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Home My WebLink About1996 Ordinance No. 028• • ORDINANCE N0.2L SERIES OF 1996 BY AUTHORITY COUNCIL BllJ, NO. 32 INTRODUCED BY COUNCIL MEMBER HATHAWAY AN ORDINANCE SUBMI'ITING TO A Vu l'E OF THE REGISTERED ELECTORS OF THE CITY OF ENGLEWOOD AT THE NEXT MUNICIPAL ELECTION A BALLOT ISSUE AUTHORIZING THE ISSUANCE OF GENERAL OBUGATION BONDS OF THE CITY OF ENGLEWOOD FOR THE PURPOSE OF FINANCING THE CONSTRUCTION OF IMPROVEME~"I'!! TO THE CITY'S WATBR SYSTEM AND THE PURCHASE OF WATER PROCESSING EQUTI'MENT INCLUDING ALL NECESSARY AND APPURTENANT FACIUTIES. WHEREAS, this bill for an ordinance would 1ubmit to the regiatered voten of the City of Englewood a ballot question iuue regarding the iuuance of debt for the PU1J>OIO of financing the construction of improvementl to the City's water oyltem and the pun:hue of water processing equipment including all neceaaary and a ppurtenant facilities ; and WHEREAS, Article X, Section 20 of the Colorado Constitution require& that the City have vote r approval prior to issuance of any multiple-fillCai year direct or indirect debt or other financi al obligation whatsoever; and WHEREAS, City staff, City Council and the Englewood Water and S.,wer Board agree that the water system improvements ere n eeded to improve the City's water quality; and 10 b 1 WHEREAS, the City's Financial Services Department, Utilities Department and the Ci ty's ftn anciol advisor have worked together to ftnd the le ast expensive method to finan ce th e water sys'te.m improvement.a ; and WHEREAS , the least esponaive method of financing these improvementl ia by issuing gen eral obligation debt; and WHEREAS, the is suance of this debt is not included in the City's debt ceiling computation; NOW, THEREFORE , BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD , CO LORADO , AS FOLLOWS: SlldimLl -Pursuant to the provisi ons of law the City of Englewood hereby sub!<lits for a vote of the registered electors of the City ofEnglewood at the 199G Municipal Election the fo ll owing ballot question issue: SHALL THE CITY OF ENGLEWOOD DEBT BE IN CREASED $8,850,000.0C WITH A REPAYME N'f COST OF $15,315,350.00 AJ.',D SHALL THE CITY OF ENGLEWOOD 'S TAXES BE IN CREASED $807,000.00 ANNUALLY FOR THE PAYMENT OF SUCH DEBT , ALL FOR THE PURPOSE OF FINANCING THE CONSTRUCTION OF IMPR OVEMENTS TO THE CITY'S WATER SYSTEM AND THE PURCHASE OF WATER PRO CESSING EQUIPMENT IN CLUDING ALL NECESSARY AND APP URTE NANT FACILITI ES, BY THE ISS UANCE AND PAYMENT OF GENERAL OBLIGATION BONDS PAYABLE FROM SUCH CITY FUS, TAXBS OR tmlBR REVENUES AS THE CITY COUNCIL MAY DETERMINE , WHICH BONDS SHALL BE SUBJECT TO REDEMPTION, WITH OR WITHOUT PREMIUM , AND BE t~UED AT SUCH MAXIMUM INTEREST RATE, DATED AND SOLD AT SUCH TIME OR TIMES AT SUCH PRICES (AT, ABOVE, QR BELOW PAR) AND IN SUCH MANNE!, AND CONTAINING SUCH TERMS NOT INCONSISTENT HEREWI'.l'H, AS THE CITY COUNClL MAY DETERMINE, WHICH AUTHORIZATION SHALL INCLUDE AUTHORIZATION TO REFUND SUCH BONDS WITHOUT AIIDffiONAL VOTER APPROVAL; AND IN CONNECTION THEREWITH IF DETERlQNED BY THE CITY COUNCIL (I) SHALL THE CITY'S AD VALOREM PROPERTY Ti\XES BE tNCREASF.D IN ANY YEAR IN AN AMOUNT SUFFICIENT TO PAY THR PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON SUCH BONDS WHEN DUE, WITHOUT LrMITATlON AS TO RATE OR AMOUNT OR ANY OTHER CONDffiON, AND (II) SHALL THE REVENUES FROM SUCH TAXES AND ANY EARNINGS THEREON M ilD FROM THE INVESTMENT OF THE PROCEEDS OF SUCH BONDS CONSTITUTE A VOTER ·APPROVED REVENUE CHANGE?" YES __ NO __ S!:s:!ilm...2. The oflicen of the City, the City Manager and the City Clerk are authorized and directed to take oil action neceesary or appropriate to effectuate the provisions of this Ocdinance. The City Clerk shall be the designated election official with respect to the election and shill assume the responaibilitiea and perform the duties rela' ng thereto. The • City shall contract with th-. County Cler'.< to coaduct a coordinated election. ~-If the ballot iasue is approved by a majority of the registered electora of the City, the authority of the City Council to iuue general obligation bonda of the City will be deemed and considered a continuing authority to iaaue and deliver 1ucb bonda at one time or from time t o time in a ccordance with the terms and conditions of approvol as set forth ra the ballot issue voted upon, and neither the partial exerc ise of the authority so conferred , nor any lapse of time, will be con sid ered aa exhausting or limiting the full authority conferred by the electors . ~-lf a majority of the registered electors of the City of EngJe,.·'lOd vote no for said proposition the Ci ty Council shall finan ce the co nstruction of improvements to the City's wa ter system and water processing equipm ent including all appurtenant facilities by other methods. Introduced , read in full, and passed on lint reading on the lat day of July, 1996 . • Published as a Bill to r an Onllnonce on the 4th day of JuJ.v, 1996. Read by title and paued on final reading on the 15tb dt,y ,,f July, 1996. Published by title as Onllnance No~, Series of 1996, or, i..'., 18th day of July, 1996. _0~/JJJ!f:~ ... , I, Loucrishi a A. Ellis, City Clerk of the City of Engle.wood , Colorado, hereby certify that the above and foregoing is a true cop¥,Jf the Onllnance passed on final n,ading and • ~-~ .... "' ""' u -~-··= '""'"'"' ~ t{(if, !.oucrishia A. Ellis • • COUNCIL COMMUNICATION Date Agenda Item Subject July 1, 199'J Proposed 8111 For An Ordinance Regarding Subml11lon To A Vote Of The Registered Electors 10 a iii Of The C ity Of Englewood Regarding Proposed Debt lssutJnce For Improvements to the Citv's water svstem lniti~~ed By I Staff Source Oepanment of Financial Services Fran k Gryglewicz, Director Oeoartment of Utilities Stu Fonda , Director COUNCIL GOAL AND PREVIOUS COUNCIL ACTION This bill f.Jr an ortf1rnmce w->uld submit to the registered voters of ·:he City of Englewood a ballot question requesting issuance of $8 ,850,000 of bonded debt to finance improvements to the City's water sys:~.n . Although water rates are planned to be used for debt service, the full faith and credit of the City will be pledged for repayment of the general obligation debt. Th3 Water and Sewer Board has discussed this issue , as has Council at the June 10, 1996 study session. RECOMMENDED ACTION Staff recommends Co~ncil approve the attached bill for an ordinance submitting to a vote of the registered voters of the City of Englewood to issue debt. If the ballot initiative is successful it will result in substantial savings to water users . BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED The City of Englewood Charter requires a majority affirmative vote of the registered electors to issue general obligation debt {Article X , Part Ill, Section 104). The passage of Amendment 1 {TABOR) requires the use of tightly constructed language in the ballot question. City ctaff, Council , and the Water and Sewer Board all agree that this is a much needed project. The project will go forward regardless of the outcome of the vote-revenue bonds will be issued if this ballot initiative is not successful. An affirmative vote on this question and issuance of general ob !igation debt 111 ay reduce or even eliminate the need for the final eight percent water rate increase. An alternative funding mechanism is available--revenue bonds. The full faith and credit of the City is not pledg ed , but th is a more complex and expensive alternati ve . If this ba llot issue is not successful , the project will be funded in this manner. • FINANCIAL IMPACT Pnnled on Recycled Paper,.;.;.: