by virtue of the City ' s Ordinance No. 2 , 1983 , and means the applicable date pursuant to the DDA Act with respect to such areas as may be added to the District by appropriate legislative action of the City. 3 - (q) "Purchaser" means Jack E. L. Russell arc. Fisie Mae Russell of Fort Collins, Colorado . (r) "Real Property" means the real property described in Exhibit A attached hereto. (s) "Series 1964A Bonds" means the City' s Downtown nevelopment Authority Tax Increment Bonds, Series 1984A, Dated October 1 , 1984 , in the aggregate principal amount of Y8, 200 , 000 . Section. 2 . Amount, Issuance and Purpose of Note. Under and ursuant to the DDA Act, the Citp' s Charter, and this Ordinance, the Note of the City in a principal amount of $530 , 000 , shall be issued by the City to aid in the financing of the Project and for other activities and operations related thereto as hereinafter provided. The proceeds of any Note shall be used solely to finance the Project and to pay the Authority' s and the City ' s costs in connection with the issuance of the Note. The City hereby approves and authorizes the commencement of the Project subject to such further terms and condition: as the City or the Authority may require in their sole discretion. The Note shall be a special and limited obligation of the City and shall be payable and collectible as to principal and interest solely out of the Pledged Revenues as and to the extent hereinafter provided. The Note shall not constitute a debt or an indebtedness of the City within the meaning of any constitutional or statutory provision or limitation of the State of Colorado or of the Charter of the City and shall not be considered or held to be a general obligation of the City. Except for certain Pledged Revenues, no ad valorem taxes, water or sewer revenues , or sales and use taxes of the City are pledged to the payment of the principal of or interest on the Note. The City may, however, at any time, at its sole option, deposit in the Note Fund any additional unpledged moneys legally available for such purpose. Neither the members of the Council nor any persons executing the Note shall be liable personally on the Note . The validity of the Note is not and shall not be dependent upon: (i) the completion of the Project or any part thereof, or (ii) the performance by anyone of any obligation relative to the Project, or (iii) the proper expenditure of the proceeds of the Note. Nothing in this Ordinance shall preclude : (i) the payment of the Note from the proceeds of refunding bonds issued pursuant to law, or (ii) the payment of the Note from any legally available funds including the proceeds derived by the City or the Authority from the leasing, sale or other disposition of real property within the District; provided, however, that in no evert (i) shall more than 25% of the revenues from the Project or the - 4 - leasing, sale or ether disposition of the Fxoject, be used to pay principal of or interest on the Bonds, or (ii) shall payment of the principal of or interest on the bonds be derived from, secured cr guaranteed by any owner or principal user of the Project. There is hereby irrevocably pledged to the payment of the principal of and interest on the Note, the Fledged Revenues , as and when received; provided, however: (i) the pledge and lien on the Pledged Revenues hereby created shall be junior and subordinate to the pledge and lien on the Pledged Revenues created and granted in connection with the issuance of the City' s Series 19£4A Bonds; (ii) Pledged Revenues shall only be used to pay principal of and interest on the Note when available in compliance with certain revenue tests hereinafter and in the Note defined; and (iii) ad valorem taxes of the City shall not be used or pledged for such purposes except to the extent such ad valorem taxes constitute a part of the Pledged Revenues. Subject to the provisions of the preceding paragraph hereof, the Pledged Revenues, as received by the City, shall immediately be subject to the lien of the pledge hereof, without any physical delivery thereof, any filing or any further act and the lien of such pledge shall be valid and binding as against all persons having claims of any kind in tort, contract or otherwise against the City, irrespective of whether such persons have notice thereof. Section 3 . Note Execution and Details. The Note shall be issued as a single typewritten registered note in the denomination of $510, 000 . 00. The City will cause to be kept at the office of the City Clerk a record of the principal balance of the Note outstanding and on which, subject to the terms of such Note, provide for the registration of ownership of the Note. The Note shall not be transferable except upon the death or incompetency of any holder of the Note, in which event the Note shall be transferable by operation of law or by the duly authorized personal representative of such deceased or incompetent holder of the Note, or by such representative' s attorney duly authorized in writing, upon delivery of the Note together with a written instrument of transfer, duly executed by such representative or its duly authorized agent, and a legal opinion as to exemption from registration. under Federal or State securities laws satisfactory to the City Clerk. Upon such transfer the City Clerk shall note the date of registration and the name and address of the new Holder in such record and in the registration blank appearing on the Note. In case any Note issued hereunder shall become mutilated or be destroyed or lost, the City shall, if not then prohibited by law, cause to be executed and delivered, a new Note of like outstanding principal amount, number and tenor in exchange and substitution for and upon cancellation of such mutilated Note, or in lieu of and in substitution for such Note destroyed or lost, - 5 - �t 4k upon the Holder' s paying the reasonable expenses and charges of the City in connecticr, thereorith, and in the case of a Note destroved or lost, the filing with the City of evidence satisfactory to the City that such Note was destroyed or lost, and furnishing the City with indemnity satisfactory to it. If the mutilated, destrc}ed , or lost Note has already matured or been called for redempticn in accordarce with its terms it s}i< '1 not be necessary to issue a new rote prior to payment. The City may deem and treat the person iti whose name the Ncte is last recorded as the absolute owner of such Note for the purpose of making payment of or on account of the principal balance of the Note and interest and for all other purposes whatsoever, and the City shall not be affected by any notice to the contrary. The Note has been issued without regi.strc.tion under state or other securities laws, pursuant to an exemption for such issuance; and accordingly the Note may not be assigned or transferred in whole or part, nor may a participation interest in the Note be given pursuant to any participation agreement, except in accordance with applicable registration requirements or an applicable exemption from such registration requirements . All payments to any such registered Holder shall be valid and effectual to satisfy and discharge the liability upon the Note to the extent of the sum or sums so paid. The Note shall be signed by and on behalf of the City with the manual signature of the Mayor, shall bear the seal of the City, shall be signed and attested with the manual signature of the City Clerk, and shall be countersigned with the manual signature of the City Director of Finance . Should any officer whose signature appears or, the Note cease to be such officer before delivery of the Note to the purchasers thereof, such signature shall nevertheless be valid and sufficient for all purposes. Section 4 . Form of Note. The Note shall be in substantially the following form: [This space intentionally left blank] - 6 - [Form of Note] UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF LARIMER CITY OF FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY TAX INCREMENT SUBORDINATE NOTE. SERIES 1985A No. R-1 $510 , 000 The CITY OF FORT COLLINS (the "City" ) , in the County of Larimer and State of Colorado , for value received, hereby promises to pay to JACK E. L. RUSSELL and ELSIE MAE RUSSELL, as joint tenants with right of survivorship, or registered assigns , on April 1 , 1995 , unless sooner paid as hereinafter provided, solely from the special fund provided therefor and hereinafter specified, the principal sum of FIVE HUNDRED TEN THOUSAND DOLLARS On April 1 of each year, the City shall make a principal payment to the holders of this Note pursuant to paragraphs (a) , (b) or (c) below as may be applicable on April 1 of each year: (a) So long as the City of Fort Collins, Colorado Downtown Development Authority Tax Increment Bonds, Series 1984A, dated October 1 , 1984 (the "Series 1984A Bonds" ) are secured by a lien on Sales and Use Tax revenues of the City, the City shall make a principal payment to the Noteholders in an amount equal to the amount, if any, which, after taking into account the principal payment proposed to be made on this Note, will result in debt service coverage ratios for the corresponding years on account of the City of - 7 - Fort Collins Tax Increment Fund as of December 31 for the then current or next succeeding Fiscal Year at least equal to the "DEBT SERVICE CCVERAGE" ratios shown .in F;hibit A to this Note; or (b) In the event the Series i984A Bonds are no longer secured by a lien on Sales and Use Tax revenues of the City and this Note is not on a parity with the Series 1984A Bonds as to payment of principal and interest from Pledged Revenues hereinafter described, the City shall make a principal payment to the Noteholders in an amount equal to the amount, if any, which, after taking into account the principal payment proposed to be made on this Note, will result in "DEBT SERVICE COVERAGE" ratios as referred to in Exhibit A to this Note on account of the City of Fort Collins Tax Increment Fund as of December 31 for the then current and the next two succeeding Fiscal Year at least equal to 1. 0; or (c) In the event this Note is on a parity with the Series 1984A Bonds as to payment of principal and interest from Pledged Revenues, the sum which when added to the interest payable for the current twelve (12) month period will result in a combined principal and interest payment to the holder hereof sufficient to pay and amortize on a level basis the Note in full by April 1, 1995; provided, however, that without the written consent of the holders hereof no such payment shall be made pursuant to (a) or (b) hereof which shall exceed in the aggregate in any calendar year the sum of $50 , 000. Interest shall be paid hereon from the date hereof, to the maturity date hereof at the rate of ten percent (10%) per annum, payable October 1 , 1985, and semiannually thereafter on April 1 and October 1 of each year. Except as provided in the Ordinance hereinafter described, interest shall be payable solely from the special fund provided therefor in an amount not to exceed the amount of Pledged Revenues received in any year which are not 8 - needed to pay principal of, premium, if any, and interest on the Series 1984A Bonds and any obligations issued on a parity with the Series 1984A Bonds due or coming due during the Fiscal Year in which such Pledged Revenues are received. In addition, the City shall pay interest on overdue installments of principal and interest at the rate of interest borne by this Note. The principal of this Note is payable in lawful money of the United States of America, withcut deduction for exchange or collection charges, out of the special fund hereinafter specified, but not otherwise, at the office of the Director of Finance of the City, Fort Collins, Colorado, or any other Paying Agent duly appointed by the said City, upon presentation of this Note as payments of principal hereon become due. All payments of principal shall be noted on the principal payment schedule provided below. Interest on this Note is payable in like manner to the registered owner hereof, by check or draft mailed to the registered owner at his address as it appears on the registration books of the City kept by the City Clerk. If upon presentation at maturity payment of this Note is not made as provided herein, interest shall continue hereon at the interest rate specified herein until the principal hereof is paid in full. Except for annual principal payments as set forth above, this Note is not redeemable prior to its maturity date except with the consent of the holder hereof. This Note is a special and limited obligation of the City issued by the Council of the City of Fort Collins , Colorado, on behalf of said City and the Fort Collins, Colorado Downtown Development Authority for the object and purpose of defraying, in whole or in part, the costs of a certain project of the said Authority, including the costs of acquiring the Real Property described in the Ordinance and land assembly and are to be paid from certain limited Pledged Revenues hereinafter described; provided, however, ad valorem taxes of the City shall not be used or pledged for such purposes except to the extent such ad valorem taxes constitute a part of the Pledged Revenues, to be paid into - 9 - the special fund hereinafter described, pursuant to, by virtue of, and in full conformity with the Constitution of the State of Colorado, the Downtown Development Authorities Act of the State of Colorado, Section 31-25-801 et sea. , C. R. S . , as amended , the Charter of the City, and all other laws of the State of Coloradc+ thereunto enabling, and pursuant to an ordinance of the Council_ of the City dull., adopted prior to the issuance of this Note ; and it is hereby recited, certified and warranted that all the requirements of law have been fully complied with by the proper officers of the City in issuing this Note. Payment for the principal of and interest on this Note shall be made solely from, and shall be secured by an irrevocable subordinate pledge, pursuant to the ordinance authorizing the issuance hereof (the "Ordinance") , of a special fund identified as the "City of Fort Collins Downtown Development Authority Tax Increment Subordinate Note Fund, " into which fund the City has covenanted in the Ordinance to pay certain net proceeds of the aforesaid Pledged Revenues; provided, however: (i) the pledge and lien on the Pledged Revenues hereby created shall be junior and subordinate to the pledge and lien on the Pledged Revenues created and granted in connection with the issuance of the City ' s Series 1484A Bonds; and (ii) ad valorem taxes of the City shall not be used or pledged for such purposes except to the extent such ad valorem taxes constitute a part of the Pledged Revenues, deposited in the aforesaid special fund. It is hereby recited, certified and warranted that for the payment of this Note and of the interest hereon, the City has created and will maintain said special fund and will deposit therein certain net proceeds of the aforesaid Pledged Revenues ; provided, however, ad valorem tares of the City shall not be used or pledged for such purposes except to the extent such ad valorem taxes constitute a part of the Pledged Revenues, and out of said special fund, as an irrevocable charge thereon, will pay this Note and the interest hereon. 10 - The Ordinance permits the City to issue additional notes or other obligations payable in whole or part out of the Pledged Revenues or the Note Fund which stand on a parity or equality with this Note. "Pledged Revenues" means, for each Fiscal Year (as defined in the Ordinance) , that portion of ad valorem property taxes produced by the levy at the rate fixed each year by or for each public body having taxing power over all or any portion of the District (as defined in the Ordinance) upon that portion of the valuation for assessment of all taxable property within the District which is in excess of the valuation of assessment of the taxable property within the District on the Property Tax Base Dates defined in the Ordinance; provided, however, that such amount shall be reduced by the amount of any collection fees lawfully payable to Larimer County or the City for services rendered in connection with the collection of such ad valorem property taxes; and provided further, however, that in the evert of a general reassessment of taxable property in the City, the valuation for assessment of taxable property within the District on the Property Tax Base Dates, will be proportionately adjusted in accordance with such reassessment. e The City covenants and agrees with the holder of this Note and with each and every person who may become the holder hereof that it will keep and will perform all of the covenants contained in this Note and the Ordinance authorizing the issuance hereof. Reference is hereby made to the Ordinance of the Council of the City authorizing the issuance of this Note for a description of the provisions, terms and conditions upon which this Note is issued and secured, including, without limitation, the nature and extent of the security for this Note, provisions with respect to the custody and application of the proceeds of this Note, the collection and disposition of the proceeds charged with and pledged to the payment of the principal of and interest on this - 11 - Note, a description of the special fund referred to above and the nature and extent of the security and pledge afforded thereby for the payment of this Note and the interest hereon and the manner of enforcement of said pledge, and the rights , duties , inununit .es and obligations of the City and the members of its Council and also the rights and remedies of the holders of this Note. This Note is not a negotiable instrument and the Note shall not be transferable by the Holder, except in the event of the death or incompetency of any holder hereof. It is hereby recited, certified and declared that any and all acts , conditions and things required to exist, to happen and to be performed precedent to and in the issuance of this Note exist, have happened and have been performed in due time, form and manner as required by the Constitution and laws of the State of Colorado. IN TESTIMONY WHEREOF, the Council of the City of Fort Collins, Colorado, has caused this Note to be signed by and on behalf of the City with the manual signature of the Mayor of the City, to be sealed with the seal of the City, to be signea and attested with the manual signature of the City Clerk of the City, to be countersigned with the manual signature of the Director of Finance of the City and to be dated as of the day of CITY OF FORT COLLINS, By: (Manual Signature (SEAL) Mayor ATTEST: (Manual Signature) City Clerk Countersigned: (Manual. Si(Inature) Director of Finance 12 - EXHIBIT A TO THE CITY OF FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY TAX INCREMENT SUBOI:DINATE NOTE, SERIES 19g5A CITY OF FORT COLLINS TAX INCREMENT FUND PROJECTED CASH FLOW FOR THE YEARS ENDING DECEMBER 31, 1904 THROUGH 1796 (000's Omitted) - - - - - - - - - - - - For the Years Endi ng December 31- - - - - - - - FUNDS AVAILABLE 1984 1983 1986 1987 1988 1909 1990 1991 1992 1993 1994 1993 Beginning Cash - January 1 (1) 337 1,104 783 332 408 329 298 319 393 247 146 80 Property Tax Revenues-Table I 234 299 470 609 684 736 788 840 B91 943 995 1 ,047 Capitalized Interest 413 O O (r 0 0 0 0 0 0 O �! Accrued Interest 129 O O 4 C. 0 0 0 O 0 O Interest Earnings from Bond Reserve Fund (2) 9 110 110 Ili, 110 1IV I10 110 110 tli? 110 11(i Interest Earnings from Capitalized Interest (2) 3 3i, C. i, 0 O O O G 0 C. ii Interest Earnings from Construction Proceeds (1) 130 40 0 0 0 0 U 0 O 0 0 V Interest Earnings 23 30 63 44 33 26 24 26 32 20 12 6 Coverage Account 30 0 0 0 O O i, p O (? O TOTAL FUNDS AVAILABLE FOR DEBT SERVICE 1 ,306 1,683 1,434 1 ,315 1 ,234 1 ,201 1 ,220 1 ,294 1 ,428 1 ,320 1 ,263 1 ,244 LESS DEBT SERVICE (Table IV) 202 900 882 907 903 903 901 B99 1 , 181 1 ,174 1 , IB3 1 , 178 ENDING CASH - December 31 1,104 783f =2 40U 3C9 298 319 393 247 146 80 66 DEBT SERVICE COVERAGE (4) 1.99' 1.71 1.61 1.41 1.'.B 1.4(l 1.:50 1.23 1. 14 1 .f,7 1.06 ( 1) Source: City of Fort Collins Finance Director (C) Assume 1I% reinvestment rate for Bond Reserve Fund, And 101: reinvestment rate for Capitalized Interest. I :) D% of Beginning Cash Balance beginning ,n 1906. (4) Total Iunds available for Debt Service less Bond Reserve Fund Inter est Earnings, divideet by Debt Service Requirements less Pond Reserve Fund Interes t Earnings. - 13 - SCHEDULE OF PRINCIPAL PAYb_ENTS ON THE N07L AhOUNT OF CUTSTAi DING NOTATION PRINCIPAL DATE PAYMENT MADE BY BALANCE PROVISION FOR REGISTRATION This Note is registered in the office of the City Clerk of the City of Fort Collins, in Fort Collins, Colorado , as Registrar, or her successor, ill the name of the last owner listed below; and the principal and interest on this Note shall be payable only to such owner, all in accordance with the ordinance authorizing the issuanco of this Note. No transfer of this Note shall be valid unless made on the registration books kept by the Registrar by the registered owner or his duly authorized attorney and noted in the registration blank below. NAME OF REGISTERED OWNER DATE OF AND ADDRESS, TAX I.D. NUMBER SIGNATURE OF REGISTRATION OR SOCIAL SECURITY NUMBER REGISTRAR [End of Form of Note] - 14 - Section 5 . Issuance and Description of Note. The Note shall be issued in the principal amount of $510 ,000 and shall be designated "City of Fort Collins , Colorado Downtown Development Authority Tax Increment Subordinate Note, Series 1985A" The Note shall be numbered "R-1" , shall be dated the date of delivery, shall bear interest from its date at the rate of ten percent (10%) per annum, and shall mature on April 1 , 1995 . On April 10 of each year, the City shall pay as principal to the Noteholder an amount equal to the amount, if any, as is specified in the form of the Note contained in this Ordinance; provided, however, that without the written consent of the holders thereof no such payment shall exceed in the aggregate in any calendar year the sum of $50, 000 . In addition, the City shall pay interest on overdue installments of principal and interest at the rate of interest borne by the Note. Interest on the Note shall be payable commencing on October 1, 1985 , and semiannually thereafter on April 1 and October 1 of each year until maturity, but solely from the special fund provided therefor in Section 9 hereof in an amount not to exceed the amount of Pledged Revenues received in any year which are not needed to pay principal of, premium, if any, and interest on the City' s Series 1964A Bonds and any obligations issued on a parity with such Bonds due or coming due during the Fiscal Year in which such Pledged Revenues are received. The Note shall bear interest until the principal sum thereof has been paid. The Note and the interest thereon shall be payable in lawful money of the United States of America and shall be payable at the office of Director of Finance of the City or at the offices of any Paying Agent. The maximum net effective interest rate authorized for the Note is fifteen percent (15%) per annum. The stated interest rate on the Note is Ten Percent (10%) per annum. Section 6 . Redemption of Note Prior to Maturity. Except as in this Ordinance provided with respect to annual payments of principal, the Note may not be redeemed or be otherwise payable except with the written consent of the holder thereof prior to its scheduled maturity date. Such written consent must be filed with the office of the City' s Director of Finance. The City shall have no obligation to redeem or prepay the Note except as otherwise provided in the Ordinance or the Note. Section 7. Sale of Note; Note Purchase Agreement; Proceeds. The Note shall be sold to the Purchaser at a price of one hundred percent (100%) of principal plus accrued interest, if any, from the date thereof to the delivery date. The Director of Finance of the City is hereby authorized and directed to execute and 15 - deliver the Note Purchase Agreement for and on behalf of the City in substantially the form attached to this Ordinance as Exhibit B, but with such minor changes thereto as are consistent with this Ordinance and as are approved by the Director of Finance. The execution of the Note Purchase Agreement by the Director of Finance shall constitute conclusive evidence of the approval of the form and content thereof for and or, behalf of tlta City. The purchase price for the Note shall be paid by the Purchaser in the manner and form provided for in the Note Purchase Agreement. Upon receipt of the purchase price established above, the Note shall be delivered by the City to the Purchaser and the proceeds thereof shall be in the form and utilized as follows : (a) The accrued interest paid with respect to the Note shall be in cash and shall be deposited to the credit of the Principal and Interest Account of the Note Fund. (b) The conveyance of good and marketable to the Peal Property by the Purchaser pursuant to the real estate conveyance agreement referenced in the Note Purchase Agreement in payment of the balance of the purchase price of the Note shall be in favor of the Authority and shall be held and used by the Authority as hereinafter provided . Section 8 . Creation of the Fund and Account . There is hereby created and establi-sled with the City a special fund called the "City of Fort Collins Downtown Development Authority Tax Increment Subordinate Note Fund" (the "Note Fund" ) . The Note Fund contains an account described as the "Principal and Interest Account. " So long as the Note herein authorized, or any interest thereon, remains unpaid, 'the moneys in the foregoing Note Fund shall be used for no purpose other than those required or permitted by this Ordinance. Section 9. Use of Real Property. The Real Property shall be held, used and transferred by the Authority for the purpose of providing a site for residential housing or such other use approved by the City and the Authority which is consistent with the Plan of Development. Such use and transfer shall be subject to such terms and conditions as the City and the Authority shall subsequently approve by appropriate legislative action. Section 10 . Principal and Interest Account Fund. There shall be deposited in the r in Pr and Interest Account the sums set forth in Section 7 (a) hereof. In addition, except as herein provided and except as provided in Ordinance #149, 1984 authorizing the Series 1984A Bonds, at least one business day prior to April 1 and October 1 of each year the Note is outstanding, there shall be deposited in the Principal and Interest Account of the Note Fund the amount of interest and - 16 - principal due on April 1 and October 1 of each such year under the terms of the Note. Section 11. Deposit and Investment of Moneys in Note Fund. Subject to the provisions of Section 14 hereof, all moneys held by the City in any Note Fund shall be invested b_: the City in any lawful investments for funds of the City. Moneys in the Principal and Interest Account shall be invested only in obligations which will by their terms mature or are redeemable at the option of the City on such dates as to be available to pay the interest and principal next payable with respect to the Note. Section 12. Issuance of Notes; Parity Notes. The City may issue additional notes or other obligations payable in whole or part out of the Pledged Revenues or the Note Fund which stand on a parity or equality with the Series 1984A Bonds; provided, however, such additional obligations and the Note shall automatically then become obligations which stand on a parity with the Series 1984A Bonds . Nothing contained in this Ordinance shall be construed or interpreted to limit, encumber or otherwise restrict the City from issuing bonds , notes or other obligations payable from sources other than the Pledged Revenues or on a parity with or subordinate to the Note. Section 13 . Covenant Regarding Arbitraqe Bonds . The Cit•7 shall make no investment or other use of the proceeds of the Note at any time during the term thereof which, if such investment or other use had been reasonably expected on the date the Note is issued, would have caused the Note to be an "arbitrage bond" within the meaning of the Code and the regulations promulgated thereunder, unless, under any provision of law hereafter enacted, the interest paid on the 13ote (a) shall be excludible from the gross income of a recipient thereof for federal income tax purposes without regard to whether the Note is an "arbitrage bond, " or (b) shall be exempt from all federal income taxation. Section 14. Concerning the Paying Agents. The City hereby appoints the City' s Director of Finance as Paying Agent for the Note, and may at any time or from time to time appoint one or more other Paying Agents or a successor Paying Agent . Such appointment shall be evidenced by an agreement in writing executed on behalf of the City by the Mayor or any Assistant Mayor. The Mayor or any Assistant Mayor of the City is hereby authorized to execute and deliver any such agreement with one or more Paying Agents for and on behalf of the City. Section 15 . Amendments. This Ordinance and the rights and obligations of the City and of the Holders of the Note issued - 17 - hereunder, may be modified or amended at anv brie by supplemental ordinance adopted by the Cite: (a) without the consent of Noteholders, if such modificaticn or amendment is for the purpose of curing any ambiguities , defects or inconsistent provisions in this Ordinance or to insert such provisions clarify, r.c matters cr questions arising under this Ordinance as are nE-cessary and desirable to accomplish: the same , and/or (b) with the written consent of Noteholders ; provided, however, that no such modification or amendment shall, without the express written consent of the Holder of the Note affected, reduce the principal amount of the Note, modify the prepayment schedule , reduce the interest rate payable thereon, extend its maturity or the times for paying interset thereon or change the monetary medium in which principal and interest is payable, or change the consent required for amendment or r..odification. Any act done pursuant to a modification or amendment so consented to shall be binding upon the Holder of the Note and shall not be deemed an infringement of any of the provisions of this Ordinance or of the DDA Act, whatever the character of such act may be, and may be done and performed as fully and freely as if expressly permitted by the terms of this Crainance, and, after such consent relating to such specified matters has been given, no Noteholder shall have any right or interest to ohjc-ct to such action or in any manner to question the propriety thereof or to enjoin or restrain the City or any officer thereof from taking any action pursuant thereto. Section 16. Proceedings Constitute the Contract; Everts of Default and Remedies of Noteholders. The provisions of this Ordinance and of any other ordinance supplementing or amending this Ordinance shall constitute a contract among the City, the Authority and the Noteholder, and the provisions hereof and thereof shall be enforceAble by any Noteholder for the equal benefit and protection of all Noteholder similarly situated by mandamus, accounting, mandatory injunction or any other suit, action or proceeding at law or in equity that is now or may hereafter be authorized under the laws of the State of Colorado in any court of competent jurisdiction.. Said contract is made under and is to be construed in accordance with the laws of the State of Colorado. The following provisions shall not limit the generality of the foregoing. A. Events of Default and Acceleration of Maturities. If one or more of the following events ("events of default" ) shall happen: (1) if default shall be made in the due and punctual payment of the principal of the Note when and as the same shall become due and payable, whether at maturity as therein expressed, by declaration or otherwise; - 18 - •� rt (2) if default shall be made in the due and punctual payment of any installment of interest on the Note when and as such interest installment shall become due and payable ; (3) if default shall be made by the City in the observance of any other of the covenants , agreements or conditions on its part in this Ordinance or in the vote contained, and such default shall have continued for a period of 30 days; or (4) if the City shall file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law of the United States America, or if a court of competent jurisdiction shall approve a petition, filed with or without the consent of the City, seeking reorganization under the federal bankruptcy laws or any other applicable law of the United States of America, or if, under the provisions of any c*her law for the relief or aid of debtors , any court of competent jurisdiction shall assume custody or control of the City or of the the whole or 10% of its property; then, and in each and every such case during the continuance of such event of default, the Holder of the Note may declare the principal of the Note then outstanding, and the interest accrued thereon, to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable but solely from the special fund hereby created therefor, anything in this Ordinance or in the Note contained to the contrary notwithstanding. This provision, however, is subject to the condition that if, at any time after the principal of the Note shall have been so declared due and payal5le, and before any judgment or decree for the payment of the moneys due have been obtained or entered: (i) the City shall deposit with any Paying Agent a sum sufficient to pay all principal on the Note matured prior to such declaration (if any) and all matured installments of interest (i£ any) upon the Note, with interest thereon at the rate borne by the Note or at such maximum lower rate to the extent then permitted by law on any overdue installments of principal and interest, so that the City is currently in compliance with all payment, deposit and transfer provisions of this Ordinance, and (ii) the City shall deposit with the Paying Agent a sum sufficient to pay the reasonable expenses of the Paying Agent and to cure any and all other defaults known to the Paying Agent (other than in the payment of principal of and interest on the Note due and payable solely by reason of such declaration) , and (iii) the City shall have made good or cured to the satisfaction of the Paying Agent or made provisions deemed by the Paying Agent to be adequate to make good or cure each and every other default, then, and in every such case, the Holders of the Note, by written notice to the City and to the Paying Agent, may rescind and annul such declaration and its consequences . However, no such 19 - rescission and annulment shall extend to or shall affect an% subsequent default, or shall impair or exhaust any ri<;ht cr power consequent thereon. B. Apnlication of Funds Upon Acceleration. Subject to prior liens thereon, all or the herein specified Plenged Revenues and all sums in the Note Fund not otherwise pledged upon the dat^ of the declaration of acceleration as provided in paragraph A above, and all sums thereafter received by the Paving Agr,nt hereunder, shall be applied by the Paying &gent in the following order upon presentation of the Note, and the stamping thereon of the payment if only partially paid, or upon the surrender thereof if fully paid-- First, to the payment of the costs and expenses of the Noteholders in declaring such event of default, including reasonable compensation to its or their agents , attorneys and counsel; Second, to the payment of the whole amount then owing and unpaid upon the Note for interest , with interest on the overdue installments of interest at the rate borne by the Note; and Third, to the payment of principal then owing and unpaid upon the Note, with interest on the overdue principal at the rate borne by the Note. C. Other Remedies of Noteholders . Any Noteholder shall have the right, for the equal benefit and protection of all Noteholders similarly situated: (1) by mandamus , suit, action or proceeding, to compel the City and its members, officers, agents or employees to perform each and evgry term, provision and covenant contained in this Ordinance and in the Note, and to require the carrying out of any or all such covenants and agreements of the City and the fulfillment of all duties imposed upon it by the DDA Act; (2) by suit, action or proceeding in equity, to enjoin any acts or things which are unlawful, or in violation of any of the Noteholders ' rights; or (3) upon the happening of any event of default (as defined in this Section) , by suit, action or proceeding in any court of competent jurisdiction, to require the City and its members and employees to account as if it and they were the trustees of any express trust. D. Nonwaiver. Nothing in this Section or in any other provision of this Ordinance, or in the Note shall affect or impair the obligation of the City to pay the principal of and interest on the Rote to the Folders of the Note at the respective dates of maturity, from the special fund herein provided, or - 20 - affect or impair the right, which is absolute and unconditional , of such Holders to institute suit to enforce such payment by virtue of the contract embodied in the Note. No remedy conferred hereby upon ar_y Noteholder is intended to be exclusive of any other remedy, but each such remedv is cumulative and in addition to every other remedy and r:-,av be exercised without exhausting and without regard to any other remedy conferred by the DDA Act or any other law of the State of Colorado. No waiver of any default or breach of duty or contract by any Noteholder shall affect any subsequent default or breach of duty or contract or shall impair any rights or remedies of the Noteholder resulting from said subsequent default or breach. No delay or omission of any Noteholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed as a waiver of any such default or acquiescence thereon. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and should said suit, action or proceeding be abandoned, or be determined adversely to the Noteholders, then, and in every such case, the City and the Noteholders shall be restored to their former positions , rights and remedies as if such suit, action or proceeding had not been brought or taken. Every substantive right and every remedy conferred upon the Noteholders may be enforced and exercised as often as may be deemed expedient, to the extent permitted by law. E. Rights and Immunities . Except as herein otherwise expressly proviaed, nothing herein expressed or implied is intended or shall be construed to confer upon or to give to any person, other than the City, the Authority and the Holders from time to time of the Note, any right, remedy or claim under or by reason hereof or any covenant, condition or stipulation hereof. All the covenants, stipulations, promises and agreements herein contained by and on behalf of the City and the Authority shall be for the sole and exclusive benefit of the City, the Authority and the Holders of the Note. No recourse shall be had for the payment of the principal of and the interest on the Note or for any claim based thereon or otherwise upon this Ordinance or any other instrument pertaining thereto against any individual member of the Council, or any officer or other agent of the City, past, present or future, either directly or indirectly through the City, or otherwise, whether by virtue of any constitution, charter, statute or rule of law, or by the enforcement of any penalty or otherwise, all such liability, if any, being by the acceptance of the Note and as a part of the consideration of their issuance specially waived and released. F. General. After the issuance and delivery of the Note, this Ordinance, and any supplemental ordinances hereto, shall be irrepealable, but shall be subject to modification or amendment - 21 - to the extent and in the manner proviCea in this Ordinance , but to no greater extent and in no other manner. Section 17 . Ratification. All action not inconsistent r,ith the provisions of this Ordinance heretofore taken by the Citv_ or its officers and otherwise by the City directed toward the issuance and delivery of the Note is hereby ratified , approved and confirmed. Section 18 . Authorized Action. The officers of the City are hereby authorized and directed to enter into such agreements and take all action necessary or appropriate to effectuate the provisions of this Ordinance and to comply with the requirements of law, including without limiting the generality of the foregoing: A. The execution of the Note Purchase Agreement between the City and the Purchaser or its agent; B. The preparation of the Note; C . The execution of such certificates as may reasonably be required by the Purchaser of the Note relating to the signing of the Note; the tenure and identity of the City officials; if in accordance with the facts , the absence of litigation, pending or threatened, affecting the validity of the Note; receipt of the Note and the purchase price therefor; using a suitable Signature Certificate, General and No-Litigation Certificates, a Delivery Certificate; a No Arbitrage Certificate and a Use of Proceeds Certificate and such other certificates and documents as are necessary to effectuate a closing of the issuance of the Note; D. The making of various statements , recitals, certifications and warranties provided in the form of Note set forth in this Ordinance; E. The payment of the interest on the Note as the same shall accrue and the principal of the Note at maturity or upon prior redemption without further warrant or order; and F. The execution of such documents between the City and the Authority as may be reasonably necessary and appropriate to carry out the purposes of this Ordinance and the Project. Section 19 . General Repealer. All acts, orders, resolutions, ordinances or parts thereof taken by the City in conflict with this Ordinance are hereby repealed, except that this repealer shall not be construed so as to revive any act, order, resolution, ordinance or part thereof heretofore repealed. - 22 - Section 20 . Ordinance Irrepealable. This Ordinance is , and shall constitute, a legislative measure of the City, and after the Note is issued, sold and outstanding, this Ordinance shah constitute a contract between the City and the holders of the Note and shall be and remain irrepealable until the Note and the interest accruing thereon shall have been fully paid , satisfied and discharged. Section 21. Severability. If any paragraph, clause or provision of this Ordinance is judicially adjudged invalid or unenforceable, such judgment shall not affect, impair or invalidate the remaining paragraphs, clauses or provisions hereof, the intention being that the various paragraph, clauses or provisions hereof are severable. INTRODUCED, READ, APPROVED ON FIRST READING, AND ORDERED PUBLISHED ONCE IN FULL THIS 19th day of February, 1985 . CITY OF FORT COLLINS, COLORADO y- '- (CITY) Mayor �— (SEAL) ATTEST: �T`y'T E S(�T: TIN�OIO- City Clark 13 The foregoing Ordinance will be presented for final passage at a regular meeting of the Council to be held at Council Chambers, City Hall, 300 LaPorte Avenue, Fort Collins , Colorado, on Tuesday, the 19th day of March, 1985 , at 6 :30 p.m. - 23 - � i � \ EXHIBIT A TO THE ORDINANCE OF THE CITY OF FORT COLLINS , COLORADO AUTHORIZING THE ISSUANCE OF $510 , 000 CITY OF FORT COLLINS, COLORADO D0WNT0:'.N DEVELOPhIENT AUTHORITY TAX INCREMENT SURORDID'ATE NOTE , SERIES 1985A The Project shall include the purchase of the following described lots according to the recorded plat thereof to s-it : Lots 5 , 10 , 11, 12, 13 and 14 in Block 132, in the City of Fort Collins, Larimer County, Colorado, except the following described portion of said Lot 10 : Beginning at the Northeast corner of said Lot 10 , thence west 35 feet, thence South 8 inches, thence East 35 feet, thence North 8 inches . and the demolition of the buildings thereon, upgrading public utilities and rights of way, and related investigations and studies , together with such additions and substitutions as are consistent with the DDA Act and as may be approved from time to tine by t'he City and the Authority. 24 - EXHIBIT B TO THE ORDINANCE OF THE. CITY OF FORT COLLINS , COLORADO AUTHORIZING THE. ISSUANCE OF $510 , 000 CITY OF FORT COLLINS, COLORADO DOWNTOWN DEVELOPMENT AUTHORITY TAX INCREMENT SUBORDINATE NOTE, SERIES 1985A DOTE PURCHASE AGREEMENT Mayor and Members of the Council City of Fort Collins City Hall Fort Collins, Colorado 80522 RE: $510 , 000 CITY OF FORT COLLINS, COLORADO DOWNTOWN'' DEVELOPMENT AUTHORITY TAX INCREMENT SUBORDINATE NOTE SERIES 1985A Mayor and Members of the Council : We hereby offer to purchase your $510 , 000 legally issued City of Fort Collins, Colorado Downtown Development Authority Tax Increment Subordinate Note (the "Note") to be delivered to us in Fort Collins, Colorado, prior to June 1 , 1985 , and to finally mature on April 1, 1995 and bear interest at ten percent (10%) per annum. The Note is to be in the form of a single typewritten registered note in the denomination of $510 , 000 , bearing interest at the rate stated above, payable semiannually on April 1 and October 1 of each year, beginning October 1, 1985, as specified in the Ordinance authorizing the Note, with principal due at maturity; except on April 1 of each year, the City shall pay to the Noteholders such principal payment amount as is specified in the Ordinance authorizing the Note. In exchange for the Note, we will convey by warranty deed to the Fort Collins Downtown Development Authority (the "Authority") good and marketable title in fee to the following described real property according to the recorded plat thereof, to wit: Lots 5 , 10, 11 , 12, 13 and 14 , in Block 132 in the City of Fort Collins, Larimer County, Colorado, except the following described portion of said Lot 10 : Beginning at the Northeast corner of said Lot 10, thence west 35 feet, thence South 8 inches, thence East 35 feet, thence North 8 inches. and we will pay accrued interest from the date of the Note to the date of delivery to us. Conveyance of said real property shall be on the terms and conditions set forth in a separate real estate agreement of even date between the Fort Collins Downtown - 25 - Development Authority and us . Our obligation to purchase the said Note is subject to the following conditions : 1. Prior to our accepting delivery of said securities , you agree to furnish a certified transcript of all legal proceedings requisite to their issuance and delivery, including a signature and non-litigation certiricate in the customary form, evidencing the legality of said securities and the security provisions relating t1-:ereto to the satisfaction of Kutak Hock & Campbell and Fischer, Brown, Huddleson & Gunn, Cc-Bond Counsel , whose approving legal opinion, shall accompany said securities at delivery. 2. The Note is to be delivered to us on or before June 1 , 1985 , or thereafter at our option, payable to us as joint tenants with right of survivorship. 3. The cost of issuing the Note and the fees of the approving attorneys will be paid by the City. 4 . We will be responsible for the fees of our counsel. In connection with our purchase of the Note, we hereby acknowledge and represent that: (i) we are familiar with the City and the Authority; (ii) we have been furnished all requested financial information about the City and the Authority and the Pledged Revenues described in the Ordinance; (iii) the City and the Authority have made available to us the opportunity to obtain additional information to verify the accuracy of the information supplied and to evaluate the merits and risks of an investment in the Note; and, (iv) we have had the opportunity to ask questions of and receive answers from representatives of the City and the Authority concerning the terms and conditions of the offering and the information supplied to us . We acknowledge and represent that we have been advised that the Note is not registered under the Securities Act of 1933, as amended (the "1933 Act") , and that the City and the Authority are not presently required to register under Section 12 of the Securities Exchange Act of 1934 , as amended (the "1934 Act") . We realize, therefore, that if and when we wish to resell part or all of the Note, that there may not be available current financial information about the City and the Authority. Further, no trading market now exists for the Note. Accordingly, we understand that we may need to bear the risks of this investment for an indefinite time, since any sale prior to the maturity of the Note may not be possible or may be at a price below that which we are paying for the Note. We further acknowledge that by its terms the Note is non-negotiable . We have undertaken to verify the accuracy, completeness and truth of the statements made concerning all of the material facts relating to this transaction, including information regarding the - 26 - financial condition of the City and the Authority. We have conducted our own investigation to the extent we deemed necessary. We have been offered an opportunity to have made available to us any and all such information we might request from the Citv and the Authority. On this basis, we agree by acknowledgment of this agreement that we are not relying on any other party or person to undertake the furnishing or verificaticr. of information relating to this transaction, other than our own counsel. We further ac.L-nowledge that we have not relied on Kutak, Rock & Campbell or Fischer, Brown, Huddleson & Gunn, Co-Bond Counsel, in making our investment in the Note , except for the opinion of said firms as set forth in their Bond Opinion delivered in connection with the issuance of the Note. The Note is being acquired by us for investment and not with a view to , or for resale in connection with, any distribution of the Note or any part thereof. We intend to hold the Note for our own account and for an indefinite period of time and do not intend at this time to dispose of all or any part of the Note. This contract to purchase is effective as of this date . Respectively submitted, Jack E. L. Russell Elsie Mae Russell Accepted by and behalf of the City of Fort Collins this day of 19 By: Director of Finance - 27 - _ Z EXHIBIT C TO THE GPDI14AIJCE CF THE CITY OF FORT COLLINS, COLORADO AUTHORIZING THE ISSCFI!CS OF 5510, 000 CITY OF FORT COLI.INS , COLORADO DOWNTOWN LEVFLCPNFNT AUTHORIT. TAX INCREMENT SUBORDINZ.TF I'CTE, SERIES 1985A CITY OF FORT COLLINS TAX INCREMENT FUND PROJECTED CASH FLOW FOR THE YEARS ENDING DECEMBER 31, 1904 THROUGH 1996 (000's Omitted) - - - - - - - - - - - - For the Years Endi ng December 31- - - FUNDS AVAILABLE 1984 1985 1986 1987 1988 19B9 1990 1991 1992 1993 1994 1995 Beginning Cash - January 1 (1) 339 1,104 783 552 408 329 298 319 395 247 146 BU Property Tax Revenues-Table I 254 299 478 609 684 736 7BB B40 891 943 995 1 ,047 Capitalized Interest 415 0 0 0 O O U 0 O 0 0 n Accrued Interest 129 U O 0 U 0 O 0 Interest Earnings from Bond Reserve Fund (2) 9 110 110 Ili) 110 110 110 110 110 11V llu I1, Interest Earnings from Capitalized Interest (2) „ 30 U i, ii U 0 A O 0 U C. Interest Earnings from L:onstruction Proceeds (1) 130 40 0 0 i, V 0 0 0 V O Interest Earnings '5 50 63 44 .� 26 24 26 J 20 12 6 Coverage AeCOUnt 50 0 n 0 O O 0 0 V V �� TOTAL FUNDS AVAILABLE FOR DEBT SERVICE 1,306 1,687 1.434 1 ,315 I ,234 1 ,201 1,220 1 ,294 1 ,428 1,320 l ,"63 1 ,244 LESS DEBT SERVICE (Table IV) 202 900 882 907 905 903 901 899 1 ,181 1 ,174 1 ,183 1,178 ENDING CASH - December 31 1,104 783 552 4(iU C29 298 319 :;95 247 146 80 66 DEBT SERVICE COVERAGE (4) 1.99 1.71 1.61 1 . 41 1.38 1.40 1.Su 1.23 1. 14 1.07 1.-.6 ( 1 ) Source: City of Fort Collins Finance Uirector 12) Assume 11% reinvestment rate for Bond Reserve Fund, and 10:: reinvestment rate for Capitalized Interest. 1 :) 8% of Beginning Cash Balance beginning in 1986. (4) Total funds available for Debt Service less Bond Peserve Fund Inter est Earnings, divided by Debt Service Requirements less Bond Reserve Fund Interes t Earnings. - 28 -