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HomeMy WebLinkAboutordinance.council.038-79ORDINANCE NO. ~ SERIES 1979 AN ORDINANCE TO CONTRACT AN INDEBTEDNESS ON BEHALF OF THE CITY OF ASPEN, COLORADO, AND UPON THE CREDIT THEREOF BY ISSUING GENERAL OBLIGATION BONDS OF THE CITY IN THE PRINCIPAL AMOUNT OF $1,200,000, FOR THE PURPOSE OF PAYING THE COST OF CONSTRUCTING GENERAL STREET AND STORM DRAINAGE IMPROVEMENTS; PRESCRIBING THE FORM OF SAID BONDS AND PROVIDING FOR THE LEVY OF TAXES TO PAY THE BONDS AND THE INTEREST THEREON, AND PROVIDING OTHER DETAILS IN CONNECTION THEREWITH. WHEREAS, at a special municipal election held on Tuesday, May 8, 1979, the question of issuing general ob- ligation bonds of the City in the principal amount not exceeding $1,200,000, for the purpose of paying the cost of constructing general street and storm drainge improvements,was approved by a majority of the qualified, registered electors of the City voting on said question; and WHEREAS, the City Council has determined to issue the bonds approved at the election on May 8, 1979; and WHEREAS, the City Council has determined to award the purchase of the bonds to Kirchner, Moore & Company, Denver, Colorado, in accordance with the terms and conditions of their proposal dated June ti, 1979: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1. Bond Details. paying the cost of constructing general improvements, the City shall issue its That for the purpose of street and storm drainage general obligation nego- tiable coupon bonds in the principal amount of $1,200,000, each to be designated "General Obligation Street Improvement Bond". The City Council has determined that the total existing and proposed general obligation indebtedness of the City, other than general obligation bonds issued for the acquisition or extension of a water system or public utilities, does not exceed twenty per cent (20%) of the assessed valuation of the taxable property within the City as shown by the last preceding assessment for City purposes. The bonds shall be dated June 15, 1979 and consist of 240 bonds in the denomination of $5,000 each, numbered 1 to 240, inclusive. The net effective interest rate of this issue of bonds is ~,~ ~ %. Interest shall be payable on June 15, 1980, and semi-annually/ thereafter on June 15 and December 15 each year, as evidenced by interest coupons attached to said bonds, and the bonds shall mature serially on December 15, as follows: - 2 - Amount Maturity Interest Rate .. 7. o $50,000 1980 60,000 1981 60,000 1982 60,000 1983 7'~0 60,000 1984 ~.~D $65,000 1985 65,000 1986 ~.~O 65,000 1987 ?'~ 65,000 1988 65,000 1989 $65,000 1990 65,000 1991 65,000 1992 65,000 1993 65,000 1994 $65,000 1995 65,000 1996 65,000 1997 65,000 1998 ~.~ Bonds maturing on or before December 15, 1989, shall not be redeemable prior to their respective maturity dates. Bonds maturing in the years 1990 and thereafter, shall be redeemable at the option of the City on December 15, 1989, and on any interest payment date thereafter, in inverse numerical order, upon payment par~ccrued interest~az~t--~ premium ~f -O % o~ the of Notice of prior redemption shall be given by publication at least one time in a newspaper having general circulation in the City of Aspen, not less than thirty (30) days prior to the date of redemption, and notice shall also be given by mailing a copy of the notice by registered, first class mail, to the original purchaser of the bonds, at least thirty (30) days prior to the date of redemption. The bonds and the interest coupons attached thereto shall be payable in lawful money of the United States of America, Section 2. Form and Execution of Bonds and Interest Coupons. The bonds shall be signed with the facsimile signature of the Mayor of the City, with an impression of the seal of the City affixed thereto, attested and countersigned by the manual signature of the Director of Finance, ex-officio City Treasurer (or the Acting Director of Finance, in the event an Acting Di- rector of Finance has been appointed by the City Council). The interest coupons attached to said bonds shall bear the facsimile signature of the Director of Finance, or Acting Director of Finance, and when issued as aforesaid as part of said bonds, - 3 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 interest 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 interest coupons attached thereto shall be in substantially the following form: - 4 - .. (Form of Bond) UNITED STATES OF AMERICA STATE OF COLORADO GENERAL OBLIGATION STREET COUNTY OF PITKIN No. CITY OF ASPEN IMPROVEMENT BOND $5,000 The City of Aspen, in the County of Colorado, acknowledges itself indebted and the bearer hereof the principal sum of on the 15th day rate of 0°f Pitkin, State promises to pay to FIVE THOUSAND DOLLARS of December, 19 , with interest thereon at the per centum ( %) per semi-annually thereafter on of December each year, both in lawful money of the United States of surrender of saio coupons and this Bond due or are called for prior redemption. Bonds of this issue maturing 1989, are not redeemable prior to' their annum, payable on June 15, 1980, and the 15th day of June and the 15th day principal and interest being payable America, at The ~ , upon presentation and as they severally become on or before December 15, respective maturity dates. Those bonds maturing in the years 1990 and thereafter, shall be redeemable at the option of the City on December 15, 1989, and on any interest payment date thereafter, in inverse numerical order, ~ promium 0 % o'f upon payment of par~ accrued interest~a~ a of the D~_~ipal~.uu.~L =o radccme~. Notice of such prior redemption shall be given in the time and manner set forth in the ordinance authorizing the issuance of this Bond. This Bond is issued by the City Council of the City of Aspen, Colorado, for the purpose of paying the cost of construct- lng general street and storm drainage improvements, under the authority of and in full conformity with the Constitution and Laws of the State of Colorado, the home rule Charter of the City, and pursuant to an Ordinance duly adopted, published and made a law of the City prior to the issuance of this Bond. It is hereby certified and recited that all the re- quirements of law have been duly complied with by the proper officers of the City in the issuance of this Bond; that the total - 5 - debt of the City, including that of this Bond, does not exceed any limit of indebtedness prescribed by the Constitution or Laws of the State of Colorado or the Charter of the City; and that pro- vision has been made for the levy and collection of a direct annual tax (general ad valorem tax) on all the taxable property in the City sufficient to pay the interest on and principal of this Bond when the same become due. The full faith and credit of the City of Aspen, Colo- rado, are hereby pledged for the punctual payment, of the principal of and interest on this Bond. IN TESTIMONY WHEREOF, the City Council of the City of Aspen, Colorado, has caused this Bond to be signed with the facsimile signature of the Mayor of the City, sealed with an impression of the seal of the City, attested and countersigned by the manual signature of the [Acting] Director of Finance, ex-officio City Treasurer, and the interest coupons attached hereto to be signed with the facsimile signature of the [Acting] Director of Finance, as of the 15th day of June, 1979. CITY OF ASPEN, COLORADO ( SEAL ) ATTEST AND COUNTERSIGNED: By (Facsimile Siqnature) Mayor (Manual Signature) [Acting] Director of Finance, ex-officio City Treasurer - 6 - i~orm of Interest Coupon) June, On the 15th day of December, 19 , unless the Bond to which this coupon is attached, if redeemable, has been called for prior redemption, the City of Aspen, in the County of Pitkin, State of Colorado, will pay to bearer the amoun( shown hereon in lawful money of the United States of America, at'~he ~%~-- ~ ~V~ ~.~/~-! ~ ~~~ , being interest t~en due on its General Obligation Street Improvement Bond, dated June 15, 1979, bearing No. (Facsimile Signature) [Acting] Director of Finance - 7 - Section 3. Disposition of Bond Proceeds. When the b~nds have been duly"executed, the Director of Finance is hereby directed to deliver the bonds to the purchaser thereof upon receipt of the agreed purchase price therefor. The proceeds of the bonds shall be used only for the purpose as set forth above, and for paying the costs and expenses incurred incidental to the issuance of the bonds and for no other purpose whatever. Ail or any portion of the bond proceeds may be tem- porarily invested, or reinvested, pending such use, in securities or obligations which are lawful investments for such municipal- ities 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 of the City shall not be or become "arbitrage bonds" within the mean- ing 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 exists or may later be amended. 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 any of the funds derived from the sale thereof. Section 4. Payment of Principal and Interest. If necessary, the interest due on said bonds on June 15, 1980, may be advanced from any available funds of the City, or from the proceeds of the bonds authorized by this Ordinance. For the purpose of reimbursing said funds and paying the interest on the bonds as it shall thereafter become due and providing for the ultimate payment of the bonds, there shall be levied on all the taxable property in the City, in addition to all other taxes, direct annual taxes (general ad valorem taxes) in each of the years 1979 to 1997, inclusive, without limitation as to rate or amount, sufficient to make such reimbursement and pay the interest on all of the bonds outstanding, and the principal thereof, as the same become due and payable, respectively. Said taxes, when collected, shall be deposited in a special fund to be designated as the "City of Aspen, General Obligation Street Improvement Bond Fund, 1979" and such Fund shall be applied solely to the purpose of the payment of the interest on and principal of said bonds and for no other purpose whatever, - 8 until the bonds authorized by this Ordinance, both principal and interest, shall have been fully paid, satisfied and dis- charged. Nothing herein contained shall be so construed as to prevent the City from applying any other funds or revenues that may be in the City treasury and available for that purpose to the payment of the bonds and the interest thereon, and upon the application of such funds or revenues as aforesaid, the levy or levies herein provided may thereupon to that ext~nt be diminished. The sums herein provided to pay the interest on the bonds and to discharge the principal thereof when due, are hereby appropriated for that purpose, and said amounts for each year shall also be included in the annual budget and the appropriation bills to be adopted and passed by the City Council of the City in each year, respectively. It shall be the duty of the City Council of the City, annually, at the time and in the manner provided by law for levying other City taxes, if such action shall be necessary to effectuate the provisions of this Ordinance, to ratify and carry out the provisions hereof with reference to the levying and collection of taxes; and such taxes, when collected, shall be kept for and applied only to the payment of the interest on and prin- cipal of said bonds, as hereinabOve specified. Section 5. Ratification and Approval of Prior Action. That all action heretofore taken by the officers and members of the City Council not inconsistent with the provisions of this Ordinance relating to the special bond election, the author- ization, sale, issuance and delivery of the bonds, be and the same are hereby ratified, approved and confirmed. Section 6. Severability. That if any one or more sections or parts of this Ordinance shall be adjudged unenforce- able or invalid, such judgment shall not affect, impair or in- validate the remaining provisions of this Ordinance, it being the intention that the various provisions hereof are severable. Section 7. Repealer. All Ordinances or parts thereof in conflict with this Ordinance are hereby repealed. Section 8. Ordinance Irrepealable. After the bonds are issued, this Ordinance shall be and remain irrepealable until the bonds and the interest thereon shall have been fully paid; satisfied and discharged. Section 9. Hearinq. In accordance with Section 4.10 of the City Charter, the City Council shall hold a public hearing on this ordinance, before final passage thereof, on Monday, June 25, 1979, at 5:00 P.M. Section 10. Recordation. This Ordinance, after its fianl passage, shall be numbered and recorded, and the adoption and publication shall be authenticated by the signature of the Mayor and the City Clerk, and by the Certificate of Publication. INTRODUCED AND READ This llth day of June, 1979. (SEAL) ATTEST: C~y Clerk 1979. FINALLY ADOPTED (SEAL) AND APPROVED This 25th day of June, Mayor ATTEST: - 10 - Thereupon, .Council Member ~R? moved that the foregoing Ordinance, introduced at this meeting, be passed on first reading, and be published in full in the Aspen Times, a newspaper of general circulation in the City, and that said Ordinance be considered for final passage at a regular meeting of the City Council to be held on June 25, 1979. Council Member ~/~} ~/(_~c._ ~ seconded the motion and the question being upon the passage of the Ordinance on first reading, the roll was called with the following ~esult: Mayor: Mayor Pro Tem: Council Members: Those voting NO: of members of the City Council having voted in favor the passage of the Ordinance on first reading, the presiding officer thereupon declared passed on first reading. Thereupon, after meeting was adjourned. ( SEAL ) ATTEST: C~ Clerk the motion carried, and the Ordinance consideration of other matters, the Mayor STATE OF COLORADO ) ) COUNTY OF PITKIN ) ss. ) CITY OF ASPEN ) I, Kathryn S. Koch, City Clerk of the City of Aspen, Colorado, do hereby certify that the foregoing p~ges numbered 1 to 11, inclusive, constitute a true and correct copy of that portion of the record of the proceedings of the City Council, taken at a regular meeting thereof, on June 11, 1979, insofar as said pro- ceedings relate to a Bill for an Ordinance concerning the issuance of General Obligation Street Improvement Bonds, therein set forth; that the copy is a true and original thereof, as adopted on first reading. and a copy of which is correct copy of the IN WITNESS WHEREOF, I have hereunto subscribed my name affixed the seal of the City, this o~7~day of ~'~/J~/~/~ , 1979. ( SEAL ~City Clerk -12- (Attach Affidavit of Publication of Ordinance NO. following first reading) -13-