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HomeMy WebLinkAbout1990-049-04/03/1990-CREATING RESERVE DEBT RESERVES DEBT SERVICE FUND PUBLIC IMPROVEMENTS SPECIAL ASSESSMENTS RESOLUTION 90-49 OF THE COUNCIL OF THE CITY OF FORT COLLINS CREATING A RESERVE WITHIN THE SPECIAL ASSESSMENTS DEBT SERVICE FUND AND ESTABLISHING A POLICY REGARDING SUCH DEBT RESERVES WHEREAS, Ordinance No. 19, 1989 was adopted by the Council of the City of Fort Collins (the "Council ") on February 21, 1989, for the purpose of amending Chapter 22 of the City Code regarding Public Improvements; and WHEREAS, Ordinance No. 19, 1989 provided for the creation of a reserve fund for each special improvement district thereafter created by the Council ; and WHEREAS, special improvement districts created by the Council prior to the adoption of Ordinance No. 19, 1989 did not have reserve funds; and WHEREAS, the Financial Officer has recommended that the Council create a designated reserve that could be used to supplement the debt service funds of the City with regard to special assessment bonds issued for prior special improvement districts; and WHEREAS, the purpose of such a designated debt service reserve would be to supplement deficiencies in the cash flow of special improvement districts resulting from defaults in payment of special assessments; and WHEREAS, the Financial Officer has further recommended that a policy for supplemental reserves for special improvement districts be established by the Council and included in the Reserve Policy of the City adopted as part of the annual budget document; and WHEREAS, by the creation of such a reserve the City does not intend to confer any rights on bondholders not heretofore expressly conferred by ordinance; and WHEREAS, a Special Assessments Debt Service Fund already exists, wherein a reserve may be created. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1 . That a designated reserve (the "Reserve") be created in the Special Assessments Debt Service Fund to be funded by monies transferred by the Council by ordinance from the General Fund Undesignated Reserve. Section 2. That the Financial Officer be authorized to use such portions of the monies within the Reserve as subsequently appropriated by Council to satisfy the debt service obligations of the City of Fort Collins regarding special assessment bonds issued without a reserve fund. Section 3. That the monies in the Reserve which are idle be invested, so as to earn interest as provided in the City of Fort Collins Cash Management and Investment Policy. Section 4. That the following language be adopted for inclusion in the City's Reserve Policy as set forth in the annual budget document: The City Council may establish, upon recommendation of the Financial Officer, supplemental debt service reserves in addition to those expressly required by bond ordinance. Such reserves shall not be deemed to confer any rights upon bondholders over and above those set forth in the bond ordinance for each bond issue. Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 3rd day of April , A.D. 199 - M or ATTEST: 1 City Clerk