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HomeMy WebLinkAbout1978 Ordinance No. 015... • • •• INTRODUCED AS A BILL BY COUNCILMAN Weber BY AUTHORITY ORDINANCE NO. 15' , SERIES OF 1978 AN ORDINANCE AUTHORIZING THE SALE AHO ISSUANCE OF GENERAL 0BLIGATI0N REFUNDING WATER BONDS, SERIES 1978, IN THE PRINCIPAL AMOUNT OF $8,455,000 OF THE CITY OF ENGLEWOOD, COLORADO, FOR THE PURPOSE OF REFUNDING GENERAL OBLIGATION REFUNDING WATER DONO. , SERIES 1975, AND GENERAL OBLIGATIOR WATER IMP ''TEMENT BO~DS, DATED FEBRUARY 1, 1978, OF THE <..::TY OUTSTANDING IN THE AGGREGATE AMOUNT OF $9,310,000; PROVIDING FOR TllE ESTABLISHMENT OF AN ESCROW ACCOUNT FOR THE PAYMENT AND REDEMPTION OF THE OUTSTANDING BONDS TO BE REFUNDED; PROVIDING FOR THE LEVY OF TAXES TO PAY SAID REFUNDING BONDS AND THE INTEREST THEREON; AND PRESCRIBING OTHER DETAILS IN CONNECTION THEREWITH. WHEREAS, the City of Englewood, in the County of Arapahoe and the State of Colorado (the •city•), is a political subdivision of the State, a body corporate and politic, and a home-rule city pursuant to Article XX of the State Constitution; and WHEREAS, the City, by Ordinance• heretofore adopted and approved by its City Council, haa authorized the issuance of its General. Obligation Refundinq Water Bonds, Series 1975, dated April 1, 1975, in the amount of $4,100,000 (the •1975 Iasue•), and its General Obligation Water Improvement Bonda, dated February 1, 1978, in the amount of $6,700,000 (the •1979 Iaaue•); and WHEREAS, as of August 1, 1978, there remains outstanding of aaid 1975 Issue the amount of $2,610,000, being bond• numbered 299 to 820, inclusive, in the denomination of $~,000 each, bearing intereat payable on Feburary 1 and Auguat 1 each year, and maturing aerially on Auquat 1, as follows: Bond Numbers Interest Rate Alllounta Years (All Inclusive) (Per Annual Maturing Maturing 299 -382 5.301 $420,000 1979 383 -469 5.30\ <135,000 1980 470 -561 5.301 '60,000 1981 562 -656 5.30\ 475,000 1982 657 -756 5.301 500,000 1983 757 -820 5.30\ 320,000 1984 and WHEREAS, bonds of said 1975 I••ue maturing on and after Auguat 1, 1983, are redeemable at the option of the City on AuC]Ust 1, 1982, and on any interest payment date thereafter in inverse numerical order upon payment of par, accrued interest and a premium of l\ of principal1 and -11- • 6 JI .. • • •• WHEREAS, as of August 1, 1978, there remains outstanding of said 1978 Issue the full amount thereof, being bonds numbered l to 1,340, inclusive, in the denomination of $5,000 each, bearing interest payable December 1, 1978 and aemiannaully thereafter on the lat day of June and the lat day of December each year, and maturing serially on December 1, aa followa: Bond Nwnbera Interest Rate Amounta Years (All Inclusive) (Per Annum) Maturing Maturi!!i 1 36 6.00\ $180,000 1979 37 -75 6.00\ 195, ODO 1980 76 -116 6.00\ 205,000 1981 117 -159 6.00t 215,000 1982 160 -205 6.00\ 230,000 1983 206 -254 6.00\ 245,000 1984 255 -306 5.00\ 260,000 1985 307 -361 4.90\ 275,000 1986 362 -419 4.75\ 290,000 1987 420 -481 4.75\ 310, 000 1988 482 -546 4.80\ 325,000 1989 547 -615 4.80\ 345,000 1990 616 -688 4.90\ 365,000 1991 ft 689 -766 4.90\ 390,000 1992 767 -848 5.oot 410,000 1993 849 -935 5.00\ 435,000 1994 936 -1028 s.oot '65,000 1995 1029 -1126 5.oot 490,000 1996 1127 -1230 s.oot 520,000 1997 1231 -1340 5.00\ 550,000 1998 and WHEREAS, bonda of said 1978 Issue maturing on and after December 1, 1988, are redeemable at the option of the City ac June 1, 1981, and on any intereat payment date thereafter, in inverse nwaarical order, upon payment of par and accrued inter-t1 .. WHEREAS, the City Council has detezained that it is neceaaary and in the beat interests of the City that the 1975 and 1978 Issues, outstanding in the aggregate amount of $9,310,000 be refunded by the issuance of General Obligation Refunding Water Bonda, Series 1978, in the amount of $8,455,000, reaulting in a reduction of debt service and effecting other economies, all to the benefit of the City and its inhabitanta, and in accordance with the City Charter; and WHEREAS, after published Notice of Sale, General Obli- gation Refunding Water Bonda, Series 1978, in the principal amount of $8,455,000, were sold and awarded to the Northern Trust .Co· of Chicago, Illinois , the highest and best bidder there- fore, such bid being hereby accepted • -12- • • • • BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO: Section 1. That for the purpose of providinq funds with which to refund and pay $2,610,000 of it• 1975 Issue and $6,700,000 of its 1978 Issue above described, the City of Englewood. Colorado, shall issue its General Obliqation Re- fundi.nq Water Bonda, Series 1978, in the principal amount of $8,455,000. Said Refundinq Water Bonds shall be dated Auqust 1978; sh&ll conai•t of 1,691 bonds in the denomination of l, $5,000 each, numbered l to 1691, inclusive, shall bear interest payable on August 1, 1979, and semiannually thereafter on the l•t day of February and the 1st day of Augu•t each year, and shall mature serially on J\ugust 1, as follows: Bond Nwnbers Interest Rate Amounts Years (All Inclusive) Cr«'r Annum) Maturin9 Maturin!J l. -109 6.ROi. $545,000 1979 110 -230 " 605,000 1980 231 -358 " 640,000 1981 359 492 670,000 1982 493 634 " 710,000 1983 " 635 -743 " 545,010 1984 744 -792 " 245,000 1985 793 -844 " 260,000 1986 845 -899 " 275,000 1987 900 -959 " 300,000 1988 960 1022 " 315,000 1989 1023 1091 " 345,000 1990 l.092 -1164 " 365,000 1991 1165 1243 395,000 1992 12« -1327 " 420,000 1993 " 1328 -1416 " 445,000 1994 1417 -1513 " 485,000 1995 l.51.4 -1616 " 515,000 1996 1617 -1691 375,000 1997 The net effective interest rate on this Series of Bonds is ----"'5;;....:•;...:.7-"'7-'4'""'8'-='5 __ , • '!'he Refunding lfater Bonds, Series 1978, maturing on and after August 1, 1988, shall be redeemable prior to their respec- tive maturity dates, at the option of the City, on Auqust 1, 1987. and on any interest payment date thereafter, in inverse numerical order, upon payment of par and accrued interest. Notice of prior redemption of the Refunding Water Bonds, Series 1978, shnll be given by publication at least once in a legal newspaper or newspapers custoMarily used by the City for legal notices, not less than thirty (30) days prior to the redemption date, and hy mailing a copy of the Notice of Redemp- tion by registerPd or certified firstclass United States mail, -13- f • • postage prepaid, to the original purcha•er or to its successor, at leA8t thirty (30) days prior to the redemption date. Such notice shall specify the place and date of redemption, the amount and numbers of the bonds called, and that from and after such date interest on all bonds called for redemption shall cease. The Refunding Water Bonds, Series 1978, and the interest. coupona attached thereto shall be payable in lawful money of the United States of America, at The First llation&l Bank of Englewood, Englewood, Colorado. Section 2. The Refunding Water 801148, Series 1978, 5hall be •igned with a facsimile signature of the Mayor of the City, with a facsimile of the •eal of the City affixed thereto. attested and countersigned by the manual signature of the Director of Finance, ex-officio City Clerk and Treasurer. The interest coupon. attached to said bonds shall bear the facsiaile •ignature of the Director of Finance, ex-officio City Clerk and Treasurer, and when i.8aue4 as aforesaid as part of .. id bonds, shall be the binding obligations of the City accordinq to their import. Should any officer who•• aanua1 or facsilll.ile signature appears on .. id bonds or the interest coupons attached thereto cease to be •ucb officer before Clelivery of the bonds to the purcha•er, such manual or facsiaile signature shall neverthel••• be valid aD4 sufficient for all purpo .... ·section 3. The Refunding Water llem4a, Seri.ea 1978, and the inter-t coupons attached thereto 8hall be in •ubstan- ti&lly the following form: -14- • • • (Form of Bond) UNITED STATES .OF AMERICA STATE OF COLORADO COUNTY OF ARAPAHOE CITY OF EBGLEWOOD GENERAL OBLIGATION REFUNDING WATER BOND, SERIES 1978 No. $5,000 The City of Englewood, in the County of Arapahoe and State of Colorado (herein the •city•), for value received, hereby acknowledges itself indebted and promises to pay to the bearer hereof the principal sum of FIVE THOUSAHD DOLLARS in lawful money of the United States of America, on the lat day of August, 19~-' with interest thereon at the rate of ~~~~~~~~~~~~~~~~ per centum ( •> per annum, payable August l, 1979, and semiannually thereafter on the lat day of February and the 1st day of August each year, as evidenced by interest coupons hereto attached, principal of and interest on this bond being payable at The First National Bank of Englewood, in Englewood, Colorado, upon pr .. entation of said coupona and this bond as they severally become due. Bonds of this iuue maturin9 on and after August 1, 1988, are redeemable at the option of the City on August 1, 1987, and on any interest payment date thereafter, in .inverse numerical order, upon payment of par and accrued interest. Notice of prior redemption shall be given as provided in the Ordinance authorizing this Bond. This bond is issued by the City Council of the City of Englewood, Colorado, for the purpose of providing funds to refund valid and outstanding General Obligation Refunding Water Bonds, Series 1975, dated April l, 1975, and General Obligation Water Iaprovement Bonds, dated February l, 1978, under the authority of and in full conformity with the const~tution of the State of Colorado, and the Charter of said City, and pursuant to an Ordinance duly adopted, published and made a law of said City prior to the issuance of this bond. It is hereby further certified, recited and warranted that all the requirements of law have been fully complied with -15- • • 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, doe• not exceed any limit of indebtedneaa prescribed by the Constitution or the Charter of the City1 and that provision has been made for the application of th• net revenue• of the vater systma of the City and for the levy and collection of annual taxes on all of the t&xAbl• property in the City sufficient to pay the interest on and the principal of this bond when the same becme 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 TESTL'IONY \·;HERI:OP, th• City Council of the City of Englewood, City, Colorado has cauaed this bond to be signed with the facsimile si9naturo of the Mayor of the City, sealed with a facsimile of the aeal of the City, attested and counter- signed by the manual signature of the Director of Finance, ex-officio City Clerk and Treasurer, and the attAched coupons to be signed with the facsimile signature of the Director of Finance, ex-officio City Clerk and Treasurer, as of the lat clay of Auqut, 1971 • (FACSDIILE SEAL) A'M'ESTED ABO COUNTERSIGNED: (Do Not Siqn) Director of Finance, ex-officio City Clerk and Treasurer -16- (Facsimile Signature) Miyor .. • • .. • (Form of Coupon) No . $ ___ _ August, On the 1 s t day of February, 19 __ , unless the bond to which this coupon is attached, if redeemable, has been c alled for prior redmnption, the City of Englewood, in the Coun t y of Arapahoe and State of Colorado, will pay to bea rer the amount shown hereon, in lawful money of the Uni ted States of America, at The First National Bank of En g l ewood, in Englewood, Colorado, being interest then due o n i ts General Obligation Refunding Water Bond, Series 1978, da t e d August 1, 1978, bearing o. (Facsimile Signature) Director of Finance, ex-officio City Clerk and Treaaurer -17- .. • • • • Section 4. When a&id Refunding Water Bonda have been duly executed the Director of Finance ia hereby directed to d e liver the bonds to the purcha9er thereof on receipt of t:he agreed purchase price therefor. The proceeda of the Re- f und i ng Water Bonds, Seri .. 1978, shall be used only for the p urpose •tated therein and for paying the coat• and expense• incurred incidental to the i••uance of aaid Refunding Water Bo nda and for no other purpose whatever. Neither the purchaser o f s aid bonds nor the aubaequent holder of any of them ahall be r e aponaible for the application or diapoaal by the City, or any of i t• officers, of any of the_ fund• derived from the sale thereof. Section 5. If neceaaary, the intereat and principal to become due on the Refunding Water Bonda, Serie• 1978, in 1979 ahall be advanced from the water fund or any other fund o f the City available therefor. For the purpoae of reimburaing ••id advance and paying the interest on aaid Refunding Water Bo nda •• the .... shall become due, and providing for the ultimate payment and redemption of aaid Refunding Water Bonda, there shall be levied on all the taxa!>le property of the City, in addi tion to all other taxea, direct annu.al t.axea in each o f the year• 1971 to 1996, incluaive, aufficient to make auch reilllbura..ent and to pay the interest on all of aaid Refundin9 wa t e r Bonda, Serie• 1978, and the inatallmenta of principal, •• the ...., become due and payable, r .. pectively. Said taxea, vhen collected, ah&ll be depoaited in a apecial. fund to be known aa •city of Englewood General Obligation Jtafunding Water Bond Fund, Series 1978•, and the proceeda derived fra. said tax•• shall be applied only to the payment of neceaaary coata and expense• of operating and ma.intainiDq the water ayatem and to the payment of the intereat and principal of the Refunding Water Bonda, Series 1978, authorized herein, and for no other purpoae whataoever, until the indebtedn••• ao contracted purauant to thi• Ordi- nance , both principal and intereat, ahall bave been fully paid, satisfied and diachar9ed. Nothin9 herein contained shall b e s o conatrued •• to prevent the City from applying a ny other funds or revenue• that .. y be in the City treasury and available for that purpo•• to the payment of said interest and p r i ncipal, as the .... reapectively accrue or mature, and upon s uch payment the levy or levie• herein provided may there- upon to that extent be diainiahed • -18- Section 6. The sums herein provided to pay the interest on said Refunding \·later Bonda and to cUacharge the principal thereof when due, are hereby appropriated for that purpose, and aaid amounts for each year ahall alao be included in the annual budget and appropriation Ordinance and bill• to be adopted and paaaed by the City Council of said City ill each. year. respectively, until aaid Refunding Water Bonda have been fully paid. satisfied and discharged. Section 7. Notwithstanding the foregoing provision• for tax levies, the City hereby further covenant• and agree• to extabliah, maintain, collect and enforce a achedule of rat••• fees, tolls and charges for connection to and uae of the water ayatem of the City, which schedule shall be sufficient to assure that th• revenue thereby produced, together with any other funds which may be lawfully available, and the proceed• of general ad valorem taxes, shall pay all reasonable coats and expenaea of operatinq and maintaining the water ayat.em and to pay the interest and principal of the General Obligation Refunding Watar Bonda, Series 1978, herein authorizee, promptly aa the same become due and payable, respectively. Section 8. 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 taxea, if aucb action shall be neceaaary to effectuate the provisions of this Ordinance, to ratify and carry-out the provisions hereof with reference to the levying and collection of taxes1 and the City shall levy, certify and collect such taxes in the manner provided by law for the purpose of creating a fund for the payment pf the costs and xpena .. of operating and maintaining the water system, and the payment of the principal of the Refunding lfater Bonda and interest thereon, and such taxes when collected shall be kept for and applied only for such purpose, as hereinabove specified. Section 9. The proceeds derived from the sale of the Refunding Water Bonds, Serie• 1978, authorized herein in an amount not less than $8,455,000, plus cash in the amount of $ 5 3 2 , 17 3 , which amount includes $355, 690. 00 cash on hand of the City, the $ 176, 483 premium paid the City for the Refunding Water Bonds, and the accrued interest on the bonds being refunded, shall be deposited with The First tational Bank of Englewood, En9lewood, Colorado (the •sank•) in a separate fund and escrow account hereby created and known as •city of Englewood, 1975 and 1978 Issues, Water Refunding Escrow -19- .. • • • Account• herein designated as the •Refunding Escrow Account• or •Escrow Account•, which account shall at all time• be sufficient, toqether with any intereat to be derived from the investment and any temporary reinvestment of the deposit• or any part thereof only in direct obligations of, or the principal and inter st of which obligationa are unconditionally guaranteed by~ the United States of America, to pay the principal of and intereat on the outstanding 1975 and 1978 Isaues being refunded. as the same became due and payable under and in accordance with th following schedule: 1975 Issue: Bond9 numbered 299 to 820, inclusive, maturing August 1, 1979 to August 1, 1984, inclusive, shall be paid and retired at their respective maturity dates according to their original terms at The First National Bank of Englewood, Englewood, Colorado. 1971 Issue: Bonda numbered l to 1340, inclusive, maturing December 1, 1979 to December 1, 1998, inclusive, sb&ll be paid and retired at their respective maturity date• according to their oriqin&l teram at Th• Firat tional Bank of Englewood, Englewood, Colorado. Intereat on the outatanding bond• of th• 1975 and 1971 Issue• shall be paid as the same accrues, according to the original te.rma of said bonds, until said bonds mature. Section 10. The Bank shall invest the funds on deposit in the Refunding Escrow Account in direct obligations of, or the principal and interest of which obligations are unconditionally guaranteed by, the United States of America, and •ball fully secure any cash balance in said Eacrow Account in.th manner required by law for other trust funds. Section 11. If for any reason, at any ti.Jlle, the funds on hand in auch Refunding Escrow Account ahall be inauf- f icient to meet the payments required u the aame •hall be about to become due and payable, the City Council of the City ab.all forthwith deposit in such Refunding Escrow Account such additional funds as may be required fully to meet the amount so about to become due and payable. Section 12. The Bank shall from time to time redeem all or a portion of the obligations in said Refunding Escrow Account in sufficient amounts so that the proceeds therefrom -20- • • • and the intere•t thereon as the same accrue• will be auf ficient to eet the interest requirements on the outstanding bonds of the 1975 and 1978 Issues as such intere•t accrue•, according to the schedule hereinabove set forth. I Section 13. The Mayor and the Director of Finance,' ex-officio City Clerk akd Treasurer of the City shall, and they are hereby authorized and directed to take all necessary or appropriate action toward the execution of a proper Escrow Agreement with the Bank concerning the deposits in, investment• of and disbursements from said nefunding Escrow Account, and such other agremnents as may be necessary or desirable to effectuate the provisions of this Ordinance and comply with the requirements of law. Section 14. On or about the date when the Refunding Water Bonda, Series 1978, are delivered, or within a reasonable ti.me thereafter, the Director of Finance is authorized and directed to publish a notice of refunding one or more time• in a newspaper or new•papers customarily used by the City for legal notices • Section 15. The City covenants and agreea that it will make no use of the proceeds of the bonds authorized herein which might cause such obligations to be arbitrage bonds within the meaning of Section lOl(c) of the Internal Revenue Code of 1954, as amended, and the Regulations proposed and in effect thereunder. Section 16. That if any one or more section or part of this Ordinance shall be adjudged unenforceable or invalid, such j udgment shall not affect, impair or invalidate the re- maining provi•ions of this Ordinance, it being the intention that the various provisions hereof are severable. Section 17. All ordinances or parts thereof in conflict with this Ordinance are hereby repealed. Section 18. After said Refunding Water Bonda are issued , this Ordinance shall be and r ... in irrepealable until said Refunding Water Bonds and the interest thereon have been fully paid, satisfied and discharged. Section 19. This Ordinance, aa adopted by the City Council, shall be numbered and recorded in the official records of the City. Its adoption and publication shall be authenticated by the signatures of the Mayor and the Director of Finance, -21- , ,.. . • • • . . ex-of f i cio City Clerk and Treasurer, And by the certificate of publication. Section 20. Thi• Ordinance shall take effect thirty (JO) days after publication following final passa9e. • I NTRODuCED AS A BILL thi• 3rd day of July, 1971. Publi shed as a bill on the 5th day of July, 1978. Read in 'full and passed on final reading on the 17th day of July, 1978. Published in full as Ordinance No. 15, Series of 1978 on the 19th day of July, 1978. ATTEST: -22- •