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Home My WebLink About104 - 09/05/2023 - APPROPRIATING UNANTICIPATED REVENUE FROM BOND PROCEEDS FROM THE ISSUANCE OF THE SERIES 2023 ELECTRICORDINANCE NO.104,2023 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE FROM BOND PROCEEDS FROM THE ISSUANCE OF THE SERIES 2023 ELECTRIC UTILITY ENTERPRISE REVENUE BONDS FOR LIGHT AND POWER,CONNEXION, AND THE ART IN PUBLIC PLACES PROGRAM WHEREAS,both the City’s Light and Power and Connexion have various capital project needs for their systems and Connexion needs additional operating funds;and WHEREAS,to address these funding needs,the board of the Electric Utility Enterprise has adopted Ordinance No.015 (“Ordinance No.015”)authorizing the issuance of the Series 2023 Electric Utility Revenue Bonds (the “Revenue Bonds”);and WHEREAS,the Revenue Bonds are estimated to be issued for $66.2 million in total gross proceeds from which:(i)$40.7 million will be used for Light and Power’s identified capital project needs and possibly for the payment of a bank loan funding the EPIC program,(ii)$18.0 million used for Connexion’s identified capital project needs,(iii)$4.8 million used as a contingency for future Connexion capital projects currently unidentified,(iv)$2.0 million used by Connexion for operations,and (v)$0.7 million used for the issuance costs for Revenue bonds;and WHEREAS,of these amounts,only the following are being appropriated in this Ordinance: (i)$40.7 million for Light and Power’s identified capital project needs,(ii)$18.0 million for Connexion’s identified project needs,(iii)$2.0 million for Connexion operations,and $0.7 for the issuance costs for the Revenue Bonds;and WHEREAS,the Light and Power and Connexion identified capital projects involve construction estimated to cost more than $250,000 and,as such,City Code Section 23-304 requires one percent of these appropriations to be transferred to the Cultural Services and Facilities Fund for a contribution to the Art in Public Places program (“APP Program”),so this Ordinance also transfers and appropriates these required funds for the APP Program;and WHEREAS,the appropriations in this Ordinance benefit the public health,safety and welfare of the residents of Fort Collins and serve the public purposes of providing the services and benefits being provided to Fort Collins residents by Light and Power,Connexion,and the APP Program;and WHEREAS,Article V,Section 9 of the City Charter permits the City Council,upon recommendation of the City Manager,to make a supplemental appropriation by ordinance at any time during the fiscal year,provided that the total amount of such supplemental appropriation,in combination with all previous appropriations for that fiscal year,do not exceed the current estimate of actual and anticipated revenues and all other funds to be received during the fiscal year;and WHEREAS,the City Manager has recommended the appropriation described herein and determined that these appropriations are available and previously unappropriated from the Light and Power Fund and the Broadband Subaccount in the Light and Power Fund (the “Broadband Fund”),as applicable,and will not cause the total amount appropriated in the Light and Power Fund and the Broadband Fund,as applicable,to exceed the current estimate of actual and anticipated revenues and all other funds to be received in these funds during this fiscal year;and WHEREAS,contributions to the APP Program by each City utility for art projects is kept and spent in such utility’s own fund,except the utility contributes its share of the APP Program’s costs for maintenance,administration,repair and display to the Cultural Services and Facilities Fund as provided in City Code Section 23-303(c);and WHEREAS,in accordance with Article V,Section 10 of the City Charter,the appropriation for the capital projects from the Light and Power Fund and the Broadband Fund and the transfer of a portion of those unexpended and unencumbered appropriated funds to the APP Program as provided in City Code Section 23-304(c)will be used for the Light and Power and Connexion purposes,as applicable,and improvements in connection with their capital projects that provide a betterment to Light and Power and Connexion;and WHEREAS,a portion of the funds appropriated in this Ordinance in the amount of $2,710,387 for the Projects are ineligible for use in the APP Program due to restrictions placed on them by the source and use of these funds;and WHEREAS,the amount to be contributed to the APP Program by the Light and Power Fund is therefore $407,043;and WHEREAS,0.5%of the Broadband Fund operating revenue is $100,495 for 2023;and WHEREAS,the amount to be contributed to the APP Program in this Ordinance by the Broadband Fund is $100,495;and WHEREAS,Article V,Section 11 of the City Charter authorizes the City Council to designate in the ordinance when appropriating funds for a capital project,that such appropriation shall not lapse at the end of the fiscal year in which the appropriation is made,but continue until the completion of the capital project;and WHEREAS,the City Council wishes to designate the appropriations herein using the proceeds from the issuance of the Revenue Bonds for use on capital projects expended or transferred from the Light and Power Fund and the Broadband Fund,as applicable,as appropriations that shall not lapse until the completion of the projects as such designations are set forth in Sections 2 and 5 below. NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1.That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2.That there is hereby appropriated from the proceeds in the Light and Power Fund to be received from the issuance of the Revenue Bonds the sum of FORTY MILLION NINE HUNDRED FIFTY-TWO THOUSAND FIVE HUNDRED ELEVEN DOLLARS ($40,952,511) to be expended in the Light and Power Fund for capital projects,bond issuance costs,and APP Program transfers (the latter to be expended with the various qualifying projects)as set forth below. Light and Power Capital Projects (non-lapsing)$40,095,000 Art in Public Places (Artwork;non-lapsing)$315,900 Art in Public Places Project (transfer to Cultural Services Fund for APP Operations;lapsing)$81,000 Art in Public Places Project (transfer to Cultural Services Fund for APP Maintenance;lapsing)$8,100 Issuance costs (lapsing)$452,5 1 1 Total $40,952,511 Section 3.That the unexpended and unencumbered appropriated amount of EIGHTY- ONE THOUSAND DOLLARS ($81,000)in the Light and Power Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated and expended therein for the operation costs of the APP Program. Section 4.That the unexpended and unencumbered appropriated amount of EIGHT THOUSAND ONE HUNDRED DOLLARS ($8,100)in the Light and Power Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated and expended therein for the maintenance costs of the APP Program. Section 5.That there is hereby appropriated from the proceeds in the Broadband Fund to be received from the issuance of the Revenue Bonds the sum of TWENTY MILLION TWO HUNDRED NINETY TWO THOUSAND EIGHT HUNDRED SIXTY-FOUR DOLLARS ($20,292,864)to be expended in the Broadband Fund for capital projects,operating costs,bond issuance costs,and APP Program transfers as set forth below. Broadband Capital Prolects (non-lapsing)$18,000,000 Broadband operating costs (lapsing)$1,952,683 Art in Public Places (Artwork;non-lapsing)$78,386 Art in Public Places Project (transfer to Cultural Services Fund for APP Operations;lapsing)$20,099 Art in Public Places Project (transfer to Cultural Services Fund for APP Maintenance;lapsing)$2,010 Issuance costs (lapsing)$239,686 Total $20,292,864 Section 6.That the unexpended and unencumbered appropriated amount of TWENTY THOUSAND NINETY-NINE DOLLARS ($20,099)in the Broadband Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated and expended therein for the operation costs of the APP Program. Section 7.That the unexpended and unencumbered appropriated amount of TWO THOUSAND TEN DOLLARS ($2,010)in the Broadband Fund is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated and expended therein for the maintenance costs of the APP Program. Section 8.That the appropriations herein from the issuance of the Revenue Bonds to be used on capital projects in the Light and Power Fund and the Broadband Fund,as applicable, are hereby designated,as authorized in Article V,Section 11 of the City Charter,as appropriations that shall not lapse at the end of this fiscal year but continue until the completion of those projects and repayment of the bonds as such designations are indicated in Sections 2 and 5 above. Introduced,considered favorably on first reading,and ordered published this 15th day of August,2023,and to be presented for final passage on the 5th day of Sep ember,2023. 4,‘~L ATTEST: Cit9erk p ‘I viI eptembePassedandadoptedonfinalreadingonthe5thd~7 ~ AEFEST: