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HomeMy WebLinkAboutordinance.council.019-80 ORDINANCE NO. /~ SERIES 1980 AN ORDINANCE TO CONTRACT AN INDEBTEDNESS ON BEHALF OF T~E CITY OF ASPEN, COLORADO, AND UPON THE CREDIT THEREOF, BY ISSUING T~{E GENEP~%L OBLIGATION BONDS OF THE CITY IN THE AMOUNT OF $4,000,000 FOR THE PURPOSE OF CON$~I'ttUCTING PUBLIC HOUSING FACILITIES; PRESCRIBING THE FORM OF THE BONDS; PRO- VIDING FOR THE LEVY OF TAXES TO PAY THE SAME; PROVIDING OTHER DETAILS CONCERNING THE BONDS; RATIFYING ALL ACTION HERETOFORE TAKEN IN CONNECTION THEREWITH; AND DECLARING AN EMERG E~CY. W~EREAS, the City of Aspen (the "City"), in the County of Pitkin and State of Colorado, is a municipal corporation, duly orga- nized and existing as a home-rule city under Article XX of the Constitution of the State of Colorado; and W~EREAS, at a special election held on February 26, 1980, the question of issuing the City's general obligation bonds in a principal amount not exceeding $4,000,000 for the purpose of con- structing public housing facilities (the "Project") was approved by a majority of the qualified electors of the City voting thereon; and W~EREAS, the Council of the City (the "Council") has deter- mined to issue all the bonds so authorized; and WHEREAS, the COuncil has determined to award the purchase of such bonds to Kirchner Moore & Company, Denver, Colorado, (the "Purchaser") in accordance with the terms and conditions of its pro- posal dated ~a,J ?~ 1980, for a purchase price of $3,900,000, plus ac~ed interest to the date of their delivery; and W~EREAS, the Council has agreed to pay for a policy from the Municipal Bond Insurance Association such bonds in the event the bonds are Purchaser. (the "MBIA") guaranteeing awarded and sold to the NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1. All action heretofore taken ~(not inconsistent with the provisions of this ordinance) by the City, and the officers of the City, directed toward the Project and the issuance of its bonds for that purpose be, and confirmed. Section 2. For and the same is hereby, ratified, approved the purpose of providing funds to defray the cost of the Project the City shall issue its negotiable, coupon "City of Aspen, Colorado, General Obligation Housing Bonds, Series May 15, 1980" (the "1980 bonds" or "bonds"), in the aggregate principal amount of $4,000,000, consisting of 800 bonds numbered - 2 - consecutively in regular numerical order from 1 to 800, inclusive, dated May 15, 1980, in the denomination of $5,000 each, bearing interest as set forth below, payable semiannually on November 15 and May 15 in each year, commencing November 15, 1980, as evidenced by one set of coupons attached to the bonds. Both principal and inter- est will be payable in lawful money of the United States of America, without deduction for exchange or collection charges, at the office of the City Treasurer, in Aspen, Colorado (the "Paying Agent"), and the bonds will be numbered and mature serially in regular numerical order on November 15 in each of the following years and amounts: 1 - 10 $ 50,000 8.60% 1982 11 - 22 60,000 8.60% 1983 23 - 34 60,000 8.60% 1984 35 - 48 70,000 8.60% 1985 49 - 63 75,000 8.60% 1986 64 - 78 75,000 8.60% 1987 79 - 96 90,000 8.60% 1988 97 - 116 100,000 8.60% 1989 117 - 146 150,000 8.30% 1990 147 - 186 200,000 8.30% 1991 187 - 236 250,000 7.50% 1992 237 - 290 270,000 7.50% 1993 291 - 348 290,000 7.40% 1994 349 - 410 310,000 7.50% 1995 411 - 478 340,000 7.60% 1996 479 - 550 360,000 7.70% 1997 551 - 630 400,000 7.80% 1998 631 - 715 425,000 7.80% 1999 716 - 800 425,000 7.80% 2000 If any bond shall not be paid upon presentation at maturity, shall continue until paid at the rate interest designated in the bond. Section 3. Bonds maturing on or before November 15, 1990, shall not be subject to redemption prior to their respective maturity dates. Bonds maturing in the years 1991 and thereafter shall be subject to redemption at the option of the City on November 15, 1990, and on any interest payment date thereafter, in whole or in part in inverse numerical order, at a price equal to the principal amount thereof, accrued interest to the redemption date and a premium of 1-1/2% of the principal amount of each bond so redeemed. Notice of redemption shall be given by publication of such notice at least once, not less than 30 days prior to the redemption date, in a news- paper or newspapers customarily used by the City for legal notices, and a copy of such notice shall be sent by certified, first-class postage prepaid mail, at least 30 days prior to the redemption date, to Kirchner Moore & Company, the original purchaser of the bonds. Such notice shall specify the number or numbers of the bonds to be so redeemed (if less than all are to be redeemed) and the date fixed for redemption; and shall further state that on such redemption date - 3 - there will become and will be due and payable upon each bond so to be redeemed at the office of the Paying Agent, the principal amount thereof and accrued interest to the redemption date, together with the stated premium, and from and after such date interest will cease to accrue. Notice having been given in the manner hereinabove pro- vided, the bond or bonds so called for redemption shall become due and payable on the redemption date so designated; and upon presenta- tion at said office, together with all appurtenant coupons maturing subsequent to the redemption date, the City will pay the bond or bonds so called for redemption. Section 4. The bonds and the coupons relating thereto shall be fully negotiable and shall have all the qualities of nego- tiable paper, and the holder or holders thereof shall possess all rights enjoyed by the holders of negotiable instruments under the provisions of the Uniform Commercial Code. Section 5. The bonds shall be executed in the name of the City with the facsimile signature of the Mayor, with an impression of the seal of the City affixed thereto, attested by the facsimile sig- nature of the City Clerk, and manually countersigned by the Director of Finance, ex officio City Treasurer ("City Treasurer"). The inter- est coupons attached to the bonds shall be executed with the facsim- ile signature of the City Treasurer. The bonds and the coupons bear- ing the manual or facsimile signatures of the officers in office at the time of the signing thereof shall be the valid and binding obli- gation of the City, notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose manual or fac- simile signatures appear thereon shall have ceased to fill their respective offices. Section 6. The bonds and the coupons thereto attached shall be in substantially the following form with such omissions, insertions, endorsements and variations as to any recitals of fact or other provisions as may be required by the circumstances, be required or permitted by this ordinance, or be consistent with this ordinance and necessary or appropriate to conform to the rules and requirements of any governmental authority or any usage or requirement of law with respect thereto: - 4 - (Form of Bond) STATE OF COLORADO UNITED STATES OF AMERICA CITY OF ASPEN GENERAL OBLIGATION HOUSING MAY 15, 1980 BOND COUNTY OF PITKIN NO. $5,000 The City of Aspen (herein the "City"), in the County of Pitkin and State of Colorado, hereby acknowledges itself indebted and hereby promises to pay to the bearer hereof the sum of FIVE THOUSAND DOLLARS for value received, on November 15, 19__, upon presentation and sur- render of this bond, with interest thereon at the rate of per cent ( %) per annum, payable semiannually on November 15 and May 15 in each year, commencing November 15, 1980, upon presentation and surrender of the annexed coupons as they severally become due, both principal and interest being payable in lawful money of the United States of America, without deduction for exchange or collec- tion charges, at the office of the City Treasurer in Aspen, Colorado. If this bond shall not be paid upon presentation at matu- rity, interest shall continue until paid at the rate herein designated. Bonds maturing on or before November 15, 1990, shall not be subject to redemption prior to their respective maturity dates. Bonds maturing in the years 1991 and thereafter shall be subject to redemption at the option of the City on November 15, 1990, and on any interest payment date thereafter, in whole or in part in inverse numerical order, at a price equal to the principal amount thereof, accrued interest to the redemption date and a premium of 1-1/2% of the principal amount of each bond so redeemed. Redemption shall be made upon not less than 30 days' prior notice by publication, at least once, in a newspaper customarily used by the City for legal notices in the manner and upon the conditions provided in the ordi- nance authorizing the issuance of this bond. This bond is issued by the City Council of the City for the purpose of constructing public housing facilities under the authority of and in full conformity with the Constitution of the State of Colorado, and Charter of the City, and pursuant to an ordinance of the City duly adopted, published and made a law of the City prior to the issuance of this bond. The issuance of this bond has been - 5 - The full faith and credit of the City are for the punctual payment of the principal of and the bond. authorized by a majority of all votes cast by the qualified electors of the City voting on the question at the election duly held in the City on February 26, 1980. It is hereby certified and recited that all the require- ments of law have been fully complied with by the proper City offi- cers in the issuance of this bond, and that the total debt of the City, including that of this bond, does not exceed any limit of indebtedness prescribed by the Charter and ordinances of the City nor by the Constitution or laws of the State of Colorado, and that provi- sion has been made for the levy and collection of annual taxes on all of the taxable property in the City sufficient to pay the interest on and the principal of this bond when the same become due. hereby pledged interest on this IN TESTIMONY WHEREOF, the City Council of the City of Aspen has caused this bond to be executed with the facsimile signature of the Mayor, sealed with an impression of the seal of the City, attested by the facsimile signature of the City Clerk, and to be man- ually countersigned by the Director of Finance, ex officio City Treasurer, and has caused the interest coupons hereto attached to be executed with the facsimile signature of the Director of Finance, ex officio City Treasurer, all as of May 15, 1980. (SEAL) Attest: (Facsimile Signature) Mayor (Facsimile Siqnature) City Clerk (End Countersigned: (Manual Sianature) Director of Finance, ex officio City Treasurer of Form of Bond) - 6 - (Form of Coupon) Coupon NO. $ On (November 15), (May 15), 19__, unless the bond to which this coupon is attached has been duly called for prior redemption on an earlier date and payment duly provided therefor, the City of Aspen, in the County of Pitkin and State of Colorado, will pay to the bearer hereof in lawful money of the United States of America, at the office of the City Treasurer, in Aspen, Colorado, the amount herein stated, being interest then due on its City of Aspen, Colorado, General Obligation Housing Bonds, Series May 15, 1980, and bearing Bond No. (Facsimile Signature) Director of Finance, ex officio City Treasurer (End of Form of Coupon) - 7 - Section 7. When the bonds have been duly executed, the Director of Finance, ex officio Treasurer of the City shall deliver them, at one time or from time to time, to the Purchaser, on receipt of the agreed purchase price. The funds raised thereby shall be applied solely to the purpose aforesaid and for no other purpose whatsoever, but the Purchaser in no manner 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 of the bonds. Section 8. If necessary, the interest falling due on the bonds on May 15, 1980, shall be paid out of the general revenues of the City or out of any funds available for that purpose, or from the proceeds of the bonds authorized by this Ordinance, and for the pur- pose of reimbursing such general revenues or such fund or funds and for the purpose of providing the necessary funds to meet the princi- pal and interest thereafter accruing on the bonds, as the same become due, there shall be levied on all the taxable property in the City, in addition to all other taxes, direct annual taxes sufficient in amount to pay the interest and principal promptly as the same, respectively, become due, and such taxes when collected shall be deposited in a special fund to be kept separate and apart from other other accounts and to be known as the "City of Aspen, Colorado, General Obligation ~ousing Bonds, Series May 15, 1980, Bond Fund," such fund to be applied solely for the purpose of the payment of the interest on and the principal of the bonds, respectively, and for no other purpose whatever until the indebtedness so contracted under this ordinance, both principal and interest, shall have been fully paid, satisfied and discharged. Nothing herein shall be so construed as to prevent the City from applying any other funds available for that purpose to the payment of such interest or principal as the same, respectively, mature; and upon such payments, the levy or levies herein provided may thereupon to that extent be diminished. The sums produced by the levies hereinabove provided to meet the interest on the bonds and to discharge the principal thereof when due are hereby applied for that purpose, and such amounts for each year shall be included in the annual budget resolutions and the appropria- tion ordinances to be adopted and passed by the Council in each year. Section 9. The City hereby covenants for the benefit of each holder of the bonds that bond proceeds (and amounts treated as bond proceeds for federal income tax purposes) shall not be invested in such manner as to result in the loss of exemption from federal income taxation of interest on the bonds. Section 10. It shall be the duty of the Council, annually, at the time and in the manner provided by law for levying other City - 8 - 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 the Council shall require the officers of and for the City to levy, extend and collect such taxes in the manner provided by law for the purpose of creating a fund for the payment of the principal of the bonds and interest thereon, and such taxes, and applied only to the payment of bonds as hereinabove specified. Section 11. The officers when collected, shall be kept for the interest and principal of the of the City be, and they hereby are, authorized and directed to take all action necessary or appro- priate to effectuate the provisions of this ordinance, including, without limiting the generality of the foregoing, the printing of the bonds, including the printing thereon of the MBIA Statement of Insurance, the execution of such certificates as may be required by the original purchasers thereof, including without limitation certif- icates relating to the signing of the bonds, the tenure and identity of the municipal officials, the delivery of the bonds and receipt of the bond purchase price, the tax exempt status of the bonds, and the absence of pending or threatened litigation, if in accordance with the facts, affecting the validity thereof. Section 12. After any of the bonds herein authorized are issued, this ordinance shall constitute a contract between the City and the holder or holders of the bonds, and shall be and remain irre- pealable and unalterable until the bonds and the interest accruing thereon shall have been fully paid, cancelled, and discharged. Section 13. If any section, paragraph, clause or provision of this ordinance shall be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall in no manner affect any other provision of this ordinance. Section 14. All ordinances, resolutions, bylaws and regu- lations of the City in conflict with this ordinance are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revive any ordinance, resolution, bylaw, or resolution, or part thereof, heretofore repealed nor to abrogate or impair any outstanding contract with bondholders. Section 15. This ordinance, immediately on its final pas- sage, shall be numbered and recorded in the City book of ordinances kept for that purpose, authenticated by the signatures of the Mayor and Clerk, and shall be published in a legal newspaper of general circulation in the City. The Council hereby determines, pursuant to Section 4.10 of the City Charter, that such publication shall be by publication of the title hereof together with a statement that the - 9 - text hereof is available for public inspection and acquisition in the office of the City Clerk. Section 16. Because of the existence of an urgent need for the Project and the extremely unstable conditions of the bond market, an emergency is declared to exist and this ordinance is declared to be necessary for the preservation of the public property, health, safety and shall take effect immediately upon final peace and passage. (SEAL) INTRODUCED on May 14, 1980. Mayor Attest: ~-~ City Clerk ADOPTED AND APPROVED on (SEAL) Attest: City Clerk Mayor 10 -