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Home My WebLink AboutRes 1999-22c r RESOLUTION NO.1999-22 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF THE TOWN OF FOUNTAIN HILLS,ARIZONA,COTTONWOODS IMPROVEMENT DISTRICT IMPROVEMENT BONDS;AUTHORIZING THE TOWN'S ACCOUNTING SUPERVISOR TO PURCHASE THE BONDS;AND PRESCRIBING TERMS AND PROVISIONS OF THE BONDS. WHEREAS,the Superintendent of Streetshasleviedandrecordedan assessment for Town of FountainHills,Arizona,Cottonwoods Improvement District improvement project(the "Project")andtheSuperintendent of Streetshasexecuted,andtheMayorhascountersigned,a warrant to collect the several assessments;and WHEREAS,the warrant and assessment have been returned;and WHEREAS,Section48-597(C),ArizonaRevisedStatutes,providesthattheMayor andCouncilmaydirectthat improvement bondsbeissuedinanamountwhichshallnotexceedthe amount of unpaidassessmentsexceeding$25.00asmaybeshownonthecertifiedlist of unpaid assessments;and WHEREAS,such certified listhasbeenfiledwiththeClerkbythe Superintendent of Streetsshowingthattheamount of assessmentsremainingunpaidexceeding$25.00perassessment is $33,082.70 andthe Town maycause bonds tobeissued;and WHEREAS,the Mayor andCouncilhavedeterminedthattheTownwillpurchase theBondsandtheAccounting Supervisor willaddtheBondstothe Town's investment portfolio; and WHEREAS,bythis resolution the Mayor and Council desireto(1)authorizethe issuance of improvementbondspayablefromunpaidspecialassessmentsleviedagainstlotsor parcels of landbenefittingfromsuchimprovement;(2)settheform of suchbonds;(3)providefor issuanceanddelivery of suchbondstotheTown;(4)orderthebondstobe purchased bytheTown; (5)providefortherepayment of theBonds;and(6)ratifyandconfirmallprioracts of thisCouncil, theAccountingSupervisor,the Superintendent of StreetsandtheTownClerkwithrespecttothe Project; NOW,THEREFORE,BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS,ARIZONA,that: Section 1.Authorization and Terms.Town of Fountain Hills,Arizona, CottonwoodsImprovementDistrictImprovementBonds(the"Bonds")areherebyauthorizedtobe issued,said Bonds tobedatedthedate of initial delivery,inatotal principal amount of $33,082.70 bearinginterestfromtheirdatetothematurity of each of theBondsattherate of 5.25%perannum, saidinterestpayableJanuary1andJuly1 of eachyearbeginningJanuary1,2000.TheBondswill matureonJanuary1intheyears2000to2009,inclusive,asfollows: -1 - SWR:gmh 302662.01 5/18/99 Maturity Principal Maturity Principal Date Amount Date Amount January 1,2000 $3,308.27 January 1,2005 $3,308.27 January 1,2001 3,308.27 January 1,2006 3,308.27 January 1,2002 3,308.27 January 1,2007 3,308.27 January 1,2003 3,308.27 January 1,2008 3,308.27 January 1,2004 3,308.27 January 1,2009 3,308.27 Section 2.Prior Redemption.TheBondsaresubjecttoredemptionprior maturity,inwholeorinpart,attheoption of theTownonanyinterestpaymentdateataprice of par plusaccruedinterestbutwithoutpremium. Section 3.Form of Bonds.Said Bonds shall bear such terms and be in the form of Exhibit Aattachedhereto,allowing those executing said Bonds to make such insertions or deletionsasmaybenecessaryto complete theBondsand conform the Bonds to Arizona law. Section 4.Execution of Bonds.TheBondsshallbeexecutedbytheMayorand attestedbytheClerkbytheirfacsimilesignatures. If an officer whose signature isona Bond no longer holds that office atthe time the Bondis authenticated and registered,the Bond shall nevertheless bevalid. Section 5.Mutilated.Lost or Destroyed Bonds.In case any Bond becomes mutilated or destroyed orlost,the Town shallcausetobe executed and delivered anew Bond of like dateandtenorinexchangeand substitution foranduponthe cancellation of such mutilated Bondor inlieu of andinsubstitutionforsuchBonddestroyedorlost,upontheregisteredowner'spayingthe reasonableexpensesandcharges of theTowninconnectiontherewithand,inthecase of theBond destroyedorlost,filingwiththeTownbytheregisteredownerevidencesatisfactorytotheTownthat suchBondwasdestroyedorlost,andfurnishingtheTownwithasufficient indemnity bondpursuant to§47-8405,Arizona RevisedStatutes. Section 6.Sale of Bonds to Purchaser.The Town will purchase the Bonds at theprice of parbutwithoutpremium.TheAccountingSupervisorisherebyauthorizedanddirected topurchasetheBondsfromavailablemoneysandthereaftercausetheBondstobedeliveredtothe Townuponreceipt of paymentthereforandsatisfaction of theotherconditionsfordeliverythereofin accordance with the terms of the sale. Section 7.Funds and Accounts.The following fundsand accounts are hereby created: 1.Bond Fund,which shall include: -2 SWR:gmh 302662.01 5/18/99 \ii%fy0j/ \ajjjjilis*' A.Principal Account B.Interest Account 2.Construction Fund. Section 8.Use of Moneys. A.ThemoneysintheBondFundshallbeheldbytheTownandusedtopay principal or interest oneach bond payment date.The Accounting Supervisor shallmakesuch arrangements asare necessary to provide forthe collection and payment of theassessmentsandfor the payment of the Bonds fromthe assessments. B.All moneys directed bythis Resolution tobe placed inthe Bond Fundshallbe invested pending payments tothe paying agentin "Investment Securities"."Investment Securities" are hereby defined asany securities in which sinking funds of thestatemaybeinvested. C.All moneys received by the Town fromthe collections of the installments of principalandinterestontheassessmentshallbeallocatedastoprincipalandinterestanddepositedto the proper account.Prepayments of assessmentsmaybeheldinaseparateaccountanddeposited intothe Principal Account and Interest Account as may be necessary. Section 9.Use of Proceeds.The amounts received from the sale of the Bonds togetherwiththeTown'scontributionshallbeplacedintheConstructionFundandusedtopay,or reimburse the Town for,the cost of construction of the work described in Resolution No.1998-07 (the Resolution of Intention)andtopay,orreimbursetheTownfor,allincidentalexpensesincluding but not limited to: (a)engineering expenses; (b)legal fees and expenses; (c)printing,posting,publication and mailing expenses;and (d)title and environmental reports. This Resolution shall be construed as consent of the Mayor and Council to invest suchfunds, pending use,inany of the securities allowedbylaw. Section 10.Town Contribution.The Town will make a contribution to the Construction Fund inan amount necessary to pay the deficiency infunds created bythe construction bid being over the engineer's estimate of costsand expenses. Section 11.Resolution a Contract.This resolution shall constitute a contract between the Town andthe registered owners of the Bonds andshallnotbe repealed or amended in any manner which would impair,impede orlessentherights of the registered owners of theBonds then outstanding. -3- SWR.gmh 302662.01 5/18/99 Section 12.Severability.If anysection,paragraph,subdivision,sentence,clause orphrase of thisresolutionisforanyreasonheldtobeillegalorunenforceable,suchdecisionwill notaffectthevalidity of theremainingportions of thisresolution.TheMayorandCouncilhereby declarethattheTownwouldhaveadoptedthisresolutionandeachandeveryothersection, paragraph,subdivision,sentence,clauseorphrase hereof andauthorizedtheissuance of theBonds pursuant heretoirrespective of thefactthatanyoneormoresections,paragraphs,subdivisions, sentences,clausesor phrases of this resolution maybeheldillegal,invalid or unenforceable. Section13.Ratification of Actions.Allactions of theofficersandagents of the Townwhichconformtothe purposes andintent of this resolution andwhichfurthertheissuanceand sale of the Bonds as contemplated bythis resolution whether heretofore or hereafter takenshallbe andareherebyratified,confirmed andapproved.The proper officersandagents of theTownare hereby authorized and directed todoallsuchactsand things andto execute and deliver allsuch documents on behalf of the Town as may be necessary to carry out the terms and intent of this resolution. PASSED AND ADOPTED on May 20,1999. Clerk APPROVED AS TO FORM: Special Couiisel -4- SWR:gmh 302662.01 5/18/99 ATTEST: CERTIFICATION I,Cassie B.Hansen,the duly appointed and acting Town Clerk of theTown of Fountain Hills,Arizona,do hereby certify thatthe above and foregoing Resolution No.1999-22was dulypassedbytheTownCouncil of theTown of FountainHills,Arizona,ataregularmeetingheld on May 20,1999,and the vote was 7 aye's and _0^nay's and that the Mayor and _(o Council Members were present thereat. DATED:D\&^^o ,1999. Town Clerk SWR:gmh 302662.01 5/18/99 \$$^jl/ \^Mj^ EXHIBIT A TOWN OF FOUNTAIN HILLS,ARIZONA COTTONWOODS IMPROVEMENT DISTRICT IMPROVEMENT BOND Number:1 Interest Rate 5.25% Denomination:$33,082.70 OriginalIssueDate ,1999 Maturity Date Principal Amount Maturity Date January 1,2000 January 1,2001 January 1,2002 January 1,2003 January 1,2004 $3,308.27 3,308.27 3,308.27 3,308.27 3,308.27 January 1,2005 January 1,2006 January 1,2007 January 1,2008 January 1,2009 Registered Owner:Town of Fountain Hills,Arizona Principal Amount:$33,082.70 Principal Amount $3,308.27 3,308.27 3,308.27 3,308.27 3,308.27 KNOW ALL MEN BY THESE PRESENTS: ThattheTown of FountainHills,Arizona,adulyorganizedmunicipalcorporation,promisesto payas hereinafter statedtothe registered owneronthematuritydate,theprincipalamount,togetherwithinterest onsaidsumfromthedate hereof attheinterestrateperannum(allasstatedabove),suchinterestpayablesemi annuallyonthefirstdays of JanuaryandJuly of eachyearcommencingJanuary1,2000.Interestwillbepaidby check payable tothe order of and mailed,when due,tothe registered owner atthe address shownonthe registration books maintained bythe registrar attheclose of business onthe15thday of the calendar monthnext preceding the respective interest payment date.Theprincipaland premium,if any,willbepaidwhenduetothe registeredownerupon surrender of thisbondforpaymentatthe office of theAccountingSupervisor of theTown of Fountain Hills,16836 E.Palisades,Building C,Fountain Hills,Arizona. This bond is issued in pursuance of law,and represents anissue of bonds forthetotalsum of THIRTY-THREE THOUSAND,EIGHTY-TWO AND70/100 DOLLARS ($33,082.70),issued forthatcertain improvementinsaid municipality knownasTown of FountainHills,Arizona,CottonwoodsImprovementDistrict, andispayableonlyout of thespecialfundtobecollectedfromspecialassessmentsimposedonthelotsorparcels of landfrontingonor benefitted bysaidimprovement.Saidspecialfundissetapartbylawforthepayment of saidbonds,andcanbeusedfornootherpurpose.Itisherebycertifiedanddeclaredthattheimprovementfor whichthisissue of bondsisissuedis authorized bylaw,thatallacts,conditionsandthingsrequiredtobedone, precedenttoandintheissuing of thesebonds,havebeendoneand performed inregularanddueformasrequired bythe laws of the State of Arizona,andall ordinances andall resolutions of the Town of Fountain Hills,thatthe special assessments out of whichsaidbondsaretobepaidarefirstliensonthepropertyassessed,subjectonlyto thelienforgeneraltaxesand prior special assessments,andany bona fide purchaser forvalue of thisbondhasthe righttorelyonthe recitals herein contained.Fortheassessmentor reassessment,collectionandpayment of said special assessments,thefullfaithand diligence of said Town are hereby irrevocably pledged. This bond may be exchanged fora bond or bonds of like aggregate principal amount inauthorized denominations having the same maturity dateand interest rate. A-1 SWRrgmh 302663.01 5/7/99 (The Bonds are subject tocallfor redemption priortotheir stated maturity dates,atthe option of ^^the Town,in whole or in part,at a price ofpar plus accrued interest but without premium. Thisbondmaybetransferredorexchangedbytheregisteredownerinpersonorbyattorneyduly authorizedinwritingattheoffice of theAccountingSupervisor of theTown of FountainHills,16836 E.Palisades, BuildingC,FountainHills,Arizona,uponsurrenderandcancellation of thisbond,butonlyinthemannerand subjecttothelimitationanduponpayment of thechargesprovidedintheauthorizingresolution.Uponsuch transferanewbondorbonds of thesamematurityandinterestrateandinthesameaggregateprincipalamount willbeissuedtothetransfereeinexchange.TheTownhaschosenthefifteenthday of themonthprecedingan interestpaymentdateastherecorddateforthesebonds.Shouldthisbondbesubmittedtotheregistrarfortransfer duringtheperiodcommencingaftertheclose of businessontherecorddateandcontinuingtoandincludingthe nextsubsequentinterestpaymentdate,ownershipwillbetransferredinthenormalmannerbuttheinterest paymentwillbemadepayabletoandmailedtotheregisteredowner Bonds of thisissueare issuable only infully registered forminthe denomination of $5,000each orintegral multiples thereof. TheTownmaytreattheregisteredowner of thisbondastheabsoluteownerforthepurpose of receivingprincipalandinterestandforallotherpurposesandnone of themshallbeaffectedbyanynoticetothe contrary. Thisbondisprohibitedbylawfrombeingissuedincouponor bearer form. IN WITNESS WHEREOF,the Town of Fountain Hills,Arizona,has caused this bond tobe i^,signed in its name by the Mayor and attested by the Clerk of said Town. TOWN OF FOUNTAIN HILLS,ARIZONA ATTEST: Mayor Town Clerk A-2 SWR:gmh 302663.01 5/7/99