HomeMy WebLinkAbout1980 Ordinance No. 007•
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ORDINANCE NO . 7
SERIES OF 1 9 a--o---
BY AUTHORITY
COUNCIL BILL NO. 10
INTRODUCED BY COUNCIL
MEMBER KEENA
AN ORDINANCE TO CONTRACT AN INDEBTEDNESS ON BEHALF OF THE CITY OF
ENGLEWOOD, COLORADO, AND UPON THE CREDIT THEREOF BY ISSUING GENERAL
OBLIGATION BONDS OF THE CITY IN THE PRINCIPAL AMOUNT OF $1,300,000,
FOR THE PURP OSE OF EXTENDING AND IMPROVING THE MUNICIPAL WATERWORKS
SYSTEM OF THE CITY; PRESCRIBING THE FORM OF SAID BONDS AND PROVID-
ING FOR THE LEVY OF TAXES TO PAY THE BONDS AND THE INTEREST THEREON,
AND PROVIDIN G OTHER DETAILS IN CONNECTION THEREWITH.
WHEREAS, the City of Englewood presently owns and
ope r ates a municipal waterworks system for the City and its
inh a bitants ; and
WHEREAS, the City Council has determined that it is
n ecessary to extend and improve the municipal. waterworks system;
a nd
WHEREAS, th~ estimated cost of such improvements is
a pprox imately $1,300,000, and the City Council has determined that
general o b ligation bonds of the City in the amount not exceeding ··
$1 ,30 0 ,000 should be issued for such purpose; and
WHEREAS,· Section 104 of the City Charter provides in
p art t hat water extension and water improvement bonds may be
is s u e d with out an election upon a determination to that effect by
th e Council ; and
WH EREAS, the City Counci 1 has determined that the
proposed iss ue of .general obligation bonds will be for the purpose
of improving or extending the municipal waterworks system of the
City , and p ursuant to the City Charter, no election is required
pri or to th e issuance thereof; and
WH EREAS, the City Council has further determined to
issue and s ell such bonds to United California Bank, Los Angeles,
California , in accordance with their proposal dated April
• 2_!_, 1980; and
• WHEREAS, the City Council has determined at this time
to authorize the issuance of bonds in the principal amount of
$1,300,000:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO:
Section 1. Bond Details. That for the purpose of
extending and improving the municipal waterworks system of the
City, the City shall issue its general obligation negotiable
coupon bonds in the principal amount of $1, 300, 000, each to be
designated •General Obligation Water Bond, Series 1980•.
The City Council has determined that the bonds auth-
orized herein, in the principal amoun~ of $1,300,000, are not
included within the debt limitation of the City, in accordance
with Section 104 of the City Charter, which exempts water bonds
from the debt limitation of the City.
The bonds shall be dated June 1, 1980 and consist of
• 260 bonds in the denomination· of $5, 000 each, numbered 1 to 260,
inclusive. The net effective interest rate of this issue of bonds
is 6 · 893802 t per annum. Interest shall be payable on December
1, 1980, and semi-annually thereafter on June 1 and ·December 1
each year, as evidenced by interest coupons attached to said
bonds, and shall mature serially on December 1, as follows:
Amount Maturity Interest Rate
$ 10,000
10,000
10,000
10,000
250,000
250,000
250,000
250,000
260,000
1981
1982
1983
1984
1985
1986
1987
1988
1989
8%
8%
8%
8%
7.80%
6.60%
6.70%
6.75%
6.80%
Bonds maturing on or before December 1, 1985, shall
not be redeemable prior to their respective maturity dates.
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Bonds matur ing in the years 1986 and thereafter, shall be re-
deemable at the option of the City on December 1, 1985, and on any
interest payment date thereafter, in inverse numerical order, upon
payment of p ar, accrued interest and a premium of 1 1/2 % of the
principal amount to be redeemed.
No tice of prior redemption shall be given by publication
at least one time in a newspaper having general circulation in
the City, no t less than thirty (30) days prior to the date of
r e de mption , and notice shall also be given by mailing a copy of
the notice by registered, first class mail, to the original
pur c haser o f the .bonds, at least thirty ( 30) days prior to
the date of redemption.
Th e bonds and the interest coupons attached thereto
shall be pay able in lawful noney of the United States of America,
at The First National Bank of Englewood, in Englewood, Colorado.
Se ction 2. Form and Execution of Bonds and Interest
Cou po ns. Th e bonds shall be signed by the facsimile signature of
the Mayor of the City, sealed wi t h a facsimile of the seal of the
City , and at tested and countersigned by the manual signature of
the Director of Finance, ex-officio City Clerk-Treasurer. The
interest cou pons attached to said bonds shall bear the facsimile
signature of the Director of Finance, and when issued as aforesaid
as part of s aid bonds, shall be the binding obligations of the
City accordi ng to their import. Should any officer whose manual
or facsimile s i gnature appears on said bonds or the interest
coupons attach ed thereto cease to be such officer before delivery
of the bonds to the purchaser, such manual or facsimile signature .
shall never t h eless be valid and sufficient for all purposes.
The bonds and interest coupons attached thereto shall be
in substantia lly the following form:
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(Form of Bond)
UNITED STATES OF AMERICA
STATE OF COLO RADO COUNTY OF ARAPAHOE
CITY OF ENGLE\«>OD
GENERAL OBLIGATION WATER BOND, SERIES 1980
o. $5,000
The City o f Englewood, in the County of Arapahoe, State
of Colorado , acknowledges itself indebted and promises to pay to
the bearer he reof the principal sum of
FIVE THOUSAND DOLLARS
on the lat d ay of December, 19
rate of
, with interest thereon at the
per
centum <~~~•> per annum, payable on December 1, 1980, and
semi-annually the reafter on June 1 and December 1, each year, both
principal and interest being payable in lawful money of the United
States of Ame rica, at The First National Bank of Englewood, in
Englewood, Colorado, upon presentat~on and surrender of said
coupons and t his Bond as they severally become due.
Bonds of th i s issue maturing on or before December 1,
1985 , are n ot redeemable prior to their respective maturity
dates. Those bonds maturing in the years 1986 and thereafter,
shall be red ee mabie at the option of the City, on December 1,
1985 , and on any interest payment date thereafter, in inverse
numerical or de r , upon payment of par, accrued interest and a
premium of 1 1/2\ of the principal amount so redeemed. Notice of
such prior re de mp tion shall be given in the .time and manner set
forth in the ordinance authorizing the issuance of this Bond.
Thi s Bond is issued by the City Council of the City
of Englewood, Co l orado, for the purpose of extending and improving
the municipal waterworks sys.tern of the City, under the authority
of and in fu ll conformity with the Constitution and Laws of the
State of Colorado, the home rule Charter of the City, and pursuant
to an Ordinance duly adopted, published and made a law of the City
prior to the i ssu ance of this Bond •
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• It is hereby certified and recited that all the re-
quirements of law have been duly complied with by the proper
officers of the City in the issuance of this Bond; that the total
debt of the City, including that of this Bond, does not exceed any
limit of indebtedness prescribed by the Constitution or Laws of
the State of Colorado or the Charter of the City1 and that ·provi-
s ion has been made for the levy and collect ion of a general ad
valorem tax ·on all the taxable property in the City sufficient to
pay the interest on and principal of this Bond when the same
become due.
The full faith and credit of the City of Englewood,
Colorado, are hereby pledged for the punctual payment of the
principal of and interest on this Bond.
IN TESTIMONY WHEREOF, the City Council of the City of
Englewood, Colorado, has caused this Bond to be signed with the
facsimile signature of the Mayor of the City, sealed with a
• facsimile of the seal of the · City, at.tested and countersigned by
the manual signature of the Director of Finance, ex-officio City
Clerk-Treasurer, and the interest coupons attached hereto to be
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signed with the facsimile signature of the Director of .Finance, as
of the 1st day of June, 1980.
( S E A L )
Director of Finance
ex-officio City Clerk-
Treasurer
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CITY OF ENGLEWOOD, COLORADO
By ____ (_F_a_c_s~i~m~i_l_e __ S_i_g~n_a_t_u_r_e~> ______ __
Mayor
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(Form of Interest Coupon)
No. $ ____ _
June,
On the ls t day of December, 19 , unless the Bond
to which this coupon is attached, if redeemable, has been called
for prior redemption, the City of Englewood, in the County of
Arapahoe, State of Colorado, will pay to bearer the amount shown
hereon in lawful money of the United States of America, at The
First National Bank of Englewood, in Englewood, Colorado, being
interest then due on its General Obligation Water Bond, Series
1980, dated June 1, 1980, bearing No. •
(Facsimile Siynature)
Director of F nance
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S ection 3. Disposition of Bond Proceeds. When the
bonds have be en duly executed, the Director of Finance is hereby
directed to deliver the bonds to the purchaser thereof upon
receipt of th e agreed purchase price therefor. The proceeds of
the bonds sh all be used only for the purpose of extending and
improving the mun i cipal waterworks system of the City, and for
paying the cos t s and expenses incurred incidental to the issuance
of said bonds and for no other purpose whatever.
All o r any portion of the bond proceeds may be tem-
porarily inves t e d, or reinvested, pending such use, in securities
or obligatio n s which are lawful investments for such munic-
ipalities in the State of Colorado. It is hereby covenanted and
agreed by the Ci ty that the temporary investment or reinvestment
of the bond p roceeds, or any port ion thereof, shall be of such
nature and e xtent, and for such period, that the bonds shall not
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be or become a rbitrage bonds ._within t~e meaning of Section 103(c)
of the Internal Revenue Code of 1954, as amended, and pertinent
regulations , and such proceeds, if so invested or reinvested,
shall be subj ect to the limitations and restrictions of said
Section 103( c), and pertinent regulations as the same now exists
or may later be ame.nded.
Neith er the purchaser of the bonds nor the subsequent
holder of any of them shall be responsible for the application or
disposal by th e City, or any of its officers, of any of the funds
derived from t he sale thereof.
Section 4. Payment of Principal and Interest. If
necessary, the a mount of principal or interest due on said bonds
on December 1 , 1980 may be advanced from any available funds of
the City, or f rom the proceeds of the bonds authorized by this
ordinance. Fo r the purpose of reimbursing said funds and paying
the interest o n said bonds as it shall thereafter become due and
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providing for the ultimate payment of the bonds, there shall
be levied on all the taxable property in the City, in addition to
all other taxes, general ad valorem taxes in each of the years
1980 to 1988, inclusive, without limitation as to rate or amount,
sufficient to make such reimbursement and pay the interest on all
of the bonds outstanding, and the principal thereof, as the same
become due and payable, respectively.
Said taxes, when collected, shall be applied solely to
the purpose of the payment of the interest on and principal of
said bonds and for no other purpose whatever, until the bonds,
both principal and interest, shall have been fully paid, satisfied
and discharged. Nothing herein contained shall be so construed as
to prevent the City from applying any available income or revenues
of the ltllnicipal waterworks system, or any other funds or revenues
that may be in the City treasury and available for that purpose,
to the payment of said bonds and the interest. thereon. Upon the
application of such funds . . or revenues as aforesaid, the levy or
levies herein provided may thereupon to that extent be diminished.
The sums herein provided to pay the interest on said
bonds and to discharge the principal thereof when due,. are hereby
appropriated for that purpose, and said amounts for each year
shall also be included in the annual budget and the appropriation
bills to be adopted and passed by the City Council of the City in
each year, respectively.
It shall be the duty of the City Council of said City,
annually, at the time and in the manner provided by law for
levying other City taxes, if such act ion shall be necessary . to
effectuate the provisions of this ordinance, to ratify and carry
out the provisions hereof with reference to the levyin·g and
collection of taxes1 and such taxes, when collected, shall be kept
for and applied only to the payment of the interest on and prin-
cipal of said bonds, as hereinabove specified.
The City covenants and agrees to establish and maintain
rates and charges for water and services furnished by the munici-
pal water works system which will produce net income and revenue
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each year sufficient to pay the principal of and interest on the
bonds. In the event that the net income and revenue at any time
is not .sufficient to make such payments, the City shall increase
the rates and charges for water service in order to provide for
the payment of principal and interest as required above. The
pledge of the City to pay such principal and interest from the net
income and revenue of the water system shall not, however, consti-
tute a lien on such net income and revenue.
Section 5. Defeasance. When all principal, interest
and prior redemption premiums, if any, in connection with the
bonds hereby authorized have been duly paid, the pledge and lien
and all obligations hereunder shall thereby be discharged and the
bonds shall no longer be
meaning of this ordinance.
payment when the City has
deemed to be outstanding within the
There shall be deemed to be such due
placed in escrow and in trust with a
commercial bank located within · or without the .state of Colorado,
• and exercising trust powers,· an amoun·t sufficient (including the
known minimum yield from Federal Securities in which such amount
may be initially invested) to meet all requirements of principal,
interest and prior redemption premium, if any, as the .same become
due to their final maturities or upon designated prior redemption
dates. The Federal Securities shall become due at or prior to the
respective times on which the proceeds thereof shall be needed, in
accordance with a schedule established and agreed upon between the
City and such bank at the time of the creation of the escrow, or
the Federal Securities shall be subject to redemption at the
option of the hol°ders thereof to assure such availability as. so
needed to meet such schedule. The term "Federal Securities"
within. the meaning of this section shall include only direct
obligations of, or obligations the principal and interest of which
are unconditionally guaranteed by, the United States of America.
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Section 6. Severability. That if any one or more
sections or parts of this ordinance shall be adjudged unen-
forceable or invalid, such judgment shall not affect, impair or
invalidate the remaining provisions of this ordinance, it being
the intention that the various provis.ions hereof are severable.
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Sec t i on 7. Repealer. All ordinances or parts thereof in
conflict with this Ordinance are hereby repealed.
Section 8. Ordinance Irrepealable. After the bonds are
issued, this Ordinance shall be and remain irrepealable until said
bonds and the interest thereon shall have been fully paid, satis-
fied and dis charged.
Se ction 9. Hearing. In accordance with Section 40 of
the City Ch arter, the city Council shall hold a public hearing on
this Ordinan ce, before final passage, at 7:30 P.M. on Monday,
May 5, 1980 .
Se ction 10. Publication and Effective Date. This
Ordinance, after its final .passage, shall be numbered and recorded,
and the adopti on and publication shall be authenticated by the
signature of the Mayor and the Director of Finance, ex officio
City Clerk-Treasurer, and by the Certificate of Publication. This
Ordinance s hall become effective thirty (30) days after publication
following fi nal passage.
In troduced, read in full, and passed on first reading on
• the 21st day of April, 1980.
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Publ ished as a Bill for an Ordinance on the 23rd day of
April, 1980 and the 30th day of April, 1980.
Re ad by title and passed on final reading on the 5th day
of May, 198 0.
Pub lished by title as Ordinance No.~7 ____ , Series of 1980,
on the 7th d ay of May, 1980.
Attest:
~io ~~~
I, Gary R. Higbee, ex officio City Clerk-Treasurer of the
city of Englewood, Colorado, do hereby certify that the ab~ve and
fo r egoing is a true, accurate and complete copy of th~ Ordinance
passed on fi n a l reading and published by title as Ordinance No. 7 ,'
Series of 19 80 •
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