HomeMy WebLinkAbout1976 Ordinance No. 008• •
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JNTRODUC[O nv co 'l!C ILMArl CLAYTO ll
P.Y AUTHO R ITV
01\DINArl CE r:o. _a_. SERIE S 1976
I tJ ()1<11 I :.11 ·w1 : /\U 'll OHf:l I :JG 'l'llE .'/\f.E /\NO LSSU /\NCE
OF Sl :h r:H 1.1.VE!il.JE r.1-;rUNDUIG omm s, SEIUES 1976 OF
'lllE C ITY OF EYGl.L\·IOO D, COLO RJ,DO I N T llE PRIN C IPAL
11:-0 tl:JT OF' $ l, S 16, 00 0 FOR THE PURPOSE OF REFU NDING
OU'l'S 'l'/d IJJNG SE\vER REVENU E BO NDS, SE RI ES 1975 I N
'l'llE M OUNT OF $1 ,5 0 ,00 0; PHOVTDTNG FOR AN I~ ROW
'l'O l'/\Y SI\ ID JI U D. /\ND 'l'llE TN'l'J-:REST THEREON;
PRES CRI B ING 'l'HE FO RM Of' SAID REFUNDING BONDS AND
PROVIDING FOR TllE APPLIC A1'ION OF THE NET REVENUE
Dr' 'l'llE S EWl -.R SYSTE M TO PAY Tll E BONDS AND THE
TN'l'F.REST 'l'llERE ON, AND OT HER DE'fAILS JN CONNECTIO N
THERE WI TH; !\ND P HOVlDJNG FOR THE EFl''ECTIVE DATE
OF THIS OR DINANCE.
l~IERE AS, the Ci y of Eng l e wo o d, Arapahoe County,
Colo r ado (h 'r1 •i n the " it y"), is a duly orga nized and acting
Home Rule Ci ty of he State of Colorado , created and operating
pursuil nt to Arti c l e XX o f lhe Constitution of said State a nd
a Home Rule Cha r e r ( he "Charter ") adopted and from time t o
ime am ndcd in c ord nee th rnwit h; a nd
WHER EAS, the City of Englewood, Colorado, has pre-
viousl y authorized and iss u e d its Sewer Re v e nue Bonds,
Series 19 75 , dated March l, 1975, in the amo unt of $1 ,55 0,000
(herein the "1975 Issue"), of which t h e e ntire amount now
rem ins out s nding , consisti ng of 310 bonds in the denominati on
of $5,000 c c h, numb red l to 310 i n c lusive, bearing interest
payable semian n ually o n March l and September l each year ,
being numb e r e d and ma uring on the lst day of Se ptember as
follows :
Bo nd Numbers Interest Rat e Amounts Years
_CA!! _ _!n_c l usiv ) (P r Annum) Ma t uri ~.9_ Mat urin
l -13 6.00% $ 65,000 1976
14 -7 6.0 0\ 70,000 1977
28 -42 6.00\ 75,000 197 8
43 -57 6.0 0\ 75,000 197 9
5 8 -73 5.625 \ 80,000 198 0
74 -0 .625 \ 85,000 1981
91 -109 5.625 \ 95,000 1982
110 -129 5.625\ 100 ,000 1983
13 0 -150 5.625% 10 5 ,000 198 4
l 5 1 -173 5.625 \ 115 ,00 0 1985
174 -1 7 5 .90 % 120,000 1986
198 -2 23 5.9 0\ 130,000 1987
22 4 -2 50 6.00% l 5 ,000 1988
2 '.J l -2 79 6 . I i 14 5 ,00 0 1989
2 90 -3 10 E'. 1 0% 1:>5 ,000 1990
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and
WH EREAS, bonds of this Issue maturing in the years
1985 and there after, b e ing bonds numbered 151 to 310, inclusive,
are r e dee mable at the option of the City on September 1, 1984
and on any inte r e st payment date thereafter, in inverse numerical
o rder, upon p a y me nt o f p a r and accrued inte r e st; and
WHEREAS, the City Council of said City, pursuant to
Chapter X, Part III, Section 106 of its Charter, as amended,
i s authorized t o i ss ue r f und i ng revenue bonds of said sewer
s ystem for the purpo se of refunding outstanding sewer bonds of
the City, pl e dging to the p a yment of said bonds the revenues
derived and to be derived from the operation of said sewer
system; and
WHEREAS, h e City has heretofore authorized and
iss ued its Refunding S e wer Revenue Bonds, Series 1962, dated
November l, 1962 (herein the "1962 Bonds") in the original
principal amount of $1,022,000, the proceeds of which were
depos i ted i nto a s p ec ial esc row which was established at
the First National Bank, Englewood, Colorado, such escrow
being sufficient to pay all principal of, interest on and
prior redemption pre mium i n connection with all of the
City's outstand i ng Sewe r Revenue Bonds; and
WH EREAS, Ord ina n ce No. 28, which authorized the
issuance of the 1962 Bonds p e rmits additional revenue bonds
to be issued to b e p a yabl e f rom the income and revenue
derived from the ope ration of said sewer system on a parity
wi th the 1962 Bo nds prov i ded that the City has complied with
c erta i n r eq ui reme n ts co n cerning the issuance of additional
parity l ien b o nds ; a nd
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WHEREAS, the City Council speci fically finds
a nd <l t c rmines that:
1. Th e City is curre nt in the accumulated
Englewood Sewer Refunding Revenue Bonds, Series 1962,
Reserve Fund (he rein "Reserve Fund" or "Reserve Fund 1962")
as required by Ordinance No. 28 which authorized the 1962
Bonds, and that s uch conditions will prevail at the time
of issuance of the parity revenue refunding bonds authorized
by this Ord i nance; and
2. Th annual net revenues derived from the
operation of said s e wer system for the fiscal year immediately
preceding the date of issu nee of the 1975 parity lien obli-
gations authoriz d by Ordin a nce No. 4, Series 1975, refunded
and replaced herein, and availa ble to be deposited into and
used for the purpose of the Reserve Fund for the 1962 Bonds
were sufficient to pay an amount representing 150\ of the
maximum annual principal and interest requirements on the
outstanding parity lien bonds and other parity lien obliga-
tions of the City payable from and constituting a lien on
the revenues of the syste m, and the bonds issued (excluding
reserves); and
WHEREAS , said Ordinance No. 28 permits additional
revenue bonds or refunding revenue bonds to be issued to be
payable from th e i ncome and revenue derived from the operation
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of said S 'wer s y s m o n a parity with the 1962 Bonds pro-
vided that the City has com plied with certain r e quirements
concerning the issuance of addition al parity lien bonds as
more s pec ifically outlined in said Ordinance; and
WHEREAS, exce pt as aforesaid, the City has never
pledged nae in any way hypothecated revenues derived and to
be d e rived from the operation of the utility, or any part
thereof, to the payment of any bonds or for any other pur-
pose, with the result tha t the revenues to be d eri ved from
the system may not be pledged lawfully and irrevocably or
the payment of the additional refunding bonds payable from
revenues derived from the operation of the system; and
WHEREAS, the City finds and determines that by
r e funding the 1975 Issue, the principal amount and the
interest rate on the outstanding 1975 Issue will be reduced,
resulting in decreased borrowing costs; and
WHEREAS, by such refunding certain covenants
relating to deposits to the. Reserve Fund will be modified
in order to facilitate capital expenditures and financing
expected to be ne cessary in the future; and
WHEREAS, the City Council has by resolution
provided for the public sale of said refunding bonds, and
fo11owing the recipt of bids Boettcher & Company,
828-JZth Street. Denver. Colorado presented the best
bid to the ity in co rd nee with t he Notice of Sale and
the City shall award the bonds; and
WllERE AS, the City finds that said refunding can
be accompl is h d t o h e b s t advantage of the City and in
the b e st int r e s s of the City and its inhabita nts;
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BE IT OIW Al'N ED BY TllE C ITY COUN C IL OF THE
C ITY OF ENGLEWOOD, COLORADO:
Section 1. Authorization. That for the purpose
of providin9 funds to refund the City's Sewer Revenue Bonds,
S eries 1975, d a ted March 1, 1975, outstanding in the amount
of $1,550,000, th e re are hereby authorized Sewer Revenue
Refunding Bonds, Series 1976, of the City of En9lewood, in
t he pr i ncipal amount of $1,516,000 (herein the "1976 Bonds"),
both the principal thereof and the interest thereof to be
payable solely and only out of the net revenue and income to
b e d e rived fr o m the op r < i on of its s wer s ystem, as here-
i nafter set forth, pursuant to the provisions of Chapter X,
Part III, Section 106 of the Charter of the City of En9lewood,
and said bonds are sold to Boettcher & Company, 828-17th
Street, Denver, Colorado.
Section 2. Bond Details. The bonds shall be
n egotiable in form, payable to bearer, shall be dated March 1,
1976, consisting of 304 bonds, bonds numbered 1 to 303, inclu-
sive being in the d e nominat i on of $5,000 each, and bond numbered
304 being in the denomination of $1,000, shall bear interest
frOlll date to maturity, interest bein9 payable on September 1,
1976, and sem i annually thereafter on the 1st day of March
a nd the 1st day of Se ptember each year, and shall mature
se rially on Sept mb e r 1 as follows:
Am o unt Maturity Interest Rate
$ 70,000
75,000
80,000
8 5 ,000
8 5 ,000
95 ,000
1976
1977
1978
1979
1980
1981
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(s c hedule continued)
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Am o unt
100,000
110, 000
110,000
125,000
130, 000
135, 000
145,000
155,000
16,000
1982
1983
1984
1985
1986
1987
1988
1989
1990
Interest Rate
Bonds matur i ng on Septe mber 1, 1985 and thereafter
ar r d •••!ma blo at Lh o pt ion o f Lh c City on S pt~mbcr 1, 1984,
a nd on any i nte rest payme nt date thereafter, in inverse
numerical order, upon payme nt of par and accrued interest.
Not i ce of any prior redemption shall be given by
the Director of Fina nce, e x -officio City Cl e rk and Treasurer
of the City:
1) By publication of such notice at least once,
not l e ss th a n thirty d a ys p i : r to the r edemption date,
i n a new s p a p e r publ i s he d and of general circulation in
the City; and
2) By sending a c opy of such notice by regis-
.tered, first-class, p o s tage pr e paid United States
mail, at least thirty days prior to the redemption
date to:
a) The or i g i nal purchaser of the bonds;
b) Hanife n, Imhoff and Samford, Inc.,
De nve r, Colorado; and
c) Th e p a y i ng a ge nt.
S uch n o t ice s h all sp e c i fy the number of each bond to be so
red e e med and th e date f i x e d for r e d e mption, shall further
s tate that on s uch r e d e mp t i o n date, th e re s hall be paid, at
the pla ce o f pa y me nt (d e siq n a t e d b e low), the principal amount
h r e o f and a c ru e d inte r e st o t he r e d mption d a te, and
th a t f rom an d a ft e r su c h da te i nt erest will cease to accrue.
No t ice h a vi ng bee n giv e n i n th e mann e r h e reinabove provided,
the bo nd o r o n<l s s o Al l c d fo r r d e mµti o n s h a ll be come due
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· nd 1-1y .1b le on he rcd r·111ption d 01te so d esiy nate d; .:in d upon
pre:.;r ·n ..it ion th •-'L"<.:of, LO <Jcf-h•~r 1·;ith Lhe app urt e n a nt coupons
m.1turi11g subscqu .•nt to Lhe r d c 1•1p ti on date, the Ci ty shall
P• y h e bcmd o r bonus so c.:t lle d for r e demption.
The principal am ount of an d interest on said bon ds
.hall be payab le in lawful mo n e y of t he United States of
J\m •rira, L h Fir s t NaLi o na l l3o1n k, F.n<l wood, Colorad o.
S 'ction 3. S ecia l _Qb_!jgat i~ns. All of the bonds,
Lo~ethcr with t he i nteres t accruing ther e on, shal l be payable
and collectible s olely out of the net income to be derived
from the ope rat io n of the sewer system, the income of which
is so pledged; the holder o r hold e rs thereof may not look to
any genera l o r othe r fun d for the payment of principal of and
interest on such ob l igations , e xcept t he designated special fund
plcdycd therefor; a nd s uc h bonns ~hall not co nstitute an indebted-
ness nor a d eb t within th e meaning of the Charter or any constitu-
tion al o r st atutory prov ision or limitation; nor s hall they be
considered or h e ld to be general obligations of the City.
Sect i on 4. Form and Execution of Bonds. The bonds
sha ll be signed with the facsimile signature of the Mayor of
Lhe City, scaled with a facsi mile of the seal of the City,
attested and count rsigne d by the ma nual signature of the
Director of Finance, an d the interes t coupons attached thereto
shal l bear the facsimile signature of the Di rector of Finance,
When issued as aforesaid as par t of said bonds, su ch interest
c oupons shall be the binding obligations of the City according
to their i mport. Should any officer whose manual or facsimile
signature appears on said b onds or the interest c oupons attached
the r eto, ce ase to be s u c h officer b e fore d e livery of the bonds
to the purchaser , such manua l or f acsimi le sig nature shall
nevertheless be vali d and suf fic ient for a ll purpose s.
The bonds and int rest coupons s h a ll be in substantially
the fol lowing f o i·m :
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(Fonn of Dond)
liN l 'J'J-:D S 'rl"I'E S OF AMERICA
S'rA'f E OF COl.UHJ\D O COUNTY OF ARAPAHOE
No.
c i • Y OF ENr. 1.r:wooo
SEWER R~VINUE REFUNDlNG AONO, SERIES 1976
Sl,000
$5,000
The City of Englewood, in the County of Arapahoe
and St te of Colorado , hereby promises to pay to the bearer
hereof , out of the special fund or funds hereinafter designated,
but not othe rwise, the principal sum of
FIVE
ONE THOUSAN D DOLLARS
on the 1st day of Spetember, 19 , ~ith interest thereon at
the rate of p e r ccn um \) -----
p e r annum, payable on September 1, 1976 and s miannually there-
after on the 1st day of March and the 1st day of September
e ach year, as evidenced by interest coupons attached hereto,
both principal a nd interest being payable in lawful money of
the United States o f Am rica, at the First National Bank, in
Englewood , Colorado , upon pr ese ntation and surrender of the
annexed coupons and this Bond as they severally become due.
Bonds of his iss ue maturing on or before September 1,
1984, shall not be red eemable prio r to their r0spective maturity
dates. Bonds maturing in the years 1985 and ther fter, are
r e deemab le at t he option of the City, in inverse numeric al
orde r, on Septembe r 1, 1984 , and on int rest payme nt dates
th r ~after, upon payment of p r an d accrued int0rest. Notice
of s uch prior r d e mption shal l be given in the time and manner
.,s mo r e 1 ar icular ly s0 t f orth in the Ordinan ce a uthorizing
he L•s u,111c o f this nond.
This n nnd i s i :.s•1•d by th e City Co11ncil of the City
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of Englewood, Colorado, for the purpose of providing funds
to refund and pay outstanding sewer reve nue bonds of the
City , unde r the aulhority of and in full conformity with
the City Charter and the Constitution of the State of
Colorado, and pursuant to Ordinance No. 8 of said
City, finally ~dopted and pproved by the City Council.
Doth the prin~ipal of and the interest on this
Bond are payable solely out of a special fund created in
full conformity with law and designated as the "1976 Sewer
Revenue Refunding Bond and Interest Fund", of the City, into
which Fund the City covenants and agrees to deposit, from
the net income and revenue of the sanitary sewer system,
amounts suf f icicnt to pay the principal of and interest on
this Bond, when the same become due and payable.
If necessary payment of principal and interest
shall be made from the reserve fund created for such purpose,
all as is more particularly set forth in the Ordinance
authorizing the issuance of this Bond. The bonds of this
issue are equi ably and ratabl y secured by a l ien on the net
income and r v nue of the sa nita 1:y sewer syst m, and con-
stitute an irrevocable and first lien (but not necessarily
an exclusive first lien) on the net income and revenue, on
a parity with the lien of the outstanding Refunding Sewer
Revenue Bonds, Series 1962, of the City, dated November 1, 1962.
It is hereby recited, certified and warra nted that
for the payment of this Bond , the City of Englewood has
c reated and will maintain said Fund and will d eposit therein
the amounts and r e venue specified in said Ordinance, and out
of said Fund, s an irrevocab le charge thereon, will pay
this Bond and the interest thereon, in the manner provided
by said Ordinance. For a description of said Fund and the
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na ture and extent of the security afforded thereby for the
p yment of this Bond, reference is made to that Ordinanc~.
This Bond does not constitute a dPbt or indebtndness
of he City of Englewood within the meaning of any charter,
constitu tional or statutory limitation, and shall not be
considered or h ld to be a ge neral obli ga tion of the City.
It is h ere by c er tified and recited that all the
requireme nts of law have b e en fully complied with by the
proper officers of t he City in the issuance of this Bond.
For the payment of this Bond and the interest
the reon, the City of Engl e wood pledges the exercise of all
its lawful powers.
IN Tt:STIMON 'i WllEREOF, the City Council of the City
of Englewood, Colorado, has caused this Bond to be signed
with the facsimile signature of the Mayor, sealed with a
facsimile of the seal of the City, attested and counter-
signed by the manual signature of the Director of Finance, ,
ex-officio City Clerk and Treasure~, and the attached coupons
to be signed with the facsimile signature of the Director of
Finance, as of the 1st day of March, 1976.
(FACSIMILE SEAL)
ATTESTED AND COUNTERSIGNED:
-Director of Finance,
e x-officio City Clerk
and Treasurer
CITY OF ENGLEWOOD, COLORADO
By (Facsimile Signature)
Mayor
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(Form o f I 11teres t Coupon)
No. $ _____ _
March,
On the 1st day o f September, 19 ~-' unless the
Don d to wh ich this coupons is attached, if redeemable, has
been called for prior rcd •mption, the City of Englewood,
in the County of Ar apahoe and State of Colorado, will pay
to bea rer the amount shown hereon i n l aw ful money of the
United States of America, at the Firs t National Bank, in
Englewood , Colorado, out of the Speci al Fund or Funds re-
!erred to i n said Bond, b u t not otherw i se, being interest
the n due on its Sewer Rev e nue Refunding Bonds, Series 1976,
dated March 1, 1976, b earing No·---~-
----'-(F a csimile Signature)
51 rector of Finance
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Se c tio n 5. p_~_os i __ }SJ_n_E_f~o-~~-P ro~. The pro-
ceeds de rive d fr o m Lh e s a l e o f h e Se we r Rev e n u e Re fundin9
Bo nds au t h orized here in , i n a n a mount n ot l e ss t han $1,516,000,
and t he a cc rued in teres t on t h e bonds bei n9 re fun ded, shall be
d e pos i t e d with t he F i r s t Na ti onal Ban k , Englewood, Colorado
(her e i nafte r the "Bank "), i n a s e p a ra t e fund and escrow account
h e re by c r e ated and k now n a s t h e "City of Englewood Sewer Revenue
Do nds , S e r ies 1975 Es crow Accou nt ", h e rei n desi g nated as the
"Re fundi n 9 Es c row Ac c ou nt " or "Esc row Account", wh i ch account
s h all b e at all t i mes suff icient , togeth e r with any interest
to be d er i v e d fr o m t h e i nv estm nt a n d a ny t e mp o r a ry rei nvest-
me nt of t he d e pos i ts, or any p art t h e reof, i n direct obligations
o f or oblig ations guar a nt e e d by t h e United States of America,
to pay the principa l of and i nter nn~ on t he outstandin9 1975
Issue to be r eti r ed , at th e ir resp0c t i ve matur itie s, as follows:
1 9 7 5 I s sue:
Bonds n u mbere d l to 3 10, incl usive, maturin9
i n the years 1976 to 1990 , inc l u s ive, shall be paid
and retired at t h e ir r e spe c t ive maturity d a tes,
a ccord i ng to the i r orig i nal terms.
Interest on the bonds of the 1975 I ssue shall be paid as
t he s am e a c crue s , a cco r d i ng t o the or i g i nal t erms of said bonds,
unti l said bonds mature .
If f o r a ny re as o n, at a ny time , the fu nds on hand
i n such Re f u n di ng Es c row Ac count shall be i n suffici e nt to meet
the payne nt s req uire d s he sa me s h a ll be abou t to b e come
d ue and pa yable, the Ci ty Coun ci l of the Ci ty shall forthwith
e posi t i n s u ch Re fund ing Escrow Account su c h a ddi t i o nal funds
s may be r e q11 i r d f11 l ly l o m c t·h .-1mou nt s o a bout t o b ecome
due a nd pa y a ble .
T h e B nk s h 1 1 f rom l rn~ to ti ~e r e deem al l or a
por io n o f he ohli .1 t irms i n s :'li d R0 f u nd ing Es c row Accou nt,
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l n su f (L I il dlOOUn ~ !->O lhd h e µr o c00 ds h e r fr om an d the • in l •11 •:; LI ·1 n a h :..i mc .1cc t-uc s wi ll be s u ffi c ien t t o meet
h inl ·n •s tLqui 1 •m 'n s o n t h e o utst a nd i n g Issue a s such
ln r e t CC C t •S , n d 0 y sa id bonds at th e ir respective
m.1 uri l ··s.
s c l ion 6. s for S e rvice b the
lh s .ini J r S e we r s ::; <'m . -----The City Council of the City
o v cn ants hat i t will esta bl i s h, maintai n a nd e nforce rates
and c harge s fo r s0 rv iccs r n d e rcd by the sanitary sewer
sys c m to c r ea te inc om e a n d rev e nue e ach year sufficien t t o
..l y th e fo l lowing :
a) The cos ls nd xpense s of t he operation
and main e n ne e o f th e s nitary sewer system;
b) T he dmou nt n ssa ry to p a y the pr i n c ipal
e a c h y e ar; and
c ) F o r he r quired p yments to the reserve
f u nd a nd oth e r funds es tablish e d by the Or di n ance • authori z i ng t h e 1962 Bond s a nd by t h i s Ordinan ce.
It shall be h e duty of the City to e stablish ,
m in a in a nd e n force s uc h r a t s continuously until a ll of
S<id bonds nd h int0 s t h e r o n h a ve been fully paid and
d isc h rg d . In t h 'V•"n t ha u c h sew r rat e s nd charges
a any time shou ld n o t b u((ici nt to me e t suc h payments ,
h Ci y w i 11 in~ ..i. s w r ra t s and c h i.Jr s to such
n xt n t s o ins r• h y m nts a nd ac c umula ions required
by the p r o v "sion s o f t hi s Or dina nce.
S ec t i on 7. ~a y rn nt of Prjncipal and Inte r e st.
Th Ct y Coll n i l hrs , by 0rdin nee No . 28, S ri e s 1962,
fin l l y .idop <'d and ap rov d o n O · o be r 15, 1962, aut h or ized
o f th • I 2 !1 0 11ds i n t h e p ri n c i p al a moun t of
Sl ,0?2,000 , d l J\"<·.n b"r 1, l 96 2. For he payme nt of
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{J incip. 1 of a nd i nL L'rc>st o n ~;. i d bnmls , t he Cily hus
C TI! d a S !JL''1al f u1 1d t.l··~;iy n"t d us he "R efu ndi!lLJ S ·we r
Rcv1·nuc n on d F'und uf l'l62 ", whi c h sha ll cont a in al l uf the
inr·om .Jnd r c v r·n11e d 1•1 ivrd by lh Cit y ft o m lh e op'r.:ition of
Th Ordin ~ncc providrs tha t s uc h
in ·nine dnd r cvrnue s hall first be u se d for the ymc nt o f
he n c ss.i y .i n d p ro pt?r cos ls dll xp ns s of lh e effic ient
n d •'•-On Qmical o r<ition ilnd ma int en ance of the system, for
the p ymcnt of Lhc prin ci pa l a n d in terest o n the 1 9 62 Bonds,
fo r p y mr>n s oar se rve f 11n d, .:rn d finally for pay me nts to
a Re pair and R pl c~ment S w r Sys e m Fun d.
The 1976 Bo nds s hall h ve a first an d pri or lien
o n the n e t in ·ome an d rc v ~nue of he san itar y se we r sys t e m
o f the City, o n a parity wi th Lhc outstanding 1962 Bon ds.
Accordingly , the re sha ll b d cpos i e d into a s pe c ial fun d
h e reby c r eated nd d c si g nal r d a s h e "1976 S we r R v e nue
R .fu nd ing Bond a nd Int r •s F und", o n or b e fore he 15th day
o f F e bruary an d Au gust e ch y e ar , an amou nt not l e ss than the
nex t installm,·nt o f i nt r es t du on t h e o uts andin g 1976 Bonds,
and in addition o n or b f o re the 15th day o f August e ach year
n amoun t not l r ss th n Lh n xt insta ]lm nt of principal of
s aid Bonds . Suc h d e posi s s hal l be made co n currently with
t he requir e d ym r n s o f p in cipa l a nd interest for th e 1962
Bon ds.
The moun s e r di d to the Bo nd a nd Inte r es t Fu nd
s hall be u s d t o a y h prin c ipa l f a nd in t e res t o n a l l of
he 1976 Bo nds ;i s the ~il in' h r . .i ft ·r b ·come du a nd pa ya ble.
Any .1ddi ion a l pa rity li en u o n d s h e r e aft e r i ss ued s hal l b e
1uyo1h l<'.' fr om h e• 5dm Bo nrl .. n<l Tn t •rvs Fun d , n nd !Jrovi s ion
.. !, 1 I e rn in lh e ortiln ~n·0 o r ordinanc s a u thorizi ng the
,.~:-11o1n<·r• 11 ··.11ti .i !l 1l 1 int .i i p.tri y 1 i••n Lo n ds for f ur t.h e r
i":,···· n s t 11 1 n . • 1 rl r 11 I l '•rn <i, I ·)·0 11 t.h o <;c r c•r1u i 1·e a .1bo ve,
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at 1 ast sufficient in im dnd a moun t t o pay th e additional
moun s of princ i pal und int r e st. Any sub0rdinate lien
bonds h ereafte r issu d, sh 11 be payab le from a separate
fund or funds into whi c h d posits shal l b e made and s ubject
to lhe depos its and paym nts r ~ uired or p ermi tt ed to be
ma de for the payment of he 1962 Bon ds, the 1976 Bonds , and
any other outstanding p rity l ien bond s.
After the payment of the costs a nd expenses of
the operation and main en nee of he sanitary sewer system,
nd the rcquir d a ym n s of principa l of a nd interest on
h 1962 BonJs nd he 1976 Bon ds, but concur ren~ with
th~ deposits r quired, if any, to the reserve fund cre ated
s additional sec urity for he 1962 Bonds, payments shall
be made to the reserve fund for the 197 6 Bonds, as more
particularly set forth in the following secti on.
After the paym nts require d as in di cated above,
the income and revenue of the sanitary sewer sys tem may
b used for the payment of the principal of and interest
on bonds having a lien whi ch is subordinate to the lien
of the 1962 Bonds and the 1976 Bond s.
Any r emaining income and revenue may b e used for
the deposits to t he Repair and Replacement Sewer System
Fund, as req ui red by said Ordin nee No. 28, Series 1962,
for any additional xten sions , imp r o vements and betterments
to the system, for calling, redeeming o r purchasi n g any of
he outstanding 1962 Bonds o r the 1976 Bond s, or for any
other lawful purpose of th e City.
Sec ion 8. Sew e r Re ye nue Refunding Bond Reserve
Fund , 1~76. Th re is h r by c reate d a specia l fund designated
as he "S wr r R enu n funding Dond Re s erve Fund , 1976" for
the pu r pos , if ne e ss ry, of pdyi ng the principa l of or
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lnl•rcs t o n lhc u on cl s dU ho i/.ccl by this Ordi n a n ce. The
Reserve Fund sh 11 b ac ·urnul t d i n the tota l amo unt of
$170 ,000, by the d posi t ann u lly to such Fund of an ~mount
no t less th n $1 2,000 , wi h an initia l d eposit of $35,000.
The nnu al d posi s sha ll be made on o r b efore Dece mber 31
e h y r, eginning i n the yea r 19 7 6 . The Reserv e Fund
sh 11 be main ained unt i l such time a s the a mount t her e in
wil l be sufficient to p y all o f t he outs ta nd i ng 1 9 7 6 Bonds
nd h i nt c. h "'rf'on . Th mon yin lhe Rcse v Fu nd
y be us d to p r v nt d f aul l s in the p a ym e nt of the bonds
h rei n authoriz d , nd inlcre t hereo n, b u t i f used for such
purpose , i s h 11 be reste r d to he fu nd a s soon a s p ossible.
Mon ys i n the Res erve Fund may b e invested in d i r ec t obliga-
io ns o f h United Sta cs Gove nm n or i n ob l igations or
securities of ny agency or instrument al ity th e r eof , a nd the
nt r st fro m ny such i nvestm n s s hall be o n sidered a s
revenue s of the sanita ry sewe r system .
Section 9. Covenants of the Cit . The City hereby
further irrevocably c ovenants nd agrees with each and every
holder of the 1 9 76 Bonds issued un d e r t he p rovi si ons of thi s
Ordin ance , that so long as any of said Bo nds r e ma i n o u tstanding:
a) I w1 ll co n inu lo op rate a n d m n age t he
s anitary sewer y st m in n fficie n t a nd eco n o mi cal
m nne r a nd k p n d mai nt a in s parate acco u n ts o f the
r eceipts and disbu rsement s of the system i n s uc h manne r
that h income an d r ev nue h reof , paya b le into the
Refund ing Sewe r R v n ue Bon d Fund of 1 9 62 and 19 76 , may
t 11 im s b 1 • • .Hli ly .in d cura ly d t r mi n d.
b) It will, throug h ppropriate ac t i on o f the
Ci ty Co unc i l , s bli sh, mai ntain nd 0 nf o rc c a sche dule
of rates nd charges f o r sa nitary sewe r serv ice s fur-
ni shed by said system sufficien t o i n sure t he pay me nt s
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.in .i•·cum1_1l <1tions 1·,>1p1i r0tl by t ile p1 o vi '·ion .·
rdin nc
f this
c ) r t w i 11 11 o l : . ·~ I l r a 1 i' 11<1 l e .:in y o t the
prope r y con<>Li uli11y any p 1r t or n ll of lhe s.1ni tctry
s1~wer s y stc•m in ny m .• nncr r to ..i ny e xt e nt s mig ht
r~J ce the scr uriLy pr u v 1J e d fo r the p a yment of the
uomls au ho ri z d h c•r in , b ut the Ci ty may s e ll a ny
l"""t ion o f >i llC h pn•1 •1 ty •hir h ~;ha l 1 lli.l v e b e: ·n r e placed
by olh r simila r pr o p >rLy o f at l east e qual value, or
whi c h s hal l cease to be n ecessa ry for t he effic ient
p rati n of s .i td s y s ·m ; p r o vi ded , how v e r, t hat in
the ev e nt of , n y s. l e or s ill c s , as afo r esai d, where
the agg reg.1 e 0 11 s id c r a .i n x ccc rls lhe su m of $1,000,
suc h consi detali o n s hall be pai d i nlo lh RL'f unding
Sewer Re v enue Bo nd F und o f 1 962 , nd 1976 , o r into the
Repa ir a nd R.., l ac ··mpn s, • .,...,,r Sy::;t t ·m fun d , t t h e
discre ion of he City, .nd sha ll b e us e d for the
purpo se s of he Fund i nto whic h it is d epos ite d.
d) At rcyul r peri ds Pac h y ar , it will ren der
bills for s nit ry 9 wc r s rvi ce s f urn i s h e d . If the
Ci y i s providing water serv ice , s u c h sewer b ills sh all
appear on an b a p rt of wat r bills render d . Until
pai d, 11 ·; nit.ory s""'' ra t s .1 nd cl1dr s h e ll ·onsti -
ule l 1.e n on lh p1 0 1•<'1·Ly !; •rv" a nd h City :;hal l
akc wh .:vc r .w ion is I '•Ja lly p ermissible prom tly Lo
0 nforce and c ll ct d c lir t<JU .:?nt s ni ar y s e w r c h r g0s ,
a nd if w r s rv i e is l'rovid •d , it s h a ll s h11 o f su h
water :; t·vi c f1 m 11 1np1 ·rly <..10lin1Ju •n t in l h
o f h 0 <>.ini .11 y '..!'W r I I ('~ .0 11d <"h il ( l 'S.
e l 1"\t l< .i s n C" L<W h y c·.r it w i ll furn':,h t h
(' l 97 .i t
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sanitary s w r syste m for he fis c al year immediately
r ceding -uh s tal 'mcnt .
f) It will Cdrry w rkmen 's comp e n sation , p ublic
liability and other forms of insurance on insurable
sanita ry s e wer system pro pe rty as would ordinarily be
carried b y utilities having s i milar properties of equal
value , such insurance b ei ng in such amounts as will
protect the system a nd its opPr?tion.
9) It will furnis h no free sanitary sewer service
and, if it elects to use sewer services for municipal
purposes, i t will make prov i sion to pay therefor at the
same rate as is charged oth ers for like or similar service.
h) For the prot ction of the health of the inhabi-
tants of the Ci ty, it will, by a ppropriate action, .compel
all the owners of occupied properties capable of being
served by the sanitary sewer system, to connect their
premises with such syst m.
Section 10. Additional Bo nds, Requireme nts and
Limi tations. No additional bonds shall be issued payable
from the income and rev e nue of the sanitary sewer system and
having a lien upon such income and reven ue wh ich i s superior
to the lien of the 1962 Bonds or the 1976 Bonds.
Ho weve r, nothing contain e d in this Ordinance shall
be c onstrued in such m nn e r as to prevent the issuance by
the City of addi ion 1 bonds paya ble from the net i ncome and
revenue derive d from the op ra ion of the sanitary sewer
system and constituting a l i e n upon said revenues eq ual to
or on a parity with he li n of t he 1962 Bonds or the 1976
Bonds, as long s the following r quireme nts are met:
a) The Ci y js cu rr nt in the payme nt of all
principal nd int r es t of lhe 196 2 Bonds , and the 1976
Bonds, and he d opus it and ac c umulation to t he Refunding
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Sewe r Re v enue Bond R ~erv e Fund of 196 2, the
S wer R v nue R• undiny Bon d Re s e rve Fund , 1976 ,
n d he R pclir ,,, d RqJ l.t c1·m nt S wc r Syste m Fund ,
au horized b y Ordinan c No. 28 , S e ries 1962.
b) The n t in o m a nd re v nue of t he s anitary
s we r sys m i •ct>i v ed in the prec di ng fiscal year
sh 11 h ave been qu 1 o 1.5 times the ma ximum a nnual
r qu i.cm•nts f r p in cip 1 a nd inte r es t on all out-
standing 1962 Bonds, lus 1.5 times the maximum annual
requir ments fo r princ i al a nd inte rest of the 1976
Bonds, p..l_u~ 1.5 Limes he maximum annua l r eq uirement s
for principal nd i nterest on t he propos d bonds t o
be issued .
However, if all of he 1962 Bonds have bQen paid
and c n e ll e d a nd e r no l OnJ r o utstand i ng, then a ddi-
ional ands p y l from he n t in om e and reven ue
of the sanitary sewer s ys m an d h a ving a l ien on s uch
net incom nd re v e nue on a parity with the 1976 Bo nds
nd ny oth r o ut sL nding pa ity l i n bonds , ma y be
issued provid d:
(i) ha he Ci y is cur r ent i n th p yme nt
of all pr inci 1 an d interes t of th 1976 Bonds
nd a ll o h 0 r p ri y li n a nds whi c h are o ut-
an ing and is cu r n i n the d posit a nd
a ccumula tion of all fun ds and paym nts required
by the 1976 Bo n d Ordinance and any other ordi -
nance which authoriz d the i ss uance of any out-
st nding parity lien bo nds;
(ii) ha th ne income a nd revenue f the
c;an1 ry s w r sy<> C'm r e c ive d i n th e preceding
f i !;(' I " .i r :.;h .1 l l h j vc c·c n ~<]U 1 to 1. 2 5 time s
c .i \.' ) (' 111n11 ,1 l ,,,-j l lC p 1 l , nd in r0s t rr"quire -
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m n ts of the 197 6 Bo nds , any add i t i on a l out s t anding
pa r ity l ien bonds , a nd the proposed par ity l ien
bon d o b issue d .
I f r a tes and c h ges for s an i tary sewe r s e rv i ce
h a ve b ee n i n c r a s d du r ing t he pre ceding fi s cal y e ar,
t h e n the n e t i n c om and r v nu e can be dete r mi ned by
apply i ng the new rat e s an d ch a rges to the quantities
o f se rv ice ac ually furn ished dur i ng such year.
Noth i ng h erei n s h 1 1 p r event the City from i s suing
addit i onal bonds h a v i ng a j unior or subord i nate lien
on the net income a nd r e v e n ue of the sanitary sewer
system, provid e d that all payments and accumu l ations
required t o be made by thi s Ordinance are current.
S ec tion 11. Pa m n t of Cn c.~s of Issuing Bonds.
All coats and expense s in curred in c onnection with the issuance
a nd payment of the 1976 Bonds a utho rized herein, shall be paid
e x c lusively from the proceeds of s aid bonds or from the net
i n come and revenue of t h e sani a ry sewer system, nnd in no
e v e nt s hall any f such cos s or ex p en s es or th e p ri nc ipal
o f or interest o n said bon d s be p ai d out of or c ha rged to the
gene ral f u nds or t ax l evi e s o f t he Ci ty.
Section 1 2. De l e gate d Pow e rs. Th e o f fice rs of the
City be, and th e y h r eby ar e , a u t h o rized and d i r ec t e d to take
a ll act io n n ec css r y o r appro pri a t e to ef f e ctuate t h e p rovisions
o f th is Ordin a nce.
Sec t ion 1 3 . Es row Ag r eeme nt. The Ma yor a nd the
Dir c to r of F i n n e, x -Ci i o C i t y Cl r k and T r as ure r of
he Ci ty shall, a n d th e y ar her b y a u t horiz d and d i rected to
take a ll n ee ss a r y o r ap pro~r ia t a c i on toward the e xecution
o f a prope r Esc r o w A r e M0 n t wi h h e B nk con rn i ng the
d e posit s i n, inv ~s m n s o f n d di :bur s m n s Cr o m t he Refunding
E~c r o w Ac o t, ~nd _uc h h r aqr ·P mcn s as ma y b e ne c e s sary
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o r de ir ble to effe ctua t e the provisions of this Ordinance
nd comply with the requir men s of law .
Section 14. Publ ica ion o f Notice of Rcfundin .
On or about the date wh n the S e wer Rev e nue Refundi ng Bond s
are delivered, or wi thin a reasonably time thereafter, the
Director of Finance is authorized and directed to publish
a Notice of Refunding one t ime in a newspaper published in
the City.
Section 15. The City cov e n ants a nd
agrees that it will no · mak o r permit any use of the proceeds
of the Sewer R venue R funding Bonds uthoriz d h erei n which
if such use had been r e ason bly expected on the date of
issuance of the Refunding Bond s would have ca u sed suc h
obligations to be arbitrag e bonds within th e meaning of
Section 103(d) of the Internal Revenue Code of 195 4, as
m nded, and th H gulalions th r e u '1"' · i n ef fl't:t at the
time of such us e and applicable to the obligations issued
on the date of issuance of the Refunding Bonds.
Section 16. Ordinance Severa ble and Irr eala ble.
That if any one or mo r e Sec t ions or parts of this Ordi nance
shall be adjudg d unenfor ce able or invalid, such judgment
shall not affect, impair o r i n v lidat the rem a ini ng provi-
sions of this Ordinance, it b ing the i ntent ion t ha t the
various provisions h r of r sev rabl
All ordin n ccs or p r s th r e of i n conflic with
this Ord i n n e e arc h r b y r
Af e r a id S wer Re v nu Re funding Bonds are
i ssued, this Ord i nance s hal l b e nd r e main irrepe alable
until said bond s a nd t h e i n •r s h r o n s hall h a v b e n
fully paid, sat i s f i d an d a ·sc h a ed.
Section 16a . Hearin . In ac cordance wfth Section 40 of the
City Charter , the Cfty Council shall hold a public hea r i ng on this
ordinance before final pilssage at 7:30 p.m. on Monda y, March 1, 1975 •
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Sectfon 17. Publ ·ca tio n and Effectfve Date. This ordinance,
after its ffnal passage, shall be numbered and recorded, and the adoption
and publfcatfon shall be authent i cated by the signature of the ~layor and
the Director of Finance, ex-officic City Clerk, and hy the Certificate of
Publ icat i on. This Ordinanc e shall become effective thirty (30) days after
pu bl ication following f i nal pa ss aqe .
Introduced , read i n f ull anc passed on first readin g on the
17th day of February, 1976 .
Publ i shed as a Ci ll for an Ordinance on the 18th day of
Fe bruary, 1976 .
Rea d by t i tle and passed on f inal rea di ng on the 1st day of
March, 1976 .
Published by itle as Ordina nce flo . fl , Ser i es of lq7 6 , on
the ~day of '1ar ch, 1 97 ~.
ATI EST :
EX OFFICIO CITY ~:tREASURER
I, William D. J ames. ex officio r.ity Clerk-Treasurer of the
Ci t y of Englewood, Co lorado, do hereby certify that the above and fore-
go fng is a true, accurate and complete copy of the Ordinance passed on
f i nal reading and published by t i tle as Ordinance No . JL. Series of
1976 .
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