HomeMy WebLinkAbout2004 Ordinance No. 059•
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ORDI NAN ENO. ;;ff_
SER IES OF 2004
BY AUTIIORITY
COUNC IL BILL NO . 60
INTRODU CED IJY COUN CIL
MEMIJER 13RADS I·IAW
AN ORDI NA Cl , r'F T!IE CIT Y OF ENG LJ,WOOD AU TI·IORI ZING TII E ISS UAN CE OF
GENER AL OIJ I IGA TIO "' BO NDS, SERIES 2004, TO FINANCE THE CONSTl,,I_'(. fl ~ ' OF
IMPR OVE 1•-<,;t rr , l'II E (;!TY'S WAT ER SYS TEM AND AUTHORIZING THE LEVY OF
PROPERT l"II Y:..S. NECE 'SA RY , TO PAY SUC H IJO 'DS ; PROVIDING THE FORM OF THE
BO NDS ANl' ,, H .,~ DETAiLS IN CONNECTION THEREWITH ; AND APPROV ING
DO CU MENTS k i:L.1? INC TO Tlit IJ ON DS .
WI-IER EAS, the City of Englewo od, Co lorn do is a mun icipal co rporation dul y organized and
opcrn ting as a home rule city under Article XX of the ConstitutJO n of the State o f Co lorado and the
Charter of the City (u nl ess otherwise indicated , cap it al ized term s used in thi s pre amb le shall have the
meanings set fort h in Se ction I of th is Ord in ance); and
WHEREAS , pursuant to Section I 04 of the City Charte r, the Ci ty is auth orized to iss ue genernl
ob li gati on bonds for any public cap ital purpo se, subje ct to ob taining vo ter app rova l of a ballot que stion
aut horizing such bonds; and
WHEREAS , at an election on No vember 4, 1997, th e fo ll owing ballot que stion (t he "Ba ll ot
Que stion") was approved by a majority of th e eligible el ec tors of the City vo tin g on th e Ballot Ques ti on:
SHALL THE CITY OF ENG LEWOOD DEIJT IJE INCREASED $15,100,000 .00 WITH A
REPAYME NT COST OF $25 ,300 ,000 AN D SHALL THE CITY OF ENGLEWOOD'S TAXES BE
IN CREASED Sl ,300,000 ANNUALLY FOR THE PAYME NT OF SUC H DEBT , ALL FOR THE
PURPOSE OF FI NANC ING THE CON STRUCTION OF IMPR OVEMENTS TO TII E CITY 'S
WATER SYSTEM AND TH E PURCHASE OF WATER PROCESSING EQ UIPMENT INC LUDING
ALL NECESSARY AND APPURTENANT FACILITIE S, IJY THE ISSUANCE AND PAYMENT OF
GENERAL OBLIGATION IJONDS PAYABLE FROM SUCH CITY FEES, TAXES OR OTHER
REVENUES AS Tiff CITY COUNC IL MAY DETERMINE, WHI CII IJONDS SHAL L BE SUIJJECT
TO REDEMPTION , WITH OR WITHOUT PREMIUM , AND BE IS SUED AT SUC H MAXIMUM
IN TEREST RATE , DATED AN D SOLD AT SUCM TIME OR TIM ES AT SUC H PRI CE S (AT ,
AIJOVE, OR IJELOW PAR) AND IN SUC H MANNER AND CON TAINING SUC H TERMS NOT
INCONS ISTE. T HEREWITH , AS Tl-IE CITY COUNC IL MAY DETERMINE , WHICH
AUTHORIZATION SHALL INCLUDE AUT HOR IZA TIO N TO REFUND SUCH BONDS WITHOUT
ADDIT IONAL VOTER APPROVAL ; AND IN CONNEC TI ON TI·IEREW ITH IF DETERMINED IJY
THE CITY COUNC IL (I) SHAL L THE CITY'S AD VALOREM PROPERTY TAXES BE
IN CREASED IN ANY YEAR IN AN AMO UN T SUFF ICIENT TO PAY Tl·IE PRI NCIPAL OF ,
PREMIUM , IF ANY, AND INTEREST ON SUC H BONDS WHEN DUE, WITHOUT LIMITATION
AS TO RATE OR AMOUNT OR ANY OTHER CON DITION AND (II ) SHALL THE P.EVENUES
FROM SI I<:H TAXES AND ANY EARNINGS THEREON AND FROM THE INVESTMENT OF THE
PROCE~, , OF SUC H BON DS CONS TITUTE A VOTER-APPROVED REVENUE CHANGE ?
W, • :l.EAS, the Counci l has not previous ly iss ued debt pursuant to suc h vo ter au th ori za ti on and
ha s determined th at it is in the bc s1 intere sts o f the Cit y and it s rt!sidents to issue $3,075,00 0 in princ ipa l
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amount of gem:t~t o bli gati o n bonds at thi s time for the purp os e o r finan c ing th e cons tru ctio n o f
improvcm ent s to 1t1c. l'i1y 's w;.Ut!r syst em; and •
WI IEREA :; o n the date o f iss ua nce o f the Se ri es 2004 Bo nds , 1hc amou nt o f bond ed
in debtedne ss will 110 1 exccc d 3% o f the lat es t actua l va luat ion fo r ass ess ment oftht: City; and
WHER EAS. th e iss uance o f gen ern l ob ligation bond s by the Cit y sec ured fr om a pl edge to levy
property taxe s, if 1.tccssary, resuh s in the lowest borrowing cos 1 to the Cit y, such o bli gati on can be repaid
fr om ot her lc ga ll) rwa ilablc mone ys o r the Cit y and the Co unc il intend s to use re ve nues from the
opera ti on of the Cu:,.-s wme r system to repay the Bon ds; and
\\I HERE1\S, th e City ha s been pre se nted wit h a proposed form of agree ment from George K.
Baum & Co mp11lv, of Denve r, Co lorado, fo r the purc ha se o f the Bond s upo n speci fied terms and
co nditions und. nft ~r co nsider ation , the Cou nci l has de termined th at th e negotiated sa le o f the Bonds to
said finn is to th t; U-..:-st advantage of th e Cit y; and
WHEREAS. the City Counc il desi res to authori ze th e issuance an d sa le of the Bo nd s and, as
pro vided in Title 11 , Art icle 57, Part 2, C.R.S., de lega te autho rit y to the Sa le De legate to make certain
determin ation s rega rdin g the Bond s to be set forth in the Sa le Certificate in acc o rd ance with the
pro visions of thi s Ordina nce ; th erefo re
BE IT ORDA INED BY TH E CITY COUNC IL OF Tl-IE CITY OF ENGLEWOOD ,
CO LORADO :
Section 1. De finitions . The fo ll owing term s shall have th e fo ll owing meani ngs as use d in thi s
Ordin anc e:
"Ac1" means Part 2 of Arti cle 57 of Title 11, Co lorado Revi sed Stat ut es, as amended, or any
succ esso r statutes th ereto .
"Ballot Qu es tion" mean s 1hc ba ll ot qucslion approved by Cit y vo ters quoted and defined as such
in th e preamble s heret o.
··/Jo nd Accou,i(' mean s the account es tabli shed by the pro vis ions here of to account fo r the
mone y· ro r whic h a separa te tax levy is made , or le ga ll y available money s are app lied, to sa ti s fy the
ob li gati ons of the Bond s . The Bond Account shall be a sub si di ary acco unt o f the ap propri a1c fund or
acco un t o r th e Cit y and separa tely account ed fo r by the Cit y in accordan ce with the prov is ions hereof .
.. 8011d Co 1111 se r mea ns (a) as of th e dat e or iss uan ce ofthc Bond s, Kut:ik Rock LLP , and (b} as or
any oth er date. Kutak Roc k LLP or such other attorneys se lected by the Cit y with nat ionall y ri;c og ni zcd
experti se in the iss uam:c o f mun ici pa l bo nds .
··Bond /n sww,cc Poli cy" mean s the mu ni cipa l bond in surance poli cy iss ued by th 1.: Bond In surer,
if any, in su ring the pa yment whe n due of the prin cip al o f and int erest on the Bond s as pro vided there in .
"/J ond ln.mrer·· mean s entit y, if any, de signated in th e Sa le Certificate whi ch is to iss ue the Bond
In s uran ce Poli cy.
"Bond Obli gatio n" means, as r any date, the principa l amo unt o f th e Bonds Outstanding as of
suc h dat e.
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"Bond P11 rdwse Agreemcllt" mean s the Bon d Purchuse Ag ree ment , pll rs uant to whi ch the.: Cit y is
to ag ree to se ll and th e Unde rwr iter is to agree to purchas e the Bond s at th e prices and on th e tcm1 s set
fo nh 1hcrci n.
"Bonds" nnd "Series 2004 Bomls·· mea ns th e Bond s au1h ori zcd by th e Sec ti on hereo f titl ed
"Auth ori za tio n :ind Purpo se of Bo nd s."
"811si11 css Day" mea ns an y day oth er th an {a) a Saturd ay or Sunda y or (b) a day on whi ch banki ng
in stituthm s in th e State arc aut horized or obl iga ted by law or execu ti ve ord er to br close d fo r busin ess.
''Charter" mea ns the home rul e Chart er of th e City.
"City" mea ns the C ity of En gle wood, Co lora do, and any succ esso r th ereto.
"Code" mea ns th e In te rn al Re ve nu e Co de of 1986, as amend ed. Eac h refer ence to a secti on of
th e Code he rein s;1.1 11 be deemed to include th e Uni ted States Treasury Regulati ons prop os ed or in effec t
th ereunder and applic able to th e Bond s or tl,e use of pro ce ed s th ere of, unle ss th e ~~ll.:xt clearly require s
oth erwi se.
"Commitm ent" mean s that cert ain offer, if an y, to issue the Bond Insuran ce f'"l 1icy iss ued by the
Bond In surer.
"Councir' means the City Coun cil of th e Ci ty .
"Co •tmy'' means Arapahoe County , Colorado .
''D ated Date" me ans th e origin al dated date for the Bond s as es tabli shed in the Sale Cenifi ca tc .
"Def easan ce Securities" me ans bills , certifi ca te s of indebtedness, not es, bonds or similar
sec urit ies whi ch are dire ct, non call abl e obligati ons of the United Stat es of Am eri ca or which are fu ll y and
uncon diti onally guarante ed as to the tim ely pay ment of principal ·i nd intere st by t~,.. ; 1:-i it ed St ate s of
Amer ica, to the ex tent such in vestment s arc Pem1itt ed In vesun ,•r ts.
"DTC'' mea ns Th e Dep os itory Tru st Co mp :my, New Yo rk , Ne w York , an d its :iucc esso rs in
inte re st and ass igns.
"DTC Bfat1k e1 Len er of Represenw rions" mean s the lett er of re prese ntati ons fr om the Cit y to
DTC to in duce DT C to ac t as sec uriti es depos itory fo r the Bond s.
"£1 •e11t of Defau fI " ml·ans an , :,f th e evc m~ spec ifi ed in the Sec ti on hereof titl ed "Eve nt s of
Defa ult ."
"/nt eres l Payment Dat ~" mea ns the da te s es tabli shed in th e Sa le Certifi ca te for th e pay m~nl of
int erest on th e Bond s.
"Officia l Sta teme111" mea ns th e fina l Offi cial St:uem ent relating to the U1J nds .
··o,a.mmdi,i g" me ans, as of any J ate, all Bonds is .. ued and delive red by the City. exc ept th e
fo ll owin g:
(a) any Bond ronce ll cd by th e Cit y or th e Pa yin g Age nt, or oth erw ise on th e City's
behalf. at or befo re such date;
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(b) any Bond hel d by or on beha lf of the Cit y;
(c) uny ll ond fo r th e pa y m en1 or the redempti on of whi ch moneys or Dcfc asa ncc
Scc uri1 ics suffi cient to meet al: c f the paymc nl requi rem ent s of th e prin cip al of, premi um, if any ,
and int ere st on s uch Bond 10 the date of maturit y or pri or redemptio n th ere of, shall have
th ere tofore been deposi ted in trus t fo r s uch purpose in acco rdance with th e cdion hereof ti tled
··Dcfca sancc··; and
(d) any lost. appa rentl y des tr oye d, or wro ngfully tahn BonJ in li e u of or in
sub stituti on for which ano1hcr bond or ot her security shall have bee n executed and deli vered .
"Owner" mea ns th e Perso n or Perso ns in whose name or names a Bond is reg ister ed c..n th e
reg istrati on books mai ntai ned by the Pay ing Age nt pursua nt hereto .
"Paying Agent" mean s Amer ic an Na ti onal Bank , in De nve r, Colorado, and it s successo rs in
interes t or ass igns approved by the Ci ty .
"Pay in g Age,11 Agreement" means an ag reem ent b.:twcen the City and the Pay in g Agent
co ncernin g the duti es and ob ligatio ns of the Pay in g Age nt wtth res pect to th e Bonds .
"Permilted In ves tm ents" mea ns any inve stm ent in which funds of the City may be in ves ted un de r
the Charte r and the laws of th e State at th e time of such in vestment.
"Person" means a co rp ora ti on, firm , oth er body co rporate , partne rs hip , assoc iati on or individual
and also includes an executo r, administra tor, trustee, rece ive r or oth er repre se nt at ive appo inted acco rding
10 law .
"Prelimi11a,·y Offi cial Statement" mea ns the Prelimin ary Offic ial Statement pr epared in
co nn ec ti on with the sa !e and iss uance of th e Bond s.
"Pri11 cipa l Pay mem Dme" mea ns the date or dates estab lished in the Sa le Cert ifi ca te fo r the
pa yment of prin ci p.,1 of the Bonds .
"Projec t" me ans an y purp os<: for which proceeds of th e Bond s may be ex pended un der the Act
and th e Ballot Question , including, bu t not limited to, the pay ment of cos ts of iss uan ce of th e Bo nds.
··Project Acco1111 1" me ans th e accou nt estab li shed by th e prov isio ns hereo f for tht! purpose ci
pay ing the cost s properl y att ribut ab le to th e Projec t. The Project Accou nt shall be a s ubsidia ry accou nt f
the approp ri ate fu nd or acco unt of the City, and separately acco unted for by the City in accordance with
the prov isions hereof.
''Reco rd Da ·· mean s, if the Int erest Pay ment Date is on the fi n·· day of th e month , th e fift ee nth
da y of th e month im .. cdiat ely prece ding th e month (w heth er or not s uch day is a Bu sin ess Day) in whi ch
s uch Inte res t Pay ment D,ue occ urs and, if the lnh:rc st Pay men t Date is on th e fift eenth da y of th e month,
th e firs t day of the ni onth (w heth er or not s uch da y is a Bu si m•ss Oay ) in whic h s uch In te res t Pay ment
D:.11 e occ urs.
"Ordi,wn ce" me ans th is 01d in anc e, in cluding any amend ment s or supp leme nt s here to.
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"Sale Ce rtiflca re" mean s th e certific ate exec uted by lh c Sa le Del ega te und er th e auth ority
de legated pur s ua nt 10 thi s Ordinance, including bu t not limit ed to th e Sections hereof titl ed "Bond •
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Detai ls," "Rede mpti on of Bond s Pri or to Maturi ty". "Approva l o f Related Doc ument s" and "Bond
In su rance Dete rmin ati on" whi ch sci for th , am ong other th ings , lhc r.ll c of in lcrcst on th e Aond s, th e
co ndi1i ons o n whi ch nnd the prices al which the Bond s m:.1y be redeemed befo re ma turi ty, thi: pri ce at
whi ch th e Bond s wi ll be so ld , 1hc Da ted Dute , th e amoun t of prin cipal maturin g in an y parti cular yea r, th e
dat es on which pr incipa l and int eres t wi ll be paid , wheth er or not th e Bond s wi ll be secured by th e Bond
In sura nce Poli cy ;md the term s of any ag reeme nt wi th the Bond In s ur er if a Co mmitment is accep ted
reg arding th e Bonds .
''Sa le Delegaw" mean s th e Directo r o f Finance and Ad mini stra ti ve Sc rvkc s of the Cit y or, in th e
even t suc h perso n is unavailable, the City Manage r.
"Sw1e" means th e State of Co lorado .
''Tax Leit er of In s tructions" mea ns th e Ta x. Letter of fn stru ction s, da ted the date on which the
Bo nd s are ori gin aJ1 ·1 i~s ucd and delivered to th e Ci ty by Bond Cou nse l, as s uch in structi ons may be
supe rse ded or ;.1mcm,.. :n acco rdance with thei r terms .
"U11de,writer'' .. :cans Geo rge K. Baum & Co mpany , Denve r, Co lorado .
Section 2. Authorization and Purpo se of Bonds . Pursuant to and in accordance wit h the Act,
the Charter an d the Ballot Question , th e Cit y hereby auth ori zes, and directs th at there shall be is s ued , th e
"Cit y of Eng lewood, Colorado, General Obli gatio n Bonds, Series 2004 ," in th e aggrega te ori gin al
prin cipal amo unt of$3,075 ,000 fo r the purpo se of providing fund s fo r th e Project.
Section 3. Bond Details .
(a) Registered Form, Denominalion s, Dated Date and Numbering . The Bonds
shall be issued in full y registered fonn, shall be dated as of th e Dated Date , and sha ll be registered
in the name s of th e Persons identified in the regist ratio n bo oks maint ained by the Pay in g Age nt
pur suant hereto. Th e Bonds shall be iss ued in denomination s of $5 ,00 0 in pri ncipa l amo unt or
any int eg ral multiple thereof. Th e Bonds shall be consecutive ly numbere d, beginning wi th the
number one, preceded by the letter "R,"
(b) ftl aturity Dates , Pri'1C:ipal Ammmts a11d lllterest Rates . The Bonds shall mature
on th e Principal Pa yment Date of th e years and in th e prin cip al amou nt s , and shall bea r intere st at
the ralcs per annum (ca lc ulated based on a 360-day year of tw elve 30-day mo nth s) set fo rth in th e
Sa le Cert ific ate . The Counc il hereby de legates 10 th e Sa le Delegale the ;:mthorit y to determine th e
l':i tcd Date , th e pr ice at whic h the Bond s wi ll be so ld , the pri ncipa l amou nt of Bonds ma tur ing in
any 1,.:rticu lar yc;i r and the ra te of in te res t on th e Bond s.
1,c) ... kaua/ 1111d Dutes tJ/ Pay meut "' llllerest. Intere st on the Bond s shall acc ru e at
the rat t:s sc i fort h in the Sa le Ce rtificate from th e later m the Dated Dat e or th e late st Int erest
P:.iy ment D;:1t c (or in th e case of defa ult ed in terest, th e latest date) lo whi ch int eres t has been paid
in full and sh:ill be payab le on each Int ere st Pa ymen t D:it c.
(d) Mu1111 er u11d Form of Puy111 e111 . l'rincipal of ea ch Bo nd shall be pa yab le to th e
Owner the reo f upo n pre se nt ati on ;md surren der of suc h Bond at th e prin cipal office of th e Payin g
Agen t in th e cit y ide nt ified in th e definition of Paying Agent in the Section hereof titl ed
··De finiti ons" or at s uch oth er o ffi ce of the Pay in g Agent desig nated by the Paying Age nt fo r suc h
purpose . lrucre st on each Bond shall be payab le by check or draft of the Pay in g Agent mailed on
each Int ere st Pa yment Date to the Owner thereof as of th e cl ose of business on th e corres ponding
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Rl·co rd Date ; pro\ 1dcd th:11 i111 eres1 payab le to nny Ow ner may be p:li d by any ol hcr mc:.1 11s agreed
to by s uch Owner :md th e Pa yin g Agent that docs not requir e the Ci ty to make moni:ys ava il ab le
to th e Pay in g Age nt ea rli er thun 01hcrwise required hereunder or in crcnsc th e cos ts borne by the
Ci ty hcrl'Un der . /\II pa yn11.:nt s or the pr incipa l of an d inte res t on 1hi: Bond s shall be made in
law fo l money of 1h...: United Stall'S or Amer ic;.1.
(c) B oo."'~£111ry Rt!Kistr(lfim,. Notw ith standi ng any ot her provi sion hereof, the
Bond s shall be dclh cred onl y in boo k en 1ry fo rm re gi stered in th e name of t''!dc & Co., as
nom in ee of OT C, a1..:t ing as sec ur iti es dep os it ory of th e Bonds and prin ci pal of antl :rncrest on th e
13oncls shall be paid by wire tran s fe r to OTC: provide d, how eve r, if at ;11 :y time th e Pay in g Age nt
determi nes, and not ifie s the Ci ty of it s dete rmin at ion, 1hat OT C is no longe r ab le 10 act as , or is no
longe r sati s fa cto ril y perform in g its duti es as , sec uritie s depo sitor y fo r the Bond s, th e Paying
Ager1t may, at it s di sc reti on, eith er (i) dcs igna 1c a s ub stit ute sec uriti es dep os it ory for OTC and
rereg istcr th e Bonds as dire cted by suc h s ub stitute sec uriti es depo sit ory; or (ii) termin ate th e book
entry registr ation sys tem and n:re gister the Bond s in the na mes or the bene fi cial ow ners ther eo f
pro vid ed to it by OTC. Ne ither the Cit y nor th e Paying Age nt shall have any liabi li tv to OT C,
Cede & Co., any s ub st itut e sec ur ities depos it or y, any Pe rso n in whose name 1hc Bo nd s arc
reregistcred at the dire ctio n of any sub stitute sec uriti es depo sitory , any benefi cial ow ner of th e
Bond s or an y oth er Perso n fo r {A) any dc:tcrmin ati on made by th e Pa yin g Agent pu rs uant to th e
pro viso at th e end o f th e immed iately preceding sentence or (B) any actio n take n to impl ement
such determin ati on and the procedure s relate d thereto that is taken pursuant to any direc ti on of or
in re li ance on any info rm ati on pro vided by DTC, Cede & Co., any s ubs titute se cu riti es depos it ory
or nny Person in whose name the Bo nd s arc rereg istered.
Section 4. Rcdcmplion of Bond s Prior lo Maturily.
(a) Optim,al Redemption . Th e Bond s shall be subject to red empti on at the opti on of
the Ci ty, in whole or in pan , and if in part in s uch orde r of maturiti es as the Cit y shall det ermin e
and by lot within a 111 ·1 turity on suc h da tes as set fo rth in the Sa le Certifi ca te. The Co unci i here by
delcga tl'S to the Sa le Dele ga te th e au th orit y to de termine the date s on which the Bond s shall be
subj ec t to opt ional redempti on and the red empti on price or pr ices at which s uch redempti on ma y
be made .
(b) 1Ha 11dutory Si11ki11g Fund Redemption . All or ;my prin cip al amoun t of th e
Bon ds rna y be subje rt to mandatory sinkin g fund re demptio n by lot 0 11 the Prin cipal Pay ment
Date of th e yea rs an d in th e prin ci pal am oun ts spe cified in th e Sa le Certi ficat e, at a redempti on
pr ice equa l 10 th e prin cipa l amount th crcor (v•ith no redemp ti on premium ), plus acc ru ed inh.:rc st
to the re demption date. Th e Co un ci l hereb y de lega te s to th e Sa le Del egate th e auth orit y to
determine the prin c ipal amoun1 s and date s on whi ch the Bond s shall be s ubj ec t to nwnd ;l\ory
sinkin g fund n:dcmp ti on.
(c) Redemption Procctlurcs. ;\/o ti cc or any rcd "mp ti on of Bo nds shall be given tq
the Pa yin g Agent in the nam e of the City by se ndin g a co py of suc h notice by fir st class . po stage
prepaid mail. not more than 60 da ys nor less than 30 da ys pri or to th e redemp ti on da te, to th e
Ow ner of eac h Bond bei ng 1.:dcem cd. Suc h notice shall specify the num ber or numb ers of th e
Bon ds so to be redeem ed (if redemp ti on shall be in part) ;-i nd th e rede mp tion dat e. If any Oond
sha ll ha ve bl!cn du ly ca ll ed fo r rede mpti on and if, on or before th e redemp tio n da te, th ere shall
ha ve been depos ited wit h th e Pay in g Agt:n t in act.:o rdan ce with this Ordinance fu nd s sufficient to
pa y the n:dem pti on pri ce or such Bond on the redemp ti on da te. th en such Bond shall become due
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and pa ya ble al s uc h red emptio n date , mid fr om ;md after such date int erest will cease to accrue •
lh c,co n. Fai lure 10 ddi ve r any redempti on notice or any dl!fec t in an y redemption not ice sha 11 not
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a ffect lhl' v;tlidit y o f the pro ceed in g fo r th e red empti o n of Bon ds with rcspcl:t lo whi ch such
failurl' or dc frcl <lid nut oc c ur. Any Bo nd rt:dccmcd pri o r to it s matu rit y by pr im rcdt:mpti on or
othawisc !-hall not be rdssucd and shall be ca nce ll ed.
Scc li o n 5. Sccu ri1 y for lite Bonds .
(a) Gt•m•rt1f Obli,:atin11J . Th e Bond s shall be gen eral o bligat :on s of th e Cit y and th e
full fiiith and crcdit of the Cit y :m: pl edge d fo r 1hc punctu al payment o f the prin cip al o f :111 d
inlt.:rc st on th e ll ond s. The Bonds shall not co nstitut e a debt or indebtedne ss of the Cou nt y, the
State ur any po litical subdivi sion o f the State oth er than the City.
(b) /.ei,y of Ad Va /orem Taxes . For 1he purpo se of payi ng 1he principal of and
int ::rcst on th c Bonds whe n :-1c1 re specti ve ly, the Co uncil shall annua ll y determine und certify to
the Boa rd of Co unt y Commissioners of th e Co unt y, a rate of levy for general ad va lorem taxC's,
with out limit ati on as to rate or amo unt, on all of the taxab le property in th e Ci ty, sufficient to pay
the prin ci pnl of and it '11 the Bonds when d ue , rc s pcclivc ly, whe th er at maturity or up on
earlier redemption .
(c) Applki. 1ceeds of Ad Va/orem Ta.\·es . The general ad valorem taxes
le vied pursuant to subsecu . of thi s Sec ti on , when co ll ec ·ed, shall be <leposited in the Bond
Accounl and shall be applied so lel y 10 1he pa ymenl of 1he princip al of and inle rest on lhe Bond s
and for no oth er purpose unti l the Bond s, including principal and in teres t, arc fully paid , sati sfied
and di scharged .
(d) Appwpriutimr ar.d B11dRt!ling of Proceeds of Ad Va /orem Taxes. Moneys
recei ved from th e general ad v:il orcm taxe s levied pursuant to subsecti on (b) of thi s Section in an
amount s ufficient to ·1y the principal o f and interest on the Bonds when due, respect ive ly, are
hereby approp riat ed h that purpose. and all amo unts required to pay the principal of and interest
on the Bonds due , respec tivel y. in c:1ch year sh.i ll be includ ed in the annu al bud ge t and
appropriation ordinance to be ad op ted and passe d by the Council for suc h yea r.
(c) U:w or A1frt1m·1..• "' Oth a Ll!,:ully A,·ailublc M,mcys . Nothing herein shall be
interpreted 10 prohibit or limit th e abi lit y of 1he City to use lega ll y availab le mone ys fr om the
o perati on of it s water s y!-l em to pay :Ill or uny poni n 0 f th e prin ci pal o f or interest on lhe Bond s.
If and to th e cx1en t s uch other lega ll y av :11labh: mone ys arc used to pay the principal a far interest
on the Bond s. the Cit y may, but shu \l not he required to. {i) redu ce th e amount o f taxes le vied for
suc h purp ose pu rs unnl to s ub s1:c ti o 11 (b) of 1hi "i cc ti un or {ii) use proc eeds of ta xes lev ied
pursu ant to subs ecti on lb) o f 1hi s SL·ction to reimburse the fund or acco um fr om which such ot her
le gally avai lable mone ys an: withdrawn for the amount withdraw n from such fund or accou nt to
pa y the principa l o fur int ere st on the Uond s. lftlu.: l'it y se lect s alternative (ii ) in the imm ediatel y
preceding se nt ence, the taxe s le vied pur:-i u,1111 to s ubsec ti o n {b) o f thi s Section shall include
amounts su ffi cie nt to fum.1 the reim hu r,emcnt.
(f) Catijirntitm w Cm rnty G111 1111i.<t.<ti1m tn . It is hereby declared that , if the Cit y
docs not otherwi se deten:iine :rnt.1 n·11i fy to the r!\,anl uf Cou nt y Co mmi ss ioners o f th e Cou nt y a
rat e of lev y for ge ne ral ;1d v;i lorcm propert y ta xes as required by s ub secti on (b) of this Section.
the foregoing prov is ions o r this Secti on shall co ns1 it11te a certifi ca te fr om th '! Co uncil to the
Board o f Cou nt y Co mmis s ioner s o f the Co unt y showi ng the :1ggregate am o unt of ad valorcm
taxe s to be levied by the 13 0:ml o f Co unt y Co mmi :.s ioner s o f th e Co u111 y from time to tim e, as
required by law, for the purpose 'Jf paying the prm cip al of and inter est o n th e Dond s when du e.
(g.) Vt•p,).\it of .\ltmL'_I',\ tu l'uy Uom/J ll'ith , ,uul Pu)'l11e11t of /Jmu/.\' by Pt1yi11,: Agent.
No later th an 1lm:c lJu :-mc ss D:1ys 11111ne diat d y preceding 1::11.:h date on whi ch a p;.i yment of •
principal of' or in1 cri:s 1 on 1hc Bond s is dul', thl' Cit y. fr om mone ys in th c Bo nd Acco unl. shall
dcpo si1 mone ys wil h the Pa ying Agen1 111 nn :111 11rn 111 su ffi cil.'llt 10 pay the prin cipa l of and intt.:rest
on th e Bond s due on such dnll'. Thi..• r•a ying Agcnl ~ha ll usc the moneys so depos ited wit h it to
p.:1y the prin cipa l of and inte res t on the Bonds whcn du c.
Section 6. Form of Bond s. Th l' Uuud?<i ... h:11\ bl' in ~ub s1a111ia ll y th e form sci fonh in Appe ndi x
A hereto with s uch ch:111gc s th ere to, no t in co 11 :..1Stl'nt hcn:wi lh , as ma y be ne cess ary or desirable and
appro ve d by 1he offic ial s of the Cily l'.-.;c cut ing the :-.a mc (whosc 111 :11111:il or fo cs imilc signa tures thereon
shall cons titut e co nclu sive cvid,·nc c of Mich nppro \•nl). All cove na nt s, sw tcment s. rep re se ntati ons and
agreements con 1a inecl in the Dund s arc hi:ri:b y approvcd and adopted as the cove nant s, stalcmc nt s,
rcprc sc muti uns and ag re eme nt s of 1lu: i1 y. 1\l1hou i;h at1rid1cd ,is appcndu.:cs fo r th e co nvenien ce of 1he
reader, Appendix A is an int egra l part of this On.l inancc und nrc in corporate d here in ;1s if se t forth in full
in !h e body of this Ordinance .
Section 7. Execulion of Bonds . The Bond s shall be exec uted in the nam e and on beha lf of the
City with the manua l or facsim ile sign ature of th e Mtty or, shall bc;1r a m:mual or fa cs imile of 1hc sen ! of
1he City and shall be :111es1cd by the manual or facsimile signature of 1hc Cit y Clerk of 1hc Counci l, all of
whom arc hereb y autho rized and directed 10 prepare and exec ute 1hc Bonds in acco rd ance with the
requirem ent s hereof. Shou ld any office r whose manual or fac simile sign:11urc appears on the Bond s cease
10 be s uch officer before delivery of any r :;uch manua l or facsimile signature shall nev crthclc ss be
va lid and su ffi cie nt for all purposes. Wh c11 ... ..: Oonds ha ve been dul y executed , th e offi ce rs of the City
arc aut hor ize d to, and shall . deliver the Bond s 10 the Pay in g Agen t fur amhcnt ic:1tion . No Bond shall be
se cured by or 1i1lcd to th e benefit of 1hi s Ordin ance, or shnll be valid or ob li ga tory for any purpose, unless
the certificate of authcntica1ion of the Pa ying Agent lms been manually exe cuted by an authori zed •
signat ory of the Payin g Agen t The execu ted certificate of a uthcmicati on f th e Pay ing Agenl up on any
Bond sha ll be co nclusive evide nce, and the onl y compctcm evidence , thal such Bond has been properly
authcn ti c.:1tcd and deli vered hereunder.
Section 8. Temporary Bond s. Umi l Bond s in lkfiniti \ c form arc rc :1d y for ddivcry, thc Ci1 y
m:1y execute, and upon the reque st of the Ci1 y, 1he Pay in g Agel\l shall .. uthcnlicate and dcli ver, subjec t to
th e pro visions, limitati ons and co nditi on s set fonh her ein , one or more Bond s in temporary form. wh ether
prim ed, type written. lith ographed or ot herwise produccd. s ubst:mtia ll y in the form s of th e defin iti ve
Bond s, with appropri ate omissio ns, va ri :11i ons and in se rli ons, and in au thori1.ed deno 111inati uns Until
exc hanged for IJo nd s in dcfini1i vc form , s uch Dond s in tcm pora ry form shall bc c111 i1 lcd to thc bi..•ncfits
:ind sec urit y of1 his Ordi nan ce . Upon 1h c pre sc nt a1i on an d sum.·nde r of :my Bond in te mporary limn, the:
City shall. wi 1hou1 unreasonab le dela y, prepare. execute and de lin:r to th e Pa ymg Agl'll! .md the 1•a yi ng
Agen t shall authenticate and deli ve r, in exc hange tht.:rcfor , a Bond ur Bond s 1..1 1' lhi: -.aml' :,.erh.:s in
dcfini1i vc fo nn . Such cx d rnnge shall be m:ide by th e Pa ying Agt.:nt witt.t1 ul maki ng an y char ge thcrcfu r
to th e rq;is1crcd ow ner of such Bond in 1c111pora ry fo rm .
Section 9. Registrat ion of Bo nds in RL•gislralion Hook s M:1inf ai111 ·ll hy l1:1yl11~ Al,!t'l11 The
Pa ying Agent shall mainl ain re gist rat ion books in whi ch the uwnc r:-hip , t;an:,,fc r rind ex ch:mi;c of Bond s
shall be recorded. The per so n in whose nam e any Bond shnll be rl.'g1!,lercd on :r.uc h rcg 1:-.11 ,111<m hoo k shall
be deemed to be ti lt.! ab so lut e ow ner th ere of for all pu rposes. wheth er llr nul p.1 ymc11t 1111 ,1ny Bond sh.a ll
be ove rdue , and nei th er the Ci ty nor the Pa yin g Agent shall bc .iffccted hy any II 0ll l'C or ut hcr information
to th e co nt rary .
Section 10. Trnnsfer und Exc hani;c of Uund s . Thl' Bonds 111,1 y bc 1r.111,ferr cd 11r l'\clrnn gc d 111 •
1hc prin cipal office of th e Pay in g t\gc nl in the city id cn1ificd in thc dcfi1111mn of l1ay 111 g Age nt 111 11,i:
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Sec ti on hereof titl ed "Del inition s" or m such other office of th e Payi ng Age nt des ign ated by th e Paying
Agen t fo r such purpose fo r a lik e agg rega te prin cip al amou nt of Bonds of oth er auth ori ze d denomin ati ons
of the sa me maturit y and int eres t rate, upon plymcnt by th e tra nsferee of a reasonable tra nsfe r fee
es tab lished by th e Payi ng Age nt , toge th er wit h any tax or gove rnm enta l charge required to be pai d wit h
re s pect to suc h tran sfe r or exc hange and uny cost of printin g bo nds in co nne cti on therewit h. Upo n
surrend er for transfer of any Bond , du ly end orse d for tra ns fer or acco mp ani ed by an assignme nt du ly
ex ecut ed by the Ow ner or hi s or her att orn ey du ly auth ori ze d in wri tin g, th e Cit y shall exec ute und the
Payi ng Agc n1 shall au th enti cate and deli ve r in th e name of th e tra nsferee a new Bond . No twit hstandi ng
any 01her pro vision hereo f, th e Pa yin g Agent shall not be re quired to trans fer any Bond (i) whi ch is
sc heduled to be redeemed in whole or in part betwee n th e Bu siness Dny immediatel y preced in g th e
mailing of th e notice of red empt ion and th e rede mpti on dute or (ii} betw ee n the R~cord Date for any
Interest Pay ment Date and suc-h Int eres t Pay ment Date .
Seclion I I. Replacemenl of Lo sl, Destroye d or Slo lcn Bonds . If any Bond shall Jec ome 10S1 ,
ap parentl y des1ro yc d1 sto le n or wrongfu ll y ta ken, it may be rep laced in the fo rm and te n.J r of the los t,
desiroyed, Slo lcn or 1aken Bond and 1he Ci1 y shall execu le and 1h e Pa yi ng Agenl shall auth r:,ticate and
deli ve r a rep lac em en t Bond upon the Own er furnishing, to th e sa ti sfac ti on of the Pa yin g Agent: (a) proof
of ownership (w hi ch shall be shown by th e reg istrat ion books of th e Pa yin g Age nt), (b) proof of loss,
desi ructi on or th eft, (c) an indemnity to the Ci ty and the Paying Agent with re spect to the Bond los t,
dcSlroyed or taken , and (d) pay ment of th e cos t of preparing nnd execu ting th e new Bon d.
Section 12 . Creation of Accounls ; Initi al Cr edit s 10 Acco unt s.
(a) Crea tion of Accounts. There is hereby establi shed th e Bond Account and the
Project Accoun t. The fo re go in g acco unts sha ll be maint ained by th e Ci ty in accordance with the
provisio ns of thi s Ordin ance.
(b) Initial Credits to Accounts. Upo n payme nl to the Cily of th e purchase price of
th e Bond s in accorda nce with the Bond l 'ur chase Agreem ent , the Bond s shall be deli ve red to, or
as di rected by, th e Und erw riter and the proceeds received bv the City fro m the sa le of the Bond s
shall be applied as a supp lementa l appropriat ion by the City , .s fo ll ows:
(i) to the Bond Account , th e acc ru ed int erest on th e Bond s from th e dated
da te the reof to th e date of is suance, if any; and
(i i) to the Proj ec t Accoun1, the remainin g proce cd s of the Bond s.
Section 13. Investments . Pro ceeds of th e Bon ds deli ve red to the City pu rsuant to th e Section
hereo f tit led "Creation of Accou nt s; In itia l Credit s to Accounts," mone ys on depo sit in th e Bond Accou nt
and an y moneys held by th e Paying Age nt wit h respec t to th e Bond s c;hall be in ves ted in Per mitt ed
Inv es tm ents, prov id ed that the in ves tment of su ch mone ys shall be subjec t to any appli cab le restrict ions
se t fo rth in the Ta x Lett er of In stru cti ons and in the "Tax Comp li ance Ce rtificat e" or similar certificate
de ll\ cred by the Ci ty in connec ti on with the issuan ce of th e Donds th at de sc rib es th e Ci ty's expectatio ns
rcg,u-din g the use and in ves tment of pro ceeds of th e Bonds and Olhe r moneys and th e use of the Project.
Secti on 14 . Va rious Findi ngs, Dctermin a lion s, Decl a r ation s a nd Covenants. Th e Counc il ,
having been full y in fonncd of and h:1v ing consi de red all th e per1in ent fact s and circ um sta nces, hereb y
fin ds, detennines, decl ares and cove nants with th e Own ers of th e Bond s that:
f_a) vo ter approva l of th e Ball ot Que sti on was obrni ncd in acco rda nce with all
ap pli cable pro vision s of law ;
02-1 86585 .1 9
(b) ii is in th e be st 1111 ere :-1 of th e "it y .md 11s rc sidc 111 s tha1 th e Bond'i be au th orized,
sold. iss ued and de livered nt th e 11111c , in the mnnn cr and fo r the pu rp os es provided in thi s •
Ord in ane..:;
(c) th 1.; issuance of th e IJ oml s "Ill 1101 cau ,;;e th e ity to exceed i1-. deb t limit und er
app licable S101e law ;
(d) 1he DTC 131 :inkc l J.e11cr of Rcprc scn1:11ions 10 be cn lcred im o with DTC wi ll
govern the book entry reg istratio n sys1c111 for the Bond s: and
(e) the iss uance of the Bond s and all proce dure s und ert ake n in cident thereto urc in
full co mpli ance and confo rmi ty wi 1h :Il l app lic :,b le requ ir em en ts, pro vis ions and limi tati ons
pre sc ribed by th e Chart er, th e Co nstituti on and l11ws of the Srntc, in cludi ng th e Act and the Ball ot
Ques ti on, and all co ndi tio ns and limit ati ons of the Chan er, the Act, th e Ba ll ot Ques ti on and ot her
app licab le law re lating to the iss u:mce of th e Bond s have been sa ti sfie d.
Section IS. Federal Income Tax Coven11nls . For purposes of en surin g th at th e int eres t on the
Bonds is and remai ns exc lu ded fr om gross income for federa l income tax purp oses, th e City hereby
covenants th at:
(a ) Prohibited Actions. The C it y wi ll 1101 usc or pcrmil 1hc us e of any proceeds of
th e Bonds or any oth er fund s of th e Cit y fr om wha teve r sou rce derived, dirc r !ly or indirec tl y, to
acqu ire any sec uritie s or obli ga ti ons and shall not take or permit to be ta ken :my other ac tio n or
acti ons, whic h wo uld ca use any Bond to be an ··:,rbitragc bond" will•, n the meaning of
Sec ti on 14 8 of the Code, or wou ld oth erwise ca use the i111 crcs t on any 8 <1 1d to be in cludib lc in
gros s income for feder al inc ome 1a,1 purpo ses. •
(b) Affirmative Action.,. The Cily wi ll n1 nil 1irnc s do an d perfo rm all ac ts pcrmill cd
by law th at are nec essary in ord er to assu re that interes t paid by th e City on th e Bond s shall not be
includib le in gross in come fo r federa l in com e ta x purpose s under th e Code or any 01her va lid
pro vis ion of law . In panicul ar, but wit hout limitat io n, the Ci ty re presen ts, warran ts and
covena nt s to co mply with the fo ll ow in g m ies un less it rece ive s an opi nio n of Bond Co un se l
stali ng that suc h com pli ance is not nece ssary: {i) gro ss proceeds of th e Bonds and th e Project will
not be use d in a mann er th at will cause th e Bond s to be co nsider ed "pri vate ac ti vit y bo nd s" within
th e mea ni ng of the Code; (ii ) the Bond s arc not and wi ll no t become direc tl y or indir ec tl y
"fede rall y guaranteed"; and (iii ) the City wi ll timely fil e an lnternu l Reve nue Serv ice Form 8038
G with respec t to th e Bonds . whi ch shall co nt ai n th e in fo rmation requir\!d 10 be fil ed pur suant to
Scc li on 149(c) of1hc Code .
(c) Tax Letter of l11 slr11 c1fo11 .,·. Th e City wi ll co mpl y wi th th e T;ix Letter of
ln s1ructio ns de li vered to it on the date of iss ua nce of th e Bonds . includin g but not limi1 c<l by the
provis ions of th e Ta x Lcucr of In stru ctio ns re gardi ng the appli ca tion .md inve stment of Dond
proc eeds , th e use of the Pr oject, th e calculat ion s, the dcpo :,,it s, th e di sb ur seme nts , the in ves tme nts
and the rete nti on of reco rds de scrib ed in lhe Tax Lene r of Jn slructio ns ; prov id ed th at, in the eve nt
the Tax Lett er of In stru ct ions arc supl!rscded or amended by ne w Tax Lellc r of Instru ctio ns
draficd by, and acc omp ani ed by :111 opini on of, Dond Cou nse l stat ing th at the use of th e new Tax
Lene r of In stru cti ons wi ll not ca use th e int erest on th e Bond s to be com e in clud iblc in gros s
in co me fo r fedcr:1 1 in come ta x purpo ses , the Cit r will thereaft er com pl y wi th 1hc new T:ix Lette r
of ln stru ctio i,s,
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(d) De.'fignutitm of Bonds ll .,· Q1Jalified TtL\' 1:.··xempr Obligllfim,.,·. The Cit y hl!rcby
dc sign:11 cs the Bonds as qua li fied tax t:Xc m pt ob li ga tio ns withi n th e meani ng of Scc1ion 265(b)(3)
of the Codi:. The City covrnants that th e aggregate fac e amoun t of all tax c.-xcmp t govcrnmc nt :1 1
o bliga ti ons defined in Sectio n 14 1 or the Code or qua lified 501(c )(J) bond s defin ed in Sectio n
14 5 of the Co de iss ued by ·~c Ci ty, toge th er wi th gov ernm ental entitie s which derive th eir iss uin g
authorit y fr o m the City or arc subjec t to substantial co ntro l by th e Cit y, arc not expec ted to be
more th an S I 0,000.000 du ri ng ca lenda r year 2004 . Th e City rec ognizes th at suc h tax exe mpt
ob liga ti ons inc ludl! notr.:s. lea ses , loa ns and wa rra nt s, as we ll as bon ds . The City fur ther
recog ni zes that any bank , thr ift in stituti on or other financi al ins tit utio n tha t owns the Bond s will
rely on the City 's de signation of the Bonds as qua lified tax exemp t ob li ga tio ns fo r th e purp ose of
avoidi ng the los s o f I 00 % o f any ot herwise avai lab le inte res t deductio n attrib ut ab le to such
ins1itutio n's tax exem pt holdi ngs .
Section 16. Dcfcasan cc . Any Bo nd shall not be deeme d to be Out standi ng hereu nd er if it ~ha ll
have bee n paid and ca nce ll ed o r if Defca sance Securities shall have bee n de posit ed in tru st fo r th e
pa yme nt the reof (w hether upon o r prio r to th e mat urity of suc h Bond , bu t if suc h Bond is to be pa id prior
to ma turi ty, th e Cit y shall have give n the Pay in g Age nt irrevocab le di rec ti-.1 ns to give notice o f
redempt ion as required by thi s Ordin ance, or such notice shall have be en give n in acco rd ance with this
Ordin an e). In computin g th e amount of the depos it desc ri bed above , th e City may incl ude th e matu ring
prin cip al o f and int ere st to be earned on the Defeasance Secu riti es . If less !han all the Bond s arl! to be
defeascd pursuant to thi s Secti on, th e City , in its so le di scretion, may selec t ,,!,ich of th e Bo nds shall be
def eased.
:"Jo twith sta ndin g anythi ng herein to th e co nt rary , in th e ev ent th at th e Bond In sura nce Poli cy is
issued an d prin cipa l and/o r in terest d ue on the Bond s is paid by th e Bond Insurer pursuant to the Bon d
Insura nce Polic y I the Bonds shall remai n Outstand ing for all purposes , not be def eased or oth erwise
satisfied and rJ Ot be consi dered paid by th e City, and all cove nant s, ag reements and oth er obli ga ti ons o f
th e Ci ty to the Owners shall continu e to exist and shall run to th e bene fit o f th e Bond insure r, and th e
Bond In surer shall be subrogat ed to th e right s o f such Ow ners.
Section 17. E,'enl s of Dcfauh. Eac h of the fo ll owing eve nts co nstit utes an Even t of Defau lt :
(a) N onpay me11t of Pri11dpal or /mere st. Fa ilu re to make any pa ymen t o f princi pal
of or inte rest un th e Bo nds when due .
(b) Breach or Ntmperformu,r ce of Dmies. Breac h by th e Cit y of any ma tcri:1I
covena nl sc i fort h herein or fai lure by the Cit y 10 pe rfo rm any material du ty impos ed on it
hereu nder and cont inuatio n o f su ch breac h or fai lure for a pe riod o f 60 days after rece ipt by the
Cit y Atto rn ey o f wrincn no1i cc thereo f from the Paying Agent or fr om the Ow ners of at leas t 10%
of th e agg regat e amou nt of the Bond Ob li gat ion. pro vid ed th at suc h 60•day peri od shall be
exte nde d so long as th e City ha s ~ommenccd an d co nt inu es a good fait h effort to rc.:mcd y such
breac h or fai lure.
(c) Bankruptcy or R e,·ei11ership. An orde r of dccn:e by a court of com petent
jurisd ict ion decla ring th e City ba nkru pt un der federa l bankruptcy law or appo int in g a rccei , cr of
:111 or any mate ria l purtio n of th e City's ass e1s or reve nu es is entere d wit h the co nsen t or
acqu iesce nce of the City or is entered witholll th e co nse nt or acq uiesce nce of the Cit y bu t is not
vaca ted , di scha rged or stayed withi n 30 days aft er it is en1crcd .
fl :.\SMSSI II
Srction 18 . llrmcdirs for E\'l•nu of Drfa ult .
(a) Rc•m,•1/i e.'L Upon the occ urr ence and co ntinuan ce of an y Eve nt of Dcfoult , th e
Own ers of not h:ss than 25 % of the aggrc ga1c am ount of the.· Bond Ob li gat ion . includ in g. wi1h out
limit ation, a tr ustee or 1ru stee s 1hercfo r may proc eed again st the Cit y to prote ct and to enforce the
ri gl11s of the any Own..:r s under th is Ordin :mcc by mnnd amu s, injunction or by ot her suit , ac ti on or
special pro ceed in gs in equity or at law , in any co urt of co mp etent ju ri sd ict ion : (i) for th e pay ment
of interest on nny in st allm ent of prin cipal of an y Bond that w;1s not paid whe n due at the intere st
rate borne by such Bond : (ii) for th e s pecific performance of any cove nant co ntained here in ;
(iii ) to enjoi n an y act th at may be un lawful or in violation of an y right of any Owne r of any Bond;
(iv) fo r any other prope r le ga l or equitabl e remedy ; or (v) any co mbinati on of such remedi es or as
ot herw ise ma y be authori zed by app li cab le law ; provided , however , tha t acce leration of any
amoun t not yet due on 1he Bonds accordi ng 10 their tenns shall not be an ava il ab le remedy. All
suc h proceedi ngs a1 law or in equi 1y shall be in stituted, had and maintained fo r the equa l benefi t
of all Owners of Bond s 1hen Out stundin g.
(b) Failure To Pursue Remedies Not a Release,· Rights C11nwlati\1e . The failure of
any Owner of ;my Outstanding Bond 10 proceed in accordance with subsec 1i o11 (a) of thi s Section
shall not relieve the Cit y of any li abi lity fo r failure to perform or carry out it s duti es unde r thi s
Ordinance. Each right or privilege of any such Owner (or tru stee th erefo r) is in addition and is
cu mul at ive to any ot her right or pri vi leg e, and the exercise of any ri ght or pri vi le ge by or on
behalf of any Owner shall not be deemed a wa ive r of any ot her right or privilege of such Owner .
(c) Bo,rd In surer Third-Party Be11ejidary; Right To Colltrol Remedies. In the
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eve nt that the Bond In suran ce Policy is issue d and to the extent th at thi s Ordinance confers upon •
or give s or grunt s to the Bond In surer any right , remedy or claim under or by rea so n of thi s
Ordinance, th e Bond In surer is hereb y ex pli citly recogni ze d as being a third part y benefi ciary
hereunder and may enfo rce any suc h ri ght , remedy or claim co nferred, given or granted
hereund er. Upon the occurrence and co ntinuan ce of un Event of Default , so long as it is not in
default of its ob li ga 1ion s under the Bond In surance Policy , the Bond In surer shall be entitled to
contro l and direc t the enforcemen t of all ri ght s and remedies gran ted to the Owners under thi s
Ordinanc e and pur suant to State law .
Section 19. Amt'ndment of Ordinanct'.
(a) Ame11dme111s Permitted Without N otke ltJ or C11 11se111 of Owners. The City
may. with ou t the co nsent of or notice to the Owners of the Bonds , adopt on e or more ordina nces
amending or s upplementin g thi s Ordi nan ce (w hi ch ordinances shall th erea ft er hccomc a part
hcri:of) fo r any one or more or all of th e fo ll owing purp osi;:s:
(i) to cure any ambigui ty or to cure , correct or supple ment any defe ct or
inc onsistent provi sion of thi s Ordinance.·;
(ii ) to s ubject to this Ordinan ce or pl ed ge to th e payment of th e Bonds
:i ddi1i unal re venues . prop..:rtics or collatera l;
(iii) to ins titu te or tem1in ate a bo ok entr y regi strati on system for th e Ilond s or
10 faci li tate the de sig nati on of a subs titute sccu riti e:-. dep os it o1y wit h resp ect to such a
sy stem;
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(iv) to maint:iin 1hc th cn l'.'-is1in g or to sccurc a hi gher ra ti ng 0 f 1h1.: Bond s by
an y nat ionall y reco gnize d sc r uriti cs ratin g agcnl'y; or
(v) 1.0 ma k · an y ot hcr change that do cs 11 0 1 materiall y ;1dvc rsc ly affect th e
Ow nas of th e Bonds .
(b) Ame11tlme11t s Rt•quiri11~ No ti<:e to ,md Ctmseut of Owners . Except for
am endment s pcr miu ed by subsec ti on (a) o f thi s Sec ti on, thi s Ordin ance mn y o nl y be amended
(i) by u ordinan ce of th e Cit y ame ndin g or s upplement ing thi s Ord in ance (whi ch, afte r th e
co nse nt s req uir ed th erefor , shall beco me a par t her eo f); and (i i) wit h th e wrilt c n co nse nt o f th e
Ow ners o f at leas t 66·2/3% o f the Bond Ob li gation; prov id ed th at any ame ndm ent that makes any
of the fo ll owi ng changes with respect to any Bond shall not be effec ti ve without th e wrin cn
co nse nt of th e Owne r of such Bond : (A) a chang e in th e m~Hurity of such Bond ; (B) a reducti on of
the int erest rate on s uch Bond ; (C) a change in the term s of redemp ti on of such Bond ; (D) a del ay
in th e pa yment o f prin cip al of o r int eres t on suc h Bond ; (E) a redu cti on of th e Bond Obligati on
the co nse nt of the Ow ners of whi ch is req uired for an ame ndm ent to this Ordin ance; or (F) th e
es ta blis hm ent of a priorit y or preference fo r th e pa yment of any amo unt due with re spec t to any
01 her Bo nd ove r such Bond .
(c) Proced11re for NiJtifyillg a,rd Obtai11i,rg Co,rse,r/ of Owners. Whenever the
consen t ofan Owne r or Ow ners of Bonds is requ ired under s ub sec ti on (b) of th is Sec ti on, th e Cit y
shall mai l a notic e 10 such Owner or Own ers at their ad dresses c.:s set fo nh in th e regi strati on
books maint ain ed by the Pay in g Age nt and to th e Und erwri te r, whi ch 1wti cc shall briefly desc ribe
th e pro posed aml!ndment and sta te that a co py of th e amend ment is on fil e in th e offi ce of th e
Cit y fo r in sp ection . Any co nsent o f any Ow ner of any Bond o bt ain ed with res pec t to an
amendment shall be in writing and shall be final and not s ubj ec t to wi 1Ldrnwa l, resc ission or
modifi cati on fo r a peri od of 60 da ys aft er it is deli ve red to th e City unl ess anoth er tim e period is
state d for such purpos e in th e notice mailed pursuant to thi s su bsection.
(d) C,m sellt of the Bmul /u surer i11 Additim, ltJ Cm1.\·e11t tJ/Ow,r e rs. In th e eve nt
that the Bond In surance Poh .:y is iss ued, t. 13o nd In surer 's co nsent shall be required in addi ti on
to th e conse nt of Owners, when required, fo r th e fo ll c.,wing purposes : (i) e.xccut ion and deli very of
an) supplem ent al Ordinance or an y amendm ent , supp lement or change 10 or mo difi cati on of thi s
Ordin ance; (ii) remov al of th e Pay in g Age nt and se lec ti on and appo intm i:nt of a suc cess or; and
(i ii ) initi ati on or app rova l of any :iction not des1:ri bcd in c h1u se (i) or (i i) ab ov e \\'hi ch ri:qu ir l!s th e
co nse nt of Ow ni:rs.
Section 20 . A1111ointmcnt and D111ic s of Pu yi ng Ag ent. Th e Pa yi ng Agen t id cntificd in the
Scc 1i on hereo f titled ·•DL'finitions" is hereb y appoin ted as payin g age nt, regis trar and aut hemicnti ng agen t
fo r th e Bond s unl ess and until the Cit y rc mows it as such and appo int s a s ucce ss or Pa yin g Age nt , in
whi ch event s uc h s ucces sor shall maomatica ll y succe ed to th e du ti es of the Pa yin g Agent here un der and
it s predeces sor shall imm ed iatel y turn ove r all it s re c:ortl s regardi ng the Bond s to suc h suc cesso r. The
Pa yin g Age nt shall ag ree to perform all du1 ics ;111d to t:1kc all actions assigned to it hereunde r in
ac cordan ce with th e term s hereo f.
Sec tion 21. A1>proval of Related Documents . fhc Co un cil hereby ratifie s □nd app roves th e
d istri buti on and use in co nn ecti on with th e o ffering o f th e Bond s o f the Prel imin ary O ffi cial State ment
rela tin g lo the Bond s; :iuth ori zl!s and di rec ts th e preparation o r, and aut horizes and direcls the cx i:cu1ion
by the Ma yor of an Offic ial St:1temc nt fo r use in co nn ec ti on with th e snl e or the Bon d~ in su bsta nti all y the
form of th e Preliminary O ffi cia l St:!le ment, wi th s uc h chan ges therein, if any , not in c:0 11sistc111 haew ith ,
as arc :1ppro ved by thi.: Ma yo r (whosl! sign ature thereon shall co nstitute conclu sive e viden ce o f s uch
02 -11165 11 5 I 13
appro v,11 ); and fo r a peri od o f sixty da ys fo ll ow in g 1h c ado ption o f th is Ordin:m cc, the Sa le Deleg ate is
auth orize d to ex ecut e th e the Co mmi tmenl , if any, the Sale crt ifi ca te and the: Bond Purchase Agreement. •
The approp ri ate offi cer s and offici als of the City arc hereby a uthorized and dire cted to c:xcc utc an
undertaking to faci li ta te compli :mcc wi th Se curi tie s and Ex chan ge Comm iss ion Rule I 5c2 • 12 ( 17 C.f .R.
§ 240 . I 5c2• 12), the DTC Blank et Lett er o f Rcpn:scnta tions, tht: Paying Ag ent Agreemen t, a "Tax
Co mp li ance Ce rtifi c.i tc·· or similnr cc rtificntc de scribing the Cit y's exp ecta ti ons re garding !h e use nn d
in vcstmcm of pro ceed s o f th c Bond s and 01 her moneys and the use of the Proje ct, an Int ernal Re ven ue
Serv ice Fann 803 8·G with re s pect to th e Bond s and all oth er document s and ce rtifi cates ne ce ss ary or
de sirab le to effo ctuate th e iss uance o r ad mini strati on of th e Bonds , th e in vl.'stment o f proceed s o f the
ll on ds and th e 1ra n:-.ac1i ons contl!mplatcd hereb y.
Section 22.Bond In s ura nc e Determination . Th e Co un c il hereb y delegates to the Sa le
Delega te the aut hority to de termi ne whet her or not the Bond s will be secu red by the Bond In s uran ce
Policy and th e term s of any ag reement with the Bond In s urer if a Co mmitm ent is :icceptcd regardi ng the
Bonds. Such determination shall be made by th e Sa le De lega te on a basis of wheth er or not an int erest
cost sav ing s ca n be realized by th e Ci1y through th e iss uan ce o r the Bond In s ur ance Po li cy when
com pare d to the premiu m to be paid to th e Bond Insure r fo r th e is suance o f th e Bond In surance Poli cy .
Section 23. EHnt s Occurring on Days That Arc No t Business Da ys . Excep t as ot herwi se
speci fi ca ll y provided herein with re spec t to a particul ar payment, event or ac ti on, if any payment to be
made hereund er or any event or ;1cti on to occur hereund er whi ch, but fo r thi s Section, is to be made or is
to occ ur on a day th at is not a Business Day , suc h pay men t, even t or ac tion shall instead be made or occu r
on th e ne xt succeed ing d:iy that is a Bu sin ess Da y with the same effect as if it wa s made or occurred on
th e date on whic h it wa s or igin all y sched ul ed to be made or occ ur.
Section 24. Limitation of Aclions . In acco rd ance with Section 11-57 -2 12, Co lorado Revised •
Statutes, no legal or equitab le ac ti on ca n be brought with respect to any leg islati ve ac ts or proceedings in
conne cti on with th e authorization of th e Bonds more than 30 days afte r th e au th ori za tion o f s uch
sec uriti es.
Section 25.0rdinuncc is Contract with Owners of Bonds and lrrc11c ulublc . After th e
Bo nd s have been issued , thi s Ordinance shall be and remain a co ntra ct bet ween th e Ci ty and the Owne rs
of the Bonds and shall be and rema in irrcpealablc un ti l all amoun ts due with respcct to th e Bo nds sha ll be
fu ll y paid , sat is fied and discha rge d and all other ob li gat ion s of the Cit y with res pect to the Bond s shall
have been sat isfi ed in the manner pro vided herein .
Section 26. ll cad in gs . The head ing s to th e var ious se ctions and subsectio ns to thi s Ordi nance
ha ve been in serted ~olcl y for the co nven ience o r the read er . .i re not a part of this Ordin ance ;md shall not
be used in an y 111:mnl!r to interpret this Ordinan ce.
Seclion 27 .Scvcrah ilit y. It is hereby expre ss ly dcclarcd th at all pro visions hereo f ,md th eir
;ap pli catio n arc int cmkd to be and an: se verab le. In orde r to implem ent Mi ch intent , if an y prov ision
:1erco f or the ap pli c:1ti on th erco f is de termin ed by a cou rt or ad min istrative body to bc invalid or
m;cnfo rccab lc, in whole or in p;1rt , such determ in at ion shall not affe ct. impai r or invalidate any oth l!r
prr,visiun here o f or th e up pl k ation o f th e provision in qu es tion to any othe r si tu ati on; an d if ;m y provi sion
hc1 cof or the app li c:1tion thereof is determ in ed by a co urt or ;1dminist r:11i vc body to be v.i lid or
cnfo:-ccabl i: onl y if its a ppli cation is lim ited, it s app li ca ti on sha ll be limi ted as req uired 10 mo st fully
imp leme nt it s purpos e.
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Section 28.Rcpcu l or Inc onsistent Ordina nces, Re so lut ions, By laws, Rules and Orders .
All ord man ccs, reso lut io ns, bylaws , rule s and order s, or part s 1hcrco f, that arc inco nsistent with or in
con fli ct with th is Ordinance, arc hereby repea led to th e cx tcnl of such in co nsistency or co nfli ct.
Section 29. Ratification of Prior Acllon5 . All ac ti ons hcrc1ofo rc taken (not inconsis ten t wi th
the prov isi ons or thi s O rdinance, the Act or the Ba ll ot Question) by the Co uncil or by the officers and
emp loyees of the City directed to wa rd the issuance of the Bond s fo r the purp oses he rein se t fo rth arc
hereb y ratified, approved and co nfirmed .
Section 30. Effective Date . This Ordinance shall become e ffec tive thirty days after publi cation
following fin al passage.
Introduced, rea d in full, and passed on fir st ,1'atl;ng on the 18th day or Octobe r, 2004 .
Publi shed as a Bi ll for an Ordinance on the 22nd day or Octo ber, 2004.
Read by title and pass ed on final readi ng on !he 1st day of N .. , .. en•t ,, :, 2004.
Published by titl e as Ordinance No . ~. Sc,ies or 2004, on t , i.;' clay of November, 2004 .
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I, Lo ucri shi a A. Elli s, City Clerk o r the City o r Engl ewood, Colorado, he reby ccniry that th e above
and forego ing is a tr ue copy or th e Ordinance pa ssed on final rea g and publi shed by title as O rdin ance
No,'1!-, Seri es or2004 .
02-186S8S .I 15
No . R
Intcrc~I Rate
___ %
REGISTERED OWNER :
AP Pf.NDIX ,
FOR~J OF 8O:-.'D
UN ITED STATES OF .-\MERICA
STA TE OF COLORADO
CITY OF ENGLEWOOD, COLORADO
GENERAL OBLIGATION BOND
SE RIE S 2004
Ma turity Date Original Dated Date
Cede & Co .
Tax Identifi cat ion Number: 13 2555119
PR INC IPAL SUM :•• DOLLARS ..
$ __ _
CUS IP
The City of Englewood, Co lorado, q duly organized and valid ly existing home -rule municipality
of the State of Colorado, for value received , hereby promises to pay to the order of th e registered owne r
named above . or regi stered assigns, the princ i >al sum stated above on the maturity date stated above , with
interest on suc h principal sum from the J ri~:ina l dated date sta ted above at the interest rate pe r annum
stated above (calculated ba sed on a 360-d ay yea r of twel ve 30-day month s), paya ble on
_______ and _______ of each year, commencing ____ . Capitalized tenns
used but not defined in thi s bond shall ha ve the mea ning ass igned to them in th e Ordinance of th e City
authorizing th e iss uan ce of the Bonds .
The principal of and interest on this bond is pa yable to th e registered owrcr hereof upon
presentati on and surrender of this bond at the principal operations office of America n Natio nal Bank, as
paying age nt. in Denver , Co lorad o, or at su ch other office of the Paying Agent de signat ed by th e Paying
Age:11 fur such purpo se. Intere st on thi s bond is paya ble by check or draft of th e Paying Agent mailed on
the In tere st Payment Date to th e regi stered ow ner hereof as of th e (fifteenth day of the month immediate ly
preced in g] [fi rs t da y of] the month (w heth er or 1101 such day is a Busine ss Da y) in whi ch the Int ere st
Pa ymem Date occurs ; prov id ed that , inte rest payable to the registered owner of this bond ma y be p:iid by
any other me ans .1grccd to by suc h reg istered owne r and th e Pay ta g Age nt that doc s not require the Cit y
to mak e mone ys avail ab le to the Pa ying Age nt earl ier th an other .'1ise required under the Ordinance or
incre as e th e cost s bo rne by the Ci ty unde r th e Ordina nce ; provided fu ,1 hcr, that , so long as Cede & Co . is
the regi stered owne r of this bond . th e principal of and intcrc s1 on tJ,i s b"-·nd shall be paid by wire tra ns fer
to Cede & Co. An y pa ymen t of principal of or intere st on this bond th.H is due on .i day that is not a
Bu sine ss Da y shall b;! made on the next suc cee ding da y 1:,at is a Bu s ine ss Day wit!. the sa me effect as if
nrndc on the day on whi ch it wa s originall y scheduled to be n~aJe . All payme nt s of principa l of and
intere st on thi s bond shall be made in lawfu l money of the United ~talcs of Ameri ca .
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Thi s bond is p:1rt 0 1 an issue of ge neral ob lig:11i on bonds of tbr-C ty de signated th e Ci ty or
Englewood, Co lorado , Genera l Ob li gat ion Bonds , Series 2004, issuco in the prin cipal amoun t o l
SJ,075,000 (the "Bonds''). The 13o nd s hu ve been iss ued pursuar,t to, undc, the auth orit y o f, and in fu ll
conformit y with , the Charter, th e Co nstilution and th e la ws of th~ '.l t:Hc , inc lu di ng, in partic ul ar, Part 2 of
Article 57 of Ti tl e 11 , as a mended (coll cc th1cly, the "Act"); pursua nt to authorizarion by a majority of th e
regi stered elec to rs of the Ci ty vo ting in an elect ion du ly ca ll ed and he ld on Nove mber 4, 1997; and
pursuant to a ordinance adopted by the City Cou ncil of the City. THE ORDINANCE CONSTITUTES
THE CON TRACT BETWEEN TME REGISTERED OWNER OF TI-II S BOND AND THE CITY . THIS
BOND IS ON LY EV)l)ENCE OF SUCM CONTRA CT AND, AS SUCH, IS SUBJECT IN ALL
RESPECTS TO THE TE RMS OF TH E ORD INANCE , WHICH SUPERSEDES ANY IN CONS ISTENT
STATEMENT fN THIS BO ND.
The 13onds have bee n issued by th e Ci ty for the purpo se of providing fund s fo r the Project
described i11 the Ordin ance . The Bonds arc gM cral ob li gations of th e City and the full fait h and credi t of
the Ci ty me pledged fo r th e punctua l payment of th e principal of and interest on the 13onds. For th e
i;urp osc of paying th e principal of and int eres t on the Bond s when due , respec ti ve ly, the Counci l in th e
Ordin ance hG'i covenanted an nu all y, to the ex tent lega ll y avai lab le moneys arc not otherw ise applied , to
determine and cc nify to the BL>ard o f Cou nt y Co mmi ssione rs of Arapahoe Count y, a rate of levy for
general ad va lorem ta>-.es , withou t li mit ation as to ra te or amou nt , on all of th e taxable property in the
Cit y, s uffi cient to pay th e principa l o f and inte rest on the Bonds whe n due , re s pectively, whether at
maturity o r upo n earlier redemption .
[The redemption provisions from Sec ti on 4 of th e Ordin ance and the Sa le Ce rtifi cate shall be se t
fort h herei n.]
Not ic e of any redemption o f Bonds shall be give n by th e Paying Age nt in th e name of the Ci ty by
sendin g a co py of such notice by first class , pos tage prepaid mail , not le ss th an 30 days prior to th e
redempt ion date , to the Owner of each Bond being redee med . Such not ic e shall spec ify the n11mber or
numbers o f th e Bond s so to be redeemed (if redempti on sha ll be in part) and the redemption date. If any
Bond shall have been duly ca ll ed for redempt ion and if, on or before the redemptio n date , there shall have
bern deposited w ith th e Pa ying Agent in acco rd ance wi th this Ordin ance funds sufficient to pa y the
red emption price of suc h Bond oo the rede mpti on date, then such Bond shall become d ue and payable at
such re emption da te, and from and afier suc h date interest will cease to acc rue thereo n. Failure to
deliver an y rede mp tion notice or any defect in any rede mption notice shall not affec t th e va lidit y of th e
proceeding for th e redemptio n of Bo nds with re spect to which such fai lure or defect did no t occur . Any
Bond redeemed pri or to ib ,natu rit y by prior rede mpti on or otherwise shall not be reissue d and shall be
c;.mcellcd.
The Paying As~~~ .;J,a ll maintai n reg is1ra ti on book s in whic h 1he ow ner ship , trnr .. fer and
exchange of Bond s shall be re.:-orded . The person in whose name thi s bond shall be regi stered on suc h
re gistrati on books sha ll be deemed to be the ab solute ow ner hereof for all pu rp oses , whet her or not
pa yment on this bond shall be ove rdue , and nei th er the City nor the Paying Agent shall be affected by any
noti ce or oth er informati on to the contrary. This bo nd may be tr .::nsferred or exchanged at th :: principal
o ffi ce of the Paying Age nt in Denver . Co lorado , or at such other office of the Pay in g Agen t desig nated by
the Pa ying Agent for suc h purpose for a like aggregate principa l amount of Bonds of oth.r au th ori ze d
dcn om·nations ($5 ,000 or any integ ral mu lt ipl e th ereof) of the sa me maturit y and interest rate, upon
payme nt b:1 the transfe ree of a reaso nab le transfer fee estab li shed by th e Paying Agent, toge ther with any
tax or govcmmenta l cha rge required to be paid wit h respect to suc h tran sfe r or exc hange and any cost of
printing bonds in connecti on therewith . Notw ithst.inding any other provis ion o f the Ord iliancc. the
Pay in g Agent shall not be required to tran sfer any Bond (a) whi ch is schedu led to be rede emed in whole
or in part between the Bu s ine ss Day im media tely pr ec eding th e nwili ng of th e notice f\f redemp ti on and
02-1116585 I A-2
the redemption dat e ; or (b) between the Record Da le fo r any ln1eres 1 Paymem Date an d s uch lnieresi • Paymc111 Date.
Th e Ordinance may be ame nded or s uppl emen ted from lime lo time wi1 h or wi1 hou1 the consent of th e regi s1e1ed owners of lhe Bonds as provided in th e Ordinance.
h is he reby certified lha1 all condit io ns, ac ts and thin gs required by the Charier, •he Consii 1u1ion
and laws of the S1a1e, including the Ac1, a nd the ordinances of lh e City, lo exisi, lo happen nnd lo be
performed , precedent 10 and in the iss uance of I hi s bo nd , exisi, ha ve happened and ha ve uce n performed,
and 1ha 1 neither thi s bond nor the other bonds of the issue of which this bond is a pan exceed any
limi1a1ions prescribed by the Charier, the Cons ti1 u1ion or la ws of the S1a1e , inc lu ding lhe Ae1 , or th e ordin ances o f1he City.
This bond shall no1 be eniilled lo any benefil under the Ordinance, or become va lid or o bligatory
for any pu,pose, until th e Paying Agen1 shall have signed the ceriifica 1e of authen1ica 1ion hereon .
0:!•186.S85.I • A-3
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IN WI TNESS WHE REOF , th e Cit y Cou ncil or th e C1ty has ca used th is bond to be exec ut ed with
th e signature of it s Ma yor and :att es ted by tlw signa ture of it s Cit y Clerk, and has caused th e sea l of th e
Cit y to be impres sed or impr inted he reon. all u:; of th e da te set fo rth below.
TI-I E CITY OF ENGLEWOO D
[C IT Y SEA L]
By __________ ------
Mayor
By
City Cl erk
CERTI.FIC ATE OF AUTHE NTIC ATION
Thi s bond is one of th e bon ds of the issue de sc ribed 111 th e within menti oned Ordinance.
Dated: __________ _
02-186585 .1
AM ERJCAN NA TIO NAL BA NK, as Pay ing Age nt
BY---,---,--,-,c,-----------Auth orized Si gnatory
STATE MENT OF INSURANCE
[State ment o[bond in sura nce requ ired by the Co mmitm ent , i[ an y.]
A -4
APPROV ll\'G LEGAL OP INION
Set fon h bc lo\\' is a true copy of th e :1pprovi ng lq 1,al opini on of Kuta k Roc k LL P, dt!li vc rcd on th e
dale on whic h th e Bond s we re o ri ginall y iss ued :
[The fmm of lega l o pini on of Bond Cou nsel shall be set forth here.]
I, th e und ersigned City Clerk of the Cit y o f Eng lewood , Co lorado, do hereby certify th at the
fo regoing approving opinion of Kutak Roc k LLP, Denver, Co lorado, is a tru e and co rnpl c1c copy o f a
manu all y ex ec uted and dated co py th ereo f on file in th e ollicia l re co rds o f th e City.
By (facs imi le sign atur e)
City Clerk
ASS IGNMENT
FOR VALUE RECEIVED the unders igned hereb y s ells, assigns and transfers unt o
(Pl ease print or typewri te nam e and addre ss of Tran sferee)
(Tax Identifi ca ti on or Social Security No.)
th e within bond and a ll rights thereunder, an d hereby irrevocably constitutes an d a pp oi nt s
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________ att orn ey to tran sfer the wit hin bond on th e books kept fo r registration thereof, •
with fu ll power o f substitution in th e premi ses.
Dated : __________ _
Signa1urc Guaranl ccd:
Signa turc(s ) must be g uaran teed by u
national bank or trust company or by a
brokerage firm having a membe rship in one of
tht.: major stoc k exc hange s.
NOT ICE : The sig nature to thi s ass ign ment mu st
co rrespond with the name as it appe ars up on thr face
of the wi thin bond in eve ry pa rti cu lar, with ou t
alt erat ion or en large mt.:n t or a11 y change whatever .
TRAN FER FEE MAY BE REQU IRED
02-18()5115 1 A-5
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COUNCIL COMMUNICATIC,N
Date: Agenda Item : Subj ec t:
October 18, 2004 11 a i Bill for an o rdin ance authorizi ng th e
issuan ce of bonds for va ri ous Water Fun d
Capital Projects
Init ia ted By: Staff Source:
D eparl m enl of Finance and Administrati ve Services Frank Gryglewicz, Director --
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
Th e City Counci l has discuss ed this issue along w ilh th e issue of p roposed rate inc reases al a
number of m eetings, including th e budget workshop held on Septembe r 25 , 2004.
Th e City receive d ci tizen approva l 10 issue $15,100,000 of general obli ga ti on bonds at th e elec ti on
held November 4, 1997. Th e City neve r us ed this authorization because it was less ex pensive l o
borrow fund s thr ough the Colorado Re so urces and Power D evelopment Authority.
RECOMMENDED ACTION
Staff recommends Council app rove th,, attached bill for an ordin ance authoriz ing the issuance of
$3,075,000 in ge neral obli ga ti on b onds .
BACKGROUND , ANALYSIS, AND ALTERNATIVES IDENTIFIED
Th e City of Englewood Cha rt er req uires a majority affi rm ative vote of th e regis tere d elec tors to
issue general obligati on debt (Article X, r ' Ill, Section 104). The reg ist ered voters approved
issua nce of $15.1 million in ge neral ob bon ds fo r th e purchase o r const ru c ti on of W ater
Syst em improve m ents an d equipment.
TI,e bonds will be issu ed in 2004 to tak e advantage of "ba nk qua lified" provisi ons in th e federa l l ax
code.
While no t requ ired for the issu ance o f th ese bonds, p ro pose d wa ter rate in c rea ses are expected to
cover th e debt service of th ese bonds.
FINANCIAL IMP ACT
Th is acti on should not have a direc t impa ct on th e Ci ty's financia l co nditi on, as wa ter reve nu es are
expected to pa y fo r debt serv ice on this issu e. A separa te levy could be assessed to properly
owners if Wat er Fund revenues we re inadequa te to cove r requir er' de bt service.
LIST OF ATTAC HM ENTS
Proposed bill for an ordinance.