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HomeMy WebLinkAbout136 - 10/07/1986 - AUTHORIZING THE ISSUANCE OF HORSETOOTH ROAD SPECIAL IMPROVEMENT DISTRICT NO. 83, SPECIAL ASSESSMENT ORDINANCE NO. 1369 1986 AN ORDINANCE AUTHORIZING THE ISSUANCE OF A CITY OF FORT COLLINS, COLORADO, HORSETOOTH ROAD SPECIAL IMPROVEMENT DISTRICT NO. 83 , SPECIAL ASSESSMENT BONDS, DATED NOVEMBER 1, 1986, IN THE PRINCIPAL AMOUNT OF $610,000; 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, pursuant to Ordinance No. 73, 1984, which was introduced, considered favorably on first reading and ordered published by the Council on June 5, 1984, and passed and adopted on final reading by the Council on August 21, 1984 (the "Formation Ordinance" ) , created Horsetooth Road Special Improvement District No. 83 (the "District" ) and authorized the acquisition, construction and installation of street, curb and gutter, sidewalk, storm drainage and landscaping 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 have been acquired, constructed and installed as set forth in the Formation Ordinance and more fully set forth in the map and the plans and specifications submitted by the City' s Director of Public Work for the District and were finally accepted and approved by Resolution 84-118, adopted by the City Council on August 21, 1984, the Formation Ordinance, Resolution 84-118 and the related map and plans and specifications for the District being hereby incorporated herein by reference; and WHEREAS, the Improvements are substantially complete, the costs of acquiring, constructing and installing the Improvements having been paid from City funds temporarily available for the purpose, and necessary to be reimbursed to the City; and WHEREAS. the acquisition, construction and installation of the Improvements in the District have and 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 to be assessed against the property within the District will not exceed $610,000 and that special assessment bonds of the City for the District should be issued in the amount of $610,000; and D7550 2 09/10/86 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 Fort Collins, 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. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO, AS FOLLOWS: 1 . In order to reimburse the City for the payment of 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 Horsetooth Road Special Improvement District No. 83, Special Assessment Bonds, dated November 1, 1986, in the aggregate principal amount of $610,000 (the "Bonds" ) consisting of 13 fully registered bonds numbered consecutively from 1 to 13, inclusive, in the denomination of $40,000 each and 2 fully registered bonds numbered consecutively 14 and 15, inclusive, in the denomination of $45,000 each. The principal balance of each of the Bonds (the "Principal Balance" ) at any time and from time to time shall be the stated principal amount thereof less the aggregate amount of installments paid thereon by the City representing redemptions or prepayments of principal ( "Principal Installments" ) in accordance with the terms hereof and the stated terms of the Bonds. Principal Installments shall be in the amount of $5,000 or any integral multiple thereof. The Bonds shall mature on November 1, 2001, and shall bear interest as herein set forth. 2 . The Principal Balance of each of the Bonds from time to time shall bear interest from November 1, 1986, to November 1, 2001, except if redeemed or prepaid prior thereto, at the following per annum rates: D7550 3 09/10/86 Per Annum Bonds Numbered Interest Rates 1 6. 15% 2 6. 65 3 7.05 4 7.35 5 7. 65 6 7.95 7 8. 15 8 8.35 9 8.55 10 8. 75 11 8. 85 12 8.95 13 9 .05 14 9 . 15 15 9 .20 Interest on the Principal Balance of each of the Bonds shall be payable May 1, 1987, and semiannually thereafter on the 1st day of May and the lot day of November of each year. If upon presentation at maturity the remaining Principal Balance of the Bonds is not paid as provided herein, interest shall continue thereon at the same interest rate until the Principal Balance of each of the Bonds is paid in full. 3 . The maximum net effective interest rate for the Bonds is 10%. The actual net effective interest rate on the Bonds is 8.87%. 4. The principal of and interest on the Bonds shall be payable in lawful money of the United States of America to the registered owners of the Bonds by the Finance Director of the City, who is hereby designated the paying agent for the Bonds. The Principal Balance of each of the Bonds remaining at maturity or upon prior redemption or prepayment in full and the final interest payment due on the Principal Balance of each of the Bonds at such time shall be paid to the registered owners of the Bonds upon presentation and surrender of the Bond at maturity or upon prior redemption or prepayment in full . Except as heretofore and hereinafter provided, the interest and any Principal Installment for any Bond other than the final Principal Installment for any Bond paid at maturity or upon prior redemption or prepayment in full shall be paid to the registered owner of each Bond determined as of the close of business on the regular record date, which, in the case of an interest payment, shall be the fifteenth (15th) day of the calendar month next preceding the interest payment date, and, in the case of the payment of a Principal Installment, shall be the fifteenth (15th) day next preceding the date of payment of such Principal D7550 4 09/10/86 Installment, irrespective of any transfer of ownership of the Bond subsequent to the regular record date and prior to such interest payment date or Principal Installment date as the case may be, 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 each 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 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 the registered owner of each Bond 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 Principal Balance of each Bond shall be subject to redemption or prepayment of principal prior to maturity on each November 1 in Principal Installments of $5,000 or any integral multiple thereof at a price equal to the principal portion of each Bond to be so redeemed or prepaid plus accrued interest on the outstanding Principal Balance of such Bond or Bonds on such redemption or prepayment date, with no premium, as follows: from the moneys deposited in the Horsetooth Road Special Improvement District No. 83, Special Assessment Bond, Bond and Interest Fund (the "Bond Fund" ) created in Section 11 hereof, the Finance Director shall call in and pay an aggregate principal amount of Principal Installments on the Bonds outstanding which is approximately equal to all amounts deposited to the Bond Fund on or before each September 1 less the amount necessary to pay interest on the outstanding Bonds due on the D7550 5 09/10/86 next subsequent interest payment date and which will provide for the payment of Principal Installments on the Bonds in $5,000 denominations. Notice of any proposed redemption or prepayment of any portion of the Principal Balance of any Bond shall be given by the Finance Director by mailing a copy thereof by first-class, postage prepaid mail, at least thirty (30) days and not more than sixty (60) days prior to the designated redemption or prepayment date to the registered owners of each of the Bonds being so redeemed or prepaid in whole or in part at their addresses as the same shall last appear on the registration books of the City. Said notice shall specify the number of each Bond to be so prepaid or redeemed in any Principal Installment amount and the amount of such Principal Installment to be so prepaid or redeemed, i .e. the amount of the related Principal Installment for each Bond identified by its number. Bonds or any portion of such Bonds so called for redemption or prepayment shall be redeemed or prepaid in regular numerical order. If any amount of the Principal Balance of any Bond shall have been duly called for redemption or prepayment, then such amounts (the Principal Installment amount) shall become due and payable upon such redemption or prepayment date, and from and after such date interest shall cease to accrue thereon. For the purposes of this Section, each Principal Installment paid to reduce the Principal Balance of any Bond is comparable to the payment of "a suitable number of district bonds" as described in Section 16-29 of the Code in the case in which a series of special assessment bonds in $5,000 denominations are issued by the City to finance the cost of any improvements in a City special improvement district. 6. The Bonds shall be executed in the name and on behalf of the City with the manual signature of the Mayor of the City, shall bear the seal of the City, shall be attested by the manual signature of the City Clerk of the City, and shall be countersigned with the manual signature of the Finance Director of the City. Should any officer whose signature appears on the Bonds cease to be such officer before delivery of the Bonds to the Purchaser, such signature shall nevertheless be valid and sufficient for all purposes. 7. Upon execution and prior to 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 D7550 6 09/10/86 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, 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 or prepayment as herein provided nor during the fifteen (15) days next preceding such mailing of any notice of redemption or prepayment. 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 any 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 the 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 Bond and the registration panel and schedule of Principal Installments pertaining thereto shall be in substantially the following form: D7550 7 09/10/86 [Form of Bond] UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF LARIMER CITY OF FORT COLLINS HORSETOOTH ROAD SPECIAL IMPROVEMENT DISTRICT NO. 83 SPECIAL ASSESSMENT BOND No. R-1 $[40,000] [45,000] 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 [FORTY] [FORTY-FIVE] THOUSAND DOLLARS or so much thereof as remains unpaid from time to time (the "Principal Balance" ) in lawful money of the United States of America, on the 1st day of November, , and likewise to pay interest on the Principal Balance hereof from the date hereof to the maturity date hereof, at the rate of and hundredths per cent (_.�) per annum, payable May 1, 1987, and semiannually thereafter on the 1st day of May and the 1st day of November of each year. If upon presentation at maturity the remaining Principal Balance of this Bond is not paid as provided herein, interest shall continue on the Principal Balance at the same interest rate until the Principal Balance 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 Balance of this Bond remaining at maturity or upon final redemption or prepayment in full and the final interest payment due on this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon final redemption or prepayment in full . Except as heretofore and hereinafter provided, the interest and any installment paid hereon by the City representing redemptions or prepayment of principal on this Bond ( "Principal Installments" ) other than the final Principal Installment paid at maturity or upon final redemption or prepayment in full are payable to the registered owner hereof determined as of the close of business on the regular record date, which, in the case of an interest payment, shall be the fifteenth ( 15th) day of the calendar month next preceding the interest payment date, and, in the case of the payment of a D7550 8 09/10/86 Principal Installment shall be the fifteenth ( 15th) day next preceding the date of payment of such Principal Installment irrespective of any transfer of ownership hereof subsequent to the regular record date and prior to such interest payment date or Principal Installment as the case may be, 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 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 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 registered owner of this Bond 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 Principal Balance of the Bonds of the issue are subject to redemption or prepayment prior to maturity on each November 1 in Principal Installments of $5, 000 or any integral multiple thereof at a price equal to the principal portion of this Bond to be so redeemed or prepaid plus accrued interest on the outstanding Principal Balance of this Bond on such redemption or prepayment date, with no premium, as follows: from the moneys deposited in the Horsetooth Road Special Improvement District No. 83, Special Assessment Bond, Bond and Interest Fund hereinafter described, the Finance Director of the City or his successor is to call in and pay an aggregate principal amount of Principal Installments on the Bonds outstanding which is approximately equal to all amounts deposited to the Bond Fund on or before each September 1 less the amount necessary to pay interest on the outstanding Bonds due on the next subsequent interest payment date and which will provide for the payment of Principal Installments on the Bonds in $5,000 denominations as set forth in the Ordinance authorizing the issuance of this Bond. Notice of any proposed redemption or prepayment of any portion of the Principal Balance of any Bond is to be given by the Finance Director by mailing a copy thereof by first-class, postage prepaid mail, at least thirty (30) days and not more than sixty (60) days prior to the designated redemption or prepayment date, to the registered owners of each of the Bonds being so redeemed or prepaid in whole or in part at their addresses as the same shall last appear on the registration books of the City. If any amount of the Principal Balance of this Bond shall have been duly called for redemption or prepayment, such amount is to become due and payable upon such redemption or prepayment date, and from and after such date interest shall cease to accrue thereon. D7550 9 09/10/86 This Bond is one of a series of special assessment bonds in the aggregate principal amount of $610,000 issued for the purpose of immediately reimbursing the City for the costs of acquiring, constructing, installing and financing street, curb and gutter, sidewalk, storm drainage and landscaping improvements in and for Horsetooth Road Special Improvement District No. 83 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 Horsetooth Road Special Improvement District No. 83, Special Assessment Bond, Bond and Interest Fund, into which there is initially to be deposited the accrued interest on the Bonds and into which there shall thereafter be deposited moneys collected on account of assessments hereafter to be levied against the property within Horsetooth Road Special Improvement District No. 83 and specially benefited by the acquisition, construction and installation of the improvements therein. 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 the principal of 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 aggregate principal amount of the Bonds has been paid and for any reason the remaining assessments are not paid in time to redeem or prepay the remaining Principal Balance of all of the 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 Principal Balance of all of the 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 property specially benefited and deposit the same into the Bond and Interest Fund and that it will diligently enforce the lien of D7550 10 09/10/86 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. 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 D7550 11 09/10/86 required to transfer ownership of this Bond during the fifteen (15) days next preceding any interest payment date nor to transfer this Bond after mailing any notice of redemption or prepayment as herein provided nor during the fifteen (15) days next preceding such mailing of any notice of redemption or prepayment. 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. This Bond has been issued and delivered without registration under the Securities Act of 1933, as amended, or other state, Federal or other securities laws, and without distribution of a prospectus or other comprehensive offering document, in reliance upon the availability of an appropriate exemption from registration otherwise required and representations of the initial registered owner of this Bond that this Bond is being acquired solely for investment and not with a view to distribution or resale. This Bond shall not be sold, pledged, hypothecated, donated or otherwise transferred, including the sale of a participation interest herein, whether or not for consideration, by the initial registered owner or any other registered owner except as permitted by law and subject to all applicable regulations of the Securities Act of 1933, as amended. 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 manual signature of the Mayor of the City, to be sealed with the seal of the City, to be attested by the manual signature of the City Clerk of the City, and to be countersigned with the manual signature of the Finance Director of the City, all as of the 15th day of October, 1986. CITY OF FORT COLLINS, COLORADO (CITY) By: (Manual Signature) (SEAL) Mayor Attest: Countersigned: (Manual Signature) (Manual Signature) City Clerk Finance Director D7550 12 09/10/86 (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 First Interstate Bank of Fort Collins, N.A. P. 0. Box 578 Fort Collins, Colorado 80522 November 1986 84-020-5012 D7550 13 09/10/86 SCHEDULE OF PRINCIPAL INSTALLMENTS Upon the payment of any Principal Installment the within Bond shall be marked with the appropriate endorsement on the table below. Any Principal Installment made by the City on the Bond shall, whether or not endorsed below, fully discharge the City" s obligations under the Bond to the extent of the payment of such Principal Installments. Any prospective purchaser of this Bond should verify with the Finance Director of the City the Principal Balance of this Bond prior to the purchase thereof. Signatures of Date of Authorized Payment of Amount of Remaining Representative Principal Principal Principal of Registered Installment Installment Balance Owner [End of Form of Bond] D7550 14 09/10/86 (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 9 , , or its successor, as registrar and 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. D7550 15 09/10/86 10. The proceeds of the Bonds, excluding accrued interest, shall be deposited into the Capital Projects Fund of the City (the "Capital Projects Fund" ) , and immediately upon receipt thereof said proceeds shall be used to reimburse the City for the costs and expenses of acquiring, constructing and installing the Improvements. Pursuant to Ordinance No. 76, 1984, adopted on final reading by the Council on August 21, 1984, the Council has appropriated from unanticipated Bond proceeds in the Capital Projects Fund the sum of $581, 852 for the acquisition, construction and installation of the Improvements and associated costs. There is hereby additionally appropriated the sum of $28, 148 from the Bond proceeds in the Capital Projects Fund in order to provide immediate reimbursement to the City for the payment of the costs of acquisition, construction and installation of the Improvements and associated costs. Accrued interest shall be deposited into the Bond Fund and applied for the payment of interest first due on the Bond. 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 and into which there shall thereafter be deposited 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. The moneys in the Bond Fund shall be used for the purpose of paying the Principal Balance 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 there is a deficiency in the Bond Fund for the payment of principal or interest on the Bond, 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 aggregate principal amount of the Bonds has been paid and for any reason the remaining assessments are not paid in time to redeem or prepay the remaining Principal Balance of all of the Bonds in full 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 Principal Balance of all of the Bonds when due and the interest thereon, levy additional ad valorem taxes therefor, and reimburse itself by collecting the unpaid assessments due. D7550 16 09/10/86 13 . The Bonds, when executed and registered as provided herein and in the Code, shall be delivered by any one of the officers of 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. The Purchaser shall not be in any way responsible for the application of the proceeds of the Bonds by the City or any of its officers. 14. 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 does not expect to have any gross proceeds from the Bonds which will be subject to required arbitrage rebate to the United States government under Section 103(c) of the Code. If, however, the City does, for any reason, have gross proceeds from the Bonds which will be subject to such arbitrage rebate, the Finance Director of the City will determine the amount of the required arbitrage rebate, if any, payable to the United States government under Section 103(c) of the Code and will make any required payments beginning not later than 30 days after the end of the fifth bond year of the Bonds, regardless of whether there are any remaining proceeds or other funds attributable to the Bonds that are available for the purpose. In such case the City will not permit the amount of gross proceeds invested in any bond year at a yield materially higher than the Bond yield to exceed the limits of Section 103(c) . 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 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 portion of any Bond remains 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, D7550 17 09/10/86 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: 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 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. D7550 18 09/10/86 19. 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 preparation of the Bonds, and the delivery of the legal opinion of Ballard, Spahr, Andrews & Ingersoll, bond counsel with respect to the Bonds, duly certified by the City Clerk; and b. The execution of 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 making of various statements, recitals, certificates and warranties provided in the form of Bond set forth in this Ordinance; and d. The payment of the interest on the Bonds as the same shall become due and the Principal Balance of the Bonds at maturity or upon prior redemption or prepayment without further warrant or order. 20. 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. 21. 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. 22 . 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. D7550 19 09/10/86 INTRODUCED, READ, APPROVED ON FIRST READING, AND ORDERED PUBLISHED BY NUMBER AND TITLE ONLY this 16th day of September, 1986. CITY OF FORT COLLINS, COLORADO (CITY) By: (SEAL) Mayor Att st: n City Clerk IS The foregoing Ordinance will be presented for final passage at a regular meeting of the Council, to be held at Council Chambers, City Hall, 300 West LaPorte Avenue, Fort Collins, Colorado, on Tuesday, the 7th day of October, 1986, at 6: 30 p.m. Passed and adopted on final reading this 7th day of October, A. D. 1986. I Mayor */"o ATTEST: City Clerk D7550 20 09/10/86