Press Alt + R to read the document text or Alt + P to download or print.
This document contains no pages.
HomeMy WebLinkAbout034 - 04/01/1980 - RELATING TO STORM SEWER IMPROVEMENT DISTRICT NO. 17 ORDINANCE NO 34, 1980
BEING AN ORDINANCE RELATING TO STORM SEWER IMPROVEMENT
DISTRICT NO 17 AUTHORIZING THE ISSUANCE OF BONDS TO
PAY THE COST OF CONSTRUCTION OR IMPROVEMENTS IN SAID
DISTRICT, WHICH BONDS SHALL BE PAYABLE FROM ASSESSMENTS
TO BE MADE ON THE REAL PROPERTY IN THE DISTRICT AND
PRESCRIBING OTHER DETAILS CONCERNING SUCH BONDS
WHEREAS, the City Council of the City of Fort Collins heretofore
created by Ordinance No 19, 1980, Storm Sewer Improvement District No
17 (hereinafter sometimes referred to as the "District") for the purpose of
installation of storm sewer lines to provide storm drainage for the benefit
of the properties comprising the district and to carry off storm waters
from properties in the District, and
WHEREAS, the District was formed pursuant to the provisions of Chapter
16 of the Code of the City of Fort Collins and the Charter of the City of
Fort Collins, and
WHEREAS, Chapter 16 of the Code of the City of Fort Collins and the
Charter of the City of Fort Collins provide for the issuance of bonds to
pay the cost of improvements in special assessments districts, which bonds
are to be repaid through special assessments levied against the property in
the District, except that whenever three-fourths of the bonds have been
paid and cancelled, and if the remaining assessments are not paid in time
to redeem the final bonds for the District, the City is required by Section
20 6 of Article V of the Charter of the City of Fort Collins to pay the
bonds when due and levy additional ad valorem taxes necessary therefor,
and
WHEREAS, in order to pay the cost of the improvements installed and to
be installed in said District, it is necessary to issue and sell special
improvement bonds
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS
Section 1 Definitions The terms of this ordinance define for all
purposes of this ordinance and of any ordinance amendatory hereto or
supplemental hereto or relating hereto or of any instrument or document
appertaining hereto except where the context by clear implication other-
wise requires shall have the meaning herein specified
A Bonds - means the bonds authorized and issued pursuant to this
ordinance
B Coupons - means those authorized and issued hereunder and
evidencing the interest on the applicable bonds or bonds
C He, )y, Herein, Hereinabove, He nafter, Hereinbefore,
Hereof, Hereto, Hereunder - or any similar terms refer to this ordinance
and not solely to the particular portion thereof in which the such word is
used
D Heretofore - means before the adoption of this ordinance
E Hereafter - means after the adoption of this ordinance
F Improvement District - means Storm Sewer Improvement District
No 17
G Project or Improvement Project - means the improvements
authorized and constructed pursuant to the ordinance creating Storm Sewer
Improvement District No 17
H Purchaser - means such person or persons as shall purchase the
bonds from the City
Section 2 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 princi-
pal amount thereof then outstanding
Section 3 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 confirmed
Section 4 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 $286,000 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 whenever three-fourths of said 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 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 The City will need to acquire right-
of-way through the property not included in this District If such right-
of-way cannot be obtained voluntarily from the owners thereof, the City
will need to condemn such right-of-way The property owners have hereto-
fore agreed in writing that any costs incurred in acquiring such a right-
of-way will be shared among them and assessed against their respective
properties If condemnation becomes necessary, the within ordinance will
need to be amended to include an amount sufficient to pay for all costs
associated with such condemnation
-2-
f
Section 5 Bond Details The bonds shall be payable to the bearer,
shall be dated May 1, 1980, and due May 1, 1990 The bonds shall consist
of 286 bonds in the demonination of $1 ,000 numbered consecutively in
regular numerical order from 1 to 286 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 deduction for exchange or
collection charges at the office of the Director of Finance of the City of
Fort Collins
Section 6 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 7 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 Director 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 redemption date, and
from and after such date interest shall cease to accrue Notice having
been given in the manner hereinabove 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 matur-
ing subsequent to the redemption date, the City shall pay the bond or bonds
so called for redemption
Section 8 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
-3-
f
Section 9 Form and Execution of Bonds and Coupons Each of the
bonds shall be execute in t e 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 authenti-
cated by the facsimile signature of the City Clerk Said bonds and coupons
bearing the signatures 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 10 Special Assessment Obligations All of the bonds,
together with the interest accruing thereon, shall be payable and collect-
ible 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 principal 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 assess-
ments 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 assess-
ments due the District Such bonds shall not constitute an indebtedness
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 11 Form of Bonds and Coupons The bonds and the coupons
appertaining thereto shall be in substantially the following form
UNITED STATES OF AMERICA
STATE OF COLORADO CITY OF FORT COLLINS
STORM SEWER IMPROVEMENT DISTRICT NO 17
BOND
NO $1,000 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 ($10000 00)
-4-
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 Storm Sewer Improvement District No 17 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 Trea-
sury 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 publica-
tion 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
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 sate 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 espe-
cially benefited by said improvements, except that as provided in Section
20 6 of Article V of the Charter of the City of Fort Collins whenever
three-fourths of said bonds have been paid and cancelled and if for any
reason the remaining assessments are not paid in time to redeem the remain-
ing 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
-5-
of the final publication of the assessing ordinance hereafter to be adopt-
ed, 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, including this bond, does not
exceed the amount authorized by law, and it is further certified and
recited that every requirement 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 bona 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, countersigned by its Director of
Finance, and attested by its City Clerk, under the seal of said City, and
the interest coupons 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 callea 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, Coloraoo, being six (6) months '
-6-
r
interest on its local improvement bond, dated May 1, 1980, issued for
paying the costs of improvements in Storm Sewer Improvement District No
17
Facsimile Signature City Clerk
Section 12 Bond Preparation, Execution and Delivery The Mayor,
City Clerk and Director of Finance are hereby authorizea 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 13 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 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 provided, 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 invest-
ments as shall be proper for City funds, but the City hereby covenants 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 regulations 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
-7-
5 Such sums may be otherwise invested if and when such act
and requlations permit the investment to be made in the manner wade 'Aithout
(,ausing 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
Introducea consiaered favorably on first reading, and ordered pub-
lished this 4tTI day of March 1980, and to be presented
for final passage on the lst day of April 1980
Pja or
AT ST •
City Clerk
Passed and adopted on final reading this 1st day of April ,
1980
TT T
Ci y Clerk
-8-