HomeMy WebLinkAbout05823SUBSTITUTED COPY DATED
AUGUST 9, 1993
ORDINANCE NO. 5 8 2 3
AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF THE
CITY OF PUEBLO, COLORADO AT THE GENERAL MUNICIPAL
ELECTION TO BE HELD ON NOVEMBER 2, 1993, QUESTIONS
RELATING TO REVENUE BONDS OF THE URBAN RENEWAL
AUTHORITY OF PUEBLO, COLORADO, THE AMENDMENT OF THE
CITY'S SALES AND USE TAX ORDINANCE AND THE PLEDGE OF
CERTAIN SALES AND USE TAX REVENUES FOR THE USE OF THE
AUTHORITY AND THE PAYMENT OF THE BONDS.
WHEREAS, the Urban Renewal Authority of Pueblo, Colorado (the "Authority"), issued
$9,950,000 aggregate principal amount of its Tax Increment Revenue Bonds (Phase One Urban
Renewal Project) Series 1986A (the "Revenue Bonds "), the proceeds of which are intended to
be used to build, among other capital improvements, a civic center plaza project; and
WHEREAS, the proceeds of the Revenue Bonds were placed in an escrow account and
have not yet been spent; and
WHEREAS, the Authority and the City desire to have the proceeds released from the
escrow account and to build a civic center and hotel project; and
WHEREAS, in connection with the release of the proceeds from the escrow account, the
Revenue Bonds must be restructured and possibly refunded; and
WHEREAS, to facilitate this process, it is desirable to pledge additional moneys for the
payment of the Revenue Bonds and for the operation and maintenance of the civic center and
hotel project, until the tax increment revenues within the boundaries of the Authority are
sufficient for such purposes; and
WHEREAS, the City Council has determined that the best source of moneys for such
purposes is the portion of the City's sales and use tax moneys which are presently allocated as
a fee to the retailers who collect the sales and use tax for the City (the "Vendors' Fee "); and
WHEREAS, the Vendors' Fee is presently allocated according to a provision in the Sales
and Use Tax Ordinance of the City, adopted initially by a vote of the City's electorate in 1967;
and
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WHEREAS, Section 18 -5 of the Charter of the City requires that such ordinances be
amended only upon a vote of the electorate; and
WHEREAS, the construction of the civic center and hotel project is in the best interests
of the City and its inhabitants and will benefit the health, welfare and safety of the citizens of
the City; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The question of allowing the restructuring and possible refunding of the Revenue Bonds
and Ordinance No. 5810, amending the Sales and Use Tax Ordinance to authorize the amount
of the Vendors' Fee to be pledged for operations and maintenance of the Authority and for
payment of the Revenue Bonds, shall be submitted to a vote of the eligible electors of the City
to be held on November 2, 1993. The ballot titles (submission clauses and titles) therefor shall
be as follows:
QUESTION NO. 2
SHALL THE URBAN RENEWAL AUTHORITY OF PUEBLO, COLORADO
DEBT BE INCREASED UP TO $9,500,000, WITH A REPAYMENT COST OF
UP TO $ 23,158,725 , by the issuance of revenue bonds in a principal amount
not to exceed $9,500,000, at a net effective interest rate not to exceed 8 %
per annum and with a maturity date not to exceed 25 years from the date of
issuance, for the purpose of providing funds for the acquisition, construction and
equipping of a civic center and hotel complex and certain other improvements for
the benefit of the public, all within the boundaries of the Urban Renewal
Authority of Pueblo, Colorado, and the payment of certain costs associated
therewith, such bonds to be payable from incremental property and sales tax
revenues collected in accordance with Urban Renewal Authority Act within the
boundaries of the Urban Renewal Authority of Pueblo, Colorado and three and
three- tenths percent (3.30%) of the City of Pueblo, Colorado's revenue from its
existing sales and use tax, such bonds to be issued, dated and sold at such time
or times and in such manner and to contain such terms, not inconsistent herewith,
as the Board of Commissioners of the Urban Renewal Authority of Pueblo,
Colorado may determine, which authorization may include the authorization to
refund such bonds and refunding bonds without additional voter approval; and
shall the proceeds of such bonds and refunding bonds and the revenues from such
taxes and any earnings from the investment of such proceeds and revenues
(including any revenues required to satisfy the terms of any rate covenant,
coverage requirement or similar provision in the documents relating to such bonds
and refunding bonds) be collected and spent without limitation or condition, and
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without limiting the collection or spending of any other revenues or funds by the
Authority or the City under Article X, Section 20 of the Colorado Constitution
or any other law?
YES
NO
QUESTION NO. 3
Shall Ordinance No. 5810 (a copy of which is on file at the office of the City
Clerk) of the City of Pueblo, Colorado be approved, which ordinance amends
Chapter 4 of Title XIV of the Code of Ordinances of Pueblo, Colorado and
authorizes the City to use three and three- tenths percent (3.30 %) of the City's
sales and use tax revenue, which is presently being retained by retailers who
collect such tax on behalf of the City, for one or more of the following purposes,
as determined by the City Council: (1) paying the operation and maintenance
expenses of a proposed civic center and hotel complex within the Urban Renewal
Authority of Pueblo, Colorado, (2) paying the principal of, premium, if any, and
interest on revenue bonds of the Urban Renewal Authority of Pueblo, Colorado
issued in the aggregate principal amount of $9,500,000 to finance such civic
center and hotel complex, or any bonds issued to refinance such bonds, and /or
(3) reimbursing retailers for their costs incurred in collecting and remitting the
sales and use tax revenues to the City, and particularly authorizing the City
Council to pledge irrevocably such three and three- tenths percent (3.30 %) of the
City's sales and use tax revenue to the payment of the principal of, premium, if
any, and interest on such bonds, or any bonds refinancing such bonds, and to the
payment of the operation and maintenance expenses of such proposed civic center
and hotel complex; and shall the revenues derived from such three and three -
tenths percent (3.30%) of the City's sales and use tax revenue be collected and
spent without limitation or condition, and without limiting the collection or
spending of any other revenues or funds by the City under Article X, Section 20
of the Colorado Constitution or any other law?
FOR THE ORDINANCE
AGAINST THE ORDINANCE
SECTION 2.
The officers of the City are authorized and directed to take all action necessary,
appropriate or required to effectuate the provisions of this Ordinance.
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SECTION 3.
This Ordinance shall become effective upon final passage.
INTRODUCED: July 26, 1993
By CHRIS WEAVER
Councilperson
ATTEST: APPROVED
ity Clerk President f the City Council
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