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HomeMy WebLinkAbout06000ORDINANCE NO. 6000 AN ORDINANCE SUBMITTING TO THE ELIGIBLE ELECTORS OF THE CITY OF PUEBLO, COLORADO AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 7, 1995, A QUESTION RELATING TO LIMITED TAX GENERAL OBLIGATION BONDS OF THE CITY OF PUEBLO, COLORADO FOR THE FINANCING OF THE HISTORIC ARKANSAS RIVERWALK PROJECT WHEREAS, the City of Pueblo, Colorado (the "City ") has previously established a program for improving the area within the City immediately adjacent to the Arkansas River and commonly known as the Historic Arkansas Riverwalk Project ( "HARP "); and WHEREAS, the City has determined that the most appropriate mechanism for financing HARP is through the issuance by the City of limited tax general obligation bonds (the "Bonds "); and WHEREAS, the City anticipates that the Bonds will need to be issued in an amount not to exceed $12,850,000 for the financing of HARP, with an annual debt service payment on the Bonds not to exceed $1,100,000; and WHEREAS, the City anticipates that its revenues will exceed its normal spending limit, as set pursuant to Article X, Section 20 of the Colorado Constitution, although such excess revenues cannot be assured; and WHEREAS, the City desires to ask the electors of the City, pursuant to Article X, Section 20 of the Colorado Constitution, to approve the issuance and repayment of the Bonds, which repayment is anticipated to cost approximately $1,100,000 annually, and to permit the City to retain up to $1,100,000 annually of any such excess revenues to apply to the payment of the principal of, premium, if any, and interest on the Bonds; and WHEREAS, if such excess revenues are not available in an amount sufficient to pay the debt service on the Bonds, the City will have to use moneys from the general fund or other available legal sources; and WHEREAS, the City Council hereby determines that the financing of HARP 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 authorizing the issuance of limited tax general obligation bonds shall be submitted to a vote of the eligible electors of the City at the City's general municipal election to be held on November 7, 1995. The ballot question (submission clause & title) therefor shall be as follows: QUESTION NO. B - (HISTORIC ARKANSAS RIVERWALK PROJECT BONDS) SHALL CITY OF PUEBLO, COLORADO DEBT BE INCREASED BY UP TO $12,850,000 WITH A REPAYMENT COST OF UP TO $22,000,000 FOR THE PURPOSE OF FINANCING THE CITY'S HISTORIC ARKANSAS RIVERWALK PROJECT, BY THE ISSUANCE AND PAYMENT OF LIMITED TAX GENERAL OBLIGATION BONDS IN A PRINCIPAL AMOUNT NOT TO EXCEED $12,850,000, AT AN AVERAGE INTEREST RATE NOT TO EXCEED 6.67% PER ANNUM AND WITH A FINAL MATURITY DATE NOT TO EXCEED 20 YEARS FROM THE DATE OF ISSUANCE, SAID 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 CITY COUNCIL MAY DETERMINE, SAID BONDS TO BE PAID FROM AVAILABLE CITY FUNDS, WITHOUT ANY INCREASE IN THE CURRENT RATE OF PROPERTY TAXES; AND, IN CONNECTION THEREWITH, SHALL THE CITY'S AD VALOREM PROPERTY TAXES BE PLEDGED, WITHOUT ANY INCREASE IN THE CURRENT RATE OF SAID TAXES, FOR THE PURPOSE OF PAYING, AND AN AMOUNT THEREOF SUFFICIENT BE APPLIED TO PAY, THE PRINCIPAL OF AND PREMIUM, IF ANY, AND INTEREST ON SAID BONDS WHEN DUE, AND SHALL THE CITY BE AUTHORIZED TO INCREASE ITS ANNUAL REVENUE AND SPENDING LIMIT UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION BY $1,100,000 PER YEAR FOR DEBT SERVICE ON SAID BONDS AND FOR INVESTMENT INCOME ON THE BOND PROCEEDS AND ON THE DEBT SERVICE, ALL FOR THE TERM OF SAID BONDS? YES NO 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. SECTION 3 This Ordinance shall become effective upon final passage. INTRODUCED: July 24, 1995 By Al Gurule Councilperson APPROVED: President o City Council ATTEST: City Cler