Loading...
HomeMy WebLinkAbout003 - 03/01/1940 - PROVIDING FOR THE ISSUANCE OF NEGOTIABLE COUPON BONDS IN THE AGGREGATE AMOUNT OF $603,000 FOR THE PU ORDINA..CE No -- 3 SERIES t►r___1@ao __—� A\ ORn1NANCE PROVIDING FOR THE ISSUANCE BY THE CITY OF FORT COLLINS COLORADO OF ITS NEGO TIA34H COUPON BONDS IN THE AGOREOATE AMOUNT OF SIX HUNDRED THREE THOUSAND DOLLARS ($603 000), TO Jb DE\JMINAT4D ELECTRIC LIGHT AND POWER 11% and 2% REVbNUE REFUNDING BONDS SERIES 1940 FOR TaE PUReOSE OF REFUNDING A LIKE AMOUNT OF OUTSTANDING BONDED INDEBTEDNESS OF SAID CITY PROVIDING °OR T4E CALL 09 THE OUTSTANDINO 2j% and 21% ELECTRIC LIGHT AND POWER REVENUE RE FUNDING BJNDo SERIES 1939 PRESCRIBING THE FORM OF SAID REFUNDING ELECTRIC LIGHT AND POWER RSY6\Ub BONDS PROVIDING FOR THE PAYMENT OF BOTH PRINCIPAL AND INTEREST ON SAID BONDS SOLELY 1.UT OF REVENUE TJ BE DERIVED FHOM THh OPERATION UP SAID MUNICIPAL ELECTRIC LIGHT AND POWER sibm AND REPEALING ALL ORDIN^NCES RESOLUTIONS OR PARTS THEREOF IN CONFLICT HEREWITH AND DECLARING AN EMERGENCY WHEREAS the City of Fort Collins Colorado has heretofore issued and there are now r outstanding and unpaid its negotiable coupon municipal electric light and power revenue re funding bonds in the amount of Six Hundred Three Thousand Dollars ($603 000) dated the first day of April A D 1939 and being due serially in instalments payable semi annually the first instalment thereof being due and payable on October 1 A D 1940 and the last instal ment thereof being due and payable on October 1 a D 1951 all of said bonds being callable at One Hundred Two and One Half (102b) and accrued interest on any interest paying date $544 000 of said bonds bearing interest at the rate of 21% per annum and $61 000 of said bonds bearing interest at the rate of 262% per annum and WHEREAS it has been ascertained that such bonds may be refunded at this time bear Ing a lower rate of Interest NOW TAEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS LARI- M$R COUNTY COLORADO Section 1 In accor-ance with Section 3 of Ordinance No 3 1939 passed and adopted on the loth day of March K D 1939 the City of Port Collins Colorado hereby calls for payment Six Hundred Three Thousand Dollars ($603 000) of its obligations denominated "Fort f Collins Colorado 2t% and 2;;6 Electric Light and Power Revenue Refunding Bonds " being 603 I bonds in the denomination of $1 000 each all of said bonds dated April 1 1939 $542 000 of said bonds bearing interest at the rate of 2j% per annum and $61 000 of said bonds bearing �i interest at the rate of 2,1% per annum Said bonds will be called for payment at 1021 and 1 accrued interest to April 1 1940 Section 2 That for the purpose of providing funds to redeem the original issue of _ said bonds mentioned In Section 1 of this Ordinance the City shall issue its obligations to 0 be denominated Port Collins Colorado Electric Light and Power Revenue Refunding Bonds In the aggregate principal amount of $603 000 bearing Interest at the rate of 14% per annum and 2% per annum as hereinafter provided which bonds shall be payable solely out of the net � 1 revenue derived and to be derived from the operation of said system and not otherwise Section 3 That said bonds hereby authorized shall be of the date of April 1 1940 and shall be in the denomination of $1 000 each All of said bonds shall be payable to bear i a er in series as hereinafter set forth Until paid the first $298 000 of bonds maturing ser ially shall bear interest at the rate of 116 per annum and until paid the last $305 000 of bolds maturing aerially shall bear interest at the rate of 2% per annum said interest to be 1 payable semi annually on the first days of April and October of each year Said bonds shall have coupons attached thereto evidencing such interest to the maturity of the bonds signed 1 with the facsimile signature of the Mayor of the City and countersigned with the facsimile f signatures of the City Treasurer and of the City Clerk Said bonds shall be signed by the Mayor of the City countersigned by the City Treasurer with the seal of the City thereto affixed and attestec by the City Clerk Both principal and interest thereon shall be pay able in lawful money of the United States at The United States National Bank of Denver in Denver Colorado Said bonds shall be numbered and shall mature in series as follows r r r i < 1 ORDINA&E NO _ _ SERIES OF_ u 'W w ---- 1298,000 11% BONDS BOND NUMBERS MATURITY AMOUNT 1 1 25 October 1 1940 $25 000 l 26 bl April 1 1941 26 000 52 77 October 1 1941 28 000 78 104 April 1 1942 27 000 105 131 October 1 1942 27 000 132 168 April 1 1943 27 000 159 185 October 1 1943 27 000 188 212 April 1 1944 27 000 213 240 October 1 1944 28 000 241 269 April 1 1946 29 000 270 298 October 1 1945 29 000 i $305,000 2% BONDS 299 328 April 1 1946 309000 329 358 October 1 1946 300000 359 388 April 1 1947 30 000 389 418 October 1 1947 30 000 419 449 April 1 1948 31 000 450 - 480 October 1 1948 31 000 481 511 April 1 1949 31 000 512 542 October 1 1949 31 000 543 572 April 1 1950 30 000 573 603 October 1 1950 31 000 Notwithstanding anything herein provided and the face maturles of said bonds they shall be redeemable at the option of the city at any time after date up to and including October 1 1945 upon the payment of the par value thereof together with accrued interest to the date of redemption and a premium of 2% of the par value of the bonds so redeemed After October 1 1945 the bonds shall be redeemable at par together with accrued interest to the date of redemption Provided however that all bonds not owned by the City of Port Collins and then outstanding shall be redeemed in inverse numerical order and of maturity Subject to the foregoing if the City shall at any time elect to call and redeem prior to maturity part or all of said bonds notice shall be given by the City of such call and redemption by 4 publishing a notice once in The Denver Post or some other daily newspaper of general circula- tion published in the City and County of Denver Colorado such publication to occur not less l than thirty days nor more than forty days prior to the time fixed for the redemption and pay ment of such bonds Within five (5) days of such publication copy of the published notice shall be mailed by the treasurer of the City to the Bank at which said bonds are payable and �^ to the original underwriters of said bonds or their successors or assigns Such notice i shell state the intention of the City to redeem all or part of such unmatured bonds and shell describe said bonds giving the number denomination and maturity dates thereof unless all of the bonds are to be redeemed and tten a general statement thereof shall be sufficient i ouch notice shall alsr state when the bonds described in the notice will be redeemed and that after such date interest on the bonds shall cease Notice of election to redeem having been so given the bonds described in the notice shall on the Interest date designated for redemp tion become due and payable at the place designated therein and if funds for the payment of said bonds shall on the date designated for redemption be on deposit at The United States Na- tional Bank of Denver in Denver Colorado and available for payment thereof on presentation interest thereon shall cease on such redemption date If such funds shall not be available at said time and place said bonds shall until payment continue to bear interest at the rate aforesaid payable semi-annually The bonds to be redeemed must be presented with all coupons maturing on and after the date designated for redemption and all bonds so redeemed shall on payment thereof be cancelled Section 4 Said bonds and interest coupons thereto attached shall be in substanti- " ,ally the following form with appropriate changes or insertions to show the rate of interest l principal amounts serial numbers and maturity dates and the number and date of passage of this ordinance J � N ,2 ORDINANCE NO __3 - SERIES OF L040 UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF LARIMBR CITY OF PORT COLLINS PORT COLLINS _,� LIGHT AND POKER REVENUE REFUNDING BOND No $1 000 00 The City of Port Collins in the County of Larimer and State of Colorado for value received hereby promisee to pay to the bearer hereof out of the special fund hereinbelow designated but not otherwise the sum of ONE THOUSAND DOLLARS in Iawful money of the United States of America on the first day of A D 19 ( with interest the eon from date until payment at the rate of _% per annum payable semi- annually on the first day of April and the First day of October in each year both principal and interest being payable at The United States National Bank of Denver in Denver Colorado upon presentation and surrender of this bond or the annexed coupons as they severally become i due This bond is subject to call and redemption at the option of the city at any time after date up to and including October 1 1945 upon the payment of the par value thereof to- gether with accrued interest to the date of redemption and a premium of two per eentum (2%) Is, of the par value of the bonds so redeemed After October 1 1945 the bonds shall be redeem able at par together with accrued interest to the date of redemption Notice of such else tion on the part of the City to redeem will be given by publication of a notice of call in The Denver Post or some other daily newspaper of general circulation in the City and County of Denver State of Colorado not less than thirty days and not more than forty days prior to such call Bonds shall be redeemed in inverse numerical order and of maturity This bond is one of an authorized issue in the aggregate principal amount of Six Hun dred Three Thousand Dollars 4603 000) Refunding Bonds issued to refund a like amount of Re- funding bonds all in full conformity with the Constitution and laws of the State of Colorado r Section 24 of Article XVIII of the Charter of the City of Port Collins duly adopted by vote of the qualified electors of the City prior to the issuance hereof and an ordinance of the City duly enacted and adopted prior to the issuance hereof and the City hereby acknowledges t receipt of money property labor or material in an amount equal to or in excess of the prin cipel amount of the bonds which this issue refunds Both the principal of this bond and all interest hereon are palaDle solely out of a special fund created in full conformity with law ano designated the "Port Collins Light and Power Fund " to contain the revenues derived and to be derived from said electric power and light system all as more fully set out in the ordinance of the City authorizing the issuance of the bonds of which this is one i The City hereby covenants and agrees that for the payment of this bond and the inter i est thereon it will create and maintain said fund and will deposit therein all of the rev- I i I enues derived from said electric light and power system as required by said ordinance and I out of such fund and as an irrevocable charge thereon will pay this bond and the interest accruing thereon in the manner provided by the ordinance under which this bond is issued being Ordinance No 3 1940 of the City passed on March 1st A D 1940 For the descrip- tion of said fund and the nature and extent of the security afforded thereby for the payment of this bond reference is made to lain ordinance It is hereby certified recited and warranted that the City has not pledged hypoth- ( seated or anticipated in any way any of the revenues derived or to be derived from the oper- if stion of its electric light and power system other than by the issuance of the bonds refund. r ��cc��f 53 ORDINANCE NO 3.- SERIES OF` 1940 f ed by this series of Port Collins lj% and 2% Light and Power Revenue Refunding Bonds of 1 which this is one F I It is further certified recited and warranted that all requirements of law have been fully complied with by the proper officers of said City in the issuance of thin bond and that the obligation hereby created eyceeds no limitation imposed by low 1 IN TESTIMONY WHEREOF The City of Port Collins has caused this bond to be subscribed by its Mayor countersigned by the City Treasurer and the seal of the City to be hereto of fixed attested by its City Clerk, and the interest coupons hereto annexed to be signed with j i the facsimile signatures of the above officials as of the first day of April ♦ D 1940 1 (SEAL) MAYOR ATTEST I City ClerkI f COUNTERSIGNED City Treasurer ' (FORM OF COUPON) o No g 76 1 April 0 00 On the first day of October A D 19_ unless the bond to which this coupon is at taehed shall have been called for previous redemption the City of Port Collins in the County of Lorimer, and State of Colorado will pay to bearer 1 DOLLARS in lawful money of the United States at the United States National Bank of Denver in Denver, I 1 Colorado out of the "Port Collins Light and Power Fund " but not otherwise being six months' interest on its _¢ Light and Power Revenue Refunding Bond dated April 1 1940 No (Pacsimile signature) (Pec Z2 simile signature) 'F� ' ATTEST (Facsimile signature) UITYC ERR Section 6 That when issued the "Port Collins Electric Light and Power Revenue Re- funding Bonds" hereby authorized shall be delivered to Boettche and Company and associates s and Brown Schlessman Owen & Co and associates the purchasers thereof in accordance with the terms of the contract of purchase made between the above named firms and the City of Port Collins and the proceeds derived therefrom shell be used solely for the payment of the said outstanding Port Collins 2j% and 24% Light and Power Revenue Refunding Bonds hersinbefore de- scribed but the purchasers shall in no manner be responsible for the application of any of the funds derived from the sale of said bonds The issue of said bonds by the City shall constitute a warrant by and on behalf of the City for the benefit of each and every holder of any of said bonds that said bonds have been issued for a valuable consideration in full conformity with law Section 6 That notwithstanding anything in this ordinance elsewhere contained the principal of and the interest upon said bonds shall be payable only out of the net revenue derived and to be derived from the electric light and power system owned operated and con- trolled by the City and in no event shall said bonds, or the Interest thereon be payable l-1 ORDINANCE NO — 3 SERIES OF__Maio _._ from the general funds of said City or from taxes levied upon any of the property thereon but the term electric light and power system " as herein used shall include not only the property now owned by suld City but all additions and betterments thereto and improvements and extensions thereof hereaftf r constricted or acquirld by theocity JI t Section 7 That there is hereby established aid created a fund to be known and main tained as "Fort Collins Light and Power Fund " to be derived as follows All gross revenues i from the operation of said electric light and power system all funds arising from the sale of by products all funds arising from the sale of materials and equipment removed from the system and no longer requ red for operation interest on reserves for depreciation and ob solescence and on any other funds belonging to said Fort Collins Light and Power Fund and all other funds derived either from the operation or ownership of said electric system A The City of Fort Collins hereby irrevocably covenants and agrees with every holder of said bonds that it will through appropriate action of its City Council, establish and enforce a schedule of charges for light and power furnished to consumers by the Municipal Light and Power system owned anoperated by saiQtity as well as extensions thereof addi tions and betterments thereto and Improvements thereoq sufficient at all times punctually to pay the interest accruing upon said bonds to discharge the principal thereof at maturity and all expenses of operation and maintenance and to accumulate an adequate reserve for de- preciation and obsolescence all In accordance with such approved methods of operation and accounting as are usually applied in the operation of similar utilities by public and pri vats corporations provided however that so long as the charges for light and power fur niched shall be sufficient for the purposes aforesaid the schedule of charges shall be such K as are now in effect or as the City Council may from time to time fix and establish B For all electrical energy furnished by means of the property described as afore- said and used for public or municipal purposes the City hereby irrevocably covenants with i each and every holder of said bonds that it will pay monthly into said fund reasonable rates for such supply or service C If it should ever be legally determined that any legislative or other body or commission has power lawfully to prescribe a lower schedule of rates than that contemplated by this ordinance and if such lower rates should be prescribed then the payment of the in terest upon and the` p principal of the bonds Issued pursuant to the provisions of this ordin- ance shall constitute a first charge upon the revenue received from said electric light and power system after deducting minimum operating and maintenance charges only but before set ting aside any reserve fcr depreciation and obsolescence anything in this ordinance son twined to the contrary notwithstanding Section 8 That the Fort Collins Light and Power Fund hereby established and created Is hereby irrevocably pledged for the purposes and payments herein set forth so long as any of the bonds issued hereunder are outstanding to-wit A Out of such fund there shall first be paid the costs and expenses of efficient and economical operation of said electric light and power system including the salary of the manager hereinafter described and a reasonable amount for the development of new busi- ness covering advertising soliciting demonstration and publicity and including also nee essary replacements but not depreciation or obsolescence charges all in accordance with such approved methods of operation and accounting as are usually applied in the operation of similar utilities by public and private corporations B There shall next be set up as a reserve within said fund such amount as shall teonstitute a reasonable reserve for depreciation and obsolescence in buildings machinery i �5 ORDINANCE NO - 3 SERIES OF- 1940 and equipment such amount to be based upon ap proved pproved accounting methods and to be not less than 3% nor more than 10% of the gross revenue of the system This reserve shall be used whenever necessary to meet interest and principal requirements of said bonds and may be used at any time to call bonds C There shall next be paid out of said fund the annual interest and principal re t quirements of the bondb issued under this ordinance and outstanding at that time That on I or before the lbth days of March and September in each year said bonds remain outstanding the City shell remit to said United States National Bank of Denver in Denver, Colorado an amount sufficient to pay in full the interest on and principal of said bonds maturing there I I after on the lot days of April and October respectively together with all charges of said Bank for handling such funds The amount necessary for this purpose shall be included in the annual budget and the annual appropriation ordinance of the City, and shall be devoted solely to the payment of the interest atoning upon said bonds and the principal thereof when due , D There shall next be paid out of said fund such amount as may be necessary to I , accumulate and maintain a surplus of $20,000 for working capital S There shall next be paid out of said fund to the City a sum not in excess of f �a � alb 000 per annum to be determined by the City Council from time to time in lieu of { taxes and other charges which would be received by the City if said electric light and power 1 y system were privately owned and operated F After the payments and reserves hereinbefore specified have been made and set t up and beginning on October 1 1943 there shall be paid over Into a separate fund to be known as "Fort Collins Light and Power Reserve Fund" until there has been accumulated in such Reserve Fund the sum of $20 000 Thereafter such payments shall be made only as nee- essary to maintain said Reserve Fund at the figure of $20 000 This reserve fund may be J � held in cash or may be invested in United States Government bonds Said Reserve Fund shall J� i be used only to meet the interest and principal requirements of bonds outstanding hereunder J at any time or times the revenues from operations shall be insufficient for such purpose 1 provided however, that whenever the amount in said Reserve Fund Is sufficient together with other funds available for such purpose to call and redeem all outstanding bonds is- sued hereunder, the City Council may in its discretion use said Reserve Fund for the pur- pose of calling all of said bonds G At the end of each annual period the remainder in said fund after the payments and reserves hereinbefore specified have been made and set up may be devoted in the dis- cretion of the City Council (1) to the making of and the payment for extensions of addi- tions or betterments to or improvements upon the electric light and power system where > such expenditures will improve the service of or produce net revenues for the system (2) t to the purchase of bonds of this issue in the open market at lees than the call price or (3) to the call and redemption of bonds as in this ordinance authorized Section 9 That the City of Fort Collins hereby irrevocably covenants and agrees with each and every holder of bonds issued under the provisions of this ordinance that so long as any of said bonds remain outstanding A It will operate maintain and manage its electric light and power system in an economical and efficient manner and supply electric current to the inhabitants of the { City of Fort Collins and others under the terms and provisions set forth in this ordinance B It will adopt necessary and customary rules and regulations for the efficient i and economical operation of said municipal system in accordance with practice prevailing 56 ORDINANCE NO 3 -SERIES OF I in privately owned utilities of a similar mature and it will install and maintain a standard, system of accounting which shall at all times correotly reflect all financial operations of F the system and keep such other records and data as are commonly used by electric utilities " privately owned f C It will em 1 I p �y et fill times a manager for the electric light and power system whop shall have had at least six years experience in the operation and management of electric util! f ( sties and be otherwise competent and fitted for the responsiffiity of such position It will 1 give him the right and duty of hiring and discharging assistants and all other employees of I the system and of purchasing supplies and equipment for the system subject to necessary supervision by the City Council, to the and that he shall be fully responsible for the scon- i omical and efficient operation of the system, and it will pay such manager a salary at all t times commensurate6ith that paid by private utility companies to persons in similar positions of experience and responsibility The manager of the electric light and power system may also be the City Manager as appointed under Ordinance No 2 of the Series of 1939 of the City of Port Collins provided that If the City Manager is also the manager of the electric light and power system such part of his salary as the City Council may deem proper shall be I paid from the light and Power system , ( D It will carry fire insurance workmen's compensation insurance and public liabil I Sty insurance in such amounts as shall properly protect the system and its operations The amounts of such insurance and the companies and agencies through which written shall be set- isfactory to the original underwriters of said bonds or their successors or assigns but the agencies shall be those located in the City of Port Collins and selected by the City Council ' and the cost of such insurance shall be considered one of the operating Coate of the system In the event of lose or damage insurance money shall be used first for the purpose of re- storing or replacing the property lost or damaged and the remainder shall be paid into the Fort Collins Light and Power Fund D On or before the lbth day of each month the City will furnish to The United States National Bank of Denver in Denver Colorado as paying agent for the bonds and the original underwriters of said bonds or their successors or assigns with a summary of the receipts and disbursements of said system for the preceding month and at least once a year shell furnish said Bank a A said firms or their successors or assigns with a copy of an J annual audit of the accounts of said system which audit shell be made by a certified public I I accountant acceptable to sold firms or to their successors or assigns F It will keep all moneys in the Fort Collins Light and Power Fund deposited as ( provided by the City Charter of the City of Fort Collins and if possible in banks which Jere members of the Federal Deposit Insurance Corporation and it 9111 have such deposits se- cured as now provided by the said City Charter I 0 It will not alienate said property, or any part thereof, or any of the extensions (or betterments thereof or additions thereto in such manner or to such extent as might jeo- Ipardize the security for the payment of said bonds from said Fort Collins Light and Power (Fund But the City may sell any portion of said property which shall have been replaced by lother property of at least equal value or which shall cease to be necessary for the effiei- ent operation of said property provided however, that in the event of say sale as aforesaid ,such consideration shall be paid into said Port Collins Light and Power Fund and be used for 4the purposes of said fund 3 Section 10 In the event of any default on the part! of the City is asking any of the payments required by this ordinance or in the keeping of its covenants hereunder and such default shell continue for a period of thirty (30) dais the City shall appoint a manager of ORDINANCE NO _ -;--_ .SERIES OF 1940 57 said system who shall be satisfactory to the original underwriters of said bonds or their 6 successors or assigns Said manager shall have full control over said system subject only to the control of the City Council and he shall enforce such rates and charges fixed by the City Council as will be sufficient to make the payments required by this ordinance The c salary of said manager shall be chargeable to the Fort Collins Light and Power Fund If I under such management all defaults are remedied and the payments required herein are prompt- ly made for a period of six months, the City shall have the privilege of changing such man agement with or without the consent of said original underwriters of sold bonds their sus- 7 censors or assigns, but if there shall be any subsequent default, the conditions not forth In this Section shall again prevail Section 11 All ordinances or parts thereof in conflict with this ordinance are hereby repealed Section 12 After said bonds or any of them shell have been issued this ordinance +shall be irrepealable until said bonds and the interest thereon shall be fully paid, artis- t Iiied and discharged, in the manner herein provided I Section 13 This ordinance after its passage shell be recorded in the City Book of Ordinances kept for that purpose, authenticated by the signatures of the Mayor and the City Clerk, and shall be published in the official newspaper of the City and shall be In ,full force and effect as provided by low It Section 14 That/is necessary for the refunding proceedings herein provided for to ,be completed as boon as possible for the reason that the bonds to be refunded are celled for April 1 1940 and a material saving in interest will be effected by this refunding there- fore it is hereby declared that an emergency exists that this Ordinance is necessary for the preservation of the public peace health and safety and shall become effective upon its I passage the previous reading and publication of this Ordinance being expressly waived and dispensed with because of the emergency herein expressed PASSED AND ADOPTED AND APPROVED this let day of March A D 1940 / J r7 J (SEAL) ATTEST I CITY CLERK c STATE OF COLORADO ) i COUNTY OF LARIMER SS CITY OF FORT COLLINS )))) i I MILES F HOUSE City Clerk of the City of Fort Collins do hereby certify and de- clare that the foregoing Ordinance consisting of fourteen (14) sections was duly proposed and read at length at a regular meeting of the City Council held on the let day of March A D 1940 and was duly adopted and ordered published in the Port Collin Leader a weekly newspaper and the official newspaper of the City of Port Collins, by the unanimous vote of all members of the City Council, as an Emergency Ordinance in accordance with the provisions yyOf Sections 6 and 7 of Article IV of the City Charter end thereafter and on to-sit the kth day of March A D 1940 said Ordinance go 3 19400, was duly published In the tort Collins Leader a weekly newspaper published in the City of Port Collins Colorado, and that 58 ' ORDINANCE NO----z SERIES OF 14411 I d j I said Ordinance has been duly transcribed in the City of Port Collins Record Boot of Ordinance IN WITNESS wRBRROP, I have hereunto not my hand and affixed the seal of said City, this 7tb day of (larch, 1 D 1940 SEAL z i I x { 1 d � la � 11 � ? I I } I F J { p f I � � f F L r 1 1 t 2 r