HomeMy WebLinkAbout130 - 09/16/1986 - AUTHORIZING THE ISSUANCE OF SOUTH LEMAY SPECIAL IMPROVEMENT DISTRICT NO. 86, SPECIAL ASSESSMENT BOND D9436
09/11/86
ORDINANCE NO. 130, 1986
AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT
COLLINS, COLORADO, SOUTH LEMAY SPECIAL IMPROVEMENT
DISTRICT NO. 86, SPECIAL ASSESSMENT BONDS, DATED
OCTOBER 1, 1986, IN THE AGGREGATE PRINCIPAL AMOUNT OF
$2,530,000; PRESCRIBING THE FORM OF THE BONDS; AND
PROVIDING FOR THE PAYMENT OF THE BONDS AND THE INTEREST
THEREON.
WHEREAS, the Council (the "Council" ) of the City of
Fort Collins, Colorado (the "City" ) , has heretofore created South
Lemay Special Improvement District No. 86 (the "District" ) and
authorized the acquisition, construction and installation of
street, curb, gutter, sidewalk, street lighting, landscaped
medians, streetscaping, water, sanitary sewer, bridge and storm
drainage improvements (the "Improvements" ) therein, all in
accordance with the Charter of the City (the "Charter" ) and
Chapter 16 of the Code of the City (the "Code" ) ; and
WHEREAS, the Improvements will be acquired, constructed
and installed as set forth in Resolution 86-9, including Exhibit
"A" thereto, adopted by the Council on January 21, 1986, and
Ordinance No. 6, 1986, finally passed on February 4, 1986, which
Resolution 86-9 and Ordinance No. 6, 1986, are incorporated
herein by this reference; and
WHEREAS, the acquisition, construction and installation
of the Improvements in the District will confer general benefits
on the City and special benefits on the assessable property
within the District; and
WHEREAS, the Council has determined that the portion of
the cost of the acquisition, construction, installation and
financing of the Improvements described in detail in Exhibit "A"
to Resolution 86-9 to be assessed against the property within the
District will not exceed $2, 530,000 and that special assessment
bonds of the City for the District should be issued in the amount
of $2 ,530, 000; and
WHEREAS, a proposal for the purchase of the Bonds, as
defined in Section 1 hereof, on terms favorable to the City has
been received from First Interstate Bank of Denver, N.A. , Denver,
Colorado (the "Purchaser" ) , which the Council has determined, and
does hereby determine, to accept; and
WHEREAS, it is necessary to authorize the issuance of
the Bonds and to provide for the repayment thereof.
D9436 1 09/11/86
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO, AS FOLLOWS:
1. In order to defray the cost of acquiring,
constructing and installing the Improvements within the District,
together with all necessary and incidental costs and expenses
permitted by the Charter and the Code, the City shall issue its
South Lemay Special Improvement District No. 86, Special
Assessment Bonds, dated October 1, 1986, in the aggregate
principal amount of $2, 530,000 (the "Bonds" ) , consisting of 506
fully registered bonds in the denomination of $5,000 each,
numbered consecutively from 1 to 506, inclusive. The Bonds shall
mature on October 1, 2001, and shall bear interest as herein set
forth.
2 . The following numbered Bonds in the following
principal amounts shall bear interest from October 1, 1986, to
October 1, 2001, except if redeemed prior thereto, at the
following per annum rates:
Bonds Numbered Principal Per Annum
(both inclusive) Amounts Interest Rates
1-27 $135, 000 7.25%
28-55 140, 000 7.50
56-86 155,000 7. 75
87-119 165, 000 8.00
120-155 180,000 8.25
156-194 195, 000 8. 40
195-236 210,000 8. 50
237-281 225, 000 8. 60
282-330 245,000 8. 70
331-384 270,000 8. 80
385-442 290,000 8.90
443-506 320,000 9. 00
Said interest shall be payable April 1, 1987, and semiannually
thereafter on the 1st day of October and the 1st day of April of
each year. If upon presentation at maturity the principal of any
Bond is not paid as provided herein, interest shall continue
thereon at the same interest rate until the principal thereof is
paid in full .
3 . The maximum net effective interest rate for the
Bonds is 15%. The actual net effective interest rate on the
Bonds is 8. 89072%.
4. The principal of and interest on the Bonds shall
be payable in lawful money of the United States of America to the
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registered owners of the Bonds by the Finance Director of the
City, who is hereby designated the paying agent for the Bonds.
The principal of and the final interest payment due on the Bonds
shall be paid to the registered owner of each Bond upon
presentation and surrender of the Bond at maturity or upon prior
redemption. Except as heretofore and hereinafter provided, the
interest shall be paid to the registered owner of each Bond
determined as of the close of business on the regular record
date, which shall be the fifteenth ( 15th) day of the calendar
month next preceding the interest payment date, irrespective of
any transfer of ownership of the Bond subsequent to the regular
record date and prior to such interest payment date, by check or
draft mailed to such registered owner at the address appearing on
the registration books of the City maintained by the City Clerk
as registrar. Any interest not paid when due and any interest
accruing after maturity shall be paid to the registered owner of
each Bond entitled to receive such interest determined as of the
close of business on the special record date, which shall be
fixed by the City for such purpose, irrespective of any transfer
of ownership of the Bond subsequent to such special record date
and prior to the date fixed by the City for the payment of such
interest, by check or draft mailed as aforesaid. Notice of the
special record date and of the date fixed for the payment of such
interest shall be given by sending a copy thereof by first-class,
postage prepaid mail, at least ten ( 10) days prior to the special
record date, to the Purchaser and to the registered owner of each
Bond upon which interest will be paid determined as of the close
of business on the day preceding such mailing at the address
appearing on the registration books of the City.
If the registrar or paying agent initially appointed
hereunder shall resign, or if the City shall reasonably determine
that said 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 books, 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 bond 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.
5. The Bonds shall be subject to redemption prior to
maturity in regular numerical order on each October 1 at a price
equal to the principal amount of the Bonds plus accrued interest,
with no premium, as follows: from the moneys deposited on or
before each August 1 in the South Lemay Special Improvement
District No. 86, Special Assessment Bonds, Bond and Interest Fund
D9436 3 09/11/86
(the "Bond Fund" ) created in Section 11 hereof, the Finance
Director shall call in and pay as many outstanding Bonds as
possible leaving in the Bond Fund the amount necessary to pay
interest on the outstanding Bonds due on the next subsequent
interest payment date. Notice of such call shall be given by the
Finance Director by mailing a copy thereof by first-class,
postage prepaid mail, at least forty-five (45) days and not more
than sixty (60) days prior to the designated redemption date to
the Purchaser and to the registered owners of each of the Bonds
being redeemed at their addresses as the same shall last appear
on the registration books of the City. Said notice shall specify
by number the Bonds so called. Bonds so called shall be redeemed
in regular numerical order at a price equal to the principal
amount of each Bond so redeemed plus accrued interest thereon as
hereinafter provided. If any Bond shall have been duly called
for redemption, then such Bond shall become due and payable upon
such redemption date, and from and after such date interest shall
cease to accrue thereon. Failure to mail any notice as aforesaid
or any defect in any notice mailed with respect to any Bond shall
not affect the validity of the redemption proceedings with
respect to any other Bond. Any Bonds redeemed prior to maturity
by call for prior redemption or otherwise shall not be reissued
and shall be cancelled the same as Bonds paid at or after
maturity.
6. The Bonds shall be executed in the name and on
behalf of the City with the facsimile signature of the Mayor of
the City, shall bear a facsimile of the seal of the City, shall
be attested with the facsimile signature of the City Clerk of the
City, and shall be countersigned with the manual signature of the
Finance Director or Acting Finance Director of the City. Should
any officer whose manual or facsimile signature appears on the
Bonds cease to be such officer before delivery of the Bonds to
the Purchaser, such manual or facsimile signature shall
nevertheless be valid and sufficient for all purposes.
7 . Upon their execution and prior to their delivery
the Bonds shall be registered for the purpose of payment of
principal and interest in the office of the City Clerk as
registrar. Thereafter, the Bonds shall be transferable only upon
the registration books of the City at the office of the City
Clerk by the registered owner thereof or by his, her or its duly
authorized attorney-in-fact or legal representative. The City
Clerk shall accept a Bond for registration or transfer only if
the registered owner is to be an individual, a corporation, a
partnership, or a trust. Bonds may be transferred upon surrender
of the Bonds together with written instruments of transfer duly
executed by the registered owners or their duly authorized
attorneys-in-fact or legal representatives with guaranty of
signatures satisfactory to the City Clerk, containing written
instructions as to the details of the transfer of such Bonds,
D9436 4 09/11/86
along with the social security numbers or federal employer
identification numbers of such transferees and, if such
transferee is a trust, the names and social security numbers of
the settlors and the beneficiaries of the trust. Transfers shall
be made without charge, except that the City Clerk may require
payment of a sum sufficient to defray any tax or other
governmental charge that may hereafter be imposed in connection
with any transfer of Bonds. No registration of any Bond shall be
effective until entered on the registration books. Concurrently
with the entry of the required information on the registration
books the City Clerk shall enter the required information on the
registration panel pertaining to each Bond. The City Clerk shall
not be required to transfer ownership of any Bond during the
fifteen (15) days next preceding any interest payment date nor to
transfer any Bond after mailing any notice of redemption as
herein provided nor during the fifteen ( 15) days next preceding
such mailing of any notice of redemption. The City may deem and
treat the person in whose name any Bond is last registered upon
the books of the City as the absolute owner thereof for the
purpose of receiving payment of the principal of and interest on
such Bond and for all other purposes, and all such payments so
made to such person or upon his order shall be valid and
effective to satisfy and discharge the liability of the City upon
such Bond to the extent of the sum or sums so paid, and the City
shall not be affected by any notice to the contrary.
8. If any Bond shall have been lost, destroyed or
wrongfully taken, the City shall provide for the replacement
thereof in the manner set forth and upon receipt of the evidence,
indemnity bond and reimbursement for expenses provided in
Ordinance No. 80, 1984, adopted by the Council on July 17, 1984.
9. The Bonds and the registration panels pertaining
thereto shall be in substantially the following form:
D9436 5 09/11/86
(Form of Bond]
(Text of Face)
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF LARIMER
CITY OF FORT COLLINS
SOUTH LEMAY SPECIAL IMPROVEMENT DISTRICT NO. 86
SPECIAL ASSESSMENT BOND
No. $5,000
The City of Fort Collins, in the County of Larimer and
State of Colorado, for value received, hereby promises to pay to
the registered owner hereof whose name, address, and
identification number appear on the registration panel attached
hereto, solely out of the special funds hereinafter described,
but not otherwise, the principal sum of
FIVE THOUSAND DOLLARS
in lawful money of the United States of America, on the 1st day
of October, 2001, and likewise to pay interest thereon from the
date hereof to the maturity date hereof, except if redeemed prior
thereto, at the rate of and hundredths
per cent (_.__Y,) per annum, payable April 1, 1987, and
semiannually thereafter on the 1st day of October and the 1st day
of April of each year. If upon presentation at maturity the
principal of this Bond is not paid as provided herein, interest
continues hereon at the same interest rate until the principal
hereof is paid in full . The principal of and interest on this
Bond are payable to the registered owner hereof by the Finance
Director of the City or a successor paying agent. The principal
of and the final interest payment due on this Bond are payable to
the registered owner hereof upon presentation and surrender of
this Bond at maturity or upon prior redemption. Except as
heretofore and hereinafter provided, the interest is payable paid
to the registered owner hereof determined as of the close of
business on the regular record date, which shall be the fifteenth
( 15th) day of the calendar month next preceding the interest
payment date, irrespective of any transfer of ownership hereof
subsequent to the regular record date and prior to such interest
payment date, by check or draft mailed to such registered owner
at the address appearing on the registration books of the City
maintained by the City Clerk as registrar or by a successor
registrar. Any interest hereon not paid when due and any
D9436 6 09/11/86
interest hereon accruing after maturity is payable to the
registered owner of this Bond determined as of the close of
business on the special record date, which is to be fixed by the
City for such purpose, irrespective of any transfer of ownership
of the Bond subsequent to such special record date and prior to
the date fixed by the City for the payment of such interest, by
check or draft mailed as aforesaid. Notice of the special record
date and of the date fixed for the payment of such interest is to
be given by sending a copy thereof by first-class, postage
prepaid mail, at least ten ( 10) days prior to the special record
date, to First Interstate Bank of Denver, N.A. , Denver, Colorado
and to the registered owner of each Bond upon which interest will
be paid determined as of the close of business on the day
preceding such mailing at the address appearing on the
registration books of the City.
The Bonds of the issue are subject to redemption prior
to maturity in regular numerical order on each October 1 at a
price equal to the principal amount of the Bonds redeemed plus
accrued interest, with no premium, as follows: from the moneys
deposited on or before each August 1 in the South Lemay Special
Improvement District No. 86, Special Assessment Bonds, Bond and
Interest Fund hereinafter described, the Finance Director of the
City is to call in and pay as many outstanding Bonds as possible
leaving in the Bond Fund the amount necessary to pay interest on
the outstanding Bonds due on the next subsequent interest payment
date as set forth in the Ordinance authorizing the issuance of
this Bond. Notice of such call is to be given by the Finance
Director by mailing a copy thereof by first-class, postage
prepaid mail, at least forty-five (45) days and not more than
sixty (60) days prior to the designated redemption date, to First
Interstate Bank of Denver, N.A. , Denver, Colorado, and to the
registered owners of each of the Bonds being redeemed at their
addresses as the same last appear on the registration books of
the City. Said notice is to specify by number the Bonds so
called. Bonds of this issue so called are to be redeemed in
regular numerical order at a price equal to the principal amount
of each Bond so redeemed plus interest thereon as hereinafter
provided. If this Bond has been duly called for redemption, it
is to become due and payable upon such redemption date, and from
and after such date interest ceases to accrue hereon. Failure to
mail any notice as aforesaid or any defect in any notice mailed
with respect to any Bond does not affect the validity of the
redemption proceedings with respect to any other Bond.
This Bond is one of a series of special assessment
bonds in the aggregate principal amount of $2 , 530,000 issued for
the purpose of defraying the costs of acquiring, constructing,
installing and financing street, curb, gutter, sidewalk, street
lighting, landscaped medians, streetscaping, water, sanitary
sewer, bridge and storm drainage improvements in and for South
D9436 7 09/11/86
Lemay Special Improvement District No. 86 by virtue of and in
full conformity with the Constitution of the State of Colorado,
the home rule Charter of the City, and Chapter 16 of the Code of
the City and pursuant to and under the authority of an Ordinance
duly adopted by the Council of the City prior to the issuance of
this Bond.
This Bond is not, and is not to be considered or taken
to be, a general obligation or indebtedness of the City within
the meaning of any requirement of or limitation imposed by law.
This Bond and the interest hereon are payable solely
from, and as security for such payment there is exclusively
pledged, a special fund designated as the South Lemay Special
Improvement District No. 86, Special Assessment Bonds, Bond and
Interest Fund, into which there is initially to be deposited the
accrued interest on the Bonds. Any proceeds of the Bonds
remaining in the Capital Projects Fund of the City after the cost
of the aforesaid improvements has been paid in full, including
interest which has been capitalized for the purpose of paying
interest on the Bonds prior to the collection of special
assessments but not including amounts which may be required to be
paid to the United States government for arbitrage rebate
purposes, are required to be deposited to the Bond and Interest
Fund. Moneys collected on account of assessments hereafter to be
levied against the property within South Lemay Special
Improvement District No. 86 and specially benefited by the
acquisition, construction and installation of the improvements
therein are also required to be deposited to the Bond and
Interest Fund.
Bonds of this issue, together with bonds of other
special or local improvement districts of the City, are
additionally secured by moneys deposited in the special Surplus
and Deficiency Fund of the City. Whenever there is a deficiency
in the Bond and Interest Fund for the payment of principal or
interest on this Bond, the deficiency is to be paid by
transferring moneys from the special Surplus and Deficiency Fund
to the Bond and Interest Fund. The Ordinance authorizing the
issuance of this Bond provides that whenever three-fourths (3/4)
of the Bonds of this issue have been paid and cancelled and for
any reason the remaining assessments are not paid in time to
redeem the remaining Bonds and to pay the interest thereon, and
there are not sufficient funds in the special Surplus and
Deficiency Fund to do so, then the City shall pay the remaining
Bonds when due and the interest thereon, levy additional ad
valorem taxes therefor, and reimburse itself by collecting the
unpaid assessments due.
The City covenants with the registered owner of this
Bond that it will levy and collect the assessments against the
D9436 8 09/11/86
property specially benefited and deposit the same into the Bond
and Interest Fund and that it will diligently enforce the lien of
any unpaid assessment against the property charged therewith.
The City further covenants with the registered owner of this Bond
that it will keep and perform all of the covenants of this Bond
and of the Ordinance authorizing the issuance hereof. Reference
is hereby made to said Ordinance for a description of the
provisions, terms, and conditions upon which this Bond is issued
and secured, including, without limitation, the nature and extent
of the security for this Bond, the collection and disposition of
the special assessments and moneys charged with and pledged to
the payment of this Bond, the special funds referred to above,
and the nature and extent of the security and pledge afforded
thereby for the payment of this Bond, the rights, duties and
obligations of the City and its Council, and the rights and
remedies of the registered owner of this Bond.
It is hereby recited, certified and warranted that
this Bond, does not exceed any limitation imposed by law; that
every requirement of law relating to the creation of the
District, the acquisition, construction and installation of the
improvements therein, the preparation for levying of the
assessments, and the issuance of this Bond has been fully
complied with by the proper officers of the City; that all acts,
conditions and things required by law to be done precedent to and
in the issuance of this Bond have been properly done; and that
this Bond does not contravene any constitutional or statutory
provision of the State of Colorado or provision of the City
Charter or ordinances.
For the payment of this Bond and the interest hereon,
the City pledges the exercise of all of its lawful corporate
powers.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS BOND SET FORTH ON THE REVERSE HEREOF.
IN TESTIMONY WHEREOF, the City of Fort Collins,
Colorado, has caused this Bond to be executed in the name and on
behalf of the City with the facsimile signature of the Mayor of
the City, to be sealed with a facsimile of the seal of the City,
to be attested with the facsimile signature of the City Clerk of
D9436 9 09/11/86
the City, and to be countersigned with the manual signature of
the Finance Director or Acting Finance Director of the City, all
as of the 1st day of October, 1986.
CITY OF FORT COLLINS, COLORADO
(CITY) By: (Facsimile Signature)
(SEAL) Mayor
Attest:
(Facsimile Signature)
City Clerk Countersigned:
(Manual Signature)
Finance Director or
Acting Finance Director
D9436 10 09/11/86
(Text of Reverse)
This Bond is transferable only upon the registration
books of the City at the office of the City Clerk or a successor
registrar by the registered owner hereof or by his, her or its
duly authorized attorney-in-fact or legal representative, upon
surrender hereof together with a written instrument of transfer
duly executed by the registered owner or his, her or its duly
authorized attorney-in-fact or legal representative with guaranty
of signature satisfactory to the City Clerk, containing written
instructions as to the details of the transfer, along with the
social security number or federal employer identification number
of the transferee and, if the transferee is a trust, the names
and social security numbers of the settlors and beneficiaries of
the trust. Transfers are to be made without charge, except that
the City Clerk may require payment of a sum sufficient to defray
any tax or other governmental charge that may hereafter be
imposed in connection with any transfer of Bonds. Upon such
transfer the City Clerk is to enter the date of registration and
the name, address, and social security number or federal employer
identification number of the new registered owner of this Bond on
the registration panel attached hereto. The City Clerk is not
required to transfer ownership of any Bond during the fifteen
(15) days next preceding any interest payment date nor to
transfer any bond after mailing any notice of redemption as
herein provided nor during the fifteen ( 15) days next preceding
such mailing of any notice of redemption. The City may deem and
treat the person in whose name this Bond is last registered upon
the books of the City as the absolute owner hereof for the
purpose of receiving payment of the principal of and interest on
this Bond and for all other purposes, and all such payments so
made to such person or upon his order will be valid and effective
to satisfy and discharge the liability of the City upon this Bond
to the extent of the sum or sums so paid, and the City will not
be affected by any notice to the contrary.
D9436 11 09/11/86
(Registration Panel)
This Bond is registered in the office of the City Clerk
of the City of Fort Collins, Colorado, as registrar, or its
successor registrar, in the name of the owner listed below, and
the principal of and interest on this Bond shall be payable only
to such owner.
Name, Address, and
Date of Identification Number of Signature of
Registration Registered Owner City Clerk
[End of Form of Bond]
D9436 12 09/11/86
(Assignment Form to be Used for Transfers)
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and
transfers unto
PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE
(Name and Address of Assignee)
the attached Bond and does hereby irrevocably constitute and
appoint , or its
successor, as transfer agent, to transfer said Bond on the books
kept for registration thereof.
Dated:
Signature guaranteed:
(Bank, Trust Company or Firm)
NOTICE: The signature to this
assignment must correspond
with the name of the
Registered Owner as it appears
upon the registration panel of
the attached Bond in every
particular without alteration
or enlargement or any change
whatever.
D9436 13 09/11/86
10. The proceeds of the Bonds, excluding accrued
interest but including capitalized interest, shall be deposited
into a special account designated as the "Construction Account -
South Lemay Special Improvement District No. 86" (the
"Construction Account" ) in the Capital Projects Fund of the City
(the "Capital Projects Fund" ) . The proceeds of the Bonds so
deposited to the Construction Account shall be used only to pay
or reimburse the City for the costs and expenses of acquiring,
constructing and installing the Improvements, except to the
extent that certain of the investment proceeds of the Bonds
deposited to the Construction Account shall be subject to
required arbitrage rebate to the United States government and
deposited to the Excess Investment Earnings Fund as provided in
Section 14 hereof. There is hereby appropriated the sum of
$2,530,000 in the Capital Projects Fund for the construction of
the Improvements and associated costs, including the Purchaser' s
discount and capitalized interest. In the event that less than
all of the proceeds of the Bonds are expended to pay such costs
and expenses or transferred to the Excess Investment Earnings
Fund, any remaining sums shall be transferred upon completion of
the Improvements to the Bond Fund and used for the purpose of
calling in and paying the principal of and interest on the Bonds.
Accrued interest shall be deposited into the Bond Fund and
applied for the payment of interest first due on the Bonds.
Until the acquisition, construction and installation of the
Improvements has been completed, amounts in the Construction
Account representing capitalized interest shall be deposited to
the Bond Fund on each interest payment date in amounts sufficient
to pay the interest on the Bonds due on such date.
11 . The Bonds and the interest thereon shall be
payable solely from, and there is hereby created, the Bond Fund,
into which there shall initially be deposited accrued interest on
the Bonds. Any proceeds of the Bonds remaining in the
Construction Account after the cost of the Improvements has been
paid in full and all required transfers to the Excess Investment
Earnings Fund have been made shall be deposited to the Bond Fund.
All moneys collected on account of assessments to be levied
against the property within the District and specially benefited
by the acquisition, construction and installation of the
Improvements therein shall also be deposited to the Bond Fund.
The moneys in the Bond Fund shall be used for the purpose of
paying the principal of and interest on the Bonds and for no
other purpose whatsoever until the Bonds, both principal and
interest, have been fully paid and discharged, and as security
for such payment the Bond Fund is hereby exclusively pledged.
12 . The Bonds, together with bonds of other special or
local improvement districts of the City, shall be additionally
secured by moneys deposited in the special Surplus and Deficiency
Fund of the City (the "Surplus and Deficiency Fund" ) . Whenever
D9436 14 09/11/86
there is a deficiency in the Bond Fund for the payment of
principal or interest on the Bonds, the deficiency shall be paid
by transferring moneys from the Surplus and Deficiency Fund to
the Bond Fund. Whenever three-fourths (3/4) of the Bonds have
been paid and cancelled and for any reason the remaining
assessments are not paid in time to redeem the remaining Bonds
and to pay the interest thereon, and there are not sufficient
funds in the Surplus and Deficiency Fund to do so, then the City
shall pay the remaining Bonds when due and the interest thereon,
levy additional ad valorem taxes therefor, and reimburse itself
by collecting the unpaid assessments due.
13 . The Bonds, when executed and registered as
provided herein and in the Code, shall be delivered by the City
to the Purchaser upon payment to the City of the purchase price
therefor. The proceeds derived from the sale of the Bonds shall
be used exclusively for the purposes stated herein; provided,
however that any portion of such proceeds may be temporarily
invested pending such use in securities or obligations which are
lawful investments for the City with such temporary investments
to be made consistent with the covenant hereinafter made
concerning arbitrage bonds. Neither the Purchaser nor the
registered owner of any Bond shall be in any way responsible for
the application of the proceeds of the Bonds by the City or any
Of its officers.
14. There is hereby created an Excess Investment
Earnings Fund for the Bonds. "Excess Investment Earnings" on the
Construction Account shall be determined by the Finance Director
at the end of each bond year for the Bonds, the first such bond
year commencing with the date of issuance of the Bonds. "Excess
Investment Earnings" are the excess of:
(i) the amount earned on investments held in the
Construction Account over
(ii ) the amount that would have been earned on
such investments at the yield on the Bonds (determined on a
present value basis from the date of issuance of the Bonds,
without adjustment for costs of issuance) .
Promptly after each bond year (but not later than
thirty (30) days after the acquisition, construction and
installation of the Improvements has been completed) , the Finance
Director shall transfer from the Construction Account to the
Excess Investment Earnings Fund such amount as shall be necessary
to cause the aggregate amount transferred to the Excess
Investment Earnings Fund to equal the Excess Investment Earnings
as of the end of such bond year; provided that no such transfers
shall be necessary if the proceeds of the Bonds are fully
expended within six months of the date of issue. Withdrawals
D9436 15 09/11/86
from the Excess Investment Earnings Fund may be made on account
of negative arbitrage in the Construction Account, but not on
account of negative arbitrage in the Excess Investment Earnings
Fund. If moneys on deposit in the Construction Account at any
time shall be insufficient to transfer the amount required to be
transferred to the Excess Investment Earnings Fund, then the
Finance Director shall transfer moneys from the Bond Fund to the
Excess Investment Earnings Fund in an amount sufficient to
provide for such deficiency.
All amounts in the Excess Investment Earnings Fund,
including income earned from investment of the fund, shall be
held by the Finance Director free and clear of any Bond owners
liens and the Finance Director shall pay said amounts over to the
United States of America from time to time as the Finance
Director shall determine provided that the Finance Director shall
so pay over to the United States of America (1) not less
frequently than once each five years after the date of issuance
of the Bonds, an amount equal to 90% of the net aggregate amount
transferred to or earned in the Excess Investment Earnings Fund
during such period (and not theretofore paid to the United States
of America) and (2) not later than thirty (30) days after the
redemption of the last Bond, 100% of the aggregate amount in the
Excess Investment Earnings Fund.
The City covenants that it will make no investment or
other use of the proceeds of the Bonds at any time during the
term thereof which would cause the Bonds to be arbitrage bonds
within the meaning of Section 103 (c) of the Internal Revenue Code
of 1954, as amended (the "Code" ) , and the regulations promulgated
thereunder, and will comply with the requirements of such Section
and regulations throughout the term of the Bonds. The City
expects that there will not be any fund, account or moneys that
will be treated as gross proceeds of the Bonds other than the
Bond Fund and the Construction Account; notwithstanding the
foregoing, if at any time there are other funds, accounts or
moneys which are to be treated as gross proceeds of the Bonds
under Section 103(c) of the Code, the City shall treat such
funds, accounts and other moneys, for the purpose of rebating
Excess Investment Earnings related thereto to the United States
government, in the same manner as provided herein for gross
proceeds of the Bonds deposited to the Construction Account. The
City will not permit the amount of gross proceeds invested in any
bond year of the Bonds at a yield materially higher than the Bond
yield to exceed the limits of Section 103(c) of the Code.
15. The Council shall cause the assessments to be
levied and collected as provided by law for the benefit of the
registered owners of the Bonds. All assessments made, together
with all interest thereon and penalties for default in payment
thereof, shall be a lien in the several amounts assessed against
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each property from the date of the publication of the assessing
ordinance and shall be a first and prior lien over all other
liens excepting general tax liens. The Council will further
cause the lien of any unpaid assessment to be diligently enforced
against the property charged therewith.
16. So long as any of the Bonds remain outstanding,
the City will keep or cause to be kept by Larimer County,
Colorado (the "County" ) , true and accurate books of records and
accounts showing full and true entries covering the collection
and disposition of the assessments and any delinquencies in the
collection thereof, covering deposits and disbursements in each
of the special funds herein described, covering the payment of
the Bonds, both principal and interest, and covering
disbursements to defray the costs and expenses of the
Improvements. The City will permit inspection and examination of
all such books and notices maintained or received by the City at
any reasonable time by the Purchaser or the registered owner of
any Bond.
17 . The registered owner of any Bond shall have the
right and power for the equal benefit and protection of all
registered owners of Bonds similarly situated:
a. By mandamus or other suit, action, or
proceeding at law or in equity to enforce his rights against
the City and to require and compel the City to perform and
carry out its duties, obligations, or other commitments
under this Ordinance and under its covenants and agreements
with the registered owners of the Bonds;
b. By action or by suit in equity to require the
City to account as if it were the trustee of an express
trust;
C. By action or by suit in equity to have
appointed a receiver, which receiver may take possession of
any accounts and may collect, receive, and apply all
revenues or other moneys pledged for the payment of the
Bonds in the same manner as the City itself might do;
d. By action or by suit in equity to enjoin any
acts or things which might be unlawful or might be in
violation of the rights of the registered owners of the
Bonds; and
e. To bring suit upon the Bonds.
No right or remedy conferred by this Ordinance upon the
registered owner of any Bond or any trustee therefor is intended
to be exclusive of any other right or remedy, but each such right
D9436 17 09/11/86
or remedy is cumulative and is in addition to every other right
or remedy and may be exercised without exhausting and without
regard to any other remedy conferred by this Ordinance or by any
other law. The failure of the registered owner of any Bond so to
proceed as provided herein shall not relieve the City of any
obligation to perform or to carry out any duty, obligation, or
other commitment.
18. This Ordinance is, and shall constitute, a
legislative measure of the City, and after the Bonds are issued,
sold, and outstanding, this Ordinance shall constitute a contract
between the City and the registered owners of the Bonds, and
shall be and remain irrepealable until the Bonds and the interest
thereon shall have been fully paid, satisfied and discharged.
19. Pursuant to the Uniform Facsimile Signature of
Public Officials Act, part 1 of article 55 of title 11, Colorado
Revised Statutes, as amended, the Mayor and the City Clerk of the
City shall forthwith, but in any event prior to the delivery of
the Bonds to the Purchaser, file with the Colorado Secretary of
State their manual signatures and an impression of the seal of
the City, certified by them under oath, using a Facsimile
Signature Certificate for this purpose.
20. The officers of the City are hereby authorized and
directed to enter into such agreements and take all action
necessary or appropriate to effectuate the provisions of this
Ordinance and to comply with the requirements of law, including
without limiting the generality of the foregoing:
a. The printing of the Bonds, including the
printing upon each of the Bonds of a copy of the approving
legal opinion of Ballard, Spahr, Andrews & Ingersoll, bond
counsel, duly certified by the City Clerk; and
b. The execution of a contract for the purchase
of the Bonds and such certificates as may be required by the
Purchaser relating to the signing of the Bonds, the tenure
and identity of the City officials, if in accordance with
the facts, the absence of litigation, pending or threatened,
affecting the validity of the Bonds, the exemption of the
interest on the Bonds from federal income taxation, and
receipt of the Bond purchase price and of the Bonds; and
C. The preparation of a Preliminary Official
Statement and a final Official Statement relating to the
Bonds; and
d. The making of various statements, recitals,
certificates and warranties provided in the form of Bond set
forth in this Ordinance; and
D9436 18 09/11/86
e. The payment of the interest on the Bonds as
the same shall become due and the principal of the Bonds at
maturity or upon prior redemption without further warrant or
order.
21 . All action heretofore taken by the City and by the
officers thereof not inconsistent herewith directed toward the
creation of the District, the construction and installation of
the Improvements therein, and the authorization and sale of the
Bonds is hereby ratified, approved and confirmed.
22 . All resolutions, ordinances, or parts thereof,
taken by the City and in conflict with this Ordinance are hereby
repealed, except that this repealer shall not be construed so as
to revive any resolution, ordinance, or part thereof, heretofore
repealed.
23 . If any paragraph, clause or provision of this
Ordinance is judicially adjudged invalid or unenforceable, such
judgment shall not affect, impair or invalidate the remaining
paragraphs, clauses or provisions hereof, the intention being
that the various paragraphs, clauses or provisions hereof are
severable.
READ, AMENDED, FINALLY PASSED AS AMENDED ON SECOND
READING, AND ORDERED PUBLISHED BY NUMBER AND TITLE ONLY this 16th
day of September, 1986.
CITY OF FORT COLLINS, COLORADO
By:
(CITY) Ma
(SEAL) yrr
Attest:
I
City Clerk
D9436 19 09/11/86
ORDINANCE NO. 130, 1986
AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT
COLLINS, COLORADO, SOUTH LEMAY SPECIAL IMPROVEMENT
DISTRICT NO. 86, SPECIAL ASSESSMENT BONDS, DATED
OCTOBER 1, 1986, IN THE AGGREGATE PRINCIPAL AMOUNT OF
$2 , 530,000; PRESCRIBING THE FORM OF THE BONDS; AND
PROVIDING FOR THE PAYMENT OF THE BONDS AND THE INTEREST
THEREON.
READ, AMENDED, PASSED AS AMENDED ON SECOND READING, AND
ORDERED PUBLISHED BY NUMBER AND TITLE ONLY this 16th day of
September, 1986.
CITY OF FORT COLLINS, COLORADO
(CITY) Mayor
(SEAL)
Attest: ��}}
aQ1l2
City Clerk
The text of the foregoing Ordinance is available for
public inspection and acquisition in the office of the City
Clerk.
D9436 20 09/11/86