HomeMy WebLinkAboutOrd 2004-06 I
ORDINANCE NO. 04-06
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, APPROVING FUNDING SOURCES FOR
THE CIVIC CENTER PHASE II PROJECT.
WHEREAS, the Mayor and Council of the Town of Fountain Hills (the "Town
Council") amended the Town of Fountain Hills (the "Town") Financial Policies to include a new
section, entitled "Debt Policy" (the "Policy"), on August 21, 2003, in Resolution No. 2003-50;
and
WHEREAS, the Policy provides for intergenerational equity through debt financing and
a"pay-as-you-go" philosophy with respect to capital improvement projects; and
WHEREAS, the Town Council has undertaken the capital improvement project to
complete the Civic Center Phase II (the "Project"); and
WHEREAS, the Town Council desires to fund the Project with a combination of "pay-
as-you-go" and debt financing; and
WHEREAS, on August 3, 2000, the Town Council adopted Ordinance No. 00-12,
increasing the Town's transaction privilege tax by 0.4% (the "Tax Increase"), 0.3% of which was
designated for McDowell Mountain preservation (the "Mountain Portion") and 0.1% of which
was designated for downtown development; and
WHEREAS, the Town Council subsequently issued bonds to purchase real property in
the McDowell Mountains (the "Mountain Bonds"); and
WHEREAS, the Mountain Portion of the Tax Increase generates an amount (the "Tax
Surplus") well in excess of the debt service payments required for the Mountain Bonds; and
WHEREAS, the Town Council desires to use the Tax Surplus as a source of revenue for
debt financing to fund a portion of the Project.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS as follows:
SECTION 1. That the Town Council hereby authorizes partially funding the Project with
the portion of the Tax Surplus generated after the date of this Ordinance, not to exceed 1/3
(0.1%) of the Mountain Portion of the Tax Increase.
SECTION 2. That, in no event shall such utilization of a portion of the Tax Surplus
impair the Town's ability to (i) meet its obligations with respect to retiring the Mountain Bonds
or(ii)retire the Mountain Bonds prior to their scheduled pay-off date.
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SECTION 3. That the Tax Surplus generated prior to the date of this Ordinance shall not
be utilized to fund the Project.
SECTION 4. That the Town Council hereby authorizes and directs the Town Manager to
take all steps necessary to permit the Project to be funded from the following sources: (i) newly
issued excise tax bonds in the amount of approximately $3.5 Million (utilizing the Tax Surplus
as a source of repayment), (ii) grants, (iii) FY03-04 budget savings, (iv) General Government
and Law Enforcement Development Fees, (v) advertising sales tax, (vi) residential rental sales
tax, (vii) proceeds from sale of assets and (viii) General Fund revenues earmarked for capital
expenditures.
SECTION 5. That the Mayor, the Town Manager, the Town Clerk and the Town
Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose
and intent of this Ordinance.
PASSED AND A OPTED BY the Mayor and Council of the Town of Fountain Hills,
Arizona,March 18, 2004,:`
FOR T F FOUNTAIN S: ATTESTED TO:
/L � <
BevelynJ.Be der,J. Nic ols,Mayor own Clerk
REV D BY•'G APP VED AS TO FORM:
% am-
imothy G. Pickering,Tow anager Andrew J. McGuire, own Attorney
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