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HomeMy WebLinkAbout005 - 05/01/1940 - AUTHORIZING THE CITY TO REFUND THE BONDS OF SPECIAL IMPROVEMENT DISTRICTS HERETOFORE CREATED IN SAID ORDINAA NO 8 _SERIES Ok 1940 651 AN ORDINANCE AUTHORIZING THE CITY OF PORT COLLINS, COLORADO, TO REFUND THE BONDS OF SPECIAL IMPROVEMENT DISTRICTS HERETOFORE CREATED IN SAID CITY, PRESCRIBING THE PORT[ OF REFUNDING BONDS, PROVIDING FOR THE PAYMENT OF THE SAYE AND THE INTEREST THEREON, AND DECLARING AN EMERGENCY WHEREAS, The City of Port Collins, Colorado, has heretofore created improvement dis- tricts in said City, has caused public improvements to be constructed therein and has issued Its bonds for the purpose of paying the costa and expenses of such improvements, and i WHEREAS, the names and numbers of such improvement districts the principal amount of bonds outstanding in said districts on April 16, 1940, and the rate of interest on such bonds, are as follows , District % Am't of bonds No and Name Interest Outstanding 8 6� $9,600 10 8 1,000 17 8 220000 18 8 1,000 19 4 3/4 17,500 20 4 3/4 160000 22 6 3/4 19600 2,800 23 4 3/4 20000 24 4 3/4 12,000 000 26 4 3/4 3�600 29 4 3/4 2,000 32 4 1/2 7,500 38 6 1,400 Alley 3 5 1/2 600 7 5 1,200 B 5 200 San Sewer 46 5 8,000 47 4 1/2 12,500 Storm Sewer b 5 1/2 8,000 and WHEREAS, on April 15, 1940, the principal amount of bonds outstanding was $143,700, i and WHEREAS, on said date, cash on hand to the credit of said districts was $6,000 00, the principal amount of assessments estimated to be collectible was $75,000,00, exclusive of the delinquent interest and penalties, and the face amount of tax certificates held by the City for delinquent assessments, was $175,000 00, making a total of $256,000 00, and WHEREAS, all of said outstanding bands 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 ben- efiting 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 economic conditions prevailing for many years the owners of certain properties assessed with the cost of said Improvements have been unable to pay their assess- ments, thereby causing a default in the payment of interest on and principal of bonds of jmany of the improvement districts in said City, and WHEREAS, the continued default in the payment of said improvement bonds seriously affects the credit and reputation of said City, and causes privation and hardship to the owners of said bonds, and WHEREAS, such default has resulted in the removal from the general tax rolls of many taxable properties, thus depriving the State, County and City of revenue needed to conduct their respective governmental functions, and WHEREAS, the City Council considers that the City is morally obligated, as a matter of good faith to exercise eve lawful every power to remove existing defaults, and as rapidly as possible to place its obligations in good standing, and WHEREAS, many of said outstanding bonds have already matured and ere in default, and i others are about to been ma due and will be in default because of 8 lack of funds to pay the 66 ORDINANCE NO 5 SERIES OF 1940 � same, and { WHEREAS, under Section 8, Article xx of the Constitution of the State of Colorado, the City of Fort Collins has the power to refund and liquidate its municipal obligations, in Q eluding bonds of Improvement districts, and has the power to levy and collect special assess- ments for local improvements THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS, COLORADO, !!!I THAT ' a Section 1 For the purpose of refunding the bonds of the foregoing improvement dis- 1 j tricts, the City shall execute and deliver a single issue of bonds in the principal amount of $143,500 to be designated "Improvement Refunding Bonds", dated June 1, 1940, bearing in- ► tereat at the rates specified herein, payable semi-annually on the first days of June and December In each year, to be evidenced by coupons attached to said bonds, and consisting of 287 bonds in the denomination of $500 each, numbered from one to 287 inclusive The rates a of interest on said bonds shall be as follows 9 Hoe 89 - 287 Inclusive - 3 % Nos 87 - 88 Inclusive - 8 % a Nos 31 - 88 Inclusive - 5 % Nos 1 - 30 Inclusive - 3 % i Said bonds shall be due and payable on the first day of June, 1955, but shall be subject to J� 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 ex- piration of 30 days from the publication of such notice, interest on the bonds so called i 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 Port Collins, Colorado g I Said bonds shall be signed by the Mayor and the Commissioner of Finance and sealed with the seal of the City, attested by the City Clerk The coupons attached to said bonds shall bear 9 i the facsimile signature of the Commissioner of Finance The City Clerk shall register said rbonds 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 pay- 1 �? able in regular numerical order out of a fund hereby created and designated "Refunding Im- provement Bond Fund" which shall contain the receipts from paid and unpaid assessments lev- ied against property in districts, the bonds of which are to be refunded as herein provided, r t� plus paid and unpaid interest and penalties on said assessments, and plueAhe proceeds de- rived and to be derived from the sale of tax certificates and property now and hereafter held by the City for delinquent assessments in said Districts In no event shall the total a amount of refunding bords issued hereunder exceed the total of the principal of unpaid bonds I, to be refunded I a Section 3 Said Refunding Improvement Bonds, and the coupons to be attached thereto, f shall be In substantially the following form UNITED STATES OF AMERICA ` t { State of Colorado County of Laririer � i CITY OF FORT COLLINS � REFUNDING IMPROVEMENT BOND r No =500 d � The City of Port Collins, in the County of Lorimer and State of Colorado, for value received, hereby promises to pay to the bearer hereof, out of the special fund hereinafter p designated, but not otherwise, the sum of FIVE HUNDRED DOLLARS , I in lawful money of the United States of America, on the first day of June, A D 19559 with 4 ~ interest thereon from date at the rate of per centum (_%) per annum, payable semi-6 annually on the first day of June and the first day of December in each year, both principal 67 ORDINANCE NO T So —SERIES OF lm .ra .mn n.o and interest being payable at the office of the City Clerk, in Port Collies, 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 n notice in the offi- cial newspaper of the City At the expiration of 30 days from the publication 6f each no- tice, interest on the bonds so called shall cease This bond is one of a series issued for the purpose of refunding outstanding im-provement 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 iThe principal of and Interest on this bond are payable solely out of a special fund designated "Refunding Improvement Bond 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 sold assessments, and the proceeds derived and to bpiierived 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 more fully shown in Ordinance No , .,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 end will deposit ppp 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 pro- (j party 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 *HEREOF, the City of Fort Collins, Colorado, has caused this bond to be signed by its Mayor and Commissioner of Finance, sealed with the seal of said City, at- tested by the City Clerk, and the coupons attached hereto to be executed with the facsimile signature of said Commissioner of Finance, as of the first day of June, A. D 1940 yor ry ) Co=d as oner o ee. d (SEAL) L' ATTEST City Clerk I � (loan of Coupon) , No S June } w _ On the first day of December, L. D 19 ^0 (unlese,the'bond to which this coupon ! is attached has been called for prior redemption), the Citylof Fort Collins, In the County t •1 j 1 r 1 68 ORDINANCE NO 6 SERIES OF 1940 E of Lorimer 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 Port Collins, Colorado, out of the •Refunding Improvement Bond Funds, but not otherwise, being six months' interest on its Refunding Improvement Bond dated June 1, 1940, bearing � No (Paesimile signature) OMMaaioner or rinaace 1 Section 4 Said Refunding Improvement Bonds may be exchanged, dollar for dollar, fo n the outstanding bonds of said districts, or said refunding bonds, or a part thereof, may be 1 I7 sold and the proceeds thereof applied in the payment of said outstanding improvement die- triet 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 shell not be less than per and accrued interest, and the proceeds of i such sale shall be applied only in the payment of outstanding improvement bonds of districts iwhose bonds are refunded hereunder All outstanding improvement bonds which are exchanged � 11 for refunding bonds, or which are paid with the proceeds of refunding bonds, shall be een- celled and held by the City Clerk as evidence of the original indebtedness, until the said ± ti refunding bonds and the interest thereon are paid in full u + u Section 6 After the issuance of any of the Refunding Improvement Bonds authorized ` y 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 A e 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 r I proceeds to be derived from the sale of tax certificates now or hereafter held by said City, } I on property in districts, the bonds of which have been refunded, the proceeds of the sale oft 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 11 pledged for the payment of Refunding Improvement Bonds issued hereunder and the Interest 1` thereon, after payirg 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 ' i� 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 f t a Section T Tha City Clerk Is hereby authorized and directed to sell tax certificate¢ held, or to be held by the City on property In districts, the bonds of which have been re- d � funded hereunder, at such price or prices as the Commissioner of Finance may determine, Z also, said clerk may sell property held or to be held by the City under tax deeds for de- 11 linquent assessments in said districts, in such manner and for such prices as shall be spe- cified 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 y and property, together with the amount of unpaid assessments on property in districts, the a 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 thO accrued interest thereon The proceeds from the sale of said tax certificates and property i 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 cortained herein shall in anyjway affect the Ilene and liabil- \ f 1 Ir � II 1 , V ORDINANCE NO 6 _SERIES OF 1940 itles which now exist against the properties in the improvement districts hereiabefore designated, for the Coate and expenses of constructing and installing Im provements in avid 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 Is- sued hereunder Section 9 The City Clerk shall continue to keep separate accounts for each im- provement district in said City, which accounts shall at 411, times show the amount of paid and unpaid assessments, interest and penalties on and against the various properties in the respective improvement districts I 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 pen- alties thereon, shall be sold at the times and in the manner provided by low. At such tax sales, If there be no other bidder, the City shell, 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 t 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 a Refunding 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, to- gether 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 I other or further amounts in said Fund, the same may be considered only as a temporary 1 ry ad- vancement to said Refunding Improvement Bond Fund, to be reimbursed to the City when col- lections are sufficient therefor w 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 certificates and pro- perties, 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 pur- 1 pose of paying said Refunding Bonds or interest, it shall be subrogeted to all the rights and privileges of the former owners of said bonds and Interest coupons Section lb The provisions of this ordinance shall constitute an irrevocable con- tract between the City of Port Collins, Colorado, and each and every holder or owner of a Refunding Improvement Bond issued hereunder Section 16 If any Court of competent Jurisdiction should ever determine that any I part of this ordinance is invalid or unenforceable, such determination shall not effect 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 obliga- tion 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 I folly to carry out the liberal purposes and intent of this ordinance. y k a ORDINANCE NO 8 SERIES OF r 1940 i t Section 18 Because of existing defaults which imperil the faith and credit of the City, It ie hereby declared that an emergency exists, that this ordinance is necessary for 4 the preservation of the public health, peace and safety, and that it shall take effect upon r passage 3 PASSED as an emergency ordinance this let day of May, A D. 1940 t t 4 � 4 (SEAL) --� Wayor ATTEST �City Clerk 3 1 t 1� STATE OF COLORADO ) COUNTY OF I.ARIMER ss) I, Miles P House, City Clerk of the City of Port Collins, do hereby certify end de- q clare that the foregoing ordinance,consieting of eighteen (18) sections, was duly proposed I and read at length at Oegular adjourned meeting of the City Courcil, held on the 1st day of� Y i May, A D 1940, and was duly adopted and ordered published in the Fort Collins Leader, a j I weekly newspaper and an official newspaper of the City of Port Collins, by the unanimous t ( vote of all members of the City Council as an emergency ordinance, in accordance with the I provisions of Sections 8 and 7 of Article IV of the City Charter, and thereafter and on, to- � a wit the Ynd day of May, 1940, said Ordinance No. 5 was duly published in the Fort Collins Leader, a weekly newspaper published in the Citj of Fort Collins, Colorado IN WITNESS WHEREOP, I have hereunto set my hand and affixed the seal of said City, J this End day of May, A D 1940 I c t City irk.-y r p� (SEAL) fl y t � p f fi h l � n