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