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HomeMy WebLinkAbout022 - 09/08/1960 - AUTHORIZING THE CITY TO REFUND THE BONDS OF SPECIAL IMPROVEMENT DISTRICTS HERETOFORE CREATED IN SAID ORDINANCE NO. 22 :�960 AN ORDINANCE AUTHORIZING THE CITY OF FORT COLLINS, COLORADO, TO REFUND.THE BONDS OF SPECIAL IMPROVEMENT DISTRICTS HERETOFORE, REATED IN .SAID CITY, PRESCRIBING THE,FORM OF REFUNDINGj'BONDS, CREATING A.REFUNDIN&�_ IMPROVEMENT BOND FUND,. PROVIDING FOR THE PAYMENT OF SAZD REFUNDING BONDS .AND THE -INTEREST THEREON. WHEREAS, the City of Fort Collins, Colorado, has heretofore created improvement districts in said City, has caused public improvements to be constructed therein and has issued its bonds for the purpose of paying the costs and expenses of such improvements; and WHEREAS, the names and numbers of such improvement districts, the principal amount of bonds outstanding in said districts on August 15, 19602 and the rate of interest on such bonds, are as follows:, District % Amtt of bonds No. and Name Interest Outstanding Storm Sewer No. 9 -- None Storm Sewer No. 10 -- None Storm Sewer No. 11 -- None Storm Sewer No. 12 -- None Storm Sewer No. 13 6% $ 9,000.00 Sanitary Sewer No. 50 6% 42000.00 Sanitary Sewer No. 51 6% 1,000.00 Sanitary Sewer No. 52 -- None Consolidated Impr. Dist. No. 44 -- None Consolidated Impr. Dist. No. 45 -- None Consolidated Impr. Dist. No. 46 -- None Consolidated Impr. Dist. No. 47 -- None Consolidated Impr. Dist. No. 48 6% 1A,000.00 Consolidated Impr. Dist. No. 49 5% 102000.00 Consolidated Impr. Dist. No. 50 67/ 5,000.00 Consolidated Impr. Dist. No. 51 67/. 10,000.00 Consolidated Impr. Dist. No. 52 Q. 9,000.00 Consolidated Impr. Dist. No. 53 6% 123000.00 Consolidated Impr. Dist. No. 54 (A 43,000.00 and WHEREAS, on August 15, 1960, the principal amount of bonds out- standing was $113,000.00; and WHEREAS, on said date, cash on hand to the credit of said districts ti was $42,338.94,: the principal amount of assessments estimated to be collectible was $112,225.51, exclusive of the delinquent interest and penalties, and the face amount of tax certificates held by the City for delinquent assessments, was $3.63, making a total of $154,568.08; and WHEREAS, all of said outstanding bonds are subject to call and redemption; and WHEREAS;' although the cost of constructing such improvements was assessed .against property, in the several districts, such 'improvements • were actually public improvements benefiting the City at large, and to pay the cost of which the City might have levied a tax from year to year on all the taxable property in the City; and WHEREAS, due to costs in some of the districts which exceeded the engineer's estimates and due to inability to complete the improvements within the time limits specified, resulting in delay in certification • :. of completion of the districts and further resulting in additional interest being required to be paid on some of the bond issues thereby causing a situation that will result in a default in the payment of interest on and principal of bonds of some of the improvement districts in said City, and WHEREAS, a default in the payment of any of said improvement bonds would seriously affect the credit and reputation of said City and .would cause privation and hardship to the owners of said bonds, and WHEREAS, the City Council considers that the City is morally obligated as a matter of good faith to exercise every' lawful power to prevent a default and further considers that a refunding of its improvement bonds would be' advantageous to the City and further considers that the refunding bonds provided .for herein will not be less favorable to the .City than the original issues, and WHEREAS, some of said outstanding bonds are about to become due and will be in default because of a lack of funds to pay the same; and WHEREAS, under Section 6, Article XX of the Constitution of the State of Colorado, and under Section 202 Article V of the Charter of the City of Fort Collins, Colorado, the City of Fort Collins has the power to refund and liquidate its municipal obligations, including bonds of improvement districts, and has the power to levy and collect special assessments for local improvements. 2 THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, THAT: Section 1. For the purpose of refunding the bonds of the foregoing improvement districts, the City shall execute and deliver a single issue of bonds in the principal amount of $113,000.00 to be designated "Improvement Refunding Bonds", dated November 1, 1960, bearing interest at the rates specified herein, payable semi-annually on the first days of May and November in each year, to be evidenced by coupons attached to said bonds, and consisting of 226 bonds in the denomination of $500 each, numbered from one to 226- inclusive. The rates of interest on said bonds shall be as follows: Nos. 21 - 226, Inclusive, - 6 Nos. 1 - 20, Inclusive, . - 5 Said bonds shall be due and payable on the first day of June, 1975, but shall be subject to call and payment, at ,par and accrued interest, in regular numerical order, any time before maturity on the publication of a notice in the official newspaper of the City. At the expiration of 30 days from the publication of such notice, interest on the bonds so called shall cease. The principal of and interest on said bonds shall be payable in lawful money of the United States of America, at ,the office of the City Clerk in Fort Collins, Colorado. . Said bonds shall be signed by the Mayor and the Director of Finance and sealed with the seal of the City, attested by the City r.E Clerk. The coupons attached to said bonds shall bear the facsimile signature of the Director of Finance. The City Clerk shall register said bonds and coupons in a book kept. by him in.his office for that purpose. Section 2. Said Refunding Improvement.Bonds and the interest thereon shall be payable in regular numerical order out of a fund hereby created and designated "Refunding Improvement Bond Fund" which shall contain the receipts from paid and, unpaid assessments levied against property in districts, the bonds of which are to be refunded as herein provided, plus paid and unpaid interest and penalties on said assessments, and• plus the proceeds derived and to be derived from the sale of tax certificates and property now and hereafter held by the City for delinquent assessments inisaid Districts. 3 ti In no event shall the total amount of refunding bonds issued hereunder exceed the total of the principal of unpaid bonds to be refunded. Section 3. Said Refunding Improvement Bonds, and the coupons to be attached thereto, shall be in substantially the following form: 4 UNITED STATES OF AMERICA State of Colorado County .of Larimer CITY OF FORT COLLINS REFUNDING IMPROVEMENT BOND No. $500 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 hereinafter designated, but not otherwise, the sum of FIVE HUNDRED DOLLARS ' in lawful money of the United States of America, on the first day of November, A. D. 1975, with interest thereon from date at the rate of _der centum ( %) per annum, payable semi-annually on the first day of May and the first day of November in each year, both principal and interest being payable at the office of the City Clerk, in Fort Collins, Colorado, upon presentation and surrender of the annexed coupons and ,this bond as they severally become due. This bond is subject to call and redemption in its regular numerical order any time prior to maturity at par and accrued interest, on the publication of a notice in the official newspaper of the City. At the expiration of 30 days from the publication of such notice, interest on the bonds so called shall cease. This bond is one of a series issued for the purpose of refunding outstanding improvement district bonds of said City in full conformity with the Constitution and laws of the State of Colorado, the Charter of said City, and an ordinance of said City adopted prior to the issuance hereof, The principal of and interest on this bond are payable solely out of a special fund designated "Refunding Improvement*nd Fund," which shall contain the receipts from all paid and unpaid assessments levied against property in improvement districts in said City, the bonds of which have been refunded by bonds of this issue, together with paid and unpaid interest and . penalties on said assessments, and the proceeds derived and to be derived by the City from the sale of tax certificates and property now and hereafter held by the City for delinquent assessments in said Districts, all as is 5 n 1960, more fully shown in Ordinance No, 22 ' of said City, authorizing this issue of bonds. It is hereby certified, recited and warranted that for the payment of this bond and the interest thereon, said City has created and will maintain said fund and will deposit therein amounts collected and to be collected from said assessments, interest and penalties, and the proceeds to be derived from the sale of said tax certificates and delinquent property held under tax deeds, and out of 'said fund and as-an irrevocable and prior charge thereon, will pay. this bond and the interest accruing hereon, in the manner and at the times provided by said Ordinance under which this . bond. is issued. For a description of said fund and the nature and extent of the security afforded .thereby for the payment of this bond, principal and interest, reference is made to said Ordinance. It is further certified, recited and warranted that all requirements of law and all conditions precedent have been fully complied with by the proper officers of said City in the issuance of this bond and that this bond does not exceed any constitutional., statutory, Charter or other limitation, and for the. punctual payment of this bond and the interest hereon, said City pledges all of its lawful corporate powers. IN TESTIMONY WHEREOF, the City of Fort Collins, Colorado, has. caused this bond to be signed by its Mayor and Director of Finance, sealed with the seal of said City, attested by the City Clerk, and the coupons attached hereto to be executed with the facsimile signature of said Director of Finance, as of the first day of November, A. D. 1960. Mayor Director of Finance ( S E A L ) ATTEST; - City Clerk 6 (Form of Coupon) No. $ May, on the first day-of November, A. D. 19 , (unless the bond to which this coupon is attached has been called for prior redemption), the City of Fort Collins, in the County of Larimer and State of Colorado, will pay to bearer DOLLARS in lawful money of the United States of America, at the office of the City Clerk, in Fort Collins, Colorado, out of the "Refunding Improvement Bond Fund", but not otherwise, being six months' interest on its Refunding Improvement Bond dated November 1, 1960, bearing No. (Facsimile Signature) Director-of Finance. Section 4. Said Refunding Improvement Bonds may be exchanged, dollar for dollar, for .the outstanding bonds of said districts, or said refunding bonds, or a part thereof, maybe sold and the proceeds thereof applied in the payment of said outstanding improvement district bonds and interest. In no event shall the amount. of refunding bonds issued hereunder exceed the amount of bonds refunded. In the event said refunding bonds, or any of them, are sold, the sale price shall not be less than par and accrued interest, and the proceeds of such sale shall be applied only in the payment of outstanding improvement bonds of districts whose bonds are refunded hereunder. All outstanding improvement bonds which are exchanged for refunding bonds, or which are paid with the proceeds of refunding bonds, shall be cancelled and held by the City Clerk as evidence of the original indebtedness, until the said refunding bonds and the interest thereon are paid in full. Section 5. After the issuance of any of the Refunding Improvement Bonds authorized herein, the City shall, by all lawful means, collect and enforce outstanding improvement assessments and interest thereon, and shall place in said Refunding Improvement Bond Fund all amounts collected or to be collected from such assessments on property in districts, the bonds of which have been refunded, all interest and penalties on such assessments, the proceeds to be derived from the sale of tax certificates now or hereafter , held. by said City, on property in districts, the bonds of which have been refunded, the proceeds of the sale of property now or hereafter held by the City under tax deeds for delinquent assessments, and, in addition, such other or further amounts as the City Council may determine to place therein. Section 6. The moneys in said Refunding Improvement Bond Fund are irrevocably pledged for the payment of Refunding Improvement Bonds issued hereunder and the interest thereon, after paying the costs and expenses of collecting and enforcing said assessments. At any time when there is sufficient money in said Refunding Improvement Bond Fund, over and above current interest requirements, to redeem one or more of said Refunding Bonds, the City Clerk shall forthwith call, pay and cancel a bond or bonds in regular numerical order. 8 Section 7. The City Clerk is hereby authorized and directed to sell tax certificates held, or to be held by the City on property in districts, the bonds of which have been refunded hereunder, at such price or prices as the Director of Finance may determine; also, said clerk may sell property held or to be held by the City under tax deeds for delinquent assessments in said districts, in such manner and for such prices as shall be specified by an ordinance or ordinances hereafter to be adopted by the City Council; provided, however, that the sum of the amounts to be realized from the sale of said Tax Certificates land property, to- gether with the amount of unpaid assessments on property in districts, the bonds of which have been refunded, and the interest and penalties thereon, shall never be less than the principal of said Refunding Improvement Bonds at that time outstanding and the accrued interest thereon. The proceeds from the sale of said tax certificates and property shall be placed' in said Refunding Improvement Bond Fund and shall be applied only for the purposes, specified in Section 6 hereof. Section 8. Nothing contained herein shall in any way affect the liens and liabilities which now exist against the properties in the improvement districts hereinbefore designated, for the costs and expenses of constructing and installing improvements in said districts, but said liens and liabilities shall continue to be in force and effect and shall persist until paid, for the benefit of each and every holder of a refunding bond issued hereunder. Section 9. The City Clerk shall continue to keep separate accounts for each improvement district in said City, which accounts shall at all times show the amount of paid and unpaid assessmergs, interest and penalties on and against the various properties in the respective improvement districts. Section 10. Properties in districts, the bonds of which have been refunded, which become delinquent in the payment of assessments or installments hereof, or interest or penalties thereon, shall be sold at the times and in the manner provided by law. At such tax sales, if 9 there be no other bidder, the City shall, in its name, receive such delinquent properties, taking certificates of purchase . therefor and it shall sell and dispose of such properties or certificates as provided herein, and shall place the proceeds thereof in said Refunding Improvement Bond Fund, Section 11. The owner of Refunding Improvement Bonds issued hereunder shall be subrogated to all the rights and privileges of the owners of bonds refunded, and any owner of aRefunding Bond, on his own behalf and on behalf of all others similarly situated, shall have full and complete power and authority to enforce 'and compel any or all of said rights and privileges. Section 12. It is contemplated that money now in improvement district funds, together with collections of unpaid assessments, interest and penalties and the proceeds to be derived from the sale of tax certificates and property, will eventually be sufficient to pay the interest on and the .principal of all Refunding Improvement Bonds issued under the authority of this ordinance, and that if the City Council should determine to place any other or further I amounts in said Fund, the same may be considered only as a temporary advancement to said Refunding Improvement Bond Fund, to be reimbursed to the City when collections are sufficient therefor. Section 13. When said Refunding Improvement Bonds, principal and interest, are ,paid in full, any money in said Refunding Improvement Bond Fund, all assessments, interest and penalties thereafter collected, and the proceeds of sales of said tax certikicates and properties, shall be turned over and reimbursed to the City and shall be used or credited as the City Council may then determine. Section 14. If the City should ever make advancements to said Fund, for the purpose of paying said Refunding Bonds or interest, it shall be subrogated to all the rights and privileges of the former owners of said bonds and interest coupons. 10 i Section 15. The provisions of this ordinance shall constitute an irrevocable contract between the City of Fort Collins, Colorado, and each and every holder or owner of a Refunding ,Improvement .Bond issued hereunder. f Section 16. If any Court of competent jurisdiction should ever determine that any part of this ordinance is invalid or unenforceable, such• determination shall not affect the remaining parts hereof, the intention being to make the provisions hereof severable. Section 17. The officials of said _City charged with any duty or obligation under ,the provisions hereof are authorized, empowered and directed to fulfill such duty or obligation promptly and in strict conformity with the terms and intent hereof, and said officials shall take and adopt such steps,. proceedings and measures as may be necessary or advisable fully to carry out the liberal purposes and intent of this ordinance.. Introduced, considered favorably on first reading and ordered published this 18th day of August, A. D. 1960, and to be presented for final passage on the 8th day of September, A. D. 1960. tyo ATTEST: Cit Clerk Passed and adopted on final reading this 8th day of September, A. D. 1960. I�y�►'Lc . Mayor ATTEST: 0 City Cl rk 11