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HomeMy WebLinkAbout16416RESOLUTION NO. 16416 A RESOLUTION DECLARING THE INTENT OF THE CITY OF PUEBLO, COLORADO TO ISSUE REVENUE BONDS IN CONNECTION WITH FINANCING RESIDENTIAL FACILITIES FOR LOW -AND MIDDLE- INCOME FAMILIES OF PERSONS WHEREAS, the City of Pueblo, a home rule city and Colorado municipal corporation (the "City") has been awarded $7,675,759 (the "2026 Allocation") of 2026 private activity bond volume cap allocation for the State of Colorado (the "State") and its issuing authorities (the "State Ceiling") computed under Section 146(d) of the Internal Revenue Code of 1986, as amended (the "Code"), and under the Colorado Private Activity Bond Ceiling Allocation Act, Part 17 of Article 32 of Title 24, Colorado Revised Statutes, as amended (the "Allocation Act"), for use in the issuance of private activity bonds; and WHEREAS, the County and Municipality Development Revenue Bond Act, constituting Article 3 of Title 29, Colorado Revised Statutes, as amended (the "Act"), and the Supplemental Public Securities Act, constituting Title 11, Article 57, Part 2, Colorado Revised Statutes, as amended (the "Supplemental Act"), authorizes the City to finance or refinance one or more projects to the end that residential facilities for low- and middle -income families or persons, intended for use as the sole place of residence by the owners or intended occupants, may be provided in order to promote the public health, welfare, safety, convenience and prosperity; and WHEREAS, in order to carryforward the City's 2026 Allocation, the City wishes to declare its intention to issue single family or multifamily revenue bonds, in one or more series, in connection with financing residential facilities for low- and middle -income families or persons intended for use as the sole place of residence by the owners or intended occupants thereof, which facilities will be located within the boundaries of the City and other participating jurisdictions; and WHEREAS, the City intends to issue single family or multifamily revenue bonds, in one or more series, in an amount not to exceed $7,675,759 of its direct private activity bond volume cap allocation for 2026 (plus any additional amounts that the City may be awarded from the statewide balance pursuant to the Allocation Act); and WHEREAS, such private activity bond volume cap allocation shall be utilized by the City pursuant to the Allocation Act; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that SECTION 1. In order to benefit the residents of the City, the City hereby declares its intent to issue its revenue bonds to finance single family or multifamily projects in one or more series (the "Bonds") in an aggregate principal amount not to exceed $7,675,759 (plus any additional amounts that the City may be awarded from the statewide balance pursuant to the Allocation Act), which shall be used in connection with financing residential facilities for low- and middle - income families or persons intended for use as the sole place of residence of the owners or intended occupants thereof, which residential facilities shall be located within the boundaries of the City and other participating jurisdictions. SECTION 2 In connection with the management and preservation of the City's private activity bond volume cap allocations, the City is hereby authorized to execute any Internal Revenue Service ("IRS") form and to enter into assignment agreements and delegation agreements with other Colorado "issuing authorities" as defined in Section 24-32-1703(12), Colorado Revised Statutes, as amended. The Mayor, the City Attorney, the Housing Coordinator, or any other authorized representative of the City is hereby authorized and directed to execute any such IRS form and to execute and deliver any assignment agreements or delegation agreements and any other documents that are necessary in order to manage and preserve the City's private activity bond volume cap allocations. It is the specific intent of the City Council (the "City Council") that this Resolution shall also apply to any amounts that are awarded to the City from the statewide balance or other issuing authorities pursuant to the Allocation Act. The appropriate officers of the City are hereby authorized to apply for an award from the statewide balance pursuant to the Allocation Act. SECTION 3 The City Council hereby finds, determines, recites and declares that the Bonds shall not constitute any multiple -fiscal year or indirect debt or other financial obligation whatsoever of the City or the State or any political subdivision of the State within the meaning of any provision or limitation of the State Constitution or statutes, and the Bonds shall not constitute or give rise to a pecuniary liability of the City or a charge against the City's general credit or taxing powers, or ever be deemed to be an obligation or agreement of any council member, officer, director, agent or employee of the City in such person's individual capacity, and none of such persons shall be subject to any personal liability by reason of the issuance of the Bonds. SECTION 4. The City Council hereby finds, determines, recites and declares that the issuance of the Bonds in connection with financing such residential facilities will promote the public purposes set forth in the Act, including, without limitation, assisting persons or families of low -and middle - income in obtaining adequate, safe and sanitary housing. SECTION 5. The City Council hereby finds, determines, recites and declares the City's intent that this Resolution constitutes an official indication of the present intention of the City to issue the Bonds, as herein provided. SECTION 6. All actions not inconsistent with the provisions of this Resolution heretofore taken by the City Council or any officer or employee of the City in furtherance of the issuance of the Bonds are hereby ratified, approved and confirmed. SECTION 7. All prior acts, orders or resolutions, or parts thereof, of the City in conflict with this Resolution are hereby repealed, except that this repealer shall not be construed to revive an act, order or resolution, or part thereof, heretofore repealed. SECTION 8. If any section, paragraph, clause or provision of this Resolution shall be adjudged to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining sections, paragraphs, clauses or provisions of this Resolution. SECTION 9. All bylaws, orders or resolutions, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency, and, if so repealed, no other bylaw, order or resolution, or part thereof, shall be revived. .qFr.TInN 1n The City Council hereby appoints Kutak Rock LLP as bond counsel in connection with the issuance of the Bonds. SECTION 11. This Resolution shall take effect immediately upon its adoption. INTRODUCED: August 24, 2026 BY: Roger Gomez MEMBER OF CITY COUNCIL APPROVED: PRESIDENT OF CITY COUNCIL ATTESTED BY: CITY CLERK City Clerk's Office Item # 04 COUNCIL MEETING DATE: August 24, 2026 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Clyde Bishop, City Clerk FROM: Melissa Cook, Director Department of Housing & Citizen Services SUBJECT: A RESOLUTION DECLARING THE INTENT OF THE CITY OF PUEBLO, COLORADO TO ISSUE REVENUE BONDS IN CONNECTION WITH FINANCING RESIDENTIAL FACILITIES FOR LOW -AND MIDDLE - INCOME FAMILIES OF PERSONS SUMMARY: This Resolution will allow the City of Pueblo to carry forward its $7,675,759 2026 Private Activity Bond volume cap allocation and declares the City's intent to issue single family or multifamily revenue bonds, in one or more series, to finance residential facilities for low- and middle -income families or persons. The Resolution also authorizes actions necessary to manage and preserve the allocation, including IRS filings, assignment or delegation agreements, and applications for additional allocation from the statewide balance. Kutak Rock LLP is appointed as bond counsel in connection with the issuance of the Bonds. PREVIOUS COUNCIL ACTION: Not applicable to this Resolution BACKGROUND: Each year, Pueblo receives a portion of Colorado's federal tax-exempt Private Activity Bond (PAB) volume cap based on population. For 2026, the City has been awarded $7,675,759. Under the Colorado Private Activity Bond Ceiling Allocation Act, unused allocation may be carried forward for eligible purposes if the City takes the required action before the statutory deadline. This Resolution preserves the City's 2026 allocation and expresses the City's intent to use the allocation to finance eligible single family or multifamily residential facilities for low- and middle -income families or persons located within the City and other participating jurisdictions. The Resolution also allows the City to seek or accept additional allocation from the statewide balance or other issuing authorities. FINANCIAL IMPLICATIONS: The Resolution does not create a multiple -fiscal year or indirect debt or other financial obligation of the City. Any Bonds issued under the Resolution will not constitute a pecuniary liability of the City or a charge against the City's general credit or taxing powers. BOARD/COMMISSION RECOMMENDATION: Not applicable for this Resolution. STAKEHOLDER PROCESS: Not applicable for this Resolution. ALTERNATIVES: If the Resolution is not approved and the City does not otherwise preserve or use its 2026 allocation by September 15, 2026, the unused allocation will be automatically relinquished to the statewide balance for use by other issuing authorities in Colorado. RECOMMENDATION: The Department of Housing and Citizen Services recommends approval of the Resolution. ATTACHMENTS: 1. 2026 Pueblo (City of) Carryforward - IRS Form 8328 2. 2026 Pueblo (City of) Carryforward - Opinion 3. 2026 Pueblo (City of) Carryforward - PAB Certificate