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HomeMy WebLinkAbout118 - 10/06/1981 - AUTHORIZING THE ISSUANCE OF PARKLAND FEE REVENUE BONDS IN THE PRINCIPAL AMOUNT OF $215,000, FOR THE 4 ORDINANCE NO 118 , 1981 AN ORDINANCE AUTHORIZING THE ISSUANCE OF PARKLAND FEE REVENUE BONDS OF THE CITY OF FORT COLLINS, COLORADO, IN THE PRINCIPAL AMOUNT OF $215,000, FOR THE PURPOSE OF ACQUIRING PARKLAND WITHIN THE CITY, PRESCRIBING THE FORM OF SAID BONDS AND INTEREST COUPONS, PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SAID BONDS FROM THE REVENUES OF THE PARKLAND FEE, AND PROVIDING OTHER COVENANTS AND DETAILS IN CONNECTION THEREWITH WHEREAS, the City Council of Fort Collins has determined that it is necessary to acquire parkland within the City as more particularly des- cribed on Exhibit "A" attached hereto and by this reference made a part hereof, and WHEREAS, the estimated total cost of the project and reserve account is approximately $215,000, and there are not now sufficient funds available for the payment of the total cost of the project and other projects bud- geted for 1981, and WHEREAS, pursuant to Ordinance No 38, 1968, as amended, City has levied and imposed a municipal parkland fee as defined and limited in said ordinances, and WHEREAS, the City Charter in Article V, Part II, Section 20 4 provides that the City may issue revenue bonds as follows "Section 20 4 Revenue securities The City, by Council action and without an elec- tion may issue securities made payable solely from revenue derived from the operation of the project or capital improvement acquired with the securities ' proceeds, or from other projects or improvements, or from the proceeds of any sales tax, use tax or other excise tax, or solely from any source or sources or any combination thereof other than ad valorem taxes of the City" and, WHEREAS, the City Council has determined at this time to authorize the issuance of Parkland Fee Revenue Bonds in the principal amount of $215,000, for the purposes set forth above as provided by Article V, Part II, Section 20 4, both the principal of and interest on said bonds to be payable solely from the proceeds of the Parkland Fee, and WHEREAS, in accordance with the City Charter, the City Council has determined that it is in the best interest of the City that the Parkland Fee Revenue Bonds of the City in the principal amount of $215,000, should be issued and sold to Boettcher and Company, Denver, Colorado, in accor- dance with Resolution #81-118, of August 18, 1981, and WHEREAS, it is necessary to provide for the issuance of said bonds, and the form and payment thereof, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Section 1 Authorization That for the purpose of acquiring parkland within the City of Fort Collins, there are hereby authorized Parkland Fee Revenue Bonds (the Bonds) of the City of Fort Collins, in the principal amount of $215,000 Both the principal thereof and the interest thereon shall be payable solely and only out of the proceeds of the Parkland Fee authorized by Ordinance 38, 1968, finally passed and adopted on September 25, 1968, as amended, as more particularly set forth in this Ordinance The bonds shall not be or constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation upon the incurring of indebtedness and neither the faith and credit nor the taxing power of the City is pledged to the payment of the principal of and inter- est on the bonds and the City shall not be obligated to pay the bonds or the interest thereon except from the Parkland Fees That in accordance with the provisions of Article V, Part II, Section 20 4 of the City Charter, revenue bonds payable in whole or in part from the available proceeds of Parkland Fees may be issued without the require- ment of an election on the question of issuing bonds Section 2 Bond Details That the bonds shall be dated October 1, 1981, consisting of 43 bonds in the denomination of $5,000 each, numbered 1 to 43, inclusive, shall be payable to bearer, ana bear interest according to interest coupons attached thereto, from date to maturity, payable on April 1, 1982, and semi-annually thereafter on the 1st day of April and the 1st day of October each year, and mature serially on October 1, as follows Amount Maturity Interest Rate $40,000 1982 10 60% $40,000 1983 10 60% $45,000 1984 10 607 $45,000 1985 10 60% $45,000 1986 10 60% Bonds of this issue shall not be redeemable in advance of their respective maturity dates The net effective interest rate of this issue of bonds is 10 60% per annum The principal of and interest on said bonds shall be payable at the First Interstate Bank of Fort Collins, N A ( "paying agent") in Fort Collins, Colorado -L- Section 3 Form and Execution of Bonds and Interest Coupons The bonds shall be signed with the facsimile signature of the Mayor of the City, attested by the manual signature of the City Clerk, countersigned with the facsimile signature of the Director of Finance, and sealed with a facsimile of the official seal of the City, and the interest coupons to be signed with the facsimile signature of the Director of Finance When issued as aforesaid as part of said bonds, such interest coupons shall be the binding obligations of the City according to their import Should any officer whose manual or facsimile signature appears on said bonds or the coupons attached thereto 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 The Bonds and the interest coupons attached thereto shall be in substantially the following form (Form of Bond) UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF LARIMER LITY OF FORT COLLINS PARKLAND FEE REVENUE BOND SERIES 1981 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 bearer hereof the principal sum of FIVE THOUSAND DOLLARS in lawful money of the United States of America, on the 1st day of October, 198 , with interest thereon from date to maturity according to interest coupons attached hereto, at the rate of Ten and Sixty-Hundredths per centum (10 60%) per annum, payable on April 1, 1981, and semi-annually thereafter on the 1st day of April and the 1st day of October each year, all such principal and interest being payable at the First Interstate Bank of Fort Collins, N A , in Fort Collins, Colorado, upon presentation and surrender of the attached coupons and this Bond as they severally become due Bonds of this issue are not redeemable prior to their respective maturity dates -3- This Bond is issued by the City of Fort Collins, Colorado, for the purpose of acquiring parkland within the City, under the authority of and in full conformity with the Constitution and Laws of the State of Colorado, the Charter of said City, and pursuant to Ordinance No of the City duly passed and adopted prior to the issuance of this Bond Both the principal of this Bond and the interest hereon are payable solely from Parkland Fee Revenues which portion are paid into the Parkland Fee Principal and Interest Account which constitutes a segregated account for the payment of this Bond, and constitutes a first and prior lien on said Account (although not necessarily an exclusive first lien) , all as more particularly set forth in the ordinance authorizing the issuance of this Bond This Bond does not constitute a debt of the City of Fort Collins within the meaning of any constitutional , statutory or charter limitation or provisions, and shall not be considered or held to be a general obligation of the City The holder of this Bond may not look to any general or other fund of the City for the payment of the principal of or interest on this obligation except the Account referred to above It is hereby certified, recited and warranted that for the payment of this bond, the City of Fort Collins has created and will maintain said Account and will deposit therein, out of the revenues of the Parkland Fund, the amounts and revenues specified in said ordinance, and out of said Account, and as an irrevocable charge thereon, will pay this bond and the interest thereon, in the manner provided by said ordinance This bond and the interest coupons attached hereto are negotiable and shall be transferable by delivery It is further recited and certified that all requirements of law and all conditions precedent have been fully complied with by the proper officers of the City in the issuance of this bond IN TESTIMONY WHEREOF, the City of Fort Collins, Colorado, has caused this bond to be signed with the facsimile signature of its Mayor, sealed with a facsimile of the seal of the City, attested by the manual signature of the City Clerk, countersigned with the facsimile signature of the Director of Finance, and the interest coupons attached hereto to be signed with the facsimile signature of the Director of Finance, as of the _ day of THE CITY OF FORT COLLINS, COLORADO ( Facsimile Signature) By (do not sign) Mayor -4- (FACSIMILE) (SEAL) ATTEST COUNTERSIGNED (Manual Signature) (Facsimile Signature) (Do not sign) (Do not sign) City Clerk Director of Finance (Form of Interest Coupon) Bond No Coupon No $ On the 1st day of April/October, 19 the City of Fort Collins, in the County of Larimer, and the State of Colorado, will pay to the bearer hereof the amount shown hereon, in lawful money of the United States of America, at the First Interstate Bank of Fort Collins, N A , in Fort Collins, Colorado, solely out of the Account referred to in the bond to which this coupon is attached, but not otherwise, being interest then due on its Parkland Fee Revenue Bond, dated October 1, 1981 (Facsimile Signature) (Do not sign) Director of Finance -5- Section 4 Disposition of Bond Proceeds The bonds shall be issued and sold for the purpose of acquiring parkland within the City Neither the purchaser of the bonds nor the subsequent holder of any of them shall be responsible for the application or disposal by the City or any of its officers of the funds derived from the sale thereof The issuance of said bonds by the City shall constitute a warranty by and on behalf of the City for the benefit of each and every holder of said bonds, that said bonds have been issued for a valuable consideration in full conformity with the law All or any portion of the bond proceeds may be temporarily invested, or reinvested, pending such use, in securities or obligations which are lawful investments for such municipalities in the State of Colorado It is hereby covenanted and agreed by the City that the temporary investment or reinvestment of the bond proceeds, or any portion thereof, shall be of such nature and extent, and for such period, that the bonds shall not be or become arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, and pertinent regulations, and such proceeds, if so invested or reinvested, shall be subject to the limitations and restrictions of said Section 103(c) , and pertinent regulations as the same now exist or may later be amended Section 5 Parkland Fee By Ordinance No 38, 1968, dated September 9, 1968, as amended, the City Council has levied and imposed a Parkland Fee Section 82-3 of Chapter 82 of the Code of the City of Fort Collins provides the following 82-3 Collection of fee Hereafter, no original permanent connection for utility service shall be permitted by the city for any dwelling unit outside or inside the limits of the City of Fort Collins until a fee of five hundred dollars ($500) per dwelling unit connected is paid to the Director of Finance of the City of Fort Collins All such payments shall be deposited by the Director of Finance in the fund created by this chapter Only one (1) fee of five hundred dollars ($500) shall be charged for any dwelling unit, and no additional fee for acquisition and development of parklands shall be charged for additional utility connections to the same dwelling unit In the event that any structure already connected to a city utility is remodeled so that the number of dwelling units within such structure is increased, an additional fee of five hundred dollars ($500) for each additional unit added in the structure shall be payable by the property owner and collected before the building permit for such remodeling is issued -6- Section 6 Payment of Principal and Interest and Establishment of Special Accounts The City hereby covenants that as long as any of these bonds shall be outstanding all revenues from the Parkland Fee as receipted by the City, shall be set aside and credited immediately, to a special separate fund designated as the "City of Fort Collins, Colorado, Parkland Fund" This fund, as long as any of these bonds shall be outstanding, shall be accumulated and administered, and the moneys on deposit therein shall be applied, in the following order of priority (1) First, the City shall deposit in a special separate fund hereby created as a restricted account designated as the "Parkland Fee Principal and Interest Account" the following the interest accrued on the Bonds from their date of issue to the date of delivery thereof to the Purchaser, to apply to the payment of interest on the Bonds as the sane becomes due after their delivery, and monthly deposits, beginning October 1, 1981, one-sixth (1/6) of the aggregate amount of the next maturing installment of interest on the Bonds and Additional Parity Bonds and any other Parity Securities then Outstanding and, one-twelfth (1/12) of the aggregate amount of the next maturing installment of principal of the Bonds The City Finance Director is hereby authorized and directed to with- draw from the Parkland Fee Principal and Interest Account and to the extent necessary to prevent a default in the payment of either principal of or interest on the bonds from the Parkland Fee Reserve Fund sums sufficient to pay the principal of and interest on the bonds and the fees and expenses of the paying agent as and when the same become due and to forward such sums to the paying agent not less than three days prior to dates when such principal , interest, fees, and expenses will become due (2) Second, the City shall deposit in a special separate fund hereby created as a restricted account designated as the "Parkland Fee Reserve Account", forthwith upon receipt of the proceeds of the Bonds, the sum of $50,000, as a continuing minimum reserve requirement to meet possible deficiencies in the Principal and Interest Account No payment need be made into the Reserve Account so long as the moneys therein shall equal not less than $50,000 In the event that the amount of the Reserve Account falls below the minimum amount required to be maintained therein, then the City will credit to the Reserve Account that sum of money needed from all legally available funds to accumulate or reaccumulate the amount therein so that at all times the amount of the Reserve Account equals said minimum amount The moneys in the Reserve Account shall be set aside, accumulated, and, if necessary, reaccumulated as provided therein, from tirre to time, and maintained as a continuing reserve to be used only to prevent defi- ciencies in payment of the debt service requirements of the Bonds (3) Third, the City shall deposit monthly, amounts sufficient to pay principal and interest on any subordinate bonds payable from the Parkland Fee -7- (4) Fourth, the City may use the balance of funds for any legal purpose for which the Parkland Fee was established The owners and holders of the Revenue Bonds authorized herein shall have a first and prior lien on said accounts The obligations evidenced by said Parkland Fee Revenue Bonds shall not constitute a lien on the real property or the improvements, or any other property of the City of Fort Collins, but shall constitute a lien only on the amounts segregated in said accounts as provided in this Ordinance Section 7 Covenants of the City The City hereby irrevocably covenants and agrees with each and every holder of the Parkland Fee Revenue Bonds issued under the provisions of this Ordinance, that so long as any of said bonds remain outstanding (1) The City Council will not repeal Ordinance No 38, 1968, as amended, and that it will not amend Chapter 82 of the Code of the City of Fort Collins by decreasing the Parkland Fee, or in any way which would adversely affect the amount of Parkland Fund revenues which would otherwise be collected, except that the City Council reserves the right to amend §82-3 of the City Code to exclude from collection of such Parkland Fees those dwelling units which are not located inside the City limits of the City of Fort Collins or within the Urban Growth area of the City of Fort Collins as currently defined in the adopted Intergovernmental Agreement between the City of Fort Collins and Larimer County establishing the Fort Collins Urban Growth Area (2) It will administer, enforce and collect or cause to be adminis- tered, enforced and collected, the Parkland Fee authorized by said Chapter 82, and shall take such necessary action to collect delinquent payments as shall be authorized by Chapter 82 in accordance with law (3) It will keep such books and records showing the proceeds of the Parkland Fee in which complete entries shall be made in accordance with standard principles of accounting, and any owner or holder of any of the bonds authorized herein shall have the right at all reasonable times to inspect the records and accounts relating to the collection and receipts of such Parkland Fees It will , at least once each year, cause an audit of the records relating to the collection and receipts of the Parkland Fee revenues, and upon request, make available the report of the auditor or accountant, to any holder of such bonds, and shall mail a copy of the report to the original purchaser of the bonds Such audit may be made part of and included with in the general audit of the City, and made at the same time as the general audit Section 8 Additional Municipal Bonds The City hereby covenants and agrees that so long as any of the bonds remain outstanding and unpaid, the City will not issue any additional bonds or other obligations payable -8- out of the revenues derived from its Parkland Fees or any part thereof which are superior to the bonds The City further covenants and agrees that so long as any of the bonds remain outstanding and unpaid, the City will not issue any additional bonds or other obligations payable out of the revenues of its Parkland Fee or any part thereof which stand on a parity or equality with the bonds unless all of the following conditions are met a The City shall not be in default in the payment of principal of or interest on the bonds b The annual revenues derived by the City from its Parkland Fees for the fiscal year immediately preceding the issuance of additional bonds shall have been not less than 125% of the average amount required to be paid out of said revenues in any succeeding fiscal year on account of both principal and interest becoming due with respect to all revenue obligations of the City payable from the revenues from the Parkland Fee including the additional bonds proposed to be issued Additional revenue bonds of the City issued under the conditions hereinbefore in this section set forth shall stand on a parity with the bonds and shall enjoy complete equality or lien on in claim against the revenues from the City's Parkland Fee and the City may make equal provision for paying said bonds and the interest thereon out of the Parkland Fund and may likewise provide for the creation of reasonable principal and interest accounts and bond reserve accounts for the payment of such additional bonds and the interest thereon out of monies in the Parkland Fund Nothing in this section contained shall prohibit or restrict the right of the City to issue additional revenue bonds or other revenue obligations for the purpose of extending, improving, enlarging, repairing, or altering the City's park system and to provide that the principal of and interest on said revenue bonds or obligations shall be payable out of the revenues from the City' s Parkland Fee provided at the time of the issuance of such additional revenue bonds or obligations, the City shall not be in default in the performance of any covenant or agreement contained in this ordinance and provided further that such additional revenue bonds or obligations shall be ,junior and subordinate to the bonds so that if at any time the City shall be in default in paying either interest on or principal of the bonds or if the City shall be in default in making any payments required to be made by it, the City shall make no payments of either principal of or interest on said ,junior and subordinate revenue bonds or obligations until said default or defaults be cured In the event of the issuance of any such ,junior and subordinate revenue bonds or obligations, the City, subject to the provisions aforesaid, may make provision for paying the principal of and interest on said revenue bonds or obligations out of monies in the Parkland Fund Section 9 Acceleration of Maturity in Event of Default The City covenants and agrees that i it sha a au t in the payment o the princi- pal of or interest on any of the bonds as the same shall be come due and such default shall continue for a period of thirty (30) days or if the City -9- or its governing body or any of its officers, agents, or employees thereof, shall fail or refuse to comply with any of the provisions of the Constitu- tion or applicable statutes of the State of Colorado, or the laws or ordinances of the City, or of this ordinance, then at any time thereafter and while such default shall continue, the holders of 25% in principal amount of the bonds then outstanding may by written notice to the City filed in the office of the City Clerk or delivered in person to said City Clerk, declare the principal of all bonds then outstanding to be due and payable immediately and upon any such declaration given as aforesaid, all of said bonds shall become and be immediately due and payable, anything in this ordinance or in the bonds contained to the contrary notwithstanding This provision, however, is subject to the condition that if at any time after the principal of said outstanding bonds shall have been so declared to be due and payable, all arrears of interest upon all of said bonds except interest accrued but not yet due on such bonds and all arrears of principal upon all of said bonds shall have been paid in full and all of the defaults, if any, by the City under the provisions of this ordinance and under the provisions of the statutes of the State of Colorado or the laws and ordinances of the City, shall have been cured then and in every such case the holders of the majority in amount of the bonds then outstand- ing by written notice to the City given as herein before specified may rescind and annul such declaration and its consequences but no such rescis- sion or annulment shall extend to or effect any subsequent default or impair any rights consequent thereon Section 10 Remedies The provisions of this ordinance, including the covenants and agreements herein contained, shall constitute a contract between the City and the holders of the bonds, and the holder or holders of not less than 10% in principal amount of the bonds at the time outstanding shall have the right, for the equal benefit and protection of all holders of bonds similarly situated (a) By mandamus or other suit, action or proceedings at law or in equity to enforce his or their rights against the City and its officers, agents and employees, and to require and compel duties and obligations required by the provisions of this ordinance or by the Constitution and laws of the State of Colorado, or the laws and ordinances of the City, and (b) By suit, action or other proceedings in equity or at law to require the City, its officers, agents and employees to account as if they were the trustees of an express trust, and (c) By suit, action or other proceedings in equity or at law to enjoin any acts or things which may be unlawful or in violation of the rights of the holder of the bonds Nothing contained in this ordinance, however, shall be construed as imposing on the City any duty or obligation to levy any taxes either to meet any obligation incurred herein or to pay the principal of or interest on the Bonds -10- No one or more bondholders secured hereby shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security granted and provided for herein, or to enforce any right here- under, except in the manner herein provided, and all proceedings at law or in equity shall be instituted, had and maintained for the equal benefit of all holders of such outstanding bonds and coupons No remedy conferred herein upon the bondholders is intended to be exclusive of any other remedy, but each such remedy shall be cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred herein No waiver of any default or breach of duty or contract by the holder of any bond shall extend to or affect any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon No delay or omission of any bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquie- scence therein Every substantive right and every remedy conferred upon the holders of the bonds by this ordinance may be enforced and exercised from time to time and as often as may be deemed expedient In case any suit, action or proceedings taken by any bondholder on account of any default or to enforce any right or exercise any remedy shall have been discontinued or abandoned for any reason, or shall have been determined adversely to such bondholder, then, and in every such case, the City and the holders of the bonds shall be restored to their former positions and rights hereunder , respectively, and all rights, remedies, powers and duties of the bondholders shall continue as if no such suit, action or other proceedings had been brought or taken Section 11 Defeasance When all principal and interest in connec- tion with the bonds hereby authorized have been duly paid, the pledge and lien and all obligations hereunder shall thereby be discharged and the bonds shall no longer be deemed to be outstanding within the meaning of this Ordinance There shall be deemed to be such due payment when the City has placed in escrow and in trust with a commercial bank located within or without the State of Colorado, and exercising trust powers, an amount sufficient (including the known minimum yield from Federal Securities in which such amount may be initially invested) to meet all requirements of principal and interest as the same became due to their final maturities The Federal Securities shall become due at or prior to the respective times on which the proceeds thereof shall be needed, in accordance with the schedule established and agreed upon between the City and such bank at the time of the creation of the escrow, of the Federal Securities, shall be subject to redemption at the option of the holders thereof to assure such availability as so needed to meet such schedule The term "Federal Secur- ities" within the meaning of this section shall include only direct obliga- tions of, or obligations the principal and interest of which are uncondi- tionally guaranteed by, the United States of America Section 12 Severability That if any one or more sections or parts of this Ordinance sha be adjudged unenforceable or invalid, such judgment -11- shall not affect, impair, or invalidate the remaining provisions of this Ordinance, it being the intention that the various provisions hereof are sevez able Section 13 Repealer All ordinances or parts thereof in conflict with this Ordinance are hereby repealed Section 14 Ordinance Irrepedlable After said bonds are issued this Ordinance shall be and remain irrepealable until said bonds and the inter- est thereon shall have been fully paid, satisfied and discharged Section 15 Recording and Authentication This Ordinance, as adopted by the City Council , shall be numbered and recorded, and the adoption and publication shall be authenticated by the signatures of the Mayor and City Clerk and by the certificate of the publisher, respectively Introduced, considered favorably on first reading and ordered pub- lished this 15th day of September, 1981, and to be presented for final passage on the 6th day of October, 1981 rlpt'." I,M4 (SEAL) hlayo ATTEST City Clerk 1981 Passed and adopted on final reading on this 6th day of October, �a & Mayor ATTEST 0L�4�1 City Clerk -12-