HomeMy WebLinkAbout2019 Ordinance No. 035ORDINANCE NO. 35
SERIES OF 2019
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BY AUTHORITY
COUNCIL BILL NO.33
INTRODUCED BY COUNCIL
MEMBER MARTINEZ
AN ORDINANCE OF THE CITY OF ENGLEWOOD AUTHORIZING AN
INTERFUND LOAN FROM THE GENERAL FUND LONG TERM ASSET
RESERVE TO THE STORM WATER DRAINAGE FUND TO PROVIDE
INITIAL FUNDING FOR STORM WATER IMPROVEMENTS.
WHEREAS, the City of Englewood, Colorado (the "City") is a municipal corporation duly
organized and operating as a home rule city under Article XX of the Constitution of the State of
Colorado and the Charter of the City;
WHEREAS, as established by City Ordinance No. 20, Series of I 993 and codified in Title 12,
Chapter 5 of City of Englewood Municipal Code, as amended (the "City Code"), the City has
established its Storm Water Enterprise;
WHEREAS, the financial activities of the Storm Water Enterprise are accounted for in the
Storm Water Drainage Fund, also known as the Storm Water Enterprise Fund;
WHEREAS, as provided in Section 12-5-3(A) of the City Code, there is imposed on every lot
or parcel of land within the City a storm drainage service charge which is reviewed annually and set
from time to time by ordinance of the City;
WHEREAS, in September of 2018, the City contracted with Calibre Engineering to perform a
Storm Water Analysis and Alternatives Feasibility Study, significant elements of which have been
completed and presented to the City Council in a flood-prone study;
WHEREAS, there are not adequate funds in the Storm Water Enterprise Fund to finance, on a
timely basis, capital expenditure replacement, construction, acquisition and improvement solutions
referenced in or identified in the process of the flood-prone study (the "Storm Drainage
Improvements");
WHEREAS, pursuant to Section I 05 of the Charter the City may issue revenue bonds as
provided for municipalities by State statute and revenue bonds for the Storm Water Enterprise are
permitted under Title 31, Article 35, Part 4, C.R.S. and Title 37, Article 45.1, C.R.S.;
WHEREAS, as stating in Section 12-5-4(C) of the City Code, the City may pledge storm water
fees to the payment of principal and interest on revenue obligations issued by the City to finance any of
the activities under said chapter, which activities include the funding of Storm Drainage Improvements;
WHEREAS, the City Council has determined that it is in the best interest of the City to
undertake the following actions to address the Storm Drainage Improvements:
• Completing a third party fee rate analysis no later than late Fall of 20 I 9 to develop storm water
drainage utility rates and charges supporting the City's desire to issue revenue bonds for up to
$40 million in principal amount,
• Identifying and implementing increased rates and charges in late Fall of 2019 to provide for the
revenue bond issuance in late Spring of 2020,
• Completing a storm water system condition assessment by April of 2020, including an
assessment of the necessary administrative & maintenance costs,
• Developing a storm water maintenance plan by Spring 2020,
• Completing initial & final design for the Oxford A venue outlet pipe replacement project (known
as Project SI) and the Rotolo Park outlet project (known as Project S2), including refined cost
estimates by late-Spring 2020; and
WHEREAS, to provide initial funding for Storm Drainage Improvements prior to the issuance
of revenue bonds which the City Council currently intends and reasonably expects to issue, the City
Council desires to authorized one or more interfund loans, on an as need basis, from the General Fund
Long Term Asset Reserve to the Storm Water Drainage Fund, in the aggregate amount of $3,000,000
(collectively, the "lnterfund Loan"); and
WHEREAS, the City Council desires to declare its official intent, pursuant to United States
Treasury Regulation Section 1.150-2, to reimburse the City for capital expenditures related to the Storm
Drainage Improvements through the repayment of the Interfund Loan with proceeds of revenue bonds.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS:
Section 1. Interfund Loan.
(a) Authorization. To provide initial funding for Storm Drainage Improvements the
City Finance Director is hereby authorized and directed to record and document one or more
interfund loans, on an as need basis, from the General Fund Long Term Asset Reserve to the
Storm Water Drainage Fund, in the aggregate amount of $3,000,000. Interest shall accrue on
transferred funds of the Interfund Loan, without compounding, from the date of each transfer at
an interest rate of one percent (I%) per annum, until such amounts are repaid to the General
Fund Long Term Asset Reserve in full or as otherwise determined by the City Council.
(b) Repayment. The City hereby declares its intention to issue revenue bonds to
finance the Storm Drainage Improvements and to apply a portion of the proceeds thereof to
reimburse the City through the repayment of the Interfund Loan. The statements contained in
this Ordinance with respect to the reimbursement of the Storm Drainage Improvements
expenditures are intended to be statements of official intent as required by, and in compliance
with, to United States Treasury Regulation Section 1.150-2; provided however, this Ordinance
does not constitute a binding obligation with respect to the issuance of such revenue bonds.
(c) Net Revenue Pledge. Following the transfer of one or more interfund loans as
authorized above in paragraph (a), to the extent that the City Council later determines that no
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reve nu e bo nd s are to be iss ued , the lnte rfu nd Loa n s hal l be repaid fr om th e ne t rev e nu e de ri ved
fr om t he o pe rati on of th e Sto rm Water Enterp ri se afte r deduc ti n g op e rating and ma in te nan ce
ex pe nses a nd the repa yme nt of a mo unts du e o n t he C ity's out sta ndin g Storm Wa te r Enterpri s e
Revenu e Re fun din g Bonds, Se ri es 2 0 12 .
S ection 2. Effective Date. Thi s Ordina nce s ha ll beco me effective thi rty da ys a Rer pub lica ti o n
fo llow in g final pa ss age.
Introd uced, read in fu ll. and pass ed as o n fir st rea ding on t he 5th da y o f Aug ust.20 19.
Publi shed by T it le a s a Bill for a n Ord in ance in th e Cit y 's o fficia l newspaper o n the 8th da y of
Au gust. 2019.
Publi s hed a s a Bi ll fo r an O rdin a nce o n the C ity's o ffic ia l we bs ite beginn ing o n the 7th d ay o f
August.2 0 19 fo r thi rty (30) da ys.
Read by T it le a nd passed o n fin a l rea din g on the 19th da y o f Au gu st, 2 0 19.
Publi s hed by T it le in the C it y's o ffi cia l newspa per as Ord ina nc e o. 35. e ri e s o f 20 19. o n th e
22nd da y of A ugust, 20 19.
Pub lis hed by t itle o n th e City's officia l we bsite beg inni ng o n t he 2 1s t da y of A ugust, 20 19 fo r
thirty (30) days.
T hi s Ordina nce s ha ll take effect t h irty (3 0) da ys aft e r pu bli cat io n fo ll owin g final pa ss age .
[1n da O lso n, Ma yo r
ATTEST:
I, Ste ph ani e Ca rlil e. C ity C le rk of th e C it y o f En g lewood , Co lo rad o, he re by certify that th e ab o ve and
fore go in g is a true copy of the O rdin an ce passed on fi na l read in g and pub li shed by Tit le as Ordi nan ce
o .35, er ie s o f 20 19.
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