HomeMy WebLinkAbout1994 Ordinance No. 007ORDINANCE NO . j_
SERIES OP 1994
BY AUTHORITY
COUNCIL BILL NO. 10
INTRODUCED BY COUNCIL
MEMBER WIGGINS
AN ORDINANCE OF THE CITY OF ENGLEWOOD, COLORADO , AUTHORIZING TH E
ISSUANCE OF THE CITY'S GOLF COURSE REVENUE BONDS IN THE AGGREGATE
PRINCIPAL AMOUNT OP $4,<M5,000 .00; PROVIDING FOR THE USE OF CERTAIN BO ND
PROCEEDS TO PAY THE COSTS OF THE CONSTRUC':'ION, INSTALLATION , AND
ACQUISITION OF CERTAIN GOLF COURSE FACILITIRS AND IMPROVEMENTS ;
PROVIDING FOR THE PAYMENT OF THE BONDS FROM THE NET REVENUE DERIVED
FROM THE OPERATION or CERTAIN GOLF COURSE FACILITIES, AND MAKING
CERTAIN COVENANTS IN CONNECTION THEREWITH; REPEALIN G ORDINANCES
INCONSISTENT HEREWITH; AND PROVIDING FOR THE FO RM , PAYMENT , AND OTHER
DETAILS IN CONNECTION WITH THE BONDS .
WHEREAS , the City of Englewood, Arapahoe County, Colorado (the "City"), ia a
home rul e city and political 1ubdivi1ion of the St.ate of Colorado, duly organized and operating
under its City Charter and the consutution and laws of the St.ate ; and
WHEREAS , punuant to Article XII, Section 120 of the Charter, the City Council of
the City (the "Council ") is to provide, by ordinance, for the planning and aupervision of a
community r ec reation program and for equipping and maintaining City-owned or co ntrolJed
parks, recreational areas, and facilities , both in and outside the corporate City limi ts, which
functions shall be under the direction of the City Manager; and
WHEREAS, the City has heretofore est.ablished , acquired, operated, and
maint.ained that certain Englewood Municipal Golf Course (the "Golf Course") as a community
recreation program ; anci
WHEREAS , pursuant to Article X. Part Ill, Section 105 of the Charter, the City may
issue revenue bonds as provided by statutes of the St.ate for municipalities of every class; and
WHEREAS, the City is authorized by f30-20-301, c1 Kil•, C.R.S ., to issue
•nticipation warrants for the purpose of defraying the cost of construction, erection,
reconstruction, or improvement or existing facilities ; and
WHEREAS , the Council has heretofore determined and doe s hereby determine that
it is necessary to construct, rt:con struct, improve , and extend the Golf Course by adding an
addi tional 9 holes and constructing clubhou se improv ements and renovation s (the "Project"), for
the City and its inhabit.ants; and
WHEREAS , the Council ha s determined and hereby determines that it is in the be st
interests of the City, ai,d the residents and taxpayers thereof, that the Project should be financed by
the issuance of bonds , and that for such purpose there shalJ be issued golf course revenue
anticipation warrants in the tot.al principal amount of$4,045,000.00 (the "Bonds"); and
WHEREAS, the Bonds shall have an irrevocable and first lien on the net revenue
of the Golf Course , but not necessarily an exclusive such lien ; and
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WHEREAS, the Golf Courae i1 a government-owned b111ine11 authorized to i111111
it1 own nvenue l/411 d1 and receiving under lO'll, of annual revenue in granta from all Colorado
1tate and local eovemmenlll combiMd; and
WHEREAS , purouant to Ordinance No . 57, Seriea of 1993, the City haa heretofore
e1tebli1hed the "City of Enelewood Golf Courae Enterpriae", which con1i1ta of the b111ine11
repre1ented by the Golf Courae, and it i1 hereby determined that the Golf Coune i1 an enterpriae
within the meanine of Article X, Section 20 of the Colorado Constitution; and
WHEREAS, none of the memben of the Council have any potential conflicting
interest.a in connection with the authorization, i11uance, or aale or the Bonda, or the uae or the
proceeda thereof; and
WHEREAS, there hu been presented to thia meeting of the Council: (i) the
Preliminary Official Statement; and {ii) the form of the Paying Agent and Regiatrar Agreement
{as defined hereafter); and
WHEREAS, the Council de sires to authorize the issuance of the Bonds and the
exec ·ution of the for egoing documents;
NOW , THEREFORE , BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, THAT :
~ Definition•. As used herein, the following capitalized terms ahall
have the respective meanings set forth below, ~nless the context indicates otherwise.
BOND ACCOUNT: the "Golf Co<lrse Revenue Bond Account", eatabli•hed by the
provisions hereof for the purpose of paying the s,rincipal of, premium if any, and interest on the
Bonds and any Parity Li en Bonds, including the Interest Sub-Account and the Principal Sub-
Account .
BOND REGISTRAR: Bank One, Denver, N.A., in Denver, Colorado, or its
successor, which shall perform the function of registrar with respect to the Bonds.
BONDS : the City's golf course revenue anticipation warrants, which shall be
designated "Golf Course Revenue Bonds, Series 1994", dated March 15, 1994, issued in the aggre-
gate principal amount of$4,045,000, as authorized by this Ordinance.
CAPITAL IMPROVEMENTS : the acquisition of land, eaaementa, facili';ies, and
equipment {other than ordinary repairs and replacements), and the construction or recor struction
of improvem ents , betterments, and extensions , for use by or in connection with the Golf Course .
CERTIFIED PUBLIC ACCOUNTANT: an independent certified public accountant
within the meaning of ti ~ 2-115 , C.R.S ., and any amendment thereto, licensed to practice in the
State of Colorado.
CHARTE R: the home rule ch art-, of the Citi •, in effect as of the effective date of this
Ordinance .
CITY : the City of Englewood , Arapahoe County, Colorado.
CODE: the Internal -.,. Code cl 1986, u amended.
COMBINED },VERAGE ANNUAL PRINCIPAL AND INTEREST
REQUIREMENTS : with regard to any two or more particular iuue1 of bonds or other obliptions,
the aizrecate of all future pA¥JMnt■ of principal of and intere■t on all of ■aid iasuea (excluding
redemption premiums) to become due from the date of computetion to the date of maturity of the
latest maturing obligation of any of ■aid iuues, divided by the number of years between said
date ■; provided that if any particular i11ue ha ■ a ■ingle principal payment date and is iuued as
interim notes or securities in anticipation of permanent financing, ouch principal amount ■hall
be ucluded from this computation; provided further that such computation ■hall auume the
redemption and payment of bond■ or other obliption1 subject to mandatory redemption, but ■hall
be made without rei:ard to any rieht of optional redemption which hu not been exerci ■ed .
COMBINED MAXIMUM ANNUAL PRINCIPAL AND INTEREST
REQUIREMENTS: with recard to any two or more particular iuue1 of bonds or other obliption1,
the maximum annual payment■ of principal of and intere ■t on all of aaid i11ues (excluding
redemption premiums) to become due durine any Fi ■cal Year while such i11ues are out■tanding ;
provided that if any particular iasue has a 1ingle principal payment d"t.e and i1 i11ued as interilll
notes or securities in araticipation of permanent financing, auch principal amount ahall be
excluded from this compui.altion ; provided further that auch computation ■hall auume the
redemption and payment of bond, or other obligations 1ubject to mandatory redemption, but ■hall
be made without regard ID any rieht of optional redemption which hu not been exercised.
CONSTRUCTION ACCOUNT: the "City of Englewood Golf Course Revenue
Bonds, Seri .. 1994, Construction Account", utabliahed by the provisions hereof for the purpose of
paying the Project Costs.
CONSULTING ENGINEER: any qualified, registered, or licensed profeuional
engineer practicing under the laws of the State of Col orado, who is independent in fact and not an
officer or employee of the City.
COUNCIL: the City Council of the City.
C.RS.: the Colorado Revised Statutes, as amended and supplemented as of the date
hereof.
EVENT OF DEFAULT: any one or more of the eve nts set forth in the Section hereof
entitled "Events of Default".
FEDERAL SECURITIES: direct obligations of (including obligations iasued or
held in book entry form on the books oO, or obligations the principal of and interest on which are
guaranteed by, the United States of America.
FISCAL YEAR : the twelve (12) r i onths commencing January 1 of any year and
ending December 31 of ,,aid year.
GOLF COURSE: al : of the City's golf course facilities and properties currently
known as the "Englewood Municipal Golf Course" and located at 2101 Weat Oxford, in Sheridan,
Colorado, whether now owned or hereafter acquired , whether situated within or without the City
boundaries, and including a11 present or future improvements , extensions, enlargements,
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betterment.a, replacemento, or addition ■ thereof or thereto, includinc 1peciflcally the Project
Unle ■a herea!l<lr 1peciflcally provided by ordinance, other recreational facllitieo owned by the
City but not located on or conticuou1 to the property now comprising the Enclewood Municipal Golf
Coune shall not be included a ■ part of the term "Golf Course".
GOLF COURSE REVENUE FUND: the fund of the City de ■ipated u the "Golf
Couna Revenue Fund", e1tabli1hed by the provi1ion1 hereof.
GROSS REVENUF:: all income and revenue• directly or Indirectly derived by the
City from the operation and use of the Golf Course, or any part thereof, including without
limitation, any rate1, feu, toll1, and charge• for the 1ervice1 furnished by, or the use of, the Golf
Courae, including without Jimitation a11 green fees, rental fee ■, and food and beverage 1ervice
charges, and all income attributable to any past or future disposition, of property or rilht.a or
related contract,, settlements, or judgments held or obtained in connect.ion with the Golf Course or
its operations, and including investment income accruing from moneys held to the credit of the
Golf Coune Revenue Fund; provided however, that there shall be excluded from Grou Revenue
any money• borrowed ~"d used for providing Capital Improvements; any money and securities,
and inveatment income therefrom, in any refunding fund, escrow account, or similar account
pledged to the payment of any bonds or other obligations ; and any moneys received as grants or
appropriations from the United States, the State of Colorado, or ot),er sources, the use of which is
lim ited or restricted by the grantor or donor to the pro1~sion of Capital Improvements or for other
purposes resulting in the general unavailability there,if, except to the extent any such moneys shall
be received u payments for the use of the Golf Coun,,, ,·~·ice, rendered thereby, the availability of
any such service, or the disposal of any commodities th erefrom .
INTEREST SUB-ACCOUNT : a sub-account of the Bond Account established by the
provi sions hereof for the purpose of paying the interest on the Bonds and any Parity Lien Bond■.
NET REVENUE : the G,oss Revenue after deducting the Operation and
Maintenance Expenses.
OFFICIAL STATEMENT : the final version of the P,elimina,y Official
Statement
OPERATION AND MAINTENANCE EXPENSES: all reasonable and necessary
current expen ses of the City, paid or accrued, for operating, maintaining, and repairing the Golf
Course, including without limitation legal and overhead expenses of the City directly related to the
administration of the Golf Course, insurance premiums, audits, charges of depository banks and
paying agents, professional services, aalnries and administrative expenses, labor, and the cost of
materials and supplies for current operation ; p,ovided hov.eve,, that there shall be excluded from
Operation and Maintenance Expenses any al1owt1.nce for depreciation , payments in lieu of taxes
or franchise fees, legal liabilities not based on contract, expenses incurred in connection with
Capital Improvements, paym.1:.nts due in connection with any bonds or other obligations issued to
provide Capital Jmp,ovements, and charges for the accumulation of reseTVes .
ORDINANCE : this ordinance which authorizes the issuance of the Bonds,
including any amendments pToperly made he,eto .
OWNER : the registered owne, of any Bond, as shown by the reirstration books
maintained by the Bond Registrar.
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PARITY LIEN BONDS: one or more nriot of addil.ional bond,, note,, interim
oecurilie1, or other obligation, iuued by the City pur■uent lo the Section hen,o\' entitled "Additional
Bonda", having a lien on the Net Rev-.nue which i1 on a parit;y with Ibo lien of the Bond,.
PAYING AGENT : Bank One , Denver, N.A., in Denver, Colorado, or it.a 1uccenor,
which shall perform the function of paying agent with re ■pect lo I.he Bonda.
PAYING AGENT AND REGISTRAR AGRF 'IMENT : lhe ae,eement dated u of
Maren 15, 1994, between the City and the Payinc Agent/Bond Reci1trar, concerninc the
re(istration, tran ■fe r , exchange, and payment of the Bond,.
PERMITTED INVESTMENTS : ■hall mtan any inve1tment or depoait the City is
permitted lo m~ke under applicable law .
PRELIMINARY OFFICIAL STATEMENT: the Preliminary Official Statement
dated January 12, 1994, conceminc the Bond, and the City.
PRIN CIPAL SUB-ACCOUNT : a sub -account of the Bond Account established by th e
provisions hereof for the purpose of paying the principal of and premium, if any, on the Bond s and
any Parity Lien Bond s.
PROJECT: the acquisition, construction, recon1truction, improvement, betterment,
or utenaion of the Go :f Coune, including without limitation expanlion of the Golf Coune to
consist generally of an .,dditional 9 holes and clubhouse improvementl and renovation•, and all
necessary or appropriate appurtenances, property rights, and equipmenL
PROJECT ~OSTS : the City's costs properly attributable to the Project or any part
thereof, including with~ut limitation :
(a) the co 1ta of labor and materials, of mach inery, furni1hing1, and
equipment, and of the re&toration of property damaged or destroyed in connection with
con struction work;
(b ) the costs of insurance premiums, indemnity and fidelity bonds, financing
charges, bank fees, taxes, or other municipal or governmental charges lawfully levied or
assessed;
(c ) administratfre and general overhead costs ;
(~' the co1ta of reimbursing fund • ndvanced by lhe City in anticipation of
reimbursement from Bond proceeds, including any in L, ufund or interfund loan ;
es timates ;
(e) the cos ts of s urvey s, apprai s als , plans, desig--n s, specifications, a.'1.d
( f) the co sts, fees, and e x11e :--,sl s of t1:"'lnters 1 engineers, architects, financial
consultants, legal advisors, or other agents or employees;
(g ) the costa of publ ishing, reproducir,g, posting, mailing, or recording
document s ;
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(h)
(i)
the eo1ta of continpndee or re1erve1 ;
the cotta of' luuinr the Bonda ;
(j) the co1ta or amendinr ■ny ordinance, reaolution , or other instrument
relating to the Bondi or the Project;
(k) tho co1ll of repaying any 1hort-term financing, con1truction loans, and
other temporary loan,, and or the incidental Hl)On .. s incurred in connection with such loans ;
(I ) the co1t1 of acquirin& any property, rights, easements, licenses, privileges,
arreemenll, and franchi101 ;
(m ) the coat.I of demolition, removal, and relocation ;
(n) administrative, operating, and other expenaea of the City prior to and
during the acquisition period and for a period Ol . not exceeding one year th ereafter; and
(o) all other lawful costs as determined by the Council .
PRO RATA PORTION: when used with respect to a required credit to the Principal
Sub-Account or the Interest Sub-Account, the dollar amount derived by dividing the amount of
principal or interest to come due on the next principal or interest payment date by the number of
monthly credits required to be made prior to such payment date .
RECORD DATE : the fifte enth 05th) day of the calendar month ne,rt preceding each
interest p11yment date .
REQUIRED RESERVE : an amount equal to the lesser of: (i) the Combined
Max imum Annual Principal and Interest Requirements or the Bonds and all Parit:• Lien Bonds;
or (ii) the maximum amount which may be credited to the Reserve Account and allow ouch account
to qua lify as a "reasonably requir ed reserve or replacement fund " under Section 148(d) of the
Code .
RESERVE ACCOUNT: a special account of the City designated as the "Golf Cour ..
Revenue Bond Reserve Account", created by this Ordinance for the purpose of paying, if
necessary, the principal of, premi um if any, and interest on the Bonda and any Parity Lien Bonds.
SPECIAL RECORD DATE : the record date for determining Bond ownership for
purposes of paying defaulted interest, as such date may be determined pursuant to this Ordinance,
SUBORDINATE LIEN BONDS : one or more 1erie1 of additional bonds, notes ,
interim securities, or other ~,•1;~gations iHued by the City pursuant to the Section hereof entitled
"Additional Bonds", having . .,n on the Net Revenue which is subordinate or junior to the lien of
the Bonds.
&l:l.im.2. Authorization. In accordance with the Constitution of the State of
Col orado; th e Charter; Title 30, Article 20 , Part 3, C.RS.; and all other laws of the State of Colorado
thereunto enabling, there shall be isaued the City'• golf cour .. revenue anticipation warrants, to be
designated "Golf Course Revenue Bonds, Series 1994", in the aggregate principal amount of
$4 ,045,000.00, for the purpose of: (i) paying the Project Costs; and (ii) paying other costs in
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connection with the Bonda. The accompliljunent of the Project i1 hereby authori&ed, approved, and
ordered. It ii hereby detennined that the Project is hem, undertaken under the provi1ion1 of Title
30, Article 20, f ,ut 3, C.R.S.
&J:t.iwLa. Special Obllptlona. All of the Bonda, tocether with the inter01t
thereon and any premium due in connection therewith, o'hall be pll)'able only out of: (i) the Bond
Account, into which the City covenants to depooit the Net Revenue in amounta, oufficient to pay
when due the principal of, pr,,mium if any, and interest on the Bonda; or (ii) if neceuary, the
Reoerve Account. The Bonda shall constitute an irrevocable and lint lien upon the Net Revenue,
but not nece1aari y an exclusive 1ucb lien, and the Net Revenue ii hereby pled&'ed to the payment of
the Bonda. The Owners may not look to any ceneral or other fund of the City for the payment of the
principal of, premium if any, and interest on the Bonda, Hcs:,t the funds and accounts pledged
thereto by this Ordinance, and the Bond, ahaU not conllbtute a debt or an indebtedness of the City
within the meaning of any constitutional or atetutory provision or limitation; nor shall they be
considered or held to be general obliptiona of the City.
&.d.ilm.i Bond Detail,. The Bonds shaU be issued only as fully regi1tered
Bonds without coupons in the denomination of $5,000 each or any int< gral multiple thereof. Unless
the City aha!! otherwise direct, the registered Bonda shall be numbered separately from 1 upward,
with tho number of each Bond preceded by "R-".
The Bonds shall be dated as of March 15, 1994, and ,hall bear interest at the ratea .. t
forth below, calculated on the basis of a 360-day year of twelve 30-day months, payable
aemiannuaUy on each June 1 and December 1, commencing on June 1, 1994, and shall mature on
December 1 each year, as follows:
.Ma.l.w:.il.x ~Dd111l Amsmol lol.l:a:nBati:
1995 $ 5,000 3.()()()%
1996 125,000 3.500
1997 135,000 3.750
1998 140,000 4.000
1999 145,000 4.200
2000 15.5,000 4.350
2001 160,000 4.500
207l 170,000 4.600
2003 180,000 4.700
:rol 185,000 4.850
2005 195,000 4.900
2006 210,000 5.000
'1IXY1 220,000 5.150
2008 230,000 5.200
2009 245,0CO 5.300
:a:)13 1,545,000 5.500
Th e maximum net effective interest rate authorized for this issue of Bonds is
6.000% per annum, and the actual net effective interest rate of the Bonds does not exceeU such
maximum rate.
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~ Pa:yment of Bondi; l'ayinw Apnt and Bond Resl1tnr. The
principal ,,rand premium, if any, on the Bond, are payable in lawful money of the Unlted State, of
America to the Owner of each Bond upon maturity or prior redemption and pr11antation at the
principal office of the Payine AjrenL The intere1t on any Bond i, payable to the perton in who ..
name 1uch Bond i, regilllered, at hi, addre11 u it appean on the regi1t.ratlon boob maintained by
or on behalf of the City by the Bond Regi1trar, at the clo1e of bualneu on the Record Date,
irrellJ)ective of any transfer or u,hanp of ,uch Bond aubaequent to auch Record Date and prior to
■uch intereat payment date; provided that any 1uch intereat not IO timely paid or duly provided for
■hall cease to be payable to the penon who 11 the Owner thereof at the clo1e ofbusine11 on the Record
Date and ahall be payable to the perton who i1 the Owner thereofat tho cloae ofbualneu on a Special
Record Date for the payment of any auch defaulted lntere1L Such Special Record Date ahall be med
by the Bond Registrar whenever moneya become 1vallable for payment of the defaulted intere•t,
and notice of the Special Record Date ahall be given to the Owners oft.he Pond, not leu than ten (10)
day ■ prior to the Special Record Date by 6nt-cla11 mall to .. ch 111ch O1'ner u 1hown on the reel•·
t.ration books kept by the Bond Registrar on a date 1elected by the Bond fle¢atrar. Such notice ahall
state the date of the Special Record Date and the date fhed for 0 10 r•yment of 1uch defaulted
interest.
Interest payments ■hall be paid by check or draft of the Faying Agent mailed on or
before the interest payment date to the Owners . The Paying Agent may make payments of interest
on any Bond by such alternative means as may be mutually qreed to between the Owner of ■uch
Bond and the Paying Agent; provided that the City shall not be required to malte funds available to
the Paying Agent prior to the dates on which such interest would otherwi1e be payable hereunder,
nos to incur any expenses in connection with such alternative means of paymenL
The principal of, premium if any, and interest on the Bonds shall be paid in
accordance with the terms of the Paying Agent and Regi1t.rar Aereem•nL
Section 8. Prjor Bedemptjpg. Bonda maturing on and after December 1, 2005,
are subject to redemption prior to r.aturity, at the option of the City, a ■ a whole or in integral
multiples of $5 ,000, in direct order of maturity, on December 1, 2004, and on any interest payment
date thereafter, upon payment of par and accrued interest, without redemption premium.
The Bonds maturing on December 1, 2013, also are subject to mandatory ■inking
fund redemption, in part, by Jot, on December 1, 2010, and on each December 1 thereafter prior to the
maturity date of such Bonds, upon payment of par and accrued interest, without redemption
premium, in the annua1 amounts set forth hE'low :
Redemotion
2010
2011
2012
2013•
• final mRturity, not a sir-.,.;ng fund redemption
...Anwln1
$2';0,000
275,000
295,000
715,000
On or before forty-five (45) days prior to each sinking fund installment date set
forth above, the Bond Registrar shall select for redemption, by lot in such manner as the Bond
Registrar srny detennine, from the outstanding Bond ■ maturing on December 1, 2013, a principal
amount ,,f such Bonds equal to the applicable sinking fund installme~t. The amount of the
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applicable ■inking fund inatallment for any particular data may be reduced by the principal
amount of any Bond ■ maturin11 on December 1, 2013, which prior to ■aid data have been redHmed
(otherwi■e than throuah the operation of the ■inltine fund) ar-1 canceled and ,,ot theretofora applied
a ■ a credit r,pinat a ■inking fund in ■tallment . Such 1'81uction1, if any, ■hall be applied in ■uch
year or year■ a ■ may be determined by the City.
If le11 than all of the Bonda within a maturity are to be redeemer' on any prior
redemption data, •J,e Bonda to be redeemed ■hall be aelectad by lot prior to the ci. •e fi1ed for
r, •emption, in ■uch manner aa the Bond Jteciatrar ■hall determine. The Bonda ■hall be redHmed
01,.y in int.!gral m»ltiplea of $5,000. In the e'l'ent a Bond i ■ of a denomination lareer than $5,000, a
portion of such Bond may bt redeemed, but ,nly in the principal amount of $5,000 or any inteeral
multiple thereof. Su,h Bond ahall be treated for the purpoae of redemption a• I.hat number of Bonda
which results from di•liding the principal amount of such Bond by $5,000. In the event a portion of
any Bond is redeemed, the Bond Regiatrar shall, without charge to the Owner of 1uch Bond,
authenticale and del.i ver a replacement Bond o. Bonda for the unredeemed portion there,if.
In the event any oft.he Bonda or portions thereof(which shall be in tnounta eqral to
$5,000 or eny integral multiple thereof) are called for redemption as aforeuid, notice th-,eof
identifying the Bonds or portions thereof to be redeemed will be given by the Bond Registrar by
mailing a copy of the redemption notice by first class mail (post.age prepaid), not le11 than thirty
(30) days prior to the date find (or ndemption, to the Owner of each Bond to be redeemed in whole
or in part at the addre11 ahown on the regiatration book• maintained by or on behalf of the City by
the Bond Reg.;strar. Failure to give auch notice by mailing to any Owner, or any defe,ct therein,
■hall not affcn • }, c validity of any proceeding for the redemption of other Bonda u to which no 1uch
failure :r ~-Jst; ..-;sts. All Bonda so called for redemption will cease to bear intare1t after the
apeci f.i . .j ; ~t nri.,.i.fo\1 date, i,rovided funds for their redemption are on deposit at the place of
paym ent )< thr : time.
~ Form and Execution of Bonda. The Bonds &hall ho ■igned with the
facsimile or mar,ual 1ignature of the Mayor of the City, sealed with a fac ■imile or manual
impression of the seal of tbe City, and atle1ted by the faca imile or manual signature of the City
Clerk . Should any officer whose facsimile or manual ■ignature appean on the Bonda cease to be
1uch officer before delivery of the Bonds to a purchaser, such facsimile or manual ■ignature ■hall
nevertheless be valid and sufficient for all purposes.
The Bonds may contain a reproduction of the opinion of nationally recognized
municipal bond counsel u to the Bonds and a certification of such opinion by the City Clerk.
The Bond• shall be in substantially the following form:
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N o. R-__ _
INTEREST RATE
[Fonn or Bond]
[Fnmt or Bond]
UNITED STAn:8 OF AMERICA
8TA11'! OF COLORADO
COUNTY OF ARAPAHOE
CITY OF ENGLEWOOD
GOLF COURSE REVENUE BOND, SERIES llllM
MATURITY DATE
ORIGINAL
Jf»JJEDATE
MARCH 15, 1994
REGISTERED OWNER :
•-----
PRINCIPAL AMOUNT :DOLLARS
Tpe City of Englewood, in the County or Arapahoe and State of Colorado, a political
subdivision duly organized and operating under the constitution and laws of the State of Colorado,
on behalf of itself and the City of Englewood Golf Coune Enterprise, for value n,ceived, hereby
promises to pay, solely out of the special accounts hereinalur designated but not otherwise, to the
registered owner nam ed above, or registered assigns , on the maturity date 1pecified above or on the
date of prior redemption, the principal amount specified above . In like manner the City promises
to pay interest on auch principal amount (computed on the basis or a 360-day ~ear of twelve 30-day
months) from the interest payment date next preceding the date of registration and authentication
of this Bond, unless this Bondi• registen,d and authenticated prior to June I, 1994, in which event
this Bond shall bear interest from March 15 , 1994, at the interest rate per annum specified above,
payable semiannually on June I and December I each year, commencing on June 1, 1994, until
the principal amount is paid at maturity or upon prior redemption . The principal of this Bond and
premium, if any, are payable in lawful money of the United States of America to the registered
owner hereof upon ma t urity or prior redemption and presentation al the principal office of Bank
One , Den ver, N.A , in Denver , Colorado, or its successor, as Paying Agent.
Payment of each installment of interest shall be made to the registered owner
hereof whose name shall appear on the registration books of the City maintained by or on behalf of
the City by Bank One, Denver, N.A ., in Denver, Colorado, or its successor, as Bond Registrar, at
the close of business on the flft.eenth (15th) day of the calenJar month non preceding each interest
payment date (the "Record Date"), and shall be paid by check or draft of the Paying Agent mailed
on or before the interest payment date to such registered owner al his address as it appean on such
r,gistration books. The Paying Agent may make payments of interest on any Bond by such
alternative means as may be mutually agreed '.o between the registered owner of such Bond and the
Paying Agent, as provided in the ordinance •ulhorizing the issuance of thi1 Bond (the "Bond
Ordinance"). Any such interest not so timely paid or duly provided for shall ceai:e to be payable to
the person who is the registered owner hereof at the clo se of business on the Record Date and shall
be payable to the person who is the registered owner hereof at the close of bu1iness on a Special
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Record Dat.e (t.h e "Special Record Dat.e ") t11.1bli1hed for t.he payment of any defaulted interut.
Notice of the Special Record Dat.e and the date flxtd for t.ht ,pa,yment of default.eel intere1t 1hlll be
riven by fint-cl111 mail to the refi1tered owner hereof u 1hown on the reci•tration boolu on a
date oe ltcted by t.he Bo nd Re(ii otr tr.
If the date for malufli any payment or performine any action ,hall be a leeal
holiday or a day on which the principal office nf th e Paying Agent or Bond Reci•trar is authorized
or required by law to remain clooed , auch payment may be made or act performed on the next
1ucceedin11 day which i1 not a. legal holiday or a day on wh ich the principal office of the Paying
Agent or Bond Refiatrar ia authorized or requi red by law to rem ain clo1ed.
REFERENCE IS HEREBY MADE TO FURTHER PROVISIONS OF 'I.IDS BOND
SET FORTH ON TBE REVERSE HEREOF, WHICH FURTHER P OVISJONS SE W, FOR
ALL PURPOSES HAVE TBE SAME EFFECT AS IF FULLY SET FORTS IN THIS ..AL'li:.
Thia Bond shall not be valid or become obligatory for any purpooe or be entitl ed ·
any 1ecurity or benefit under the authorizine Bond Ordinance unt'l the certifi rete of
authentication hereon ahall have been aigned by the Bond Regi strar.
IN TESTIMONY WHEREOF, the City Coun cil of the City of Englew:<t tow, cnu.,,d
this Bond to be signed by th e fae1imile aignature of the Mayor oftht City, aealed .ith a fnr.•'miie of
the seal of the City, and attes ted by the facsimil e si gnature of the City Clerk, all u of the 15th day of
March, 1994 .
(FACSIMILE SEAL)
ATTESTED :
By : <Fec:simiJe Sirneturel
City Clerk
CITY OF ENGLEWOOD, COWRADO
By : CFacsimiJe Siroature)
Mayor
[Form of Bond Registr ar's Certificate of Authentication for Bonds)
CERTIFICATE OF AUTHENTICATION
This Bond is on e of the Bonds of l.ie issue deacribed in the within mentioned Bond
Ordinance.
Date of Registration BANK ONE, DE NVE R, N.A. Authentication :
a s Bond Regi strar
By:
Authorized Signatory
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[Back of Bond]
APWTIQNAL PRQYI8IQN8
Thia Bond ia one of a 11riea aggregating Four Million Forty-Five Thou1and
Dollars ($4,045,000) p e, value, all of like date, tanor, and effect except aa to number, principal
amount, interest rate, and date of maturity, iuued by the City Council of the City of Englewood, in
the County of A.rt•,ahoe and State of Colorado, acting on behalf of the City and the City of Englewood
Golf Course Ent.rrriae, for the purpose of paying the coats of providing certain golf course facilities
end improvements, by virtue of and in full conformity with the Constitution of the State of
Coloredo; t.he City Charter; Title 30, Article 20, Part 3, C.RS.; and all other laws of the State of
Coloredo ,.hereunto enabling, and pursuant to the duly adopted Bond Ordinance. It ia hereby
recited, cu, fi ed , and warranted that all of the require men ta of law have been fully complied with
by the proper officers in iaauine this Bond.
The principel of, premium if any, and interest on t h.is £,~nd are payable only out of:
(i) e special account designated aa the "Golf Course Revenue Bond ALr.ount", Into which the City
covenants and agrees to ~eposit, from the revenues deriv•d from t he operetion of certein City coif
cour se facilities After !ed uction of operations and maintenance costs (the •Net Revenue"),
amounts sufficient to pa) the principal of, premium if any , and interest on the Bonda when the
some become due and peyeble ; and (ii) if necessary, a apecial account deaienated aa the "Golf
Course Revenue Bond Reserve Account", all aa more perticularly aet forth in the Bond Ordinance.
The Bonds of this issue constitute an irrevocable and first lien upon the Net Revenue, but not
n c essa •· ·, an ex cl usive such lien. Subject to expressed conditions, obligation• in addition to the
Ile .d, orthis issue may be issued and made payable from the Net Revenue havine a lien thereon
,-,:1.)1 '11:!i:t ~.e a.id junior to the lien of the Bonds of this isrue or, subject to additions) -:-i:pressed
cond.1t.1o rt, having a lien on the Net Revenue on a parity with the lien of the Bonda of this issue, in
accordance .-.;th the provisions of the Bond Ordinance .
It is hereby r eci ted, certified, and warranted that for the payment of this Bond, the
City has created and will mair.tain the special accounts referred to above , and will deposit therein
out of the Net Revenue th e amounts specified in the Bond Ordinance, and out of such accorL11ts , as
an irrevocable charge thereon , will pay the principal of, premium if any, and interest on this Bond
in the manner provided by the Bond Ordinance.
THIS BOND DOES NOT CONSTITUl'E A .OEBT OR INDEBTEDNESS OF THE
CITY WITHIN THE IIIEANING OF ANY CONSTITUTIONAL, CHAR1'ER, OR STATIJTORY
PROVISION OR LIMITATION, AND SHALL NOT BE CONSIDERED OR HELD TO BE A
GENERAL OBLIGATION OF 1HE CITY.
Reference is hereby made to the Bond Ordinance for an additional description of
the nature and extent of the security for the Bonds, the funds and revenues pledged to the payment
thereof, the rights and remedies of the registered owners of the Bonds , the manner in which the
Bond Ordinance may be amended, and the oth er terms and conditi ons upon which the Bonds are
issued, copies of which are on file for publ ic inspection at the office of the City Clerk.
Bonds of this issue maturing on and after December 1, 2005, are 1ubjecl to
redemption prior to maturity, at the option of the City, as a whole or in integral multi ples offS,000,
in direct order of maturity, and if less than an entire maturity is to be redeemed, then by lot w•thin
such maturity, on December 1, 2004, and on any interest payment date H1ereaft.er, upon paymi::nt of
par and accrued interest.
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The Bo,..d , maturinc on D-mber 1, 2013, allO are 1ubject to mandatory 1inkinr
fund redemption, in part, i,y lot, on December 1, 2010, and on each December 1 thereafter prior to the
maturity date of such Bonda, upon payment or par and accrued intereat, without redemption
premium, pursuant to ■inking fund inatallmenu provided in the Bond Ordinance.
The Bonds will be redeemed only in inte(ral multiplea of $5,000. In the event a
Bond is of a denomination !drger than $5,000, a portion of such Bond may be redeemed, but only in
the principal amount or $5,000 or any intecr multiple thereof. Such Bond will be treated for the
purposes of redemption ea that number or Bonds which results from dividing the principal amount
of such Bond by $5,000. In the ev a.:t a portion of this Bond is redeemed, the Bond Re(i1trar 1hall,
without charge to the regist.crer! owner of this Bond, authentieate 111, I d•liver a replacement Bond or
Bonda for the unredeemed por.icn .
Notice of i;rior re-:?, .nption shall be given by m11i E .g a CO}Jy of the redemption
notice, not le ss th an thirty (3 0; days prio r to the date fixed for rr •Jemption, to the registered owner of
this Bond at the address shown on th e registration books mainl.s:ned by the Bond Regi1trar, in the
manner set forth in the Bond Oirdi,,:.n ce . All Bonds called for redemption will cease to bear
inu:rest lifter the specified redempt:ur, date, provided fund • fo r their redemption are on deposit at
the place of payment at that time.
The C :ty and Bond Regisb ar shall not be required to issue or tran1fer any Bond s:
(a) during a period beginning at the close of business on the Record Date and ending at the opening
of busine1s on the first bu si ness day following the ensuing intereat payment date, or (b) during the
period beginning r,: '.i ·e apP.ning of t, ·,:.-,0 ss on a date forty-five (45 ) days prior to the date of any
redemption of Bon .i-a,,d ending at the opening of business on the first business day following the
day on which the • J)plicable notic• of redemption is mailed . The Bond Registrar shall not be
required to transfer any Bonds selected or called for redemption , in whole or in part.
The City, the Paying Agent, and the Bond Registrar may deem and treat the
registered owner of this Bond as the absolute owner hereof for all purposes (whether or not this Bond
shall be overdue), and any notice to th e contrary shall not be binding i;pon the City, the Paying
Agent, or the Bond Regi strar.
'!'his Bond may be exchanged at the principal office of the Bond Regi strar for a like
aggregate princi pal amount of Bonds of the same maturity of other authorized denominations.
This Bon d is transferable by the registered own er hereof in person or by his attorn ey d uly
authorized in writing, at the principal office of the Bond Registrar, but only in the manner, subject
to thP l'mitations, and upon payment of the charges provided in the Bond Ordinance and u pon
surreuder and cancellation of this E,ond . This Bon d may be transferred upon the registration
book s upon delivery to the Bond Registrar of this Bond , accompanied by a ·written instrument or
instruments of transfer in form and with guaranty of signature satisfactory to the Bond Regi •trar,
duly exe cuteµ by the owne r of this Bond or his attorney-in-fact or legal represenutive, contlining
wri l.te n instructions as ~,, the details of the tran sfer of the Bond , along with the social security
n um ber or federal employer identificatio n number of such transferee. In the event of the transfer
r,f t his Bond, the Bond Registrar shall enter the transfer of ownership in the registration books and
r;hall authenticate and deliver in the name of the transferee or transferees a new fully registered
llond or Bonds of authorized denom inations of the same maturity and interest rate for the
aggre gate principal amount which the registered own er is entitled to receive at the earlie st
practicable time. The Bond Registrar shall charge th e owner of this Bond for every such transfer
or exchange an amount sufficient to reimburse it for its reasonable fees and for any t.ax or other
governmental charge required to be pai d with respect to such transfer or exchange .
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[Form of Tran1rer (or Bondi)
ASSIGNMENT
FOR VALUE RECEIVED , the undersigned sells, assigns , and transfers unto
SOCIAL SECURITY OR FEDERAL EMPLOYER
IDENTIFICAT ION NUMBER OF ASSIGNEE
------------------------
----··--··----------------------------(Name and Address or Assignee)
--------------------------------------
the within Bond a ·n d does hereby irrevocably constitute and appoint
, attorney , to transfer aaid
Bond on the books bpl for registration th ereof with foll power of substitution in the premise s.
Dated : _____________ _
Signature of Regi stered Owner:
NOTICE: The signature to this assignment must
correspond with the name of the registered owner as
it appears upon the race or the within Bond in every
particular, without alteration or enlargement or any
change whatever .
Signature guaranteed:
(Bank, Trust Company, or Firm)
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~ Autheatlcatlon. No Bond ahall be valid or obliptory for any
purpose or be entitled to any aecurity or benefit under this Ordinance unltu and until a certificate
of authentication on 1Uch Bond 1ub1tantially in the fonn hereinabove aet forth 1hall have been duly
executed by the Bond Registrar, and IUch eucuted certificate of the Bond R.ciatrar upon any ■uch
Bond 1hall be concluaive evidence that 1uch Bond bu been authenticated and dtllvertd under this
Ordinance. The Bond Regi1trar'1 certificate of authentication on any Bond ohall be deemed to
have been l!llecuted by it ifaignecl by an authorized officer or 1ignatory of the &nd Reei•trar, but it
ahall not be neceuary that the ume officer or 1ignatory 1ip the certifiCAte of illlthentication on all
of the Bond ■ i11ued hereunder.
~ Dellve.,y t.f Bondo. Upon the adoption of thi1 Ordinance, the City
ohall execute the Bonds anJ d :,ver 11,<ru to the Bond Regiatrar, and the Bond Regi1trar 1hall
authenticate the Bon<!, ;oi del i '"' them to the purchasers thereof,,,. direrted •; the City , and in
~-~t'lrdance with t ,,.. lbnti 1P•,.-eh aK Agreeme.1t.
St.:dw.., .ll ftP.r!atration, Exchlinfe, and Trander of Bondi; Pv.,na 1.-ted
aa Ownero. The Bond liegiat. u shall uwntain the book ■ of the City for the registration of
ownership of each Bond ar provided in thia Ol'dinance. Bonds mAy be l!llchan,ed at the principal
office of the Bond Regi strar fo r • like ag&Teg8t.e principal amount of Bonda of the aame maturity of
other authorized denominations. Bonda may be transferred upon the regiatration books upon
delivery of the Bonds to the Bond Registrar, accompanied by a writun instrument or inatruments
of tranafer in fonn and with guaranty of aignature satisfactory IO the Bond Regi ■trar, duly
executed by the Owner of the Bonda to be tranaferml or his attorney-in-fact or legal reprtsenlAlive ,
containing written instruction• as to the details of the tran ■fer of ouch Bonds, along-with the ■ocial
security number or federal employer identification number of auch tran ■feree. Nr transfer of any
Bond shall be effective until ent.ered on the re'gistration books .
In all cases of the tranafer ~fa Bond, the Bond Regiatrar 1hall enter the tranafer of
ownership in the registration booka and shall authenticate and deliver in the name of the
transferee or transferees a new fully registered Bond or Bonds of authori•ed denominations of the
■ame maturity and intere ■t rat.e for the ag-grepte principal amount which the registered owner is
entitled to receive at the earlie ■t practicable time. The Bond Registrar shall charge the owner of
this Bond for every such transfer or uchanee an amount 1ufficient to reimburse it for its
reasonable fees and for any lax or other governmental char&• required to be paid with rtspect to
such transfer or exchange.
The City and Bond Registrar ,hall not be required to iuue or transfer any Bonds:
(a) during a period beg-inning at the close of business on the Record Dat.e and ending-at the opening
of business on the firs t !iusine11 day following the ensuing interest payment date, or (b) during the
period beginning at the opening of business on a dat.e forty-five (45) days prior to the dat.e of any
redemption of Bonds and ending at the opening of busineBS on the first busineu day following the
day on which the applicable notice of redemption is mailed. The Bond R,,giatrar shall not be
required to transfer any Bonds selected or called for redemption, in whole or in part.
New Bonds delivered upon any transfer or exchange shall be valid obligations of
the City, evidencing the same obligation aa the Bond ■ surrendered, shall be aecured by this
Ordinance, and shall be entitled to all of the security and benefits hereof to the same extent as the
Bond s surrendered.
The City, the Paying Agent, and the Bond Registrar may deem and treat the
registereC.: ·n'!r of any Bond as the absolute own er thereof for all purposes (whether or not such
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u n u ■hall be onrdue), and any notice lo the contraT)' ,hall not be bindinr upon the City, the
P& nr Arent. or the Bond Jlerillrar.
&d,imul. Cancellation of Bond■• Whenever any Bond ■hall be delivered to
I.he Bon d Regi1trar for cancellation punuant lo thi ■ Ordinance and upon payment of the principal
•n,mu,t and intere■t repreaented thereby, or whenever any Bond 1hall be delivered lo the Bond
&1,,,tn r for tran ■fer or uchange punuant lo the provi1ion1 hereof, ■uch Bond ■hall be cancelod
by tl,e Bond Registrar and counterpart ■ of a certificate of cancellation evidencing such
cancellau,, shall be furnished by the Bond Registrar to the City.
&s:l.ilw...l2. Loot Bonda. Any Bond that is loat, ■tolen , de ■troyed, or mutilated
'T••~ be replaced by the Bond Registrar in accordance with and subject lo the limitations of
•r plicable law. The applicant for any auch replacement Bond shall poat auch ■ecurity, pay 1uch
co st ,, and present such proof of ownership and lou aa may be required by applicsble law, or in the
IW M>nce of s pecific requirements, as may be required by the Bond Registrar.
Siswm..13. Dl ■po1ltlon and lnve■tment of Proceed■; Tu Covenant■• The
Bonda shall be i11ued and so ld !or the purpose of: (i) paying tho Project Coate; and (ii) paying other
co,ta in conn ec tion with the Bonds. Neither the o ·~nal purchaser of the Bonda nor any
aub .. quent Ownen of the Bonda shall be responsible for the application or diapoaal by the City or
any of ita officers of the fund• derived from the aale thereof.
All or any portion of the Bond proceed& may be temporarily invested or reinvested,
pending auch use, in securities or obligations which are lawful investment■ and which are
Permitted lnvealmenta. It ia hereby covenanted and agnoed by the City tt.ot it will not make, or
permit to be made , any use of the original proceeds of the Bonda, or of any moneys treated as
proceeds of the Bond s within the meaning of the Code and applicable regulations, rulings, and
decisions, or take, permit lo be taken, or fail to take any action, which would adversely affect the
uclusio n from gro11 income of the intere&t on the Bonda under Section 103 of the Code and
applicable regulations, rulings, and deci sions.
The City further covenant& lo pay from time lo time all amount■ required lo be
r ebated to the United States punuant to Section 148(1) of the Code and any temporary, proposed, or
final Treasury Regulation• 11 may be applied lo the Bonds from time lo time. The payment of such
rebate amounts as required by thi• paragraph supersede& all other provisions of this Ordinance
concerning the deposit and transfer of interest eamin~o to or from any other fund or account.
Moneys se t aside to pay ouch rebate amounts pursuant to tl,is paragraph are not subject to any lien
created hereunder fo r the benefit of the Ownera. This covenant shall survive the payment in full
or th e defeasance of the Bonds.
·J'he City hereby desi gnates the Bonda a& "qualified tax-exempt obligations" for
purpose& of Section 265(b)(3) of the Code .
~'211..li. Creation of Fund and Accounts. There are hereby created and
established t he following fund and accounts, which may be a&tabliahed as line item accounts and
ah all be maintained by the City in accordance with the provision & of this Ordinance:
( a ) the Construction Account;
(b) the Go'.f Course Revenue Fund; and
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(c) the Bond Account, within which there are utabliahed the lntereat Sub-
Account and the Principal Sub-Accounl; and 1
(d) the Reserve AccounL
~ Initial Credit ■ to Account ■• lmmediat<!ly upon iuuance of the
Bonds and from the proceeds thereof, and aft.er o,.ym•nt of the coat.a of i11uinr t.he Bonda, the City
ahall make the followini: credits:
(a ) to the !-ntere1t Sub-Account, tl1e accrued interest on the &ndi fi-nm t.'.1 • doted
date therecf to the date of issuance, if any; and
(b) to the Construction Account., the remainini: proceeds of the Bonds.
Immediately upon iuuance of the Bonds, the City will credit to the Reserve Account,
from legally available Net Revenue, the amount of the Required Re1erve.
~\..lli. Con1truction AccounL All moneys credited to the Cor.st rui-tion
Account shall be applied solely to the payment of the Project Costs. Upon the determination "'the
Council that all Project Costs have been paid or are determinable, any balance remainine in the
Construction Account Oess any amounts necessary to pay Project Coils not then due and owing)
aha!) be credited t., th Bond Accounl
It is hereby found and determined by Li e Council that the maturity oft.he Bond• does
not exceed the useful life of the Projecl
Moneys credited to the Constrw:ti.n Account may be invested or deposited in
securities or obli&ationa which are ]awful investment& and which are Permitted Investment&.
The in vestment or money• credited to the Const.ruction Account shall, however. be auQject to the
covenants and provisions of the Section herecf entitled "Disposition arid Investment of Proceed.;
Tax Covenants". Except to the extent otherwise required by such Section, interest income from the
investment or reinves!ment of moneys credittd to the Construction Account shall remain in and
become part of the Construction Account.
SCWllll..ll. Golf Coune Revenue Fund. Immediately upon the issuance of the
Bonds, the City shall credit to the Golf Course Revenue Fund all Gross Revenue then held by the
City and not used pursuant to the S. :lion herecf entitled "Initial Credits to Accounts". Thereafur,
the City shall credit to the 0, "Course Revenue Fun.! -11 Gross Revenue immediately upon receipt.
The City shall pay from the ,olf Course Revenue ►. .n~ o!! Operation and Maintenance Expenses
as they become due end payable. After such payme:,t or the allocation of Grau Revenue to such
payment, the City shall apply the Net Reven:ie in the following order of priority:
FIRST: To the credit of the Interest Sub-Account, the amounts required by the
Section hereof entitled "Bond Accoun t";
SECOND, To the credit of the Principal Sub-Account, the ~,:1ounta required by the
Section hereof entitled "Bond Account";
THIRD: To the credit of the Reserve Account, the amounts required by the Section
h er eo f entitled "Reserve Account";
-1 7 -
FOURTH: To the credit or any other fund or account hereafter 111.abliahed for tho
payment or the principal or, premium If any, and intereat on Subordlnat.o Lien
Bond11 incJudin1 any 1ink.in1 fund, reaerve fund, or similar fund or account
e1tablished therefor, the amount ■ required by the ordinance or other enactment
authorizing i11uance of the Subordinate Lien Bonda; and
FJFI'H: To the credit of any other fwid or account u may be de■ignated by tho City,
to be used for any lawful purpose, any moneys remaining in the Golf Course
Revenue Fund after the payment■ and accumulations ■et forth in FIRST through
FOURTH hereof.
~ Bond Account. Money ■ in tho Bond Account ■hall be uaed 10loiy for
the purpose or paying the principal or, premium if" any, and interest on the llond1 and any Parity
Lien Bonds. The Principal Sub-Account ■hall be uaed In pay the principal of and prtmium, if any,
on the Bonds and any Parity Lien Bonds, and the Interest Sub-Account ■hall be used t.o pay the
interest on the Bond ■ and any Parity Lien Bonds .
Upon delivery of the Bonds, the City shall credit t.o the Interest Sub-Account the
amount required by the Section hereof entitled "Initial Credita t.o Accounta". On or before the
twenty-fifth (25th) day of the last month or each calendar quarter, commencing in the calendar
quarter next succeeding the date of issuance of the Bonds, the City shall credit t.o the Interest Sub.
Account, from the Net Revenue and any interest income to l>e credited t.o the Interest Sub-Account
pursuant to the terms hereof, an amount equal to the Pro Ra:, Portion of the intere1t to come due on
the Bonds anti any Parity Lien Bonds on the next 1ucceeding interest payment date.
On or before the twenty-fifth (25th) day of the last month of each calendar qcarter,
commencing in the calendar quarter next succeeding the date of iuuance of the Bonds, the City
shall credit to the Principal Sub-Acco unt, from the Net Revenue and any interest income to be
credited to the Principal Sub-Account pursuant to the terms hereof, an amount equal to the Pro Reta
Portion of the principal coming due on the Bond s and on any Parity Lien Bonds on the next
succeeding principal payment date.
Moneys credited to the Bo·,d Account may be invested or deposite<! in securities or
obligations which are lawful investments and which are Permitted Investments. ·me investment
of mon,;-s credited to the Bond Account shall, however, be subject t.o the covenants and provisions of
the Section hereof entitled "Disposition and lnve,.tment of Proceeds; Tax Covenants". Except to
the extent otherwise required by such Section , u11 intt!rest income from the investment or
reinvestment of moneys credited to any sub-account of the Bond Account shall remain in and
become part of such sub-account.
~ Reoerve Account. Moneys in the Reserve Ac"'!unt ,hall be ll6ed, if
necessary, only to prevent a default in the payment of the principal of, premium if" any , or interest
on the Bonds and any Parity Lien Bonds , and the Reserve Account is hereby pledged to the payment
of the Bonds and any Parity Lien Bonds. In the event the amounts credited to the Bond Account are
insuffici•nt to pay the principal or, premium if any, or interest on the Bonds or any Parity Lien
Bonds when due, the City shall transfer fTom the Re serve Account to the appropriate sub-account or
aub•accounis of the Bond Acc c-.unl an amount which, when combin ed with moneys in the sub•
account or sub-accounts, will be sufficient to make such payments when due.
The City shall, upon deli very of the Bonds, credit to the Reserve Account the amount
required by the Section h ereof entitled "Initial Credits to Accounts". The Reserve Account shall be
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maintained in the amount al the RequjNd Reoerve until ouch time u the amount cndited thereto,
when combined with moneys in the Bond Accoant, will be ■ufficient to pay the principal of,
premium ii any, and intere■t on all of the Bond■ and any Parity Lien Bonda, at wbid , time ouch
mon,y ■ ma:, be applied for such purpose. If at any time the amount of the Reaerve Account i ■ le1&
than the Required Reserve, then the City lhall deporit to the Reoerve Account from the Net Revenue ,
amount■ 1ufficient to bling the amount credited to the Reoerve Account to the Required ReHTVe.
Such deposit• ahall be made u aoon aa poolible aft.er ouch uae, hut in aoc:v.liance with and ■ubject to
the limitations al the Section hereof entitled "Golf Course Revenue Fund". For pui-po111 of this
Section, inve ■tmenta credited to the Re1erve Account ,hall be valued on the be1i1 of their original
coil, and not on their current market value.
Moneys credited to the Reaerve Account may be inve ■ted or depoaited in aecurities
or obligations which are lawful inve ■tmenta and which are Permitted Investment ■. The
inve■tment of money ■ credited to the Re ■erve Account shall, however, be ■ubjeet to the covenant■
and provisions of the Section hereof entitled "Oispo1ition and Inve1tment or· Proceed,; Tax
Covenant.I". Except to the extent otherwise required by such Section, 10 lonr u the amount of the
Reserve Account i1 equal to the Required Reserve, all int.rest income from the inve ■tment or
reinvestment of moneys credited to the Reserve Account ■hall be credited to the Intereat Sub-
Account and/or the Principal Sul>-Account, u may be determined by the City; provided that if the
amount of the Reserve Account is leu than the Required Re ■erve, then ouch interest income ■hall
be crerlited to the Reserve Account The amount on deposit to the Reserve Account ahall never
exceed the amount of the Required Reserve .
~ Maintenance ol Katee and Cover.ise. The City hereby covenant.I
that it will establish. maintain. enforce, and collect rate ■, fees, tolls, and chargea for services
furniahed by or the use of the GolfCour■e to create Groos Revenue each Fiscal Year aufficient to pay
Operation and Maintenance Expenses an( to create Net Revenue in the following amoW1ts:
(a) during the period from the date of issuance of the Bond■ to and including the
Fiscal Year next 1ucceeding the calend■r year in which the Project is completed or substantially
completed (which completion date ■hall be reasonably determined by the City Manager), an
a,not 'l of Net Revenue in each Fiscal Yea r at laut equal to : (i) 135'!1, of the amount neceuary to
P•Y when due the principal of and interest on the Bonds and any Parity Lien Bonds coming due
d11t ing such Fiscal Year; and (ii) an amount neceaaary to make up any deficiencies in the
Rt~,rve Account ; and
(b) for o,,ch Fiocal Year thereafter to and including 2012, an &moWlt of Net Revenue
in each Fiscal Year at least equal to: (i) 15()<JI, of the amount necessary to pay when due the
principal of and interest or, the Bonds and any Parity Lien Bonda ooming due during such Fiscal
Year; and (ii) au amount ne,,eaaary to malte up any deficiencies in the Reserve Account; and
(c) for Fiscal Year 2013 , an amount of Net Revenue in eor.h Fiscal Year at least
equal to : (i) l()()'ll, o." the amount necessary to pay when due the principal of and interest on the
Bonds and any Parity Lien Bonds coming due during ,uch Fiscal Year; and (ii) an amount
necessary to make up any deficiencies in the Reserve Account.
(d ) In the event that the Gross Revenue at any time is not sufficient to make
such payments and accumulations, the City shall increase such rates, fees, tolls, and charges to an
extent which will ensure the payments ano accumulations required by this Ordinance.
-19 -
~ Additional Coveaaata ud Acree-ta. The City hereby furth,,r
irrevocably covenant& and ogreea with eech and every Owner that IO long a ■ 1111y of the &ands
remain outatandinir-
(a) The City will continue to operate and manap the Golf Coune in an
efficient and economical manner in ■ccordanee with all applicable laws, rule■, a:id regulations,
and keep and maintain aeparate account& of the receipt.a and e,cpensea thereof in auch manner that
the Grou Revenue and the Net Revenue may at all timea be readily and accurately determined.
(b) The City will not sell or alienate any of the property conatituting any port or
all of the Golf Course in any manner or to any e,ctent as might reduce the serurity provided for the
payment of the Bonds, but the City may oell any portion of auch property which shall have been
replaced by other similar property of at least equal value, or which ahall cease to be neceuary for
the efficient operation of the Golf Coune; provided however , that the pro<eeds of any ■uch sale of
property shall be included u port of the Grau Revenue.
(c) The City will promptly !'fflder bills for 1ervice1 furnished by or the use of
I.ht! Golf Couroe, shall use all legal means to usure prompt payment thereof, and to the extent
permitted by law, shall disamtinue service to any user wh o becomes delinquent in the payment of
such charges until the delinquency and all intere■t, costa, and expense■ incident thereto have been
paid in full.
(d) At least once a year in the lime a.nd manner provided by law, the City will
cau ■e an audit to be performed of the records ~ting II.I the revenues and expenditures of the Golf
Cour■e . Such audit may be made part of and included within the general audit of the City, and
made at the same time II the general audit. In addition, at least once a year in the time and
manner provided by law, the City will cauoe a budget to be prepared and adopted. Copies of the
budget and the audit will be filed and r eco rded in the places, time, and manner provided by law.
(e) The City will carry fire and e,tended coverage, workmen'• compensation ,
public liability, and such other forms of insurance on insurable Golf Courae p· ,perty u would
ordinarily be carried by bu1ine11es having similar proper ..iea of equal value , 1uch inaurance
being in such amounts 81 will protect the GolfCour■e and it., operation. In the event ol any lou or
damage to the Golf Course, or in the event port or all of the Golf Course is taken by the exercise of a
power of eminent domain, the insurance proceeds or the condemnation award ahall be used for
restoring, replacing, or repairing the property lost. damaged, or taken, and tht remainder thereof,
if any, shall be considered as Gross Revenue; provided however, that if the Council determines
that the operation of the Golf Course and the security for the Bonds will not be advenely affected
thereby, the Council may determine not to restore, replace, or repair the property loat, damaged, or
i.aken and all of the insurance proceeds or condemnation award shall be considered a• Gross
Revenue .
(f) Each City official or other person having custody of any funds derived from
the operation of the Golf Course, or responsible for the handling of such funds, shall be fully bonded
or insured again st theft and defalcation at all times, which bond or insurance shall be conditioned
upou the proper application of said funds.
(g) Tl,e Golf Course shall at all limes and in all ways conduct its affairs so as
to continue to qualify II an "enterpri•e" within the meaning of Article X, Section 20, Colorado
Constitution. Specifically, but not by way of limitation, the Golf Course is not autho:ued to , and
-20 -
,hall not, receive 1~ or more of ita annual revenue in granta from all Colorado atate and local
eovemmenta combined.
SWiim...U. Additional Bonda.
(al No additional bonds, notes, interim securities, or other obligation• ahall be
issued payable from the Net Revenue and having a lien thereon which ia auperior to the :;en of the
Bonds.
(b) The City may iasue Parity Lien Bonda if:
(i) the City i1 then and u of the date ofiuuance of the Parity Lien PAnda will
be, in substantial compliance with ell cf the ccvenanta cf this Ordinance;
(ii) the City i1 then and aa of the date cf iaauance of the Parity Uen Bonda will
be, current in the accumulation of all amounta required to be then accumule.<ed in the Bond
Account and the Reserve Account, as r equired by this Ordinance; and
(iii) the Net Revenue for the 12 month period imme,;\atsly !)re . r,dinc the date cf
issuauce of such Pari l..)' Lien Bonds is sufficient to pay an amount reprertntinr not le11 than 125%
of the Combined Average Annual Principal and Interest Requirt·.nents for the Bonda, any
outstanding Parity Lien Bonda, and the Parity Lien Bonds propoaed u, ho l-sued. For purposes cf
such test, the Net Revenue may be increased if there has been ad•,ptad a achedule of incraaaea in
rates, fees, toll1, and charges during or aince the preceding 12 mer.th period by adding to the actual
revenues for said preceding 12 month period, an estimated sun, equal to 1~ of the estimated
increaae in revenues which would have been realized during aaid preceding 12 month period, had
s uch increaae oc•n in effect during all of laid preceding 12 n .:nth period.
(c) A written certificate by the City Treasurw that the condition set forth in
paragraph (b Xi) above hes been met, and a written certificate by a Certified Public Accow,tant or
Comulting Engineer that the condition• aet forth in paragraphs (bXiil and (iii) above ere met,
shall concluaively determine the right of the City to authorize, iaaue, aell , and deliver Parity Lien
Bond~ m accordance herewith.
(d ) So long as no Event of Default shall have occurred and be continuing, nothing
herein shall prevent the City from issuing Subordinate Lien Bonds.
~ Defea1aace. When all principal, interelt, and premiums, if any ,
in connection with the Bonda have been duly paid, the pledge and lien and all obligation s of the
City hereunder shall thereby be discharged and the Bonda she ll no longer be demied to be
outstanding within the meaning of this Ordinance. There shall be deeme~ to be such due payment
when the City bas placed in eacrow and in trust with a commercial bank located within or without
the State ef Colorado, and exerciaing trust powers , an amount sufficier.t (including th, lr.nown
minimum yield from Federal Securitieo in which such amount may be in itially inve sted) to meet
all requirements of principal, interest, and premiums, if any, as the same become due '° their
final maturities or u;,m de1i~.1ated prior re.iemption dates. The Federal Securities shall become
du e at or prior to the respective times on whi,h the proceeds thereof shall be needed, in accordance
with a schedule established and agreed upon l etween the City and such bank al the tim e of the
creation of the e&C1'ow, or the Fed eral Securities shall be subject to redemption at the opti on of the
holders thereof to assure sur.h availability aa ao needed to meet such achedule. The sufficiency of
the eacr,w shall be determined by a Certified Public Ac countant.
-21 -
~ Event, of DetaulL Tho occurrence or uiat,nco of any one or more
of the following ovenll &hall be an Event of Default hereunder :
(a) payment of the principal of or redemption premium on any Bond ia not made by
the City when due;
(b) payment of the mtereat on any Bond ia not made by the City when due;
(c) the City defaults in the performance of any other of ita covenants in th!a
Ordinance, and such default continues for sixty (60) days after written notice specifying aucl.
default and requiring the same to be remedied i1 given to the City by the Ownera of twenty-five
percent (25%) in aggregate principal amount of the Bonda then outatanding; or
(d) the City files a petition under the federal bankruptcy laws or other applicable
bankruptcy law, aeeking to aciju&t the obligations repraNnted by the Bonda.
&.cl.ilm..2li. Remedie1 For Events of DefaulL Upon the occurrence and
continuance of an Event of Default, '. e Owner of any Bond, or a truatee therefor, may protect and
enforce the rights of any Owner , •, proper legal or equitable remedy deemed moat effectual
including mandamus, specific per! Jn·nance or any covenants, injunctive relief, or requiring the
Council to act as if it were th• trusL,e of an expreu trust, or any combination of 1uch remediea. All
proceedings shall be maintained for the equal benefit and protection of all Owners. Any receiver
appointed to protect the rights of Owners may take po ssession of and operate and maintain the Golf
Course in the same manner as the City itself might do, subject to con1titutional limitations
inherent in the sovereignty of the City. The failure of any Owner to proceed does not relieve the
City or any penon of any liability for failure to perform any duty hereunder. Th• foregoing right■
are in addition to any other right, and the exercise of any right by any Owner shall not be deemed a
waiver of any other right.
~ Permitted AmendDientl to Bond Ordinance. The City may,
without the consent of or notice to the Owners, adopt amendmente or supplemente to this Ordinance,
whic~. amendments or supplements shall thereafter form a part hereof; for any one or more of the
following purposes:
(a) to cure any ambiguity, to cure, conect, or supplement any formal defect or
om issio n or inconsistent provision contained in this Ordinance, to make any provision necessary
or desirable due to a change in law, to make any provisions with respect to matt.era arising under
this Ordinance, or to make any provisions for any other purpose, if 1uch provision■ are necessary
or desirable and do not materially adversely affect the interests of the Owners of the Bonds;
(b) to subject to this Ordinance or pledge to the payment of the Bonda additional
revent?es, properties, or coBateral; and
I:) to grant. or confer upon the Owners any additional rights, remedies, powers , or
authority tl· ., may be lawfo!ly granted to or conferred upon the Owners.
~ Amendment, Requirin1 Conaent of Ownen. Except for
amendatory or supplemental ordinances adopted pursuant to the Section hereof entitled "Permitted
Amendments to Bond Ori.inance", the Owners of not less than two -thirds (2/3) in aggregate
principal amount of the B1,nds then outstanding shall have the right, from time to time, to consent
-22 -
to and approve the adoption by the City of auch ordinances amendatory or 1upplement.J hereto u
aha!! be deemed necea1ary or deairable by the City for the purpoae of modifyin1, altering,
amending, addin, to, or re&einding , in any particular, any of th e tnma or provisions contained
in this Ordinance; provided however, that without the consent of the Ownera of all the Bonda
affected thereby, nothing herein contained ,hall permit, or be conatrued a ■ permittinC,
(a) a change in the term• of the maturity of any Bond, in the principal amount of
any Bond or the rate of interest thereon, or in th• term• of prior redemption of any Bond;
(b) an impairment of the right of the Owners to institute suit for the enforcement of
any payment of the principal of, premium if any, or interest on the Bon d s when due ;
(c) the creation of a lien upon the Net Revenue ranking prior to the lien of the
Bonda;
(d) a privilege or priority of any Bond or any pre,:nium or inter .. t payment over
any other Bond or premium or interest payment; or
(e ) a reduction in the percentage in principal amount of the Bonds the consent of
whose Ownen i1 required for any auch amendatory or supplemental ordinance.
If at any time the City shall desire to adopt an amendatory or supplemental ordinance
for any of the purposes of this Section , the City shall cause notice of the propoud adoption of auch
amendatory or supplemental ordinance to be given by mailing auch notice by certified or
registered first-class mail to each Owner of a Bond to the •ddreaa shown on the registration books
of the Bond Registrar, at leut thirty (30) daya prior to the proposed date of adoption of any such
amendatory or aupplem t .1tal ordinance. Such notice 1hall briefly set forth the nature of the
proposed amendatory or 111pplemental ordinance and 1hall atate that <cOJ)ies thereof are on file at
the offices of the City or 'IOme other auitAble location For inspection by all Ownen. If, within sixty
(60) days or such longer period u ahall be prescribed by the City following the giving of such
notice, the Ownen of not lesa than the required percentage in aggregate principal amount of the
Bonda then outstanding at the time of the execution of any 1uch amendatory or supplemental
ordinance shall have consented to and approved the executi, , thereof as herein provided, no
Owner of any Bond shall have any right to object to any of the terms and provisions contained
therein, or the operation thereof, or in any manner to question the propriety of the adoption and
effectiveness thereof, or to enjoin or restrain the City from adopting the same or from taking any
action punuant to the pl"'lvisions thereof.
~ Effect of Amendment. Upon the execution of any amendatory or
supplemental ordinance pursuant to thia Ordinance, this Ordinance shall be deemed to be
modified and amended in accordance therewith, and the Tespective rights, duties, and obligations
under this Ordinance of the City, the Bond Regist rar, the Paying Agent, and all Owners of Bonds
then outstanding 1hall thereafter be determined , exerciseJ, and enforced hereunder, subject in all
respect.s to such modification, and amendments.
~ H..omoval or Retlpation ol' Bond Refiatrar or Payinr Arent;
Successors. The Paying Age nt and Bond Registrar may be removed by the C;ty Bl any time, with
or ..,;thout cause. In the event of the removal or resignation of the Bond Registrar or Paying Agent,
the City shall appoint a succe110r as soon thereaft.er as may be practicable, and in such event, shall
give written notice thereof to each Owner by mailing to the addresses shown on the registration
books for the Bond s. An y successor Paying Agen t &hall:
-23 -
(a) be a truat company or banlr. in lood 1tanding located in or incorporated under
the law• of the State ol'Colorado;
{b)
(c)
(dl
($10,000,000).
be duly authorized to eien:i■e tru■t pow en;
be 1uhject to eumination by a federal or ■late authority; and
maintain a reported capital and surplua of not Jen than ten million dollara
~ Authorization to Execute Document&. The Mayor and City Clerk
shall, and they are hereby authorized and directed to talr.e all actions neceasary or appropriate to
effectuate the provi sion s of ti '• Ordinance, in cluding, but not li mi ted to, the execution of the
Paying Agent and Registrar Agreement in s ubstantially the form presented to this meeting of the
Council, and ouch certificate, and affidavits u may be rea ■onably required . The nocution by the
Mayor of the City of any document authorized herein ■hall be conclu■ive proof of the approval by the
City of the term s thereof.
&d.iwl.aJ.. Coat, and Expeuea. All coat ■ and upense ■ incurred in
connectfon with the issuance and payment of the Bonda ■hall be paid either from the proceeds of the
Bonds or from legally available moneys of the City, or from a combination thereof, and ouch
moneys are hereby appropriated for that purpose.
~ Ofr,cla} Statement. The Preliminary Official Statement ia hereby
authorized and approved. The Preliminary Official Statement is hereby deemed by the Council to
be final as of its date within the meaning of Rule 15c2-12(b)(l) of the U.S. Securities a.,d Exchange
Commission . The Council hereby authorizes the preparation and distribution of a fin al Official
Statement in conjunction with an offer of the Bonda to the public. The Official Statement ■hall
contain s uch correction s and additional or updated information 10 that it will not contain any
untrue statement of a material fact or omit to state a materiai fact neceuary in order to malr.e the
statem•nts made therein, in light of the circumstance• under which they were made, not
misleading. The Mayor of the City is hereby authori,ed to execute copies of the Preliminary
Official Statement and the Official Statement on behalf of the City.
~ Holidaya. If the dale for malr.inc any paym ent or performing any
action hereunder sha ll be a legal holiday or a day,on which the principal office of the Paying Agent
or Bond Registr ar is authorized or required by law to remain closed , such payment may be made or
a ct performed on the n ext su cce eding day which is not a lepl holiday or a da y on which th e
principal office of the Paying Agent or Bond Registrar is authorized or required by law to remain
closed.
~ Ratification and "---1 of Prior AdionL All actions heretofore
taken by the office rs of the City and the members of the Council, not inconsistent with the
provi sio ns of thi s Ordin ance, relating to the auth orizatio n, sale, issuance, and delivery of the
Bonds, are hereby ratified, approved, and confirmed.
~ Ordinance lrrepealable. After any of the Bond s have been iasued,
this Ordinance shall constitute a contract between the Owners and the City, and ■hall be and
remain irrepeaiable until the Bonds and the interest accruing thereon ■hall have been fully paid,
satisfied, and disch arged , as h erein provi ded .
-2 4 -
~ Repealer. All orden, bylaw■, ordinances, and re■olutiona of the
City , or part.a thereof, inconsistent or in conni.:t with tbis Ordinance, are hereby repealed to the
extent only of such inconsiatency or connicl
~<. Severabillty. If any ■ection, paragreph, clause, or provision of this
Ordinance shall ro.-any reason be held to be invalid or unenforceable, the invalidity or
unenforceability of auch section, paragraph, clause, or provi1ion shall not aff'flct any of the
remaining provisions rf this Ordinance, the intent being that the aame are severable.
~ Recordinr and Authentication. Upon adoption h ereof, this
Ordinance shall be recorded in a book kept for that purpose and ■hall be authenticated by the
signatures of the Mayor and the City Clerk .
~ Effective Date. Thia Ordinance shall tske effect thirty (30) days
after publication folloMng final passage.
Introduced , read in full, and passed on first reading on the 7th day of February, 19~4 .
Published as a Bill for an Ordinance on the 10th day ofFebru, . , 1994 .
?3EST:
~/C(4'-: v1 a~tf"
Patricia H. Crow, City Clerk
I, Pstricia H. Crow , City Clerk of the City of Englewood , Colorado , hereby certify that the above
and foregoing is!, true copy of the Ordinance passed on final reading and publi shed by title as
Ordinance No. +• Series of 1994 .
Patricia H. Crow
-25 -
Date
February 7, 1994
INmA TED BY
STAFF SOURCE
COUNCIL GOAL
COUNCIL COMMUNICATION
Agenda Item
llh
Subject Ordinance -City c,f
Englewood, Re venue
Bonds, Series 1994
Department of Financial Services
Frank Gryglewicz, Acting Director of Financial Services
This does not address a specific Council goal .
ISSUE/ ACTI':)N PROPOSED
Staff seeks Council support for an ordinance for the City of Englewood Golf Course
Revenue Bonds, Series 1994.
PREVIOUS COUNCIL ACTION
At the December 6, 1993 Council meeting, Council Bill 63 (Ordinance 57, passed on final
rea ding on December 20, 1993) designating the Golf Course as an enterprise to clarify the
City 's intent in light of Amendment 1 restrictions on the issuance of debt, was passed on
first reading. At the same meeting, Council authorized the purchase of land for the
ex pansion by approving Resolution 107. On December 20, 1993, Council approved
Resolution 110 directing City staff to proceed with a public bond sale. At the same
meeting, Cm.:ncil approved Resolution 109 appropriating funds to purchase land for the
planned expansion. At the JanUilr}' 17, 1994 Council meeting, Resoluti\lf\ 3 was approved
appropriating funds to purch~~e land for the expansion (due to timing 'problems the 1993
appropriation lapsed).
BACKGROUND
Section 105 of the City of Englewood 's Home Rule Charter allows the City to issue revenue
bonds subject to Statutes of t.'ie State of Colorado. This bond issue does not require a vote
of the citizens, nor is it subjec: to Amendment 1 restrictions . The proceeds of these bonds
w ill fund construction of a new nine-hole (par-three) course, clubhouse and existing-course
improvements, as well as a year-round training facility .
On December 20, 1993 Council approved Resolution No. 110 allowing City staff to take such a ·
action as necessary to conduct a public sale of the obligations. The City sold $4,045,000 of W
Golf Course Revenue Bonds at a true interest rate of 5.310956%. The public sale was held
on January 19, 1994 at the offices of Grimshaw and Harring, the City 's bond counsel.
George K. Baum, Merrill Lynch, and de Rozario submitted sealed bids. The best bid was
made by George K. Baum; their good faith deposit was accepted and deposited . The
closing on the bonds is planned for March 29, 1994.
The estimated use of funds are:
9-holes of par 3, three practice hol es, and driving range
Land acquisition
C lu bhouse improvements
Existing hold improvements
Pen meter bi:rming and screening
Fi lld..-t
Miscellaneous improvements, equipment, and professional fees
Cost of issuance
Total
PROS AND CONS OF or llONS REVIEWED
$1,050,000
1,075,000
550,000
200,000
300,000
300,000
460,000
j)O 000
$4,045,000
Pros : Sale of the o bligations will provide the City with funding for the Golf Course A
expansion with no added tax bwderi to Englewood citizens-debt sen~ce will be made W
solely from user fees . The E!X pa11s1on, according to projections, will increase future
revenues, allow m ore player-rounds of golf, pro,~de year-round training for players, make
the clubhouse more useful and pleasant, and generally enhance the image of i.he Ci ty in
general and the golf course in particular.
Cons: Future revenues and the ability to service the debt could be adversely affected by th e
following : cost overruns, less than projected use, increased exposure to environmental
clean-up costs, prolonged inclement weather, adverse economic conditions, and unforeseen
competition .
STAFF ANALYSIS
In order to meet scheduled funding and investor requirements, staff recommends passing
the ordinance.
FINANCIAL IMPACT
A debt service schedule is included to illustrate projected principal and interest pa yments.
Set forth in the following table arc the debt tcrvicc requirements for the Bonds. Sec
tbe cr,vcr page of this Official Statement for the actual interest rates for each maturity of the Bonds .
IWn Service Requirements oo the Bonds
Yar ..hi..wJaJ .....l.lUmll.. _ImL
1994 s 143,486 $ 143,486
;995 5,000 201 ,77 3 206,778
19 96 125,000 201,627 326,627
19 97 135,000 197,252 332,252
1998 140,000 192,190 332 ,190
1999 145,000 186,590 331 ,590
2000 155,000 180,500 335 ,500
200 1 160,000 113 , 1:;8 333,758
200 2 170,000 166 ,557 336,557
2003 180,000 158,738 338 ,738
1004 185 ,000 150 ,277 335,277
2005 195,000 141 ,305 336,305
2006 210 ,000 131 ,750 341,750
2007 220,000 121 ,250 341 ,250
2008 230,00G 109,920 339,920
2009 245 ,000 97,960 342,960
20 10 260,000 ~4,9 75 344 ,975
Wll 275 ,C00 70,675 345,675
20 12 295 ,000 55 ,550 350,550
20 131 _lli.QQQ ___J2.ill ___lli.ill
~ ~ !.~~
1The Reserve Accoua1 may be applied to the payment of the Bonds and Parit y Lien Boods, if any ,
when the amounts credite d ia the Bond Account and the Reserve Account are sufficient to pay all
of th e pri nc ipal o f and interest oa said bonds .
Source : Geo rge K. Baum & Compaa r
· 12 ·
OFFJCIAL BID EQRM
S4,04S,000
CITY OF ENGLE'.VOOD, COLORADO
GOLF cour~):S REVEN1JE BONDS, SERIES 1994
Frank Gryglewicz, Acting Dim:1,,, of Financial Services
:ity of Englewood
c/o Grimshaw & Harring, P.C.
600 17th Street .
Suite 2500 South Tower
Denver, Colorado 80202
For S4.04S,OOO legall y issuc<i Golf Course Revenue Bonds, Series 1994, of the City
of Englewood, Colorado, da~ as of March I~. 1994, and to come due and bear int.crest as
follows:
Principal Principal
Maturity Amount lnt~rest Rate Maturity Amo.int Interest Rate
1995 S 5,000 ~-J!Q\11\ 2005 S195,000 L\_.~\11\
1996 125,000 ~-.S:.D 2006 210,000 c~
1997 135,000 ~. ,,;-2007 220,000 '2 ·.1£
1998 140,000 if.ere 2008 230,000 S_-.J..2
1999 145,000 ~-..19 2009 245 ,000 S.·..i2
2000 155,000 ~-3S" 2010 260,000
W01 2011 ~',b
-
('" lb0 ,000 f:i-~ 275 ,000
2002 170,000 ':':,-..\Q..9 20 12 295 ,000 [.~ s.~o
2003 180,000 '-!·.:il 2013 715,000 {-.s:P
2004 185,000 <-::,..!i_<f
we will pay the amount of S 1. , °IC\ 2 , 2-L 2 -1 }';:!us accrued interest from · the date of the
Bonds to the date of the ir delivery.
It is u~".lerstood that Bonds maturing on or after O..'Q:mber I, 2008, which arc
coming due in sequential years, and which arc bid at the QlllC interest rate, will be made subject
to mandatory sinking fund redemption, and will malllrc on the last sequential year, all in
accordance with the Official Notice of Bond Sale .
Prior to our accepting d~livery of the Bonds, you agree 10· furnish a certified
transcript of all legal proceedings requisite to their iss11311ce and r'?livery in fonn satisfactory to
Grimshaw & Haning , P.C., Denver, Colorado, whose unqualified approving legal opinion in
the .:ustomary form shall accompany the Bonds at delivery . The Bonds arc to be delivered to A
us on ne about Marc h 29, 1994. W
The cost or printina the Ponds and up lo ISO copies or the final Official Statement,
the fees or the approving attorney~ .&Del other c:ust0mary closina cosu will be paid by the City
or Englewood. Such copies or the final Official Sw.emcnt shall be delivered 1o us within seven
(7) business days after the date or acco:ptance hcm>f and in sufficient time 1o aa:ompany any
confirmation that requests payment from any c:ustOmer as required by Ruic 15c2-12 of the U.S.
Securities and Exchan&e Commission.
We herewith hand you the amount of S50,000 in the fonn of a cashier's check, wire
transfer, or financial surety bond issued by an insurance company licensed in Colorado, made
payable 1o the City of Englewood, as evidence of our &ood faith in complyin1 with the tmns
and conditions or this proposal, which L, lo apply as part payment for the Bonds when the
legaiity or same has been approved, and lo be rorfeitcd as fully liquiclaled damases should -
fail or refuse to take up the Bonds as provided above. If by check or wire transfer, said dq,osit
is to be returned to us if this proposal is not accept:d or if the aforementioned attorneys should
decl ine to approve the legality or the issue. This offer is subject in all respects lo the Official
Notice of Bonu Sale .
Gross interest cost :
Discount:
True interest cost :
S 2 ls°O). 4(.3,7 '2..
s 5 2., 7 \?7 . l..'$
~ J l09SJ,,"
Respectfully submitted,
By: ______ _
Title: _______ _
ACCEPTED for and on behalf of the City of Englewood, Colorado. upon receipt
of the above-mentioned good faith deposit acknowledged this __ day of
--------· 1994.
Frank Gryslewicz
Actin1 Direc1or of Financial Services
RECEIVED returned good faith deposit in the amount of S50,000 this __ day
of ________ • 1994.
omcu,1, am !QBM
k,045,000
CITY OF ENGLEWOOD, COLORADO
OOLF COURSE REVENUE BONDS, S!RJ!S 1994
Frank Oryalcwi;z, A;iin& DileclDr of Financial Sctvica
City of En&lewood
c/o Grilllahaw & Hanin1, P.C.
600 17th StrNI
Sllila 2500 South Tower
Denver, Colorado 10202
For 54,045 ,000 lqaily issued GoirCoune kvalue Bonda, Series 1994, oftbe City
of Englewood, Colorado , daud u or March 15, 1994, and 10 come due and bear lnla'eli u
fallows :
Principal Prllldpal
Maturity AmOG.Dl Interest Rate Mltartt7 Amlunt ~--1995 S 5,000 "'l-~-2005 S195,000 ~-~-1996 m,ooo 'i-.3S:. l006 210,000 ~-.12 1997 135,000 ~['ai "111'1 220,000 ·~-~ 1998 140,000 "L:~ 2008 230,000 ~-~ 1999 145,000 2009 245,000 ~-~ 2000 155,000 2010 260,0ll ~.Jd!
-
"-·I 2001 160,000 2011 275,000 ~-la 2t>1'2i
2002 170,000 lt *(2012 295,000 ~-.tt) 2011 1
2003 180,000 2013 715,000 ~.l:! (~811\E' 2004 115,000 .9' ,~ Tf,'2/"I
IWt'l"1 011'-E
we will pay the amount ofS!,~~, ICO,CO
Bonds to the dalt o( their delivery.
, pha acc:rued inierat from the date of die I A.J ~ ,::
It Is undentood that Bonds maturina on or after Docember I, 2008, which are
ccmina due in 961Uential yan, and which are bid II the IIIIIC Interest rm, will be ll1lde lllbjel
ID mandatory ainking fund redemplion, and will fflllllN on the last 11C1ut11dal ye&r, all In
accordanee with the Official Notice or Bond Sale. ·
Prior to our acceptina ~very or the Bonds, you aaree to fumilh a certitled
ll'IIIJc:ript of all le&al proaicdln1s requisite to their illllllK'C and delivery in form llti1flc1ory 11>
Grimshaw & Harrin1, P.C., Denver, Cololldo, whole unqlllllftld approving ltpl opinion In
the customary rorT11 shall accompany the Bonds at delivery , The Bonda are to be deilvered IO A
us on or about Mar,~h 29 , 1994 . W
The cost of printin1 the Bonda and up to 150 copies of the final Official Stata111ent,
!he fees of Ille approVill1 11101'111)'1, lllcl olllc CIIIIOm&ry clolin1 com will be paid by the City
of En1l1wood. Such copies of tile final Official Sllll!IIIIU Iha!! be dclivcted to us within IIVtn
(7) bus ineJs d&y1 &fter tilt dale of act:apllllee htlwof and in sufficient timt 10 11ecomp111y any
confirmation 11w requests paymm1 from any CIIIIOmcr u required by Rull 15cl· 12 of the U.S.
SecuritieJ and Exchlna• Colllllllui011.
We herewith band you Ille amount of $,0,000 in the rorm of• t t If t ,~ ... .. .,._"**• financial lllffly bond iullCld by an ln111111a company liccn.S In Colol'l40, made
payable 10 lhe City of Enpwood, u evidence of our aood t'&ilh in complyin1 wllh the tenm
and conditions of 1h11 propoal, which Is ID apply u pan payment for 1111 Bondi whln the
legality of same hu been approved, and to be fa:felted u fully liquidalad damaps should wt
fail or refuse to like up the Bonds u provided aboYe. lfby check or wiN transfer, llld depollt
is 10 be returned 10 us if thia proposal is not accepted or If the aforementioned auomeys lhould
decline to appro ve the leplity of the issue. This offer 11 111bjeet In all zapectl to the C!ftclal
Notice of Bond Sa.l e.
Grou interell cost:
Discount:
True inlffeSt cost :
s :2.. NJ; wi:t, 2s-
s eo c;co.oo ,
f,'2(q24331
Rapeclfully submitted,
ll!lllIU. LntCll & Cb
By~ur-J
Tide· V1« Pru1den c . td UiiftitN iq;etbS
ACCEPTED for and on behalf or the City of Enalewood, Co!Ot'ldo, upon natp1
of the above-mentioned &ood faith deposit aclalowled1ed 1h11 __ day of
-------· 1994 .
Frank Gryslcwicz
Acuna DlrstDrofFinancial Servita
RECEIVED returned 1ood faith deposlt In Ille amount or SS0,000 thlJ _ day of ________ • 1994.
By: ______ _
ntle: ______ _
OffiCJALBmmRM
S4,045,000
CITY OF ENGLEWOOD, COLORADO
GOLF COURSE REVENUE BONDS, SERIES 11194
Frank GryJ!ewicz, Ac ting Director of Financial Selvices
City of Ell&lcwood
c/o Grimshaw & Hmin&, P.C .
600 171h Streer.
Suire 2500 South Tower
Denver, Colorado 80202
For S4,045,000 legally issued Golf Course Revenue Bonds, Series 1994, of lhe City
of Englew,,od, Colorado, dated as of March 15, 1994, and to come due and bear interest as
follows: · · · · ·
·Principal Principal
Maturity Amount Interest Rate Maturity ~al Interest Rate
1995 S 5,000 4_ . .$'091, 200S $195,000 ~-E.£91.i 1996 125,000 '{_.~ ::?006 210,000 G. -~ ~ 1997 135,000 'L-.far 2007 220,000 (p_.,E!?
1998 140,000 '-L ·.z.Q 2008 230,000 ~~$ 1999 145,000 '-1..,!JS 2009 245,000 ~-.!iE
2000 155,000 ~-~ 2010 260,000 (e. . .Y9 c; ~c
2001 . 160,000 ~-M" 2011 275,000 C...-~
2002 170,000 S::-Z> 2012 295,000 ~-46
2003 180,000 S...-~ 2013 715,000 fL .!iQ
2004 185,000 6_-~ l,·I
we will pay the amount of !· ;{98'-I , 3 3/. l./0 , plus accrued int.crest from lhe date of the
Bonds to lhe dale of their delivery .
II is understood that Bonds maturing on or after December l , 2008, which are
coming due in sequential years, and which are bid at lhe same interest n.tc, will be made subject
to mandatory sinking fund redemption, and will mature on the WI sequential year, all in
accordance with the Official Notice of Bond Sale.
' Prior to our accepting delivery of the Bonds, you air= to furnish a certified
transcript of all legal p~ings requisire to their i:.suance and delivery in form satis facto ry to
Grimshaw & Harring, P.C., Denver, Colorado, whose unqualified approvin1 lepl opinion in
the cus :omary .form ·shall accompany lhe Bonds at delivery . The Bonds are to be delivered to A
us on or about March 29, 1994 . W
The cost of printinc the BondJ and up 10 1$0 copies of the final Official Stac.ement .
the fees of the approvinc aaorneys, and other custOmary closing cosu will be paid by the City
of Enclewood . Such copies of the final Officw Stac.ement shall be delivered 10 us within seven
(7) business days afc.er the dac.e of acceptance hermf and in sufficient time 10 accompany any
confirmation that requesu payment from any custOmer as required by Rule 15c2-12 of the U.S.
Securities and Ex change Commission .
We herewith hand you the amount of SS0,000 in the form of a cashier's check, wire
transfer, or financial surety bond issued by an insurance company licensed in Colorado, made
payable to the City of Englewood, as evidence of our &ood faith in complying with the terms
and conditions of this proposal, which is to apply as part payment for the Bonds when the
legality of same has been approved, and to be forfeited as fully liquidac.ed dama&es should we
fail or refuse to take up the Bonds as provided above. If by check or wire tnnsfer, said deposit
is to be returned to us if this proposal is not acceptcd or if the aforementioned attorneys should
dec lin e to approve 1he legal it y of the issue. This offer is subject in all respecu to the Official
Notice of Bond Sal e.
Gross interest cost:
Discoum: s
True interest cost:
(po, c;~8-~o
~-?-8'1'.S-fi ,,
•·Respectfully subm itc.ed,
: · By: am~
Title : R~o--=.r:_
ACCEPTED for and on behalf of the C1ty of -Englewood, Colorado, upon receipt
of the above-mentioned good faith deposit acknowledged this day of
--------· 1994. · .. -:.
Frank Grygl ewicz
Acting DirectorofFinancw Services
RECEIVED returned Jood faith deposit in the amount of SS0,000 this __ day
of _________ , 1994 .
By:~
Title :_-'-(?n_n_c0o __ -.,r-___ _