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HomeMy WebLinkAbout102 - 08/05/1986 - PROVIDING FOR THE ISSUANCE OF SPECIAL ASSESSMENT BONDS FOR ARBOR PLAZA SPECIAL IMPROVEMENT DISTRICT ORDINANCE NO. 102 , 1986 AN ORDINANCE CONCERNING THE CITY OF FORT COLLINS, COLORADO, ARBOR PLAZA SPECIAL IMPROVEMENT DISTRICT NO. 88 ; RATIFYING ACTION HERETOFORE TAKEN IN CONNECTION THEREWITH; PROVIDING FOR THE COLLECTION OF SPECIAL ASSESSMENTS TO BE LEVIED TO DEFRAY THE COSTS OF IMPROVEMENTS THEREIN; PROVIDING FOR THE ISSUANCE OF SPECIAL ASSESSMENT BONDS PAYABLE FROM THE ASSESSMENTS TO BE LEVIED IN SAID DISTRICT; PRESCRIBING DETAILS IN CONNECTION WITH SAID ASSESSMENTS, BONDS AND DISTRICT, INCLUDING THE MANNER OF ADDITIONALLY SECURING AND EFFECTING THE PAYMENT OF SAID BONDS; PRESCRIBING DUTIES OF CERTAIN PUBLIC OFFICIALS IN CONNECTION WITH SAID ASSESSMENTS, BONDS AND DISTRICT; REPEALING ALL ORDINANCES AND OTHER ACTION OF THE CITY TO THE EXTENT INCONSISTENT HEREWITH; AND PROVIDING OTHER MATTERS RELATING THERETO. WHEREAS, the City� of Fort Collins (the "City") , in the County of Larimer and State of Colorado (the "State") , is a political subdivision of the State, a body corporate and politic, and a municipal corporation duly organized and existing as a home-rule city under Article XX of the State Constitution and the Charter of the City (the "Charter") ; and WHEREAS, the City Council (the "Council") of the City, pursuant to the Charter and Chapter 16 of the Code of the City of Fort Collins (the "Code") relating to local public improvements and the financing thereof, has established by Ordinance No. 97, 1986 passed on first reading on July 1, 1986 and on second reading on July 15, 1986 (the "Ordinance Creating the District") , within the corporate limits of the City, a local improvement district known and designated as the City of Fort Collins, Colorado, Arbor Plaza Special Improvement District No. 88 (the -2- "District") , for the purpose of making certain local street, water, sanitary sewer and storm drainage improvements and assessing the cost thereof to the property benefited thereby; and WHEREAS, pursuant to the Code and the Ordinance Creating the District, the, City Manager has entered into agreements with all the property owners in the District (the "Owners") setting forth the respective rights and responsibilities of the parties in the formation of the District and construction, installation and acquisition of the improvements in the District; and WHEREAS, pursuant to the Code and the Ordinance Creating the District, upon completion and acceptance of the improvements in the District and determination of the final cost thereof, the Director of Finance will prepare an assessment roll for the District and after a notice thereof and a hearing thereupon, assessments shall be levied by ordinance; and WHEREAS, the City and the officers thereof desire to sell the special assessment bonds of the District in the principal amount of $1, 085, 000 (the "Bonds") ; and WHEREAS, the City has entered into a contract with Coughlin & Company, Denver, Colorado (the "initial purchaser") , to purchase such Bonds for 100% of the principal amount thereof plus accrued interest to the date of delivery; and WHEREAS, the City and its officers have determined, and do hereby determine, with the approval of the Council, that it is necessary and for the best interests of the City and the District and the inhabitants thereof that, pursuant to the Charter and the Code, the City issue and sell the Bonds designated as the "City of Fort Collins, Colorado, Arbor Plaza Special Improvement District No. 88 , Special Assessment Bonds, Series 1986" in the -3- aggregate principal amount of $1, 085, 000 to the initial purchaser for 100% of the principal amount thereof, for the purposes of paying the cost of said local improvements, including all proper incidental expenses; and WHEREAS, the Council has further determined, and does hereby declare, that the payment of the interest on and the principal of said Bonds shall be additionally secured as provided by this ordinance pursuant to Article V, Section 20.5 of the Charter; and WHEREAS, all such Bonds are herein authorized to be, and they shall be, issued upon approval by the Council ; and WHEREAS, due to the foregoing provisions and for other good and sufficient reasons, the Council has determined, and does hereby declare, that it is necessary and for the best interests of the City and the' District and the inhabitants thereof that this ordinance be adopted and, pursuant to Article II, Section 7 of the Charter, the Council hereby deems it appropriate that said ordinance be published by title. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS: Section 1. All action (not inconsistent with the provisions of this ordinance) heretofore taken by the City, the Council and the officers of the City, directed toward the creation of the District, the acquisition, construction and installation of the public improvements therein, the sale and issuance of its public local improvement special assessment bonds and the levy of assessments for that purpose hereby is ratified, approved and confirmed. -4- Section 2 . The City hereby is authorized, empowered and directed, and it shall be its duty, to receive, collect and enforce the payment of all assessments to be made and levied for said local improvements, and all installments thereof, all interest thereon, and all penalties accrued, in the same manner and at the same time or times as prescribed by the Code, by the Ordinance Creating the District and by this ordinance, and to pay and disburse said payments, the installments thereof, the interest thereon and penalties thereon, to any person or persons lawfully entitled thereto, subject however to the appointment of any successor paying agent to disburse said payments as herein provided. Section 3 . The Director of Finance hereby is authorized, empowered and directed, and it shall be his duty, to receive and collect, at the time and in the manner specified in the Code, as amended from time to time, the Ordinance Creating the District and this ordinance, all assessments, the' installments thereof, the interest thereon and the penalties accrued, to be levied to defray all of the total cost of the designated local improvements in the District and to pay and disburse such payments to the person or persons lawfully entitled to receive the same (subject to Section 6 hereof) , in accordance with the laws of the State, with the Charter, and with all the ordinances and resolutions of said City heretofore or to be hereafter adopted, including but not limited to the Code, the Ordinance Creating the District, and this ordinance. All moneys received from such assessments, except as provided in Section 5 hereof, shall be placed in a separate fund to be designated "City of Fort Collins, Colorado, Arbor Plaza Special Improvement District No. 88, Special Assessment Bonds, Series 1986, Interest and Bond Retirement Fund" (the "Bond Fund") , and said moneys shall be used for the purpose of paying the principal of and -5- interest on the Bonds and for no other purpose whatsoever, and as security for such payment said fund is hereby exclusively pledged. Section 4 . The Director of Finance hereby is authorized, empowered and directed, and it shall be his duty, to receive surplus local improvement district moneys pursuant to Article V, Section 20. 5 (b) of the Charter, and to place all said moneys in a surplus and deficiency fund heretofore or hereafter established pursuant thereto (the nSurplus Fund and Deficiency Funds) and to disburse therefrom said moneys for the payment of the principal of and interest on the City's local improvement or special assessment bonds, including the Bonds herein authorized, to the extent necessary. To the extent permitted by the Charter, the Director of Finance may also disburse moneys in the Surplus and Deficiency Fund for other public purposes. The Bonds herein authorized, together with bonds of other special or local improvement districts within the City, are and shall continue to be additionally secured and : their payment shall be supplemented by the Surplus and Deficiency Fund, which consists of moneys remaining to the credit of special or local improvement districts the bonds of which have been paid in full, both principal and interest; and whenever there is a deficiency in the Bond Fund to meet the payment of outstanding Bonds herein authorized and interest due thereon, as the same become due, the deficiency shall be paid out of the Surplus and Deficiency Fund. Section 5. Whenever three-fourths of the Bonds authorized herein to be issued for the District have been paid and canceled and for any reason the remaining assessments are not paid in time to redeem the remaining Bonds of the District, and there is not sufficient money in the Surplus and Deficiency Fund, the Director of Finance shall be, and he hereby is, authorized, empowered and directed, and it shall be his duty, to pay on the City's behalf the remaining Bonds and the interest thereon when -6- due. The City shall levy additional ad valorem taxes necessary therefor and reimburse itself by collecting the unpaid assessments due the District. Section 6. For the purpose of defraying the entire cost and expense of making said improvements, including all such proper incidental expenses, there shall be issued in the name of the City, fully registered (i.e. , registered as to both principal and interest) , special assessment bonds designated "City of Fort Collins, Colorado, Arbor Plaza Special Improvement District No. 88, Special Assessment Bonds, Series 1986" in the aggregate principal amount of $1, 085, 000, consisting of 217 Bonds, numbered consecutively from R-1 to R-217, both inclusive, in the denomination of $5, 000 each, dated as of the first day of August, 1986, being payable to the registered owner thereof in regular numerical order on the first day of December, 2001, and bearing interest from date until maturity or prior redemption, payable semiannually' on the first days of June and December in each year, commencing on the first day of June, 1987, and the Bonds being in the principal amounts and bearing interest at the rates hereinbelow designated, as follows: Bond Interest Rates Numbers Principal Amounts (Per Annum) 1 - 10 $50, 000 7 0CI% 11 - 21 55, 000 7450% 22 - 33 60, 000 7. 75% 34 - 45 60, 000 3, 00% 46 - 58 65, 000 8.25% 59 - 73 75, 000 3,50% 74 - 89 80, 000 3<75$ 90 - 106 85, 000 3, 90% 107 - 125 95, 000 9,00% 126 - 145 100, 000 9 1� 146 - 167 110, 000 0 168 - 191 120, 000 192 - 217 130, 000 —9773$ -7- both principal and interest being payable in lawful money of the United States of America. The principal of any Bond shall be payable to the registered owner as shown on the registration records kept by the City Clerk of the City of Fort Collins in Fort Collins, Colorado, as registrar, or her successor (the "Registrar") , upon maturity or prior redemption thereof and upon presentation and surrender at the office of the Director of Finance of the City of Fort Collins in Fort Collins, Colorado, as paying agent, or his successor (the "Paying Agent") . Payment of interest on any Bond shall be paid by check or draft mailed by the Paying Agent, on or before each interest payment date (or, if such interest payment date is not a business day, on or before the next succeeding business day) , to the person in whose name the Bonds are registered at the close of business on the fifteenth day (whether or not a business day) of the calendar month next preceding each regularly scheduled interest payment date (the "Record Date") , at his address as it last appears on the registration records kept by the Registrar; but any interest not so timely paid or duly provided for shall cease to be payable to the person who is the registered owner at the close of business on the Record Date and shall be payable to the person who is the registered owner thereof at the close of business on a special record date (the "Special Record Date") for the payment of such defaulted interest. Such Special Record Date shall be fixed by the Paying Agent whenever moneys become available for payment of the defaulted interest and notice of the Special Record Date shall be given to the registered owners of the Bonds not less than ten days prior thereto by first-class mail to each such registered owner as shown on the Registrar's registration records on a date selected by the Registrar, stating the date of the Special Record Date and the date fixed for the payment of such defaulted interest. If, upon presentation of any Bond at maturity, payment is not made as therein provided, interest thereon shall continue at the same rate per annum until the principal thereof is paid in full. -8- If the Registrar or Paying Agent initially appointed hereunder shall resign, or if the City shall reasonably determine that the Registrar or Paying Agent has become incapable of fulfilling his or her duties hereunder, the City may, upon notice mailed to each registered owner of Bonds at the address last shown on the registration records, appoint a successor Registrar or Paying Agent, or both. Every such successor Registrar or Paying Agent shall be a bank or trust company located in and in good standing in the State of Colorado and having a capital and surplus of not less than $5, 000, 000. It shall not be required that the same institution serve as both Registrar and Paying Agent hereunder, but the City shall have the right to have the same institution serve as both Registrar and Paying Agent hereunder. The proceeds of the Bonds (other than amounts to be used to pay interest on the Bonds through December 1, 1989, which shall be deposited in the Bond Fund) shall be deposited in the account to be established for the District in the City's Capital Projects Fund (the 'Capital Projects Fund') , and shall, not earlier than thirty-one days after the final passage of this ordinance, be used, unless the Bonds are required to be redeemed in whole pursuant to the second paragraph of Section 7 hereof, to pay, or reimburse the Owners for the payment of, the cost and expense of making said improvements in the District, including the fees of the initial purchaser and all other proper incidental costs of making said improvements and issuing the Bonds. Section 7 . All of the Bonds shall be subject to redemption prior to maturity, in whole or in part, in regular numerical order, and at any time, subject to the provisions of the following sentence, from available funds in the Bond Fund at the option of the City, without premium or penalty, but with accrued interest to the redemption date. Whenever there are available funds in the Bond Fund (excluding proceeds of the Bonds -9- deposited therein to pay interest on the Bonds through December 1, 1989) in excess of the amount needed to make the next interest payment on the Bonds, it shall be the duty of the Director of Finance to call in, and the duty of the Paying Agent to pay, a suitable number of any Bonds outstanding, provided that the Bond Fund (except for amounts initially deposited therein from Bond proceeds) shall be depleted at least once a year except for a reasonable carryover amount not to exceed the greater of one year's earnings on the Bond Fund or one-twelfth of annual debt service on the Bonds. All of the Bonds shall be subject to redemption prior to maturity, in whole, from proceeds of the Bonds deposited in the Bond Fund and the account for the District in the Capital Projects Fund, without premium or penalty, but with accrued interest to the redemption date, as soon as possible after the date, not later than thirty days after the final passage of this ordinance, , that a petition to the Council to reconsider this ordinance, signed by qualified electors equal in number to at least ten percent of the total votes cast in the last general City election, is presented to the Council, as provided by Article XVII, Section 3 , of the City Charter. Notice of prior redemption shall be given by the Director of Finance in the name of the City by mailing a copy of such notice by registered mail at least fifteen days and not more than sixty days prior to the designated redemption date to the initial purchaser and to each registered owner of any Bonds designated for redemption, at their addresses as the same shall last appear upon the registration records kept by the Registrar. Such notice shall specify the number or numbers of the Bonds to be so redeemed and the date fixed for redemption, and shall further state that on such date there will become and be due and payable at the Paying Agent the principal amount of such Bond or Bonds to be redeemed, with accrued interest to the redemption -10- date, and that from and after such date interest on such Bond or Bonds shall cease. Notice having been given in the manner hereinabove provided, the Bond or Bonds so to be redeemed shall become due and payable on the date so designated, and upon presentation thereof at the Paying Agent, the City will pay the Bond or Bonds so to be redeemed and accrued interest to such date. Section 8 . The Bonds herein authorized to be issued may be refunded in accordance with and under the conditions imposed by the laws of the State and the City in force at the effective date of this ordinance and not otherwise. Section 9. The person in whose name a Bond shall be registered on the registration records kept by the Registrar shall be deemed and regarded as the absolute owner thereof for all purposes and payment of principal of and interest on any Bond shall be made only to or upon the written order of the registered owner thereof or his legal = representative. Upon surrender for transfer of any Bond, fully endorsed for transfer or accompanied by an assignment duly executed by the registered owner or his attorney duly authorized in writing, with signature guarantees satisfactory to the Registrar, the City shall execute and the Registrar shall authenticate and deliver in the name of the transferee a new Bond bearing the same number as the Bond surrendered. Such transfer shall be noted on such registration records. Such transfer shall be without charge to the owner of the Bond, except that the Registrar may require the payment by the owner of the Bond of any tax or other governmental charge required to be paid with respect to such transfer. The Registrar shall not be required to transfer any Bond during the period of fifteen days next preceding any interest payment date, nor to transfer any Bond after the mailing of notice calling such Bond -11- for redemption as herein provided, nor during the period of fifteen days next preceding such publication or mailing of notice of redemption. Section 10. The Bonds shall be executed in the name of the City, shall be signed by the manual or facsimile signature of the Mayor, shall be countersigned by the manual or facsimile signature of the Director of Finance, shall bear the seal of the City and shall be attested and subscribed by the manual or facsimile signature of the City Clerk. The Bonds bearing the signatures of the officers in office at the time of the authorization thereof shall be the 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 shall have ceased to fill their respective offices. The Mayor, Director of Finance and City Clerk, at the time of the execution of a signature certificate relating to the Bonds by each of said officers, may each adopt as• and for his or her own signature the signature of his or her predecessor in office in the event that such signature appears on any of the Bonds. The City Clerk shall preserve a record of the Bonds in a suitable book provided and kept for that purpose in her office. No Bond shall be valid or obligatory for any purposes unless the Registrar has duly executed the certificate of authentication thereon. The certificate of authentication shall be deemed to have been duly executed by the Registrar if manually signed by the Registrar or, in the case of any successor registrar, an authorized officer of the successor registrar, but it shall not be necessary that the same officer sign the certificate of authentication on all of the Bonds issued hereunder nor upon all transfers of any one Bond. -12- If any Bond shall be lost, stolen, destroyed or mutilated, the Registrar shall, in accordance with ordinance No. 80-1984 of the City, and upon receipt of (i) such evidence or information relating thereto, (ii) a surety bond in the total amount of principal and interest and (iii) such reimbursement for expenses as the Registrar may reasonably require, register and deliver to the registered owner thereof a replacement for such Bond bearing the same number as the Bond so replaced. If such lost, stolen, destroyed or mutilated Bond shall have matured, the Registrar may direct the Paying Agent to pay such Bond in lieu of replacement. Section 11. Except as herein stated, the Bonds authorized by this ordinance and the interest thereon shall be payable solely from the Bond Fund, consisting only of moneys collected (principal, interest and penalties, if any) from the assessments to be levied to pay for the improvements and Bond proceeds deposited therein to pay interest on the Bonds through December 1, 1989 ; provided that any proceeds from the sale of the Bonds remaining in the account for the District in the City's Capital Projects Fund after the payment or reimbursement to the City or the Owners of all the costs and expenses of making the improvements and all proper incidental costs (i) shall be used, to the extent permitted by law, to construct, install or acquire additional improvements of a like or similar nature to such improvements, subject, however, to the conditions that the property owners in the District consent to the additional improvements, or (ii) shall be deposited in the Bond Fund and used for Bond redemption. Any assessments in the Bond Fund remaining after the Bonds, both principal and interest, are paid in full, shall be deposited in the Surplus and Deficiency Fund created by the City Charter and referred to in Section 4 hereof. Immediately upon the collection of any assessments, the moneys therefrom shall be deposited in the Bond Fund; and the Bond Fund is and will continue to be irrevocably and exclusively pledged -13- for the payment of the principal of and the interest on the Bonds. The City, as well as redeeming the Bonds in whole from Bond proceeds as and under the circumstances described above, or in part with any such surplus Bond proceeds and with assessments collected during the thirty days after the publication of the assessment ordinance following its final passage, shall redeem the Bonds as herein provided from the remaining assessments payable in thirteen substantially equal annual installments of principal, and from annual payments of interest thereon, to the extent moneys are available therefor in the Bond Fund as herein provided. The City hereby covenants for the benefit of each owner of the Bonds that the total cost of the improvements in the District shall be apportioned, levied and assessed against assessable tracts and parcels of land in the District, in accordance with the Charter, the Code and the Ordinance Creating the District, by ordinance to be hereafter adopted upon completion of the improvements in the District. Section 12 . The Bonds issued pursuant to this ordinance shall not be a debt of the City, and the City shall not be liable thereon, nor shall it thereby pledge its full faith and credit for their payment, nor shall the Bonds be payable out of any funds other than the special assessments, and other moneys pledged to the payment thereof, as herein authorized. Each Bond issued under this ordinance shall recite in substance that said Bond and the interest thereon are payable solely from the special assessments and other moneys pledged to the payment thereof. The payment of Bonds is not secured by an encumbrance, mortgage or other pledge of property of the City except for such special assessments and other moneys pledged for the payment of the Bonds. No property of the City, subject to said exceptions, shall be liable to be forfeited or taken in payments of the Bonds. -14- Section 13 . The Bonds shall be in substantially the following form, with such omissions, insertions, endorsements and variations as to any recitals of fact or other provisions as may be required by the circumstances, be required or permitted by this ordinance, or be consistent with this ordinance and necessary or appropriate to conform to the rules and requirements of any governmental authority or any usage or requirement of law with respect thereto. -15- (Form of Bond) UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF LARIMER CITY OF FORT COLLINS, COLORADO ARBOR PLAZA SPECIAL IMPROVEMENT DISTRICT NO. 88 SPECIAL ASSESSMENT BOND SERIES 1986 No. R- $5, 000 Interest Rate Maturity Date Dated As Of December 1, 2001 August 1, 1986 REGISTERED OWNER: The City of Fort Collins (the "City") , in the County of Larimer and State of Colorado, a municipal corporation duly organized and existing, for value received, hereby promises, out of special funds available for the purpose, as hereinbelow set forth, to pay to the registered owner hereof, the principal sum of FIVE THOUSAND DOLLARS on the first day of December, 2001 (subject to the right of prior redemption hereinbelow mentioned) , and to pay from such sources interest on said principal sum from the most recent interest payment date to which interest has been paid or duly provided for or, if no interest has been paid, from the date of this bond, at the Interest Rate per annum specified above, such interest being payable semiannually 'on the first days of June and December in each year commencing on the first day of June, 1987. Both principal and interest are payable in lawful money of the United States of America. The principal of this bond shall be payable -16- to the registered owner hereof as shown on the registration records kept for that purpose at the office of the City Clerk of the City, in Fort Collins, Colorado, as registrar, or her successor (the "registrar") , upon maturity or prior redemption and presentation and surrender of this bond at the office of the Director of Finance of the City, in Fort Collins, Colorado, as paying agent, or his successor (the "paying agent") under the ordinance of the City (the "Bond Ordinance") authorizing this Bond and the series of which this bond is one. The interest hereon shall be paid to the registered owner hereof by check or draft mailed by the paying agent, on or before each interest payment date (or, if such interest payment date is not a business day, on or before the next succeeding business day) , to such registered owner at his address as it last appears on the registration records kept for that purpose by the registrar at the close of business on the fifteenth day (whether or not a business day) of the calendar month next preceding such interest payment date, but any interest payments in default shall be payable as provided in the Bond Ordinance. If, upon presentation at maturity, payment of this bond is not made as herein provided, interest hereon shall continue at the same rate per annum until the principal hereof is paid in full . All of the bonds of the series of which this is one are subject to prior redemption by the City, at its option at any time, in whole or in part, in regular numerical order, without premium or penalty but with accrued interest to the redemption date. All of the bonds shall be subject to redemption prior to maturity, in whole, from proceeds of the bonds deposited in the Bond Fund and the account for the District in the City's Capital Projects Fund, without premium or penalty, but with accrued interest to the redemption date, as soon as possible after the date, not later than thirty days after the final passage of the Bond Ordinance, that a petition to the Council to reconsider the Bond Ordinance, signed by qualified electors equal in number to -17- at least ten percent of the total votes cast in the last general City election, is presented to the Council, as provided by Article XVII, Section 3 , of the City Charter. The manner of any such redemption and the application of funds in connection therewith shall be as provided in the Bond Ordinance. Redemption shall be made upon giving prior notice by mailing a copy of such notice to the registered owners of all bonds at the addresses shown on the registration records, not less than fifteen days prior to the redemption date, in the manner and upon the conditions provided in the Bond Ordinance. This bond is one of a series of negotiable, special assessment bonds numbered consecutively from R-1 to R-217, both inclusive, issued by the City of Fort Collins and payable as provided in the Bond Ordinance, and which are in the aggregate principal amount of $1, 085, 000. Said bond series is issued in payment for local improvements made and to be made in the CITY OF FORT COLLINS, COLORADO ARBOR PLAZA SPECIAL IMPROVEMENT DISTRICT NO. 88 (the "District") pursuant to and in accordance with the Charter of the City, with Chapter 16 of the Code of the City, and in accordance with the ordinance creating the District and all laws and proceedings thereunto enabling. Pursuant to the Bond Ordinance, reference to which is made for further details, the principal of and the interest on the bonds of the series of which this is one, except as hereinabove and hereinbelow stated, shall be payable solely from a special fund designated "City of Fort Collins, Colorado, Arbor Plaza Special Improvement District No. 88, Special Assessment Bonds, Series 1986, Interest and Bond Retirement Fund" (the "Bond Fund") , consisting only of moneys collected by the City from the special assessments (principal, interest and penalties, if any) -18- to be levied against all the assessable tracts and parcels of land in the District and proceeds of the bonds deposited therein to pay interest on the bonds through December 1, 1989 ; provided that any proceeds from the sale of the bonds remaining after the payment of all the costs and expenses of making the local improvements shall be deposited in the Bond Fund and, except as otherwise provided in the Bond Ordinance, shall be used for bond redemption. The Bond Fund is irrevocably and exclusively pledged for the full and prompt payment of all the bonds to the extent moneys therein are available therefor, as provided in the Bond Ordinance. The bonds, together with similar securities of other special or local improvement districts in the City, shall be additionally secured and their payment shall be supplemented by moneys, if any, in the City's Local Improvement District Surplus and Deficiency Fund (the "Surplus and Deficiency Fund") . Whenever there is a deficiency in the Bond Fund to meet the payment of outstanding bonds, principal and interest, as the same become due, the deficiency shall be made up from the Surplus and Deficiency Fund. Whenever three-fourths of the bonds of the series of which this is one have been paid and canceled and for any reason the remaining assessments therefor are not paid in time to redeem the remaining bonds of the District and interest due thereon, and there is not sufficient money therefor in the Surplus and Deficiency Fund, then the City shall pay such remaining bonds when due and interest due thereon, levy additional ad valorem taxes necessary therefor and reimburse itself by collecting the unpaid assessments due the District. The assessments to be levied in the District shall constitute a lien in the several amounts to be assessed against each assessable tract or parcel of land assessed from the date of -19- the final publication of the assessment ordinance. The lien for such assessments shall be prior and superior to all other liens, claims, encumbrances and titles, whether prior in time or not, and shall constitute such a lien until paid; provided, however: (a) Any assessment lien is coequal with the lien for general (ad valorem) taxes but is subject to extinguishment (unless redeemed) by the sale of any property on account of the nonpayment of general taxes; (b) Any assessment lien on any tract or parcel of land is prior and superior to any assessment lien thereon subsequently levied; and (c) Any assessment lien is possibly coequal with some liens imposed by the State of Colorado or any subdivision thereof and may be subordinate to certain liens and claims in favor of the United States of America or any agency or instrumentality thereof. It is hereby certified, recited and declared that the bonds are issued by approval of the City Council ; and that the principal amount of the bonds does not exceed the amount authorized by law to be issued. It is hereby also certified, recited and declared that the proceedings taken to date with reference to issuing the bonds and making such public local improvements have been regularly had and taken in compliance with law; that all prerequisites to issuing the bonds have been performed; and that all acts, -20- conditions and things essential to the validity of this bond exist, have happened and have been done in due time, form and manner as required by law. This bond is transferable (subject to certain terms and conditions set forth in the Bond Ordinance) by the registered owner hereof in person or by his duly authorized attorney on the registration records kept at the office of the registrar upon presentation of this bond together with a duly executed written instrument of transfer satisfactory to the registrar. Upon such transfer, a new bond of the same principal amount and bearing the same number will be issued to the transferee in exchange herefor. The City, the registrar and the paying agent may deem and treat the person in whose name this bond is registered as the absolute owner hereof, whether or not this bond shall be overdue, for the purpose of receiving payment and for all other purposes. This bond shall not - be valid or obligatory for any purpose until the . registrar shall have manually signed the certificate of authentication hereon. -21- IN TESTIMONY WHEREOF, the City Council of the City of Fort Collins has caused this bond to be executed in the name of and on behalf of the City and to bear the manual or facsimile signature of the Mayor of the City, to be countersigned with the manual or facsimile signature of the Interim Director of Finance, to bear the seal of the City and to be attested by the manual or facsimile signature of the City Clerk, all as of the first day of August, 1986. Signed: (Manual or Facsimile Signature) Mayor Countersigned: (Manual or Facsimile Signature) Interim Director of Finance (SEAL] Attest: (Manual or Facsimile Signature) City Clerk (End of Form of Bond) -22- (Form of Certificate of Authentication) REGISTRATION DATE: This is one of the bonds described in the within- mentioned Bond Ordinance, and this bond has been duly registered on the registration records kept by the undersigned as Registrar for the bond. By City Clerk City of Fort Collins, Colorado (End of Form of Certificate of Authentication) -23- (Form of Assignment Provision) ASSIGNMENT PROVISION For value received, hereby assigns and transfers unto the within bond and hereby irrevocably constitutes attorney, to transfer the same on the records of the registrar, with full power of substitution in the premises. Dated: The signature affixed to the above assignment is guaranteed as that of the assignor designated above. By: Title: (End of Form of Assignment Provision) -24- Section 14 . When the Bonds have been duly sold, executed and registered, the Director of Finance shall deliver them to the initial purchaser on receipt of the purchase price. The funds realized from the sale of the Bonds, and investment income therefrom, shall be deposited as hereinabove provided and applied solely to defray the costs and expenses of making the improvements, the cost of which improvements is to be ultimately defrayed by special assessments; provided, that after said costs and expenses are paid, any funds remaining in the account established for the District in the City's Capital Projects Fund from the sale of the Bonds or investment income therefrom shall, except as otherwise provided herein, be deposited in the Bond Fund and used for the purpose of redeeming Bonds; and provided further, that $ 263,000 of the proceeds of the Bonds shall be deposited into the Bond Fund and shall be used to pay the interest on the Bonds through December 1, 1989. The initial purchaser of the Bonds, however, shall in no manner be responsible for the application by the City, or any of its officers, of any of the funds derived from the sale thereof. There is hereby appropriated the sum of $1, 085, 000 for the payment of capitalized interest, the construction of the local improvements and payment of associated costs. Section 15. So long as any of the Bonds remain outstanding, the City will keep or cause to be kept true and accurate books, records and accounts showing full and true entries covering the collection and disposition of said special assessments as well as any delinquencies in the collection thereof, covering deposits and disbursements in each of said special funds herein designated, covering the redemption of Bonds, both principal and interest, and covering disbursements to defray the cost of the improvements, including incidental expenses; and the City will permit an inspection and examination of all books, records and accounts at all reasonable times by a representative of the initial purchaser of the Bonds and a -25- representative of the owner of any property in the District. In addition, the City at least once a year will cause, at its regular annual audit, an audit to be made relating to said books, records and accounts by a certified public accountant to be employed by the City at its own expense, and a copy of said audit immediately after its completion will be furnished by the City, without charge, to the initial purchaser and, upon request, to any property owners in the District. Section 16. The officers of the City hereby are authorized and directed to take all action necessary or appropriate to effectuate the provisions of this ordinance, including, without limiting the generality of the foregoing, the printing of the Bonds, including thereon, if requested, a certified true copy of Bond counsel 's approving opinion, and the execution of such certificates as may reasonably be required by the initial purchaser thereof, relating, inter alia, to the execution of the Bonds, the tenure and identity of the municipal officials, the absence and existence of factors affecting the exemption of interest on the Bonds from federal and state income taxation, the accuracy of property descriptions, the delivery of the Bonds and the absence of litigation pending or threatened affecting the validity of the Bonds, if such is in accordance with the facts. Section 17 . Any registered owner of any one or more of the Bonds may, either at law or in equity, by suit, action, mandamus or other appropriate proceedings in any court of competent jurisdiction, protect the liens created by this ordinance on the proceeds of said assessments and the moneys in each of said special funds, and may by suit, action, mandamus or other appropriate proceedings enforce and compel the performance of any duty imposed upon the City by the provisions of this ordinance, or any ordinance heretofore or hereafter adopted concerning the District, including, without limiting the -26- generality of the foregoing, the segregation of special assessments and taxes, proceeds and revenues for said funds, the proper application thereof, and the appointment of a receiver. Section 18. The City covenants for the benefit of the owners of the Bonds that it will not make any use of the proceeds of the Bonds, any funds reasonably expected to be used to pay the principal of or interest on the Bonds, or any other funds of the City, and will not make any use of the facilities financed with the proceeds of the Bonds, which would cause the interest on the Bonds to become subject to federal income taxation under present federal law, and that it will not take any action or omit to take any action with respect to the Bonds, the proceeds thereof or the facilities financed thereby if such action or omission would cause the interest on the Bonds to become subject to federal income taxation under present federal law. This covenant requires the City to comply with the provisions of Section 103 of the Internal Revenue Code of 1954,, as amended to the date of delivery of the Bonds. The City covenants for the benefit of the registered owners of the Bonds that it will take all steps necessary to comply with those requirements applicable to the Bonds imposed under (i) H.R. 3838, 99th Congress, ist Session, passed by the House of Representatives of the United States on December 17 , 1985, (the "House Bill~) to the extent necessary to maintain the exemption of interest on the Bonds from federal income taxation under the House Bill in its form as of the date of delivery of the Bonds (except the minimum tax imposed on certain insurance companies by Section 1023 of the House Bill) and (ii) H.R. 3838 as passed by the Senate on June 24 , 1986, with an amendment in the nature of a substitute (the "Senate Billy) to the extent necessary to maintain the exemption of interest on the Bonds from federal income taxation under the Senate Bill in its form as of -27- the date of delivery of the Bonds (except the alternative minimum tax imposed on certain corporations by Section 1101 of the Senate Bill) ; provided however, that this does not require the City: (1) to comply with those requirements of the House Bill for which a postponed effective date is endorsed in the Joint Statement by the chairmen and ranking members of the House Committee on Ways and Means and Senate Committee of Finance and Secretary of the Treasury on the Effective Dates of Pending Tax Reform Legislation, released on March 14, 1986, as modified by the Joint Statement of the chairmen of the House Committee on Ways and Means and the Senate Committee on Finance and Secretary of the Treasury released on July 17, 1986 (as so modified, the NJoint Statement~) , or (2) to comply with any other requirement of the House Bill or Senate Bill in the event that compliance with that requirement ceases to be necessary (because of a change in the effective date applicable to that requirement, or because of a substantive change in the provisions of the House Bill or Senate Bill imposing that requirement) in order to maintain the exemption of the interest on the Bonds from federal income taxation under the House Bill or the Senate Bill or any combination thereof that is enacted into law (except the minimum tax imposed by Section 1023 of the House Bill and the corporate minimum tax imposed by Section 1101 of the Senate Bill) . -28- The City further covenants, represents and warrants that the proceeds of the Bonds will be used in such a manner that the Bonds will be bonds to which the Joint Statement's endorsement of a postponement of the effective date of certain provisions of the House Bill applies. Section 19. This ordinance may be amended or supplemented by an ordinance or ordinances adopted by the Council in accordance with the Charter and Code of the City, as amended, and without the receipt by the City of any additional consideration, with the written consent of the registered owners of seventy-five percent (75%) of the Bonds authorized by this ordinance and outstanding at the time of the adoption of such amendatory or supplemental ordinance; provided, however, that no such ordinance shall have the effect of permitting: (1) An extension of the maturity of any Bond authorized by this ordinance; or (2) A reduction in the principal amount of any Bond or the rate of interest thereon without the written consent of the registered owner of said Bond; or (3) The creation of a lien upon or a pledge of property, revenues or funds, ranking prior to the liens or pledges created by this ordinance; or (4) A reduction of the principal amount of Bonds required for consent of such amendatory or supplemental ordinance. -29- Section 20. After the Bonds have been issued, this ordinance shall constitute a contract between the City and the registered owner or owners of the Bonds, and shall be and remain irrepealable until the Bonds and the interest accruing thereon shall have been fully paid, satisfied and discharged. Section 21. If any section, paragraph, clause or provision of this ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this ordinance. Section 22 . All acts, orders, resolutions and ordinances, and parts thereof, in conflict with this ordinance hereby are rescinded; provided, that, to the extent that any provision of this ordinance might be deemed inconsistent with any provision of the Code or the ordinance creating the District, this ordinance shall supersede any such inconsistent provision only to the extent of such inconsistency. Section 23 . The published title of the subject matter of this ordinance shall be in substantially the following form, and the publication made before final passage of this ordinance shall additionally include the notice substantially as set forth in Section 24 of this ordinance: -30- (Form of Published Title) ORDINANCE NO. , 1986 AN ORDINANCE CONCERNING THE CITY OF FORT COLLINS, COLORADO, ARBOR PLAZA SPECIAL IMPROVEMENT DISTRICT NO. 88 ; RATIFYING ACTION HERETOFORE TAKEN IN CONNECTION THEREWITH; PROVIDING FOR THE COLLECTION OF SPECIAL ASSESSMENTS TO BE LEVIED TO DEFRAY THE COSTS OF IMPROVEMENTS THEREIN; PROVIDING FOR THE ISSUANCE OF SPECIAL ASSESSMENT BONDS PAYABLE FROM THE ASSESSMENTS TO BE LEVIED IN SAID DISTRICT; PRESCRIBING DETAILS IN CONNECTION WITH SAID ASSESSMENTS, BONDS AND DISTRICT, INCLUDING THE MANNER OF ADDITIONALLY SECURING AND EFFECTING THE PAYMENT OF SAID BONDS; PRESCRIBING DUTIES OF CERTAIN PUBLIC OFFICIALS IN CONNECTION WITH SAID ASSESSMENTS, BONDS AND DISTRICT; REPEALING ALL ORDINANCES AND OTHER ACTION OF THE CITY TO THE EXTENT INCONSISTENT HEREWITH; , AND PROVIDING OTHER MATTERS RELATING THERETO. PUBLIC NOTICE IS HEREBY GIVEN that the above-entitled ordinance of the City of Fort Collins was introduced and considered favorably on * reading on , 1986. The text of the ordinance is available for public inspection and acquisition at the office of the City Clerk at 300 West La Porte Avenue, in Fort Collins, Colorado, during normal office hours. -31- BY ORDER OF THE COUNCIL OF THE CITY OF FORT COLLINS dated this , 1986. /s/ Wanda Krajicek City Clerk * insert first or second, as appropriate (End of Form of Published Title) -32- Section 24 . There shall be added to said title as published before final passage, the following paragraph: "The Council will consider said ordinance for final passage at the Council Chambers, 300 West La Porte, in the City, on August 5, 1986, being not earlier than seven days after the first publication of the title of said ordinance, at the hour of 6: 30 p.m. " Section 25. Immediately upon its final passage, this ordinance shall be recorded in the book of ordinances of the City kept for that purpose, authenticated by the signatures of the Mayor and of the City Clerk, and within five days after final passage, shall be published by title and number in The Coloradoan, a newspaper published and of general circulation in the City; and this ordinance shall be in full force and effect ten days. after such final passage. INTRODUCED, CONSIDERED FAVORABLY ON FIRST READING on July 15, 1986 and to be presented for final passage on August 5, 1986. 00 Mayor [SEAL] Attest: City C1 rk Passed and adopted on final reading this 5th day of August, A. D. 1986. Mayor City Cle�4: -33-