Loading...
HomeMy WebLinkAbout047 - 04/29/1980 - AUTHORIZING THE ISSUANCE OF SALES AND USE TAX REVENUE BONDS IN THE PRINCIPAL AMOUNT OF $1,035,000 FO ORDINANCE NO 47, 1980 AN ORDINANCE AUTHORIZING THE ISSUANCE OF SALES AND USE TAX REVENUE BONDS OF THE CITY OF FORT COLLINS, COLO- RADO, IN THE PRINCIPAL AMOUNT OF $1 ,035,000, FOR THE PURPOSE OF CONSTRUCTING AND INSTALLING STREET IMPROVE- MENTS WITHIN THE CITY, PRESCRIBING THE FORM OF SAID BONDS AND INTEREST COUPONS, PROVIDING FOR ThE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SAID BONDS FROh THE REVENUES OF THE MUNICIPAL RETAIL SALES AND USE TAX, AND PROVIDING OTHER COVENANTS AND DETAILS IN CONNECTION THEREWITH WHEREAS, the City Council of Fort Collins has determined that it is necessary to construct and install street improvements within the City, and WhEREAS, the estimated total cost of the project is approximately $1 ,035,000, and there are not now sufficient funds available for the payment of the cost of the project, and WHEREAS, pursuant to Ordinance No 58, 1967, as amended, and Ordinance No 140, 1979 (contained in Chapter 104 in the City of Fort Collins City Code), the City has levied and imposed a municipal retail sales and use tax of 2%, as defined and limited in said ordinances, and WHEREAS, Article V, Part II, Section 20 4 provides that the City may issue revenue bonds payable in whole or in part from the available proceeds of the City sales and use tax, as follows "Section 20 4 Revenue securities The City, by Council action and without an election, may issue securities made payable solely from revenue derived from the operation of the project or capital improvement acquired with the securities ' proceeds, or from other projects or improvements, or from the proceeds of any sales tax, use tax or other excise tax, or solely from any source or sources or any combination thereof other than ad valorem taxes of the City" and, WHEREAS, the City Council has determined at this time to authorize the issuance of sales and use tax revenue bonds in the principal amount of $1 ,035,000 for the purposes set forth above as provided by Article V, Part II , Section 20 4, both the principal of and interest on said bonds to be payable solely from the proceeds at the 2% municipal retail sales and use tax, and -2- WHEREAS, in accordance with the City Charter, the City Council has determined that it is in the best interest of the City that the sales and use tax revenue bonds of the City in the principal amount of $1 ,035,000 should be issued and sold to Boettcher and Company, Denver, Coloraao, in accordance with their proposal dated April 15, 1980, and WHEREAS, it is necessary to provide for the issuance of said bonds, and the form and payment thereof, BE IT ORDAINED BY THE COUNCIL OF ThE CITY OF FORT COLLINS, COLORADO Section 1 Authorization That Tor the purpose of constructing and installing street improvements within the City of Fort Collins, there are hereby authorized Sales and Use Tax Pevenue Bonds of the City of Fort Collins, in the principal amount of $1 ,035,000 Both the principal thereof and the interest thereon shall be payable solely and only out of the proceeds of the municipal retail sales and use tax authorized by Ordinance 58, 1967, finally passed and adopted on November 16, 1967, as amended, as more particularly set forth in this Ordinance That in accordance with the provisions of Article V, Part II, Section 20 4 of the City Charter, revenue bonds payable in whole or in part from the available proceeds of a City sales and use tax may be issued without the requirement of an election on the question of issuing bonds Section 2 Bond Details That the bonds shall be dated May 1 , 1980, consisting of 207 bonds in the denomination of $5,000 each, numbered 1 to 207, inclusive, shall be payable to bearer, and bear interest according to interest coupons attached thereto, from date to maturity, payable on November 1, 1980, and semi-annually thereafter on the lst day of May and the 1st day of November each year, and mature serially on May 1, as follows Amount Maturity Interest Rate 2359000 1981 9% 200,000 1982 9% 200,000 1983 9% 200,000 1984 9% 200,000 1985 9% Bonds of this issue shall not be redeemable in advance of their re- spective maturity dates The net effective interest rate of this issue of bonds is 9 2/3% per annum The principal of and interest on said bonds shall be payable at the First National Bank, in Fort Collins, Colorado -3- Section 3 Form and Execution of Bonds and Interest Coupons The bonds shall be signed with the acsimi e signature of the Mayor of the City, attested by the manual signature of the City Clerk, countersigned with the facsimile signature of the Director of Finance, and sealed with a facsimile of the official seal of the City, and the interest coupons to be signed with the facsimile signature of the Director of Finance When issued as aforesaid as part of said bonds, such interest coupons shall be the binding obligations of the City according to their import Should any officer whose manual or facsimile signature appears on said bonds or the coupons attached thereto cease to be such officer before delivery of the bonds to the purchaser, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes The Bonds and the interest coupons attached thereto shall be in sub- stantially the following form (Form of Bond) UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF LARIMER CITY OF FORT COLLINS SALES AND USE TAX REVENUE BOND No $5,000 The City of Fort Collins, in the County of Larimer and State of Colorado, for value received, hereby promises to pay to the bearer hereof, out of the special account herein- after designated but not otherwise, the principal sum of FIVE THOUSAND DOLLARS in lawful money of the United States of America, on the lst day of May, 19 , with interest thereon from date to matur- ity according to interest coupons attached hereto, at the rate of per centum ( %) per annum, payable on November 1 , 1980, and semi-annually thereafter on the 1st day of May and the 1st day of November each year, all such principal and interest being payable at the First National Bank, in Fort Collins, Colorado, upon presentation and surrender of the attached coupons and this Bond as they severally become due Bonds of this issue are not redeemable prior to their respective maturity dates -4- This Bond is issued by the City of Fort Collins, Colorado, for the purpose of constructing and installing street improvements within the City, under the authority of and in full conformity with the Constitution and Laws of the State of Colorado, the Charter of said City, and pursuant to Ordinance No 47, 1980 of the City duly passed and adopted prior to the issuance of this Bond Both the principal of this Bond and the interest hereon are payable solely out of the "Reserve for Sales and Use Tax Revenue Bonds and Inter- est" which constitutes a segregated account for the payment of this Bond, and constitutes a first and prior lien on said Reserve (although not necessarily an exclusive first lien), all as more particularly set forth in the ordinance author- izing the issuance of this $ond This Bond does not constitute a debt of the City of Fort Collins within the meaning of any constitutional , statutory or charter limita- tion or provisions, and shall not be considered or held to be a general obligation of the City The holder of this Bond may not look to any general or other fund of the City for the payment of the principal of or interest on this obligation, except the Reserve referred to above It is hereby certified, recited and warranted that for the payment of this bond, the City of Fort Collins has created and will maintain said Reserve and will deposit therein, out of the revenues of the municipal retail sales and use tax, the amounts and revenues specified in said ordinance, and out of said Reserve, and as an irrevocable charge thereon, will pay this bond and the interest thereon, in the manner provided by said ordinance It is furtner recited and certified that all require- ments of law and all conditions precedent have been fully complied with by the proper officers of the City in the issuance of this bond IN TESTIMONY WHERECIF, the City of Fort Collins, Colo- rado, has caused this bond to be signed with the facsimile signature of its Mayor, sealed with a facsimile of the seal of the City, attested by the manual signature of the City Clerk, countersigned with the facsimile signature of the Director of Finance, and the interest coupons attached hereto to be signed Frith the facsimile signature of the Director of Finance, as of the 1st day of I'lay, 1980 THE CITY OF FORT COLLINS, COLORADO (Facsimile Signature) By (Do not sign) Mayor -5- (FACSIMILE) (SEAL) ATTEST COUNTERSIGNED (Manual Signature) (Facsimile Signature) (Do not sign) (Do not sign) City Clerk Director of Finance -6- (Form of Interest Coupon) No $ May On the 1st day of November, 19 the City of Fort Collins, in the County of Larimer, and the State of Colorado, will pay to the bearer hereof the amount shown hereon, in lawful money of the United States of America, at the First National Bank, in Fort Collins, Colorado, solely out of the reserve referred to in the bond to which this coupon is attached, but not otherwise, being interest then due on its Sales and Use Tax Revenue Bond, dated May 1, 1980 bearing No (Facsimile Signature) ( Do not sign ) Director of Finance -7- Section 4 Disposition of Bond Proceeds The bonds shall be issued and sold for the purpose of constructing and installing street improvements within the City Neither the purchaser of the bonds nor the subsequent ' holder of any of them shall be responsible for the application or disposal by the City or any of its officers of the funds derived from the sale thereof The issuance of said bonds by the City sfrall constitute a warran- ty by and on behalf of the City for the benefit of each and every holder of said bonds, that said bonds have been issued for a valuable consideration in full conformity with law All or any portion of the bond proceeds may be temporarily invested, or reinvested, pending such use, in securities or obligations which are lawful investments for such municipalities in the State of Colorado It is hereby covenanted and agreed by the City that the temporary investment or reinvestment of the bond proceeds, or any portion thereof, shall be of such nature and extent, and for such period, that the bonds shall not be or become arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, and pertinent regulations, and such proceeds, if so invested or reinvested, shall be subject to the limitations and restrictions of said Section 103(c), and pertinent regulations as the same now exist or may later be amended Section 5 Two Percent Municipal Sales and Use Tax By Ordinance No 58, 1967, finally passed and adopted on November 16, 196/, as amended, and Ordinance No 140, 1979, (Chapter 104 of the Fort Collins City Code), the City Council has levied and imposed a sales and use tax of 2% all as more particularly set forth and limited by said Chapter 104 Section 104-79 of Chapter 104 provides that the sales and use tax revenues shall be distributed as follows §104-79 Purpose of tax, distribution of proceeds The City Council hereby declares that the purpose of the levy of the taxes imposed by this Chapter is for the raising of funds for the payment of the expenses of operating the City and for capital improvements, and in accordance with these purposes, all of the proceeds of said tax shall be placed in and become a part of the general fund of the City The reference in this Ordinance to the municipal sales and use tax shall mean the 2% sales and use tax presently authorized by Chapter 104 and any additional sales or use tax which may hereafter be levied and imposed by the City Section 6 Payment of Principal and Interest Pursuant to Section 104 79 of Chapter 104 of the Fort Collins City Code, all of the proceeds of the municipal sales and use tax shall be placed in and become a part of the general fund of the City of Fort Collins -8- There is hereby established a separate reserve of those municipal retail sales and use tax proceeds within the qeneral fund for the payment of principal and interest on the City of Fort Collins Sales and Use Tax Revenue Bonds, dated May 1, 1980, in the principal amount of $1,035,000, which segregated sales and use tax proceeds shall be designated as the "Reserve for Sales and Use Tax Revenue Bonds and Interest" (hereinafter referred to as the "Reserves") The proceeds of the municipal retail sales ,and the tax shall be placed in the Reserve as follows { i ) Monthly, beginning on or before May 1 , 1980, and on or before the last day of each month thereafter, each year, one-twelfth (1112) of the principal amount becoming due on the next principal payment date ( ii ) Monthly, beginning on or before May 1, 1980, and on or before the last day of each month thereafter, each year one-sixth (1/6) of the interest amount due and payable on the next interest payment date (iii ) If additional bonds are authorized and issued at a later date, which are payable from said revenues, and which have a lien on such revenues on a parity with the lien of the bonds authorized herein, then payments may be made to the Reserve for such additional parity lien bonds concurrently with the payment for the bonds authorized by this Ordinance The owners and holders of the Sales and Use Tax Revenue Bonds author- ized herein shall have a first and prior lien (although not necessarily an exclusive first lien) on said reserve The obligations evidenced by said sales and use tax revenue bonds shall not constitute a lien on the real property or the improvements, or any other property of the City of Fort Collins, but shall constitute a lien only on the amounts segregated in said reserve as provided in this Ordinance Section 7 Administration of Reserve Said reserve shall be main- tained as a separate and segreqated account and is hereby irrevocably pledged for the prompt payment of the annual principal of and interest on the bonds authorized herein, and the principal of and interest on any additional bonds, subsequently issued, having a lien on the reserve on a parity with the lien of the bonds authorized herein, when and as the samQ shall become due and payable, respectively Section 8 Covenants of the City The City hereby irrevocably covenants and agrees with each and every holder of the Sales and Use Tax Revenue Bonds issued under the provisions of this Ordinance, that so long as any of said bonds remain outstanding (a) The City Council will not repeal either Ordinance No 58, 1967, as amended, or Ordinance No 140, 1979, (Chapter 104 of the Fort Collins City Code) and that it will not amend said ordinances or Chapter -9- 104 by decreasing the sales and use tax rate of 2%, or in any way which would adversely affect the amount of sales and use tax revenues which would otherwise be collected (b) It will administer, enforce and collect, or cause to be administered, enforced and collected, the sales and use tax authorized by said Chapter 104, and shall take such necessary action to collect de- linquent payments as shall be authorized by Chapter 104, and in accordance with law (c) It will keep such books and records showing the proceeds of the two percent (2%) municipal retail sales and use tax in which complete entries shall be made in accordance with standard principles of accountanq, and any owner or holder of any of the bonds authorized herein shall have the right at all reasonable times to inspect the records and accounts relating to the collection and receipts of such sales and use tax It will , at least once each year, cause an audit of the records relating to the collection and receipts of the sales and use tax revenues, and upon request, make available the report of the auditor or accountant, to any holder of such bonds, and shall mail a copy of the report to the original purchaser of the bonds Such audit may be made part of and included within the general audit of the City, and made at the same time as the general audit (d) That in the event the sales and use taxes of the City are replaced and superseded by a State collected-locally shared sales and/or use tax or taxes, or are replaced and superseded in some other manner from some other source or sources, the revenues derived by the City from said replacement source or sources, as received by the City shall be appropri- ated in the same manner as if the City had levied and imposed a municipal sales and use tax, and in accordance with Chapter 104 of the Code From and after the date of said replacement, the bonds herein authorized, and any then outstanding parity lien bonds, shall have a first and prior lien, but not necessarily an exclusive such lien, upon such replacement revenues to the extent therein specified Section 9 Additional Bonds No additional bonds shall be issued payable from the municipal retail sales and use tax revenues and having a lien upon such revenues which is prior or superior to the lien of the bonds authorized herein However, nothing in this Ordinance shall be construed in such manner as to prevent the issuance by the City of additional bongs payable from the municipal retail sales and use tax revenues and constituting a lien upon said revenues equal to or on a parity with the lien of the bonds authorized herein, provided the following requirements have been complied with -10- (a) That at the time of issuance of any such additional parity lien bonds, there is no deficiency in the reserve required by this Ordi- nance, and (b) A Certified Public Accountant, licensed to and practicing in the State of Colorado, shall have certified that the net revenue from the two percent municipal retail sales and use tax authorized by Ordinance No 58, 1967, as amended, and Chapter 104 of the City Code, collected or reserved by the City during the last preceding fiscal year prior to the issuance of the additional parity lien bonds, shall have been not less than 150% of the total aggregate average annual requirements for principal and interest of the bonds authorized herein and the proposed additional parity lien bonds to be issued If additional sales and use taxes have been established during said period, however, the net revenue may be adjusted by applying the additional sales and use tax as if it had been in effect during the entire period during the preceding fiscal year Nothing herein shall prevent the City from issuinq bonas payable from such sales and use tax revenues and having a lien on such revenues and the reserve which is junior and subordinate to the lien of the bonds authorized herein Section 10 Oefeasance When all principal and interest in connec- tion with the bonds hereby authorized have been duly paid, the pledge and lien and all obligations hereunder shall thereby be discharged and the bonds shall no longer be deemed to be outstandinq within the meaninq of this Ordinance There shall be deemed to be such due payment when the City has placed in escrow and in trust with a commercial bank located within or without the State of Colorado, and exercising trust po��ers, an amount sufficient (including the known minimum yiela from Federal Securities in which such amount may be initially invested) to meet all requirements of principal and interest as the same become due to their final maturities The Federal Securities shall become due at or prior to the respective times on which the proceeds thereof shall be needed, in accordance with the schedule established and agreed upon between the City and such bank at the time of the creation of the escrow, or the Federal Securities, shall be subject to redemption at the option of the holders thereof to assure such availability as so needed to meet such schedule The term "Federal Securi- ties" within the meaning of this section shall include only airect obliga- tions of, or obligations the principal and interest of which are uncondi- tionally guaranteed by, the United States of America Section 11 Severability That if any one or more sections or parts of this Ordinance shall be adjudged unenforceable or invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Ordinance, it being the intention that the various provisions hereof are severable -11- S � Section 12 Repealer All ordinances or parts thereof in conflict with this Ordinance are hereby repealed Section 13 Ordinance Irrepealable After said bonds are issued, this Ordinance shal be and remain irrepealable until said bonds and the interest thereon shall have been fully paid, satisfied and discharged Section 14 Recording and Authentication This Ordinance, as adopted by the City Council , shall be numbered and recorded, and the adoption and publication shall be authenticated by the signatures of the Mayor and City Clerk and by the certificate of the publisher, respectively Introduced, considered favorably on first reading and ordered pub- lished this 15th day of April , 1980, and to be prese d for final passaqe on the 29th day of April , 1980 Flay (SEAL) ATYEST y Clerk Passed and adopted on final reading on this 29th day of April , 1980 ja Mayor AT T ST City Clerk -12-