HomeMy WebLinkAbout07901ORDINANCE NO. 7901
AN ORDINANCE AMENDING ORDINANCE NO. 7874
RELATING TO THE MAXIMUM NET EFFECTIVE
INTEREST RATE OF THE CITY OF PUEBLO, COLORADO
MUNICIPAL BUILDING CORPORATION CERTIFICATES
OF PARTICIPA -TION, SERIES 2008 (POLICE COMPLEX
PROJECT)
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate
matter being deleted, underscoring indicates new matter being added)
SECTION 1
Section 5 of Ordinance No. 7874 is hereby amended to read as follows:
The City Council hereby authorizes and consents to the issuance
and sale of the Certificates pursuant to the Indenture. The City Council
hereby authorizes and approves the form, terms and provisions of the
Certificates contained in the Indenture, in substantially the form and with
substantially the same content as that presented at the September 8,
2008 [to this] meeting of the City Council; provided, that the principal
amount of the Certificates shall not exceed $25,500,000 and the net
effective interest rate of the Certificates as a whole upon issuance shall
not exceed [5.5] 6_5 %. The City Clerk and the President of the City
Council are hereby authorized and directed to affix their facsimile
signatures and the City seal, or a facsimile thereof, to authenticate the
Certificates, as provided in the Lease and the Indenture.
In addition, the City Council approves the sale of the Certificates to
an underwriter chosen on the basis of requests for proposals, by the City's
City Manager, the City's Director of Finance and the City's Financial
Advisor.
RFr.T1nIV 9
Due to the unprecedented volatility and rapid changes in the financial markets
and the pressing need to timely obtain financing for the construction of the Police
Complex Project, the City Council hereby finds, determines and declares that this
Ordinance is necessary for the immediate preservation and protection of the public
health, property, safety and welfare.
SECTION 3
This Ordinance shall become effective upon final passage and approval, except,
that, this Ordinance shall automatically be repealed if the City of Pueblo, Colorado
Municipal Building Corporation Certificates of Participation, Series 2008 (Police
Complex Project) are marketed with a net effective interest rate as a whole upon
issuance of 5.5% or less on or before November 20, 2008.
INTRODUCED October 14, 2008
AGENDA ITEM # 1
DATE: October 14, 2008
DEPARTMENT: Law Department
TITLE
AN ORDINANCE AMENDING ORDINANCE NO. 7874 RELATING TO THE MAXIMUM
NET EFFECTIVE INTEREST RATE OF THE CITY OF PUEBLO, COLORADO
MUNICIPAL BUILDING CORPORATION CERTIFICATES OF PARTICIPATION,
SERIES 2008 (POLICE COMPLEX PROJECT)
ISSUE
Should City Council authorize the issuance of the Police Complex Certificate of
Participation at a net effective interest rate not to exceed 6.5 %?
RECOMMENDATION
Approve the Ordinance.
BACKGROUND
Due to unprecedented volatility and rapid changes in the financial markets, and in order
to timely market the Certificates of Participation from the Police Complex Project
( "Certificates "), it may be necessary to increase the maximum net effective interest rate
of the Certificates from 5.5% to 6.5% which would increase the debt service on the
Certificates. This Ordinance is presented as an emergency Ordinance under Section 3-
20 of the Charter. First presentation will be on October 14, 2008 and second
presentation will be at a special council meeting to be held October 20, 2008.
FINANCIAL IMPACT
See Background.