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Home My WebLink About1997 Ordinance No. 064. { ORDINANCE NO. w SERIES OF 199fif7 BY AUTHORITY . COUNCIL BILL NO . 66 INTRODUCED BY COUNCIL MEMBERVORMITTAG 10 b x AN ORDINANCE SUBMITTING TO A VOTE OF THE REGISTERED ELECTORS OF THE CITY OF ENGLEWOOD AT THE NEXT SCHEDULED GENERAL MUNICIPAL ELECTION A BALLOT ISSUE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE CITY OF ENGLEWOOD FOR THE PURPOSE OF FINANCING THE CONSTRUCTION OF IMPROVEMENTS TO THE CITY'S WATER SYSTEM AND THE PURCHASE OF WATER PROCESSING EQUIPMENT INCLUDING ALL NECESSARY AND APPURTENANT FACILITIES. WHEREAS, this bill for an ordinance would submit to the registered voters of the City of Englewood a ballot question issue regarding the issuance of debt for the purpose of financing the construction of improvements to the City's water system and the purchase of water processing equipment including all necessary and appurtenant facilities; and WHEREAS , Article X, Section 20 of the Colorado Constitution requires that the City have voter approval prior to issuance of any multiple-fiscal year direct or indirect debt or other financial obligation whatsoever; and WHEREAS, City staff, City Council and the Englewood Water and Sewer Board agree that the water system improvements are needed to improve the City's water quality; and WHEREAS , the City's Financial Services Department, Utilities Department and the City's financial advisor have worked together to find the least expensive method to finance the water system improvements ; and WHEREAS , the least expensive method of financing these improvements is by issuing general obligation debt ; and WHEREAS, the issuance 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, COLORADO , AS FOLLOWS : Section 1. Pursuant to the provisions oflaw the City of Englewood hereby submits for a vote of the registered electors of the City of Englewood at the 1997 Municipal Election the following issue and the ballots for said election shall carry the following designation which shall be the submission clause : SHALL THE CITY OF ENGLEWOOD DEBT BE INCREASED $15,100 ,000 .00 WITH A REPAYMENT COST OF $25,300 ,000 AND SHALL THE CITY OF ENGLEWOOD 'S TAXES BE INCREASED $1 ,300 ,000 ANNUALLY FOR THE PAYMENT OF SUCH DEBT, ALL FOR THE PURPOSE OF FINANCING THE CONSTRUCTION OF IMPROVEMENTS TO THE CITY'S WATER SYSTEM AND THE PURCHASE OF WATER PROCESSING EQUIPMENT INCLUDING ALL NECESSARY AND APPURTENANT FACILITIES , BY THE ISSUANCE AND PAYMENT OF GENERAL OBLIGATION BONDS PAYABLE FROM SUCH CITY FEES, TAXES OR OTHER REVENUES AS THE CITY COUNCIL MAY DETERMINE, WHICH BONDS SHALL BE SUBJECT TO REDEMPTION, WITH OR WITHOUT PREMIUM, AND BE ISSUED AT SUCH MAXIMUM INTEREST RATE, DATED AND SOLD AT SUCH TIME OR TIMES AT SUCH PRICES (AT, ABOVE , OR BELOW PAR) AND IN SUCH MANNER AND CONTAINING SUCH TERMS NOT INCONSISTENT HEREWITH, AS THE CITY COUNCIL MAY DETERMINE, WHICH AUTHORIZATION SHALL INCLUDE AUTHORIZATION TO REFUND SUCH BONDS WITHOUT ADDITIONAL VOTER APPROVAL; AND IN CONNECTION THEREWITH IF DETERMINED BY THE CITY COUNCIL (I) SHALL THE CITY'S AD VALOREM PROPERTY TAXES BE INCREASED IN ANY YEAR IN AN AMOUNT SUFFICIENT TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON SUCH BONDS WHEN DUE, WITHOUT LIMITATION AS TO RATE OR AMOUNT OR ANY OTHER CONDITION, AND (II) SHALL THE REVENUES FROM SUCH TAXES AND ANY EARNINGS THEREON AND FROM THE INVESTMENT OF THE PROCEEDS OF SUCH BONDS CONSTITUTE A VOTER-APPROVED REVENUE CHANGE?" YES NO Section 2. Each elector voting at said election and desirous of voting shall indicate his choice by depressing the appropriate counter of the voting machine or by the appropriate marking upon paper ballots where used. Section 3. The proper officials of the City of Englewood shall give notice of said general municipal election, such notice shall be published in the manner and for the length of time required by law, and the ballots cast at such election shall be canvassed and the result ascertained, determined, and certified as required by law . Section 4 . If the ballot issue is approved by a majority of the registered electors of the City, the authority of the City Council to issue general obligation bonds of the City will be deemed and considered a continuing authority to issue and deliver such bonds at one time or from time to time in accordance with the terms and conditions of approval as set forth in the ballot issue voted upon, and neither the partial exercise of the authority so conferred, nor any lapse of time, will be considered as exhausting or limiting the full authority conferred by the electors . Section 5. If a majority of the registered electors of the City of Englewood vote no for said proposition the City Council will not be able to issue bonds and will not be able to enter into a long term contract without an appropriations clause . Section 6. If any section , paragraph, clause, or other portion of this ordinance is for any reason held to be invalid or unenforceable , the invalidity or unenforceability shall not affect any of the remaining portions of this ordinance. Introduced, read in full , and passed on first reading on the 7th day of July, 1997. j ~, } . ·~1 Published as a Bill for an Ordinance on the 10th day of July, 1997. Read by title and passed on final reading on the 21st day of July, 1997 . Published by title as Ordinance No.!£/, Series of 1997, on the 24th day of July, 1997. I, Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copf,.1 cf the Ordinance passed on final reading and published by title as Or dinance No. uq:., Series of 1997. ! J ~ -' COUNCIL COMMUNICATION Date Agenda Item Subject July 7, 1997 Proposed Bill For An Ordinance Regarding Submission To A Vote Of 10 a iv The Reg istered Electors OfThe City Of Englewood Regarding Proposed Debt Issuance For Improvements to the City's water system Initiated By Staff Source Department of Financial Services Frank Gryglewicz, Director Department of Utilit ies Stu Fonda , Director COUNCIL GOAL AND PREVIOUS COUNCIL ACTION This bill for an ordinance would submit to the registered voters of the City of Englewood a ballot question requesting issuance of $15, 100,000 of bonded debt to finance improvements to the City 's water system . 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. The Water and Sewer Board has discussed putting this ballot question with Council at the June 2, 1997 study session . RECOMMENDED ACTION Staff recommends Council 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 init iat ive 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 staff, Counc il, and the Water and Sewer Board all agree that this is a much needed project. The project will go forward regardless of t he outcome of the vote . Th is question may be pulled from the ballot if the City is successful in obtaining funds from the Colorado Water Resources and Power Development Authority . Another alternative funding mechan ism is available-revenue bonds . The full faith and cred it of the City is not pledged , but th is a more complex and expensive alternative . If this ballot issue is not successful , t he project w ill be funded in this manner. FINANCIAL IMPACT The est ima t ed cost of improvements and upgrades should not exceed $15, 100 ,000 . If bonding is approved , debt service will be made fr om the Water Enterprise Fund resources . Therefore, no direct impact on General Fund resources w ill be felt. If the City successfu ll y obtains funds from the Colorado Water Resources and Power Development Authority, this question will be pulled from the ballot , and revenues from the Water Enterprise Fund w i ll be used for debt service as well. LIST OF ATTACHMENTS Proposed bill for an ord inance /7'\. Printed c" ::::;ecyc !ed Pa per .~~