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HomeMy WebLinkAbout096 - 06/19/2001 - APPROPRIATING UNANTICIPATED REVENUE IN THE DDA DEBT SERVICE FUND ORDINANCE NO. 96, 2001 OF THE COUNCIL OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE AND PRIOR YEAR RESERVES IN THE DOWNTOWN DEVELOPMENT AUTHORITY DEBT SERVICE FUND WHEREAS, on April 21, 1981, the City of Fort Collins, Colorado, adopted Ordinance No. 46, 1981,establishing the Fort Collins,Colorado,Downtown Development Authority(the"DDA"); and WHEREAS, the DDA's Plan of Development was approved by the City on September 8, 1981 which established the purpose of the Authority and the types of projects in which the Authority would participate; and WHEREAS, on June 1, 1982, a special election was held pursuant to Section 31-25-807(b) of the Colorado Revised Statutes approving the issuance by the City of up to $25,000,000 in tax increment obligations to finance certain projects of the DDA; and WHEREAS, Ordinance No. 36, 1992, authorized the issuance of Downtown Development Authority Tax Increment Revenue Refunding Bonds, Series 1992, dated March 15, 1992, in the aggregate principal amount of$11,380,000 (the "1992 Bonds"); and WHEREAS,the 1992 Bonds were issued,and the proceeds ofthe 1992 Bonds were managed and used in a manner consistent with the terms of Ordinance No. 36, 1992; and WHEREAS, on April 17, 2001, Council adopted Ordinance No. 50, 2001, which refimded Downtown Development Authority Tax Increment Revenue Refunding Bonds Series 2001 in the amount of$3,640,000 for the purpose of refunding a portion of the 1992 Bonds; and WHEREAS, the refunding of the bonds yielded additional proceeds of $3,677,678 and accrued interest of$12,133; and WHEREAS, some of the costs of the refinancing were not known at the time of the second reading and therefore, staff was unable to have Council appropriate the exact amounts needed for the refunding costs; and WHEREAS,to accomplish the objectives ofthe refunding,the City needs to make additional appropriations for the Series 2001 DDA Refunding Bonds; and WHEREAS, the annual appropriation ordinance for 2001 included $1,303,483 for debt service payments; and WHEREAS,the refunding used$1,227,306 of reserves which had not been appropriated in the annual appropriation ordinance for 2001; and WHEREAS,in addition to the reserves in the amount of$1,227,306,the DDA Debt Service Fund needs an additional appropriation of$3,476,777 to cover payments to the escrow that will pay off the 1992 Bonds; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year,provided that the total of such supplemental appropriations,in combination with all previous appropriations for that fiscal year,do not exceed the then current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, Article V, Section 9, of the City Charter also permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, it is the desire of the Council to appropriate the sum of$1,227,306 from prior year reserves in the Downtown Development Authority Debt Service Fund and $3,476,777 from unanticipated revenue in the form of bond proceeds in the Downtown Development Authority Debt Service Fund to be used to cover payments to the escrow that will pay off the 1992 Bonds. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from prior year reserves in the Downtown Development Authority Debt Service Fund the sum of ONE MILLION TWO HUNDRED TWENTY-SEVEN THOUSAND THREE HUNDRED SIX DOLLARS ($1,227,306) to be used to cover the costs of the refinancing. Section 2. That there is hereby appropriated for expenditure from unanticipated revenue in the Downtown Development Authority Debt Service Fund the sum of THREE MILLION FOUR HUNDRED SEVENTY-SIX THOUSAND SEVEN HUNDRED SEVENTY-SEVEN DOLLARS ($3,476,777)to be used to cover the costs of the refinancing. Section 3. That all otherwise authorized actions by officers of the City in connection with the refunding a portion of the DDA Tax Increment Revenue Refunding Bonds,Series 1992,through the issuance of City of Fort Collins Downtown Development Authority Tax Increment Revenue Refunding Bonds Series 2001, as approved by the Council in Ordinance No. 50, 2001, are hereby ratified and approved,notwithstanding any irregularities in related appropriations provided that the same are corrected by the adoption of this Ordinance. Introduced,considered favorably on first reading,and ordered published this 5th day of June, A.D. 2001, and to be presented for final passage on the 19th day of June,A.D. 2001. Mayor ATTEST: City Clerk Passed and adopted on final reading this 19th day of June,A.D. 2001. tc'I'L . Mayor =r .r TTEST: 'qul k . City Clerk ,