HomeMy WebLinkAbout113 - 09/15/1981 - AUTHORIZING THE ISSUANCE OF BOND ANTICIPATION NOTES IN THE PRINCIPAL AMOUNT OF $2,000,000, FOR THE P ORDINANCE NO. ,113,.1981
.AN .ORDINANCE AUTHORIZING THE ISSUANCE OF BOND
:ANTICIPATION NOTES OF THE CITY OF FORT COLLINS,
`COLORADO, IN THE PRINCIPAL AMOUNT OF $2,000,000,
F.ORTHE 'PURPOSE OF ACQUIRING, CONSTRUCTING AND INSTALLING _
IMPROVEMENTS TO THE FORT COLLINS - LOVELAND
MUNICIPAL AIRPORT, AND PROVIDING FOR THE FORM
-OF THE NOTE ,AND,PROVJ SION FOR THE PAYMENT
THEREOF.
WHEREAS, the -City of Fort -Collins, Larimer County, Colorado (the
b"C.tty") , 1's .,a "ddl-y organized :and -acting-!home rule 'City 4of 'the _-State of
-Colorado, created and operating pursuant to Article XX of the Constitution
=of said State and a home rule Charter (the "Charter") adopted and from time
-_to-Mime amended 'in :accordance therewith; :and
WHEREAS, the Cities of Fort Collins and Loveland jointly own and
,operate the .Fort:-Col fins -:-Loveland Municipal. Airport; .and. the :City Council
vhas determined to acquire, -construct and"ins::tall certai'n 'J mprovements to
the airport; and
WHEREAS, :'Section `20:2 >rof -the":Charter.rrau:thorizes -the ::Ci;ty "-to borrow
money, by Council action and without an election, in anticipation of the
:collection of ,tuxes or other revenues =:and to =issue :short-term notes :to
`evidence the amount so borrowed"; and
WHEREAS, the Colorado General Assembly in .1981 has .passed S.B. No.
1173, which -authorizes a municipality to .:issue bond Aantic'ipation •notes in
anticipation of the issuance of bonds; and
WHEREAS, The City Council has determined to 'issue• bond anticipation
-notes pursuant to Section 20.2 of the Charter, and. S.B. No. ' 173 (Title 29,
Article 4, Part I. C.R.S. 1973, as amended) the principal of and interest
on the notes to be paid 'from the proceeds . of sales and use tax- revenue
:bon'ds ;of .-:the :City 'to'.-be .author.ized :.and -'issued. >at :°a "later date, and,: in
add t.ion, fr-.om<.munic.ipal sales ,,and ,use:taxes imposed ;and><.collected :by :the
.city,-which<may Iawfully be `available; and
WHEREAS, ..Section ' 20.4 of the Charter - authorizes .the ..City to issue
revenue bonds, by action of the City Council and without an election, which
are payable from the proceeds of any sales tax, use tax or other excise tax
..,of the City; and
WHEREAS, in accordance with Section 104 of. the;-Municipal `Code- df 'the
City, the City has established a 2% sales and use. tax upon the sale .and
purchase of tangible personal property ,at retail sand the . storage, _.use,
distribution and consumption of tangible personal - property purchased .or
acquired at retail, within the City; and
`WHEREAS, .the City Council ,has determined that'_the proceeds Jrom --the
sales and use tax revenue bonds to be authorized and issued at a later date
w.i.11 -be -within the. meaning .of .the.`-term "other revenues" An ,.Section,, ;2�.of
the Charter; and
WHEREAS, the estimated cost of the proposed improvements is the amount
of-$2 '000,000, fand the City does .not-.have .funds,.pr.esently available 'for:-the
payment of the cost of construction; and
WHEREAS, , because of adverse bond market conditions existing at the
present time, the City Council has determined !to 'authorize the i.ssuance `of
short term notes for such purpose, .to be payable solely from the proceeds
ofsthe issuance and sale of sales .and use tax revenue bonds as indicated
above, "and from certain proceeds from the municipal sales and use taxes
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`_.imposed `and-.`collected.:by. the 'C'i.ty, which may lawfully-be available 'for such
-purpose; Nand
.WHEREAS, the City has received as.prop.osal ,'from ,Boettcher & ,-Co.,,
Denver, Colorado, for the- purch.a.se of Bond Anticipation Notes i.n the
principal amount of $2,000,000, and the City has determined that such
proposal is to the best advantage of the City and that such notes .should be
-sold to Boettcher & Co. ; and
aWHEREAS, ,the ':City Council has-:determined Ito `authorize'-the issuance--of
the notes in the principal amount of $2,000,000, and to .provide for the
form Hof- the notes and the method .of:payment therefor.;
BE IT ORDAINED BY. THE CITY COUNCIL OF THE CITY OF FORT COLLINS,
'COLORADO:
Sectional. .'Authorization. -_'Th'at for the 'purpose of-;pr.oviding.'interim
financing, pending a change in market conditions which would permit the
J.ssuance •of :the City' s. Sales and tUse -"Tax Revenue ;:Bonds,-tor ,paying :the
„costs of acquiring, constructing and installing improvements to the Fort
Collins - .Loveland Municipal Airport, . there are hereby authorized Bond. '
Anticipation Notes;of the City, in-.the�.principal amount-O'f7$2,000,000, each
to .be designated "Bond Anticipation Note" (the "Notes") . Both the princi-
pal thereof and the interest thereon shall ,-be payable solely out of the
proceeds of .the issuance and sale of"the proposed Sales and Use Tax Revenue
Bonds of the City, to be authorized and issued at a later date, and from
munici.;pal sales and .use taxes imposed and collected by the City, which may
be lawfully available. The Notes do not constitute a lien on the special
:funds-established by Ordinance No. 47, 1980 or Ordinance 87, 1981, relating
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-Section 4 Torm ands:Execution,of -the•Notes .;and Interest Coupons. ':The
"::Notes shall besi.gned ,with the facsimile 'signature,.of ,the Mayor of 'the
City, attested by the manual signature of the City Clerk, countersigned
with -the 'facs'imile 'signature -of -the ` Director of Finance, .sealed with -;a
�fac.simi'le °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 the notes., -such 'interest -coupons ;sha1'1 Abe
'the binding obligations of the City according to their import.
-.Should any -officer whose manual or facsimile signature appear.sron. the
Notes .or the coupons attached thereto -cease 'to be :such officer before
delivery of the Notes to the purchaser, such manual or facsimile signature
-shall nevertheless be valid and -sufficient for •.all. purposes. --
'The Notes and the interest coupons attached 'thereto shall be in
-•:substantially the following form:
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=to`:the °authorizat'ion 'and issuance�°•of,'Sales '°and Use 'Tax`"Revenue Bonds,.;dated
'?•May 1, `1980, 'in,the ,or.i.gilnal principal amount ,of.,;$1 �35 000, and :;Sales_.- nd
'.Use "Tax �Rev.enue .Bonds, ,;dated `August 1,; ?1-981, in -,;'.the .ori,g.inal �pr`inc.i,pa1
amount of .$5,700,000, respectively.
Section 2. Details of the Notes. That the Notes shal`1 be dated
October 1, 1981, and be in the denomination of $5,000 --each numbered 1 -to
400, inclusive, shall be payable to bearer, and bear interest from date to
1�maturity ;at "the rate of eleven and one-quarter °';:per ..cent (11 . 1%4Yo) per
annum, payable on April 1, 1982, and October 1, 1982, and shall mature on
:October J., 1982.
'The net effective interest rate of this issue `of`Notes 'is' 12 75% 'per
annum.
The'Notes <shall Abe' r,edeemable`.prior::to the'maturity=date.
'The principal of and interest on the Notes shall be payable l at `The
`'Fir:st^lnterstate Bank of'Fort Collins, in:Fort Collins, Colorado.
'Section`3. Special Obligations. All of the Notes, together with the
interest accruing thereon, shall be payable and collectable solely out of
;,the proceeds of ,the future issuance of the City' s Sales and Use Tax,:Revenue
Bonds, and from municipal sales and use taxes imposed and collected by the
City, which may be lawfully available. The holder -or holders thereof may
snot look to any general or other fund -for the payment of the principal --of
and interest on such obligations and such notes shall not constitute an
.indebtedness or ,a debt within the meaning of any, constitutional , statutory
or Charter provision or limitation; nor shall they-'be considered or held -to
be general obligations of the City.
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`-Form of 'Bond •Anticipation Note)
UNITED.STATES..OF AMERICA
`.�STATE1W`COLORADO ;z'.000NTY. OF;LARIMER
CITY OF FORT'COLLINS
%BOND ANTICIPATION NOTE
No. $5,000
The City of -Fort Collins, in .the County .:of Larimer and State --of
'Worado, for value;received, '-hereby•-promises Ito .pay c.to _^the bearer hereof,
-out of the special fund hereinafter ='designated ' but .not °otherwi,se,. :the
.,principal sum_of
:`FIVE JHOUSAND:DOLLARS
in lawful money of the United States of America, on the 1st day of October,
;198.., with interest thereon from date to°maturity .at :the. r.:ate of eleven and
".one-quarter per centum (11 1/4%) per ; annum, payable -on April 1, 1982 and
:.October 1, 1982. Both principal and interest are payable at The First
-,Interstate Bank of-Fort, Collins, 'in`'Fomt Collins„C6.lor.ado,. upon - presenta-
tion and surrender -of the attached coupons. and this' Note as they ,severally
;become .due.
This 'Note sha Yl"hot'be re'deemable`prior to' matur'ity.
This Note is issued by the City of Fort Collins, Colorado, for the
epurpose of providing interim financ-ing, ,-,pending "a change '.in market .cond-i-
tions which would permit the issuance of the City's Sales and Use "Tax
.Revenue Bonds, for paying the costs of. acquiring and constructing improve-
ments to the Fort Collins -. Love Tand Municipal Airport, under .the 'authori:ty
of and in full conformity with the Constitution and Laws. of the State of
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";Color:ado, :.'particul`arly ,the " provisions Hof 'Title "29, "Art'iele 14, Part °11,
:Co,l,or4ad.o .-Revised 'Statutes ,1973, -•the ,Charter °of ,, the.-City, rand pursuant ,,,to
Ordinance. No. .1981,, ;;of the City ,duly passed., and-:adopted .:pr'ior,,to:;the
.issuance of this Note.
Both the principal of this "Note and the interest hereon are payable
-solely out of the "Bond Anticipation `Note Principal and Interest Fund 1981"
into which the City has agreed to deposit, from the proceeds to be derived
jrom' the issuance.'of proposed Sales and Use 'Tax Revenue Bonds of the`City,
to be authorized and issued at a. later date, and from municipal sales and
,use taxes imposed and collected by the City, :which may be lawfully avail-
'able, sums which will be sufficient to pay the interest promptly when it
:.becomes due and payable and to pay the principal amount at maturity, all as
more particularly -set'-forth in the ordinance authorizing the issuance :of this Note. This Note does not constitute a debt of the City of . Fort
-.:-Collins .within the .meaning of any constitutional,. .,,statutory or i.charter
'limitation "or -provision, and shall not be considered or held to',be a
general obligation of the City. The holder of this Note may not look to
::any general or ;other °f.und =of. the City for the payment ..of the principal .of
.,or interest on this Note, except the. special fund referred to above.
It .is .hereby certified, recited and warranted that for the payment .of
A his ' Note, 'the City of Fort Collins has created and will maintain said
special fund and will deposit therein, out of the proceeds from the issu-
ance of :proposed Sales and Use Tax Revenue Bonds and from municipal sales
-and use taxes imposed and collected by the City, which may be lawfully
available, the amounts and revenue specified in said Ordinance, and out .of
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-said -special -fund, ..and -as .an irrevocable ,charge -thereon, will pay this Note
and the '=inaer-est^atiereon, -in' the-manner frproV1ded° by;sa'id�'Ordinance.
'It -is further recited ,and certified that !all -requirements of `slaw%hand
,;conditions _.precedent have been f,ully._compl-ied wi..th -by-the4proper;nofficer�s
of the ,City in-.the _issuance of .this Note.
IN TESTIMONY WHEREOF, the City of Fort Co-llins,, .Colorado,, has caused
,this :Note to _-•be signed with the facsimile .signature:�_of 'its Mayor, asealed
with a facsimile of the seal of the City, attested by the manual signature
of the City Clerk, and countersigned with the facsimile signature of the
''Director of 'Finance, .and the ' interest:coupons attached ,.her..eto to ,be signed
with the facsimile signature of the Director of Finance, as of the 1st day
.-of%October, _1-981.
`CITY'OF-•FORT"_COLLINS, •'COLORADO
(FACSIMILE By (Facsimile 'Signature)
. SEAL) ,Mayor
ATTESTED: COUNTERSIGNED:
("Manual `Signature) ('Facsimi:Te"S'igriature) .
City Clerk Director of Finance
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(Form:,Of:;,,Interest;Coupon)
:'No..
'April , `1982
On the 1st day of October, 1982, the City of Fort Collins, Colorado,
-in the County of Larimer and State of Colorado, will pay to the bearer
.,hereof .,the . amount .,shown .hereon, in . lawful .money ,.of the United „States ,,of
"Amer=ica, at The First Interstate Bank of 'Fort .Collins, Colorado,"solely out
of the special fund referred to in the Note to which this coupon is at-
Ft-ached, but:not -otherwise, ,,being interest ,then .due..on .i.tsq-Bond-Antic'ipation
Note, dated October 1, 1981, bearing
-No.
(Facsimile 'Signature)
Director,:of .Finance
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Section �5.. " Disposition of Note Proceeds. ;The Notes:shall��be :issued
'and ;sold �f.or---the-;'purpose of.;:providingrinter.'im financi:ng;,:pending Aa'change
'in =market -conditions which -would permit the "'issuance Of the "City'`s Sales
andr,U;se-Tax Revenue Bonds,, _for,;payi{n,g.the;costs of=acquiring ;and.,construct-
ing .improvements to :the FortaCol-I.ins = :Loveland Municipal Airport. Neither
the 'initial purchaser of the .Notes nor any subsequent holder thereof shall
*-be -res.ponsible for .the •,,appl,ication or -di:sposal .by.5,the ,C.J.ty or .-:any .-of its
officers of the funds 'derived from the sale 'thereof. 'The issuance ,of the
.Notes by the City shall constitute a warranty by .and on behalf of the City
'for ;the .benefit of the holder of said Notes, that ahe Notes .have .been
issued for a valuable consideration in full conformity with law.
x.Al_1 ..or .,any -portion ,of ..the proceeds .of .:the 'Notes may wtemporar:i ly
;invested, or reinvested, pending such use, "in .-securities -orY•obligations
..,which are lawful investments for such municipalities in the State of
Colorado. .'It -is hereby covenanted-and �'agreed by "the:City that the ,tempo-
rary investment or reinvestment of the Note proceeds, or any portion
thereof, shall be of .such nature and extent, and for such period, that .the
`Notes shall not '`be or ' become an .,"'arbitrage `bona" 4ith'in `'the meaning Hof
Section 103(c) of the Internal Revenue Code of 1954, as amended, and
«.pertinent regulations, and -,such ,proceeds, if- so . ,i;nvested,,.or -reinvested,
shall be subject to the limitations and restrictions of said Section
.103(c) , and pertinent regulations :as the ,same now exists. or. may later be
:.amended.
Section 6 .. Payment of Principal and Interest. There is hereby
:established ..a . separ--ate fund . of the : City to :be ,designated as the "Bond
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r�Ant-icipation Note, Principal . and . Interest Fund 1981",, into.,which :the `City
.shall- depos-it:
(a) All or 'a 'portion =of 'the `proceeds `of 'the proposed ?Sales rand "Use
4Tay.Rev:enue Bonds to be:authorized and ..i_ssued .at;4a 1,aten,,date; ;and
.(.b:) :Municipal --sales !and use.�taxes ,:imposed and ,collected by the .City,
zwh.ich -are lawfully. available; provided, however, that the City shall first
make 'lthe :deposits required -bye'Ordinance:No. ;47, b19801-1-,and;,Ordinance No: V
.1981., . relating to the authorization of the bonds dated May 1, 1980 .and
-August .1, 1981, respectively. The City covenants and agrees to.maintain
+said :Fund so-long as any of the. Notes,-.herein authorized remain •outstand`i.ng
and unpaid. `The Fund shall be used solely for the purposes specified in
_ . Ath:is. -Section. '�The: holder!of. the Notes :shal.l have a°first:and prior lien on
.such fund. "No.�additional notes or obligations Withe,City,'shall be. payable
:from such Fund.
:;Section 47. v.Additional''Provisions. The .City 'Councia mcovenants ;,and
agrees that prior to October 1, 19829 it will consider an ordinance relat-
ng to ,the authorization .and issuance of proposed Sales and Use Tax Revenue
Bonds "1,n 'the principal amount of �approximatelyx$2,000,000. 'The City
covenants .and agrees that the proceeds from the sale thereof will be
;credited .to •the•Bond Anticipation Note Principal and. Interest- Fund;:1981 ;and
applied toward the payment and redemption of the outstanding"Notes,,-and" the
interest thereon.
Section 8. Defeasance. When all?principal and interest in connection
with the Notes have been duly paid, the pledge and lien .and all obligations
.hereunder . shal1 thereby -be discharged .,and the Notes shall no. longer be
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deemed to be-outstanding within the meaning oU this':Ordinance. '"There shall
;beEdeemedxto be such�fduet'payment;rwhen ;.the--;City.Lhasap5, aced 'Amtescrow•-.the
-trust with ,,a commercial bank Iocated twithin-;or without'.the State=WX6nlo-.
rado, and exercising trust powers, an amount , sufficient ( including .the
known minimum yield 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 the final maturity. The Federal Securities shall
,-become -due at or prior to the respective times `on which the proceeds
thereof shall be needed, in accordance with a 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 'Securities" .within :the 'meaning -,f
this section shall include only direct obligations of, or obligations the
pr'inci.pal and ;interest of ;which .=are .unconditiona''11.y-:,guar•anteed ..by, the
United States of America.
Section 9. Severability. That if any one or more sections or parts
Hof this '..Ordinance shall be adjudged unef.orceable or*z nval id, '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.
Section 10. Repealer. All ordinances or parts thereof in conflict
;;with this Ordinance are hereby repealed.
Section 11. Ordinance Irrepe.alable. After the Notes authorized
"herein are issued, this Ordinance shall be :and remain irrepealable until
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?the Notes ;and !the interest 'thereon -.shall c have 'been fully. paid, :•s.atisfied
andc;;diI charged.
'1S'ect'i'on 12. "Recording 'and Authentic'ation.: ' This%Ordinance-`as.�adooted
4by _the City Council shall .be numbered and,.recorded in a-book marked "ORDI-
NANCE RECORD" and the adoption and publication shall be authenticated by
the signatures of the Mayor .and City Clerk, and by the certificate of'the
,pub Ifisher, .respectively.
;Section 13. Effective Date. 'This :Ordinance :sha'll 'take :effect .on.the
;loth day following final passage.
_LNTRODUCED ::AND PASSED ZON FIRST 4READING, :This ..1s.t .::day of`:September,
`:1981.
Mayor
(SEAL)
'ATTEST:
City Clerk
FINALLY ADOPTED AND APPROVED, this th day of :September, 1981 .
(S,E A _L)
;;.Mayor
ATTEST:
City,.Clerk
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