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HomeMy WebLinkAbout044 - 04/15/1980 - AMENDING ORDINANCE NO. 88 1979, PROVIDING FOR THE CREATION AND ORGANIZATION OF STREET IMPROVEMENT DI i ORDINANCE NO 44 , 1980 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDI ORDINANCE NO 88, 1979, WHICH ORDINANCE PROVIDED FOR TH CREATION AND ORGANIZATION OF STREET IMPROVEMENT DISTRICT N 74 BY ADDING THERETO PROVISIONS FOR THE ISSUANCE F BONDS TO PAY THE COST OF CONSTRUCTION WHEREAS, hereto ore the Council of the City of Fort Collins created Street Improvement Di trict No 74, and WHEREAS, the City i now prepared to proceed with the actual construc- tion of the improvement called for in said Improvement District, and WHEREAS, it is appro riate therefore that the City, by ordinance, provide for the issuance of onds to finance said construction NOW, THEREFORE, BE IT 0 DAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows Section 1 That Section of Ordinance No 885 1979 be, and the same hereby is, renumbered as Sect on 20 Section 2 That Ordinance o 88, 1979 be, and the same hereby is, amended by the addition thereto the following sections Section 7 Definitions T e terms of this ordinance define for all purposes of this o finance and of any ordi- nance amendatory hereto or supplem tal hereto or relating hereto or of any instrument or docum nt appertaining hereto except where the context by clear implication otherwise requires shall have the meaning herein pecified A Bonds - means the bonds au horized and issued pursuant to this ordinance B Coupons - means those author zed and issued hereunder and evidencing the interest on he applicable bonds or bonds C Hereby, Herein, Hereinabove, H reinafter, Hereinbefore, Hereof, Hereto, Hereunder - or a y similar terms refer to this ordinance and not solely to th particu- lar portion thereof in which the such word is used D Heretofore - means before the adoption o this ordinance Wltb mwm E Hereafter - means after the adoption of this ordinance F Improvement District - means Street Improvement District No 74 G Project or Improvement Project - means the improvements authorized and constructed pursuant to the ordinance creating Street Improvement District No 74 H Purchaser - means such person or persons as shall purchase the bonds from the City Section 8 Construction This ordinance, except where the context by clear implication herein otherwise requires, shall be construed as follows A Definitions include both singular and plural B Pronouns include both singular and plural and cover all genders C Any percentage of bonds is to be figured on the unpaid principal amount thereof then outstanding Section 9 Ratification All action heretofore taken by the City Council and the officers of the City directed toward the project and the issuance of the bonds hereunder be, and the same hereby is, ratified, approved and con- firmed Section 10 Authorization of Bonds For the purpose of paying the costs of the project, bonds of the City of Fort Collins in the aggregate amount of $203,000 00 are hereby authorized to be issued, which bonds shall be payable both as to principal and interest solely out of the proceeds from special assessments to be levied against property in the District, except that as provided in Section 20 6 of Article V of the Charter of the City of Fort Collins when- ever three-fourths of said bonds have been paid and can- celled and if for any reason the remaining assessments are not paid in time to redeem the remaining bonds, the City shall pay the bonds when due and levy additional ad valorem taxes necessary therefor and reimburse itself by collecting the unpaid assessments due the District The City pledges irrevocably such income from special assessments to the payment of the bonds and the interest thereon -2- Section 11 Bond Details The bonds shall be payable to the bearer, shall be dated flay 1, 1980, and due May 1, 1990 The bonds shall consist of 203 bonds in the demonina- tion of $1,000 numbe-ed consecutively in regular numerical order from 1 to 203 inclusive They shall bear interest until maturity at the rate of thirteen percent (13%) per annum evidenced by one set of coupons payable to bearer and attached to the bonds payable semi-annually on the 1st days of May and November of each year commencing November 1, 1980 Both principal and interest shall be payable in lawful money of the United States of America without deduc- tion for exchange or collection charges at the office of the Director of Finance of the City of Fort Collins Section 12 Prior Redemption Option Bonds shall be subject to prior redemption at the option of the City in numerical order on any interest payment date, upon payment of par and accrued interest of the bond so redeemed Section 13 Notice of Prior Redemption As provided in Chapter 16 of the Code of the City of Fort Collins, notice of any prior redemption shall be given by the Direc- tor of Finance in the name of the City A By publication of such notice for five (5) days in an official newspaper published in the City of Fort Collins, and B By sending a copy of such notice by first class mail , postage prepaid to any bond holder who has furnished his post office address to the City Clerk within ten (10) days after the publication required in A above Such notice shall specify the number or numbers of the bonds to be so redeemed and the date fixed for redemption and such notice shall further state that on such redemption date there shall become due and payable upon each bond so to be redeemed at the office of the Director of Finance the principal amount thereof and accrued interest to the redemp- tion date, and from and after such date interest shall cease to accrue Notice having been given in the manner herein- above provided, the bond or bonds so called for redemption shall become due and payable on the redemption date so designated and upon presentation at the office of the Director of Finance of such called bond or bonds, together with the appurtenant coupons maturing subsequent to the redemption date, the City shall pay the bond or bonds so called for redemption -3- Section 14 Negotiability Subject to the provisions expressly stated or necessarily implied herein, the bonds hereby authorized shall be fully negotiable and shall have all the qualities of negotiable coupon paper and the holder or holders thereof shall possess all rights enjoyed by the holders of negotiable instruments under the provisions of the Uniform Commercial Code Section 15 Form and Execution of Bonds and Coupons Each of the bonds shall be executed in the name of and on behalf of the City and authenticated with the facsimile signature of the Mayor, countersigned by the facsimile signature of the Director of Finance with the corporate seal thereto affixed and attested by the manual signature of the City Clerk The interest coupons appertaining thereto shall be executed and authenticated by the facsimile signature of the City Clerk Said bonds and coupons bearing the signa- tures of the officers in office at the time of the signing thereof shall be valid and binding obligations of the City, notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose signatures appear thereon may have ceased to fill their respective offices Section 16 Special Assessment Obligations All of the bonds, together with the interest accruing thereon, shall be payable and collectible solely out of the net proceeds received by the City from special assessments levied against property in the District All of such income of the City is so pledged The holders of the bonds may not look to any general or other fund for the payment of princi- pal and interest on such obligations except that as provided in Section 20 6 of Article V of the Charter of the City of Fort Collins, whenever three-fourths of the bonds have been paid and cancelled and if for any reason the remaining assessments are not paid in time to redeem the remaining bonds, the City shall pay the remaining bonds when due and levy additional ad valorem taxes necessary therefor and reimburse itself by collecting the unpaid assessments due the District Such bonds shall not constitute an indebted- ness nor a debt within the meaning of any constitutional , charter or statutory provision or limitation nor shall they be considered or held to be general obligations of the City Section 17 Form of Bonds and Coupons The bonds and the coupons appertaining thereto shall be in substantially the following form -4- UNITED STATES OF AMERICA STATE OF COLORADO CITY OF FORT COLLINS STREET IMPROVEMENT DISTRICT NO 74 BOND NO $19000 00 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 fund designated below, the sum of ONE THOUSAND DOLLARS ($1,000 00) in lawful money of the United States of America, at the office of the Director of Finance of said City on May 1, 1990, subject to call and payment, however, at any time prior thereto, as provided in the City Charter and Chapter 16 of the Code of the City of Fort Collins, with interest thereon from date until payment, payable on November 1, 1980 and semi-annually thereafter on May 1 and November 1 of each year at the office of the Director of Finance of the City of Fort Collins, upon presentation and surrender of the annexed coupons as they severally become due This bond is issued for the purpose of paying the costs of local improvements constructed in Steet Improvement District No 74 in said City This bond shall be callable on any interest payment date by the Director of Finance of the City of Fort Collins as provided in Section 16-29 of the Code of the City of Fort Collins, which provides as follows "Whenever there are available funds in the City Treasury therefor, it shall be the duty of the Director of Finance to call in and pay a suitable number of bonds outstanding, by giving notice for five (5) days in an official newspaper published in the City At the expiration of thirty (30) days from the first publication of such notice, interest on the bonds so called shall cease The notice shall specify by number the bonds called, and all such bonds shall be paid in numerical order The holder of any such bonds may at -5- any time furnish his post office address to the City Clerk and in such event, a copy of the publication shall be mailed by the City Clerk to the bondholder at such address within ten (10) days after the date of publication " This bond is payable out of the proceeds of special assessments to be levied upon the real property situate in said improvement district especially benefited by said improvements, except that as provided in Section 20 6 of Article V of the Charter of the City of Fort Collins when- ever three-fourths of said bonds have been paid and can- celled and if for any reason the remaining assessments are not paid in time to redeem the remaining bonds, the City shall pay the bonds when due and levy additional ad valorem taxes necessary therefor and reimburse itself by collecting the unpaid assessments due the District The amount of the assessments so to be made upon the real estate in said improvement district for the payment thereof, with accrued interest, is a lien upon said real estate in the respective amounts to be apportioned to said real estate and to be assessed by an ordinance of said City, and the lien created by said assessing ordinance, together with all interest thereon, penalties for default in the payment thereof, and all costs in collecting the same, shall , from the date of the final publication of the assessing ordinance here- after to be adopted, constitute a first and prior lien over all other liens except general taxes, in the same manner as general taxes now provided by law It is hereby certified and recited that the total issue of bonds of said City for said improvement district, includ- ing this bond, does not exceed the amount authorized by law, and it is further certified and recited that every require- ment of law relating to the creation of the district, the making of local improvements therein and the issuance of this bond, have been fully complied with by the proper officers of said City and that all conditions required to exist and all things required to be done precedent to and in the issuance of this bond to render the same lawful and valid have happened and been properly done and performed and did exist in regular and due time, form and manner as required by law IN TESTIMONY WHEREOF, the said City of Fort Collins has caused this bond to be subscribed by its Mayor, counter- signed by its Director of Finance, and attested by its City Clerk, under the seal of said City, and the interest coupons -6- hereto attached to be attested by the facsimile signature of the City Clerk as of the day of 19 Mayor SEAL ATTEST COUNTERSIGNED City Clerk Deputy Director of Finance (Form Coupon) No (Based upon maximum interest rate of 13%) On the 1st day of November, 1980, unless the bond to which this coupon is attached has been called for prior redemption, the City of Fort Collins will pay to bearer (Based on maximum interest rate of 13%) in lawful money of the United States of America, at the office of the Director of Finance of Fort Collins, Colorado, being six (6) months' interest on its local improvement bond, dated May 1, 1980, issued for paying the costs of improvements in Street Improvement District No 74 Facsimile Signature City Clerk Section 18 Bond Preparation, Execution and Delivery The Mayor, City Clerk and Director of Finance are hereby authorized and directed to prepare and execute the bonds as herein provided When the bonds have been duly executed and sold, the Director of Finance shall deliver them to the purchaser upon receipt of the agreed purchase price Section 19 Disposition of Bond Proceeds A Accrued Interest and Premium All monies received as accrued interest at the time of delivery of the bonds from the sale thereof and any premium therefor shall -7- be deposited into the special assessment fund in an account created for the District to apply on the payment of interest next due on the bonds payable therefrom B Investment Except as herein otherwise pro- vided, the proceeds derived from the sale of the bonds shall be applied solely to the project Pending such application, the bond proceeds may be invested in such investments as shall be proper for City funds, but the City hereby cove- nants for the benefit of each holder of the bonds that 1 Bond proceeds shall not be invested in such manner as to result in the loss of exemption from federal income taxation of interest on the bonds 2 Such funds constituting in the aggregate a major portion or more of the proceeds of the bonds shall not be invested directly or indirectly in taxable obligations so as to produce an adjusted yield (including permissible adjustments for any premiums, discounts and costs) which is materially higher than the adjusted yield of the bonds and which results in the bonds constituting taxable "arbitrage bonds" within the meaning of Section 103(d) , Internal Revenue Code of 1954, as amended, and the income tax regula- tions issued thereunder 3 The City shall make no use of the proceeds of the bonds which will cause them to be such arbitrage bonds 4 The covenant in this section imposes an obligation on the City to comply with the requirements of Section 103(d) of the Internal Revenue Code and such income tax regulations, but 5 Such sums may be otherwise invested if and when such act and regulations permit the investment to be made in the manner made without causing the bonds to become such arbitrage bonds D Purchaser Not Responsible Any purchaser of the bonds herein authorized, however, shall in no manner be responsible for the application or disposal by the City or by its officers of the funds derived from the sale thereof or of any other funds herein designated Introduced, considered favorably on first reading, and ordered pub- lished this ls_ day of April 1980 and to be presented for final -8- I passage on the 15th day of April 1980 Mayor ATTEST City Clerk Passed and adopted on final reading this 15th day of April , 1980 Mayor ATTEST City Clerk -9-