HomeMy WebLinkAbout1975 Ordinance No. 011•
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I TRODUCED AS A BILL BY COUNCILMAN SOVERN .
BY AU THORITY
ORD I NANCE NO. 11 , SERIES OF 1975
A ORDINANCE AUT HORIZING THE ISSUANCE OF GENERAL OBLIGATION
REFUNDING WATE R BONDS, SERIES 1975, IN THE PRINCIPAL AMOUNT
OF $ 4,100,00 0 , DATED APRIL 1, 1975, OF THE CITY OF
E GLEWOOD, COLO RADO, FOR THE PURPOSE OF REFUNDING AND PAYING
OUTSTANDING CIT Y OF ENGLEWOOD GENERAL OBLIGATION REFUNDING
WATER BONDS , SE RIES 1965, IN THE AMOUNT OF $2,750,000, DATED
SE PTE BER 1 , 1 965, AND GENERAL OBLIGATION WATER IMPROVEMENT
BONDS , SERIE S 1971, IN THE AMOUNT OF $1,775,000, DATED
APRIL 1, 197 1 ; PROVIDING FOR THE ESTABLISHMENT OF AN ESCROW
ACCOUNT FOR THE PAYMENT AND REDEMPTION OF SAID OUTSTANDING
BONDS; PROVID ING FOR THE LEVY OF TAXES AND FOR THE APPLICATION
OF THE NET RE VENUES OF THE WATER SYSTEM OF THE CITY TO PAY SAID
REFUNDING BO NDS AND THE INTEREST THEREON; PRESCRIBING THE FORM
OF THE REFUNDI NG BONDS AND INTEREST COUPONS TO BE ATTACHED
THERETO; AND PRESCRIBING OTHER DETAILS IN CONNECTION THEREWITH.
HERE AS, the CitJ of Englewood, Colorado, owns, maintains
an d operate s a municipal water system; and
WHERE AS, by Ordinance heretofore adopted and approved
by the City Council, the City has authorized the issuance of
its General Obligation Refunding Water Bonds, Series 1965,
d a t e d September 1, 1965, in the amount of $4,845,000 (herein
r eferred to as the "1965 Issue"), of which there now remain
outstanding o f said issue of bonds the amount of $2,750,000,
being bonds nu mbered 420 to 969, inclusive, bearing interest
payable semiannually on June 1 and December 1 each year, and
maturing Decem ber 1, as follows:
Bond Num bers Amounts Interest Rate Years
(All Incl usive) Maturing (Per Annum) Maturing
420 -4 76 $285,000 3.10% 1975
477 -53 5 295,000 3.15% 1976
536 -5 96 305,000 3.15% 1977
597 -6 57 305,000 3.20% 1978
658 -71 8 305,000 3.20% 1979
719 -7 79 305,000 3.25% 1980
780 -8 41 Jl0,000 3.25% 1981
842 -904 315,000 3.30% 1982
905 -96 9 325,000 3.30% 1983
and
WHEREA S, bonds of this issue maturing in the year 1975
ar e redeemabl e at the option of the City six months prior to
their maturity da te upon payment of par and accrued interest
plus a premium of six months' interest at the rate specified
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• in the coupons at t a ched to the bond or bonds being called
for red em pti o n; b o nds maturing in the years 1976 and there-
after being redeemable at the option of the City on Decem-
ber 1, 1975, an d on any interest payment date thereafter in
inv erse nume rical orde r upon paym e nt of par and accrued in-
tere st only ; and
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WHEREAS, by Ordinance heretofore adopted and approved
by the City Coun cil, the City has authorized the issuance of
its General Oblig ation Water Improvement Bonds, Series 1971,
dated April 1, 1971, in the ~mount of $2,200,000 (herein re-
ferred to as t he "1971 Issue"), of which there now remain
outstanding the a mount of $1,775,000, being bon~s numbered 86
to 440, inclusive, bearing interest payable . semiannually on
April 1 and Oct ober 1 each year, and maturing on April 1 as
follows:
and
Bond Numbe rs
(All Inclusive)
86 -1 09
110 -1 35
136 -. 1 62
163 -1 91
192 -2 21
222 -2 53
254 -2 87
288 -3 22
323 -3 59
360 -3 98
399 -4 40
Amounts
1'1aturing
$120,000
130,000
135,000
145,000
150,000
160,000
170,000
175,000
185,000
195,000
210,000
Interest Rate
(Per Annum)
3.501.
3.501.
4.001.
4.001.
4 .00%
4.401.
4.401.
4.401.
4.70%
4.70%
4.80%
Years
Maturing
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
WHEREAS, b onds of this issue maturing in the years 1982
-and thereafter are redeemable prior to their respective ma-
turity dates at th e option of the City, on April 1, 1981 and
on any i nterest p a ym ent date thereafter, in inverse numerical
or d er, upon paym ent of par, accrued interest and a premium of
1% of p ri nc i pal; an d
WF.EREAS, th e City Council has detennined that the out-
s tan ding 19 65 an d 1971 Issues dated September 1, 1965 and
April 1, 19 71, respect i ve ly, des cribed in the immediately
pr e ce d ing paragraphs, c an b e re funded by the issuance of
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• refunding bonds i n th e principal amount of $4,100,000, .
thereby reduci ng total debt requirements to be paid by the
City, to the be ~e f it of the City and its inhabitants; and
HEREAS, th e City has deter mi ned that it is necessary
at this time to authorize the i s s u ance of General Obligation
Refunding ater Bon ds, Series 1 975, in the principal amount
of 4,100,000.
BE IT 0 DAINE D BY THE CIT Y CO UNCIL OF THE CITY OF
E GLE OOD, COLORAD O:
Section 1. Th at for the purpose of refunding and paying
the City's outstan ding General Obligation Refunding Water
Bonds, Series 1 965, in the amount of $2,750,000, dated
September 1, 19 65, and its General Obligation Water Improve-
• ment Bonds, Seri es 1971, in the amount of $1,775,000, dated
April 1, 1971, t he City shall issue its General Obligation
Refunding ater Bonds, Series 1975, in the principal amount
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of $4,100,000 , e ach to be designated "General Obligation
Refunding Wate r Bond, Series 1975".
The bonds s hall be dated April 1, 1975, and shall con-
sist of 820 bonds i n the denomination of $5,000 each, numbered
1 to 820 , inclus ive, bearing interest not t o exceed 8% per
annum, payable o n August 1, 1975 and semiannually thereafter
on the 1st day of February and the 1st day of August each year
and shall matu r e se rially on Au g ust 1 as follows:
Amount
$310,000
370,00 0
400,000
410,000
420,000
435,000
460,000
475,000
500,000
320,000
Maturity
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
Interest Rate
J.JO%
3.30%
3.30%
3.30%
J.JOS
3.30%
3.30%
J.30%
J.JOS
J.JO%
The specific intere s t rates that these bonds shall bear,
not exceeding the rate stated above, shall be fixed by Reso-
lution of the Cit y Co uncil on Monday, March 3, 1975, the date
of public sale o f s aid Refunding Bonds.
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The net effective interest rate of this issue of bonds
is 5.182 i. per annum .
Bonds of this issue maturing on or before Aueust 1,
1982 shall not be redeemable prior to their respective ma-
turit~ dates. Bonds maturing on or after AuRust 1, 1983
shall be redeemabl e at the option of the City on August 1,
1982 and on any interest payment date thereafter, in inverse
numerical order, upon paym ent of par, accrued interest and
a premium of 1% of principal.
The estimate d period of usefulness of the property and
improvements acquired or constructed with the P!Oceeds of
the bonds refunded by this issue is at least twenty-five
(25) years.
The bonds and the interest coupons attached thereto shall
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be payable in lawful money of the United States of America, at
the First Nati onal Bank of Englewood, in Englewood, Colorado.
Section 2. The bonds shall be signed with .the facsimile
signature of the Mayor of the City, with a facsimile of the
seal of the City affixed thereto, and attested and counter-
signed by the manual signature of the Director of Finance,
ex-officio City Clerk-Treasurer of the City. The interest
coupons attache d to said bonds shall bear the facsimile sig-
nature of the Director of Finance, and when issued as afo~e-
said as part of said bonds, shall be the binding obligations
of the City according to their import. Should any officer
whose manual or facsimile signature appears on said bonds or
the interest coupons attached thereto cease to be such offi-
cer before delive ry of the bonds to the purchaser, such
manual or facsimi le signature shall nevertheless be valid and
sufficient for all purposes.
The bonds and interest coupons attached thereto shall be
in substantially the followin~ form:
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(Form of Bond)
UNITED STATES OF AMERICA
STATE OF COLO RADO COUNTY OF ARAPAHOE
CITY OF ENGLEWOOD
GENERAL OBLIGATION REFUNDING WATER BOND
SERIES 1975
No. $5,000
The City of Englewood, in the County of Arapahoe and
State of Colorado, acknowledges itself indebted and. hereby
promises to pay to the bearer hereof, the principal sum of
FIVE THOUSAND DOLLARS
in lawful money of the United States of America, on the 1st
day of August 19 w~th interest thereon at the rate of
--------------per centum ( _____ 1.) per
annum, payable on August 1, 1975 and semiannpally there-
after on the 1st day of February and the 1st day of August
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each year, both principal and interest being payable at the
First National Bank of Englewood, Englewood, Colorado, upon·
presentation and surrender of said coupons and this bond as
they severally become due.
Bonds of this issue maturing on or before August 1,
1982 shall not be redeemable prior to their respective ma-
turity dates . Bonds maturing on and after August 1, 1983
are redeemable prior to maturity at the option of the City,•
in inver se numerical order, on August 1, 1982 and on inter-
est payment dates thereafter, upon payment of par, accrued
intere~t and a premium of 17. of principal .
This bond is issued by the City Council of the City of
Englewood, Colo~ado for the purpose of providing funds with
which to refund and .pay outstanding <;eneral Obligation Water
Bonds of the City, under the authority of and in full con-
formity with .the Constitution of the State of Colorado, the
Charter of said City, and pursuant to an Ordinance duly
adopt e d, published and made a law of said Gity prior to the
issuanc e of this bond.
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It is here by ce r tif i e d a n d :-ec ited that all the r e qu i re-
ments of law have b e en duly compl i ed with by the proper offi-
cers of the Cit y i n the issuance of this bond; that the total
debt of the City , including that of this bond, does not ex-
ceed any limit of i ndebtedness prescribed by the Constitution
or laws of the State of Colorado or the Charter of the City;
and that provision has been made for the levy and collection
of an annual tax on all of the property in the City, and for
the application of the net revenues of the municipal water
system of the City, sufficient to pay the interest on and
principal of this bond when the same become due.
The full f aith and credit of the City of Englewood,
Colorado are hereby pledged for the punctua~ payment of ·the
principal of a nd interest on this bond.
IN TESTIM ONY WHEREOF, the City Council of the City of
Englewood, Col o r ado has caused this bond to be signed with
the facsimile s i gnature of the Mayor of the City, sealed with
a facs i mile of t he seal of the City, and attested and counter-
signed by the manual signature of the Director of Finance,
ex-officio City Clerk and Treasurer, and the interest coupons
attached hereto to be signed with the facsimile signature of
the Director o f Finance, as of the 1st day of April, 1975.
(FACSIMILE SEA L)
ATTESTED AND
CO UNTERSIGNED:
Director of Finance
(Facsimile Signature)
Mayor
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(Form of Inte~est Coupon)
$ __
No .
February
On the 1st day of August, 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 and State of Colorado, will pay to bearer
hereof the amount shown hereon, in lawful money of the
United States of America, at the First National Bank of
Englewood, Englewood, Colorado, being interest then due on
its General Obligation Refunding Water Bond, Series 1975,
dated April.l, 1975, bearing
No.
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(Facsimile Signature)•
Director of Finance
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• Section 3. When said re f und i ng bonds have been duly
executed, the Dir e ctor of Finance is hereby directed to
deliver the bonds to the purcha s er thereof on receipt of the
agreed purchase price t herefor . The proceeds of the bonds
shall be used only for the pur pose stated herein, and for
paying the cost s and e xp e nses i n c urred incidental to the
issuance of sai d bonds a nd for no other purpose whatever.
Neither the purchaser of said bonds nor the subsequent
holder o f any of them shall be responsible for the applica-
tion o r d ispo sal by the City or any of its officers of any
of the fund s derived from the sale thereof.
Se c tion 4. For the purpose of paying the interest ac-
cruin g on sa id refunding bonds promptly as the same thereafter
becomes due, and providing for the ultimate payment and re-
dem ption of said bonds, there shall be levied upon all of the
t a x able property in the City, in addition to all other taxes,
dire ct annual taxes in each of the years 1975 to 1983, inclu-
sive, sufficient to pay the interest on and principal of the
bonds as the s ame become due and payable, respectively.
S ction 5 . Said taxes, when collected, shall be deposit-
ed in a special fund to be known as "City of Englewood
Genera l Ob liga tion Refunding Water Bond Fund, 1975", and the
proceeds derived from said taxes shall be applied only to the
payment of nece ssary costs and expenses of operating and main-
taining the water system and to the payment 0£ the interest and
• princi p al of t he refunding bonds authorized herein, and for no
other purpose whatsoever, until the indebtedness so contracted
pursua nt to t his Ordinance, both principal and interest, shall
have been fu l l y paid, satisfied and discharged. Nothing here-
in con tained s hall be so construed as to prevent the City
from ap?lying any other funds or revenues that may be in the
City trP a sury a nd a va il ab l e for t h a t purpose to the paym e nt of
said interest a nd princ i pal, as t he same respectively accrue
or mature, and upon such p a ym e nt the levy or levies herein pro-
vided may thereupo~ to that extent be diminished.
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Section 6. The sums herein provided to pay the inter-
est on said re funding bonds, and to discharge the principal
thereof when d u e, are hereby .appropriated for that purpose,
and said amoun ts for each year shall also be included in the
annual budget and appropriation Ordinance and bills to be
adopted and p~s sed by the City Council of said City in each
year, respecti vely, until sa~d refunding bonds have been fully
pai d, satisfied and discharged.
Se c tion 7. Notwithstanding the foregoing provisions for
t a x l e v ie s , t he City hereby further cqvenants and agrees to
estab lish, maintain, collect and enforce a s~hedule of rates,
fee s, t o l ls and charges for connection to and use of the
water system of the City, which schedule shall be sufficient
to assure th at the revenue thereby produced, together with
any other .funds which may be lawfully available, and the pro-
ceeds of gen eral ad valorem taxes, shall pay all reasonable
costs and e xpenses of operating and maintaining the water
system and t o pay the interest and principal of the General
Obligation Refunding Water Bonds, Series 1975, herein author-
ized, prompt ly as the same become due and payable, respec-
tively,.
Section 8. It shall be the duty of the City Council of
said City, a nnually, 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 c arry out the provisions hereof with reference to
the levying a nd collection of taxes; 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 of the
costs and ex p en ses of operat i ng and maintaining the water
system, an d the payment of the principal of the bonds and in-
terest there on , and such taxes when collected shall be kept
for a nd applied only for such purpose, as hereinabove speci-
fied.
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• Section 9 . Th e proc e eds derived from the sale of the
refunding bon ds au t ho ri z e d h e r ein, in an amount not less
than$ 4,100,00 Q and the accrued interest on the bonds being
refunded, shal l be de p osited wi t h
Continental Nationa l Ban k of Englewood
(heFeinafter d e s igna ted the "Bank"), in a separate fund and
escrow account h er eby created and known as the "City of
Englewood Gener al Ob ligation Water Bonds, Series 1965 and 1971,
Escrow Account ", herein designated as the "Refunding Escrow
Account" or "Es crow Account", which account shall be at all
times sufficient, together with any interest -to .be .derived
from the investment and any temporary reinvestment of the
deposits, or any part thereof , in direct obligations or
• Agency obligat ions of, or obligations guaranteed by the
United States of America, to pay the principal of and inter-
e st on the o u t standing issues to be retired, at their respec-
tive maturiti es, as follows:
1965 Issue:.
Bonds num bered 420 to 969, inclusive, maturing in the
years 1975 and thereafter, shall be paid and retired at their
respective maturity dates, at the First National Bank of
Englewood, i n Englewood, Colorado, according to their original
terms.
1971 Issue:
Bonds numb ered 86 to 440, inclusive, maturing in the
• years 1976 an d thereafter, shall be paid and retired at their
respective mat urity dates, at the First National Bank of
Englewoo d, in Englewo od, Colora do, according to their orginal
terms.
Interest on th e o utstandin g bonds of the 1965 and 1971
Issu es shall be p aid a s the same accrues~ according to the
original terms of said bonds , until said bonds mature.
Se ction 10 . Th e Ba nk sh all i nvest the funds on deposit
in the Refunding Escrcw Ac c oun t in direct obligations .of,
Agency obligations of, or obligations guaranteed by the
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• United States of America, and shall fully secure any cash
balance in said account in the manner required by law for
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other trust funds.
Sectipn 11. If for any reason, at any time, the funds
on hand in such Refunding Escrow Account shall be insuffi-
cient to meet the payments required as the same shall be
about to become due and payable, the City Council of the
City shall forthwith deposit in such Refunding Escrow Account
such additional fu~ds as may be required fully to meet the . .
amount so about to .become due and payable.
Section 12.
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The Bank shall from time to time redeem
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all or a portion of. the obligations in said Refunding Escrow
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Account, in sufficient amounts so that the proceeds therefrom
and the interes t thereon as the same accrues will be suffi-
cient to meet tpe interest requirements on the outstanding
Issues as such interest accrues, and to pay or ·call in and
redeem said bonds at ~their respective maturities, according
to the schedule hereinabove set forth.
Section 13. Th~ Mayor and Director of Finance of the
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City shall, and th~y 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 s of and disbursements from said Re-
funding Escrow Account, and such other agreements as may be
necessary or desirable to effectuate the prov!sions of this
Ordinance and compiy with the requirements of law.
Section 14. On or about the date when the refunding
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bonds are deliverep, or within a reasonable time thereafter,
the Director of Finance is authorized and directed to pub-
lish a notice of refunding one time in a newspaper published
in the! Ci ty .
Section 15. The City cov nRnts and agrees that it will
make n 0 u s e of the procP.eds of the refunding bonds authorized
herein which might c·ause such obligations to be arbitrage
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bonds within the m~aning of Section lOJ(d) of the Internal
Revenue Code or 1954, as amended, and the Regulations pro-
posed and in effect thereunder.
Section 16. That if any one or more sections or parts
of this Ordinance shall be adjudged unenforceable or invalid,
such judgment shall not affect, impair or invalidate the re-
maining provisions 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 reftlnding 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 discharged.
Section 19. This Ordinance, immediately on its final
passage, shall be recorded in the Book of Ordinances kept
for that purpose, authenticated by the signatures of the Mayor
and Director of Finance, ex officio City Clerk, and shall be
published as required by law.
Section 20. This Ordinance shall take effect thirty
(JO) days after publication following final passage.
INTRODUCED, READ IN FULL, AND PASSED ON FIRST READING
ON THE 18th day of February, 1975.
PUBLISHED AS A BILL FOR AN ORDINANCE ON THE 20th day
or February, 1975.
READ BY TITLE AND PASSED ON FINAL READING ON THE
day of I 197 5 o ----.----
PUBLISHED BY TITLE AS ORDINANCE NO. // I SERIES OF
1975, ON THE , 197 5. --------day or
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ATTEST:
ex of~~"'cCf:.~-Treasurer
I, Karl Nollenberger, ex officio City Clerk-Treasurer
of the City of Englewood, State of Colorado, do hereby certify
that the above and foregoing is a true, accurate and complete
copy of the Ordinance, passed on final reading and published
by title as Ordinance No. , Series of 1975.
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