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Home My WebLink About2016 Ordinance No. 052ORDINANCE NO.~ SERIES OF 2016 BY AUTHORITY COUNCIL BILL NO. 51 INTRODUCED BY COUNCIL MEMBER GILLIT AN ORDINANCE ESTABLISHING THE 2016 GENERAL OBLIGATION BOND MILL LEVY COLLECTED IN 2017 FOR THE CONSTRUCTION OF A NEW ENGLEWOOD POLICE DEPARTMENT HEADQUARTERS BUILDING. WHEREAS, Article X, Section 20 of the Colorado Constitution, commonly known as TABOR restricts the City from raising mill levies without a vote of the citizens; and WHEREAS, on November 8, 2016 the citizens of Englewood passed Ballot Issue No. 2C for a General Obligation Bond; and WHEREAS, passage of Ballot Issue No. 2C authorized the City to issue $27 million in General Obligation Bonds for the purpose of financing the acquisition, construction, and related capital improvements for use as a new Englewood Police Department Headquarters Building; and WHEREAS, the mill levy enacted by this Ordinance is an incremental addition to mills to be levied and certified for the year 2016; and WHEREAS, the mill levy enacted by this Ordinance will cover two payments to cover the debt service associated with the Series 2017 Bonds, and was expressly allowed under the language in the Ballot Issue; and WHEREAS, based upon the assessed valuation for the City of Englewood, as certified by Arapahoe County Assessor, the estimated new assessed value of all properties in Englewood for 2016 is $575,373,717; and WHEREAS, the 2016 Mill to be collected in 2017 for the General Obligation Bond Debt Service for the construction of the new Englewood Police Department Headquarters Building is 3.819 mills; and WHEREAS, the amount budgeted for the General Obligation Bond will be $2,200,000. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT : Section 1. That there be and hereby is levied for the year of 2016, due and payable as required by statute in the year 2017, an incremental tax ofJ.819 mills on the dollar for the General Obligation Bond Debt Service Fund of the City of Englewood, Colorado. That the levy hereinabove set forth shall be levied upon each dollar of the assessed valuation of all taxable property within the corporate limits of the City of Englewood, Colorado, and the said levy shall be certified by law. Introduced, read in full, and passed on first reading on the 5th day of December, 2016. Published by Title as a Bill for an Ordinance in the City's official newspaper on the 8th day of December, 2016. Published as a Bill for an Ordinance on the City's official website beginning on the 7th day of December, 2016 for thirty (30) days. Read by title and passed on final reading on the 19111 day of December, 2016. Published by title in the City's official newspaper as Ordinance No.~. Series of 2016, on the 22nd day of December, 2016. Published by title on the City's official website beginning o December, 2016 for thirty (30) days. I, Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of the Ordinance passed on final reading and published by title as Ordinance No.~ Series of 2016. • . ' . COUNCIL COMMUNICATION Date Agenda Item Subject Bill For An Ordinance Establishing December 19, 2016 11bi The 2016 General Obligation Bond Mill Levy Collected in 2017 for the Englewood Police Department Headauarters Initiated By Staff Source Department of Finance and Administrative Services Kathv Rinkel, Director PREVIOUS COUNCIL ACTION City Council approved an ordinance setting forth the ballot language and submitting to a vote of the registered electors a General Obligation Bond (GOB) for the construction of a new Englewood Police Department Headquarters. Ballot Issue No. 2C was passed by the voters on November 8, 2016. On November 28, 2016, Staff along with the PFM Group discussed the proposed ordinance, the 2016 mill levy to be collected in 2017 and the payments to cover the debt service. RECOMMENDED ACTION Staff recommends Council approve a bill for an ordinance establishing a 2016 mill levy to be collected in 2017 · ecifically for two payments to cover the debt service associated with the series 2017 bonds, and which was xpressly allowed under the ballot issue No. 2C. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED The City of Englewood assesses property tax for the general government operations and for the General Obligation Bonds Debt Service Fund. The GOB mill levy for the Englewood Police Department Headquarters building, for collection in 2017 must be certified to Arapahoe County by December 15, 2016. Due to Arapahoe County timing, the mill certification required to cover the 2017 payments is required in advance of the sale of the bonds. The first year's debt payments will be structured to exactly match the amount we are requesting in this mill levy. Because of the timing of our regular Council Meetings and the late timing of the Election, Arapahoe County has allowed the City to submit the mill certification after 1st reading approval with the understanding that we may need to remove it if it does not pass on second reading scheduled for December 19th• FINANCIAL IMPACT With a sale of bonds in early 2017, two payments on the debt are expected. This mill levy will cover the cash needed to make those payments. Based on the assessed valuation for the City of Englewood as certified by the Arapahoe County Assessor, the estimated net assessed value of all properties in Englewood for 2016 is $575,373,717 . This 2016 mill is 3.819, hich will be collected in 2017 for the General Obligation Bond debt service for the Englewood Police apartment Headquarters building. This amount has not been budgeted, but will be included as a budget supplemental upon Council approval. The amount budgeted for the GOB Englewood Police Department Headquarters building Debt Service will be $2,200,000. For example, assuming a 20-year term on the sale of our bonds, a homeowner with a $200,000 dollar home ha. Englewood would pay the following to the City of Englewood in 2017: W' Market Value Assessment Ratio Assessed Value Englewood Police Department Headquarters GOB Debt Mill Levy Taxes Paid for GOB Debt for Englewood Police Department Headquarters Bldg LIST OF ATTACHMENTS Proposed bill for an ordinance $200,000 7.96% $15,920 3.819 $60.80 • •