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HomeMy WebLinkAbout1977 Ordinance No. 035• • ( INTRODUCED AS A BILL BY COUN .CIL MEMBER Clayton BY AUTHORITY ORDINANCE NO •. 3$ • SERIES OF .1977 AN ORDINANCE TO CONTRACT AN INDEBTEDNESS ON BEHALF OP THE CITY OF ENGLEWOOD, COLORADO, AND UPON THE CREDIT THEREOF BY ISSUING GENERAL OBLIGATION BONDS OF THE CITY IN THE PRINCIPAL AMOUNT OP $6,700,000, FOR THE PURPOSE OF EXTEND- ING AND IMP.ROVING THE MUNICIPAL WATERWORKS SYSTEM OP THE CITYJ PRESCRIBING THE FORM OF SAID BONDS AND PROVIDING FOR THE LEVY OP TAXES AND THE APPLICATION OP INCOME AND REVENUE OF THE SYSTEM TO PAY THE BONDS AND THE INTEREST. THEREON, AND PROVIDING OTHER DETAILS IN CONNEC- TION THEREWITH. WHEREAS, the City of Englewood presently owns and · operates a municipal waterworks system for the City and its inhabitants1 and ., WHEREAS, the City Council has determined ~ that it is necessary to extend and improve the municipal waterworks system1 and WHEREAS, the estimated cost of such improvements is approximately $8,158,000, and the City Council has determined that general obligation bonds of the City in the amount not exceeding $6,700,000 should be issued for the payment of part of the cost of the pr_oject, and WHEREAS, Section 104 of the City Charter provides in part that water extension and water improvement bonds may be . . issued without an election upon a determination to that effect by the Council, and WHEREAS, the City Council has determined that the proposed issue of general obligation bonds will be for the purpose of extending and improving the municipal waterworks system of the City, and pursuant to the City Charter, no election is required prior to the issuance thereof1 and WHEREAS, the City Council has further determined to issue and sell sue h bonds to JOHN NUVEEN AND CO., INC. in accordance with their proposal dated DECEMBER 19 , 19771 and WHEREAS, the City Council has determined at this time to authorize the issuance of bonds in the principal amount of $6,700,0001 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 $6, 700,000, each to be designated •General Obligation Water Improvement Bond•. • ( The City Council has determined .that the bonds auth- orized herein, in the principal amount of $6,700,000, are not included within the debt limitation of the City, in accordance with Section· 104. of the · C~ty Charter, which exempts water bonds from the debt limitation of the City. The Bonda shall be dated February l! 1978 and corislst of 1,340 bonds in the denomination of $5,000 each, numbered l .to 1,340, inclusive. The net effective interest rate of this issue of bonds ia S.0134 t per annum. Interest shall be payable on December 1, 1978, and semi-annually thereafter on the ~st day of June and the lat day of December each year, as evidenced by interest coupons attached to said bonds, and the bonds shall mature serially on December 1, as follows: Amount $ 180,000 ·195,000 205,000 215,000 230,000 $ 245,000 260,000 275,000 290,000 310,000 $ 325,000 345,000 365,000 390,000 410,000 $ 435,000 465,000 490,000 520,000 550,000 Maturity 1979 1980 1981 1982 1983 1984 198"5 . 1986 ·1997 1988 1989 1990 1991 1992 1993 1994 1995 1996 · 1997 1998 Interest Rate 6.os II II II II II 5.01 . 4.901 4.751 " . 4. sos " 4.901 " 5.01 " " " " " Bonds aturing on or before December 1, 1987, shall - not be redeemable prior to their respective maturity dates. Bonds maturing on or after December 1, 1988, shall be rede.emable at the option of the City on June 1, 1988, and on any interest payment date thereafter, in inverse numerical order, upon payment of par and accrued interest. • • • • • -I Notice of prior redemption •hall be given by pqblication at leaat one ti e in a newspaper having general circulation ·in the City of Inglewood, not less than thirty (30)· days prior to the . .. date of redemption, and notice shall also be given by mailing a copy of the notice by registered, first class mail, to the orig- inal purchaaer of the bonds, at least thirty (30) days prior ·to the date of redeaption. The bond• and the interest coupons attached thereto shall be payable in lawful money of the United States of America, at The First National Bank of Engl~wood, in Englewood,. Colorado. Section 2. Form and Execution of Bonds and Interest c~~eons. The bonds shall ~e •l~Hll b~·the facsimile signature of the Mayor of the City, sealed .with a facsimile of . the seal, attested and countersigned by the manual signature of the Dire~tor of Finance, ex-officio City Clerk-Treasurer. . The interest coupon• attached to said bonds shall bear the facsimile signature of the Director of Finance, and when issued as aforesaid as part of said bonds,. shall be the binding ·obligations of the City according to their import • Should any officer whose manua~ or . facsimile signature appears on said bonds or the interest coupons attached thereto cease to be such officer before delivery of the bonds to the purchaser, such manual or facsimile sig~ature shall nevertheleaa be valid and sufficient for . all ... purposes •. The bond• and interest coupons. attached thereto · shall be in substantially the following form: • • • -. STATE OP COLORADO (Form of Bond) UNITED STATES or AMERICA COUNTY or ARAPAHOE CITY or EHGLEWOOD GENERAL OBLIGATION WATER IMPROVEMENT BOND No. $5,000 The City of Englewood, in the County of Arapahoe, State of Colorado, acknowledges itself indebted and promises to pay to the bearer hereof the principal sum of FIVE THOUSAND DOLLARS on the lat day of December, 19_, with interest there~n at the rate of per centum ( · I) per --- annum, payable on December 1, 1978, and semi-annually thereafter on the lat day of June and the 1st day of December each year, both p~incipal and intereat being payable in lawful money of the United States of America, at 'l'he First National . Bank of Englewood, in Englewood, Colorado, upon presentation and surrender of said coupons and thia Bond aa they severally become due or are called for prior redemption •. Bonda of thi• iaaue maturing on or before December 1, 1987, are not redeemable prior to their respective maturity dates. ·Those bonds maturing on or after December 1,1988, shall be redeemable at the opt·ion of the City on June 1, 1988, and on any interest payment date thereafter, in inverse numerical order, upon payment of par and accrued interest. Notice of such prior re- demption shall be given in the time and manner set forth in the ordinance authorizing the issuance of this Bond. Thia Bond is issued by the City Council of the City of Englewood, Colorado, for the purpose of extending and improving the municipal waterworks system of the City, under the authori~y . of and in full 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 issuance of this Bond. 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 issuan c e of this Bond;. that the total outstanding general obligation ind~btedness 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 CityJ and that provision has been made ·for the levy and collection of a direct annual tax (general ad valoren tax) on all the taxable property in the City without limitation as to rate or amount, and the application of the net revenue of the municipal waterworks system 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, attested and countersigned by the manual signature of the Dir~ctor of Finance, ex-officio City Clerk-Treasurer, and the interest coupons attached hereto to be signed with the facsimile signature of the Director of Finance, as of the 1st day of February, 1978. (FACSIMILE SEAL) ATTEST AND COUNTERSIGNED: Director of Pinance ex-officio City Clerk- Treasurer CITY OF ENGLEWOOD, COLORADO By (Facsimile Signature) Mayor ' , .- • • • -· (Form of Interest Coupon) No. $ ------ June, On the 1st 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 Coloraa.~_ .. · ,will pa4) ~o bearer the amount shown •'f' hereon in lawful money of the United States of Amer ic;:a, at The First National Bank of Englewood·, in Englewood, Colorado, being interest then due on its General Obligation Water Improvement Bond, dated February 1, 1978, bearing No. (Facsimile Silnature) Director of F nance .1 .· , .. • • • .. .. . • ·~ Section 3. Disposition of Bond Proceeds. When the bonds have been duly executed, the Director of Finance. is hereby directed to deliver the bonds to the purchaser thereof upon receipt of the agreed purchase pr ice therefor. The _proceeds of the bonds shall be used only for the purpose of extending and improving the municipal waterworks system of· the City, and for paying the costs and expenses incurred incidental to the issuanc~ of said bonds and for no other purpose whatever • All or any portion of the bond proceeds may be tem- porarily invested, o·r reinvested, pending such use, in securities or obligations which are lawful investments for such munic- ipalities in the State of Colorado. It is hereby covenanted and agreed by the City that the temporary investment or reinvestment of the bond proceeds, or any portion thereof, shall be of such ' nature and extent, and for such period, that the bonds of the City shall not be or become •arbitrage bonds• within the meaning of Section 103 (c) of the Internal l\evenue Code, and pertinent reg- ulations, and such proceeds, if so invested or reinvested, shall be subject to the limitations and restrictions of said Section 103(c), as the same now exists or may later be amended, and shall further be subject to any applicable regulations of the Internal Revenue Service. Neither the purchaser of the bonds nor the subsequent holder of any of them shall be responsible · for the application or disposal by the City, or any of its officers, of any of the funds derived from the sale thereof. Section 4. Payment of Principal and Interest. If necessary, the amount of interest due on said bonds on December 1, 1978 may be advanced from any available funds of the City, or from the proceeds of the bonds authorized by this Ordinance. For the purpose of reimbursing said funds a~d paying the interest on said bonds as it shall thereafter become due and 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, a direct annual tax (general ad valorem tax) in each of the years 1978 to 1997, inclusive, without limitation as to rate or amount, I • 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 authorized by this Ordinance, both principal and interest, shall • , .- • •• ( ,,, ( • have been fully paid, satisfied and discharged. Nothing herein contained shall be so constr·ued ·as to . ·prevent the City from applying any available income or revenues of the municipal water~ works system, or any other funds or revenues that may be in the City treasury and availabl• 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 Gity 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 action shall be necessary · to effectuate the provisions of this ordinance, to ratify and carry out the provisions hereof with reference to the levying and collection of taxes; 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 mun- icipal water system which produce net income and revenue 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 incre~se 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 th~ water system shall . not, however, constitute a lien on such net income and revenue. Section 5. Severability. That if any one or more sections or parts of this Ordinance shall be adjudged unen- forceable or invalid, such judgment shall not a f feet, impair or invalidate the remaining provisions of this Ordinance, it being the intention that the various provisions hereof are severable. Section 6. Repealer. All ordinances or parts thereof • in conflict with this Ordinance are hereby repealed. Section 7. 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, sat- isfied and discharged. . . • • . • • .. Section 8. Hearing. In accordance with Section 40 of the City Charter, the City Council shall hold a publ~c hearing on this ordinance, before final passage, at 7:30 P.M. on TUESDAY , JANUARY 3 I 1978. Section 9. Publication .and Effective Date. This Ordinance after its final passage, shall be numbered and recorded, and the adoption 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 shall become effective thirty (30) ~ays after publication following final passage • INTRODUCED (S E A L ) ATTEST: .... Finance of .JANUARY , 1978. (S E A L ) ATTEST: